Grover Beach City Council
August 28, 2023

the City Council, City Advisory Bodies, staff, and community stakeholders on long-term strategic vision, plans, priorities, and projects to enhance the wellbeing, sustainability, and safety of the community and its residents.
• Direct the identification and development of policy options and opportunities, including recommendations for improving the overall administration, management systems, procedures, and performance measurement to improve City operations, effectiveness, and accountability.

Research development opportunities to address funding needs; prepare and administer the organizational budgets.
• Serve as acting City Manager upon the absence or request of the City Manager, including representing the City on interdepartmental projects or at public meetings. Serve as City Manager’s designee on assigned issues such as grievances and appeals. • May participate in cross-departmental projects and assist other departments with financial and/or budgetary needs and issues. Work with departments to develop strategies for the accomplishment of organizational goals in compliance with policies established by the City Council. • Manage citywide economic development activities in coordination with City Manager and City departments and business groups such as the South County Chambers of Commerce. • Write and participate in the preparation and presentation of comprehensive reports and recommendations on assigned projects.
• Lead citywide communication and public engagement efforts with City departments and outside consultants. Communicate official plans, policies, and procedures to staff and the public. Serve as a City liaison to outside groups and other local agencies on specific projects and needs. • Direct the City’s legislative advocacy program and positions including development of a legislative platform and position letters.
• Oversee development and implementation of the City Manager’s Office work program and budget, present reports on key outcomes. Develop and direct the implementation of goals, objectives, policies, procedures, and work standards for the department. • Plan and evaluate the performance of assigned staff including interviews, selection, training, evaluations, and discipline. Establish performance requirements and personal development targets; monitor performance and provide coaching for performance improvement and development.
• Other duties as assigned.

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 using a computer keyboard. Additionally, the position requires near and far vision in reading written reports and work-related documents. Hearing sufficient to provide telephone and personal service is required. The ability to lift, drag, and push files, City of Grover Beach
DEPUTY CITY MANAGER- CITY MANAGER’S OFFICE

paper, and documents weighing up to 25 pounds also is required. Some of these requirements may be accommodated for otherwise qualified individuals requiring and requesting such accommodations.

QUALIFICATIONS: (The following are minimum qualifications necessary for entry into the classification.)
Education and/or Experience:

In addition to the minimum qualifications noted below, the successful candidate must have an ability to manage multiple tasks in a fast-paced environment and experience working with local government officials (both elected and staff-level) and other business and community leaders.

Experience: Five years of increasingly responsible analytical and management experience preferably in a public agency involving analyzing, recommending, developing, or leading policies, procedures, and programs on a variety of issues.

Education: Bachelor’s degree from an accredited college or university with major coursework in public administration, public policy, political science, business administration, or a related field.

Master’s degree in a related field is desirable. One year of relevant professional-level work experience may be substituted for one year of required education (this will be evaluated on a case-by-case basis).

License/Certificate:

Possession of, or ability to obtain, a valid California driver’s license.

KNOWLEDGE/ABILITIES/SKILLS: (The following are a representative sample of the KAS’s necessary to perform essential duties of the position.) Knowledge of:

Modern methods and techniques of scheduling work assignments; standard office procedures, practices, and equipment; modern office practices, methods, and equipment, including a computer and applicable software; methods and techniques for record keeping and report preparation and writing; proficiency with English language, spelling, and grammar.

Ability to:

Maintain confidentiality; read, interpret, and record data accurately; 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 or make sound recommendations as appropriate; follow written and oral directions; observe safety principles and work in a safe manner; communicate clearly and concisely, both orally and in writing; establish and maintain effective working relationships.

Skill to:

Operate standard office equipment, including a computer and variety of word processing and software applications.

City of Grover Beach
DEPUTY CITY MANAGER- CITY MANAGER’S OFFICE

Est. 8/2023
Approved & Adopted:

Signature: ______________________________________ Date: ____________________ Human Resources Officer
Signature: ______________________________________ Date: ____________________ City Manager
FLSA: EXEMPT

CITY OF GROVER BEACH

HUMAN RESOURCES OFFICER
DEFINITION:

Under general direction, plans, manages and oversees all human resources activities within the city including classification and compensation, performance management, labor relations and contract negotiations, confidential personnel investigations, employee benefits, training and development, leave administration, worker’s compensation administration, workplace safety, recruitment and selection, and perform other job-related duties as required.

DISTINGUISHING CHARACTERISTICS:
• The Human Resources Officer is responsible to organize, manage, and supervise the full range of human resources functions for the city. The incumbent is required to be resourceful, and work independently with minimal supervision and instruction.

SUPERVISION RECEIVED/EXERCISED:

Receives direction from the Assistant City Manager within the City Management Department. May exercise direct and indirect supervision over assigned staff.

ESSENTIAL FUNCTIONS: (include but are not limited to the following):
• Organize and implement sound recruitment strategies to ensure equal opportunity employment; conduct the City’s recruitment and selection processes, arrange and schedule oral board and assessment center processes; develop eligibility lists; manage conditional offer and preemployment clearances.
• Interpret and consult with Department Directors and staff on complex Federal, State and City policies and procedures. Confer with and advise City staff on a variety of sensitive personnel issues including performance evaluations, Performance Improvement Plans, disciplinary matters, grievances, and other employee concerns. Review, consult and recommend changes and additions to the City's personnel manual and regulations and to employee policies. • Coordinate the examination and handling of workers' compensation and unemployment claims; oversee and facilitate the handling and processing of incidents, serve as liaison for workers compensation and liability claims and incidents, coordinate return to work programs, and reside over the City’s Safety Committee programs and activities.
• Review, plan, implement and supervise the administration and maintenance of Human Resources software systems, applicant tracking system, personnel and confidential personnel files, and other human resources programs and systems.
• Administer employee benefit programs; conduct new-hire on-boarding and annual benefits open enrollment program, manage employee leaves, process terminations, complete exit interviews with employees who are leaving City service.

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 class. 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.

Exhibit B
City of Grover Beach

MANAGEMENT ANALYST-HUMAN RESOURCES

• Provide professional support in labor relations, including collective bargaining; research and compile compensation survey data; draft language for MOU proposals, finalize MOU and other labor agreements; assist Administration in labor/management committees; and interpret labor agreements/resolutions.
• Direct the administration of the City’s classification and compensation plan, establish, and maintain class specifications and salary ranges for positions, initiate and manage compensation and benefits surveys, analyze, evaluate, and make recommendations on proposed job reclassifications. • Provide insights and guidance on strategic human resources needs for the organization based on industry and workforce trends and conduct periodic employee surveys to gauge employee perceptions and sentiments.
• Prepare a variety of reports including state and federal equal employment opportunity reports, workers' compensation, OSHA, as well as required City Council staff reports, and other special reports and written recommendations as required.
• Consult with Department Directors to develop training programs; participate in the development of a training master plan. Maintain a comprehensive training schedule; monitor and schedule mandatedtraining opportunities for all City employees. Administer the cities DMV Pull Program and the D.O.T. testing program.
• Participate in developing the program budget, including annually setting program goals and objectives; track expenditures; monitor fiscal transactions for risk management activities. • Establish and maintain positive working relationships with representatives of other city, county and state agencies and associations, City management and staff. • Perform other duties as required.

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 using a computer keyboard. Additionally, the position requires near and far vision in reading written reports and work-related documents. Hearing sufficient to provide telephone and personal service is required. The ability to lift, drag, and push files, paper, and documents weighing up to 25 pounds also is required. Some of these requirements may be accommodated for otherwise qualified individuals requiring and requesting such accommodations.

QUALIFICATIONS: (The following are minimum qualifications necessary for entry into the classification.)
Education and/or Experience:

Any combination of education and experience that provides the knowledge, skills, and abilities necessary for a Human Resources Officer. Typically, a Human Resources Officer would possess the equivalent of five years of increasingly responsible professional technical and analytical experience in the areas of public sector human resources management.

Equivalent of a bachelor’s degree from an accredited college or university with major course work in Organizational development, Human Resources Management, Public Administration, City of Grover Beach

MANAGEMENT ANALYST-HUMAN RESOURCES

Business Administration, 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 the ability to obtain, a valid Class C California driver’s license prior to appointment.

KNOWLEDGE/ABILITIES/SKILLS: (The following are a representative sample of the KAS’s necessary to perform essential duties of the position.) Knowledge of:

Modern principles and practices of human resources administration at an advanced level, related to recruitment, selection, Workers’ Compensation, safety, training, classification and compensation, and insurance/benefit administration and general administration; methods and techniques of supervision, training, and motivation; basic principles of mathematics; applicable federal, state and local laws, codes, and regulations; methods and techniques of scheduling work assignments; standard office procedures, practices, and equipment; modern office practices, methods and 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:

Maintain confidentiality; gather, analyze and compile data; organize, prioritize, and follow up on work assignments related to recruitment, selection, training, Workers’ Compensation, safety, classification and compensation, and insurance/benefit administration; plan, organize, train, evaluate, and direct work of assigned staff; perform mathematical calculations quickly and accurately; interpret, explain, and apply applicable laws, codes, and regulations; read, interpret, and record data accurately; 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 or make sound recommendations as appropriate; follow written and oral directions; observe safety principles and work in a safe manner; communicate clearly and concisely, both orally and in writing; establish and maintain effective working relationships.

Skill to:

Operate standard office equipment, including a computer and variety of word processing and software applications.

Rev 08/2023
Approved & Adopted:

Signature: ______________________________________ Date: ____________________ Human Resources Officer
Signature: ______________________________________ Date: ____________________ City Manager
Exhibit C
City of Grover Beach

STAFFING DETAIL & SALARY SCHEDULE
Assistant City Manager and Human Resources Officer
Compensation Plan - Monthly Salary
Ranges
Proposed Salary Schedule
Section 1 - Executive Management MIN MAX
Assistant City Manager * 12,841 13,483 14,157 14,865 15,608 16,389 Section 2 - Management & Confidential A B C D E F
Human Resources Manager * 8,096 8,501 8,926 9,372 9,841 10,333 Agenda Item No. 8

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 28, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Karla Mattocks, Management Analyst/Human Resources SUBJECT: Resolution to Delegate Authority for Determining Industrial Disability to the City Manager Pursuant to Government Code Sections 21156 and 21173

RECOMMENDATION
Adopt the Resolution to delegate authority for determining Industrial Disability to the City Manager pursuant to Government Code Sections 21156 and 21173.

BACKGROUND
The California Public Employees’ Retirement System (CalPERS) allows Industrial Disability Retirement for Local Safety Members to be determined by either the governing body or an official delegate appointed by the governing body. Historically, staff has presented Resolutions for approval to the City Council for Industrial Disability Retirement of a Local Safety Member, which included limited confidential medical and personnel information.

Government Code section 21156(a)(2) provides that the board or governing body of the contracting agency shall make a determination on a member’s disability retirement on the basis of competent medical opinion and shall not use disability retirement as a substitute for the disciplinary process. Government Code section 21156(b)(1) provides that the governing body of a contracting agency upon receipt of request of the board pursuant to Government Code section 21154 shall certify to the board its determination under this section that the member is or is not incapacitated. Local Safety agencies will make a medical determination for both disability retirement and industrial disability retirement.

Government Code Section 21173 allows the governing body of a contracting agency to delegate any authority or duty conferred or imposed to a subordinate officer subject to conditions it may impose. Delegating the authority to determine an Industrial Disability Retirement to the City Manager is consistent with other cities and recommended by Liebert Cassidy Whitmore, the City’s outside Human Resources legal counsel. Staff will continue to follow all CalPERS application and determination requirements. It is appropriate that the medical and personnel information included in an Industrial Disability Retirement application be kept confidential and delegating the decisionmaking authority to the City Manager would eliminate the need to bring forth these applications at a public meeting.

FISCAL IMPACT
There is no fiscal impact to this action.

Staff Report: Delegate Authority for Determining Industrial Disability Page 2 August 28, 2023

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt the Resolution to Delegate Authority for Determining Industrial Disability to The City Manager Pursuant to Government Code Sections 21156 And 21173; or

2. Provide alternate directions to staff.

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

Attachments

1. Resolution to Delegate Authority for Determining Industrial Disability to The City Manager Pursuant to Government Code Sections 21156 And 21173.

Attachment 1
RESOLUTION NO. 23-

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

CALIFORNIA, TO ADOPT THE RESOLUTION DELEGATING AUTHORITY FOR

DETERMINING INDUSTRIAL DISABILITY TO THE CITY MANAGER

PURSUANT TO GOVERNMENT CODE
WHEREAS, the City of Grover Beach (herein referred to as Agency) is a contracting agency of the California Public Employees’ Retirement System; WHEREAS, the Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency in employment in which he/she is classified as a local safety member is disabled for purposes of the Public Employees’ Retirement Law and such disability is "industrial" within the meaning of such Law; WHEREAS, the City of Grover Beach has determined upon legal advice that it may delegate authority under Government Code section 21173 to make such determinations to the incumbent of the office/position of City Manager;

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

That the City of Grover Beach delegate and it does hereby delegate to the incumbent of the office/position of City Manager, authority to make application on behalf of the Agency pursuant to Government Code section 21152 (c) for disability retirement of all employees and to initiate requests for reinstatement of such employees who are retired for disability; BE IT FURTHER RESOLVED that the City of Grover Beach delegate and it does hereby delegate to the incumbent of the office/position of City Manager authority to make determinations of disability on behalf of the Agency under Government Code section 21156 and whether such disability is industrial and to certify such determinations and all other necessary information to the California Public Employees’ Retirement System.

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 28th day of August, 2023.

KAREN BRIGHT, MAYOR
Attest:

WENDI B. SIMS, CITY CLERK
**DRAFT**
Agenda Item No. 9

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 28, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Matthew Bronson, City Manager
SUBJECT: Selection of Voting Delegate and Alternate(s) for the 2023 League of California Cities Annual Conference

RECOMMENDATION
Select Mayor Bright to serve as delegate and Mayor Pro Tem Robert or Council Member Rushing to serve as alternate(s) for the upcoming annual business meeting to be held at the League of California Cities Annual Conference.

BACKGROUND
In order to participate in the business meeting at the League of California Cities (Cal Cities) Annual Conference, every represented city must have its City Council designate a voting representative who will be registered at the conference and attend the annual business meeting (General Assembly). Each member city may also appoint up to two alternates, one of whom may vote in the event the designated voting delegate is unable to serve in that capacity. A voting card will be issued to the designated city official at the conference.

Conference attendance provides an exceptional opportunity for elected officials to hear from leading experts, expand knowledge of municipal government, and view innovative resources that could benefit the delivery of services, enhance resources, and strengthen the City.

The Annual Conference will be held in Sacramento from Wednesday, September 20 through Friday, September 22 with the General Assembly held on September 22. This year, members of the Council scheduled to attend the conference are Mayor Karen Bright, Mayor Pro Tem Robert Robert and Council Members Daniel Rushing, Clint Weirick and Zach Zimmerman. Staff would propose for this year’s conference that Mayor Bright serve as delegate and either Mayor Pro Robert or Council Member Rushing serve as alternative depending on availability.

The deadline to submit policy resolutions to the Annual Conference was July 22, 2023. No policy resolutions were received by the deadline for consideration. Petitioned resolutions may still be introduced during the conference, and if qualified, considered by the General Assembly.

FISCAL IMPACT
There is no fiscal impact from this action.

Staff Report: Selection of Voting Delegate and Alternate(s) to the Annual LCC Conference Page 2 August 28, 2023

ALTERNATIVES
The City Council has the following alternatives to consider:

1. Select one delegate and alternate(s); or

2. Do not select any delegates; however, the City would not have voting rights at the annual business meeting; or

3. Provide alternative direction to staff

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

Attachments

1. Voting Designation Information
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, June 21, 2023
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Sept. 20-22, 2023, Sacramento SAFE Credit Union Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Sept. 22, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Please complete the attached voting delegate form and email it to Cal Cities office no later than Monday, August 28.

New this year, we will host a pre-conference information session for voting delegates to explain their role. Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide preconference communications with voting delegates.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council.

Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Council Action Advised by August 28, 2023
Attachment 1
Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.

For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the SAFE Credit Union Convention Center in Sacramento, will be open at the following times:

Wednesday, Sept. 20, 8:00 a.m.- 6:00 p.m. and Thursday, Sept. 21, 7:30 a.m.- 4:00 p.m. On Friday, Sept. 22, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for completing the voting delegate and alternate form and returning it to Cal Cities office by Monday, Aug. 28. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• General Assembly Voting Guidelines
• Voting Delegate/Alternate Form
• Information Sheet: Cal Cities Resolutions and the General Assembly 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

CITY: ________________________________________
2023 ANNUAL CONFERENCE

VOTING DELEGATE/ALTERNATE FORM
Please complete this form and return it to Cal Cities office by Monday, August 28, 2023.

Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates.

To vote at the General Assembly, voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council.

Please note: Voting delegates and alternates will be seated in a separate area at the General Assembly. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the voting delegate desk.

1. VOTING DELEGATE
Name:

Title:

2. VOTING DELEGATE - ALTERNATE
Name:

Title:

Email: _______________________________
Email: ______________________________

3. VOTING DELEGATE - ALTERNATE
Name:

Title:

Email: _____________________________

ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s).

Name: ____________________________________ Email: _________________________________ Mayor or City Clerk: ________________________ Date: __________ Phone: ________________ (circle one) (signature) Please complete and email this form to [email protected] by Monday, August 28, 2023.

Sixty days before the
Annual Conference and
Expo, Cal Cities members
may submit policy
proposals on issues of
importance to cities. The
resolution must have the concurrence
of at least five additional member cities
or individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions
Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure that we are representing California cities with one voice. These policies directly guide Cal Cities advocacy to promote local decision-making, and lobby against statewide policy that erodes local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how Resolutions and the General Assembly works.

The petitioned resolution
is an alternate method
to introduce policy
proposals during the
annual conference. The
petition must be signed by
voting delegates from 10% of member
cities, and submitted to the Cal Cities
President at least 24 hours before the
beginning of the General Assembly.

Petitioned Resolutions
The Cal Cities President
assigns general resolutions
to policy committees where
members review, debate,
and recommend positions for
each policy proposal. Recommendations are
forwarded to the Resolutions Committee.

Who’s who
The Resolutions
Committee includes
representatives from
each Cal Cities diversity
caucus, regional
division, municipal
department, policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly
is a meeting of the
collective body of
all voting delegates —
one from every
member city.

Seven Policy
Committees meet
throughout the year to
review and recommend
positions to take on
bills and regulatory
proposals. Policy
committees include
members from each Cal
Cities diversity caucus,
regional division,
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions Committee.

Potential Cal Cities bylaws amendments are also
considered at this meeting.

Cal Cities policy
development is a
member-informed
process, grounded
in the voices and
experiences of city
officials throughout
the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions Committee
considers all resolutions.

General Resolutions approved1
by either a policy committee
or the Resolutions Committee
are next considered by the General
Assembly. General resolutions not approved,
or referred for further study by both a policy
committee and the Resolutions Committee
do not go the General Assembly. All
Petitioned Resolutions are considered by the
General Assembly, unless disqualified.2
• Voting delegates will receive increased communications to prepare them for their role during the General Assembly.
• The General Assembly will take place earlier to allow more time for debate and discussion.
• Improvements to the General Assembly process will make it easier for voting delegates to discuss and debate resolutions.

What’s new in 2023?
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

Agenda Item No. 10

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 28, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Gabriel Munoz-Morris, Acting Public Works Director/City Engineer SUBJECT: Sewer Upgrades Project (CIP 5002) Rejection of All Bids

RECOMMENDATION
Reject all bids for the Sewer Upgrades Project (CIP 5002) and provide direction to staff to modify the project and re-advertise for bids as soon as possible.

BACKGROUND
The City’s Sewer Master Plan was last updated in 2019 and identified deficiencies in the City’s existing sewer collection system. Some of the deficiencies identified require upgrades to meet the existing and future demands on the City’s sewer system. Staff prepared a multi-project plan to address the most critical deficiencies for existing and future flows which started with the upgrade of the segments in CIP 5002. Those segments include:
• Manhattan Avenue (from the west end to South 4th Street) • South 4th Street (from Manhattan Avenue to West Grand Avenue) • Rockaway Avenue (from South 4th Street to South 9th Street) • North 8th Street (from West Grand Avenue to Ramona Avenue) • Ramona Avenue (from North 8th Street to North 9th Street) • North 9th Street (from Ramona Avenue to Atlantic City Avenue) The project includes upsizing existing 8”, 10”, and 12” vitrified clay sewer mains to new 10”, 12”, and 18” HDPE sewer mains through a combination of pipe bursting and open-trench construction.

These upgrades provide the necessary capacity in the City’s sewer collection system to eliminate existing deficiencies and meet future demands.

In a concurrent effort, staff also identified a potential sewer system extension that could be included in this project as a way of further extending available sewer lines to properties remaining on septic with no option to connect to City sewer. This extension includes new 8” PVC sewer mains on Griffin Street (from Calvin Court to Highland Way) and Highland Way (from Griffin Street to approximately 949 Highland Way). This extension project would provide connection availability to seven properties that do not currently have City sewer available. Staff had the design of this sewer extension included in the project scope to reduce costs of sewer extension by having a contractor performing this work in conjunction with the larger sewer upgrade project.

Staff solicited bids for the project from the list of pre-qualified contractors on June 22, 2023. Bids were due on July 27, 2023. The estimated cost for construction for this project was $2.9 million.

The low bid received from Specialty Construction Inc. was $4.1 million. When budgeting for a construction contingency of 10% and construction management services, the estimated total project cost is $4.8 million which is significantly beyond the budget for this project.

Staff Report: Reject All Bids – Sewer Upgrades Project (CIP 5002) Page 2 August 28, 2023
Staff performed a bid evaluation and met with contractors and design professionals to better understand the reasoning for the increased costs of construction. The cost of labor, materials, and trucking have greatly increased in the last 12 to 24 months which has impacted prices across the construction industry. Staff reached out to other agencies with recent bid openings and confirmed these increases are industry-wide and do not show signs of reversing. Staff believes it is possible to move forward with a modified version of this project by removing the sewer extension work on Griffin Street and Highland Way and the sewer upgrade work on Rockaway Avenue from South 4th Street to South 9th Street. The sewer extension work is not a critical deficiency at this time and can be pursued via a future project. The upgrade work on Rockaway Avenue, while important, can also be removed from this project at this time.

However, the work on North 9th Street must be completed now ahead of the Measure K-14 paving project that is currently in design, which includes North 9th Street, to avoid delays in that project’s schedule. The work on Manhattan Avenue and South 4th Street is the most critical for the City’s entire sewer system as those lines carry sewer flows for the majority of the city and are the connection point to the South San Luis Obispo County Sanitation District sewer trunk main which leads to the District’s wastewater treatment plan in Oceano. The work on Rockaway Avenue can be delayed to the next phase of the City’s sewer upgrade project without any immediate impact to the City’s system as long as the segments on Manhattan Avenue and South 4th Street are upgraded now. The removal of the sewer extension work on Griffin Street and Highland Way and sewer upgrade work on Rockaway Avenue will reduce the project construction cost by approximately $1-1.2 million which will allow the City to move forward with the project.

FISCAL IMPACT
There is no fiscal impact of rejecting all bids at this time. After the project is modified and readvertised, and new bids are received for the modified project, staff will request authorization to award the project to the lowest bidder at that time. The City is currently working with a utility rate consultant to conduct a rate study for the Wastewater Fund to establish utility rates sufficient to cover costs including capital improvement projects and staff will present this study to the Council on September 5. The estimated life of this project is 50 years and the reduced scope of the project is estimated to cost $3.6 million, including construction cost, construction contingency, and construction management. Due to the longer estimated life and the significant cost of the project, the rate study includes funding to finance the total cost of the project, spreading the cost over time and minimizing the burden on the current rate payers.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Reject all bids, direct staff to modify the project, and re-advertise the project as soon as possible; or

2. Provide staff with alternative direction

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

Attachments

1. Bid results
Bid Opening Date: Thursday, July 27, 2023 @ 2:00 p.m.

Bids for: Sewer System Upgrades Project_CIP 5002
Sealed Bids Received from:

No. Company Name & Address Total Base Bid
(Page 7)
1 Raminha Construction, Inc.
11505 Halcon Road
Atascadero, CA 93422
$6,671,930.00
2 J.R. Filanc Construction Co., Inc.
740 North Andreasen Drive
Escondido, CA 92029
$4,467,249.00
3 Specialty Construction, Inc.
645 Clarion Court
San Luis Obispo, CA 93401
$4,106,446.00
4 5
6 7
*Bid results are subject to verification by engineering.

City of Grover Beach Bid Opening Results
7/27/2023 1 of 1
Attachment 1
Agenda Item No. 11
And i

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 28, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director SUBJECT: Five Cities Fire Authority Fire Prevention Agreement and Delegation of Authority to the City of Grover Beach

RECOMMENDATION
Approve a Fire Prevention Agreement to delegate fire prevention service authority to the City of Grover Beach and authorize the Mayor to execute the agreement on behalf of the City.

BACKGROUND
In 2004, the cities of Arroyo Grande and Grover Beach collaboratively entered into an agreement for fire prevention services. This agreement was expanded over the next several years to include equipment sharing, consolidation of the reserve firefighter program, and dispatch of emergency services without consideration of a community boundary. In 2009, the Oceano Community Services District (OCSD) joined the other communities, and the Five Cities Fire Authority (FCFA) was officially formed on June 7, 2010, to address the need for increased service levels to citizens and visitors, to ensure consistent and professional training standards, and to increase operational efficiencies.

Since FCFA was established, fire prevention plan review and inspection duties remained inconsistent between the member communities. Based upon the findings of the Baker Tilly fire services study (Attachment 1), the cities of Arroyo Grande and Grover Beach agreed to assume a significant portion of the fire prevention workload to improve consistency in fire plan review and as a transitional strategy towards the eventual creation of a FCFA Fire Prevention Bureau. This need also stemmed from the withdrawal of the OCSD from FCFA on July 1, 2023, given the failure of Oceano Measure A-22, which would have generated additional funding for fire and emergency medical services in Oceano. As such, beginning with the FY 2023-24 budget, Arroyo Grande and Grover Beach have increased their municipal budgets to provide fire prevention services to its residents and businesses, using contractual services.

Senate Bill (SB) 1205
The California Fire Code places the responsibility for fire prevention on the Fire Chief, or their designee. Several years ago, the State Fire Marshall’s Office stopped inspecting school sites, and pushed the responsibility to local government. Additionally, the Ghost Ship Fire in Oakland (2016) spurred the passage of Senate Bill (SB) 1205. SB 1205 requires annual inspections of specified structures (occupancy types), along with an annual resolution identifying the percentage of inspections completed by occupancy type including:

Staff Report: Fire Prevention Agreement and Delegation of Authority to City Page 2 August 28, 2023
• Public and Private schools
• Multi-family dwellings
• Hotels/Motels
• Certain Residential Care Facilities
The FCFA has been unable to consistently complete these inspections due to a lack of staff and funding and has prioritized its limited resources instead on multi-family dwellings and hotels/motels.

Delegation of Fire Prevention Services
In collaboration with FCFA, the cities of Arroyo Grande and Grover Beach have agreed to assume a significant portion of the fire prevention workload to improve consistency of fire plan review in the member communities. On August 21, 2023, the FCFA Board approved the Fire Chief’s delegation of fire authority as part of approval of a Fire Prevention Agreement to the cities of Arroyo Grande and Grover Beach. As of July 1, 2023, the Grover Beach Community Development Department has assumed responsibility for the following mutually agreed upon services:
• Residential Care Facilities (Group R – SB 1205)
• Public & Private Schools (Group E – SB 1205)
• Pre-school / Child Care Facilities
• Business Inspections
• Hospital/Clinic Inspections
• Plan/Sprinkler Review
• Related Field Inspections
FCFA will retain responsibility for the remainder of fire prevention services within the City, as outlined in Attachment 2 – Exhibit “A”, Scope of Services.

Contractual Fire Prevention Services
The City acknowledges the responsibility to protect the health and safety of its residents, businesses, and visitors and recognizes the need for efficient and effective fire prevention services.

Given the delegation of certain fire prevention services, the City has demonstrated its capability and readiness to assume responsibility for these services.

As of July 1, 2023, fire services will be contracted to the City’s building consultant, CSG Consultants (CSG). CSG employs a team of professional certified fire plan reviewers, fire inspectors, fire protection engineers, and fire marshal personnel, capable to support front counter procedures, review plans, and perform inspection of structures for fire code compliance. The Community Development Department will ensure the fire prevention activities are completed in compliance with SB 1205.

FISCAL IMPACT
There is no fiscal impact to the General Fund since the City’s contracted services with CSG will be offset by the related fees charged by the City for the fire prevention services. The City will amend its Master Fee Schedule to include these fees consistent with consultant expenditure costs for the listed fire prevention services.

Staff Report: Fire Prevention Agreement and Delegation of Authority to City Page 3 August 28, 2023

ALTERNATIVES
The City Council has the following alternatives to consider:

1. Approve the Fire Prevention Agreement to delegate fire prevention service authority to the City of Grover Beach and authorize the Mayor to execute the agreement on behalf of the City; or

2. Provide alternative direction to staff.

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

Attachments

1. City of Grover Beach and Five Cities Fire Prevention Agreement Exhibit “A” – Scope of Services

2. Baker Tilly Fire Services Report
1 AGREEMENT FOR CONTRACT SERVICES
This Agreement for Contract Services and Delegation of Fire Inspection Services ("Agreement") dated August 28, 2023, is entered into by and between the City of Grover Beach, a municipal corporation ("Grover Beach"), and the Five Cities Fire Authority, a California Joint Powers Authority ("Authority"). Grover Beach and Authority are sometimes referred to herein, collectively or individually as "Parties" or "Party".

RECITALS
WHEREAS, the cities of Arroyo Grande, Grover Beach and Oceano Community Services District initially created a joint powers authority by executing a Joint Exercise of Powers Agreement, dated June 7, 2010, for the purpose of providing more efficient and effective fire protection services within the Parties’ respective jurisdictions; and
WHEREAS, the cities of Grover Beach and Arroyo Grande executed an Amended and Restated Joint Exercise of Powers Agreement in June, 2023 (“the Amended and Restated JPA Agreement”), pursuant to Government Code Sections 6500 et seq. for the purpose of restructuring the Authority to a two member agency joint powers authority, to streamline services and provide for more cost effective fire and emergency services; and WHEREAS, the Amended and Restated JPA Agreement revised the 2010 agreement and is now one of the governing documents for the Authority; and
WHEREAS, the Authority has a need for improving costs efficiencies, maximizing operational staffing needs and desires for Grover Beach to complete a portion of the fire inspections performed by the Authority by delegation of the Fire Chief, pursuant to Chapter 9, of the California Building Codes, Fire Protection Service, Section 1.11.2.1.1; and WHEREAS, Grover Beach has qualified personnel that can provide fire inspection services under contract with the Authority; and
WHEREAS, Grover Beach and the Authority desire to enter into this Agreement in order to set forth the terms and conditions of Grover Beach providing such services to the Authority.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the Parties agree as follows:

1. Recitals. The Recitals above are true and correct and are incorporated herein by reference.

2. Scope of Services. Grover Beach will, under the terms and conditions of this Agreement, provide the Authority with fire inspection services (“Services”), as more specifically described in Exhibit "A" entitled "Scope of Services," attached hereto and incorporated herein by this reference.

3. Compensation. Grover Beach shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement, through the imposition of regulatory fees in an amount equal to the direct costs incurred by Grover Beach in providing the Services at the rates established by City Council approval. Direct costs shall consist of salary and benefit costs for time dedicated exclusively by employees in performing services for the Authority. No overhead costs shall be charged.

Attachment 1
2 4. Term. The term of this Agreement shall extend 12 months from July 1, 2023. The Parties may mutually agree in writing to extend the term of the Agreement for additional agreed upon periods of time. Either Party may terminate this agreement with or without cause upon sixty (60) days prior written notice.

5. Non-Exclusive. This Agreement does not obligate the Authority to exclusively use the services of Grover Beach for services that are not otherwise set forth in the JPA Agreement as being exclusive to Grover Beach. The Authority shall be entitled to retain other service providers and consultants as deemed necessary by the Authority for the provision of such services.

6. MISCELLANEOUS

6.1 Entire Agreement. This Agreement constitutes the entire agreement between the

6.2 6.4
Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and arrangements, both oral and written, between the Parties hereto with respect to such subject matter. Nothing in this Agreement shall be deemed to modify the terms and conditions set forth in the Amended and Restated JPA Agreement. Except as otherwise provided herein, this Agreement may not be modified, amended, altered, or rescinded in any manner, except by written instrument signed by both of the Parties. The waiver by either Party of a breach or compliance with any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or compliance.

Assignment. A Party may not assign this Agreement without the prior written consent of the other Party.

Notices. Unless otherwise specified herein, any notices or other communications required or permitted hereunder shall be given in writing and be delivered personally or sent by facsimile transmission, internationally recognized overnight courier, registered, or certified mail (postage prepaid with return receipt requested) as follows:

To Grover Beach :

To Authority:

City of Grover Beach
Attn: City Clerk
154 S. Eighth St.

Grover Beach , CA 93433
Five Cities Fire Authority
Attn: Secretary to the Board
140 Traffic Way
Arroyo Grande, CA 93420
Such notices or other communications shall be deemed received (i) on the date delivered, if delivered personally, (ii) on the date that return confirmation is received by sender, if sent by facsimile or (iii) five (5) days after being sent, if sent by first class registered mail, return receipt requested.

Relationship of the Parties. Nothing in this Agreement, or in the course of dealing between the Parties pursuant to this Agreement, shall be deemed to create between the Parties (including their respective officers, employees and agents) in connection with the subject matter herein, a partnership, joint venture,

6.3 3
association, employment relationship or any other relationship, other than that of independent contractors with respect to each other. Neither Party shall have the authority to commit or legally bind the other Party in any manner whatsoever, including but not limited to, the acceptance or making of any agreement, representation or warranty.

6.5 Third Party Beneficiaries. This Agreement inures to the benefit of the Parties only and no third party shall have any rights hereunder.

6.6 Severability. If any provision of this Agreement is held invalid or unenforceable, such provision shall be deemed deleted from this Agreement and shall be replaced by a valid and enforceable provision which so far as possible achieves the same objectives as the severed provision was intended to achieve, and the remaining provisions of this Agreement shall continue in full force and effect.

6.7 Survival. Any provision of this Agreement which contemplates performance or observance subsequent to any termination or expiration of this Agreement shall survive any termination or expiration of this Agreement and continue in full force and effect.

6.8 Headings. The section headings used herein are for reference and convenience only and shall not enter into the interpretation hereof.

6.9 Venue: Any dispute under this Agreement shall be resolved under the laws of the State of California with venue in San Luis Obispo County.

6.10 Indemnification: The Authority and Grover Beach agree to indemnify and hold the other Party harmless from all liability for damage to persons or property arising out of or resulting from the acts or omissions of the indemnifying Party in connection with performance under this Agreement.

IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement effective as of the date first written above.

FIVE CITIES FIRE AUTHORITY
By:____________________

CITY OF GROVER BEACH
By:_______________________
65501.00013\41537520.1
EXHIBIT “A”

SCOPE OF SERVICES
The City of Arroyo Grande and the City of Grover Beach (Cities) acknowledge their role in protecting the health and safety of their residents, businesses, and visitors and recognize the need for efficient and effective fire prevention services within their jurisdictions. Per the Agreement, effective July 1, 2023, the City of Grover Beach will provide the following fire prevention services:
• Residential Care Facilities (Group R – SB 1205)
• Public & Private Schools (Group E – SB 1205)
• Pre-school / Child Care Facilities
• Business Inspections
• Hospital/Clinic Inspections
• Plan/Sprinkler Review
• Related Field Inspections
The Five Cities Fire Authority (FCFA) will continue to provide the following fire prevention services:
• Multi-Family Dwellings (Group R – SB 1205)
• Hotel/Motels (Group R – SB 1205)
• Project Pre-Application Review (Water Supply & Access) • Special Event Application Review / Food Booth Inspection • Fireworks Program Management
• Weed Abatement Program Management
April 2023
Five Cities Fire Authority
Analysis of Fire Services
Attachment 2
1730 MADISON ROAD • CINCINNATI, OHIO 45206 • 513 861 5400 • BAKERTILLY.COM April 13, 2023
Mr. Matthew Bronson
City Manager
City of Grover Beach
154 S. Eighth Street
Grover Beach, CA 93433
Dear Mr. Bronson:

Baker Tilly is pleased to transmit this report on our assessment of the Five Cities Fire Authority (FCFA). The focus of this engagement was to provide an overall assessment of the financial impacts associated with the departure of the Oceano Community Services District (OCSD) from the FCFA based on OCSD’s initiation of the divestiture process with the San Luis Obispo County Local Agency Formation Commission (LAFCO). In this report, we identified staffing and fire service options and developed options for a new governance structure. In all, our report includes 18 recommendations for organization enhancements and efficiencies. In addition, we also created a user-friendly and multi-faceted fiscal model for the FCFA and the cities of Arroyo Grande and Grover Beach to use in their respective budget forecasting. This fiscal model will be provided to you separate from this report.

Our review found that the FCFA has done a commendable job in providing basic fire suppression service to its partner agencies, given its limited financial resources, constrained operating budget, and organizational challenges. While the FCFA is an improvement over the previous separate city department model, like other small fire agencies, the FCFA has many operational challenges. However, we feel that we have made several recommendations in this report to help the FCFA address the challenges.

We appreciate the FCFA staff and staff from the cities of Arroyo Grande and Grover Beach for providing us with a variety of information and for having very candid discussions with our team members. In addition, we valued the feedback we received from both the Arroyo Grande City Council and the Grover Beach City Council on our observations and preliminary recommendations presentation, and please be advised that this report provides updated data based on information we received since those presentations were made.

Sincerely,
Carol Jacobs
Managing Director
Analysis of Fire Services
Table of Contents Baker Tilly
i
Table of Contents
Executive Summary .................................................................................................................................. 1 Major Observations .......................................................................................................................... 1 Organization of the Document ....................................................................................................... 2 Background ................................................................................................................................................ 3 Project Approach ....................................................................................................................................... 4 Interviews .......................................................................................................................................... 4 Interview Themes ........................................................................................................................ 5 Document Review ............................................................................................................................ 5 Service Level Analysis ............................................................................................................................. 6 Fire Chief’s Recommended Staffing Plans ........................................................................................ 19 Plan A – Incremental staffing increase with a 4th Company in FY 2029 ............................... 19 Plan B – An immediate staff increase of 12 and adding a 4th Company in FY 2027 ............ 19 Fiscal Analysis ......................................................................................................................................... 21 Alternative Models ................................................................................................................................. 37 Maintain the JPA pooled FCFA structure to serve the two cities and possibly provide short-term or longer-term service to Oceano via contract ........................................................ 37 Revert to stand alone independent city fire departments ........................................................ 40 Contract out service delivery to CALFIRE ................................................................................. 40 One City to contract for fire service delivery with the other City ........................................... 41 Regional Consolidation ................................................................................................................. 41 Governance Structure ............................................................................................................................. 43 Conclusion ................................................................................................................................................ 44 Attachment A – List of Recommendations ......................................................................................... 45 Analysis of Fire Services
Table of Contents Baker Tilly
ii
Tables
Table 1. First Alarm Residential Staff Assignments .......................................................................... 7 Table 2. Current FY 2022-23 Budgeted Staffing .................................................................................. 8 Table 3. Comparison of FCFA Service Area and Staffing Model to Nearby Agencies ............... 9 Table 4. Annual Calls for Service1 ....................................................................................................... 10 Table 5. Plan A – Incremental staffing increase with 4th Company in FY 2029 ......................... 19 Table 6. Plan B – Immediate staff increase of 12 with 4th Company in FY 2027 ........................ 20 Table 7. Total Cost .................................................................................................................................. 20 Table 8. Percentage Allocation of Contributions Between Member Agencies ........................... 23 Table 9. Plan A-2 Staffing Configuration and Additions by Year ................................................. 25 Table 10. Plan A-3 Staffing Configuration and Additions by Year ............................................... 25 Table 11. Plan A-4 Staffing Configuration and Additions by Year ............................................... 26 Table 12. Plan A-5 Staffing Configuration and Additions by Year ............................................... 27 Table 13. Low-Cost Option: FCFA forecast with OCSD scenario 1/staffing Plan A-4 ($ in 000) 28 Table 14. Medium-Cost Option: FCFA forecast with OCSD scenario 1/staffing Plan A-3 ($ in 000) 28
Table 15. High-Cost Option: FCFA forecast under OCSD scenario 1/staffing Plan A-2 ($ in 000) 29
Table 16. Low-Cost Option: FCFA forecast under OCSD scenario 2/staffing Plan A-4 ($ in 000) 30
Table 17. Medium-Cost Option: FCFA forecast under OCSD scenario 2/staffing Plan A-3 ($ in 000) 30
Table 18. High-Cost Option: FCFA forecast under OCSD scenario 2/staffing Plan A-2 ($ in 000) 31
Table 19. Low-Cost Option: FCFA forecast under OCSD scenario 3/staffing Plan A-4 ($ in 000) 32
Table 20. Medium-Cost Option: FCFA forecast under OCSD scenario 3/staffing Plan A-3 ($ in 000) 32
Table 21. High-Cost Option: FCFA forecast under OCSD scenario 3/staffing Plan A-2 ($ in 000) 33
Table 22. FY 2024 Contribution by Cities and Increase Over FY 2023 ($ in 000) ......................... 34 Table 23. Plan A-4 Two Three-Person and One Two-Person Companies Without Added County Funding Support ($ in 000) ..................................................................................................... 38 Table 24. Plan A-2 – Three Three-Person Companies Without Added County Funding Support ($ in 000) .................................................................................................................................... 39 Analysis of Fire Services
Table of Contents Baker Tilly
iii
Table 25. Plan A-5 – Two 3-Person Engine Companies, Added Battalion Chief and Contracted Prevention Services, Service Only the Two Cities, Without OCSD ($ in 000) ............................ 39 Figures
Figure 1. FCFA Expense versus Revenue Assuming no OCSD, Current Staffing Levels, and Continued Flat City Contributions ...................................................................................................... 24 Figure 2. Projected Costs for FCFA and Nearby Cities ($ in 000) ................................................... 34 Figure 3. Range of FCFA Contributions by Cities Through FY 2029 ($ in 000) ........................... 35 Figure 4. Regional Map1 ......................................................................................................................... 42 Analysis of Fire Services
Executive Summary Baker Tilly
1 Executive Summary
Baker Tilly was engaged by the cities of Arroyo Grande and Grover Beach to assist with an analysis of fire services provided by the Five Cities Fire Authority (FCFA).

The objective of this engagement was to:
• Provide an assessment of the financial impacts of the departure of the Oceano Community Services District (OCSD) from the FCFA; • Provide the options available to the FCFA to address the financial gap as a result of OCSD’s withdrawal from the FCFA; and • Recommend a new governance structure upon the departure of OCSD.

Major Observations
Through our data gathering and analysis, we made numerous detailed observations described further in this report. Major observations that informed our recommendations are provided below.
• The need for an ongoing dedicated revenue source to finance operational and capital costs. With the exception of grant funding and state strike team reimbursements, all operations and capital expenses are financed directly by participating agencies.

Each agency makes a financial contribution based on a predetermined funding allocation amount; however, recent annual financial contributions have not sufficiently financed operations or capital costs. Consequently, a dedicated revenue source is both needed and warranted.
• The divestiture of OCSD fire service responsibility will take time to resolve. The process for divestiture was initiated by the OCSD Board of Directors on January 11, 2023, and now the San Luis Obispo Local Agency Formation Commission (LAFCO) will
decide on this matter. However, this decision will not be made before the end of this fiscal year; thus, options for fire service in the Oceano area will need to be explored.
• The FCFA does not meet National Fire Protection Association (NFPA) 1710 standards. NFPA sets standards for fire suppression, emergency medical operations, and special operations through Analysis of Fire Services
Executive Summary Baker Tilly
2 NFPA 1710 which requires, amongst other things, four-person response units with a total of 17 personnel required for structure fires. FCFA does not meet this standard.
• The FCFA faces numerous operational challenges. Operational challenges include inconsistent staffing levels on all units, insufficient resources devoted to training (especially high-risk/low frequency calls), the lack of a dedicated revenue source to help finance operations and capital costs, inadequate fire prevention programs and managerial oversight, and an outdated
communication system.
• A Standards of Cover and Community Risk Assessment are needed. Both a Standards of Cover and Community Risk
Assessment are essential for determining the appropriate staffing and deployment needs of the agency. A Standards of Cover report would identify response time objectives, establish standards for measuring the effectiveness of department resources, and evaluating the deployment of those resources. A Community Risk Assessment would provide the FCFA with recommendations of how to prepare their community to respond to emergency events and develop community resilience.
• The number of calls for service for the existing service population is consistent with industry standards; however, public service or non-emergent calls represent 40% of total calls, which is relatively high compared to surrounding agencies. For example, the percentage of non-emergent calls in surrounding agencies are Paso Robles 19.1%, Morro Bay 20.2%, San Luis Obispo 23.8%, and Atascadero 30.7%. It is our understanding that the reporting software has a coding issue that needs to be addressed and may result in an increase in emergency medical calls and a
corresponding decrease in non-emergent calls.

Organization of the Document
The remainder of this report is organized into the following major sections:
• Background
• Project Approach
• Service Level Analysis
• Fire Chief’s Recommended Staffing Plans
• Fiscal Analysis
• Alternative Models
• Governance Structure
• Conclusion
Analysis of Fire Services
Background Baker Tilly
3 Background
In 2004, the cities of Arroyo Grande and Grover Beach initiated a partnership to provide fire services. This partnership included sharing personnel such as a fire chief and training officer and was later expanded to include equipment sharing, a consolidation of their reserve firefighter programs, and a change in how 9-1-1 calls were dispatched with the closest fire resource responding regardless of community boundaries. In 2009, the Oceano Community Services District joined the partnership leading to a complete consolidation of the fire departments on July 9, 2010, and the establishment of the Five Cities Fire Authority.

The Five Cities Fire Authority serves a 10 square mile area, which includes the communities of Arroyo Grande, Grover Beach, and Oceano, with a population of approximately 38,000. The area is served by three fire stations. The mission of the Five Cities Fire Authority is “to provide the highest level of service possible by mitigating threats to life, property, and the environment while meeting the growing needs of our communities.” After a special tax measure failed in the Oceano Community Services District (OCSD) in June 2022, the OCSD took action to withdraw from the Five Cities Fire Authority effective June 30, 2023. As a result, Grover Beach and Arroyo Grande requested an assessment of the financial impacts associated with the OCSD’s departure and the staffing and fire service options available in order to continue to provide fire prevention and suppression services to their respective communities be prepared by an independent third party.

Analysis of Fire Services
Project Approach Baker Tilly
4 Project Approach
In 2015, the fire chief performed a Strengths, Weakness, Opportunities, and Threats (SWOT) analysis of the FCFA. Later, in 2017, the FCFA Board hired a consultant to assist the Board with the development of a Five-Year Strategic Plan that assessed the agency’s staffing, equipment, personnel deployment, and resource needs. This previous work provided Baker Tilly with background information and context for this engagement.

Baker Tilly also obtained additional information through interviews and review of operations-related documents which informed the recommendations in this report.

Interviews
To inform our analysis, Baker Tilly conducted individual and group interviews with the following:

1. CALFIRE representatives

2. City Managers

3. City finance directors

4. FCFA command staff

5. FCFA firefighters’ union representatives which included captains, engineers and firefighters

6. Former FCFA Board Members

7. OCSD General Manager

8. San Luis Obispo County Fire Chief

9. San Luis Obispo County Local Agency Formation Commission (LAFCO) Executive Director
The purpose of the interviews was to obtain insight on:
• Strengths, weaknesses, and opportunities for improvement inside and outside the organization;
• Organization structure and staffing;
• Interagency collaboration and communication;
• Technology systems and staff development opportunities; • Financial management and reporting; and
• Assessment of best practices.

Analysis of Fire Services
Project Approach Baker Tilly
5 Interview Themes
The following major themes emerged from our interviews. • FCFA personnel take great pride in the service they provide and are passionate about enhancing service levels.
• The departure of OCSD is a concern from a fire service delivery and funding perspective.
• Board members, city management, fire command staff, and floor personnel are concerned about the availability of funding to properly finance operations and capital costs.
• According to floor personnel, they are overworked and stressed due to operational challenges and lack of resources.
• A low level of collaboration exists between FCFA personnel and the JPA member agencies which has caused frustration amongst floor personnel leading to a lack of harmony and mutual understanding in the workplace.
• Continued consolidation of fire resources from neighboring agencies makes the most sense rather than having standalone city fire departments.

Document Review
Baker Tilly reviewed a wide range of documents to help inform our analysis. The documents are listed below.
• Budgeting and financial-related information including CalPERS Actuarial Reports
• CALFIRE Emergency Command Center Contract
• CALFIRE Pismo Beach Contract
• Citygate Pismo Beach Analysis
• Calls for service data and associated call volume information • Emergency Command Center Three Year Data Run by Unit
• FCFA Joint Powers Agreements and associated amendments • La Verne Fire Department Community Risk
Assessment/Standards of Cover
• NFPA 1500 Firefighter Safety and Wellness
• NFPA 1710 Standard for Deployment
• NFPA 1730 Community Risk/Fire Prevention
• Public Protection Classification Summary Report by the Insurance Services Office
• Santa Maria Fire Department Community Risk
Assessment/Standards of Cover
• Special District Fire Projection Study
• Strategic planning and associated fire study documents • Various FCFA operations documents
Analysis of Fire Services
Service Level Analysis Baker Tilly
6 Service Level Analysis
Since 2010, the FCFA has provided fire prevention and suppression service to the cities of Arroyo Grande, Grover Beach, and the unincorporated area of Oceano. Their service area boundary covers almost 10 square miles. FCFA serves a population of over 38,000 and personnel respond from three separate fire stations.

The FCFA has a total of 26.5 full-time equivalent (FTE) budgeted positions. The FY 2022-23 annual budgeted revenues are $6.3 million with $6.9 million in appropriations resulting in budgeted deficit of $616,000.

The annual capital budget for the FCFA is slightly over $250,000. This represents an increase from prior years, which averaged about $100,000 per year over the last three years. The FCFA does not currently have an established asset replacement program for equipment and apparatus which makes it challenging to replace mission-critical assets when needed. In addition, there is no current long-term capital plan for fire station renovations or improvements.

Given their limited financial resources, the FCFA provides basic fire suppression service to the community and maintains a positive relationship with the public. There also exists a non-profit group called “Friends of the Five Cities Fire Authority” that is made up of community volunteers designed to help provide additional funding to the agency as well as support its goal of providing effective fire protection services to the residents of the central coast. The FCFA model enables the cities to provide fire protection services in a cost-effective manner. The department could be characterized as a home-grown department with many local employees. The majority of those in a supervisory capacity have been promoted through the ranks of the organization. Like many small fire agencies, the operational design and organization make the FCFA unique while also creating challenges for service delivery which are discussed later in this report.

Because of the topography and vast service boundaries of the FCFA, automatic and mutual aid resources have lengthy response times. As such, the FCFA does not currently meet the National Fire Protection Association (NFPA) standards for fire suppression, emergency medical Analysis of Fire Services
Service Level Analysis Baker Tilly
7 operations, and special operations as outlined in NFPA 1710 for public career fire organizations. Specifically, the daily unit staffing is not at the required level to meet this standard. NFPA requires four personnel on each unit with 17 personnel required for structure fires within 8 minutes of being dispatched. Rather than being at the required 17 personnel, the FCFA has only 11 personnel, thus requiring assistance from other outside fire agencies to properly attack a structure fire as illustrated in Table 1 below.

Table 1. First Alarm Residential Staff Assignments
Assignment Standard FCFA1
Incident Commander 1 22
Pump Operator 1 1
Fire Attack 2 2
Back-Up Crew (BUC) 1 2 2
Attack/BUC Support 2
Victim Search & Rescue 2
Ladders and Ventilation 2 2
Truck Operator 1
Rapid Intervention Crew (RIC) 4 22
Subtotal 17 11
1When Oceano is open, there exists 1 additional Fire Engineer 2Automatic Aid - One Battalion Chief, One Engine Company with staffing of two The NFPA 1710 requirement is based on operational studies conducted by the NFPA and the National Institute of Standards and Technology (NIST) on fireground and emergency medical services field experiments.

These experiments defined the number and types of tasks specific fire personnel are required to perform for successful outcomes during fire and emergency medical service (EMS) calls for service. They compare staffing of two, three, four, and five firefighters with varying arrival times of each apparatus. In addition, there is a Cal OSHA regulation in place requiring four personnel to be on scene and available for rescue before entering a hazardous environment. With the current FCFA configuration and staffing model this is not easily met, and the only permitted exception is entry to rescue a victim.

With regards to the current NFPA standard, Table 2 on the following page compares the NFPA standard with the current complement of FCFA.

Analysis of Fire Services
Service Level Analysis Baker Tilly
8 Table 2. Current FY 2022-23 Budgeted Staffing
Current
Station Companies
A/P/T1 Arroyo Grover 3rd 4th Total
Chief 1 1
Admin 1.5 1.5
Fire Marshal 0
Prevent Spec 0
EMS Coord 0
Batt Chief 2 2
Captain 3 3 3 9
Engineer 3 3 1 7
Firefighter 3 3 6
Total 4.5 9 9 4 26.5
1 A/P/T = Administration/Prevention/Training
Of the 26.5 full-time equivalent (FTE) positions, 22 FTEs are sworn positions that provide a three-company deployment with two threeperson companies (one assigned to each City) and one two-person company on "B" shift only that is assigned to the Oceano area. In addition, there are 2.5 FTE positions assigned to administration (including the fire chief), along with 2 battalion chiefs, as illustrated in Table 2.

While the FCFA has a three-company deployment, because of the current staffing pattern illustrated in Table 2 above, the FCFA unit assigned to Oceano is out of service approximately 66% of the time. Taking this unit out of service puts a greater demand on the two remaining units. The logical result is an increase in simultaneous calls and dependance on automatic and mutual aid.

The constant staffing provision in the current memorandum of understanding (MOU) is two positions short of staffing all three units every day. The delivery of safe and efficient fire suppression and emergency service is based on the time and weight of responding resources, leading to effective mitigation. The varying and low level of staffing puts firefighters and the public at greater risk of injury and contributes to a low level of incident control and desired outcomes. If funding was not an issue, the ideal staffing would be for all front-line engines and trucks to be staffed by four full-time sworn personnel. And while this staffing model has proven to be the safest and most effective way to mitigate emergencies, many agencies are unable to provide this level of service. In fact, agencies of similar size and call volumes to FCFA commonly use a staffing pattern of three per unit as illustrated in Table 3.

Analysis of Fire Services
Service Level Analysis Baker Tilly
9 Table 3. Comparison of FCFA Service Area and Staffing Model to Nearby Agencies Agency Population
Area (Square
Miles)
Fire
Stations
2022 calls
for Service Staffing Model
FCFA w/ OCSD (Plan A-4)1 38,154 9.65 3 4,154 Two three-person companies and one two-person squad
FCFA w/o OCSD (Plan A-5) 31,000 8.15 2 3,326 Two three-person companies2
Pismo Beach 8,000 13.5 2 2,487 Two two-person companies Atascadero 30,500 26.13 2 3,453 Two three-person companies Lompoc 43,800 11.67 2 4,201 Two three-person companies
and one two-person squad
Paso Robles 31,759 19.65 23 4,748 Two three-person companies and a two-person squad
1 The FCFA calls for service are from 2021; calls for 2022 have not yet been received. 2 Calls for service do not reflect mutual aid as data was not provided by jurisdiction. 3 Fire Station 3 is currently under construction with an estimated completion date of summer 2023. The fire station at the airport is not staffed.

The management complement in the FCFA consists of two battalion chiefs and a fire chief. Currently, the work schedules for the two battalion chiefs do not align with the three shift schedules of suppression personnel resulting in communication challenges. Furthermore, program management and oversight responsibilities are currently being delegated to floor personnel. While this is not uncommon in smaller fire agencies that have limited management resources, it is an inefficient practice and leads to communication and operational issues.

Recommendation 1. Add an additional battalion chief to
the full-time complement of management personnel and
assign each battalion chief to a shift schedule.

There is an immediate need for an additional battalion chief to balance program oversight and operational responsibilities. This was cited in the 2017 Strategic Plan and has yet to be addressed. Once an additional battalion chief is hired, all battalion chiefs should then convert to the 56- hour shift schedule to provide better operational safety through consistent and timely command and control on emergency scenes.

During our engagement, Baker Tilly also noted that most administrative and operational programs necessary to run the department have been subordinated to captains with a battalion chief being the liaison for management and oversight. While the captains may be capable of managing these tasks, the additional responsibilities and required time commitment limit their ability to effectively complete their Analysis of Fire Services
Service Level Analysis Baker Tilly
10 responsibilities and address issues related to their respective crews resulting in miscommunication and uncertainty. The addition of a battalion chief will position the command staff to lead the organization by setting goals, assist with policy development, identifying needs, developing plans, monitoring performance, and creating systems of accountability.

Future Staffing Priorities
As the organization continues to grow and the service population increases, a training officer/emergency medical services (EMS) coordinator, a full-time fire inspector, and an additional fire unit may be necessary to assure administrative compliance, unit coverage, and response capabilities. However, we do not foresee this type of increased staffing being needed in the near future based on the average annual growth in calls for the two cities. As illustrated in Table 4, the average annual growth in calls in the cities from 2012 to 2021 is 3.6%.

Table 4. Annual Calls for Service1
Year
Arroyo
Grande
Grover
Beach
Cities
Total
Annual
Change OCSD
Grand
Total
Annual
Change
2012 1,521 903 2,424 18.10% 513 2,937
2013 1,537 882 2,419 -0.20% 515 2.934 -0.10%
2014 1,562 908 2,470 2.10% 573 3,043 3.72%
2015 1,724 1,084 2,808 13.70% 528 3.336 9.63%
2016 1,824 1,152 2,976 6.00% 521 3.497 4.83%
2017 1,987 1,198 3,185 7.00% 583 3,768 7.75%
2018 1,856 1,098 2,954 -7.30% 566 3,520 4.58%
2019 1,814 1.049 2,863 -3.10% 570 3.433 -2.47%
2020 1,964 1,077 3041 6.20% 712 3.753 9.32%
2021 2,125 1,201 3326 9.40% 631 3,957 5.44%
CAGR2 3.79% 3.22% 3.58% 2.33% 3.37%
1 These numbers do not include automatic or mutual aid since we were only provided that information for partial years. 2 Compound annual growth rate.

Table 4 reflects the annual calls for service over the last ten years. Since Baker Tilly only received automatic or mutual aid data for the last three years and not the entire ten-year period, we did not include any automatic or mutual aid data in the above table as that would have skewed the annual compounded growth rate analysis. However, it should be noted that the average automatic or mutual aid calls during the last three-year period were not significant – reflecting less than five percent of total call volume.

Analysis of Fire Services
Service Level Analysis Baker Tilly
11 It was difficult for Baker Tilly to analyze call utilization and track productive and non-productive work hours, as neither the FCFA nor the City of Arroyo Grande’s Accounting Services Division track working hours by category. Accordingly, a recognized best practice in fire service is a staffing program that documents and displays daily staffing hours and locations. Such a program tracks and audits all hours charged to the individual employees and can be set up by specific categories for the type of work performed or leave taken. This allows the administrative staff to track all hours charged to daily staffing and specific events or programs in the FCFA budget, providing for immediate oversight and recognition of abnormal or unexpected hours used or accrued. The accounting of all hours by category can also provide for a more accurate budget forecast.

Recommendation 2. Acquire a staffing program to
manage and track all working and nonworking hours for
all FCFA personnel.

Another best practice is to know unit hour availability. Currently, the FCFA does not utilize a program to track activities and hours daily for each unit. Reliable data and statistics are necessary to evaluate the true time spent on calls for fire personnel to determine unit hour utilization.

While these numbers are available from the CALFIRE Emergency Command Center, they could be more easily accessed in a daily unit history program. Daily workload including fire prevention, training, station and apparatus maintenance, and public education are also tracked in these types of programs and is then demonstrated in a unit hour availability summary in addition to the unit hour utilization.

Recommendation 3. Improve the ability to track
company activity by developing or purchasing a program
capable of tracking all unit and personnel activity,
including apparatus and equipment.

The 2017 Strategic Plan recommended conducting an
operational/financial analysis of the FCFA as well as a Standards of Cover. This will assist in determining whether current service levels adequately address the service demand. In addition, a Community Risk Assessment is also warranted.

Recommendation 4. Conduct a Standards of Cover and
Community Risk Assessment to determine the
appropriate level of service to provide the community.

The Standards of Cover would be created using data provided by FCFA and others used to determine the current levels of response performance as quantified statistics. From this analysis, factors will be identified that Analysis of Fire Services
Service Level Analysis Baker Tilly
12 would influence response performance and opportunities for delivery system improvement. The Standards of Cover would identify response time objectives, standards for measuring the effectiveness of department resources, and the deployment of those resources. A Standards of Cover is a best practice, and the report should be consistent with the format recommended by the Center for Public Safety Excellence, Community Risk Assessment: Standards of Cover, 6th Edition.

A Community Risk Assessment is based on numerous factors, including socioeconomic status, household composition, minority status and language, population and density, housing types, local land use and development, and the geography and natural hazards present throughout the community. These factors affect the number and type of resources, both personnel and apparatus, necessary to control or mitigate an emergency. A community risk assessment provides relevant information to the FCFA with recommendations of how to prepare their community to respond to emergency events and develop community resilience.

Both a Standards of Cover and Community Risk Assessment are essential for determining the appropriate staffing and deployment needs of the agency and should be performed by an outside independent third-party consultant. For planning purposes, we have added $50,000 to the FY 2023-24 FCFA budget forecast as an estimate for the cost of such a study.

Clerical and Administrative Support Staff
In the FY 2022-23 budget, there are 1.5 positions identified as administrative. As the organization continues to grow and the fire prevention program creates a more robust fee service program, there will eventually be a need to increase the current complement of staff to two full-time positions. It should be noted that in the fire chief’s proposed staffing plans, he recommends increasing the one part-time clerical staff to full-time in FY 2024-25. For planning and staff projection purposes, we have included the fire chief’s recommendation in our alternative staffing models later in this report.

Analysis of Fire Services
Service Level Analysis Baker Tilly
13 Fire Prevention and Community Risk Reduction
Currently, member agencies use their building official or contract building official for new construction plan review, permit requests, and field inspections. These building officials are identified as fire marshals.

Baker Tilly believes the position of a state-certified fire marshal as a position within the FCFA is necessary to conduct state-mandated fire inspections, as well as high-hazard occupancy inspections. These are technical inspections that take several hours each and require specialized training and education to interpret and enforce the appropriate Uniform Fire Code sections.

The FCFA is responsible for approximately 1,900 annual fire prevention inspections: 200 multi-unit and hotel inspections, 50 new business inspections, 1,500 annual business inspections, and roughly 30 plan check inspections. The FCFA is also responsible for over 165 state-mandated inspections such as schools, hospitals, care facilities, high-rise, and highhazard occupancies that require specialized permits. Currently, over 70% of business inspections are not being conducted. Consequently, fire prevention is not currently being supported at an acceptable level which creates a risk and liability concern.

There is a justifiable need for two positions responsible for fire prevention activities. The annual small business inspection load is approximately 1,500, which would normally be assigned to the field units. However, due to the low level of field staffing and unit availability, these inspections have not been done. In communities that have low field staffing levels, fire prevention is as equally important as fire suppression. One of the most effective ways to reduce fire calls is to have a strong prevention presence in the community. The result is a greater understanding of the community’s hazards/risks and mitigating contributory factors before they become a call for service. For these reasons, a full-time fire marshal position and a part-time inspector are warranted. However, due to the FCFA’s limited financial resources, contracting for these services would be more economical.

Recommendation 5. Contract for fire marshal and fire
inspection services.

Baker Tilly also recommends completion of NFPA 1730 Standard on Organization and Deployment of Fire Prevention Inspection and Code Enforcement, Plan Review, Investigation, and Public Education Operations. This document provides a structured process to guide a fire prevention professional to work through a prevention-based community Analysis of Fire Services
Service Level Analysis Baker Tilly
14 risk assessment. Once the NFPA 1730 Standard is completed and/or the standards of cover or community risk assessment has been performed, a more thorough understanding of prevention staffing needs would be identified and would serve as the basis to guide future fire prevention needs.

Departmental Training
A battalion chief manages fire related training. Each employee is responsible for entering their training hours into an automated program as they complete the hours. The battalion chief has audit and oversight responsibilities to assure compliance standards. FCFA currently meets mandatory hourly requirements for the county and state.

FCFA contracts with a nurse educator to manage the requirements of the Local Emergency Medical Services Area (LEMSA) quality assurance review process and reporting while providing the required continuing education to remain an EMS provider. This arrangement addresses the requirements, but there is an ongoing commitment for staff oversight, control, and scheduling of this program.

Providing training on all shifts and dealing with the logistical issues such as identifying and obtaining permission to use various sites for training are challenging. Currently, OCSD provides a site for the ventilation prop and coordinates fire hydrant use for water flow evolutions. These are two of the most crucial functions that require reoccurring training. They are high risk/low frequency manipulative evolutions. Pumping water through hose lines and master stream appliances along with ventilation of a roof structure are critical to the mission of saving lives and property within the first few minutes of a fire. When OCSD is no longer a partner, the nearest option for this type of training is in Lompoc. Logistically, this is impractical due to driving time and a lack of coverage units for the FCFA. With limited options for local training sites there is little opportunity for live fire training. In most organizations these evolutions are conducted with a staff of evaluators on a routine basis. Staffing a reserve unit with overtime personnel or asking for a cover unit from CALFIRE would be the only option to meet the time commitment necessary for this type of training. We commend the FCFA for being highly active in the San Luis Obispo Training Officers group as well as having representatives on many special operations teams and oversight working groups within the County fire system. However, we noted that there is less than $15,000 budgeted annually for agency training, which is low, even for a smaller agency.

Recommendation 6. Increase the amount budgeted
annually for departmental training.

Analysis of Fire Services
Service Level Analysis Baker Tilly
15 Additional funding for securing training sites and staffing is necessary in order to properly provide the necessary training staff, especially suppression personnel, need.

During our interviews with FCFA union representatives, they voiced their concern that leadership development and succession planningrelated training was not afforded to floor personnel.

There are skill-set requirements for each position in the suppression ranks, but there is frustration in the lack of funding for the necessary technical training required of floor personnel that is not provided by FCFA. Their MOU allows for educational and training reimbursement only if funding is available, and there is not enough budgeted to address this demand. This has resulted in a financial cost for anyone taking a promotional exam that requires additional certifications. Additionally, there does not appear to be any leadership programs offered to floor personnel to encourage and develop the future leaders of the organization.

Recommendation 7. Develop a comprehensive training
program to address succession planning, and increase the budget for tuition reimbursement, thereby allowing
employees to complete the necessary certifications and
education required to advance through the ranks.

Management positions in FCFA should also be included in any leadership and management training opportunities offered by partner agencies to their managers and department heads.

Building and Facilities
During our onsite visit to the FCFA facilities, it was noted that the Oceano station is not in alignment with modern fire service standards or response criteria. The temporary housing unit is currently too far away from where the apparatus room is located, resulting in delayed response times during emergency calls, i.e., increased turnout times (time from dispatch to leaving the station). Turnout times should be no more than 60 seconds for emergency medical calls and 80 seconds for fire calls.

Recommendation 8. Move the OCSD station housing
closer to the apparatus room.

The OCSD station’s administrative office is also in the same physical location as the fire apparatus and equipment. This is an unsafe and unhealthy working condition, as employee workstations should not be in close proximity or exposed to diesel exhaust and byproducts, or carcinogens.

Analysis of Fire Services
Service Level Analysis Baker Tilly
16 Recommendation 9. Install a sealed door and/or wall to separate the office and living quarters from the
apparatus room and turnout storage areas.

Currently, there are no female firefighters in the FCFA which is not unusual for a smaller agency. Modern station design creates privacy and personal space for each member on duty.

Recommendation 10. Assess the living quarters to
determine if creating separate quarters for female
firefighters is feasible.

Evaluating and planning for modification to existing facilities to create separate living quarters for female firefighters would demonstrate the commitment of the organization to creating a supportive and inclusive work environment and would enhance recruitment of candidates.

During our visits to each station, we learned that the Motorola radio system platform upgrade has been budgeted and will be addressed soon.

However, we also discovered that the existing station alerting system needs repair at station 1 and upgrading is needed at stations 1 and 2 to allow for multi-unit dispatch. The phone system is an analog system and fails during significant rain occurrences. A voice over internet protocol (VoIP) system allows for greater clarity and dependability than the analog system. Increased functionality enhances efficiency by allowing call forwarding, routing, recording, online meetings, app integration, and can reduce ongoing costs as opposed to traditional infrastructure and hardware.

Recommendation 11. Allocate appropriate funding to
repair and/or upgrade the station alerting systems and
the existing phone system.

Vehicles and Equipment
Currently, there is no option for local routine maintenance of agency apparatus or vehicles. FCFA personnel must schedule all repairs and maintenance with a vendor in Paso Robles. This creates both a financial and operational burden on the agency. A firefighter must drive the apparatus, along with personnel following in a different vehicle, in order to transport the firefighter back to the station. Depending on traffic this could take up to two hours of overtime for each or require taking a unit out of service. While major repairs must be done at the vendor’s, regular maintenance and minor repairs could be done by either a qualified local vendor or by the City of Grover Beach’s mechanic. We learned that the fire chief is researching a mobile mechanic for the routine maintenance service. A mobile maintenance service is a more effective way to address Analysis of Fire Services
Service Level Analysis Baker Tilly
17 routine maintenance and minor repairs of fire vehicles rather than driving them out of the area.

Recommendation 12. Request proposals from local
vendors, as well as the City of Grover Beach, to perform minor repairs and regular maintenance on agency vehicles.

FCFA staff should compare any maintenance service proposals with the cost for the City of Grover Beach to perform similar maintenance services.

Since the City of Grover Beach is a participating member of the FCFA, collaborating on vehicle repairs could be a viable alternative. However, should it be decided to have the City of Grover Beach assist in minor repairs, it is recommended that the mechanic obtain their California State Fire Training Emergency Vehicle Technician 1 (EVT) certification. Any collaboration between agency partners and the FCFA could assist in increasing the organization’s efficiency and effectiveness.

During our engagement, concern regarding the lack of interagency collaboration was expressed, leading to a lack of harmony and mutual understanding in the workplace. Opportunities exist to open the lines of communication between partner agencies and Baker Tilly recommends steps in this direction.

Recommendation 13. Strengthen interagency
relationships and collaboration between FCFA personnel
and member agencies.

The 2017 Strategic Plan discussed the need for a vehicle replacement program; however, the agency still does not have one. The fire chief is to be commended for using Office of Emergency Service (OES) funding and other creative measures to fund vehicle repairs and obtain replacement vehicles when possible. However, an established vehicle replacement program and the funding of it is still needed.

Recommendation 14. Develop an equipment replacement
fund for all mission critical equipment and apparatus.

We reviewed the agency’s written operational policies and procedures and concluded additional work in this area is needed. This topic was also addressed in the 2017 Strategic Plan. Currently, the FCFA staff are in the process of transferring the existing documents to Lexipol, an electronic records system. While some progress has been made, there are only about 30 established policies and procedures in place, and according to floor personnel, some are either not current or are in direct conflict with one another.

Analysis of Fire Services
Service Level Analysis Baker Tilly
18 Recommendation 15. Develop a comprehensive policy
and procedures manual, building upon efforts currently
underway.

Analysis of Fire Services
Fire Chief’s Recommended Staffing Plans Baker Tilly
19 Fire Chief’s Recommended Staffing Plans
At the onset of this engagement, the fire chief provided Baker Tilly with two proposed staffing models that he would like to implement over the next several years. For the purposes of illustration, we refer to these plans as Plan A and Plan B.

Plan A – Incremental staffing increase with a 4th Company in FY 2029 The fire chief’s Plan A adds a total of 22.5 FTE new positions over the next six years and a 4th engine company in FY 2029 as illustrated in Table 5 below.

Table 5. Plan A – Incremental staffing increase with 4th Company in FY 2029 PLAN A
Station Companies Staffing Additions
A/P/T
Arroyo
Grande
Grover
Beach 3rd 4th Total FY24 FY25 FY26 FY29 Total
Chief 1 1 0
Admin 2 2 0.5 0.5
Fire Marshal 1 1 1 1
Prevent Spec 1 1 1 1
EMS Coordinator 1 1 1 1
Batt Chief 3 3 1 1
Captain 1 3 3 3 3 13 1 3 4
Engineer 3 3 3 3 12 2 3 5
Firefighter 3 3 3 6 15 3 6 9
Total 10 9 9 9 12 49 6 2.5 2 12 22.25
We have reviewed and researched the FCFA 2017 Strategic Plan and other supporting documents. As the organization continues to grow and the community expands, a training officer/emergency medical services coordinator, a full-time fire inspector, and a fourth company may be necessary to assure administrative compliance, unit coverage, and response capabilities. However, as was cited in the 2017 Strategic Plan, Community Risk Assessment/Standards of Cover (CRA/SOC) study would need to be conducted to identify the type of resource, fire station location, and staffing levels to suit the communities’ needs.

Plan B – An immediate staff increase of 12 and adding a 4th Company in FY 2027
Plan B is a more aggressive staffing plan that adds a total of 24.5 FTE positions over the next four years and a 4th engine company in FY 2027 Analysis of Fire Services
Fire Chief’s Recommended Staffing Plans Baker Tilly
20 as illustrated in Table 6 below. While the fire chief’s plan also called for an additional company in FY 2032, these proposed staffing increases are beyond the scope of our forecast period and are therefore not included in Table 6 or in cost estimates.

Table 6. Plan B – Immediate staff increase of 12 with 4th Company in FY 2027 PLAN B
Station Companies Staffing Additions
A/P/T
Arroyo
Grande
Grover
Beach 3rd 4th Total FY 24 FY 27 Total
Chief 0
Deputy Chief 1 1 1 1
Admin 2 2 0.5 0.5
Fire Marshal 1 1 1 1
Prevent Spec 2 2 2 2
EMS Coordinator 1 1 1 1
Battalion Chief 3 3 1 1
Captain 3 3 3 3 13 4 4
Engineer 3 3 3 3 12 2 3 5
Firefighter 4 4 4 3 15 6 3 9
Total 10 10 10 10 9 51 12.5 12 24.5
As indicated above, Baker Tilly recommends completing a CRA/SOC before considering either of these plans, Plan A or Plan B. And while our assessment did not allow us the ability to analyze unit hour utilization, consecutive call patterns, and overall community risk assessment, a standards of cover report would allow for this assessment. However, based on the information we have reviewed, including current run loads and type of calls, it is our position that a fourth company is not currently warranted at this time.

Costs associated with these two plans are substantial, as illustrated in Table 7 below. In fact, operating costs would double in about five years under Plan A with costs doubling in four years under Plan B.

Table 7. Total Cost
FY 22
Actual
FY 23
Budget
FY 24
Estimate
FY 25
Estimate
FY 26
Estimate
FY 27
Estimate
FY 28
Estimate
FY 29
Estimate
Plan A $6,771 $7,214 $9,119 $10,120 $11,700 $11,805 $12,415 $15,512 Plan B $6,771 $7,214 $10,203 $10,874 $11,905 $14,729 $15,051 $15,592 Analysis of Fire Services
Fiscal Analysis Baker Tilly
21 Fiscal Analysis
Both cities of Arroyo Grande and Grover Beach will face significant increases in fire contributions to the FCFA, even if fire staffing remains at its current level, for three reasons:
• Contributions have remained fixed for four years while FCFA expenditures have continued to rise. This is unsustainable. The only reason that FCFA is not already in deficit is that actual expenditures have come in around $310,000 under budget per year over the past three years;
• OCSD intends to withdraw from FCFA and that will reduce FCFA revenues by $1,138,000, with the potential of no corresponding reduction in FCFA expenditures to serve the two remaining members; and
• FCFA expenditures will rise further due to the need to increase salaries to a level that allows for the recruitment and retention of personnel as well as CalPERS investment losses that will continue to increase pension contributions.

As part of this engagement, Baker Tilly has prepared a user-friendly and multi-faceted fiscal model for FCFA and the two cities, which can be used to run numerous scenarios showing the impact on all three agencies given various outcomes regarding the following key variables:
• OCSD: Their intention is to leave the FCFA effective July 1, 2023.

On January 11, 2023, the OCSD Board approved the initiation of the divestiture process with the San Luis Obispo Local Agency Formation Commission (LAFCO). The OCSD’s divestiture
application was received by LAFCO on February 6, 2023.

Divestiture is a discretionary action on the part of LAFCO. Part of that process will likely involve commissioning a study of OCSD’s options. This study, together with the LAFCO decision-making process, may take 6-12 months. If the decision is for another agency to take on the responsibility of providing fire service to the Oceano area, that transition may take another 12 to 18 months.

Therefore, OCSD may be dependent upon FCFA for fire service for another year or two. The OCSD contribution of $1,138,000 is approximately equal to their current property tax revenue. Their property tax revenue is what they would give up should the County take over responsibility for providing fire service.

Therefore, FCFA could likely expect to receive at least an amount Analysis of Fire Services
Fiscal Analysis Baker Tilly
22 comparable to OCSD’s property tax revenue for each additional year OCSD remains either a member of FCFA or contracts back fire service, if not more. The forecast currently assumes OCSD is no longer a member effective July 1, 2023, but the first step is determining whether OCSD remains or contracts back services with FCFA, and when.
• Staffing: The FCFA fire chief has proposed two options for increases in station staffing, administration, fire prevention, and training, based on OCSD remaining in FCFA. Since staffing is the main cost driver, it will be a major determinant of the future level of city contributions. Thus, the FCFA Board must determine the appropriate level of staffing, with or without OCSD, given the current trend in call volume. Baker Tilly has examined several alternative staffing packages, and the fiscal model can select any one of these options (the fire chief’s two plans and Baker Tilly’s five plans) and show the resulting cost impact over time. The current forecast assumes the lowest staffing cost option (Baker Tilly plan A-5, which assumes the FCFA not providing any first responder fire service to the Oceano community, reducing staffing to two 3-person companies, adding a battalion chief, and contracting for fire marshal and fire inspector services). • Salaries: FCFA staff appear to be below the average level of salaries for comparable agencies within the central coast region.

Inflation has been high for two years, but while long-term estimates assume the CPI will fall back to the 2 to 3% range, this recent inflationary rise adds pressure to increase wage levels.

Salaries are a meet and confer item, but it seems reasonable to assume annual increases in excess of the Federal Reserve’s inflation goal of 2%. The fiscal model can select wage growth amounts by year, and the forecast is based on salary and benefits as recommended by the City of Arroyo Grande’s director of administrative services who serves as the FCFA finance director.

This increase includes COLAs, merit/step increases, and savings from employee turnover.
• Reserves: An appropriate reserve level must be identified and maintained for FCFA. While contribution levels are a known quantity, the major risk is that higher costs may be incurred that are not reimbursed by the state for wildfire strike team related overtime. The fiscal model assumes that contributions are set to maintain a 10% reserve for FCFA over time.
• Grants: The potential exists for SAFER grants to be received from the federal government to offset the cost of eligible new staffing increases. SAFER grants are competitive, and thus their receipt is Analysis of Fire Services
Fiscal Analysis Baker Tilly
23 not guaranteed. They also offset costs for only three years and after that FCFA must maintain that higher staffing level and absorb the resulting cost. Thus, these grants are short term, and not an ongoing benefit. However, if qualifying staff increases are going to be approved, even the short-term benefit would help offset the rise in contribution levels that would otherwise be required to be financed by the FCFA. The fiscal model can show the impact of SAFER grants based on proposed staffing increases, but the current forecast assumes no receipt of such grants. • Cost Allocation: Costs are currently allocated between member agencies based one-third on population, one-third calls for service and one-third on station staffing levels. There are also direct allocations regarding HazMat and debt service costs. The fiscal model assumes these allocation factors are updated for recent population and service calls, and to omit the OCSD.

Consequently, the resulting allocation is between only the two cities, and would result in a small percentage shift from Grover Beach to Arroyo Grande, as shown in Table 8 below.

Table 8. Percentage Allocation of Contributions Between Member Agencies Cost Allocation
Share
Current
w/OCSD
Revised
w/OCSD
Current
w/o OCSD
Revised
w/o OSCD
Arroyo Grande 45.01% 44.99% 56.16% 57.65%
Grover Beach 35.14% 32.23% 43.84% 42.35%
Oceano CSD 19.85% 22.68% 0.00% 0.00%
Total 100.00% 100.00% 100.00% 100.00%
• OCSD Obligations: The third amendment to the current FCFA agreement provides for the possible departure of OCSD and a negotiation that would define a contribution by OCSD for unfunded liability, equipment, and debt service contributions upon leaving FCFA. These amounts are unknown at this time and thus excluded from the forecast and, while unlikely to make a major difference in the ongoing level of contribution by the two cities, this financial obligation may result in an increase in reserves.

Given these assumptions, FCFA costs will continue to rise, and the loss of OCSD reduces revenues by $1,138,000. Figure 1 shows the resulting impact of current staffing with no change in city contribution levels (solid red line) compared to costs (see bars, split between staffing and all other costs). Even when other revenues such as state reimbursements for strike Analysis of Fire Services
Fiscal Analysis Baker Tilly
24 team overtime are added in (dotted red line), total revenues are expected to fall below the anticipated expenditures in FY 2022-23 and well below those in the next two fiscal years.

Figure 1. FCFA Expense versus Revenue Assuming no OCSD, Current Staffing Levels, and Continued Flat City Contributions
Clearly, continuing the flat contributions by the two cities is not sustainable. Absent new FCFA funding, the contributions from member agencies will have to increase to fill the gap. The impact on the two cities can be determined by the factors entered in the FCFA fiscal model. There are many potential scenarios to consider using the forecast assumptions noted above, but the two most important are what happens with OCSD, and what level of staffing is proposed for FCFA. The two issues are interwoven in that if OCSD is to be serviced, there will have to be a higher staffing level. However, at the two recent council meetings by the two cities on the issue of fire services, it was also proposed that staffing be increased even if OCSD is not being serviced.

Accordingly, we have prepared three scenarios involving OCSD, and under each scenario we show the impact of a high, medium, and low level of staffing. These plans do not include the fourth engine company, training captain, EMS coordinator, and deputy chief that are contained in the Fire Chief’s Plans A and B. However, they do include an additional battalion chief, as well as fire prevention services and clerical support.

The potential levels of staffing included in these three scenarios are shown in the following four tables.

Analysis of Fire Services
Fiscal Analysis Baker Tilly
25 Plan A-2 provides three 3-person companies, an additional battalion chief, contractual costs associated with fire marshal/fire inspector services, and an additional 0.5 FTE clerical position. A-2 staffing is shown in Table 9.

Table 9. Plan A-2 Staffing Configuration and Additions by Year PLAN A-2
Station Companies Staffing Additions
A/P/T
Arroyo
Grande
Grover
Beach 3rd 4th Total FY 24 FY 25 FY 26 FY 29 Total
Chief 1 1 0
Admin 2 2 0.5 0.5
Fire Marshal C 0 0
Inspector - PT C 0 0
EMS Coordinator 0 0
Battalion Chief 3 3 1 1
Captain 3 3 3 9 0
Engineer 3 3 3 9 2 2
Firefighter 3 3 3 9 3 3
Total 6 9 9 9 0 33 6 0.5 0 0 6.5
C = Fire Marshal and Inspector functions provided by contract service (assumes $100,000) Plan A-3 provides two 3-person companies and one 2-person company, an additional battalion chief, a fire marshal, a half-time fire inspector, and an additional 0.5 FTE clerical position. A-3 staffing is shown in Table 10.

Table 10. Plan A-3 Staffing Configuration and Additions by Year PLAN A-3
Station Companies Staffing Additions
A/P/T
Arroyo
Grande
Grover
Beach 3rd 4th Total FY 24 FY 25 FY 26 FY 29 Total
Chief 1 1 0
Admin 2 2 0.5 0.5
Fire Marshal 1 1 1 1
Inspector - PT 0.5 0.5 0.5 0.5
EMS Coordinator 0 0
Battalion Chief 3 3 1 1
Captain 3 3 3 9 0
Engineer 3 3 3 9 2 2
Firefighter 3 3 6 0
Total 7.5 9 9 6 0 31.5 3 1 1 0 5
Analysis of Fire Services
Fiscal Analysis Baker Tilly
26 Plan A-4 provides two 3-person companies and one 2-person company, an additional battalion chief, and fire marshal/fire inspector services pursuant to a contract and an additional 0.5 FTE clerical position. And while the FCFA has chosen to run a similar two-person staffing model for the OCSD area, it should be noted that staffing an engine with two personnel might not be considered a best practice in an urban fire organization. A-4 staffing is shown in Table 11.

Table 11. Plan A-4 Staffing Configuration and Additions by Year PLAN A-4
Station Companies Staffing Additions
A/P/T
Arroyo
Grande
Grover
Beach 3rd 4th Total FY 24 FY 25 FY 26 FY 29 Total
Chief 1 1 0
Admin 2 2 0.5 0.5
Fire Marshal C 0 0
Inspector - PT C 0 0
EMS Coordinator 0 0
Battalion Chief 3 3 1 1
Captain 3 3 3 9 0
Engineer 3 3 3 9 2 2
Firefighter 3 3 6 0
Total 6 9 9 6 0 30 3 0.5 0 0 3.5
C = Fire Marshal and Inspector functions provided by contract service (assumes $100,000) Plan A-5 provides the lowest level of staffing: two 3-person companies, an additional battalion chief, fire marshal/fire inspector services pursuant to a contract and an additional 0.5 FTE clerical position. This staffing model would only be an option if just the two cities were being served and not providing first responders fire service in the Oceano area. In addition, it should be noted that this staffing model results in the elimination of 2.5 FTE positions. A-5 staffing is shown in Table 12.

Analysis of Fire Services
Fiscal Analysis Baker Tilly
27 Table 12. Plan A-5 Staffing Configuration and Additions by Year PLAN A-5
Station Companies Staffing Additions
A/P/T
Arroyo
Grande
Grover
Beach 3rd 4th Total FY 24 FY 25 FY 26 FY 29 Total
Chief 1 1 0
Admin 2 2 0.5 0.5
Fire Marshal C 0 0
Inspector - PT C 0 0
EMS Coordinator 0 0
Battalion Chief 3 3 1 1
Captain 3 3 9 -3 -3
Engineer 3 3 9 -1 -1
Firefighter 3 3 6 0
Total 6 9 9 0 0 24 -3 0.5 0 0 -2.5
C = Fire Marshal and Inspector functions provided by contract service (assumes $100,000) The OCSD scenarios depend upon the outcome of the LAFCO process as well as whether San Luis Obispo County might provide a long-term fire service solution for the Oceano area. In addition, providing fire service to the Oceano area would be in excess of the OCSD’s property tax revenue, so the question is whether the County would be willing to augment the funding FCFA receives on behalf of OCSD in an amount beyond the property tax revenue of the OCSD.

Scenario 1. OCSD stays under contract with FCFA for up to another year, then leaves.

This is a likely outcome given the 6 to 12 months a LAFCO decision is expected to take. The payment to FCFA would be the amount OCSD receives in property tax. No OCSD revenue would be received in FY 2024-25 and thereafter. The three preferred staffing levels proposed for this scenario are as follows:
• Low Cost: Plan A-4 (two 3-person companies and one 2-person company, contract prevention staff) shown in Table 13
• Medium Cost: Plan A-3 (two 3-person companies and one 2- person company, in-house prevention staff) shown in Table 14 • High Cost: Plan A-2 (three 3-person companies, contract prevention staff) shown in Table 15
Analysis of Fire Services
Fiscal Analysis Baker Tilly
28 Table 13. Low-Cost Option: FCFA forecast with OCSD scenario 1/staffing Plan A-4 ($ in 000) Note that in this and subsequent forecast tables, Other Revenue for FY23 includes a one-time $887,401 transfer from the City of Arroyo Grande to reimburse prior year pension unfunded accrued liability (UAL) costs which should have been paid by the city. Other revenue also includes inspection fees (expected to increase in FY24 due to more inspections being conducted), fire prevention program revenues, and strike team reimbursements. (NOTE – this financial information and associated tables have been updated since the City Council presentations in late February.) Table 14. Medium-Cost Option: FCFA forecast with OCSD scenario 1/staffing Plan A-3 ($ in 000) Analysis of Fire Services
Fiscal Analysis Baker Tilly
29 Table 15. High-Cost Option: FCFA forecast under OCSD scenario 1/staffing Plan A-2 ($ in 000) Scenario 2. OCSD stays under contract with FCFA for an indefinite term with OCSD’s funding capped at their total property tax revenue amount.

This could be the outcome if LAFCO and the County decline to assign a new fire service provider for OCSD. The payment to FCFA would be limited to the amount OCSD receives in property tax, which is less than the proportion that would be assigned if OCSD remained a member of FCFA, and it is assumed that no additional funding is provided by the County. The three preferred staffing levels proposed for this scenario are as follows:
• Low Cost: Plan A-4 (two 3-person companies and one 2-person company, contract prevention staff) shown in Table 16
• Medium Cost: Plan A-3 (two 3-person companies and one 2- person company, in house prevention staff) shown in Table 17 • High Cost: Plan A-2 (three 3-person companies, contract prevention staff) shown in Table 18
However, should the FCFA provide first responder fire services to the Oceano area for an indefinite period, Baker Tilly recommends Plan A-2 as the ideal staffing deployment.

Analysis of Fire Services
Fiscal Analysis Baker Tilly
30 Table 16. Low-Cost Option: FCFA forecast under OCSD scenario 2/staffing Plan A-4 ($ in 000) Table 17. Medium-Cost Option: FCFA forecast under OCSD scenario 2/staffing Plan A-3 ($ in 000) Analysis of Fire Services
Fiscal Analysis Baker Tilly
31 Table 18. High-Cost Option: FCFA forecast under OCSD scenario 2/staffing Plan A-2 ($ in 000) Scenario 3. OCSD stays under contract with FCFA for an indefinite term with appropriate county financial support.

This could be the outcome if LAFCO and the County decline to assign a new fire service provider for OCSD, and the County agrees to supplement the payment to the FCFA so that an amount equal to the proportional allocation to the two cities is paid. The three preferred staffing levels proposed for this scenario are as follows:
• Low Cost: Plan A-4 (two 3-person companies and one 2-person company, and contract fire prevention) shown in Table 19 • Medium Cost: Plan A-3 (two 3-person companies and one 2- person company, in house prevention staff) shown in Table 20 • High Cost: Plan A-2 (three 3-person companies, contract prevention staff) shown in Table 21
However, as with Scenario 2, should the FCFA provide first responder fire services to the Oceano area for an indefinite period, Baker Tilly recommends Plan A-2 as the ideal staffing deployment.

Analysis of Fire Services
Fiscal Analysis Baker Tilly
32 Table 19. Low-Cost Option: FCFA forecast under OCSD scenario 3/staffing Plan A-4 ($ in 000) Table 20. Medium-Cost Option: FCFA forecast under OCSD scenario 3/staffing Plan A-3 ($ in 000) Analysis of Fire Services
Fiscal Analysis Baker Tilly
33 Table 21. High-Cost Option: FCFA forecast under OCSD scenario 3/staffing Plan A-2 ($ in 000) For the purpose of comparison, we examined the trend in fire costs of nearby cities to those of FCFA. Figure 2 compares projected FCFA costs under staffing plans A-4 and A-5, and its current level of staffing, to the projected costs for Paso Robles, Lompoc, Atascadero, and Pismo Beach.

Note that Pismo Beach only has 2-person companies, and under its special “Amador Plan” contract with CALFIRE, one of its fire companies is considered a “state asset” that responds to wildfires as needed, resulting in Pismo Beach paying less as a result. We have been informed that any future CALFIRE contract arrangement will no longer include the Amador Plan provision resulting in higher contractual costs.

Analysis of Fire Services
Fiscal Analysis Baker Tilly
34 Figure 2. Projected Costs for FCFA and Nearby Cities ($ in 000) For budget planning purposes, Table 22 shows the FY 2023-24 impact on the two cities depending on the OCSD scenario and the corresponding preferred FCFA staffing plan. Scenarios 1 and 2 have the same effect in FY 2023-24, but Scenario 2 results in a lower burden on the cities in future years.

Table 22. FY 2024 Contribution by Cities and Increase Over FY 2023 ($ in 000) Plan
FY 2024 Contribution Increase from FY 2023 Table
Number Arroyo Grande Grover Beach Arroyo Grande Grover Beach OCSD stays for a limited period of time - up to 12 months (Scenario 1):

Plan A-4 $3,796 $2,812 $1,215 $797 13
Plan A-3 $3,733 $2,766 $1,152 $751 14
Plan A-2 $4,098 $3,034 $1,517 $1,019 15
OCSD stays for an indefinite period with a capped financial contribution (Scenario 2):

Plan A-4 $3,796 $2,812 $1,215 $797 16
Plan A-3 $3,733 $2,766 $1,152 $751 17
Plan A-2 $4,098 $3,034 $1,517 $1,019 18
OCSD stays with financial contribution from the County (Scenario 3):

Plan A-4 $3,621 $2,633 $1,040 $618 19
Plan A-3 $3,463 $2,490 $882 $475 20
Plan A-2 $3,748 $2,695 $1,167 $680 21
Analysis of Fire Services
Fiscal Analysis Baker Tilly
35 Figure 3 shows the range of potential FCFA contribution levels by the two cities through FY 2028-29, depending on OCSD scenario and preferred FCFA staffing level. The low level is Staffing Plan A-4 with OCSD Scenario 3 (County support), and the high level is Staffing Plan A-2 with no service to OCSD.

Figure 3. Range of FCFA Contributions by Cities Through FY 2029 ($ in 000) The actual impact on the two cities will depend upon:
• Whether FCFA obtains a new revenue source that would allow city contributions to increase slowly over time and avoid the shock of a large increase in contribution starting in FY 2023-24. • Lacking added FCFA revenue, whether each city can get approval of increased revenues for itself. The revenue generating capacity and voter preferences has varied between the two cities in the past, so their respective revenue-generating capacities may differ.

The local voter-approved sales tax in Grover Beach is 1.5%, and in Arroyo Grande it is 0.5% (and in that city a recent ballot measure to increase the tax another 1.0% was narrowly defeated in 2022). • Lacking additional revenue, each city would make its own judgments about the priority of non-fire services, and the areas in which to make expenditure reductions. On a short-term basis each has capacity to defer capital projects. Arroyo Grande has its local sales tax in a separate fund which could bear a greater share than it presently contributes; however, that would be at the expense of other services. However, this is not a sustainable long-term Analysis of Fire Services
Fiscal Analysis Baker Tilly
36 strategy as the cities must continue to invest in the upkeep of its transportation, parks, and public building infrastructure.

One revenue option is a parcel tax or a Mello-Roos assessment that would provide a dedicated funding source for FCFA, but this requires a twothirds voter approval. A 2020 California Court of Appeals ruling currently allows for a majority vote if the tax is enacted through the voter initiative process, but an initiative planned for the ballot in November 2024 seeks to repeal that ruling retroactively. Of the 29 parcel tax ballot measures placed on the November 2022 ballot statewide by a local nonschool agency, 14 were successful, eight of which were tax renewals, and six were new taxes. Such a parcel tax would require an annual inflation adjustment that would allow it to address higher fire costs over time. The timing of such a vote is an issue as higher contributions are needed starting FY 2023-24, and there is a lag time getting onto the next property tax bill.

Another revenue option is a sales tax. If imposed by the FCFA, it would be a special tax and require a two-thirds voter approval. The maximum allowed in a district comprising both cities would be a 0.5% rate, because Grover Beach accounts for 1.5% of the 2.0% local sales tax capacity available under state law, and the rate would need to be uniform across both cities. Of the 10 special sales tax ballot measures placed on the November 2022 ballot statewide (requiring a two-thirds vote), four were successful and six failed. If a 0.5% tax were placed on the same ballot independently by both cities, it could be done as a general tax for each, as has previously been done in both cities.

Recommendation 16. Assess the viability and potential
of a revenue enhancement measure to adequately finance
the operational and capital needs of the FCFA.

Analysis of Fire Services
Alternative Models Baker Tilly
37 Alternative Models
The FCFA has done a commendable job in providing basic fire suppression services to its partner agencies given the limited financial resources, constrained operating budget, and organizational challenges.

With OCSD submitting an application for divestiture of fire service responsibilities, FCFA is entering a period of uncertainty. It will take from 6 to 12 months for LAFCO to take action on this application and longer for the successor fire service provider in Oceano to come on-line. LAFCOs analysis will inform the options available, but the list of alternatives is not that long. They include:

1. Maintain the JPA pooled FCFA structure to serve the two cities (Plan A-5) and possibly provide limited term (Plan A-4) or longerterm service (Plan A-2) to service the Oceano community via contract;

2. Revert to two stand-alone independent city fire departments;

3. Contract out service delivery to CALFIRE;

4. Dispense with the JPA structure and simply have one city (Grover Beach) contract for fire service delivery with Arroyo Grande (currently the employer);

5. Pursue a broader regional service delivery model to include Pismo Beach and/or the Nipomo area.

Baker Tilly recommends Option 1 in the near / medium term with a focus on Option 5 in the longer term to maximize regional efficiencies.

Each Option is reviewed in more detail below.

Maintain the JPA pooled FCFA structure to serve the two cities and possibly provide short-term or longer-term service to Oceano via contract Providing Service to Oceano on a Short-Term Basis
This is essentially the status quo condition. Since it is not likely that OCSD will be able to obtain approval for its divestiture application by the end of June 2023, it will likely have to provide fire services into the next fiscal year. The easiest way to provide for this would be via a contract with FCFA whereby the Authority would provide staffing at the Oceano Analysis of Fire Services
Alternative Models Baker Tilly
38 station commensurate with what OCSD could afford, which is assumed to be the level of their property tax revenue. This would likely result in a two-person company at the Oceano station on a 24/7 basis. This option would be an enhancement of the existing service as the Oceano station is only staffed 1/3 of the time. This alternative staffing option (Plan A-4) provides two 3-person companies (one in each city) and one two-person unit (in Oceano), plus a battalion chief and contract for fire marshal and inspection services. This staffing model is being recommended as a temporary measure until a permanent decision of fire service for the Oceano community can be determined. The cost for this alternative is reflected in Table 23 below.

Table 23. Plan A-4 Two Three-Person and One Two-Person Companies Without Added County Funding Support ($ in 000)
However, it should be noted that the above level of service is not consistent with what Baker Tilly would find satisfactory on a longer-term basis, but it may have to suffice until LAFCO determinations are finalized and a successor service provider is ready to step in with additional funding.

Baker Tilly believes the JPA structure is worth keeping in place, mostly to support a future broader regional service provider, perhaps with the County to include both Oceano and Nipomo or with these latter two stations and the City of Pismo Beach.

Providing Service to Oceano on a Longer-Term Basis
Should a decision be made resulting in the FCFA providing fire service to the Oceano community on a more permanent basis, then Baker Tilly would recommend a three 3-person company deployment (Plan A-2).

This deployment would provide a 3-person company at each station Analysis of Fire Services
Alternative Models Baker Tilly
39 (Arroyo Grande, Grover Beach and Oceano). This deployment would be more consistent with industry practices and would result in the following costs as illustrated in Table 24.

Table 24. Plan A-2 – Three Three-Person Companies Without Added County Funding Support ($ in 000) Providing Service to Only the Two Cities
Based on call volume, Baker Tilly would recommend a two 3-person company deployment to service the two cities (Arroyo Grande and Grover Beach) until such time a Standards of Cover can be performed and determine the staffing and station location for a two-station model.

The cost for this model is depicted in Table 25 and includes an additional battalion chief and contracting for fire marshal and inspection services.

Table 25. Plan A-5 – Two 3-Person Engine Companies, Added Battalion Chief and Contracted Prevention Services, Service Only the Two Cities, Without OCSD ($ in 000) Analysis of Fire Services
Alternative Models Baker Tilly
40 It should be noted that with a two-engine company model, receiving a strike team and overhead reimbursement might be challenging, given staffing resources. Therefore, to be conservative, we have excluded both strike team overtime costs and associated state reimbursements from Plan A-5. Should FCFA staff want to adjust this amount prospectively, this can easily be adjusted in their fiscal model.

Revert to stand alone independent city fire departments Under this alternative, the JPA would be dissolved, and the cities would revert to independent non blended services. This would result in cost increases as currently shared services would have to be delivered on an independent non-shared basis. Management, support and training costs would increase - leaving no economies of scale. Consequently, Baker Tilly does not believe that having individual, stand-alone fire departments in each city is a viable alternative for fire protection and suppression services from both a cost and operational perspective. And since the shared services arrangement has worked well for over ten years, Baker Tilly believes this would be a step backwards.

Contract out service delivery to CALFIRE
The State Department of Forestry and Fire Protection, otherwise known as CALFIRE, is the largest fire department in California, and it commonly provides services via a cooperative agreement to local governments.

Currently, CALFIRE serves the following local governments via a cooperative agreement:
• 31 out of 58 counties (including San Luis Obispo County) • 39 out of 482 cities (including Pismo Beach in SLO County and 19 cities in Riverside County)
• 25 fire districts
• 42 special districts
CALFIRE is very experienced with wildland interface and rural areas and much of its service area tends to be in such areas. Generally, it provides less contract services in more urbanized areas. Large fire service providers either via contract or via a tax share agreement to urbanized cities include the Orange County Fire Authority, the Los Angeles County Fire Protection District, and the San Bernardino County Fire Protection District. Collectively, these large fire service providers serve far more cities than does CALFIRE.

CALFIRE might be willing to provide a bid to FCFA for services, but in the view of Baker Tilly it is unlikely to reduce costs relative to current FCFA costs. In addition, contracting with CALFIRE would reduce local Analysis of Fire Services
Alternative Models Baker Tilly
41 control relative to the shaping of service levels and other similar matters.

CALFIRE is not a common choice for California cities when it comes to a service provider. It is much more common for counties to work with CALFIRE. This probably reflects the rural/urban split mentioned above.

One City to contract for fire service delivery with the other City Should the JPA structure cease to exist at some point in the future, since all FCFA employees are technically employees of the City of Arroyo Grande, another alternative delivery model could have the City of Grover Beach contracting for fire service from the City of Arroyo Grande. This would not be a unique arrangement as cities throughout the State contact for various municipal services with neighboring jurisdictions. For example, the cities of Pacific Grove and Carmel both contract for fire service with the City of Monterey, and Stanford University contracts for fire service with the City of Palo Alto. And while shifting fire service to one city may address a number of operational and organizational issues, it would also shift a lot of liability and financial risks to one city as well; namely, Arroyo Grande. Consequently, should the cities decide to explore this alternative service delivery model, more extensive fiscal and operational assessment would be warranted.

Regional Consolidation
Regionalizing service delivery can often result in savings from economies of scale in such areas as management, technology, and specialized services. In the fire service, local service delivery from neighborhood fire stations typically does not change much in terms of staffing or apparatus types, although improvements in training, career opportunities, and some support services can be found. Most savings will be from shared support services, and overall management and regional consolidation is becoming quite common in the fire service. The primary reason is obtaining economies of scale in operations primarily in management and technical areas. Currently, the Orange County Fire Authority serves 23 of the 34 cities in the County and approximately 2 million out of the 3.2 million of the residents of the County. The even larger Los Angeles County Fire Protection District serves 57 out of the 88 cities in that county either via contract or by tax share.

Regional fire service delivery makes intuitive sense in the Five Cities area of southern San Luis Obispo County, because it is a geographically distinct area being composed of a broad coastal plain running north from the Santa Barbara County line to Pismo Beach where the coastal mountains march down to the Pacific Ocean and force Highway 1/101 to turn inland. The map on the following page shows the five fire stations Analysis of Fire Services
Alternative Models Baker Tilly
42 found in this region. Two are operated under cooperative agreement by CALFIRE for the County of San Luis Obispo and the City of Pismo Beach, and three are operated by FCFA.

Pursuing this type of regional consolidation would enable the area to maximize economy of scale savings for management and technology while also growing local control via the FCFA JPA.

Figure 4. Regional Map1
1Map provided by the County of San Luis Obispo
As was mentioned previously, the OCSD has initiated a divestiture application with the San Luis Obispo LAFCO. This process is expected to take 6 to 12 months. Public input will be solicited as part of the process, and it is quite possible LAFCO will decide to retain a consultant to explore fire service options.

There will be a period of uncertainty as the OCSD pursues the divestiture process since fire service delivery for Oceano will be in limbo, but during the study process OCSD will be responsible for continuing to deliver services to the best of its ability. FCFA has determined that it will provide contract services to the OCSD during the interim, which is certainly a good approach, given the circumstances. FCFA is not under any statutory obligation to deliver services via contract but, given its long running partnership with the OCSD, some support will probably be expected by LAFCO and the County, and such support will build support for a regional approach in the future. FCFA is certainly free to advocate for the benefits of a regional approach as LAFCO processes the divestiture application.

Analysis of Fire Services
Governance Structure Baker Tilly
43 Governance Structure
The current governing board of the FCFA consists of three members, an elected official from each member agency. With the departure of the OCSD from the FCFA, we recommend restructuring the board to consist of either a five-member or three-member board made up of equal representation from each city and a mutually agreed-upon board member. Some examples of a mutually agreed-upon board member could consist of:
• A rotating member of the public;
• The San Luis Obispo County fire chief;
• A representative of the San Luis Obispo County
administrative office; or
• A rotating member of the Board of Supervisors from
Districts 3 and 4.

Recommendation 17. Restructure the FCFA Board to
consist of either a five-member or three-member board.

In addition, the fire chief currently reports to the three-member FCFA Board (which is comprised of elected officials from each member agency). Having the fire chief, who routinely deals with administrative and operational matters, report directly to three elected officials is not an effective reporting structure and it creates operational challenges, the least of which is no direct supervisory oversight and limited communication abilities due to Brown Act restrictions. Instead, Baker Tilly recommends that the fire chief report directly to either one or both city managers.

Recommendation 18. Reorganize the reporting
relationship of the fire chief and have that position
report directly to either one or both city managers.

Analysis of Fire Services
Conclusion Baker Tilly
44 Conclusion
The FCFA has had its share of operational and organizational challenges over the last several years, and while there have been prior assessment reports and studies on its operations, because of limited financing, no significant recommendations from these reports and/or studies have been implemented to date. Now, with the imminent department of the OCSD and the potential loss of $1.1 million in annual revenue contributions, decisive operational decisions by the cities of Arroyo Grande and Grover Beach are in order.

Baker Tilly has completed an assessment of the financial impacts associated with the departure of the OCSD and has put forward realistic staffing and fire service delivery options for consideration by key stakeholders. The assessment concludes that maintaining a regional service delivery approach makes sense for the cities of Arroyo Grande and Grover Beach, and indeed, building on it in time, if possible, would be a net benefit. We also believe that a new dedicated revenue source is necessary to support fire service delivery and that a joint parcel tax may be a good opportunity for the FCFA to pursue. Action on this should be considered no later than the summer of 2024 for possible consideration at the general election in November 2024. Making these efforts will build support for a possible revenue measure in 2024.

Analysis of Fire Services
Attachment A – List of Recommendations Baker Tilly
45 Attachment A – List of Recommendations
Recommendation 1. Add an additional battalion chief to the full-time complement of management personnel and assign each battalion chief to a shift schedule.

Recommendation 2. Acquire a staffing program to manage and track all working and nonworking hours for all FCFA personnel.

Recommendation 3. Improve the ability to track company activity by developing or purchasing a program capable of tracking all unit and personnel activity, including apparatus and equipment.

Recommendation 4. Conduct a Standards of Cover and Community Risk Assessment to determine the appropriate level of service to provide the community.

Recommendation 5. Contract for fire marshal and fire inspection services.

Recommendation 6. Increase the amount budgeted annually for departmental training.

Recommendation 7. Develop a comprehensive training program to address succession planning, and increase the budget for tuition reimbursement, thereby allowing employees to complete the necessary certifications and education required to advance through the ranks.

Recommendation 8. Move the OCSD station housing closer to the apparatus room.

Recommendation 9. Install a sealed door and/or wall to separate the office and living quarters from the apparatus room and turnout storage areas.

Recommendation 10. Assess the living quarters to determine if creating separate quarters for female firefighters is feasible.

Recommendation 11. Allocate appropriate funding to repair and/or upgrade the station alerting systems and the existing phone system.

Recommendation 12. Request proposals from local vendors, as well as the City of Grover Beach, to perform minor repairs and regular maintenance on agency vehicles.

Recommendation 13. Strengthen interagency relationships and collaboration between FCFA personnel and member agencies.

Recommendation 14. Develop an equipment replacement fund for all mission critical equipment and apparatus.

Recommendation 15. Develop a comprehensive policy and procedures manual, building upon efforts currently underway.

Recommendation 16. Assess the viability and potential of a revenue enhancement measure to adequately finance the operational and capital needs of the FCFA.

Recommendation 17. Restructure the FCFA Board to consist of either a five-member or three-member board.

Recommendation 18. Reorganize the reporting relationship of the fire chief and have that position report directly to either one or both city managers.

Agenda Item No. 12

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 28, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Second Reading and Adoption of an Ordinance to Repeal Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) and Adding a New Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code

RECOMMENDATION
Conduct a public hearing for the second reading and adoption of an Ordinance to repeal Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) and Adding a New Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code.

BACKGROUND:

On July 7, 1997, the City Council adopted Ordinances 97-11, repealing existing purchasing ordinances and adopting a new Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) of Article II (Administration) of the Grover Beach Municipal Code, which established the rules and regulations for purchasing within the City. (See Attachment 1 –Ordinance 97-11). That same year, the City developed a Purchasing Procedures Manual to detail procedures and internal controls to be followed by City departments.

Since that time, no changes have been made to the City’s purchasing procedures including the approval thresholds and the existing code is out of date and inconsistent with State codes.

In 2022, staff began the process of developing an updated Purchasing Policy seeking input from multiple departments, including Administrative Services and Public Works along with the City Attorney. Staff also looked at purchasing policies of other agencies and researched current State codes. After considering these sources of information, staff developed an updated Purchasing Policy to replace the outdated code sections and be incorporated by reference upon approval of this Ordinance by the City Council. (See Attachment 2 – New Ordinance and Attachment 3 – Purchasing Policy).

The new Policy better defines purchasing authority within the City and provides updated purchasing approval thresholds to improve the efficiency and timing of purchasing actions and provide purchasing procedures to guide staff. The Policy also defines rules and procedures for the use of City credit cards, business tax certificate requirements, contract management and disposal of surplus property. Additionally, the policy authorizes the City Manager to approve future administrative changes to the Policy, including changes to processes and procedures, but not including changes to purchasing authority or approval thresholds, which will still require City Council approval.

Staff Report: Second Reading and Adoption of Purchasing Ordinance Page 2 August 28, 2023
The Policy’s updated purchasing approval thresholds are depicted in the charts below. Acronyms referenced in the charts include RFB (Request for Bids), RFP (Request for Proposals), and PO (Purchase Order).

Purchases of Supplies, Materials, Equipment and General Services:

Purchase Amount Bid Process Approval Authority
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 Informal Quotes
Process
Department Head approves invoice or PO
$50,001-$100,000 RFB Process City Manager approves
More than $100,000 RFB Process City Council approves contract Purchases for Public Projects:

Purchase Amount Bid Process Approval
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 RFB/ RFP Process Department Head or designee approves invoice
$50,001-$100,000 RFB/RFP Process City Manager approves PO $100,001-$200,000 RFB/RFP Process City Council approves contract More than $200,000 RFB/RFP Process City Council approves project concept prior to bidding process and resulting contract
Purchases for Certain Professional Services (such as engineering and architectural services):

Purchase Amount Bid Process Approval
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 Informal Quotes
Process*
Department Head approves PO
$50,001-$100,000 Informal Quotes
Process*
City Manager approves PO
More than $100,000 RFB/RFP Process City Council approves contract On-Call Consultant Services (previously approved firms for design and geotechnical services):

Purchase Amount Bid Process Approval
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 Proposals from Oncall ConsultantsDepartment Head approves PO $50,001-$400,000 Proposals from Oncall ConsultantsCity Manager approves PO More than $400,000 Proposals from Oncall ConsultantsCity Council approves * Approval threshold previously approved by Council related to infrastructure projects Staff Report: Second Reading and Adoption of Purchasing Ordinance Page 3 August 28, 2023
Under the policy, a purchase approver listed above may also amend a contract or approve a change order in an amount not to exceed 20% of the original contract amount without approval from the higher purchasing authority. This action is dependent upon the original contract being within the approver’s authority and that the amendment does not materially change the scope of services.

FISCAL IMPACT
There is no fiscal impact related to approval of the purchasing policy.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Conduct a public hearing for the second reading and adoption of an Ordinance to repeal Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) and Adding a New Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code; or 2) Provide alternative direction to staff.

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

Attachments

1. Original Ordinance 97-11

2. New Ordinance

3. Purchasing Policy
) )
ORDINANCE NO. 97-11

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH REPEALING ARTICLE II, CHAPTER 8, AND ENACTING STANDARDS FOR THE

PERFORMANCE OF PUBLIC PROJECTS,

THE PURCHASE OF SUPPLIES AND EQUIPMENT AND CONTRACTING FOR SERVICES THE CITY COUNCIL OF THE City of Grover Beach DOES ORDAIN AS FOLLOWS:

Part I. Chapter 8 of Article II of the Grover Beach Municipal Code is repealed.

Part 2. Chapter 8 of Article of the Grover Beach Municipal Code is enacted to read as follows:

CHAPTER 8 - PERFORMANCE OF PUBLIC PROJECTS;
PURCHASE OF SUPPLIES AND EQUIPMENT; CONTRACTING FOR SERVICES PART 1- GENERALLY
Sec. 2800.2. (A) This article provides procedures for the performance of public projects, the purchase of supplies and equipment, and contracting for services.
(B) As used in this article, "Purchasing Agent" means the City Manager or employee designated as purchasing agent by the City Manager.
(C) The provisions of this article shall not apply to the extent that they conflict with any applicable State or federal laws or regulations or the terms and conditions of any grant, contract, gift or bequest otherwise consistent with law.

PART 2 - PUBLIC PROJECTS
Sec. 280 I. Uniform Public Construction Cost Accounting Act. The City has elected to become subject to the Uniform Public Construction Cost Accounting Act (Public Contract Code section 22000 et seq.) in the performance of public projects. The procedures contained in this division are intended to implement and be consistent with such Act.

Sec. 2802. Definitions. (A) "Public project" means any of the following:
(I) Construction, reconstruction, erection, alteration, restoration, improvement, demolition and repair work involving any facility owned, leased or operated by the City. (2) Painting or repainting any facility owned, leased or operated by the City. (3) The construction, erection, improvement or repair of dams, reservoirs, powerplants and electrical transmission lines of 230,000 volts and higher that are part of a utility system owned by the City.
(B) "Public project" does not include maintenance work. "Maintenance work" means any of the following:
(1) Routine, recurring and usual work for the preservation or protection for its intended purposes of any facility owned or operated by the City.

Attachment 1
) )
(2) Minor repainting.
(3) Resurfacing at less than one inch deep of streets and highways. (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems. (5) Work performed to keep, operate and maintain water, power or waste disposal systems owned by the City, including, but not limited to, dams, reservoirs, powerplants and electrical transmission lines of230,000 volts and higher.
(C) "Facility" means any of the following:
(1) Any plant, building, structure, ground facility, real property, street, highway or other public work improvement.
(2) Any utility system owned by the City, subject to the limitation found in subdivision (a) (3) of this section.

CD) "Force account" means work performed on public projects using internal resources, including, but not limited to' labor, equipment, materials, supplies and subcontracts of the City.

Sec. 2803. Contracting Procedures: Dollar Amount Limitations. (A) Public projects of $25,000 or less may be performed by force account, by negotiated contract, or by purchase order. The director of the department in charge of the project is authorized to determine how and by whom the project shall be performed and to execute any contract or purchase order for the project and to execute any change order thereto if that change order, together with the amount of the original contract or purchase order and any previous change orders thereto, does not exceed $25,000. Any change orders exceeding such total amount shall be submitted for approval by the City Council. All contracts, purchase orders and change orders shall be in a form approved by the City Attorney. (B) Public projects from $25,000.01 to $75,000 shall be contracted for pursuant to the informal bidding procedures contained in section 2805.
(C) Public projects of more than $75,000 shall be contracted for pursuant to the formal bidding procedures contained in section 2805.
(D) It shall be unlawful to split or separate any project into smaller work orders or projects for the purpose of evading the provisions of this division requiring work to be done by contract after competitive bidding.

Sec. 2804.Lists of Contractors and Trade Journals. (A) The purchasing agent shall develop and maintain a list of contractors, identified according to categories of work, in accordance with criteria determined by the California Uniform Construction Cost Accounting Commission. (B) The purchasing agent shall maintain a list of the construction trade journals, as determined for San Luis Obispo County by the California Uniform Construction Cost Accounting Commission, that are to receive mailed notice of all informal and formal construction contracts being bid for work within San Luis Obispo County.

Sec. 2805.Informal Bidding Procedures. (A) When a public project from $25,000.01 to $75,000 is to be contracted for, the purchasing agent shall mail a notice inviting informal bids to all contractors on the list for the category of work being bid, to all construction trade journals on the list, and to such other contractors and trade journals as may be requested by the department in charge of the project. However, if a product of service essential to the project is proprietary and can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent only to such contractor or contractors.
(B) . All mailing of notices inviting informal bids shall be completed not less than 10 calendar days before bids are due.
) )
(C) The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and shall state the time and place for the submittal of bids.
(D) The purchasing agent and the director of the department in charge of the project are each authorized to award and execute contracts for public projects of $75,000 or less or to reject all bids and to execute any change order to such a contract if that change order, together with the amount of the original contract and any previous change orders thereto, does not exceed $75,000. Any change orders exceeding such total amount shall be submitted for approval by the City Council. (E) If all bids received are in excess of $75,000, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract at $80,000 or less to the lowest responsible bidder, if the City Council determines that the City's cost estimate was reasonable. (F) If no bids are received, the project may be performed by force account or by negotiated contract.
(G) All contracts and change orders shall be in a form approved by the City Attorney.

Sec. 2806. Formal Bidding Procedures. (A) The City Council shall approve plans, specifications and working details for all public projects of more than $75,000. (B) When a public project of more than $75,000 is to be contracted for, the purchasing agent shall prepare a notice inviting formal bids, which shall distinctly describe the project and state the time and place for receiving and opening sealed bids.
(C) At least 14 calendar days before the date of opening the bids, the purchasing agent shall publish the notice in a newspaper of general circulation, printed and published in the City. At least 30 calendar days before the date of opening the bids, the purchasing agent shall mail the notice to all construction trade journals on the list referred to in subsection (b) of section 2804. The purchasing agent may also give such other notice as the purchasing agent or the director of the department in charge of the project deems proper.
(D) The purchasing agent may reject any bids received. If, after the first invitation of bids, all bids are rejected, the purchasing agent may, after reevaluating the cost estimates for the project:
(1) Abandon the project;
(2) Readvertise for bids; or
(3) Request that the City Council adopt a resolution by a four-fifths vote, declaring that the project can be performed more economically by City employees. If such a resolution is adopted, the purchasing agent may have the project done by force account.
(E) The purchasing agent shall award any contract to the lowest responsible bidder and is authorized to execute such contract.
(F) If no bids are received, the project may be performed by negotiated contract or by City employees by force account.
(G) The director ofthe department in charge of the project is authorized to execute any change order to a contract awarded pursuant to subsections (e) or (f) of this section, provided the change order does not exceed the total amount of the original contract and any previous change orders thereto. Any change order exceeding such total amount shall be submitted for approval by the City Manager. (H) All contracts and change orders shall be in a form approved by the City Attorney.

Sec. 2807. Same-Bid Bonds. All sealed bids submitted pursuant to section 2806 must be accompanied by a bid security in an amount equal to at least 10 percent of the amount bid. A bid shall not be considered. unless one of the forms of bid security specified in Government Code section 20170 is enclosed with the bid. If the successful bidder fails to execute the contract, the amount of the bidder's security shall be forfeited to the City, except as provided in Government Code sections 20173 and 20174. ) )
Sec. 2808. Performance and Payment Bonds. The purchasing agent or departmental director awarding a contract pursuant to section 2805, and the purchasing agent awarding a contract pursuant to section 2806, may require a faithful performance bond and shall require a payment bond in an amount equal to at least one-half of the amount of the contract. Such bonds shall be issued by an admitted surety insurer and be in the form of a bond, not a deposit in lieu of a bond.

Sec. 2809. Emergencies; Procedure. (A) In cases of great emergency, including, but not limited to, states of emergency defined in section 8558 of the Government Code, when repair or replacements are necessary to permit the continued conduct of the operation or services of the City or to avoid danger to life or property, any public facility may be repaired or replaced, pursuant to the procedure set out in subsection (b), without adopting plans, specifications, strain sheets or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the City Council, by contract, or by a combination of the two.
(B) By majority vote, the City Council may declare an emergency and authorize the repair or replacement ofa public facility, as described in subsection (a). If the City Council is not in session, the City Manager may take such actions, subject to confirmation by the City Council, by a four-fifths vote, at its next meeting.

PART 3 - PURCHASE OF SUPPLIES AND EOUIPMENT
Sec. 2810. Authority to Purchase. Supplies and equipment may be purchased for the City by the purchasing agent and by such other City officers and employees.

Sec. 2811. Purchase Orders and Contracts. Purchases of supplies and equipment shall be made only by purchase order or by contract in a form approved by the City Attorney. The purchasing agent or the City officer or employee making the purchase is authorized to execute the purchase order or contract on behalf ofthe City.

Sec. 2812. Bids Required. Except when the commodity can be obtained from only one source, bids shall be obtained for all purchases of supplies or equipment of $1 ,000 or more, in accordance with such procedures as the City Council may adopt by resolution.

Sec. 2813. Emergencies. If the City Council or the City Manager declares that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property, the City Council or the purchasing agent may expend any sum required to purchase supplies and equipment in the emergency without complying with section 2805.

PART 4 - CONTRACTING FOR TRADE SERVICES AND PROFESSIONAL SERVICES Sec. 2814. Definitions. (A) "Trade services" are services other than professional services. (B) "Professional services" are services and advice rendered by a specially trained and experienced person, firm or corporation in financial, economic, accounting, architectural, landscape architectural, engineering, environmental, land surveying, construction project management, legal or administrative matters.

Sec. 2815. Purchase of Trade Services. Trade services may be purchased for the City by the purchasing agent or by other City officers and employees in accordance with procedures adopted by resolution of the City Council.
) )
Sec. 2816. Purchase of Professional Services. Professional services may be purchased for the City by the purchasing agent or by other City officers and employees in accordance with procedures adopted by resolution of the City Council. However, procedures for contracting for certain professional services are provided in division 5 of this article.

Sec. 2817. Purchase Orders or Contracts Required. (A) Every purchase of trade services shall be by purchase order or by contract in a form approved by the City Attorney. (B) Every purchase of professional services shall be by contract in a form approved by the City Attorney.
(C) The purchasing agent or the City officer or employee making the purchase of trade services or professional services is authorized to execute the purchase order or contract on behalf ofthe City.

PART 5 - CONTRACTING FOR CERTAIN PROFESSIONAL SERVICES
Sec. 2818. Purpose. The purpose of this part is to ensure that certain professional services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City and to ensure maximum participation by small business firms.

Sec. 2819. Definitions. (A) As used in this part, "services" means architectural, landscape architectural, engineering, environmental, land surveying and construction project management services rendered by private persons or firms, as such services are defined by section 4525 of the Government Code. (B) As used in this part, "small business firms" means those businesses so defined by the California State Director of General Services pursuantto section 14837 of the Government Code.

Sec. 2820. Applicability. This part shall not apply when the person or body selecting the services determines that the services needed are more of a technical nature and involve little professional judgment and that requiring bids would be in the public interest.

Sec. 2821. Basis for Selection. Persons and firms shall be selected to render services to the City on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required.

Sec. 2822. Actiyities Prohibited. (A) In contracting for services, no person shall engage in practices that might result in unlawful activity including, but not limited to, rebates, kickbacks or other unlawful consideration.
(B) If a City employee has a relationship with a person or business entity seeking a contract for services, and such relationship would subject the employee to the prohibition of section 87100 of the Government Code, such employee shall not participate in the process of selecting the contractor for those services. Section 87100 of the Government Code provides that no public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest.

Sec, 2823. Procedure. (A) Requests for proposals for services may, but need not, state the amount that has been budgeted for the services. However, requests for proposals for services shall prohibit proposers from providing information as to the cost at which they would provide services. (B) Requests for proposals for services shall require proposers to provide information as to their professional experience and qualifications. In addition, requests for proposals for construction project management services shall require proposers to provide evidence that the person or firm and its personnel carrying out onsite responsibilities have expertise and experience in construction project ) )
design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost-benefit analysis, claims review and negotiation, and general management and administration of a construction project.
(C) City staff shaH make reasonable efforts to make small business firms located in San Luis Obispo County aware of requests for proposals issued by the City for services provided by such firms. (D) City staff shaH determine the best qualified proposers and rank them accordingly. Rankings shall be based on responses to the request for proposals and on any interviews with the proposers that City staff may conduct. Interviews need not be conducted if City staff has sufficient information from the responses to the request for proposals to determine rankings. (E) City staff shaH negotiate for a contract with the first ranked person or firm at a compensation that City staff determines is fair and reasonable to the City. If City staff is unable to negotiate a satisfactory contract with the first ranked person or firm, City staff shaH notity such person or firm in writing that negotiations are terminated and shall begin negotiate with the second ranked person or firm, and so on in order of the rankings. If City staffis unable to negotiate a satisfactory contract with the second and third ranked person or firm, City staff may enter into negotiations with additional persons or firms in the order that they are ranked, pursuant to the same procedure, until a satisfactory agreement is reached, or may notity all remaining proposers that no additional negotiations will be entered into. In such case, City staff may issue a new request for proposals or perform the services with City employees.

Sec. 2824. No Obligation to Contract. Every contract for services must be awarded pursuant to this part.

However, nothing in this part shall require City staff to enter into any contract for services with any person or firm.

PART 6 - ADDITIONAL PROCEDURES
Sec. 2825. Purchasing Manual. The purchasing agent shall develop and maintain a purchasing manual that provides detailed procedures for compliance with City ordinances and resolutions and State and federal laws applicable to purchasing and contracting.

Within fifteen days after passage, the City Clerk shall cause this ordinance to be published one time in a newspaper of general circulation, published and circulated in the City. Ordinance No.97-l1 was first read on July 7, 1997 and finally adopted on July 21, 1997, to become effective thirty days thereafter.

On motion by Council Member Arnoldsen, second by Council Member Santos and on the following roll- . call vote, to wit:

AYES:

NOES:

ABSENT:

Arnoldsen, Santos, Gates, Keith, Mayor Reed
None
None
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A~ ~" ~·.L;S'l':
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APPROVED AS TO FORM:
~~ ES F. RUPP, CITY ARNEY
ORDINANCE NO. 23______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, REPEALING OF CHAPTER 8 (PERFORMANCE OF PUBLIC PROJECTS; PURCHASING OF SUPPLIES AND EQUIPMENT; CONTRACTING

FOR SERVICES), OF ARTICLE II (ADMINISTRATION) AND ADDING A NEW SECTION 2800 OF CHAPTER 8 (PURCHASING POLICY) OF ARTICLE II (ADMINISTRATION) OF THE GROVER BEACH MUNICIPAL CODE
WHEREAS, the City of Grover Beach (“City”) is a General Law city organized pursuant to Article XI of the California Constitution; and
WHEREAS, this Chapter may be referred to as the “Purchasing Policy” and is adopted pursuant to the authority identified in this ordinance, including Government Code Sections 37103, 37350 et seq., 53060, and 54201 et seq., as well as the police power set forth in Article XI, Section 7 of the California Constitution; and
WHEREAS, This Ordinance applies to contracts for the procurement of goods, services, construction, and professional services entered into by the City and it shall apply to every expenditure of public funds by the City for public purchasing irrespective of its source, except as otherwise provided by State law, State regulation, City ordinance or administrative policy, and WHEREAS, it shall not be applied to purchases by elected officials not statutorily required to purchase in compliance with City policies or for whom purchases are not made by the City; and WHEREAS, when the procurement involves the expenditure of State or Federal assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory State and/or Federal law. This ordinance does not apply to the procurement of legal services; and
WHEREAS, the Purchasing Policy, is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 because the approval of the Purchasing Policy will not result in a direct or indirect physical change in the environment and does not involve an irrevocable commitment of resources by the City.

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

PART 1. Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services), of Article II (Administration) is hereby repealed in total.

PART 2. A new Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) is hereby added as follows:

Attachment 2
Ordinance No. 23-__ Page 2
Chapter 8 – Purchasing Policy
Sec. 2800. The Purchasing Policy shall represent the procedures for the procurement of goods, services, construction, and professional services entered into by the City and it shall apply to every expenditure of public funds by the City for public purchasing irrespective of its source, except as otherwise provided by State law, State regulation, City ordinance or administrative policy. The Purchasing Policy Dated July 24, , 2023, and entitled “City of Grover Beach Purchasing Policy, Version no. 1” is hereby incorporated by reference as if set out in full and adopted by the Council establishing the purchasing procedures for the City which shall be implemented consistent with the provisions within the Purchasing Policy.

PART 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held invalid by a court of competent jurisdiction, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, be declared invalid.

PART 4. All ordinances and parts of ordinances in conflict with those sections amended or added herein are hereby repealed.

PART 5. Effective Date. This Ordinance shall not become effective and in full force and effect until 12:01 a.m. on the thirty-first day after its final passage. However, within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.

INTRODUCED at a regular meeting of the City Council held on July 24, 2023 and PASSED, APPROVED, and ADOPTED by the City Council on August _____, 2023, on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________

KAREN BRIGHT, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
Approved as to Form:
_____________________________
DAVID P. HALE, CITY ATTORNEY
** D R A F T **
City of Grover Beach
Purchasing Policy, Version No. 1
As Approved by City Council Resolution 2022-XX
Date:

July 24, 2023
Attachment 3

TABLE OF CONTENTS

CONTENTS
SECTION 1 – OVERVIEW......................................................................................................... 2

1.1 Introduction.................................................................................................................. 2

1.2 Purchasing System...................................................................................................... 2

1.3 Types of Purchases ..................................................................................................... 2 SECTION 2 – PURCHASING AUTHORITIES/RESPONSIBLITIES ........................................... 3

2.1 General Authority......................................................................................................... 3

2.2 Grant Funding.............................................................................................................. 4 SECTION 3 – PURCHASING PROCESS .................................................................................. 5

3.1 Permitted Purchasing Methods .................................................................................... 5

3.2 Purchase Requisitions/Purchase Orders...................................................................... 5

3.2.1. Blanket Purchase Orders/Standard Goods Contracts..........................................................5 SECTION 4 – PURCHASING BIDDING AND APPROVAL THRESHOLDS ............................... 6

4.1 Supplies, Materials, Equipment and General Services................................................. 6

4.2 Public Projects ............................................................................................................. 7

4.2 Purchases of Certain Professional Services................................................................. 8

4.3 On-Call Consultant Services ........................................................................................ 9

4.4 Contract Amendments and Change Orders ................................................................. 9 SECTION 5 – BIDDING PROCEDURES ................................................................................... 9

5.1 Request for Bids (RFB)................................................................................................ 9

5.2 Request for Proposals (RFP)....................................................................................... 9

5.3 Request for Qualifications (RFQ) ................................................................................10

5.4 Informal Quotes ..........................................................................................................10

5.5 Bidding Criteria ...........................................................................................................10 SECTION 6 – NO-BID PURCHASING ......................................................................................11

6.1 Low-Cost Purchasing..................................................................................................11

6.2 Sole Source Purchasing .............................................................................................11

6.3 Emergency Purchasing...............................................................................................11

6.4 Cooperative Agreement Purchasing ...........................................................................12

6.5 Routine Expenditures for Utilities, Payroll and Other Services ....................................12 SECTION 7 – CREDIT CARD CHARGES ................................................................................12

7.1 Credit Card Issuance ..................................................................................................12 1 SECTION 8 – BUSINESS TAX CERTIFICATE REQUIREMENT ..............................................14

8.1 Requirement ...............................................................................................................14

8.2 Exceptions ..................................................................................................................14 SECTION 9 – PAYMENT OF INVOICES ..................................................................................15

9.1 Receipt of Goods and Services...................................................................................15

9.2 Invoice Process ..........................................................................................................15 SECTION 10 – CONTRACT MANAGEMENT ...........................................................................15

10.1 Responsibilities...........................................................................................................15

10.2 City Attorney Approval ................................................................................................15

10.3 Execution....................................................................................................................16

10.4 Control of Contract......................................................................................................16 SECTION 11 – DISPOSAL OF SURPLUS PROPERTY ...........................................................16

11.1 General.......................................................................................................................16

11.2 Value Exceeding $5,000................................................................................................16

11.3 Value of $5,000 or Less ..............................................................................................16

11.4 Donations to Other Agencies .........................................................................................17 SECTION 12 – DEFINITIONS...................................................................................................17

11.1 Capital Asset...............................................................................................................17

11.2 Force Account.............................................................................................................17

11.3 Job Order Contract .....................................................................................................17

11.4 Public Project..............................................................................................................17

11.5 Sole Source Purchase ................................................................................................17

11.6 Surplus Property .........................................................................................................18

ATTACHMENTS
A Emergency Purchasing and Disaster Policy .............................................................. 18 B Credit Card Agreement..............................................................................................22 2 SECTION 1 – OVERVIEW

1.1 Introduction
The purpose of this chapter is to guide City of Grover Beach employees in purchasing goods and services on behalf of the City by establishing responsibilities and authorization levels, outlining statutory requirements, and setting forth the policies and procedures that govern purchasing activities.

These guidelines are not intended to address every issue, exception or contingency that may arise in purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources. Any questions about purchasing activities or proper purchasing process should be referred to the Administrative Services Department.

Definitions for certain terms in this policy are included in Section 11 of this policy.

1.2 Purchasing System
Chapter 8 of Article II of the City of Grover Beach Municipal Code (GBMC), which incorporates these Policies (this Purchasing Policy) and the policies and procedures set forth in this chapter shall govern the City’s purchasing system, in addition to applicable sections of the Public Contracting Code to the extent the act preempts local regulations governing public works contracts (see California Public Contract Code Sections 20100, et. seq.). This system has been developed to achieve the following objectives:
• Secure goods and services at the lowest cost possible commensurate with quality requirements and the City’s needs;
• Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City;
• Ensure appropriate levels of competition and provide equal opportunities for all qualified vendors;
• Standardize procedures where appropriate to achieve consistency in purchasing practices in adherence to City policies and goals;
• Coordinate citywide purchasing for commonly used items.

1.3 Types of Purchases
The type of purchase and the estimated cost of the purchase determine the formality of the process by which the purchase shall be made. The City has identified three basic types of purchases:
• Purchases of Supplies, Materials, Equipment and General Services. Purchases or contracts for supplies and equipment, as well as operating and maintenance services.
• Purchases for Public Projects. Purchases for public projects, as defined by Public Contracting Code Section 20161 (generally, contracts for construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work, including painting of any facility owned, leased or operated by the City and street or sewer work).
3 • Purchases for Certain Professional Services. Professional work provided to the City by specially trained and experienced individuals or firms regarding engineering, planning, architectural, landscape architectural, environmental, land surveying and construction project management.
• Purchases for Services from On-Call Contractors. Purchases of consultant services, made from a list of contractors deemed most qualified via a competitive Request for Statement of Qualifications process and approved by Council. On-call lists must be approved by Council at least every three years.

SECTION 2 – PURCHASING AUTHORITIES/RESPONSIBLITIES

2.1 General Authority
The Table below demonstrates the City’s purchasing authorities and responsibilities:

City Council • Adopt purchasing ordinance
• Adopt resolution to approve
purchasing policy
• Approve changes to the
purchasing policy involving
purchasing thresholds or
authorities
• Approve purchases as required
under Section 4 of this policy
• Delegate authority to City
Manager/staff for purchases within
certain cost thresholds and
approved budget
City Manager • Ensure implementation of
purchasing policies
• Approve administrative changes to
the policy, including changes to
processes and procedures, but
not including changes to
purchasing thresholds or authority.
• Serve as or designate “Purchasing
Agent”
• Award contracts as specified in
Section 4 of this policy
Administrative Services Director (or
designee)
• Develop and implement
purchasing policies and
procedures
4 • Review purchases and contract
awards for compliance with
purchasing policy
• Assist departments in
development of solicitations
• Create, manage and maintain
Blanket Purchase Orders
City Engineer • Approve specifications for public
projects
Public Works Director • Approve Job Order Contract task orders for public projects
Department Heads • Review and approve departmental
purchases and contracts as
specified in Sections 4 and 10
• Approve invoices or payment
requests for departmental
purchases
• Delegate purchasing authority to
department employees as
appropriate
IT Manager • Review all purchases of citywide
or departmental technology
systems, applications, software or
hardware for recommendation on
purchase
Authorized Employees • Purchase, receive and pay for
items in accordance with City
guidelines
• Review (and approve if delegated
by the Department Head) invoices
or payment requests for
departmental purchases

2.2 Grant Funding
Federal, State or other grant programs may require additional conditions that are more stringent than the City’s procedures. It is the responsibility of the department accepting the grant to ensure all grant provisions are complied with. Departments should adhere to Part 200 – Uniform Administrative Requirements for Federal Grants, including the 5 Section 200.318 general procurement standards, which can be found here:
https://www.ecfr.gov/current/title-2/part-200.

SECTION 3 – PURCHASING PROCESS

3.1 Permitted Purchasing Methods
Departments may use three methods to purchase goods and services: Purchase Order/Contract, City Credit Card and Emergency Purchases. The table below summarizes the dollar thresholds and requirements for each method. Note that work may be performed by Force Account, or with internal resources, if the Department Head determines internal resources have the needed ability/expertise and the total cost is less than $25,000.

Purchase Type Dollar Threshold Requirements
Contract/Purchase
Requisition/ Purchase
Order**
Within approved
budget
Must obtain all approvals as required by
Section 4
Credit Card Up to $5,000* Not permitted for purchases for services or Capital assets. Only employees
authorized by Department Heads may
make credit card purchases.

Emergency Purchase Within Budget* for
a General
Emergency
For a Proclaimed
Emergency or
Disaster, refer to
Attachment B
Only permitted if there is an immediate
and serious need that cannot be met
through normal purchasing procedures
that would seriously threaten the
functioning of City government, the
preservation of property or the health
and safety of any person consistent with
approved emergency declaration. All
emergency purchases must be reported
to the Administrative Services
Department as soon as is practicable.
* Limit/amount may be raised with City Manager approval ** Purchase Requisitions and Purchase Orders are not required, pending a new financial system

3.2 Purchase Requisitions/Purchase Orders

3.2.1. Blanket Purchase Orders/Standard Goods Contracts. The Administrative Services Department shall develop contracts and/or Blanket Purchase Orders with vendors for frequently purchased goods. The Administrative Services 6 Department shall maintain a list of citywide contracts and Blanket Purchase Orders for these purchases. City staff must use the City accounts or contracts when making related purchases, unless otherwise authorized by the Administrative Services Department and approved by the City Attorney. [THE REMAINDER OF THIS SECTION IS INTENTIONALLY LEFT BLANK PENDING IMPLEMENTATION OF FINANCIAL SYSTEM]
SECTION 4 – PURCHASING BIDDING AND APPROVAL THRESHOLDS
The required bidding process and level or approvals for any purchase is determined by the type of purchase (see Section 1.3 of this policy) and the cost of the purchase. Most purchases that do not fall within an exception listed in Section 6 of this policy require an informal or formal bidding process (See Section 5 of this policy which defines each bidding process). Note that the buyer for any purchase cannot serve as the approver of that purchase.

4.1 Supplies, Materials, Equipment and General Services The table below summarizes the bidding and approval requirements for purchases of supplies, materials, equipment and general services. Note that all purchases of technology systems, applications, software or hardware must be reviewed by the IT Manager.

Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Informal Quotes
Process*
Department Head
approves invoice or
PO
PO or contract
required
$50,001-$100,000 RFB Process City Manager
approves
PO or contract
required
More than $100,000 RFB Process City Council
approves contract
Contract required;
Contracts must be
reported to the City
Council in quarterly
reports
* Generally, staff should seek at least three quotes. A “no-bid” response may be considered a quote for this purpose. 7 4.2 Public Projects
The table below summarizes the bidding and approval requirements for Public Project purchases. Staff should also consult the Public Contracting Code Guidance provided by the Public Works Department.

Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 RFB RFP Process Department Head or
designee approves
invoice
PO or contract
required
$50,001-$100,000 RFB/RFP Process City Manager
approves PO
Contract or PO
required
$100,001-$200,000 RFB/RFP Process City Council
approves contract
Contract required
More than $200,000 RFB/RFP Process City Council
approves project
concept prior to
bidding process and
resulting contract
Contract required
8 4.2 Purchases of Certain Professional Services
For purchases of certain professional services, as defined in Section 1.3 of this policy, persons or firms must be selected on the basis of demonstrated competency and professional qualifications necessary for the performance of the services required and proposers must provide information about the cost of services under separate cover. The table below summarizes the bidding and approval requirements for each type of service under this section.

Purchase
Amount
Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Informal Quotes
Process*
Department Head
approves PO
PO or contract
required
$50,001-$100,000 Informal Quotes
Process*
City Manager
approves PO
Contract required
More than $100,000 RFB/RFP Process City Council
approves contract
Contract required
* Generally, staff should seek at least three quotes. A “no-bid” response may be considered a quote for this purpose. 9 4.3 On-Call Consultant Services
The table below summarizes the bidding and approval requirements for purchases of on-call consultant services, as defined in Section 1.3 of this policy.

Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Proposals from Oncall Consultants
Department Head
approves PO
Contract required
$50,001-$400,000 Proposals from Oncall Consultants
City Manager
approves PO
Contract required
More than $400,000 Proposals from Oncall Consultants
City Council
approves
Contract required

4.4 Contract Amendments and Change Orders
A purchase approver may amend a contract or approve a change order in an amount not to exceed 20% of the original contract amount without approval from the higher purchasing authority, provided that the original contract was within the approver’s authority, as noted in this Section 4, and the amendment or change order does not materially change the scope of services.

SECTION 5 – BIDDING PROCEDURES
For purchases that require a bidding process as shown in Section 4 of this policy that do not fall within the exceptions listed in Section 6 of this policy, staff must engage in one of the following competitive bidding processes describe below.

5.1 Request for Bids (RFB)
An RFB is a request to vendors to submit an offer or quote for specific, defined goods, products or construction. An RFB should be used when seeking a fixed price for goods with known specifications (e.g. Dell XPS 13 laptops). RFBs are used for Construction of Public Projects and when setting up a Job Order Contract (defined in Section 11 of this Policy). RFBs must be posted on the City’s designated solicitation site along with other desired noticing.

5.2 Request for Proposals (RFP)
An RFP is a request to vendors to submit a proposal for goods or services for which the exact specifications or methodology of providing the desired goods or services is not 10 defined. An RFP is generally used for more complex goods or services purchases. RFPs allow for consideration of factors other than price, including the qualifications of the vendor and the vendor’s ability to perform. RFPs must be posted on the City’s designated solicitation site along with other desired noticing.

5.3 Request for Qualifications (RFQ)
An RFQ is a request for a statement of qualifications for a certain class of vendors or consultants. RFQs are used to develop On-call or Master Agreements. RFQs must be posted on the City’s designated solicitation site along with other desired noticing.

5.4 Informal Quotes
When formal bidding is not required by the City’s purchasing policy, staff may seek informal quotes by verbal or written request. An informal or quick quote is a simple request for pricing on simple, low-cost goods or services. Staff should request quotes from at least three vendors, if available. If quotes are sought by verbal or written request, staff must create a quote summary to record the quotations received..

5.5 Bidding Criteria
The table below summarizes the requirements and process for each type of solicitation listed in Sections 5.1 – 5.4 of this policy.

RFB RFP RFQ Informal Quote
Goal Lowest Price Lowest
Responsible
Bidder
Most Qualified Lowest Price
Public Opening
Requirements
Open publicly
and read aloud
Open publicly
and pricing read
aloud
No public
opening.

Qualification
statements
made publicly
available
No public
opening
Evaluation
Process
Select lowest
responsive bid.

No scoring
Responsible
proposals
evaluated and
scored based on
qualifications.

Qualifications
evaluated and
scored (can
have pass/fail
responses). No
cost evaluation.

Select lowest
responsive
quote. No
scoring
Award Basis Lowest
responsive bid
Highest scored
proposal
Highest scored
submittal
Lowest
responsive
quote
11 SECTION 6 – NO-BID PURCHASING

6.1 Low-Cost Purchasing
As noted in the tables in Section 4 of this manual, no bidding process (formal or informal) is required for purchases of less than $5,000.

6.2 Sole Source Purchasing
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or services for more than $5,000 and to select vendors on a competitive basis. However, certain acquisitions in which the products or services may only be obtained from a single source may be purchased without engaging in bidding procedures.

Sole Source purchases must be justified in sufficient detail to explain the basis for suspending the usual competitive procurement process and approved by the Administrative Services Department before such a purchase is made.

Some examples of legitimate sole source purchases include the following:
• Purchases in which only one known source exists or there is no reasonable alternative source for the goods or services as determined by documented research • Purchases in which only one source meets the City’s business needs (e.g., compatibility with existing systems, unique features or services that meet the desired goals of the City, etc.).
• Purchases of proprietary items which only the manufacturer, owner, or designated re-seller is permitted to sell (this includes purchases in which purchasing from a nondesignated seller would result in nullification of manufacturer warranties) • Upgrades to existing systems where purchasing a different solution or product would result in significant additional costs (e.g., data conversion, re-training of staff, new system implementation costs)
• Purchases of services from a contractor with specific and unique knowledge of existing City systems, procedures or historical data that is critical to the project or City goals where use of another contractor would result in significant costs or project delays due to lack of such knowledge.

6.3 Emergency Purchasing
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or services for more than $5,000 and to select vendors on a competitive basis. However, purchases that are required to safeguard and immediate life, health or property interest may be made without a bidding process.

Section 6.3.1 – A purchase qualifies as an Emergency Purchase if all of the following are true:
• The City’s need cannot be met under the time constraints of the normal purchasing process and;
12 • The lack of equipment, goods or services would seriously threaten the functioning of City government, the preservation of property or the health and safety of any person.

Section 6.3.2 – City staff must not use the emergency purchase process to circumvent general purchasing policy or vendor licensing requirements. City staff should seek quotes and determine reasonableness of pricing when making an emergency purchase whenever possible.

Section 6.3.3 – Local Emergency Purchasing. If a local emergency is declared by the City Council, City staff must adhere to the Emergency and Disaster Purchasing Policy (see Attachment B).

6.4 Cooperative Agreement Purchasing
Section 6.4.1 – City staff may use established cooperative agreements involving other public agencies for purchases without a competitive bidding process, if those cooperative agreements were competitively bid. City staff is responsible for researching cooperative agreements to ensure the bidding process complies with City competitive bidding rules.

Section 6.4.2 – City staff should research the pricing for the goods or services being sought and compare the pricing set forth in the cooperative agreement is reasonable. If the pricing set forth in a cooperative agreement is not reasonable, City staff should initiate a competitive bidding process rather than leveraging the cooperative agreement.

6.5 Routine Expenditures for Utilities, Payroll and Other Services Routine expenditures that benefit several departments, such as telephone, utilities, debt service payments, and payroll benefit costs, shall be paid by the Administrative Services Department without the use of a Purchase Order Request. Computer spreadsheets, reports, or other coding information will be sufficient to use as backup documentation.

These procedures may be waived in the event of an emergency if it is in the public interest.

SECTION 7 – CREDIT CARD CHARGES

7.1 Credit Card Issuance
The Administrative Services Department will issue credit cards only to permanent employees who are approved by their Department Head.
13 7.1.1 Limits. Generally, City-issued credit cards shall have a credit limit of $5,000. However, the City Manager may approve an increase of this limit if written justification is provided by the Department Head.

7.1.2 City Business. City credit cards are for official City business only. No personal purchases may be charged to the card. Intentional charging of personal expenses on City credit cards is a misuse of City funds, and a serious breach of the City’s ethics policy. Doing so, even if the intent is to reimburse the City later, will result in disciplinary action, up to and including termination and legal action.

Minor incidental expense as a component part of a larger billing, such as personal calls on a hotel bill, may be allowed if reimbursed at the time the credit card billing is submitted for payment.

7.1.3 Travel Expenses. Credit cards may be used in paying for travel expenses.

However, the City’s Travel Guidelines still apply to all such credit card payments, including the use of Travel Authorizations and per diem amounts.

7.1.4 Gratuities. Generally, purchases with City credit cards may include reasonable gratuities for services for which such gratuities are standard but should not exceed 20 percent of the total cost.

7.1.5 Comply with Rules. City credit cards may not be used to circumvent other purchasing rules in this manual. Additionally, City credit cards may not be used for the following:
• Cash advances, wire transfers, money orders, etc.
• Purchases of items for which the City has contracts (water meters, bulk fuel, etc.) unless it is an emergency situation, and approved by the Approving Official.
• Political or religious organizations.
• Court costs, fines, bail, or bonds.
• Rentals, except for small pieces of equipment to be used for less than a weekin duration or vehicle rentals related to travel.
• Temporary employees.
• Alcoholic beverages and tobacco products.
14 7.1.6 Cardholder Responsibility. Each cardholder is responsible for the security and safe keeping of the credit card and must sign the City’s Credit Card Agreement (See Attachment C – Credit Card Agreement). Cardholders should obtain itemized receipts for every transaction. Cardholders who fail to provide itemized receipts for purchases may be held personally responsible for charges.

If an item is billed incorrectly, the cardholder is responsible for contacting the vendor within 10 days of the transaction. The employee should notify Accounts Payable and should provide all documentation relating to the charge in a timely manner. Accounts payable will contact the bank and will pursue the matter until resolved.

7.1.7 Department Head Responsibility. Department Heads must authorize issuance of credit cards and develop and implement departmental procedures to be sure credit card purchases are approved and forwarded to Administrative Services in accordance with this manual, and in a timely manner. Department Heads must retrieve credit cards from the cardholder if the cardholder fails to adhere to the policies in this manual or separates from City service. When necessary, Department Heads must enforce disciplinary action associated with the misuse of credit cards.

7.1.8 Disciplinary Action. The Director of Administrative Services or authorized designee will notify Department Heads regarding misuse of City credit cards.

Department Heads will be responsible for all disciplinary action surrounding misuse of cards, or abuse of this policy. This will include cancellation of card privileges, and other action as deemed appropriate.

SECTION 8 – BUSINESS TAX CERTIFICATE REQUIREMENT

8.1 Requirement
The City requires most entities doing business within or transacting with the City to obtain a Business Tax Certificate, pursuant to GBMC Section 10202. Therefore, for most purchases, City staff must notify the vendor of the requirement and/or ensure that the vendor has a Business Tax Certificate before making the purchase. Whenever possible, City staff should direct purchases to vendors who already have a valid business license. Staff should contact the Administrative Services Department for a current listing of businesses who have valid Business Tax Certificates.

8.2 Exceptions
• Some businesses are exempt from obtaining a Business Tax Certificate (see GBMC Section 10215). For those businesses that are exempt, staff need not require proof of a Business Tax Certificate to make a purchase. 15 SECTION 9 – PAYMENT OF INVOICES

9.1 Receipt of Goods and Services
Items must generally be shipped to a City address or worksite. If the product will be shipped to an alternate location, this should be cleared through the Administrative Services Department inadvance.

9.2 Invoice Process
Once an invoice is received, staff should verify the goods or services were received in good working order or pursuant to the scope and terms of the contract, when applicable.

Upon verification, the Department should enter all necessary information in the Accounts Payable System provide the following information to the Administrative Services Department:
• That they are authorizing payment (i.e., use stamp)
• The amount that they are authorizing for payment
• The account number(s) that is to be charged
• Include vendor’s W-9 form if not already on file (should be checked with the Administrative Services Department)
• Attach a copy of the contract, if applicable
• Attach invoice/receipt/backup
SECTION 10 – CONTRACT MANAGEMENT
Purchases that require contracts, as noted in Section 4 of this policy, and any contract entered into on behalf of the City must adhere to this Section 10.

10.1 Responsibilities
Contract management is the primary responsibility of the department in charge of the project or services. Prior to requesting bids or proposals, the Department Director shall work with the City Attorney to ensure the contract is in proper legal form and shall ensure the contract is properly executed upon award. The Department Director shall also ensure that payment to contractors or vendors are in accordance with the payment terms and/or schedule within the contract.

10.2 City Attorney Approval

10.2.1 Unless otherwise exempted in this Policy, contracts must be reviewed and approved as to legal effect and form by the City Attorney prior to execution or submittal to the City Clerk for inclusion in the City Council Agenda. .

10.2.3 Templates. If staff uses a City Attorney-approved contract template for the purchase of goods or equipment and no changes are made, additional City Attorney approval and/or signature is not required.
16 10.3 Execution
Whenever possible, contracts that require approval of the City Council should be signed by the contractor prior to being brought before the Council and a copy of the contract shall be included in the Council agenda package submitted to the City Clerk before it is included into the Council agenda package. Contracts should be signed via electronic signature whenever legally permitted. Contracts that are signed by a corporation or any other legal entity other than an individual, should be verified by written delegation of the legal entity the party signing the agreement has authority to do so. The City Attorney can assist with the type and nature of written authority necessary for a binding agreement.

10.4 Control of Contract
The Director of the contracting department shall maintain a copy of each contract and shall provide a copy to the Administrative Services Department. Contracts should be maintained for at least three years from the date of final payment under the contract.

SECTION 11 – DISPOSAL OF SURPLUS PROPERTY
All departments shall notify the Administrative Services Department of existing materials, supplies or equipment that are no longer used or have become obsolete. Departments may sell or dispose of such property under the following Sections.

11.1 General
If disposing of any City property, staff should determine the property’s value and reason for disposal (ie: property is past useful life, property is obsolete or being replaced by updated equipment). Disposal of capital assets must be reported to the Administrative Services Department.

11.2 Value Exceeding $5,000

11.2.1. If the value of the equipment or goods exceeds $5,000, the City must publish a notice in a newspaper of general circulation and shall sell the property using one of the following methods:
(A) A notice inviting formal bids shall be published in a newspaper of general circulation and sale shall be made to the highest bidder. (B) The department may use a third party vendor to auction the items on behalf of the City.

11.2.2. The department may dispose of property with a value exceeding $5,000 only if it is determined to be unusable or if an attempted sale is not successful.

Disposal of such property must be approved by the City Manager.

11.3 Value of $5,000 or Less
If the value of the equipment or goods is $5,000 or less, the surplus property shall be offered to other departments, if feasible. If no other City department claims the property, it must be included in a list prepared by the Administrative Services Department and be 17 sold by informal bids to the highest bidder. If no bids are received or if the property has no resale value, the City Manager may approve the destruction of the property.

11.4 Donations to Other Agencies
If property may properly be donated to another governmental agency, staff shall make arrangements with that agency and notify the Administrative Services Department of property being donated and estimated value. Donations should be made on an “as-is” basis, without any express or implied representations or warranties under applicable law.

11.5 Disposal
Departments shall dispose of property at the City’s Corporation Yard. 11 – DEFINITIONS
For definitions of bidding processes, see Section 5 of this policy.

11.1 Capital Asset
Any asset, tangible or intangible, used in operations that has a service life of more than one year with a cost exceeding $25,000 for infrastructure and $5,000 for all other capital assets.

11.2 Force Account
Use of City assets, equipment or labor of City staff, rather than a contractor.

11.3 Job Order Contract
A competitively bid, fixed price, multi-year construction contract based on established or published unit prices via a unit price book (UPB) or a price list with a multiplier (termed coefficient) applied to the unit prices.

11.4 Public Project
A public project is “construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds . . . For purposes of this paragraph, “construction” includes work performed during the design, site assessment, feasibility study and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work regardless of whether any further construction work is conducted, and work performed during the postconstruction phases, including but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.” (See CA Labor Code Section 1720, CA Public Contract Code Section 20161).

11.5 Sole Source Purchase
A sole source purchase is when the City enters into a contract with a contractor without going through the typical competitive process as required by law because it deems that the contractor is the only source available that can meet the City’s 18 requirements or the purchase complies with the requirements of Section 6.2 of this Policy.

11.6 Surplus Property
Surplus property is tangible property (any property that can be physically relocated) that is no longer of use to any City department because it is obsolete, uneconomical to repair, or valued only for its base contents. Surplus Property may include anything from office supplies and furniture to vehicles and heavy equipment. Surplus property for purposes of this Policy shall not include real property as defined by State law.

EXHIBIT A

EMERGENCY AND DISASTER PURCHASING POLICY
Policy Statement
The City of Grover Beach (City) is a full-service City, providing police, public works, parks and recreation and community development services. As such, it is the City’s responsibility to establish policies for prudent financial oversight and accountability.

The City Council sets legislative financial management policies, as recommended by staff. During declared states of emergency, the City may be required to invoke emergency purchasing practices to maintain core public services. These emergency practices are only authorized when the City Manager, acting in the capacity of the Director of Emergency Services, or the City Council of the City of Grover Beach declares a local state of emergency.

Purpose
When the City of Grover Beach has declared a local state of emergency, any official or employee who is required to purchase materials, supplies or services on behalf of the City for their department shall use purchasing practices set forth in this document until such time as the local state of emergency has been lifted.

This Policy modifies the City’s normal purchasing practices to assure that, in exigent circumstances caused by a proclaimed disaster or emergency, the City is able to acquire the goods and services required to address an immediate threat to health, safety or improved property while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the City is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that City procurements comply with federal regulations applicable to FEMA disaster grant reimbursement.

Definitions
For purposes of this Policy, (a) a proclaimed disaster or emergency exists if (i) the Governor has declared a state of emergency for an area which includes the geographic territory of the City; or (ii) the Chief Executive Officer of the City has declared an emergency in the City; (b) “Exigent Circumstances” are situations in which (i) a disaster or emergency has been proclaimed, and (ii) the public exigency for goods and services required to address an immediate threat to health, safety, or improved property will not permit competitive solicitation.

Emergency and Disaster Purchasing Policy
Disaster purchasing has a number of facets, first emergency spending limits are expanded and authorized by council without the need to obtain their prior approval. There can be individual limits and aggregate limits which give emergency managers the necessary authority to act quickly under exigent circumstances.

The concept of emergency purchases regards purchases made under “crisis” conditions, where there is an immediate threat to health, safety or improved property. When this condition (an immediate threat to health, safety or improved property) exists, the city has wider latitude to do what is necessary to save lives and prevent further damage to improved property. Given this, and operating under the understanding that when an emergency is in place, the City will be in need of supplies, goods and services as quickly as possible, local vendors within the City and County will be contacted first to obtain the quickest possible acquisition to preserve immediate health and safety for the Grover Beach community. This is consistent with the policy directives outlined below.

Section 1 - Delegations of Purchasing Authority in Exigent Circumstances. (a) if the City Manager determines that goods and services must be procured before the City Council is able to assemble and approve purchases, the City Manager has authority, subject to the limitations set forth in sub-paragraphs (a)(i) and (a)(ii), to approve the immediate rental or purchase of any equipment, supplies, services or other items necessary to respond to an immediate threat to health, safety or improved property.
(i) Limits of Single Purchase Authority. The City Manager shall have the authority to make individual purchases up to $250,000 on his or her signature alone. The City Manager shall have the authority to make purchases in excess of $250,000 up to a maximum of $500,000 when countersigned by the Mayor or in the Mayor’s absence countersigned by another council member.
(ii) Limits of Aggregate Purchase Authority. The City Manager shall have the authority to make aggregate purchases up to $500,000 on his or her signature alone. The City Manager shall have the authority to make purchases in excess of $500,000 up to a maximum of $1,500,000 when countersigned by the Mayor or in the Mayor’s absence countersigned by another council member.
(b) Sub-delegation to EOC Coordinator. The EOC Coordinator shall be a designee of the City Manager at any time that the City Manager is not available to approve purchases as allowed in this section. (c) Administrative Procedures: Reporting Requirements.
(i) As soon as possible after purchases are made under this section 1, the City Manager, EOC Coordinator, or department head shall submit to the Purchasing Officer (Administrative Services Director) a requisition and a notation that the commodity has been ordered on an emergency basis from the vendor designated.
(ii) The Purchasing Officer will inform the City Manager and the City Council of any individual purchase under this section with a contract amount greater than $125,000, and also whenever the aggregate of purchases under this section is greater than $200,000 dollars. (iii) The Purchasing Officer will obtain the City Manager's (or EOC Coordinator as the City Manager’s designee) approval prior to any purchase by a department head if the amount is $150,000 dollars or more.
(iv) The Purchasing Officer shall have the authority to approve all disaster related purchases under $150,000 thousand dollars.

(v) The Purchasing Officer will expedite the verification of funds available and complete the preparation of the purchase order.

Section 2 - Procurement Procedures in Exigent Circumstances.

Upon receipt of requisitions under Section 1 above, the Purchasing Officer shall prepare purchase orders for the emergency equipment, supplies, services or other items in accordance with the requirements of this section.
(a) Exempt Purchases. Purchases below $200,000 shall not be required to be formally bid. Purchases greater than $200,000 may be made following the procedures specified in this section. The signature(s) of the City Manager, Purchasing Officer and/or Department Head are still required as provided in Section 1.
(b) Justification of “Sole Source” or “No-bid” Contracts. Where exigent circumstances require immediate procurement from the nearest available source:
(i) the Procurement Officer shall complete a Sole Source Justification Form; (ii) procurement should be limited to that portion of the work that must be performed immediately, allowing subsequent procurement by competitive proposals of the remainder of the work;
(iii) “Sole source” or “no-bid” acquisitions shall be necessary for one of the following reasons:
placement of emergency protective measures; procurement of a scarce commodities, goods, or services; or acquisition or rental of emergency equipment , emergency consulting services, emergency road clearance or other emergency requirements. (c) Provision for Alternate Bid Solicitation Procedures. The City's normal requirements for sealed bids shall not apply to acquisitions under Section 1. However, the Procurement Officer shall conduct telephonic or other electronic bid solicitation from potential vendors or suppliers, in lieu of written and/or sealed bids, in an effort to obtain multiple competitive proposals when and if time allows in light of the exigent circumstances.
(d) Locations of Postings for Requests for Proposals or Solicitation of Bids. The Procurement Officer may waive normal requirements for public posting of requests for proposals or solicitation of bids.

Notices soliciting bids or requests for proposals shall be posted at the Emergency Operations Center or Alternate Emergency Operations Center, if the Primary Emergency Operations Center is not being used.
(e) Length of Time for Posting Requests for Proposals or Solicitation of Bids. The Procurement Officer may shorten the normal bid period to expedite the award of contracts for emergency equipment, goods, or services. The Procurement Officer should seek to assure that the shortened bid period allows multiple suppliers to submit bids.
(f) Number of Bids Required. Solicited bids that are non-responsive shall count towards the minimum numbers of bids required when there is a declared emergency or disaster in the City.

Section 3 - Notification and Ratification
(a) Posting of Contract Awards. Under this section, all contracts awarded that exceed $750,000 shall be presented to the City Council for ratification and shall be publicly posted within sixty (60) days of the award.
(b) Authority to Cancel Emergency Procurements. As a provision of this policy, the City has the absolute authority to rescind a contract for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to perform under the terms of the contract and the resulting delay or non-performance presents an immediate threat to life, safety or improved property. (c) Notification Requirement for Emergency Purchases. For any purchase in excess of $150,000, the City Manager shall report all such purchases to the City Council within thirty (30) days. (d) Requirement for Separate Invoicing. All purchases or rentals made during proclaimed emergency or disaster conditions shall require separate invoicing from routine (non-disaster related) purchases.

All invoices shall state the goods, services or equipment provided and shall specify where the goods or services were delivered and be coded to the designated disaster project code. (e) Auditing of Invoices for Debris Clearance Prior to Payment. All invoices for debris clearance and removal shall be audited by the City prior to payment to the vendor. Vendors shall be notified of this requirement prior to the awarding of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide.
(f) Limitations of Disaster Purchasing Policy. For the purposes of this section, an emergency or disaster shall be deemed to exist when a condition exists that presents an immediate threat to health, safety or improved property and a local emergency or disaster has been proclaimed. Any purchases that do not meet the standard of being necessary for responding to an immediate threat to health, safety or improved property shall follow the City's regular purchasing provisions.

EXHIBIT B

CITY OF GROVER BEACH

CREDIT CARD HOLDER USE AGREEMENT
22 Employee: Department:

The above-named employee (Cardholder) of the City of Grover Beach has been issued a City credit card. The Cardholder has been provided with a copy of the City's purchasing policy, and hereby agrees to comply with all terms and conditions set forth therein, including but not limited to:

1. Official Use Only. City credit cards are for official City use only. Charging personal expenses on City cards is a misuse of City funds and a serious breach of the City’s ethics policy. Doing so—even if the intent is to reimburse the City later—will result in disciplinary action, up to and including termination. Minor incidental expenses as a component part of a larger billing—such as personal telephone calls or video rentals on a hotel bill—may be allowed if reimbursed at the time the credit card billing is submitted for payment.

2. Timely, Accurate and Supported Payments. Credit card payments will be processed on a timely basis, and adequate supporting documentation (such as vendor order forms, receipts, invoices and credit card receipts) will be retained for all charges and attached to payment vouchers.

3. Disputed Charges. The vendor and issuing bank will be notified immediately of any disputed charges.

4. Lost or Stolen Cards. The issuing bank and the Administrative Services Department will be notified immediately of a lost or stolen card. Failure to do so could make the Cardholder responsible for any fraudulent use of the card.

5. Surrender Upon Request or Separation. The credit card will be immediately surrendered upon retirement, termination or upon request of the department head. Use of the credit card for any purpose after its surrender is prohibited.

6. Credit Card Limit. The credit limit of this card is $ .

7. Other Restrictions. .

Cardholder Signature Date
DISTRIBUTION: Original - Cardholder Personnel File Copies - Administrative Services Department, Department Head, Cardholder

RETURN OF CITY CREDIT CARD UPON SEPARATION FROM CITY EMPLOYMENT I HEREBY SURRENDER the credit card issued to me by the City of Grover Beach to the Human Resource Department. I declare that all outstanding charges on the credit card are for official City business and will be paid through established procedures.

Cardholder Date Department Head Date
Agenda Item No. 13

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: August 28, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Rafael Castillo, AICP, Senior Planner
SUBJECT: Short-Term Rental Program Update

RECOMMENDATION
Receive an update on the implementation of the City’s Short-Term Rental Program and provide policy direction to staff on potential revisions to the program.

BACKGROUND
On June 17, 2019, the City Council (Council) adopted a Short-term Rental (STR) ordinance (Attachment 1) that permits owner-occupied and non-owner occupied STRs with established regulatory requirements to minimize potential impacts on surrounding residents in the City. To ensure the ongoing success of the program, City staff committed to regular reviews to identify any deficiencies and areas for policy improvement or refinement. As such, on September 27, 2021, the Council provided policy direction to staff to include the following modifications:
• Modify the Administrative Rules limiting multi-family development to one (1) STR permit. • Establish a minimum stay requirement (12 stays per year) for non-owner occupied STRs. • Create and manage a waitlist for non-owner-occupied permits.

The City currently contracts with a third-party vendor, Host Compliance, who provides rental monitoring, compliance, and enforcement assistance through an online permit portal. The City currently expends $21,760 annually for these services.

Short Term Rental Program Implementation
As of August 7, 2023, the City has issued 119 STR permits. Of those permits, 19 are owneroccupied permits. The remining are “non-owner” occupied permittees. The current STR permit application fee is $326 for a “non-owner” occupied unit, and $273 for an owner-occupied unit. There is an annual renewal fee of $218 and a Business Tax Certificate (BTC) is required for all STR operators.

Of the permitted operators, 97% of permittees have listed their rentals on advertising websites such as VRBO, Airbnb, and Booking. The remaining three percent (3%) of those with permits use referrals to rent to a select number of guests throughout the year. At the end of each month, a permittee has 30 days to submit Transient Occupancy Taxes (TOT) based on the number of nightly stays. The City’s TOT tax is 12% and the San Luis Obispo County Tourism Management District fee is 1.5%. As of January 1, 2023, taxes can only be remitted via Host Compliance and the permit portal. City staff implemented this change to reduce submittal errors and capture data to confirm Staff Report: Short Term Rental Program Update Page 2
August 28, 2023
permittees met the minimum stay requirement. This process improvement has freed up staff resources by automating the TOT process and ensuring revenue collection.

TOT/TDM Collection Activity
City staff has revamped its efforts to ensure timely remittance of taxes with STR permittees. In July 2021, City staff noticed some permittees did not understand that taxes needed to be remitted or were frequently late with payments. Since that time, staff revamped the way it ensures taxes are collected in a timely manner by implementing the following:
• Sending out emails from the City’s STR email account when the TOT/TDM period ends (i.e.

January reporting period ends February 28, emails go out the next day or shortly thereafter) to individuals whom have not made payments.
• Working with Host Compliance to send auto-generated emails five days after the reporting period ends.
• Sending out formal “notice of permit revocation” to permittees that have not remitted TOT/TDM after 90 days.
• During the STR permit renewal period (Typically July 1 through July 31 of each year), staff reviews TOT/TDM payments against the number of reported stays, and flags permit holders to be audited if discrepancies are apparent.

With these changes implemented, certain permittees elected not to renew their permits, or had their permits revoked due to lack of TOT/TDM payments. Out of the 119 permits, on average 96% of permittees remit their required taxes on time. Typically, these overdue reminders prompt overdue taxes to be paid, with a penalty added. Since City staff developed a more robust TOT/TDM capture procedure, a significant reduction of past due TOT/TDM accounts has occurred, with most paying under the 30-day overdue window.

Fiscal impact
Since inception of the STR permits in October 2019 through April 2023, STRs have generated approximately half of the $2.9 million in Transient Occupancy Tax (TOT) revenue to the City, based on the chart below. The permitting, licensing, and operations of these short-term rentals have been a net positive for the City in terms of revenue and on average account for approximately 50% of the total TOT revenue collected by the City..

Fiscal Year TOT Revenue % Increase
2019-2020 $103,540.90 --
2020-2021 $298,915.02 +189%
2021-2022 $508,362.22 +70%
2022-2023 $458,567.07 -10%
Number of Permits Issued
As a part of the original ordinance, a cap was established that differentiated permits between two category types:
• Owner occupied (homestays) versus non-owner occupied (2nd homes, owner not present during stays)
• Location of permits between the coastal zone and non-coastal zone Staff Report: Short Term Rental Program Update Page 3
August 28, 2023
The Council decided the number of “owner occupied” permits could be unlimited. These are defined as rentals with homeowners who are present for a stay, and renting rooms within the home (i.e. a 3-bedroom home, with 2 rooms rented, and the owner remains in the primary bedroom). At this time there are 20 owner-occupied permits issued throughout the city.

The Council capped the number of non-owner-occupied permits based on the location of permits issued. A total of 40 permits in the coastal zone may be issued along with 60 permits in the noncoastal zone. In October 2021, the non-coastal area cap was reached and a waitlist for future applicants established with 46 households currently on this list. The City reached its coastal zone cap in January 2023 of 40 permits with seven households currently on the waiting list. Once a permit is not renewed, canceled, or revoked, staff goes to the waitlist, in order of which requests were received, for permit eligibility. Permits are not transferable if a house is sold with an existing permit.

Non-Owner Occupied Permit Map
Enforcement of Regulations
As a part of the City’s contract with Host Compliance, the vendor provides a 24-hour hotline to receive complaints, directing calls to the Police Department or other City departments. Since the launch of the STR program, the hotline or web form has received a total of 213 complaints which is an average, six complaints are received per month. In comparison, the City of Paso Robles averages approximately four complaints per month for a period between mid-2020 to early 2022 which is on par with the level of complaints in Grover Beach. Anecdotally, while complaints were not tracked in the same way before the STR ordinance was adopted, staff’s observation is that the frequency of complaints have decreased since the ordinance was adopted. Approximately 64% of all complaints associated with 13 permittees, of which 3 permittees, representing 20% of these Staff Report: Short Term Rental Program Update Page 4
August 28, 2023
complaints, are no longer participating in the STR program. City staff works diligently with the permittees to resolve all complaints and provides additional guidance on how to further reduce complaints such as a more robust vetting of potential guests, use of cameras at entrances to the residence to check in on number of guests and guest activities, and empowering property owners to understand their role in compliance and be more “hands on” in managing their properties. Below is a breakdown of the complaints received by type with noise/disturbance the top category.

Administrative Rules (shown in Attachment 2) were created to implement the STR ordinance and establish how to handle complaints. Because of the need for evidence to issue fines, especially those for noise and disturbances, the Administrative Rules provide clarity and expectations to ensure that permittees are responsive to complaints and held accountable for their renters. A few of those requirements include:

1. Requirements for a local contact person to ensure that the local contact understands their role, including staff outreach to the local contact during permit registration.

2. Local contact and/or property owner respond to complaints within 30 minutes of receiving and contact Host Compliance to indicate how the issue was resolved.

3. Local contact person or property owner email staff within 24 hours acknowledging the complaint received, and remedies they took to resolve the issue.

In implementing these Administrative Rules, staff issues one warning if Step #3 is not completed.

After that, a citation for $100 would be issued and a subsequent violation for the same issue within 90 days would result in a $500 citation. A third violation would result in revocation of the STR permit.

With these steps taken, permittees with frequent complaints have modified behaviors and are in quick communication with staff when a complaint is received to avoid fines. City staff has levied the $500 citation on only a few occasions.

Dogs Barking
3%
Follow-Up
8%
Noise
44%
Occupancy Limits
6%
Other
13%
Parking
10%
Trash
9%
Unpermitted STR
7%
COMPLAINT TYPES OCTOBER 2019-JULY 2023
Staff Report: Short Term Rental Program Update Page 5
August 28, 2023
In addition to staff’s oversight and implementation of the STR Ordinance, Host Compliance, provides a snapshot of properties listed on the various vacation rental websites that may be out of compliance with permit requirements. In this case, staff attempts to contact property owners about the rules and regulations pertaining to short-term rentals to correct the violation. There are times where City staff cannot identify unpermitted rentals. Staff reports these listings to the vacation rental platform as “operating outside of local compliance.” Code Compliance coordinates with the Host Compliance platform and attempts to discover these addresses and send out notices immediately.

Generally, City staff receives compliance quickly, however, there have been instances where compliance is not completed in a timely fashion, thereby generating administrative fines.

Potential Revisions with STR Implementation
Overall, staff believes the implementation of the STR ordinance has been a continued success with 119 permits issued, a significant increase in TOT revenue, and relatively low number of complaints.

As part of staff’s commitment to ensure the program continues to succeed and recognizing the importance of fostering responsible tourism while preserving the residential character of neighborhoods, staff has identified potential areas of improvement to address some specific items that have arisen over the last year. Specifically, staff is seeking Council direction on the following items:
• Waitlist Procedures
• Local Contacts
• STRs and ADUs For Existing Permit Holders
• Number of Required Annual Minimum Stays
• Number of Non-Owner-Occupied Permits
Waitlist Procedures
The decision to establish a waitlist was driven by a combination of factors that necessitated a strategic approach to managing the demand for STR permits. Over the past couple of years, there has been a surge in demand for STR permits due to the growth of tourism in the region. The waitlist system has ensured that STR permits are distributed fairly among interested parties. Currently, 54 households are awaiting an STR permit, with some households having been on the list for nearly two years. When one becomes available, City staff completes the following:
• Notify the waitlist applicant that a permit has become available. • Provide a two (2) week window to submit an application. • Send a follow-up notice 72-hours prior to the two-week deadline. • If an application has not been submitted, staff provides a notice the window has closed. • Staff contacts the next waitlist applicant, and the above steps are repeated until issuance of a new STR permit.

Staff has noticed, as permits become available, some waitlist participants elect to “pass” on the opportunity, sometimes as many as three times, yet remain in their current waitlist position. This has caused delays in issuance of STR permits where a permit would go months without being issued. To remedy this situation, staff is recommending the Administrative Rules be modified to establish a methodology to ensure the STR permits are issued in a timelier manner and that waitlist participants do not take advantage of the list effectively limiting the potential of other waitlist participants chances of receiving an STR permit:

Staff Report: Short Term Rental Program Update Page 6
August 28, 2023
• Phone call and message when a permit becomes available. • One (1) week to apply for the permit.
• Removal from the waitlist after a defined number of “passes” If the 3rd bullet point is implemented, this would initiate removal of a household from the waitlist.

There would be an opportunity to apply to be on the waitlist, but they would be placed at the end of the list and not return to their original place. The Council could choose to remove the household after a defined number of “passes.” Staff is recommending to only allow a single “pass” to reduce the administrative burden on staff and promotes a more equitable opportunity for potential applicants to participate in the program.

Local Contacts
City staff has received complaints from permittees regarding the local contact requirement. The existing ordinance and Administrative Rules require a “local contact” who is available 24-hours a day, seven days per week. The intent behind establishing a local contact was to have a person available to respond and be present at the unit within 30 minutes of the receipt of a complaint. The Administrative Rules further define who may qualify as a local contact and requires that contact to live within a 30-minute driving window, based on the local contact’s address, as inputted by an online mapping system. A local contact can be the property owner for both owner- and non-owneroccupied units, assuming they live within a 30-minute radius. Staff requests the Council provide input on modifying the local contact requirement. Options include the following:
• Eliminate or expand the 30-minute requirement.
• If expanded beyond 30-minute requirement, the STR permit holder shall install additional security measures to ensure compliance with all rules and regulations of the ordinance (i.e. security cameras, noise decibel level reader) This would require an inspection by city staff. • Allow for larger national or regional property managers to manage properties, however, these would still be required to respond to complaints consistent with the Administrative Rules.

STRs and ADUs For Existing Permit Holders
Currently the existing STR ordinance and Accessory Dwelling Unit (ADUs) ordinance prohibit the use of ADUs as STRs if constructed on or after September 11, 2020. This prohibition was established to ensure ADUs are constructed as long-term rental housing consistent with Government Code Section 65852.150 and address the severe housing crisis in California. City staff has received numerous inquiries from permit holders on whether an STR could be permitted within an ADU, or, if upon construction of an ADU, the household moves (temporarily or permanently) into the ADU and continues to rent the primary residence consistent with the STR permit.

Allowing someone to operate an STR within an ADU is a complex issue that involves a variety of considerations. Many cities are facing housing shortages, and ADUs are often seen as a way to increase the availability of long-term housing options. Allowing ADUs to operate as STRs could potentially reduce the overall housing stock, as these units might be more lucrative for owners as STRs rather than as long-term housing. Furthermore, the intent of State law and the City’s current prohibition, is to provide for more affordable housing options in single- and multi-family zones.

Conversion of ADUs to STRs may drive up housing costs and negatively impact housing affordability for local residents. Conversely, allowing homeowners to rent out their ADUs as STRs can provide them with a supplementary source of income, offsetting the costs of maintaining their properties. STRs provide flexible accommodation options for travelers, especially those seeking Staff Report: Short Term Rental Program Update Page 7
August 28, 2023
alternatives to traditional hotels, ultimately contributing to a more diverse and vibrant tourist environment.

With these points in mind, staff is seeking direction on how to balance these potential benefits with the concerns and potential negative impacts associated with allowing ADUs as STRs, especially as it relates to the intent of State law and legislation regarding ADUs fulfilling long-term housing needs.

Some options for the Council to consider includes the following:
• Take no action and allow permittees to maintain their non-owner-occupied permit, thereby allowing occupancy of an ADU by the property owner, and the permittee maintains their permit, provided they abide by all regulations.
• Require permittees that have non-owner-occupied permits that construct ADUs to switch to owner-occupied permits if they intend to occupy the ADUs and continue to rent out the primary unit that was originally licensed, therefore requiring them to be present during stays.

This allows households on the waitlist to access a non-owner occupied STR permit. This option is highly recommended by city staff because it meets the intent of state law relaxing regulations to construct affordable by design units such as ADUs. • At the time of building permit finalization, require the permittees to relinquish their permits following construction of the ADU.

Number of Required Annual Minimum Stays
In 2021, the Council directed staff to adopt a 12-night per year minimum stay requirement to eliminate inactive permits preventing new STR permits from being issued. Owner-occupied permit holders are exempt from this requirement. Currently, 97% of the existing permit holders met the minimum overnight threshold for the previous permit year (August 1st – July 31st).

Staff is seeking direction from Council on whether the minimum number of stays should be increased during the permit year to further eliminate permit holders who complete only the minimum night stay requirement effectively preventing new STR permits from being issued. For example, instead of one stay per month (12 annually), the requirement could be increased to 24 nights per permit year which is the equivalent of a weekend stay a month. Based on permit year 2022-2023, 12 non-owner-occupied permit holders would be ineligible for renewal if the minimum night stay were increased to 24 nights per permit year.

Number of Non-Owner-Occupied Permits
The existing ordinance established a cap of 100 non-owner-occupied permits, 40 in the Coastal Zone and 60 in the non-Coastal Zone. As part of the STR ordinance adoption, the Council discussed the appropriate maximum number of STRs within the City recognizing the balance between providing additional visitor-serving amenities and maintaining a sufficient inventory of long-term rental housing.

Since the program’s inception in 2019, the City has added approximately 60 new residential units in either the form of single-unit residences, multi-unit residences, or ADUs. This equates to an increase of two percent in the city’s total housing stock. However, based on current development applications under review by City staff, the City will likely see as many as 250 new residential units under construction over the next two to three years. The Council could direct staff to increase the number of allowable STRs based on a percentage of the total housing stock; based on the 2% increase in housing produced over the last two years, which would allow for one new Coastal Zone permit would be allowed, and two non-coastal zone permits. The Council could also increase this Staff Report: Short Term Rental Program Update Page 8
August 28, 2023
cap by a higher percentage based on the anticipated growth in new housing units in upcoming years or review this cap every 2-3 years for potential changes based on housing units produced.

Based upon Council direction on the above policy items, an amendment to the STR ordinance may be required and staff would subsequently schedule the item for Planning Commission and Council consideration in early 2024.

Conclusion
The STR program has demonstrated resounding success since its implementation. The efforts of staff, combined with the proactive engagement from the community, have resulted in a wellregulated program. The remarkably low number of complaints is a testament to the effectiveness of the adopted standards and Administrative Rules. The STR program has also proven to be a significant revenue generator for the City whose funds are able to be allocated towards different projects and public services.

The City continues to stress recognizing the importance of fostering responsible tourism and preserving the residential character of neighborhoods. While minor changes have been discussed in this report, it is important to note that these adjustments are not imperative to the continued success of the program and staff is dedicated to reinforcing its success through a balanced and sustainable approach that benefits the local economy and the quality of life for its residents.

FISCAL IMPACT
There is no fiscal impact associated with this report. Modification to the number of non-owneroccupied permits and minimum number of stays may result in some level of additional TOT revenues to the City.

ALTERNATIVES
The City Council has the following alternatives to consider:

1. Receive a report on the implementation of the City’s STR program and provide direction to staff on potential changes to the City’s STR regulations.

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. All STR permit holders and those currently on the waitlist, were notified and emailed the agenda for this item.

Attachments

1. Short Term Rental Ordinance

2. Administrative Rules

3. Short Term Rental Permit Locations

4.10.170
4-26 City of Grover Beach Development Code
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022

4.10.185 Short-Term Rentals
A. Purpose.

1. This Section provides standards to regulate short-term rentals where allowed by Chapter 2 (Zones and Allowable Uses). The intent of these requirements is to ensure short-term rentals are operated in a way that minimizes impacts on surrounding residential uses, provides basic life safety measures, and operate consistent with applicable sections of the Municipal Code.

2. This Section is not intended to provide any owner of a single-unit dwelling, multiunit dwelling, or mobile home with the right or privilege to violate any private Attachment 1
0 City of Grover Beach Development Code 4-27
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022 conditions, covenants and restrictions applicable to the owner’s residence that may prohibit the use of an owner’s residence for short-term rental purposes as defined in this Section.

B. Applicability.

1. The provisions of this Section shall apply to all short-term rental units, including owner occupied and non-owner occupied short-term rentals. All standards of the underlying zone shall continue to apply to a permitted short-term rental. This Section does not apply to legally established lodging uses, which are regulated separately.

2. Short-term rental units shall only be allowed within a legally constructed singleunit dwelling, multi-unit dwelling, multi-unit dwellings within a mixed-use project, or mobile home as defined in Section 9.10.020, except short-term rentals shall be prohibited in the following types of dwellings: live-work units, caretaker residences, and accessory dwelling units unless exempt as specified in Subsection Q. Short-term rental permits shall be limited to the issuance of one permit per building when units share common walls within multi-unit dwellings or within a mixed-use project for all new permits issued after October 1, 2021.

3. Short-term rentals shall be prohibited in any residence subject to an affordable housing covenant or deed restriction imposed or required by the city.

4. Short-term rentals shall be prohibited in recreational vehicles, motor homes, travel trailers, truck campers, tent trailers, boats and other similar vehicles.

C. Permit Required.

1. No person shall rent, offer to rent, or advertise for rent a residential dwelling to another person or group for a short-term rental without a short-term rental permit approved and issued in a manner provided for by this Section, except as specified in Subsection P.

2. A short-term rental permit must be renewed on an annual basis in order to remain valid. If a short-term rental permit is not renewed prior to its expiration date, it shall expire automatically. Under such conditions, the owner shall be required to apply for and obtain a new short-term rental permit, subject to the regulations and administrative rules in effect at the time an application is submitted.

3. Any proposed change to the permit conditions or material facts relating to the information contained in the permit application shall require the owner to submit a new short-term rental permit application.

4. A short-term rental permit is only valid for the address and owner on the shortterm rental permit. The short-term rental permit is non-transferable to another residential unit and any change in property ownership shall require a new shortterm rental permit application be submitted within 60 days. 0 4-28 City of Grover Beach Development Code
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022

5. A short-term rental permit shall be valid only for the number of bedrooms in existence at the time the short-term rental permit is issued. A short-term rental permit shall not authorize the use of any bedrooms in excess of those identified in the short-term rental permit. If additional bedrooms are added to the subject dwelling, a new short-term rental permit shall be required.

D. Application Requirements. The owner shall submit a short-term rental permit application, application submittal requirements, and fee approved in the City’s Master Fee Schedule.

E. Application Approval. The Community Development Director shall approve the short-term rental permit if the owner demonstrates compliance with this Section, agrees to abide by the short-term rental permit conditions, and a site inspection has verified compliance.

F. Permit Approval Notification. The City shall notify all property owners and occupants in writing within a 150-foot radius upon issuance of a short-term rental permit for a non-owner occupied short-term rental indicating the rental address, owner’s name, hotline contact information, and the maximum number of occupants allowed. No notification is required for owner-occupied short-term rentals.

G. Maximum Number. The maximum number of non-owner occupied STRs shall be 40 within the Coastal Zone area and 60 within the non-Coastal Zone area. There is no limit on the number of owner-occupied STRs in the city. STR permit applications shall be reviewed on a first-come, first-serve basis with a waiting list for new STR permits once all authorized STR permits are issued.

H. Permit and Operating Requirements. The owner shall be responsible to ensure that renters comply with all the requirements of this Section. The short-term rental shall comply with the following standards:

1. Maximum Occupancy of a Non-Owner Occupied Rental. The maximum occupancy permitted for a non-owner occupied short-term rental unit shall be limited to the following:

Number of
Bedrooms
Maximum
Number of
Renters
Additional Daytime Guests
Allowed from 7:00 a.m. to 10:00
p.m.
0 (studio) 2 0
1 4 2
2 6 3
3 8 4
4 or more 10 5

2. Maximum Occupancy of an Owner-Occupied Rental. The maximum occupancy permitted for an owner-occupied short-term rental unit shall be limited to the following:
0 City of Grover Beach Development Code 4-29
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022 Number of
Bedrooms
Maximum
Number of
Renters
Additional Daytime Guests
Allowed from 7:00 a.m. to 10:00
p.m.
0 (studio) 2 No Limit
1 4 No Limit
2 6 No Limit
3 8 No Limit
4 or more 10 No Limit

3. Parking. The number of on-site parking spaces shall be provided as required by Development Code Section 3.50 Parking Regulations based on the type of residential unit, except that the required parking spaces may be in either a garage, carport or designated driveway with approved hardscape material.

Parking spaces shall meet the minimum dimensions required by Section 3.50.

Short-term rental parking shall also comply with the following:
a. If a garage is utilized as required parking, access shall be provided at all times the short-term rental is operational.
b. The property owner shall require the renters to utilize the designated on-site parking to the maximum extent feasible.
c. A site plan shall be provided to the guests indicating the location of the required on-site parking spaces and, if applicable, where parking is prohibited, such as within a common driveway. The site plan shall be posted in a conspicuous place on the inside of the premises near the front door at all times the unit is being rented.

4. Local Contact Person. Short-term rental units shall have a local contact person who is available 24-hours per day, seven days per week. The local contact person must be able to be present at the short-term rental within 30 minutes of receiving a complaint at all times the short-term rental is operational. The contact information shall be submitted to the City when an application for permit is submitted and the owner shall immediately provide the city in writing of any change to the local contact person.

5. Property Maintenance. The property shall be maintained in a neat and clean appearance at all times. The owner shall provide appropriate trash and recycling containers which must be stored in a location not visible from the street.

Containers shall be placed at the appropriate pick-up location weekly, no more than 24-hours prior to pick-up, and returned to storage no more than 12-hours after pickup.

6. Good Neighbor Brochure. The property owner shall require any renter to sign an agreement acknowledging they have been provided a copy of the City’s “Good Neighbor Brochure” and agree to comply with the regulations and the consequences for violating the regulations. If the rental is through a third party hosted by an on-line platform, the owner shall require the third party to provide 0 4-30 City of Grover Beach Development Code
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022 an on-line link to the Good Neighbor Brochure and a mechanism by which a renter shall acknowledgement receipt of the Good Neighbor Brochure and agree to comply with the regulations and the consequences for violating the regulations.

7. Life Safety Measures. The following life safety measures shall be provided:
a. Smoke detectors in each bedroom and the hall leading to the bedrooms. b. Carbon monoxide detector.
c. Fire extinguisher in or near kitchen.
d. A site plan indicating the location of the electrical, gas and water shut-off locations.
e. If the residence has a fire sprinkler system, an annual inspection shall be made to ensure proper operation.

8. Posting Permit. The short-term rental permit shall be posted in a conspicuous place on the inside of the premises near the front door at all times the unit is being rented.

9. Noise and Conduct. The owner or the local contact person shall ensure that the renters and/or guests of the short-term rental do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term rental. No radio receiver, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any short-term rental between the hours of 10:00 p.m. and 7:00 a.m. The renters and/or guests shall comply with the City’s Noise Ordinance at all times.

10. Signage. No on-site signage shall be allowed to advertise short-term rentals.

11. Advertising Requirements. All advertisements for short-term rentals shall include the city’s short-term rental permit number and the maximum permitted overnight occupancy as stated on the approved short-term rental permit.

12. Payment of Transient Occupancy Tax. The owner shall pay the transient occupancy tax in compliance with Municipal Code Article X Chapter 6 and the Administrative Rules. Payment of transient occupancy tax shall be required upon the effective date of the ordinance. The owner may submit payment of the transient occupancy tax directly to the City or make payment through a shortterm rental platform that has a current agreement with the City.

13. Business Tax Certificate. The owner of a short-term rental that has an active short-term rental permit shall have a valid Business Tax Certificate at all times.

14. Minimum Stay Requirement. All non-owner occupied permits shall have a minimum of 12 overnight stays during the permit year, as defined by the 0 City of Grover Beach Development Code 4-31
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022 Administrative rules. Any permittees not meeting this requirement shall not be eligible for permit renewal.

15. Compliance with laws. The owner shall ensure that the short-term rental is operated in a manner that complies with all applicable federal, state and local laws, rules and regulations and private governing documents, including, without limitation, conditions, covenants and restrictions (“CC&Rs”) that are valid and enforceable pursuant to the Davis-Stirling Common Interest Development Act, as set forth in California Civil Code Section 4000 et seq., pertaining to the use and occupancy of the short-term rental.

16. Additional conditions or requirements may be required as determined by the Community Development Director to achieve the purpose and intent of this Section.

I. Rental Agreements. The owner shall enter into a written rental agreement with the renter of any short-term rental property, or shall enter into an agreement provided by a third-party rental agency, or hosted on-line platform, which agreement shall, at a minimum, include the following:

1. The name, address, mobile phone, and email address of the renter.

2. The terms and conditions of the rental agreement, including occupancy limits.

3. Acknowledgment by the renter that he or she is legally responsible for compliance by all renters and any guests of the short-term rental with the requirements of this Section and the terms of the rental agreement.

4. Acknowledgment by the renter they have reviewed the Good Neighbor Brochure as specified in Subsection H.6.

5. Acknowledgment and agreement that the City may inspect the short-term rental property for cause upon 24-hour notice.

J. Owner Responsibilities. An owner may authorize an agent to comply with the requirements of this Section on behalf of the owner. However, the owner shall not be relieved from any personal responsibility and personal liability for noncompliance with any applicable law, rule or regulation pertaining to the use and rental of the shortterm rental, regardless of whether such noncompliance was committed by the owner’s authorized agent, local contact person, renter or guest of the short-term rental.

K. Violations.

1. Notice of Violation. The City may issue a notice of violation to the owner, local contact person, renters, or guests pursuant to Municipal Code Article I, Chapter 4, if a violation of this Section is committed, caused or maintained by any of the above parties.

2. Responding to Hotline. The City may issue a notice of violation to the owner if the local contact person fails to respond when contacted by the hotline. 0 4-32 City of Grover Beach Development Code
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022

3. Administrative Citation. The City may issue administrative citations to the owner, local contact person, renters, or guests pursuant to Municipal Code Article I, Chapter 4, if a violation of this Section is committed, caused or maintained by any of the above parties. Unless otherwise provided herein, any person issued an administrative citation pursuant to this Section shall for each separate violation be subject to those fines consistent with the Grover Beach Master Fee Schedule.

4. Penalties. It is unlawful to violate any provision of this Section 4.10.185 of Chapter 4 of Article IX. Violations of this Section are punishable as misdemeanors. Violations of this Section may alternatively be punished as administrative violations as provided in Chapters 1 and 4 of Article I. Any administrative or criminal penalties imposed in accordance with this Section shall be consistent with those penalties and fines enumerated in the Grover Beach Master Fee Schedule. Each separate day or rental night in which a violation exist may be considered a separate violation whether for administrative citations or as a misdemeanor.

5. Additional Conditions. A violation of any provision of this Section by the owner, local contact person, renters, or guests shall authorize the Community Development Director, to impose additional conditions on the use of any given short-term rental to ensure that any potential additional violations are avoided.

6. Permit Modification, Suspension and Revocation. Unless otherwise provided in this Section, a violation of any provision of this Section by the owner, local contact person, renters, or guests shall constitute grounds for modification, suspension and/or revocation of the short-term rental permit and/or any affiliated licenses or permits.

7. Public Nuisance. It shall be a public nuisance for any person to commit, cause or maintain a violation of this Section.

L. Permit Revocation. A short-term rental permit may be revoked under any of the following conditions:

1. The City issues three or more violations related to the operation of the short-term rental within any two-year period.

2. The short-term rental is found to be noncompliant with any portion of this Section, the Administrative Rules, or the short-term rental permit conditions.

3. Abandonment of the use for a period of 12 months or more (demonstrated by a lack of payment of transient occupancy taxes).

4. Failure to pay a citation related to operation of a short-term rental within 15 days of issuance.

5. The owner provided materially false or misleading information in any submittal required by this Section.
0 City of Grover Beach Development Code 4-33
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022

6. Any instance of transient occupancy tax fraud or transient occupancy tax delinquency of more than three months.

7. Credible evidence is presented to the City, after issuance of a short-term rental permit, that there are private governing documents, including, without limitation, conditions, covenants and restrictions (“CC&Rs”) that are valid and enforceable pursuant to the Davis-Stirling Common Interest Development Act, as set forth in California Civil Code Section 4000 et seq., which prohibit the use of the dwelling for short-term rental purposes, as defined in this Section, the owner shall have thirty days after being notified of receipt of such evidence by the city to provide written authorization from the owner’s homeowner association that allows the owner to continue to use the owner’s property for short-term rental purposes until expiration of the current short-term rental permit. If no such written authorization is provided as set forth herein, the owner’s short-term rental permit shall be summarily revoked.

8. A permanent ban on the rental of the subject short-term rental pursuant to an order issued by a court of competent jurisdiction.

9. If the subject property lacks adequate onsite parking, or impedes ingress and/or egress access to the subject property or adjacent properties.

M. Permit Revocation Process. If a short-term rental permit is revoked, the following applies:

1. The Community Development Director shall notify the property owner in writing that the short-term rental permit has been revoked and specify the reasons for the revocation.

2. A property that has a short-term rental permit revoked cannot reapply for a period of two years.

3. Notification shall be sent to all owners and occupants within 150 feet of the subject short-term rental of any revocation.

4. A decision by the Community Development Director to revoke a short-term rental permit is appealable to the Planning Commission as specified in Section 7.20 Appeals.

N. Denial of Permit. A short-term rental permit may be denied for the following reasons:

1. At the time the short-term rental permit application or annual permit renewal is submitted, the short-term rental property has an active code violation related to structures, land use or life safety issues.

2. The owner has had a prior short-term rental permit suspended or revoked, or has been cited for violating any provision of this Section or the Municipal Code related to the use or maintenance of the property of the short-term rental in the prior two years.

4.10.190
4-34 City of Grover Beach Development Code
Adopted October 15, 2012
Amended July 21, 2014, May 15, 2017, January 8, 2018, May 21, 2018, March 18, 2019, June 17, 2019, July 15, 2019, July 6, 2020, November 22, 2021, and June 13, 2022

3. Failure to make transient occupancy tax payments in accordance with Municipal Code Article X, Chapter 6 or the Administrative Rules.

4. There is credible evidence that there are any private governing documents, including, without limitation, conditions, covenants and restrictions (“CC&Rs”) that are valid and enforceable pursuant to the Davis-Stirling Common Interest Development Act, as set forth in California Civil Code Section 4000 et seq., which prohibit the use of such owner’s single-unit dwelling, multi-unit dwelling, or mobile home for short-term rental purposes as defined in this Section.

5. If the subject property lacks adequate onsite parking, or impedes ingress and/or egress access to the subject property or adjacent properties.

6. The owner fails to provide any of the required application information, renewal requirements, or demonstrate compliance with the requirements of this Section or the Administrative Rules.

O. Administrative Rules. The City Manager, or designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this Section for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Section, and establishing procedures for complaints. A copy of such administrative rules and regulations shall be on file in the office of the city clerk and posted on the city's website.

P. Effect of Ordinance on Existing Short-Term Rentals. All owners advertising or operating a short-term rental property on the effective date of the ordinance enacting this Section shall have 60 days from the effective date to submit a shortterm rental permit application in compliance with this Section. Failure to submit a short-term rental permit application in compliance with this Section shall result in the owner not being eligible to apply for a short-term rental permit or be authorized to operate a short-term rental for a six-month period after the expiration of the 60 day application period.

Q. Effect of Ordinance on Existing or Proposed Accessory Dwelling Units.

Accessory dwelling units and second residential dwellings that are existing, under construction, or in building plan review prior to September 11, 2020 may be used as a short-term rental.

R. Definitions. Definitions for this Section are in Development Code Section 9.10.050.

Attachment 2
City of Grover Beach │ Short-Term Rental Administrative Rules City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page i
Table of Contents

1. Glossary ...............................................................................................................................1

2. Introduction..........................................................................................................................4

3. Key Dates and Deadlines ....................................................................................................4

4. Number of Short-Term Rentals Allowed............................................................................5

5. Short-Term Rental Permits .................................................................................................5

6. Business Tax Certificate .....................................................................................................9

7. Payment of TOT/TMD Taxes ...............................................................................................9

8. Short-Term Rental Operator Regulations........................................................................10

9. Violations............................................................................................................................15

10. Revocation of Permit.........................................................................................................17 Appendix
Appendix A TOT / TMD Submittal Form
Appendix B TOT / TMD Exception Form
Appendix C Owner-Occupied Self Certification Form
Appendix D Non-Owner-Occupied Inspection Checklist
City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 1

1. Glossary
This glossary provides definitions for terms used in the City of Grover Beach Short-Term Rental Administrative Rules and Regulations.

Accessory Dwelling Unit A legally permitted residential unit, either separated or detached, located on the same residential parcel/lot as the primary residential unit.

Administrative Rules The City Manager, or designee, shall have the authority to establish administrative rules and regulations consistent with the provisions of this Section for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements and the provisions of this Section, and establishing procedures for complaints. A copy of such administrative rules and regulations shall be on file in the office of the city clerk and posted on the city's website.

Advertise The publication of any statements, phrases, words, photographs, drawings or other images for the purpose of informing any member of the public of the ability or availability to use a specific dwelling unit for short-term rental purposes including but not be limited to verbal, written, printed, electronic, televised or broadcast set forth or contained in any newspaper, magazine, newsletter, website, solicitation, handbill, business card, flyer, outdoor advertising display, billboard, cable, satellite or digital radio or television broadcast, social networking site or any other electronic and digital media.

Application A public document completed and filed to the City of Grover Beach that requests permission to operate a short-term rental business for a property located within the City of Grover Beach.

Bedroom Any habitable room normally occupied with no less than 70 square feet of floor area and no horizontal dimension less than seven feet with at least one wall located along an exterior wall with a window and equipped with a heating source as required by the California Building Code.

Brochure A document prepared by the City that summarizes the general rules of conduct and applicable short-term rental regulations to be adhered to by renters.

BTC Business Tax Certificate is a tax payable when the City issues a Business Tax Certificate by every person conducting, carrying on, or managing any business within the City of Grover Beach.

Development Code The City of Grover Beach zoning and development regulations known as Article IX in the Grover Beach Municipal Code.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 2
City The City of Grover Beach comprising of all lots within its incorporated City Limit line.

City Council The City Council of the City of Grover Beach.

GBMC The Grover Beach Municipal Code.

Guest An invitee of a renter or other person visiting a renter of a shortterm rental unit who does not rent the unit. Guests shall only be allowed at the short-term rental between the hours of 7:00 a.m. and 10:00 p.m. unless they intend to occupy the unit for the evening consistent with Section 8.(F).

Hotline The telephonic service or electronic messaging service operated by or for the City for the purpose of receiving complaints regarding the operation of any Short-Term Rental and forwarding the complaints to the local contact person.

Hosting Platform An internet based service, or property management company that provides advertisement for a short-term rental property.

Legally Permitted A residential dwelling unit, remodel, or addition that has been issued a building permit by the City, or the County prior to incorporation.

Local Contact Person A person designated on the short-term rental permit, whom shall be available 24-hours a day, seven days a week for the purpose of responding in-person to the short-term rental site within 30 minutes of receiving a complaint regarding the condition, operation, or conduct of guests and is authorized by the owner to take remedial action and who responds to violations.

Non-Owner-Occupied A short-term rental in which the owner does not reside on the property during the time a renter is occupying the residence.

Operator A person that is operating an STR either as an authorized agent for an owner (property manager), or as a legal occupant of the long-term rental with landlord permission.

Owner-Occupied A short-term rental in which the owner resides on the property during the time a renter is occupying the residence.

Owner A person or entity holding legal title and/or equitable title to the real property that is the subject of a short-term rental permit.

Permittee The applicant (property owner) that has been issued a ShortTerm Rental Permit.

Residential Unit A building or portion thereof designed for or occupied in its entirety or in part, as a home, residency, or sleeping place, either City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 3
permanently or temporarily, and containing not more than one kitchen per residential unit.

Renter A person renting or occupying a short-term rental property in accordance with the GBMC. For purposes of these regulations, “renter” shall have the same meaning as “transient,” as defined in Municipal Code Article X Chapter 6.

Short-Term Rental The rental of a private residence, or any portion of the private residence, for thirty or less consecutive days for which a rental contract for occupancy has been made which the short-term rental use is permitted to operate, pursuant to a current and valid short-term rental permit on file with the city. A short-term rental may be either an owner-occupied or non-owner-occupied shortterm rental.

STR Permit An issued document that allows a rental of a residential unit for a period of less than 30 consecutive calendar days or less, subject to all applicable City development code regulations, permit/licensing requirements, and payment of fees and/or taxes, including transient occupancy tax, and tourism marketing district taxes as defined in the GBMC.

STR Permit Renewal A Short-Term Rental Permit Renewal Application to continue operation of an existing Short-Term Rental that the owner of a Residential Unit must fill out and submit to the City’s Community Development Department by July 31st of each year to renew their permit.

Stay A stay is considered the rental period in which a residential unit is occupied by a renter.

TOT Transient Occupancy Tax (TOT) is charged for the privilege of occupancy in a residential unit. Each transient is subject to and shall pay a tax in the amount of twelve (12%) percent of the rent charged by the operator. Said tax constitutes a debt owed by the transient to the City which is extinguished only by payment to the operator.

TMD Tourism Marking District (TMD), requires that all operators who collect Transient Occupancy Tax (TOT) within the County also begin remitting an additional 1.5% of taxable rents beginning with rents collected on July 1, 2020. The District is designed to provide funding for County-wide marketing, advertising, promotions and sales efforts on behalf of the assessed
businesses.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 4

2. Introduction
The City Council adopted a short-term rental (STR) ordinance on June 17, 2019 that established a permitting process for all STRs and regulations for all STRs operating in the City. The Ordinance number 19-04 is codified in the Grover Beach Municipal Code (GBMC) Article IX Development Code Chapter 4 Section 4.10.185. The Ordinance authorizes the City Manager to establish administrative rules and regulation consistent with the Ordinance for the purpose of interpreting, clarifying, carrying out, furthering, and enforcing the requirements of the Ordinance.

3. Key Dates and Deadlines
The following table sets forth key dates and deadlines for the City’s STR regulations.

Key Dates and Deadlines
September 11, 2019 California Coastal Commission approved local ordinance regulating Short-Term Rentals.

October 1, 2019 STR application and BTC application available on city’s website https://str.groverbeach.org . Applications accepted online only.

November 12, 2019 Enforcement of STRs that have not applied for permits begins.

December 31 of each year Business Tax Certificate renewals are due (sent via us mail by Administrative Services Department)
July 1- July 31 STR Permit Renewal Applications period. Renewals completed online only at https://str.groverbeach.org .

July 31 of each year Final day to apply for a renewal. If a renewal application is not received by July 31, the permit may be revoked
August 1 to July 31 Permits are valid from August 1 to July 31 of the next year (i.e. August 1, 2021 to July 31, 2022).

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 5

4. Number of Short-Term Rentals Allowed
The Development Code establishes a maximum number of STRs for non-owner-occupied units (Development Code Section 4.10.185.G). A maximum of 40 non-owner-occupied STRs will be allowed on properties within the coastal zone. A maximum of 60 non-owner-occupied STRs will be allowed on properties outside of the coastal zone. There is no limit for the number of STR permits issued for owner-occupied units. Permits will be issued on a first come, first serve basis.

City Map – Maximum Number of Non-Owner-Occupied STRs

5. Short-Term Rental Permits
A. Application. An application must be completed on-line at https://str.groverbeach.org with all the required information and submitted with a fee approved in the City’s Master Fee Schedule. The City will review all information submitted, including a review of City building permits to ensure floor plans and site plans are in compliance with City records. If as part of the application review process it is determined that construction occurred at the residence without a valid building permit issued by the City, a code enforcement investigation will be opened and your STR application will be denied until building permits have been issued and the work is completed. Applications will be rejected if an open building permit is on file for the property. The following items are required to be submitted for an STR application.
60 STRs
40 STRs
City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 6

1. Applicant Name – This is the name of the property owner. If you are a renter, the landlord’s name must appear on this line and match property records. A permit will be issued to the property owner.

2. Property Address – This is the address of the property. This must match property records maintained by the City.

3. Mailing Address – This is a mailing address where forms and other communications are to be sent. If this is the same as the property address type “same as property.”

4. Applicant Contact Number – This is a phone number to contact either the property owner or the authorized agent such as a property manager or renter. It is recommended this number be a mobile phone number.

5. Applicant Email Address – This is an email to contact either the property owner or the authorized agent such as a property manager or renter.

Assessor’s Parcel Number – The is a property identification number issued by San Luis Obispo County Assessor’s Office. This number may be obtained by visiting either the County Assessor’s website https://www.slocounty.ca.gov/Departments/Assessor/Services/Propert y-Information-Search.aspx or the City’s Zoning information website = https://www.google.com/maps/d/viewer?mid=1oxe-GE-bg8RPy7- FmIGbYTaoAjpyawT3&ll=35.12985372392944%2C120.62230030638129&z=18

6. Fee. An application fee is due at the time of permit registration. This fee covers the cost of City staff time and the City’s third party vendor that accepts the application, monitors the hotline, and performs other assigned contractual tasks. The application fee can change annually and is in the City’s Master Fee Schedule. The fee is not pro-rated at the time of permit registration. The third party vendor may charge a separate fee for credit card and Automated Clearing House (ACH) payments directly from a checking account.

7. Owner-Occupied - The owner resides on the property during the time a renter occupies the residence, between the hours of 10:00 p.m. to 7:00 a.m. To be considered an owner-occupied STR, you must submit a property tax bill that shows the “homeowner” exemption. If a renter, through permission from a landlord, is operating the STR, a copy of the lease shall be submitted in lieu of a property tax bill. A maximum of four (4) entire home stays up to a maximum of 30 days total, is permitted, per permit year (July 1-June 30), to maintain owner-occupied status. In no instance can an owner-occupied permit holder utilize an on-site camper, RV, or stay in a tent, on the property to qualify for an owneroccupied permit.

8. Non-Owner-Occupied – The owner or entity does not reside permanently at the property and rents their entire home and is not present during the duration of the stay.

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 7

9. Local Contact – All STRs must provide a local contact person who is available 24-hours a day seven (7) days per week and must be located within 30 minute drive of the short-term rental property. The local contact must be able to be present at the non-owner occupied dwelling within 30 minutes. Typically for owner-occupied units, this is the owner, but may also include a secondary contact that is located within 30 minutes of the short-term rental property. City staff will contact the local contact person prior to permit issuance and renewal to verify their role.

10. Site Plan – A site plan showing the location of the residence, all buildings, and setbacks from property lines. An example of this is available at http://www.grover.org/DocumentCenter/View/8811/SitePlan-Example-GB?bidId= . Site Plan must indicate the location of parking, electrical meter, gas meter shutoff, and water shutoff valve.

This site plan needs to be to scale (i.e. 1 inch = 10 feet).

11. Floor Plan – A plan showing the entire floor plan (include all stories) of your residence must be included. Please indicate the location of the following: proposed room(s) to be used for short-term rentals, if using the entire house, indicate entire house, location of all smoke detectors, carbon monoxide detector(s), fire extinguisher within kitchen. Plans are to be completed to scale (i.e. 1 inch = 10 feet). An example is available at:
http://www.grover.org/DocumentCenter/View/8812/Floor-PlanExample-GB?bidId=.

12. Grant Deed – A grant deed is required for any short-term rental permit owned by a property for less than a year, and/or does not match City property records.

13. CC&Rs/HOA – These are required if your property was developed as a planned unit development (PUD), or your property is part of a Homeowners Association or has recorded Covenants, Conditions, and Restrictions. A copy of these restrictions are typically included with your deed or escrow papers. If you need to obtain additional copies, you will need to visit the San Luis Obispo County Recorder’s Office.

14. Authorized Agent Form – This form is required if an application is being submitted by a property manager or renter with authorization from a landlord. The form can be accessed at
http://grover.org/DocumentCenter/View/6732. This form is not required if you will be managing your own property.

A. Business Tax Certificate. Concurrent with an application for a STR permit, the applicant must submit an application for a business tax certificate (BTC). The applicant shall pay the minimum BTC amount, as established in the Master Fee Schedule. All short-term rental permittees shall renew their BTC when it is required by the Grover Beach Municipal Code.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 8
B. Inspections. After a review of the initial application submittal, an inspection is required for all non-owner-occupied units prior to approval of an STR permit. An inspection checklist can be accessed at
http://www.grover.org/DocumentCenter/View/8893/Non-Owner-OccupiedInspection-Checklist?bidId=. Owner-occupied STRs must complete a selfcertification checklist and submit this with their application. This checklist is included in the appendix for both owner and non-owner-occupied units and can be accessed here: http://www.grover.org/DocumentCenter/View/8894.

C. Approval. After review of an STR application and inspection completed for nonowner-occupied STRs, the Community Development Director, or their designee shall approve a short-term rental permit if the owner/operator demonstrates compliance with the STR ordinance. In no instance shall an STR operator advertise or complete stays without a valid STR permit after November 12, 2019.

D. Notification. City staff shall notify all property owners and occupants in writing within a 150-foot radius for a non-owner-occupied STR following approval of the STR permit. The information provided will include the rental address, the owner’s name, 24-hour phone number for complaints, and the maximum number of occupants. No notification is required for owner-occupied STRs.

E. Issuance of Certificate. A certificate will be issued via email to the applicant’s email, as provided in the application. This certificate will include the owner’s name, permit number, and date of approval. Permits shall be issued to the owner only. If a permittee does not receive their certificate, they should email city staff at [email protected] and request a copy. It is the responsibility of the permittee to transmit this certificate to their property manager.

F. Renewals. All STR permits shall expire on July 31 of each calendar year. Renewal notices will be sent via the applicant’s email provided on or before July 1st of each year. The permit holder shall submit the STR renewal fee as shown on the City’s Master Fee Schedule, along with required application submittal materials. Any STR permit not renewed on or before August 1 of each calendar year shall be considered expired and will need to re-submitted as a new STR permit. If there is a wait list, the permittee will be placed on this list.

G. Wait List. Upon reaching the maximum number of non-owner-occupied STR permits issued, the City will establish a wait list. If a permit is not renewed, or a permit is revoked, staff will notify the waitlist applicant of availability and the waitlist applicant will have fifteen (15) calendar days to submit an application. The wait list form can be found here: https://forms.office.com/g/WAy6Y0pwrR . Applicants on the wait list should provide contact information including email address and phone number.

H. Permit Denials. An STR permit or renewal may be denied for the following reasons:

1. Code Violations or Life Safety Issues – At the time the short-term rental permit application or annual permit renewal is submitted, the short-term rental property has an active code violation related to structures, land use or life safety issues, including but not limited to illegal structures, City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 9
conversion of space without a building permit, illegal room additions, etc.

2. Suspension or Revocation – The operator has had a prior short-term rental permit suspended or revoked or has been cited for violating any provision of this Section or the Municipal Code related to the use or maintenance of the property of the short-term rental in the prior two years.

3. CC&R Prohibition –If there is credible evidence that any private governing documents, including but not limited to, conditions, covenants and restrictions (“CC&Rs”) that are valid and enforceable pursuant to the Davis-Stirling Common Interest Development Act, as set forth in California Civil Code Section 4000 et seq., which prohibit the use of such owner’s single-family dwelling, multi-family dwelling, or mobile home for use as an STR.

4. Lack of On-site Parking – The subject property lacks adequate on-site parking or impedes ingress and/or egress access to the subject property or adjacent properties.

5. Failure to Provide Information – The applicant/operator fails to provide any of the required application information or demonstrate compliance with the requirements of Development Code Section 4.10.185 or the Administrative Rules, which includes any additional information requested of City staff during the initial review period of a permit.

6. Business Tax Certificate
A Business Tax Certificate (BTC) is required along with an STR permit. An STR operator shall pay the minimum BTC amount. BTC’s are not pro-rated for operations associated with an STR.

BTC’s must be renewed on or before December 31 of each calendar year. BTC fees are separate from STR fees and TOT/TMD taxes. Renewals shall be remitted to the Administrative Services Department.

7. Payment of TOT/TMD Taxes
All STR operators must comply with the requirements, procedures, and schedule set forth in Article X, Chapter 6 of the GBMC regarding remittance of the Transient Occupancy Tax (TOT) and Tourism Marketing District (TMD) taxes to the City.

A. TOT / TMD Tax Rates. As of July 1, 2020, the Transient Occupancy Tax (TOT) is 12%. The tax rate for Tourism Marketing District (TMD) is 1.5%.

B. Payment Due. Payment of TOT/TMD taxes are due on or before the last day of the month following the reporting period (i.e., June reporting period, due on July 31).

Postmarks are not accepted
C. Payment. Payment of TOT/TMD may be made either online only at https://str.groverbeach.org, through electronic check or credit card / debit card, by clicking on the link “Make TOT Payments” or clicking this direct link:
https://secure.hostcompliance.com/grover-beach-ca/remit/registration_number or City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 10 by completing this form and remitted to the city with either cash or check. You may access this document at the following link: Payments are responsibility of the permittee. Platforms such as Airbnb, VRBO, etc. do no remit these taxes to the City; therefore, it is the permittee’s responsibility to ensure payments are made.

D. Penalties. Penalties are due consistent with Article X, Chapter 6 of the GBMC.

E. Exception. Exceptions to payments of TOT/TMD shall be consistent with Article X, Chapter 6 of the GBMC and shall include proper documentation.

8. Short-Term Rental Operator Regulations
The following are regulations and clarifications for short-term rental operators. These regulations will be updated periodically for clarification of situations that may develop based on the implementation of the STR regulations within the City.

A. Owner-Occupied STR Requirements. The following are requirements that shall be adhered to qualify for an owner-occupied STR permit. If you do not meet these regulations, an STR permit shall be submitted as a non-owner-occupied STR.

1. During Stays. An owner must be in the residence or in another residence on the property during the time of a stay during the hours of 10:00 p.m. to 7:00 a.m.

2. Property Verification. At the time of application, an owner must submit their property tax bill issued by the San Luis Obispo County Assessor’s office. This tax bill must contain the “homeowners exemption” line.

3. Multiple Units on a Property. An owner-occupied STR permit may be issued for a maximum of one unit when there are multiple units on the property, legally permitted and if it is ADU constructed prior to June 17, 2019. In no instance can an owner-occupied permit be issued when an ADU is constructed, and the owner occupies the ADU.

4. Use of Accessory Dwelling Units. Accessory dwelling units or the primary residence may be rented as an entire home stay if the following qualifications are met: the accessory dwelling unit was legally permitted prior to June 17, 2019, or the owner had applied for a building permit for an accessory dwelling unit on or before June 17, 2019; and the owner will reside in either the primary residence or accessory unit during the duration of a stay.

5. Use of Tiny Homes. Tiny homes shall be prohibited from use as a shortterm rental.

6. Entire Home Rental Exception. A maximum of 30 nights total, is permitted per permit year and still allow the owner-occupied status during a permit year (August 1 to July 31). In no instance may an accessory dwelling unit and the primary residence be rented simultaneously.

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 11 B. Non-Owner Occupied Requirements. The following are requirements that shall be adhered to in order to qualify for a non-owner-occupied STR permit.

1. Multiple Units on a Property. A non-owner-occupied STR permit shall be limited to the following:
a. Single-family residences. Lots with a single family residence and a secondary unit (e.g., guesthouse, accessory dwelling unit (ADU) ), legally permitted or constructed prior to June 17, 2019, shall be limited to the issuance of one (1) STR permit. b. Multifamily residential development on a single lot (e.g., apartments) . STR permit issuance after August 1, 2021 shall be limited to one (1) unit per building when units share common walls.

2. Use of Accessory Dwelling Units. An accessory dwelling unit shall not be used as a STR for non-owner-occupied units.

3. Use of a Tiny Home. Tiny homes shall be prohibited from use as a short-term rental.

C. Local Contact Person. A non-owner-occupied STR permit must include a local contact person. The local contact shall respond to a complaint and be present at the STR within 30-minutes of receiving a complaint at all times. An owner-occupied unit must include a secondary local contact person at the time of application, if the owner will utilize the entire home rental exception in Section 8.A.5.

1. Verification. City staff will verify the address provided for the local contact person(s) meets the 30-minute response time by calculating the travel time from the local contact person’s address to the address of the STR using Google Maps, or similar mapping program, for a Saturday at 8:00 p.m. to determine travel time.

2. Phone Number. Local contact shall provide a phone number to be contacted by City Staff, or contracted third party. A toll-free number or answering service is acceptable, provided that the local contact responds to complaints as outline in this section.

3. Travel Time outside of 30 minutes. If city staff determines that the local contact person is outside the 30-minute response travel time, the applicant must choose a new local contact person that meets the minimum criteria. No permit will be issued without a local contact person that meets these criteria.

4. Response to Complaints. The local contact person shall have 30 minutes to respond to a complaint that is logged by the City’s contracted third party vendor, or the City Police Department. If a telephonic message, text, or email is left or sent by either the third party vendor, or the City Police Department, the local contact shall respond by either calling the renters or going to the rental within 30 minutes of receiving this message.

5. Follow-up. The local contact shall reply to the City’s third party vendor, and email city staff at [email protected] within 24 hours of the complaint and include the following:

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 12 a. Acknowledgement of the complaint received
b. Resolution of complaint

6. Change in local contact. Permittee shall notify city staff within 24 hours of a change to the designated local contact and provide the following:
name, address, email, and telephone number.

Hotline/Complaints. The City shall establish and maintain a non-emergency 24- hour hotline telephone number and electronic messaging system for the express purpose of receiving complaints regarding the operation of any short-term rental property and will forward those complaints to the local contact person for immediate resolution of the complaint, and/or, if necessary, to the Grover Beach Police Department if the complaint has not been resolved within 30 minutes of the initial call to the hotline, consistent with GBMC Article I, Chapter 4.

1. Information Collected. The hotline shall maintain a record of complaints received that include the following information:
a. Date and time of complaint;
b. Nature of complaint;
c. Address of the short-term rental property that is the subject of the complaint;
d. Complainant’s name, address and contact information; e. Actions taken by the hotline attendant in response to the complaint including, but not limited to: persons contacted, including law enforcement, if applicable, and date and time of actions taken in response to complaint; and
f. Corrective action taken by the local contact person in response to complaint.

2. Duration of Registered Complaint. All complaints shall be kept for a maximum of three (3) years from the date the complaint was received.

3. Notification. The owner/operator shall receive a copy of the complaint received through electronic communications (i.e., email).

D. Advertising. The following are requirements to be placed on listing for all platforms and advertisements for STRs.

1. Permit Number. All STR advertisements shall include “Grover Beach STR Permit _____”. This information shall be located in the platform rental summary near the top of the advertisement printed in the same size font as the largest font used in the summary.

2. Maximum Number of Occupants. All STR advertisements shall also include the maximum number of permitted overnight occupants which shall be equal to or less than the maximum number of occupants on the approved STR Permit.

3. Temporary/Permanent Signage. All owners/operators shall not place any signage on the property indicating the use of the property as a short-term rental for safety of guests and owner/operators.

City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 13 E. Responsible Party. As a part of an STR stay or rental, a responsible party must be designated. The responsible party is the person that signs the STR contract, either through a physical form or through a hosting platform. The responsible person is responsible for ensuring all guests and occupants comply with the STR regulations at all times.

F. Rental Unit Requirements. The following are requirements for all rental units or rooms that are to be occupied by guests.

1. Property maintenance. The property is well maintained and clean appearance and is consistent with the submitted site plan.

2. Legible Street Address. The property’s street address numbers are clearly visible from the street using 4-inch numbers and contrast to the color of the mounting surface.

3. Trash / Recycling. Appropriate trash and recycling containers are not visible from the street and accessible to the renter.

4. Exterior Gates. Exterior gates leading to and from the front, side, and/or back yards are not padlocked and can be used in case of an emergency.

5. Required Parking Location and Surfaces. All residences must meet the minimum parking requirements in Development Code Section 3.50.

Surface parking spaces must be a minimum of 9 feet by 18 feet located on an approved hardscape material (Section 4.10.185.H.3). Hardscape materials shall include concrete, asphalt, pavers, gravel base and other acceptable materials as determined by the City Manager. Hardscape materials do not include lawn, landscape areas, dirt, or mulch. Parking spaces shall not block existing sidewalks or if no sidewalk exists, the parking spaces shall not be within the future location of the public sidewalk. If you have questions about the location of future sidewalks, please contact the City’s Public Works Department at (805) 473-4530.

6. Emergency Map. An emergency exit map is posted in an area visible to the renter that illustrates how to exit the property in the event of an emergency.

7. Hallway / Exit Doors. Hallway and exit doors are operational and not obstructed.

8. Double Keys Dead Bolt. Doubled-keyed dead bolt locks are prohibited on all exit doors and must not be present.

9. Minimum Sleeping Room Size. Bedrooms or sleeping rooms occupied by renters shall be a minimum of 7 feet in all directions and not less than 70 square feet in area and have an egress window and door.

City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 14

10. Carbon Monoxide Detector. All STRs shall have a minimum of one carbon monoxide detector with AC power and a battery back-up. This is to be located either in the common room for a residential unit.

11. Smoke Detector. Smoke detectors shall be operational at all times.

Smoke detectors shall be either DC (direct current) with a 10-year battery life or AC (alternating current) with a battery back-up. There shall be a smoke detector located in each bedroom rented as a STR and the hall leading to the bedroom(s). If a living room or sleeping couch is utilized, a smoke detector must also be in place in that area.

12. Fire Extinguisher. All STRs shall one fire extinguisher located in or near the kitchen.

13. Fire Sprinklers. Residences with existing fire sprinkler systems shall have an annual fire sprinkler system inspection indicating the system has “passed”. An STR Permit cannot be issued until an inspection has been performed and passed. Any required repairs shall be performed by a licensed C-16 fire sprinkler contractor prior to issuance of an STR permit.

14. Placement of Permit. The owner/operator shall post the City issued STR permit in a location visible to guests.

15. Good Neighbor Brochure. The owner/operator shall provide the responsible party with the City’s good neighbor brochure either by hardcopy or a link to the City’s website. This link should be included in any “rules” established by the owner/operator.

G. Inspections. For non-owner-occupied units, an inspection shall be completed by city staff prior to issuance of an STR permit to verify the application materials and ensure the STR requirements have been met. A copy of the Non-Owner-Occupied Inspection Checklist is available as a part of the appendix. For owner-occupied STR units, a self-certification inspection is required and needs to be submitted concurrently with an STR application. A copy of the Owner-Occupied Self Certification Checklist is included as a part of the appendix.

City staff may inspect any STR if there is “good cause” for potential violations including but not limited to hotline complaints, code enforcement complaints, notifications from hosting platforms of potential violations, etc. City staff shall notify the owner/operator of an inspection and the owner/operator shall allow an inspection within 72-hours of the notification. A notice of violation may be issued if violations are found.

H. Transfer/Change in Ownership. If the title changes from a person a living trust, where the owners are named as the trustees, notification to the City is required but a new application is not required.

If a STR permit was revoked or suspended and a new STR application is submitted indicating a change of ownership, all previous owners shall be prohibited from City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 15 being part of the new ownership and the new STR application cannot include a spouse or other immediate family member (e.g., siblings, children, parents, grandparents), a change to ownership percentage, name change, or transfer to spouse or other family member (e.g., siblings, children, parents, grandparents).

The City Manager may request additional ownership documents and information to ascertain if the change in ownership is an attempt to allow the STR to be operated by another family member. The City Manager in his independent judgement may deny the new STR permit based on the determination that the new ownership is not a complete change in ownership.

In no event may a permit be transferred when a property is purchased. New owners must apply for a separate permit, and submit all required documents, and fees, etc. If there are no permits available, the new property owner may submit a form to be placed on the waitlist.

I. Minimum Number of Overnight Stays to Maintain Valid Permit. All permits shall have a minimum of 12 overnight stays during the permit year, July 1 through June

30. If an owner does not comply with the minimum number of 12 stays, the permit will be revoked.

9. Violations
Notice of Violations shall be issued to operators of Short-Term Rentals based on the following rules.

1. Advertising without a STR Permit number listed. All permitted shortterm rentals must include their STR number in all advertisements or may result in a violation as follows:
a. A Notice of Violation letter or email will be sent to operators / permittees, providing 14-days to update listings with required information.
b. If the violation remains after 14 days, a follow-up letter / email will be provided to come into compliance, within 7 days. c. If the violation remains, or another violation is found within 90 days, a citation may be issued.

2. Disturbance of the peace violation. A police report is taken for disturbing the peace with a renter / guest staying at an STR shall result in a violation as follows:
a. 1
st Violation within 90 days. A citation may be issued.
b. 2
nd Violation within 90 days. A citation may be issued.
c. 3
rd Violation within 90 day is cause for permit revocation consistent with Development Code Section 4.10.185.L.

3. Failure to Remit Required Taxes. Taxes are required to be remitted, or reported each month, even if no stays are completed. Failure to pay taxes in a timely manner shall result in the following:
a. Fines shall be levied consistent with GBMC Article X, Chapter

6. b. Failure to Make Payments – If TOT or TDM taxes are not remitted in accordance with GBMC Article X, Chapter 6 after 90 City of Grover Beach │ Short-Term Rental Administrative Rules December 2021 Update http://str.groverbeach.org Page 16 days this shall be cause for permit revocation consistent with Development Code Section 4.10.185.L

4. Failure of Local Contact to Respond. A local contact shall respond to a call from the City’s third party vendor within 30 minutes as required by Section 8.C.3. If a local contact does not respond to this phone call as required by Section 8.C.3, this shall result in a violation as follows:
a. First violation, a letter / email will be issued by City staff warning the permittee and the local contact to respond to all calls within 30 minutes.
b. 2
nd Violation within 90 days, a citation may be issued
c. 3
rd Violation within 90 days, a 2nd citation may be issued d. 4
th Violation within 90 days is cause for permit revocation consistent with Development Code Section 4.10.185.L.
e. One violation is considered a call between a 48-hour period (i.e. multiple calls on a weekend is considered one violation).

5. Occupancy Limit Violation. Hosting renters beyond the allowed limit of your permit occupancy shall result in a violation as follows:
a. a. First Violation. A letter shall be sent to the property owner informing them of the violation. Property owner must ensure total number of guests match their allowed occupancy. If there is a police report taken this may be waived to an citation. b. b. 2nd Violation. A citation may be issued. A violation is considered a documented stay identified by the City’s 3rd party vendor within 90 days.
c. c. 3rd Violation. A citation may be issued. A violation is considered a 2nd documented stay identified by the City’s 3rd party vendor within 90 days.

6. Operation of a Short-Term Rental without a Permit. It is illegal to operate a short-term rental without a valid permit. Operations without a STR Permit shall result in the issuance of a Notice of Violation as follows:
a. First Violation. A letter shall be sent to the property owner informing them of the violation and 14 days to comply with either submittal for a permit or removal of the advertisement. b. 2
nd Violation. A citation may be issued. A violation is considered a documented stay identified by the City’s third party vendor within one year.
c. 3
rd Violation. A citation may be issued. A violation is considered a second documented stay identified by the City’s third party vendor within one year.
d. Code enforcement case to be referred to the City Attorney.

7. Noise Violations. No music, musical instrument, phonograph, compact disk player, loudspeaker, karaoke machine, sound amplifier, or any machine, device or equipment that produces or reproduces any sound shall be used outside or be audible from the outside of any short-term rental between the hours of 10:00 p.m. and 7:00 a.m. and the operation of a Short-Term Rental shall be in compliance with the City’s Noise City of Grover Beach │ Short-Term Rentals Administrative Rules December 2021 Update http://str.groverbeach.org Page 17 Ordinance at all times. Failure to comply with the above shall result in a violation as follows:
a. First Violation. A copy of a signed sworn statement by the responding officer along with a warning letter shall be provided to the permittee and local contact.
b. 2
nd Violation within 90 days, a citation may be issued.
c. 3
rdViolation within 90 days, a citation may be issued.
d. 4
th Violation within 90 days is cause for permit revocation consistent with Development Code Section 4.10.185.L.
e. One violation is considered a call between a 48-hour period (i.e. multiple calls on a weekend is considered one violation).

8. Trash Violations.
a. 1
st Violation. A warning letter / email will be sent to the permittee and or local contact. Trash cans shall be removed from the rightof-way within 48 hours of receipt of the letter / email. b. 2
nd Violation within 90 days. A 2nd warning letter / email will be sent to the permittee / local contact. Trash cans shall be removed from the right-of-way within 48 hours of receipt of the letter / email.
c. 3
rd Violation and subsequent violations within 90 days. A citation may be issued.

9. Other Violations. Other violations shall be reviewed by the Community Development Director to determine severity of violations.

10. Revocation of Permit
Revocation of a STR permit shall be consistent with Development Code Section 4.10.185.L and M.

Attachment 3 – STR Locations
Density of STR Permit Holders