Grover Beach City Council
September 25, 2023

AGENDA

GROVER BEACH CITY COUNCIL

GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET

GROVER BEACH, CALIFORNIA
MONDAY, SEPTEMBER 25, 2023, 6:00 PM
Next Resolution No .23-31
Next Ordinance No. 23-03

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

CALL TO ORDER

CALL TO ORDER

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

CLOSED SESSION ANNOUNCEMENTS
On Monday, September 11, at 6:47 p.m., the Council met in Closed Session regarding the following item:

A. Public Employee Performance Evaluation –
Consistent with Government Code Section 54957 (b)(1) Title: (City Attorney) Closed Session Announcements: At 7:24 p.m., Mayor Bright reconvened the meeting in open session with all Council Members present, and announced there were no reportable actions.

AGENDA REVIEW
At this time the City Council will review the order of business to be conducted and receive requests for, or make announcements regarding, any change(s) in the order of the day. The Council should by motion adopt the agenda as presented or as revised.

CEREMONIAL CALENDAR

1. Proclamation for National Hispanic Heritage Month

2. Proclamation for Recovery Month
Meetings can be viewed on Channel 20 and are live streamed on the City’s website via www.slospan.org. Members of the public who cannot attend the meeting in person may provide public comment during the meeting by calling (805) 321-6639 to provide public comment via phone (the phone line will open just prior to the start of the meeting at 6:00 PM) or written public comments can be submitted via email to [email protected] prior to the Council meeting. If submitting written comments in advance of the meeting, please note the agenda item.

Agenda: Grover Beach City Council Meeting Page 2
Monday, September 25, 2023

PRESENTATIONS

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

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

3. Treasurer’s Report for the Period August 1, through August 31, 2023 – Finance Manager Zarate
(Recommended Action: Approve the Treasurer’s Report as submitted.)

VOICE VOTE

4. Treasurer’s Report for the 2022 Streets Bond Account - $10,000,000 for the Period August 1, through August 31, 2023 – Finance Manager Zarate (Recommended Action: Approve the Treasurer’s Report as submitted.)

VOICE VOTE

5. Minutes of the City Council Meeting on Monday, September 11, 2023 – City Clerk Sims
(Recommended Action: Approve the minutes as submitted or revised.)

VOICE VOTE

6. Utility Rate Study Report and Approval of Proposition 218 Noticing – Administrative Services Director Purcell
(Recommended Action: Receive and file the final report from the Utility Rate Study and approve the Proposition 218 noticing process for holding a public hearing on November 13, 2023, on the proposed Water and Wastewater rates.)

ROLL CALL VOTE

7. Resolution to Proceed with Planning for the Issuance of Central Coast Blue Project Financing and Directing the City Manager to Enter into an Agreement for the Financing Team – Administrative Services Director Purcell (Recommended Action: Adopt a resolution to authorize staff to proceed with planning for the issuance of an Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan and/or other financing through the State Revolving Loan Fund or Tax-Exempt Financing and direct the City Manager to enter into agreements for the Financing Team.)

ROLL CALL VOTE
Agenda: Grover Beach City Council Meeting Page 3
Monday, September 25, 2023

8. Introduction and First Reading of an Ordinance Repealing and Replacing Chapter 3 of Article III (Traffic Regulations) of the Grover Beach Municipal Code – Police Chief Peters
(Recommended Action: Conduct the first reading, by title only, and introduce an Ordinance repealing and replacing Chapter 3 of Article III (Traffic Regulations) of the Grover Beach Municipal Code and schedule the second reading and public hearing for the next regularly scheduled meeting.)

ROLL CALL VOTE

9. FY 2022-23 Community Grants Final Report – Assistant City Manager Eriksson (Recommended Action: Receive and file final report by recipients of the FY 2022-23 Community Grants.)

ROLL CALL VOTE

PUBLIC HEARING
None

REGULAR BUSINESS

10. Update on Fireworks Enforcement and Oversight – Police Commander Munro and Five Cities Fire Authority Fire Chief Lieberman
(Recommended Action: Receive an update on the fireworks enforcement and oversight in Grover Beach and provide input and direction.)

11. Facilities Condition and Needs Assessment (CIP 3004) Update – CIP Manager Wiggin and Assistant City Manager Eriksson
(Recommended Action: Receive information about the Facilities Condition and Needs Assessment and provide input and direction to staff.)

PUBLIC COMMUNICATIONS
Any member of the public may address the Council for a period not to exceed three minutes total on any item of interest within the jurisdiction of this Council. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda.

COUNCIL COMMITTEE REPORTS
This item gives the Mayor and Council Members the opportunity to present reports to the other members regarding committees, commissions, boards, or special projects on which they may be participating.

Air Pollution Control District (APCD) Karen Bright (Alt: Robert Robert) Central Coast Blue Regional Recycled Water Authority Karen Bright (Alt: Daniel Rushing) (CCBRRWA)
South SLO County Sanitation District (SSLOCSD) Karen Bright (Alt: Clint Weirick) Integrated Waste Management Authority (IWMA) Robert Robert (Alt: Daniel Rushing) Five Cities Fire Joint Powers Authority Daniel Rushing (Alt: Clint Weirick) SLO Council of Governments / SLO Regional Transit Authority Daniel Rushing (Alt: Karen Bright) (SLOCOG / SLORTA)
South County Transit Committee Daniel Rushing (Alt: Karen Bright) Zone Three Advisory Committee Daniel Rushing (Alt: Karen Bright) Agenda: Grover Beach City Council Meeting Page 4
Monday, September 25, 2023
Homeless Services Oversight Council (HSOC) Clint Weirick (Alt: Zach Zimmerman) SLO County Water Resources Advisory Committee (WRAC) Clint Weirick (Alt: Robert Robert) REACH Zach Zimmerman (Alt: Robert Robert)
South County Chambers of Commerce Zach Zimmerman (Alt: Daniel Rushing) Visit SLO CAL Advisory Committee Zach Zimmerman (Alt: Robert Robert)

COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest.

CITY MANAGER’S REPORTS AND COMMENTS

CITY ATTORNEY’S REPORTS AND COMMENTS

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

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

CITY OF GROVER BEACH

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

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

1.0 DECORUM AND ORDER – IN GENERAL

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

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

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

2.0 DECORUM AND ORDER – COUNCIL MEMBERS

2.1 Manner of Speaking.

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

U2.1(a) Questioning Staff.

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

U2.1(b) Interruptions.

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

3.0 DECORUM AND ORDER – STAFF

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

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

4.0 DECORUM AND ORDER – MEMBERS OF THE PUBLIC

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

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

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

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

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

5.0 ENFORCEMENT OF DECORUM

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

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

PROCLAMATION OF THE GROVER BEACH CITY COUNCIL

DECLARING
SEPTEMBER 15 TO OCTOBER 15, 2023 as
“NATIONAL HISPANIC HERITAGE MONTH”
WHEREAS, in 1968 the observation of Hispanic Heritage Week began under President Lyndon Johnson and was expanded by President Ronald Reagan in 1988 to cover a 30-day period starting on September 15 and ending on October 15; and WHEREAS, National Hispanic Heritage Month celebrates the histories, cultures and contributions of American citizens whose ancestors came from Spain, Mexico, the Caribbean and Central and South America; and
WHEREAS, this year’s theme is “Latinos: Driving Prosperity, Power and Progress in America”; and
WHEREAS, the need to ensure diverse voices and perspectives are welcomed in decision-making processes, thereby helping to build stronger communities and a stronger Nation; and
WHEREAS, we celebrate Hispanic Heritage Month to recognize the achievements and contributions of Hispanic American champions who have inspired others to achieve success; and
WHEREAS, during National Hispanic Heritage Month, we recognize that Hispanic heritage is American heritage.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grover Beach does herby officially proclaim that September 15 to October 15, 2023 as National Hispanic Heritage Month, Inclusivity for a Stronger Nation.

IN WITNESS THEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 25th day of September 2023.

Karen Bright, Mayor
Attest:

Wendi Sims, City Clerk
Agenda Item No. 1

PROCLAMATION OF THE GROVER BEACH CITY COUNCIL
PROCLAIMING SEPTEMBER as
“RECOVERY MONTH”
WHEREAS, The focus of Recovery Month each September is to celebrate all people that make the journey of recovery possible by embracing the tagline, “Recovery is For Everyone: Every Person, Every Family, Every Community.

WHEREAS, recovery from substance use disorders and mental health challenges is a courageous journey that deserves recognition and celebration; and WHEREAS, the stigma surrounding addiction and mental health issues must be challenged and eliminated so that individuals can seek help without fear or shame; and WHEREAS, treatment and support services are available to help individuals achieve and sustain recovery, demonstrating that recovery is possible; and WHEREAS, the Grover Beach community is committed to promoting awareness, support, and access to services for those in need of recovery; and WHEREAS, National Recovery Month, observed every September, provides an opportunity to celebrate the achievements of individuals in recovery, recognize the contributions of treatment providers, and promote the message that recovery is possible for all;
NOW, THEREFORE, BE IT RESOLVED that the Grover Beach City Council does herby officially proclaim the month of September as “Recovery Month”, and we call upon all residents, community organizations, healthcare providers, businesses, and educational institutions to join in supporting individuals on their journey to recovery and to take action to remove the barriers that hinder access to treatment and support services.

IN WITNESS THEREOF, I have hereunto set my hand and caused the Seal of the City of Grover Beach to be affixed this 25th day of September, 2023.

Karen Bright, Mayor
Attest:

Wendi Sims, City Clerk
Agenda Item No. 2

RESOURCES DESCRIPTION
Balance from July 31, 2023 $ 1,415,869.78
Deposits 2,072,199.01
Transferred from L.A.I.F. 1,000,000.00
Check Number Date
Voided Checks 73748 08/30/23 95.49
73638 08/28/23 83.00
73433 08/28/23 151,033.88
Unclaimed Checks 06/30/23 34,465.43
From Street Bond Acct 84,031.77
Total Resources $ 4,757,778.36

EXPENSES

DESCRIPTION PERIOD ENDING CK DATE CHECK NUMBER AMOUNT
WR 08/03/23 73887-73934 280,284.01
PR Direct Deposit 08/06/23 08/10/23 5361353-5361420 158,666.70 WR 08/10/23 73935-73989 574,744.81
WR 08/17/23 73990-74036 183,133.11
PR Direct Deposit 08/20/23 08/25/23 5361421 – 5361482 161,907.64 WR 08/25/23 74037 - 74106 686,580.70
WR 08/31/23 74107 - 74157 643,827.75
Electronic Transfers 633,824.52
Returned Checks,Chargebacks 685.98
Credit Card Payments Service Charge 3,363.10
Total Expenditures $ 3,327,018.32
Cash Balance as of August 31, 2023 $ 1,430,760.04
Respectfully,
Lorena Zarate
Finance Manager

CITY OF GROVER BEACH
Treasurer's Report for September 25, 2023 City Council Meeting August 1, 2023 to August 31, 2023
Agenda Item No. 3

ACCOUNTS PAYABLE
. CHECK DATE 08/17/2023
Check Name Check Amount Check Date Invoice Desc

ABALONE COAST ANALYTICAL
73990 INC 2,873 .00 08/17/2023 HETEROTROPHIC PLATE COUNT & ELAP FEE 73991 Alexander's Contract Services 2,914.64 08/17/2023 METER READING SERVICES 08/01/2023-08/02/2023 73992 AMAZON CAPITAL SERVICES 2,104.16 08/17/2023 Purchases for City Hall 73993 AMERIGAS - SANTA MARIA 155.25 08/17/2023 PROPANE FUEL FOR BOOSTER PUMP 73994 AMY ECHAVARRIA 191.85 08/17/2023 Utility Billing Refund - Closed Account #21403

ARAMARK UNIFORM SERVICES
73995 AUS WEST LOCKBOX 993.33 08/17/2023 UNIFORM SERVICES 07/03/2023 73996 AT&T 125.72 08/17/2023 Monthly water alarm circuits 7 /7 /23-8/6/23 73997 AUTO ZONE INC 64.17 08/17/2023 Unit 201, oil filter, oil 73998 Basanese, Michaela 30.27 08/17/2023 reimbursement for Movie in the Park supplies 73999 BRENNTAG PACIFIC INC. 5,270.70 08/17/2023 BULK AQUAPURE

CALIFORNIA POLICE CHIEFS
74000 ASSOCIATION 155.00 08/17/2023 Membership Dues for Millard 6/2023 to 6/2024 74001 CARQUEST AUTO PARTS 187.83 08/17/2023 Prime Guard 32 WWF, qty 6 74002 CHARTER COMMUNICATIONS 746.94 08/17/2023 City facilities Internet charges - 7 /27 /23-8/26/23 74003 COLD CANYON LANDFILL INC. 463 .50 08/17/2023 STORM BASIN - ROSE COURT RECOVERY 07/06/2023

CONFLUENCE ENGINEERING
74004 SOLUTIONS, INC 3,012 .50 08/17/2023 DOW COMPLIANCE SUPPORT JULY 2023

COUNTY OF SAN LUIS OBISPO CROSS CONNECTION DIRECT & ADMIN COSTS 74005 ENVIRONMENTAL HEALTH SER 1,935.20 08/17/2023 05/02/2023 - 06/28/2023

DEPT OF JUSTICE ACCOUNTING
74006 OFFICE/CASHIERING UNIT 1,225.00 08/17/2023 Livescan for July 2023 74007 Digital West 1,452.00 08/17/2023 Internet for buildings LOC# 102 SERVICE CALL FOR FRONT DOOR OF FIRE
74008 FRANK'S LOCK & KEY 95 .00 08/17/2023 STATION - REPAIRED CLOSING MECHANISM GARING TAYLOR & ASSOCIATES NCMA TG MTG, ZONE 3 TAC MEETING & EMAIL GR 74009 INC. 243.00 08/17/2023 JULY 2023
74010 GSI Water Solutions, Inc 6,846.07 08/17/2023 NCMA 2022 ANNUAL REPORT JULY 2023 74011 Hacienda Gardening 900.00 08/17/2023 PARKS GOPHER TREATMENT JULY 2023

HEACOCK TRAILERS & TRUCK
74012 ACCESSORIES INC. 74.35 08/17/2023 PARTS FOR SEWER JETTER 74013 J.B. DEWAR INC. 3,526.21 08/17/2023 Dept gas statement 8/1/23 to 8/15/23 74014 J.F. Wi ll Company, Inc. 62,520.28 08/17/2023 NORTH 12TH STREET SIDEWALK & CURB REPAIRS 74015 JASON TRUJILLO 42 .21 08/17/2023 Utility Billing Refund - Closed Account #21484 74016 JOSHUA CORE 215 .61 08/17/2023 Utility Billing Refund - Closed Account #21578 74017 LIEBERT CASSIDY WHITMORE 9,745.50 08/17/2023 Professional services rendered through July 31, 2023 74018 Marine Diving Solutions 17,300.00 08/17/2023 CLEANED & INSPECTED TANKS 1,2 & 3 74019 MARIO PEREZ 479.48 08/17/2023 Utility Billing Refund - Closed Acct #21737 74020 Nviro 1,205.66 08/17/2023 WELL 3 CHECK VALVE INSPECTION 74021 PACIFIC GAS AND ELECTRIC 158.65 08/17/2023 Public works electric charges - 7 /7 /23-8/4/23 74022 Peak WiFi.com 69 .95 08/17/2023 NITRATE PLANT INTERNET SERVICES AUGUST 2023 74023 PROCARE JANITORIAL SU PPL Y 773.86 08/17/2023 TOILET TISSUE - 16TH STREET PARK LOC # 109 74024 Ready Refresh by Nestle 347.21 08/17/2023 Bottled water for City Hall-July 2023 74025 RICH ROLSON 625 .00 08/17/2023 Sound Engineer Payment Billy Martini Show Check Name Check Amount Check Date Invoice Desc
74026 Safeware, Inc 3,170.30 08/17/2023 Atpial Assy Std Low/Pro, SWAT equipment 74027 Sunrun Installation Services, Inc. 350.00 08/17/2023 Refund of inspection fee for BP-22-00365 74028 TCA Tools Inc 978.76 08/17/2023 TOOLS FOR SHOP & CORP YARD

THE LINCOLN NATIONAL LIFE
74029 INSURANCE CO 2,338.62 08/17/2023 Employee insurance premiums - Sept 2023 74030 Tyler Technologies, Inc 471.25 08/17/2023 Tyler Complete data analysis

US BANK CORPORATE PAYMENT
74031 SYSTEMS 28,547.74 08/17/2023 City Emloyee Credit Card Cha rges Monthly charges - Com Dev & Parks 6/27 /23-
74032 VERIZON WIRELESS 83 .56 08/17/2023 7/26/23
74033 Wilhelm Wallace 119.31 08/17/2023 Utility Billing Refund on Closing Acct#20451

DEVELOPMENT IMPACT FEE STUDY PROFESSIONAL
74034 Willdan Financial Services 15,830.00 08/17/2023 SERVICES JULY 2023 William Lee Vance Oba The Billy
74035 Martini Show 2,000.00 08/17/2023 Band for the Summer Concerts

ZEE MEDICAL SERVICE COMPANY
74036 #34 174.47 08/17/2023 Zee Medical Inv 34-173593 lstAidKits 8-9-2023 Total $ 183,133.11

DESCRIPTION OF RESOURCES AMOUNT
Balance from July 31, 2023 $ 4,508,511.63
Deposit from Private Improvements:

Transfer in 6/30/2023 1,876.00
Deposit from Interest 8/31/2023 13,834.66
Total Resources $ 4,524,222.29

DESCRIPTION OF EXPENDITURES AMOUNT
Transfers for Staff Time:

Payroll Expenses 15,204.50
Transfers for Construction:

Accounts Payable Expenses 182,728.53
Total Expenditures $ 197,933.03
Cash Balance as of August 31, 2023 $ 4,326,289.26
Respectfully,
Lorena Zarate
Finance Manager

CITY OF GROVER BEACH
2022 STREETS BOND ACCOUNT ($10,000,000)
Treasurer's Report for September 25, 2023 City Council Meeting August 1, 2023 to August 31, 2023
Agenda Item No. 4

MINUTES

CITY COUNCIL MEETING
MONDAY, SEPTEMBER 11, 2023
CALL TO ORDER Mayor Bright called the meeting to order at 6:00 p.m. in the City Hall Council Chamber, 154 South Eighth Street, Grover Beach, California.

FLAG SALUTE The flag salute was led by Gracelyn Fontes, an 11 year-old, 6th grader from Fairgrove Elementary.

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

City Staff: City Manager Matthew Bronson, City Attorney David Hale, Assistant City Manager Kristin Eriksson, City Clerk Wendi Sims, Police Chief John Peters, Community Development Director Megan Martin, Acting Public Works Director/CIP Manager Erin Wiggin, Five Cities Fire Chief Steve Lieberman, and Finance Manager Lorena Zarate were also present.

CLOSED SESSION ANNOUNCEMENTS
City Attorney Hale read the following announcement: On Monday, August 28, 2023, at 8:42 p.m. the City Council to meet in Closed Session regarding the following item:

A. Public Employee Performance Evaluation –
Consistent with Government Code Section 54957 (b)(1) Title: (City Manager) Closed Session Announcements: At 9:37 p.m., Mayor Bright reconvened the meeting in open session with all Council Members present and announced they deliberated on City Manager Bronson’s performance and whether he warrants a salary adjustment and then directed staff to return in open session on September 11th, with a contract amendment No. 3 to his employment agreement. Council will consider in open session on September 11th as to the amount of compensation, if any.

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

CEREMONIAL CALENDAR

1. Proclamation for Patriots Day was read by Council Member Rushing and accepted by Police Chief Peters and Five Cities Fire Authority Fire Chief Lieberman.

2. Proclamation for National POW/MIA Recognition Day was read by Council Member Weirick and accepted by Robert Tolan Jr., Co-Founder of Welcome Home Military Heroes.

Agenda Item No. 5
Minutes: City Council Meeting Page 2
Monday, September 11, 2023

PRESENTATIONS
None
PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda. No one responded and the Mayor closed the Public Communications segment for this portion of the meeting.

CONSENT AGENDA
Prior to consideration of the Consent Agenda, Item No. 5 was pulled pursuant to the requests of Mayor Bright due to Council Member Weirick’s need to recuse himself from voting on that item.

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

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

3. Minutes of the City Council Regular Meeting on Monday, August 28, 2023, and the Special City Council Meeting on Tuesday, September 5, 2023 Action: Approved the minutes as submitted.

4. City Manager Employment Agreement Amendment #3
Action: Approved Amendment #3 to the City Manager Employment Agreement regarding position compensation.

6. Award of Contract for Construction Management Services CIP 2287 – West Grand Avenue Streetscape Project (4th-8th Streets)
Action: Approved an agreement with Cannon Corporation in the amount of $492,410 for construction management services associated with the CIP 2287 – West Grand Avenue Streetscape Project (4th – 8th Streets) and authorize the Mayor to execute the agreement on behalf of the City.)

PULLED CONSENT ITEM
At 6:17 Council Member Weirick recused himself from the dais and left the Chamber.

Minutes: City Council Meeting Page 3
Monday, September 11, 2023

5. Letter of Support for Assembly Constitutional Amendment 13 It was motioned by Council Member Rushing and seconded by Council Member Zimmerman to approve Consent Agenda Item 5 as recommended. The motion carried on the following roll call vote:

AYES: Council Members – Rushing, Zimmerman, Mayor Pro Tem Robert and Mayor Bright
NOES: Council Members – None
ABSENT: Council Members – None
ABSTAIN: Council Members – None
RECUSED: Council Members – Weirick
At 6:20 p.m. Council Member Weirick returned to the dais.

PUBLIC HEARING
None.

REGULAR BUSINESS

7. FY 2022-23 Year-End Financial Review
Mayor Bright read the title to the foregoing item and deferred to staff for a report.

Finance Manager Zarate gave an informative PowerPoint presentation for the 2022-23 Year-End Financial Review.

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

PUBLIC COMMUNICATIONS The Mayor opened the floor to any member of the public for comment on items of interest which were within the jurisdiction of the City Council, but were not listed on the agenda.

No comments were received and the Mayor closed public comment.

COUNCIL COMMITTEE REPORTS
Mayor Bright reported on the SLO Council of Governments (SLOCOG) meeting.

Council Member Weirick gave reports on South SLO Sanitation District (SSLOCSD) and SLO County Water Resources Advisory Committee (WRAC).

Council Member Zimmerman gave an update on the South County Chambers of Commerce.

Minutes: City Council Meeting Page 4
Monday, September 11, 2023

COUNCIL COMMUNICATIONS
Council Member Rushing mentioned the South County Chamber of Commerce Mixer on Wednesday, September 27 at the Exploration Discovery Center on Ramona.

Mayor Pro Tem Robert stated that the yard sale at the Grange was postponed to a later date and will let us know when that is rescheduled.

Council Member Weirick made mention of the various meetings and functions he attended.

Mayor Bright noted that September 16th is National Voter Registration Day, and that September is Spinal Cord Injury Awareness Month.

CITY MANAGER'S REPORTS AND COMMENTS
City Manager Bronson mentioned the Board of Supervisors would be discussing the Oceano Fire Service on Tuesday, September 12th. He also informed the Council that the Public Works department made a presentation at the APWS Conference and Expo in San Diego at the beginning of the month to speak about our Measure K-14 program and that our Police Department was on a panel at the Law Enforcement Conference in Las Vegas to discuss our drone program.

And finally, he mentioned the 34th Annual Dune Run Run coming up on Sunday, September 17th.

CITY ATTORNEY’S REPORTS AND COMMENTS
None

CLOSED SESSION
At 6:47 p.m., the Council met in Closed Session regarding the following item:

A. Public Employee Performance Evaluation –
Consistent with Government Code Section 54957 (b)(1) Title: (City Attorney) Closed Session Announcements: At 7:24 p.m., Mayor Bright reconvened the meeting in open session with all Council Members present, and announced there were no reportable actions.

Minutes: City Council Meeting Page 5
Monday, September 11, 2023

ADJOURNMENT
There being no further business to come before the City Council, Mayor Lee adjourned the meeting at 7:25 p.m.
_____________________________

KAREN BRIGHT, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 6
$3.6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: September 25, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: Utility Rate Study Report and Approval of Proposition 218 Noticing

RECOMMENDATION
Receive and file the final report from the Utility Rate Study and approve the Proposition 218 noticing process for holding a public hearing on November 13, 2023 on the proposed water and wastewater rates.

BACKGROUND
On September 5, 2023, staff and the utility rate study consultant Clayton Tuckfield with Tuckfield and Associates (Tuckfield) presented the Utility Rate Study and preliminary findings and recommendations to the Council. Council subsequently provided direction to staff to return to Council on September 25 for approval to proceed with implementing the Proposition 218 noticing process for holding a public hearing on the proposed water and wastewater rate structure on November 13.

The final version of the Utility Rate Study report is included as Attachment 1. The desired outcome of this study was to ensure that the rates are sufficient to cover costs associated with ongoing maintenance and operations of the water and wastewater utilities. The rates should also fund anticipated capital improvement costs for needed infrastructure improvements and the Central Coast Blue water resiliency project while supporting debt service obligations and maintaining reserves equal to at least six months of typical maintenance and operations expenditures in accordance with industry standards. The key elements of the study included development of the following items:
• Five-year financial plan for the water and wastewater utilities to ensure financial sufficiency, recover operation and maintenance costs, ensure sufficient funding for capital projects, including the Central Coast Blue project, and preserve the health of both utilities • Cost-of-service analysis which calculates the cost to serve each customer class • Water and wastewater rates for FY 2023-24 through FY 2027-28 that are fair, equitable, and in proportion to the cost of providing service to the City’s customers.

The wastewater rates cover the City’s cost of ongoing operations, maintenance and repair of the City’s wastewater collection system. The cost for treatment by the South San Luis Obispo County Sanitation District (District) were not studied and are a direct pass-thru from the District as these costs are billed to ratepayers with revenue remitted by the City to the District.

Staff Report: Utility Rate Study Report and Proposition 218 Noticing Process Page 2 September 25, 2023

Findings and Recommendations
The revenue analysis as part of the study concludes that revenue projections from the water and wastewater utilities for FY 2023-24 through FY 2027-28 based on existing rates are insufficient to keep pace with increasing operating, capital improvement, and debt service obligation costs. As a result, the study recommends annual water rate increases of 19.7% for years 1-4 beginning in January 2024 along with a 4% increase in year 5 and annual wastewater rate increases of 19.5% for years 1-4 beginning in January 2024 along with a 4% increase in year 5. The average bimonthly bill for residential water customers using 15 units per billing period is projected to increase from $94 to $120 ($26 increase bi-monthly or $13 per month). For wastewater customers, the projected increase is from $26 to $31 ($5 increase bi-monthly or $2.50 per month). The combined total increase is from $120 to $151 ($31 increase bi-monthly or $15.50 per month). This total does not include the bi-monthly South San Luis Obispo County Sanitation District charge of $50.98 where there is no change in rates and were not involved in this study.

Attachment 2 shows how current and recommended utility rates in Grover Beach compare with other cities and unincorporated areas in the county. Currently, the City’s water rates are the lowest in the county and the wastewater rates are the third lowest. If the proposed rate increases are adopted and go into effect in January 2024, both the water and wastewater rates would be the third lowest in the county behind Paso Robles and Atascadero for water and Oceano and Arroyo Grande for wastewater. Modernizing and upgrading utility infrastructure is occurring throughout the county with resulting rate increases enacted or in process by respective communities.

Lastly, staff would add that the City has a Utility Assistance Program that provides a billing discount to low-income customers that are enrolled in the PG&E or Gas Company Care Program.

The Council approved this program several years ago and the operating budget allocates $50,000 annually paid out of the General Fund. Given that the billing discount will be greater with the rate increases, the Council provided direction to staff to identify an increased amount of funding for this program as part of the mid-year budget review in February 2024. Staff projects that approximately $10,000 in additional funding may be needed but this number will be refined and presented to the Council in February.

Staff is seeking Council approval to proceed with implementing the Proposition 218 noticing process for holding a public hearing on November 13 on changes to the water and wastewater rates. Notices would be sent out to customers to inform them of the recommended rate increases and the November 13th public hearing. This notice is shown as Attachment 3 and will be sent out in both English and Spanish pursuant to Council direction. Pending the public hearing and a related protest vote of less than 50% plus one along with subsequent Council action approving the rates, the new rates would go into effect on January 1, 2024 with the first billing sent out in the spring.

FISCAL IMPACT
The Utility Rate Study has identified insufficient revenue in the Water and Wastewater Funds.

Tuckfield is recommending rate increases to eliminate the projected revenue deficiencies in funding the necessary operating and capital reserves along with requirements for reserves and debt service for these Enterprise Funds. The recommended rate increases would result in additional Water Fund revenue of approximately $318,000 and additional Wastewater Fund revenue of $77,000 for FY 2023-24.

Staff Report: Utility Rate Study Report and Proposition 218 Noticing Process Page 3 September 25, 2023

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive and file the final report from the Utility Rate Study and approve the Proposition 218 noticing process for holding a public hearing on November 13, 2023 on the proposed water and wastewater rates; or

2. Do not approve the Proposition 218 noticing process for holding a public hearing on November 13, 2023; or

3. Provide alternate direction to staff.

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

Attachments

1. Utility Rate Study

2. Utility Billing Comparison with Other Communities in San Luis Obispo County

3. Proposition 218 Notice to Property Owners
Submitted By:

Tuckfield & Associates
Contact: Mr. Clayton Tuckfield
2549 Eastbluff Dr, #450B
Newport Beach, CA 92660
(949) 760-9454
www.tuckfieldassociates.com
September 2023
Report To:

City of Grover Beach
154 S. Eighth Street
Grover Beach, CA 93433
(805) 473-4550
Report on
Water and Wastewater
Rate Study
Attachment 1
[This Page Intentionally Left Blank for Two-sided Printing] Tuckfield & Associates
2549 Eastbluff Drive, Suite 450B, Newport Beach, CA 92660 Phone (949) 760-9454 Fax (949) 760-2725
Email [email protected]
September 8, 2023
Ms. Deanne Purcell
Administrative Services Director
City of Grover Beach
154 S. Eighth Street
Grover Beach, CA 93433
Dear Ms. Purcell:

I am pleased to present this Water and Wastewater Rate Study (Study) report to the City of Grover Beach (City).

The water and wastewater rates presented in this report have been developed based on cost of service principles and industry methods that result in fair and equitable rates for the users of the water and wastewater system in accordance with Proposition 218.

This Study includes the City’s share of capital and operation and maintenance costs of the future Central Coast Blue (CCB) project into the City’s Water Fund. CCB is a regional recycled water project that will create a new, high quality, and reliable water supply for the communities of Pismo Beach, Grover Beach, and Arroyo Grande.

These cities are designing and building a new advanced water purification facility to create a high-quality water source to supplement local supplies.

The CCB project will allow the cities of Grover Beach, Pismo Beach, and Arroyo Grande to have sufficient water supplies even in times of drought. The facilities of the CCB project include pipelines and storage of recycled water, advanced treatment, recycled water pump station, and injection wells. The City’s share of the CCB project is 36 percent, whereas the City of Pismo Beach and Arroyo Grande’s share is 39 percent and 25 percent respectively.

This study includes a review and analysis of the water and wastewater enterprise revenue and revenue requirements, number of customers, volumes, and current rate structure. The major objectives of the Study include the following.
 Generate positive levels of income in the Study period  Maintain operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement and improvement requirements through revenue from rates and charges, financing, and reserves
This report presents the findings and recommendations for the financial plans and rates for the City’s water and wastewater enterprises. Tables and figures throughout the report are provided to demonstrate the calculations.

Ms. Deanne Purcell Page 2
City of Grover Beach September 8, 2023
It has been a pleasure to work with City staff during the performance of this study. If there are any questions, please contact me at (949) 760-9454.

Very Truly Yours,

TUCKFIELD & ASSOCIATES
G. Clayton Tuckfield
President/Project Consultant
Water and Wastewater Rate Study
City of Grover Beach
Table of Contents
Page
Executive Summary ............................................................................................... 1 Water Financial Plan ....................................................................................................................................... 1 Proposed Water Rates .................................................................................................................................... 2 Current Water Rates ................................................................................................................................ 2 Proposed Water Rate Structure and Rates ............................................................................................. 3 Water Bill Impacts ........................................................................................................................................... 3 Water Rate Survey .......................................................................................................................................... 4 Wastewater Financial Plan .............................................................................................................................. 5 Proposed Wastewater Rates .......................................................................................................................... 6 Current Wastewater Rates ...................................................................................................................... 6 Proposed Wastewater Rate Structure and Rates.................................................................................... 6 Wastewater Bill Impacts .................................................................................................................................. 6 Wastewater Rate Survey ................................................................................................................................ 7 Introduction ............................................................................................................. 9 Background ..................................................................................................................................................... 9 Objectives ...................................................................................................................................................... 10 Scope of Study .............................................................................................................................................. 10 Assumptions ......................................................................................................... 10 Reserve Policy .............................................................................................................................................. 11 Beginning Balances and Reserve Targets .................................................................................................... 12 Water Financial Planning ..................................................................................... 12 Current Water Rates ..................................................................................................................................... 12 Water User Classifications ............................................................................................................................ 13 Number of Customers............................................................................................................................ 13 Number of Water Meters ....................................................................................................................... 13 Water Sales Volumes ............................................................................................................................ 14 Water Financial Plan ..................................................................................................................................... 14 Revenues ............................................................................................................................................... 15 Miscellaneous Revenues ............................................................................................................... 15 Revenue Requirements ......................................................................................................................... 16 Operation and Maintenance Expense ............................................................................................ 16 Lopez Water Supply Expense ........................................................................................................ 16 Central Coast Blue Project Expense .............................................................................................. 16 Water and Wastewater Rate Study
City of Grover Beach
Table of Contents (continued)
Page
JPA O&M Expense ........................................................................................................................ 16 CCB Operating and Capital Reserves Expense ............................................................................ 16 Capital Improvement Funding ........................................................................................................ 17 Debt Service ................................................................................................................................... 17 Water Capital Improvement Program .................................................................................................... 18 Water Financial Plan .............................................................................................................................. 18 Proposed Revenue Adjustments.................................................................................................... 19 Water Cost of Service .......................................................................................... 21 Industry Methodology .................................................................................................................................... 21 Costs of Service to be Allocated ................................................................................................................... 22 Water Rate Design ................................................................................................ 22 Proposed Rate Structure ............................................................................................................................... 23 Proposed Fixed Charges ..................................................................................................................... 23 Proposed Variable Charges ................................................................................................................. 24 Tier Definitions................................................................................................................................ 24 Deliver Costs .................................................................................................................................. 24 Peaking Costs ................................................................................................................................ 25 Water Supply Costs........................................................................................................................ 25 Water Conservation Costs ............................................................................................................. 26 Proposed Variable Rates ............................................................................................................... 26 Proposed Water Rates .................................................................................................................................. 27 Water Bill Impact Analysis ................................................................................... 28 Water Rate Survey ................................................................................................ 30 Wastewater Financial Planning ........................................................................... 31 Current Wastewater Rates ............................................................................................................................ 31 Wastewater User Classifications ................................................................................................................... 32 Number of Customers............................................................................................................................ 32 Wastewater Financial Plan ............................................................................................................................ 32 Revenues ............................................................................................................................................... 32 Miscellaneous Revenues ............................................................................................................... 33 Revenue Requirements ......................................................................................................................... 33 Operation and Maintenance Expense ............................................................................................ 33 Capital Improvement Funding ........................................................................................................ 33 Water and Wastewater Rate Study
City of Grover Beach
Table of Contents (continued)
Page
Debt Service .......................................................................................................................................... 34 Wastewater Capital Improvement Program........................................................................................... 34 Wastewater Financial Plan .................................................................................................................... 35 Proposed Revenue Adjustments.................................................................................................... 35 Wastewater Cost of Service ................................................................................ 37 Wastewater Rate Design ...................................................................................... 38 Proposed Wastewater Rates ................................................................................................................. 38 Wastewater Bill Impact Analysis ......................................................................... 39 Wastewater Rate Survey ...................................................................................... 40 List of Tables
Table ES-1 Proposed Water Fixed Charges and Variable Charges ................................................................. 2 Table ES-2 Comparison of Current Single-family Residential Bi-Monthly Bills with a 3/4-inch Meter with Proposed Bills Using January 2024 Water Rates ......................................................................... 3 Table ES-3 Proposed Wastewater Fixed Charges ........................................................................................... 6 Table 1 Assumptions and Planning Factors .............................................................................................. 11 Table 2 June 30, 2022 Beginning Cash Balances and Reserve Targets .................................................. 12 Table 3 Current Water Rates .................................................................................................................... 13 Table 4 Historical and Projected Water Customers by Classification ....................................................... 13 Table 5 Historical and Projected Number of Water Meters by Size .......................................................... 14 Table 6 Historical and Projected Water Consumption (in HCF) ................................................................ 14 Table 7 Projected Rate-based Water Revenue Using Existing Rates ...................................................... 15 Table 8 Projected Miscellaneous Water Revenue .................................................................................... 15 Table 9 Projected Water Operation and Maintenance Expense ............................................................... 17 Table 10 Water Capital Improvement Program ........................................................................................... 18 Table 11 Water Financial Plan .................................................................................................................... 19 Table 12 Allocation of Water Revenue Requirements to Cost Component ................................................ 22 Table 13 Design of Monthly Water Fixed Charges ..................................................................................... 23 Table 14 Design of Monthly Fixed Charges by Meter Size ......................................................................... 24 Table 15 Design of Uniform Volume Rate for Delivery Costs ..................................................................... 25 Table 16 Design of Residential Peaking Rate ............................................................................................. 25 Table 17 Design of Water Supply Rate by Tier ........................................................................................... 26 Table 18 Design of Residential Conservation Rate..................................................................................... 26 Water and Wastewater Rate Study
City of Grover Beach
Table of Contents (continued)
Page
Table 19 Design of Water Variable Rates ................................................................................................... 27 Table 20 Proposed Water Fixed Charges and Variable Charges ............................................................... 28 Table 21 Comparison of Current Single-family Residential Bi-Monthly Water Bills with a 3/4-inch Meter With Proposed Bills Using January 2024 Water Rates ................................................................ 29 Table 22 Current Wastewater Rates ........................................................................................................... 31 Table 23 Historical and Projected Wastewater Customers by Classification .............................................. 32 Table 24 Projected Rate-based Wastewater Revenue Using Current Rates ............................................. 33 Table 25 Projected Miscellaneous Wastewater Revenue ........................................................................... 33 Table 26 Projected Wastewater Operation and Maintenance Expense ..................................................... 34 Table 27 Wastewater Capital Improvement Program ................................................................................. 35 Table 28 Wastewater Financial Plan ........................................................................................................... 36 Table 29 Proposed Wastewater Rates ....................................................................................................... 39 List of Figures
Figure ES-1 Current and Future Single-family Residential Bi-monthly Water Bills at 15 HCF ........................... 4 Figure ES-2 Current and Future Single-family Residential Bi-monthly Wastewater Bills ................................... 7 Figure 1 Water Financial Plan Comparison of Revenue with Revenue Requirements .............................. 20 Figure 2 Water Reserves versus Target Reserves .................................................................................... 21 Figure 3 Current and Future Single-family Residential Bi-monthly Water Bills at 15 HCF ......................... 29 Figure 4 Wastewater Financial Plan Comparison of Revenue with Revenue Requirements .................... 37 Figure 5 Wastewater Reserves versus Target Reserves ........................................................................... 38 Figure 6 Current and Future Single-family Residential Bi-monthly Wastewater Bills ................................. 40 List of Charts
Chart ES-1 Single-family Residential Bi-Monthly Water Bills Using 15 HCF .................................................... 5 Chart ES-2 Single-family Residential Bi-Monthly Wastewater Bills .................................................................. 8 Chart 1 Single-family Residential Bi-Monthly Water Bills Using 15 HCF .................................................. 30 Chart 2 Single-family Residential Bi-Monthly Wastewater Bills Using ...................................................... 41 Appendix
Appendix A-1 Allocation of Water Revenue Requirements to Cost Component ............................................... 43 Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 1
Executive Summary
The City of Grover Beach (City) engaged Tuckfield & Associates to conduct a comprehensive Water and Wastewater Rate Study (Study) for its utility enterprise systems. This Study includes development of pro forma statements of revenues and revenue requirements for each system, analyses to determine the costs of providing service, and design of new rates and charges for implementation.

Water Financial Plan
The revenue and revenue requirements of the water system were identified and projected to create a forwardlooking financial plan of the water system. Annual costs of the water system include operation and maintenance (O&M) expense, Lopez water supply expense, Central Coast Blue (CCB) project O&M expense and debt service payments, Joint Powers Authority (JPA) expense and reserves contribution, existing debt service payments, and annual capital improvement funding.

The projections of O&M expense include the City’s FY 2023-24/2024-25 budget expenses for two years of projection with future expenses projected through application of inflation factors to budget year expenses.

Projections of Lopez water supply operating and capital expenses are from San Luis Obispo County projections.

The cities of Grover Beach, Pismo Beach, and Arroyo Grande are advancing the CCB project. CCB is a regional recycled water project that will utilize treated wastewater which is currently discharged to the ocean to increase groundwater supplies, and secure a sustainable, drought-resistant local water supply. CCB is intended to be a critical component of the future drinking water supply portfolio for the local cities and will help protect against the threat of seawater intrusion into their groundwater supplies and future droughts in the State of California.

The project is a multi-city collaboration between the City of Grover Beach, Pismo Beach, and Arroyo Grande.

Estimates of CCB O&M expense and construction financing are included in the water enterprise financial plan.

The City’s share of CCB O&M expense is projected to begin January of 2026 at an estimated annual cost of $1,225,800 inflated at 4 percent annually. New debt is proposed that will provide $22.205 million of proceeds in early 2024 to finance the construction of the City’s allocated cost of the CCB project. The debt issue has an assumed interest rate of 5 percent and a 30-year term with interest only payments for the first three years.

The City also has existing debt service from a 2020 debt issue with an annual payment of about $280,000.

A JPA has been created to manage the CCB project operations which will be supported by all three cities. The City is projected to pay its share of JPA O&M expense of about $60,000 annually. An operating reserve equal to 6 months of operating expense and a capital reserve for the CCB project will be funded proportionally by all three cities. The City will make a one-time payment of $612,900 in January 2026 while capital reserves will be funded at about $368,600 annually for the CCB project.

The City has prepared a five-year Capital Improvement Program (CIP) spending plan that includes improvements and various replacements. Major projects of the CIP include CCB pre-construction and construction costs, reservoir maintenance, water meter replacement program, and 16th Street Booster Station project. CIP expenditures total about $26.1 million over the study period. The costs of the CIP are proposed to be financed with the annual water revenue, CCB grants, capital reserves, and the proposed new debt issue in FY 2023-24.

Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 2
An analysis was performed that compared the projected revenue using the City’s current water rates with the projected revenue requirements (costs) of the water system. The analysis indicated that the current level of revenue received is not sufficient to meet future obligations and revenue increases are recommended to adequately meet revenue requirements, debt coverage requirements, and other financial planning criteria.

The revenue increases include 19.7 percent revenue increases beginning on January 1, 2024 through January 1, 2027, followed by 4.0 percent increases beginning January 1, 2028 for two years. The water financial plan is presented in Table 11.

Proposed Water Rates
Current Water Rates
The current water rates consist of fixed charges by meter size and variable charges. All customers are charged a fixed charge for the meter size at the property location. Residential customers are charged a three-tier variable rate structure while all other customers are charged a uniform volume charge. The Residential tiered variable charges apply to blocks of water consumption. Table ES-1 and Table 3 provide the current water rates charged to water customers.

Table ES-1
Proposed Water Fixed and Variable Charges
Current Proposed
Rate Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96

1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Non-Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $24.71 $26.87 $32.17 $38.51 $46.10 $47.95
1" $27.52 $29.85 $35.74 $42.79 $51.22 $53.27

1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Variable Charge ($ per HCF)
Residential
Tier 1 - 0 to 10 units $2.99 $4.20 $5.03 $6.03 $7.22 $7.51 Tier 2 - 11 to 22 units $6.17 $8.51 $10.19 $12.20 $14.61 $15.20 Tier 3 - Over 22 units $8.90 $11.91 $14.26 $17.07 $20.44 $21.26 Landscape $6.72 $9.11 $10.91 $13.06 $15.64 $16.27
All Other $6.47 $7.90 $9.46 $11.33 $13.57 $14.12
Classification
Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 3
Proposed Water Rate Structure and Rates
The proposed water rate structure keeps the current fixed and variable charge rate structure for all customers.

Table ES-1 presents the proposed water rates to be adopted January 2024 and for future years.

Water Bill Impacts
Table ES-2 presents the impacts to Residential bills from the implementation of the proposed January 2024 water rates. For a Single-family Residential customer with a 3/4-inch meter using the average consumption of 15 hundred cubic feet (HCF) bi-monthly, the bill will increase from $90.69 to $120.37, an increase of $26.68, or 28.5 percent. The percentage increase in water bills for January 1, 2024 does not match the overall revenue increase of 19.7 percent from the water financial plan due to costs of service adjustments in this year. Future year’s water bills increase following the revenue increases in the water financial plan.

Figure ES-1 provides how Single-family Residential bills with a 3/4-inch meter using the bi-monthly average consumption of 15 HCF will escalate over time with implementation of the proposed water rates from Table ES1.

Table ES-2
Comparison of Current Single-family Residential Bi-Monthly Bills with a 3/4 -inch Meter with Proposed Bills Using January 2024 Water Rates
Current Bill Proposed FY 23-24 Bill
Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $32.94 $0.00 $32.94 $35.82 $0.00 $35.82 $2.88 8.7%
Very Low 5 $32.94 $14.95 $47.89 $35.82 $21.00 $56.82 $8.93 18.6% Low 10 $32.94 $29.90 $62.84 $35.82 $42.00 $77.82 $14.98 23.8% Median 12 $32.94 $42.24 $75.18 $35.82 $59.02 $94.84 $19.66 26.2% Average 15 $32.94 $60.75 $93.69 $35.82 $84.55 $120.37 $26.68 28.5% 20 $32.94 $91.60 $124.54 $35.82 $127.10 $162.92 $38.38 30.8% High 30 $32.94 $175.14 $208.08 $35.82 $239.40 $275.22 $67.14 32.3% Very High 50 $32.94 $353.14 $386.08 $35.82 $477.60 $513.42 $513.11 33.0% Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 4
Water Rate Survey
Chart ES-1 has been prepared to compare Grover Beach’s average SFR water bill with a 3/4-inch meter using 15 HCF with those of other communities at the same consumption. The chart indicates that with the January 2024 rates, a Grover Beach SFR customer with a bi-monthly consumption of 15 HCF will experience a bill that is among the lowest of the communities listed.

Figure ES-1
Current and Future Single-family Residential Bi-monthly Water Bills at 15 HCF Proposed
SFR Charges Current FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Fixed Charges $32.94 $35.82 $42.88 $51.34 $61.46 $63.92 Variable Charges 60.75 84.55 101.25 121.30 145.25 151.10 Total Charges $93.69 $120.37 $144.13 $172.64 $206.71 $215.02 Dollar Change $26.68 $23.76 $28.51 $34.07 $8.31
Percent Change 28.5% 19.7% 19.8% 19.7% 4.0%
$93.69
$120.37
$144.13
$172.64
$206.71 $215.02
$0
$50
$100
$150
$200
$250
Current FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Fixed Charges Variable Charges
Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 5
Wastewater Financial Plan
The revenue and revenue requirements of the wastewater system were identified and projected to create a forward-looking financial plan of the wastewater system. Annual costs include O&M expense, capital improvement funding, and debt service. Future O&M expenses include the City’s FY 2023-24/2024-25 budget expenses for the first two years with future expenses projected through application of inflation factors to budget year expenses.

The City has prepared a five-year CIP spending plan for the wastewater system. Major projects of the CIP include sewer upgrades, South Oak Park lift station, and city-wide sewer lining projects. CIP expenditures total about $8.2 million over the Study period. The CIP expenditures are planned to be funded through the rate revenue, debt proceeds from a new debt issue, and reserves.

An analysis was performed that compared the projected revenue using the City’s current wastewater rates with the projected revenue requirements (costs) of the wastewater system. The analysis indicated that the current level of revenue received is not sufficient to meet future obligations and revenue increases are recommended to adequately meet revenue requirements, debt coverage requirements, and other financial planning criteria. The increases include 19.5 percent revenue increases beginning on January 1, 2024 and on each January 1 through 2027, followed by 4.0 percent increases each January 1 for the remaining years of the Study. The wastewater financial plan is presented in Table 31.

Chart ES-1
Single-family Residential Bi-Monthly Water Bills Using 15 HCF For Rates in Effect July 2023
Note: Above table uses water rates in effect July 2023. Grover Beach January 2024 bill is based on the rate structure and rates in Table ES-1. Grover Beach includes 1% utility tax.

Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 6
Proposed Wastewater Rates
Current Wastewater Rates
The current wastewater rates consist of fixed charges for all customers. Single-family Residential, Boarding House, Hotel/Motel/Auto Court, Mobile Home, and Multifamily customers are charged by the dwelling unit. Nonresidential customers may be charged a fixed charge or a combination of a fixed charge and additional employee or other measure. The current rates are provided in Table ES-3 and Table 23.

Proposed Wastewater Rate Structure and Rates
The proposed wastewater rate structure keeps the current rate structure in place for the proposed wastewater rates. Wastewater rates are updated with the analyses of this Study. Table ES-3 presents the proposed wastewater rates for the next five years.

Wastewater Bill Impacts
From inspection of Table ES-3, an SFR customer will have a bi-monthly bill that will increase from $76.60 [($12.82 + $25.48) x 2] which includes the $25.48 monthly South San Luis Obispo County Sanitation District (SSLOCSD) treatment charge, to $81.60 [($15.32 + $25.48) x 2], an increase of $5.00, or 6.5 percent.

Table ES-3
Proposed Wastewater Fixed Charges
Current Proposed
Classification Charge Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge ($ per month)
Boarding House (per unit) $15.54 $18.57 $22.19 $26.52 $31.69 $32.96 Per Bedroom Charge 10.00 11.95 14.28 17.06 20.39 21.21
Car Washes & Laundromats (min charge) 6.19 7.40 8.84 10.56 12.62 13.12 Per 100 cubic feet above minimum 0.00 0.00 0.00 0.00 0.00 0.00 Church 15.06 18.00 21.51 25.70 30.71 31.94
Per parsonage or dwelling unit 12.82 15.32 18.31 21.88 26.15 27.20 Commercial Establishment (Public place up to 5 Fixtures) 15.04 17.97 21.47 25.66 30.66 31.89 Each additional fixture 4.12 4.92 5.88 7.03 8.40 8.74
Factories, Industrial Plants (20 employees or less) 10.12 12.09 14.45 17.27 20.64 21.47 Each additional employee over 20 1.16 1.39 1.66 1.98 2.37 2.46 Hotel, Motel Auto Court or Lodge (per unit) 15.45 18.46 22.06 26.36 31.50 32.76 Mobile Home (per space) 12.82 15.32 18.31 21.88 26.15 27.20 Restaurants (min charge) 2.14 2.56 3.06 3.66 4.37 4.54
Per 100 cubic feet against minimum 0.00 0.00 0.00 0.00 0.00 0.00 Schools (min annual charge per ADA and employee) 3.31 3.96 4.73 5.65 6.75 7.02 Schools with Cafeterias (additional) Per ADA and employees 1.38 1.65 1.97 2.35 2.81 2.92 Single-Family Dwelling Unit 12.82 15.32 18.31 21.88 26.15 27.20 Theater, Clubhouse or Place of Amusement 15.04 17.97 21.47 25.66 30.66 31.89 Travel Trailer and Recreation Vehicle Space 6.60 7.89 9.43 11.27 13.47 14.01 Multi-family, Two or More Dwellings (per unit) 12.82 15.32 18.31 21.88 26.15 27.20 Per each coin-operated washer 2.80 3.35 4.00 4.78 5.71 5.94 Excess Discharge per 100 cubic feet $0.40 $0.48 $0.57 $0.68 $0.81 $0.84 Water and Wastewater Rate Study  City of Grover Beach
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Figure ES-2 shows how the SFR bi-monthly wastewater bill will increase over time from the implementation of the proposed wastewater rates from Table ES-3. The figure assumes a constant SSLOCSD treatment charge which is included in the wastewater bill.

Wastewater Rate Survey
Chart ES-2 has been prepared to compare Grover Beach’s SFR wastewater bill with those of other communities.

The chart indicates that Grover Beach’s SFR wastewater bill is among the lowest of the communities listed.

Figure ES-2
Current and Future Single-family Residential Bi-monthly Wastewater Bills Proposed
SFR Charges Current FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Fixed Charges $25.64 $30.64 $36.62 $43.76 $52.30 $54.40 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Fixed Charges $76.60 $81.60 $87.58 $94.72 $103.26 $105.36 Dollar Change $5.00 $5.98 $7.14 $8.54 $2.10
Percent Change 6.5% 7.3% 8.2% 9.0% 2.0%
$76.60
$81.60
$87.58
$94.72
$103.26 $105.36
$0
$20
$40
$60
$80
$100
$120
Current FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fixed Charges
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Chart ES-2
Single-family Residential Bi-Monthly Wastewater Bills
For Rates in Effect July 2023
Note: Above table uses wastewater rates in effect July 2023. Grover Beach January 2024 bill is based on the rate structure and rates in Table 29. Grover Beach, Arroyo Grande, and Oceano CSD bill includes the SSLOCSD treatment charge. Grover Beach also includes the storm water charge.

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Introduction
The City of Grover Beach (City) engaged Tuckfield & Associates to conduct a comprehensive Water and Wastewater Rate Study (Study) for its water and wastewater enterprise systems. This Study includes development of pro forma statements of revenues and revenue requirements for each enterprise, analyses to determine the cost of providing service, and design of new water and wastewater rates and charges for implementation.

Background
The City of Grover Beach (City) is located along the central coast of the state of California in San Luis Obispo County, north of Los Angeles by approximately 175 miles. The City has a population of over 12,400 and provides water and wastewater service within the City limits. Water and wastewater service is accounted for in separate enterprise funds. The City relies upon user charges to meet all financial obligations of each enterprise fund.

The City obtains its water supply from two sources consisting of groundwater wells and a surface water entitlement to the Lopez Reservoir Project. The City obtains groundwater from the TriCities Mesa – Arroyo Grande Plain of the Santa Maria Valley Groundwater Basin (SMVGB). The City shares this groundwater supply with the Cities of Arroyo Grande and Pismo Beach, Oceano CSD, and other agricultural uses. The City also receives an entitlement of 800 ac-ft of surface water from the Lopez Reservoir through a 1965 agreement with the San Luis Obispo County Flood Control and Water Conservation District (District) that was updated in August 2000. Surplus water from the Lopez Reservoir may be available to the City depending upon rainfall and the availability of water supply for downstream release. The water system also includes four storage reservoirs, water treatment facilities, booster stations, and transmission and distribution facilities including over 29 miles of pipeline ranging in size from 2 to 16 inches in diameter.

In an effort to protect the Northern Cities Management Area (NCMA) section of the SMVGB from seawater intrusion, the cities of Grover Beach, Pismo Beach, and Arroyo Grande are advancing the Central Coast Blue (CCB) project. CCB is a regional recycled water project that will utilize treated wastewater which is currently discharged to the ocean to increase groundwater supplies, and secure a sustainable, drought-resistant local water supply.

CCB is intended to be a critical component of the future drinking water supply portfolio and will help protect against the threat of seawater intrusion into their groundwater supplies and future droughts in the State of California. The project would involve recharging the SMVGB with purified water via injection wells. Recycled water would be sourced from two of the region’s wastewater treatment facilities, the Pismo Beach Wastewater Treatment Plant (PBWWTP) and the South San Luis Obispo County Sanitation District (SSLOCSD) wastewater treatment plant.

The wastewater system consists of seven lift stations, sewer access holes, and over 26 miles of sewer collection pipe to collect the City’s wastewater. The City has contracted with the South San Luis Obispo County Sanitation District (SSLOCSD) to provide wastewater treatment services for the City’s wastewater. The elements of the contract are delineated in an agreement dated October 1, 1991 between the City and SSLOCSD. Treatment charges for service are determined by SSLOCSD and are included on the customer’s bi-monthly bill. Treatment and disposal costs are charges and are not included in the City’s wastewater rates.

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Objectives
The objectives of this Study are to (1) review the current and future financial status of each of the water and wastewater enterprises, (2) make any adjustments to the revenue being received to ensure that revenue requirements are being met now and, in the future, including adequate reserves and debt service coverage, and (3) design water and wastewater rates that generate the required revenue while being fair and equitable for its customers. Additionally, the Study also sought to provide the following.  Revenue sufficiency to fund operating and capital needs  Appropriate levels of operating and capital reserves
 Cost of service allocations following appropriate standards, regulations, and guidelines  Rates that are consistent with industry practice
 Ease of understanding and administration of the rates Scope of the Study
This Study includes the findings and recommendations of analyzing each of the water and wastewater enterprise’s financial status and related CIP. Historical trends were analyzed from data supplied by the City showing the number of customers, volumes, revenue, and revenue requirements.

Revenue requirements of each enterprise include O&M expense, capital improvement funding, transfers, debt service, and additions to reserves. Changing conditions such as additional facilities, system growth, employee additions/reductions, and non-recurring maintenance expenditures are recognized. Inflation for ongoing expenditures is included to reflect cost escalation.

The financial plan and rates developed herein are based on funding of the capital improvement plan as stated as well as estimates of O&M expenses developed from information provided by the City. Deviation from the financial plans, construction cost estimates and funding requirements, major operational changes, or other financial policy changes that were not foreseen, may result in the need for lower or higher revenue than anticipated. It is suggested that the City conduct an update to the rate study at least every five years for prudent rate planning.

Assumptions
Several assumptions were used to conduct the Study for the period FY 2022-23 to FY 2027-28. The assumptions included growth rates in customer accounts and annual consumption, expense inflation factors, and other assumptions used for projecting revenue and expense and estimating debt service payments. The financial planning assumptions are provided in Table 1.

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Reserve Policy
The City currently does not have written reserve policies regarding the level of reserves to be maintained for the water and wastewater enterprises. The City does have reserve policy goals for maintaining reserves for water and wastewater operations and capital reserves. The reserve goals provide a means to meet unanticipated reductions in revenues, changes in the costs of providing services, fixed asset repair and replacement, natural disaster, and other issues. The reserves also provide guidelines to maintain the financial health and stability of the enterprise funds.

To develop the financial plans presented in this Study, certain reserve targets have been established with the intent to provide planning criteria for the financial plans of each utility system. The reserve types and the amount of reserves used in this Study are discussed below.

Operating Reserve – The purpose of the Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance and administration of the utility. This reserve ensures that operations can continue should there be significant events that impact cash flow. The target balance to be maintained is 180 days (50 percent) of the current annual operating expense budget.

Capital Reserve – The Capital Reserve is used to fund replacement of assets and fund new capital improvement projects. The target balance is equal to $500,000.

Table 1
Assumptions and Planning Factors
Description Value
Annual Account & Demand growth [1]
Single-family Residential 0.5%
All Other 0.0%
Interest earnings on fund reserves (annual) 2.0%
Cost Escalation
Personnel Services [2] 3.0%
Benefits 8.0%
Electrical Power 3.0%
Chemicals 3.0%
Purchased Water 4.0%
All Other Operations & Maintenance 2.0%
Capital 3.0%
[1] Annualized growth in water accounts is based on historical information provided by staff.
[2] Personnel Services growth in staffing, promotions, and inflation is 3.0% annually.

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Beginning Balances and Reserve Targets
As of June 30, 2023, the City’s beginning fund balances are listed in the table below. The reserves are used in developing the financial plans for the water and wastewater utilities. Target Reserves are also provided.

Water Financial Planning
Financial planning for the water system includes identifying and projecting revenues and revenue requirements for a five-year planning period. Estimates of revenue from various sources are compared with the projected revenue requirements of the water system. This comparison allows the review of the adequacy of existing revenue to meet annual obligations and provide the basis for any rate adjustments. New water rates and charges have been created to recover all of the City’s annual operating and capital costs associated with the water system.

This section discusses current water rates, current user classifications, projected revenues and revenue requirements, capital improvement expenditures and financing sources, and proposed revenue adjustments.

Current Water Rates
The current water rates consist of fixed and variable charges to residential and non-residential customers. All customers are charged a fixed charge by meter size monthly, however are billed bi-monthly. Additionally, Residential customers are charged for consumption using a three-tier variable rate structure. Other customers are charged a uniform rate for water consumed. Table 3 provides the current water rates of the water system.

Table 2
June 30, 2023 Beginning Cash Balances and Reserve Targets Water Wastewater
Reserve Reserve Reserve Reserve
Reserve Type Balance Target Balance Target
Operating Fund Reserve $1,680,000 $1,680,000 $701,000 $701,000 Capital Reserve $3,168,900 $500,000 $3,642,200 $500,000 Total $4,848,900 $2,180,000 $4,343,200 $1,201,000
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Water User Classifications
Number of Customers
The City classifies water customers as Residential (SFR, MFR, apartments, condominium, Mobile Home), Landscape, and All Other. Residential accounts for more than 91 percent of the total customers served by the water system. Growth is projected to occur only in Residential accounts at a rate of 0.50 percent annually or about 20 accounts added each year, following the assumptions listed in Table 1. Table 4 provides the historical and projected number of customers by classification.

Number of Water Meters
Table 5 provides a summary of the number of current and projected meters by size. The majority of customers have 3/4-inch meters installed at the service location. All new Residential customers will have 1-inch meters installed and this is the minimum size for new meter installations for the City’s customer base.

Table 3
Current Water Rates
Fixed Variable
Meter Size Charge Customer Class Rate
($/mo) ($/HCF)
5/8" $16.47 Residential
3/4" $16.47 Tier 1 - 0 to 10 units $2.99
1" $16.47 Tier 2 - 11 to 22 units $6.17

1.5" $54.85 Tier 3 - Over 22 units $8.90
2" $87.80 Landscape $6.72
3" $175.61 All Other $6.47
4" $274.55
Table 4
Historical and Projected Water Customers by Classification Historical Projected
Customer Class FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Number of Accounts
Residential [1] 4,280 4,301 4,323 4,345 4,367 4,389 4,411 Landscape 89 89 89 89 89 89 89
All Other 311 311 311 311 311 311 311
Total Accounts 4,680 4,701 4,723 4,745 4,767 4,789 4,811 [1] Residential accounts/units are forecast to increase based on the assumed growth rate of 0.5% annually.

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Water Sales Volumes
Table 6 provides the historical and projected water sales volume by customer classification. Water sales volumes were projected by recognizing the growth in the number of accounts and the FY 2021-22 use per customer. FY 2022-23 was a year that had high rainfall and the City experienced lower water sales volumes as a result.

Projections after this year assume that water consumption resumes to levels of previous years.

Water Financial Plan
The financial plan provides the means of analyzing the revenue and revenue requirements of the water system and its impact on reserves as well as the ability to fund on-going O&M expense and capital infrastructure requirements. This section of the Report discusses the projection of revenue, O&M expenses, capital Table 5
Historical and Projected Number of Water Meters by Size Historical Projected
Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Active Water Meters/Accounts [1]
5/8" 2 2 2 2 2 2 2
3/4" 3,922 3,922 3,922 3,922 3,922 3,922 3,922
1" 651 672 694 716 738 759 781

1.5" 49 49 49 49 49 50 50
2" 48 48 48 48 48 48 48
3" 7 7 7 7 7 7 7
4" 1 1 1 1 1 1 1
Total Accounts 4,680 4,701 4,723 4,745 4,767 4,789 4,811 [1] Historical water accounts for FY 21-22 were provided through City billing records.

Table 6
Historical and Projected Water Consumption (in HCF)
Historical Projected [1]
Description FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Residential 391,189 349,050 395,119 397,130 399,141 401,152 403,162 Landscape 21,071 21,812 21,071 21,071 21,071 21,071 21,071 All Other 71,434 65,376 71,434 71,434 71,434 71,434 71,434 Total Consumption 483,694 436,238 487,624 489,635 491,646 493,657 495,667 [1] Forecast assumes that the use per customer from FY 21-22 is applied to the number of customers.

FY 22-23 recognizes high rainfall in this year. Consumption increases due to the gowth in customers.

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improvement needs, capital financing, and revenue adjustments needed to maintain a sustainable water enterprise.

Revenues
The City receives operating and miscellaneous revenue from several sources. Operating revenue is received from rates and charges for water service. Revenue from water rates is projected by applying the current water rates to the projected number of accounts and consumption volume. Table 7 presents the projected revenue from current water rates of the System.

Miscellaneous Revenue
Miscellaneous revenues are received from several sources including water meter installations, account set-up fees, water turn on fees, penalties/late fees, utility tax, and other sources. Table 8 below provides sources of miscellaneous revenue.

Table 7
Projected Rate-based Water Revenue Using Current Rates
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Water Service Revenues
Fixed Charges [1] $1,236,851 $1,278,338 $1,282,686 $1,282,686 $1,282,686 $1,282,686 Variable Charges [2] 2,263,044 2,598,582 2,608,734 2,618,887 2,629,040 2,639,188 Total Revenues From Current Rates $3,499,895 $3,876,920 $3,891,420 $3,901,573 $3,911,726 $3,921,874 [1] FY 22-23 and forecast revenue calculated by multiplying current w ater service rate by the number of projected meters. [2] FY 22-23 and forecast revenue calculated by multiplying projected w ater sales by the current variable rates.

Table 8
Projected Miscellaneous Water Revenue
Estimated Budget Budget Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Account Set-up Fee $48,951 $45,000 $46,000 $47,000 $48,000 $49,000 Meter Installation Fees 10,484 8,000 10,000 10,000 10,000 10,000 Reconnect Fees 7,378 4,000 4,000 1,700 1,700 1,700
Late Fee Penalty 57,837 75,000 75,000 50,000 50,000 50,000 Door Notice Fee 12,754 12,000 12,000 12,000 12,000 12,000 Transfer In - 25,000 25,000 25,000 25,000 25,000
Total Miscellaneous Revenues $137,404 $169,000 $172,000 $145,700 $146,700 $147,700 Water and Wastewater Rate Study  City of Grover Beach
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Revenue Requirements
Revenue requirements of the water system include O&M expense, Lopez purchased water, CCB project O&M expense, JPA O&M Expense, CCB Reserves, capital improvement funding, and debt service. Each of these items are discussed below.

Operation and Maintenance Expense
O&M expenses are an on-going obligation of the water system and such costs are normally met from water service revenue. O&M includes the cost to operate and maintain the water supply, reservoirs, and distribution system facilities. Costs also include technical services and other general and administrative expenses. O&M has been projected recognizing the major expense categories of personnel services, electric power expense, chemicals, purchased water, capital outlay, all other expenses following inflation factors presented in Table 1.

Table 9 provides a summary of the O&M expenses for the Study period.

Lopez Water Supply Expense
Expenses for Lopez purchased water is projected from estimates provided by San Luis Obispo County (County).

The County provides a five year forecast of the Lopez water project expenses allocated to Grover Beach. Expenses beyond the 5 year forecast are inflated at 4 percent annually.

Central Coast Blue Project O&M Expense
Central Coast Blue (CCB) is a water sustainability project that will create a new, high quality, and reliable water supply for the City of Pismo Beach and other agencies. The CCB project is further described under the section Water Capital Improvement Program of this report. The CCB annual O&M expense is estimated at $3,405,000 of which Grover Beach’s share is 36 percent. The CCB O&M expense begins in January 2026 with annual O&M expense amount of estimated to be $1,225,800. Futures years are inflated at 4 percent annually.

JPA O&M Expense
The CCB project is intended to be managed by a newly formed JPA. Each city participating in the CCB project is expected to contribute annually to the operations expense of the JPA. The City’s share of this expense is estimated at $59,400 beginning in July 2025 with estimated annual inflation of 4 percent. Other small miscellaneous JPA expenses occur before this time.

CCB Operating and Capital Reserves Expense
The newly created JPA’s mission is to manage the on-going operations and maintenance of the CCB project. Each city participating in the CCB project is expected to contribute to the build-up of operating and capital reserves in proportion to their share of the project. Operating reserves are estimated at 180 days of CCB O&M expense and capital reserves are estimated as provided by the City’s consulting engineer. The City is expected to pay for its 36 percent share of these costs.

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Capital Improvement Funding
The City pays for water system replacements and capital improvements from the water fund. The City plans for these expenses through its capital improvement planning during the fiscal year. The annual amount necessary to fund the improvements is included in the financial plan such that revenue from water rates is providing funding to aid in the cost of these replacements and improvements. Any money not spent accumulates into reserves to be used for future capital improvement spending.

Debt Service
Currently, the water system has one outstanding loan that includes a 2020 debt issue that financed certain water improvements. Debt service payments on the 2020 debt total about $280,000 annually. Additionally, a proposed Table 9
Historical and Projected Water Operation and Maintenance Expense Estimated Budget Budget Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Utility Billing
Salaries $245,234 $250,533 $261,828 $269,683 $277,773 $286,106 Benefits 73,608 88,852 92,366 99,756 107,737 116,354
Supplies and Services 86,843 92,600 79,900 81,498 83,126 84,789 Total Utility Billing $405,685 $431,985 $434,094 $450,937 $468,636 $487,249 Water Oprations
Salaries $332,556 $365,159 $398,530 $410,486 $422,801 $435,485 Benefits 113,952 143,771 155,624 168,074 181,520 196,042 Utilities - Electricity 90,500 131,000 134,000 138,020 142,161 146,426 Services - Legal 23,153 14,000 15,000 15,300 15,606 15,918 Services - Engineering 128,115 135,000 135,000 137,700 140,454 143,263 Services - Communications 1,270 3,000 3,000 3,060 3,121 3,183 Services - Maintenance 42,860 40,000 40,000 40,800 41,616 42,448 Services - Other 31,512 40,000 40,000 40,800 41,616 42,448 Contractual Obligations (7,601) 35,066 37,540 38,291 39,057 39,838 Maintenance of Vehicles 9,627 10,000 10,000 10,200 10,404 10,612 Maintenance of City Facilities 33,682 34,000 34,000 34,680 35,374 36,081 Maintenance of Equipment 2,386 27,000 27,000 27,540 28,091 28,653 Capital Outlay 61,568 40,000 40,000 40,800 41,616 42,448 All Other 173,013 143,225 144,225 147,110 150,052 153,052 Subtotal $1,036,593 $1,161,221 $1,213,919 $1,252,861 $1,293,489 $1,335,897 Non-Departmental
Transfers Out $455,990 $473,868 $458,153 $467,316 $476,662 $486,195 PERS Retirement 26,114 105,903 105,169 113,583 122,670 132,484 Insurance 103,893 108,700 111,500 113,730 116,005 118,325 Other 8,325 - - - - -
Total Non-Departmental $594,322 $688,471 $674,822 $694,629 $715,337 $737,004 Central Coast Blue Water Supply
Central Coast Blue O&M Expense $0 $0 $0 $612,900 $1,274,832 $1,325,825 JPA Oerating Expense - 19,285 20,250 59,400 60,588 61,800 Total Central Coast Blue $0 $19,285 $20,250 $672,300 $1,335,420 $1,387,625 Lopez Water Supply [1]
Lopez Contract O&M $828,088 $954,097 $979,064 $965,046 $991,533 $1,031,194 Lopez Dam Bonds - 2011A Debt Service 92,602 92,602 92,602 92,602 92,602 92,602 Lopez SRF Loan Debt Service 295,254 295,254 295,254 295,254 295,254 295,254 Lopez Capital Outlay 88,300 81,481 54,040 50,331 82,119 80,000 Total Lopez Water Expense [1] $1,304,244 $1,423,434 $1,420,960 $1,403,233 $1,461,508 $1,499,050 Water Conservation Fund $19,082 $13,794 $14,100 $14,535 $14,985 $15,455 Total O&M Expense $3,359,926 $3,738,190 $3,778,145 $4,488,495 $5,289,375 $5,462,280 [1] Lopez water expense provided by San Luis Obispo County for FY 23-24 through FY 26-27.

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new debt issue is assumed to fund the City’s share of construction of the Central Coast Blue (CCB) project with proceeds totaling $22.205M in FY 2023-24. The proposed debt issue is projected to have interest only payments for the first three years and includes an interest rate of 5 percent with a 30-year repayment term. The CCB project is discussed further below.

Water Capital Improvement Program
The City has developed a CIP that lists capital expenditures for FY 2022-23 through FY 2027-28 provided in Table

10. Over this period the City projects that it would spend approximately $26.1 million. The major improvements include the CCB project, 16th street booster station, Reservoir Maintenance, and water meter replacement program.

The CCB project is a regional recycled water project that will utilize treated wastewater which is currently discharged to the ocean to increase groundwater supplies, and secure a sustainable, drought-resistant local water supply. The project is a multi-agency collaboration between the cities of Grover Beach, Pismo Beach, and Arroyo Grande. The CCB project is intended to be a critical component of the future drinking water supply portfolio for the stakeholder agencies and will help protect against the threat of seawater intrusion into their groundwater supplies and future droughts in the State of California.

The project would involve recharging the SMVGB with purified water via injection wells. Recycled water would be sourced from two of the region’s wastewater treatment facilities, the Pismo Beach Wastewater Treatment Plant and the South San Luis Obispo County Sanitation District (SSLOCSD) wastewater treatment plant. The City’s share of the project cost is 36 percent while Pismo Beach’s share and Arroyo Grande’s share are 39 percent and 25 percent respectively. The CIP in Table 10 is funded by water rate revenue, reserves, and debt proceeds from a new debt issue (described above) to pay for the construction costs of the CCB project.

Water Financial Plan
A financial plan has been prepared that includes the revenues and revenue requirements that were identified for the water system and is presented in Table 11. The plan incorporates specific financial planning criteria to Table 10
Water Capital Improvement Program
Budget Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Capital Improvement Program (CIP) Projects [1]
Central Coast Blue $0 $2,528,400 $19,676,777 $0 $0 $0
Water Main Zone Valves - 75,000 - - - -
Well Capacity Analysis Improvements - 75,000 - - - -
16th Street Booster Station - - 180,000 780,000 - -
Water Meter Replacement Meter Program - 300,000 150,000 150,000 150,000 150,000 Automated Meter Reading - - - - - 300,000
Reservoir Maintenance 17,300 1,577,700 - - - -
Total Water CIP $17,300 $4,556,100 $20,006,777 $930,000 $150,000 $450,000 [1] CIP Source: FY 22-23 City CIP document.

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Table 11
Water Financial Plan
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Proposed Revenue Increase (January 1) 19.7% 19.7% 19.7% 19.7% 4.0% Water Fund
Revenue
Revenues from Existing Water Rates [1] $3,499,895 $3,876,920 $3,891,420 $3,901,573 $3,911,726 $3,921,874 Total Additional Water Sales Revenue [2] - 318,231 1,148,957 2,147,499 3,347,855 4,263,694 Miscellaneous Income 137,404 169,000 172,000 145,700 146,700 147,700 Rate Stabilization - - 400,000 140,000 - -
Interest Income [3] 151,132 76,900 55,900 39,600 25,100 27,900 Total Revenues $3,788,431 $4,441,051 $5,668,277 $6,374,372 $7,431,381 $8,361,168 Operating Expenses
Salaries and Benefits $772,374 $856,234 $916,573 $956,541 $998,703 $1,043,207 Supplies and Services 635,019 710,766 705,540 720,992 736,791 752,946 Non-Capitalized Equipment 61,568 40,000 40,000 40,800 41,616 42,448 Non-Departmental 594,322 688,471 674,822 694,629 715,337 737,004 Lopez Contract O&M [4] 820,487 954,097 979,064 965,046 991,533 1,031,194 Lopez Dam Bonds - 2011A Debt Service [4] 92,602 92,602 92,602 92,602 92,602 92,602 Lopez SRF Loan Debt Service [4] 295,254 295,254 295,254 295,254 295,254 295,254 Lopez Capital Outlay [4] 88,300 81,481 54,040 50,331 82,119 80,000 Central Coast Blue O&M Expense - - - 612,900 1,274,832 1,325,825 Transfer Out JPA Operating Expense - 19,285 20,250 59,400 60,588 61,800 Transfer Out to JPA Operating Reserve - - - 612,900 24,516 25,497 Transfer Out to JPA Capital Reserve - - - 368,606 368,606 368,606 Total Operation and Maintenance Expenses $3,359,926 $3,738,190 $3,778,145 $5,470,001 $5,682,497 $5,856,383 Capital Expenditures
Capital Improvements [5] $17,300 $2,027,700 $330,000 $930,000 $150,000 $450,000 2020 Debt Service 281,443 280,923 281,294 281,543 281,671 281,678 Central Coast Blue Debt Service [6] - - 1,231,000 1,231,000 1,231,000 1,581,000 Total Capital Expenditures $298,743 $2,308,623 $1,842,294 $2,442,543 $1,662,671 $2,312,678 Total Revenue Requirements $3,658,669 $6,046,813 $5,620,439 $7,912,544 $7,345,168 $8,169,061 Net Funds Available $129,762 ($1,605,762) $47,838 ($1,538,172) $86,213 $192,107 Available Reserves
Beginning available reserves [7] $4,848,900 $2,843,138 $2,750,976 $1,212,803 $1,299,016 Rate Stabilization Set Aside (400,000) (140,000) - - -
Ending available reserves $2,843,138 $2,750,976 $1,212,803 $1,299,016 $1,491,124 Target Reserves [8] 2,180,000 2,369,000 2,389,000 3,235,000 3,341,000 3,428,000 Above (below) Target $474,138 $361,976 ($2,022,197) ($2,041,984) ($1,936,877) Debt Service Coverage
Total Revenues $3,788,431 $4,441,051 $5,668,277 $6,374,372 $7,431,381 $8,361,168 Total O&M Expenses $3,359,926 $3,738,190 $3,778,145 $4,488,495 $5,289,375 $5,462,280 Net Revenues $428,505 $702,861 $1,890,132 $1,885,877 $2,142,006 $2,898,888 25% Coverage Factor of Lopez 2011A Bonds $23,151 $23,151 $23,151 $23,151 $23,151 $23,151 Total O&M Expenses for Lopez Coverage $3,383,077 $3,761,341 $3,801,296 $4,511,646 $5,312,526 $5,485,431 Debt Service Payments
2020 Debt Service $281,443 $280,923 $281,294 $281,543 $281,671 $281,678 Central Coast Blue Debt Service - - 1,231,000 1,231,000 1,231,000 1,581,000 Total Debt Service for Coverage $281,443 $280,923 $1,512,294 $1,512,543 $1,512,671 $1,862,678 Lopez Debt Service Coverage [9] 112% 118% 149% 141% 140% 152% Debt Service Coverage [10] 152% 250% 125% 125% 142% 156% [1] Projected using the Proposition 218 rates for FY 22-23 and through FY 25-26. [2] Additional revenue from proposed rate adjustments.
[3] Interest earnings on the average fund balance calculated at 2.0% annually. [4] From SLO County Projections.
[5] From Table 10, but excludes FY 23-24 through FY 25-26 CCB construction costs, funded by proceeds of a new CCB debt issue. [6] City's share of new Central Coast Blue debt service. [7] The available beginning FY 23-24 cash balance provided by the City. [8] Includes 6 months of O&M expense and a suggested $500,000 for capital reserve. [9] Minimum coverage on the Lopez 2011A Bonds is 100 percent. [10] Minimum coverage on the 2020 Bonds is 120 percent.

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provide guidance to maintain the health of the water utility on an on-going basis. The criteria included the following.
 Generate positive levels of income in each year of the Study period  Maintain the operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement and improvement spending requirements Proposed Revenue Adjustments
Table 11 provides the annual revenue increases recommended to meet the financial planning criteria for the five-year Study period. The financial plan indicates that 19.7 percent revenue increases are proposed beginning on January 1, 2024 through January 1, 2027, followed by 4.0 percent increases beginning January 1, 2028 for the next two years. The increases are necessary to meet the planning criteria discussed above.

A graphical depiction of the revenue and revenue requirements from Table 11 are presented in Figure 1.

Revenue using the current rates is shown as the black line while revenue with revenue adjustments is shown as the red line.

Figure 1 shows that the revenue increases outlined in Table 11 are necessary to meet revenue requirements, fund the CIP program, maintain the operating and capital reserves, and meet minimum debt service coverage ratios required by debt covenants.

Figure 1
Water Financial Plan
Comparison of Revenue with Revenue Requirements
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 Sources and Uses ($ Millions) O&M Lopez Water Capital Improvement Funding Central Coast Blue O&M Debt Service Reserves Revenue w/o Increases Revenue with Increases Water and Wastewater Rate Study  City of Grover Beach
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Figure 2 shows a graphical depiction of the operating and capital reserves of the water fund in comparison to the established annual Target reserves. The purple line represents the Target Reserve level while the green column indicates the cash reserve balance at the end of year. The figure shows that the water fund reserve balance (green column) decreases below the Target Reserve (purple line) in the middle years of the 10 year period but returns to meet the Target Reserve in the last year if the proposed revenue increases are implemented.

Water Cost of Service
This section of the report discusses the allocation of the water system’s operating and capital costs for use in designing water rates. The agency responsible for imposing property-related fees in California is required to establish rates that create a nexus between the cost of providing service and the rates to be imposed.

Industry Methodology
This Study uses methodologies from the American Water Works Association (AWWA) to allocate water system costs in an appropriate manner for use to design water rate structures and rates. AWWA is an industry trade organization providing guidance on operations and management of water utilities. AWWA provides general principles to assist agencies in the design of water rates such that they are consistent with local requirements Figure 2
Water Reserves versus Target Reserves
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
FY 22-23 FY 24-25 FY 26-27 FY 28-29 FY 30-31 Reserves Total Reserves Water and Wastewater Rate Study  City of Grover Beach
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while also recognizing state laws and legal framework. The AWWA guidelines have been used to conduct this Study and have been used in the design of the City’s water rates while also following Proposition 218 legislation.

The annual costs of providing water service from the financial plan are allocated to cost components following industry standards provided in the AWWA Manual M1. The methodology provides the basis to design rates to generate adequate revenue to meet estimated annual revenue requirements from the financial plan. Costs are then recovered through fixed charges and variable charges to system users.

Costs of Service to be Allocated
The annual cost of service consists of the O&M expenses and capital costs of the water system. O&M expenses include costs related to water supply, water distribution, operation and maintenance of the facilities, transfers, and general and administrative costs. Capital costs include annual capital spending and debt service discussed in the financial plan.

Costs are first allocated to water system cost component based on the operating characteristics and design of the water system facilities. Cost allocations consider the average quantity of water consumed as well as the peak rate at which water is consumed. The water system is designed to serve average and peak demands, and costs that are related to serving average and peak demands are allocated in a manner such that they may be recovered appropriately.

The cost allocation components for water service for this Study are Water Supply (groundwater and Lopez water), Delivery, Peaking, Meters and Services, Customer, and Conservation. FY 2023-24 was used as the Test Year for assigning the operating and capital costs of the water system to each of these parameters. The total cost to be recovered from the users of the water system by cost component for each year of the Study is presented in Table

12. Appendix A provides a detailed allocation.

Water Rate Design
The cost of service analyses described in the previous section provides the basis for water rate design. The emphasis on the design of rates is to achieve fairness and ensure that each customer class pays its fair share of costs. Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section describes how water rates and charges are designed and includes the proposed schedule of water rates for implementation.

Table 12
Allocation of Water Requirements to Cost Component
Total
Revenue Water Supply Customer
Fiscal Year Requirement Lopez Groundwater Delivery Peaking Meters/Serv Customer Conservation FY 23-24 $4,640,673 $1,423,434 $121,300 $692,628 $1,919,391 $316,822 $153,304 $13,794 Water and Wastewater Rate Study  City of Grover Beach
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Proposed Rate Structure
The recommended water rates include keeping the current rate structure. The current rates include fixed charges by meter size and the three-tier variable Residential variable rate structure and uniform volume rate structure for all other customers. The design of the fixed charges and variable charges are discussed below.

Proposed Fixed Charges
The proposed fixed charges recover the Meters and Services and Customer costs of service identified in Table 12, and additionally recover 35 percent of the Peaking costs. All of the Meters and Services costs, Customer costs, and Peaking costs are recovered on meter capacity ratios provided by AWWA. Table 13 below presents the design of the proposed monthly fixed charges for water customers. The proposed fixed charges generate approximately 25 percent of the revenue from water rates.

Fixed charges for meter sizes greater than 5/8-inch are increased through application of meter capacity ratios as shown below in Table 14. All of the Meter and Service, Customer, and Peaking charges are increased through meter capacity ratios. The charges are summed to provide the total monthly charge by meter size as shown in the last column of Table 14.

Table 13
Design of Monthly Water Fixed Charges
Customer Service Cost FY 23-24
Customer Cost $153,304
Number of Bills 63,754
Customer Cost per Unit $2.40
Meters and Services Cost FY 23-24
Meters and Services Cost $316,822
Number of Equivalent Meters & Services 63,754
Meters and Services Cost per Unit $4.97
Peaking Costs FY 23-24
Peaking Costs $671,787
Number of Equivalent Meters 63,754
Peaking Cost per Unit $10.54
Base Fixed Charge - 5/8" $17.91
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Proposed Variable Charges
Variable charges are designed to recover the Water Supply, Delivery, Peaking (65 percent), and Conservation costs from Table 12. Consumption and peaking characteristics of water system customers were analyzed to allocate costs to customer classification as well as between each Residential tier. Water Supply costs, consisting of groundwater and Lopez Water, were allocated to each Residential tier based on water availability and the demand in each tier.

Tier Definitions. No changes are proposed to the rate tiers for Residential customers. Tier 1 is defined as the consumption to provide basic indoor water use and is the same as defined in the City’s last rate study as 0 to 1,000 cubic feet (10 HCF). Tier 2 is defined as consumption related to outdoor water use and is all water consumed beyond Tier 1 and below Tier 3. The Tier 2 upper breakpoint is defined as the Residential summer peak demand of 2,200 cubic deet (22 HCF). Tier 3 is defined as use beyond Tier 2.

For the other customer classes of Landscape and All Other, these classes will have individual uniform volume rates, the same rate structure as is currently used, which also recognizes the peaking characteristics of each class in their variable rate.

Delivery Costs. Delivery costs from Table 12 are operating and capital costs of the water system related to delivering water to all customers at an average rate of use. Delivery costs tend to vary with the total quantity of water consumed under average-load conditions. These costs are shared uniformly by all customers of the system.

Table 15 provides the per unit Delivery cost.

Table 14
Design of Monthly Water Fixed Charges by Meter Size
Meter Meter & Total
Meter Capacity Services Peaking Customer Monthly
Size Ratio Charge Charge Charge Charge
inches
Residential
5/8" 1.00 $4.97 $10.54 $2.40 $17.91
3/4" 1.00 $4.97 $10.54 $2.40 $17.91
1" 1.00 $4.97 $10.54 $2.40 $17.91

1.5" 3.33 $16.57 $35.13 $8.00 $59.70
2" 5.33 $26.51 $56.21 $12.80 $95.52
3" 10.67 $53.01 $112.43 $25.60 $191.04
4" 16.67 $82.83 $175.67 $40.00 $298.50
Non-Residential
5/8" 1.00 $4.97 $10.54 $2.40 $17.91
3/4" 1.50 $7.46 $15.81 $3.60 $26.87
1" 1.67 $8.28 $17.57 $4.00 $29.85

1.5" 3.33 $16.57 $35.13 $8.00 $59.70
2" 5.33 $26.51 $56.21 $12.80 $95.52
3" 10.67 $53.01 $112.43 $25.60 $191.04
4" 16.67 $82.83 $175.67 $40.00 $298.50
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Peaking Costs. Peaking costs are costs associated with meeting peak demand rates of use requirements of the water system and include operating and capital costs beyond that required for average rates of use. Water system facilities are designed to meet peak characteristics and are apportioned to customer classes based on their system use characteristics. Peaking costs may be assigned to tiers in a tiered-rate structure based on the customers within the tier that are causing the peak demand.

Peaking costs are first allocated to each customer class based on their total demand. Then for Residential peaking costs, the costs are allocated to the tiers based on the peaking factors that occur from customer’s use within the tiers, based on the tier breakpoints discussed above. Tier 1 is considered to have a peaking factor of 1.0, Tier 2 and Tier 3 have peaking factors that reflect the average use per customer within these tiers as a ratio to Tier 1.

Table 16 presents the calculation of the Residential tier rates which shows the Residential consumption, peaking factor, Peaking cost allocation, and the resulting rate by tier for Residential customers.

Water Supply Costs. The City’s water supply currently consists of groundwater and Lopez water. In FY 2021- 22, groundwater production accounted for about 37 percent of the total water supply and is the least expensive source of water. Lopez water is the most expensive water.

The sources of water supply are allocated to each tier assuming the least expensive source of water is used first, followed by remaining sources in order of cost to meet the demand. Table 17 provides the City’s demand by tier, Table 15
Design of Uniform Rate for Delivery Costs
Delivery Uniform
Customer Class Costs Volume Rate
Residential $561,233 395,119 $1.42
Landscape 29,930 21,071 $1.42
All Other 101,466 71,434 $1.42
Total $692,628 487,624 $1.42
Table 16
Design of Residential Peaking Rate
Percent Peaking
Consumption Peaking Weighted Cost Rate in
Tier in Tier Consumption Factor Consumption Allocation Tier Tier 1 - 0 to 10 units 53.1% 209,939 1.00 209,939 $287,349 $1.37 Tier 2 - 11 to 22 units 25.6% 101,247 1.73 175,553 240,284 $2.37 Tier 3 - Over 22 units 21.2% 83,934 4.18 350,607 479,884 $5.72 100.0% 395,119 736,099 $1,007,516
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the water supply source used to meet the demand in the tier, the costs associated with the water supply, and the resulting water supply rate in the tier.

Water Conservation Costs. The City has established a water conservation program to encourage the public to be conscious of water use and consider methods to conserve water. Such conservation efforts are generally directed at those customers who consume water in Tier 2 and Tier 3 (outdoor consumption). Therefore, Conservation costs of the program are assigned and recovered from customers who consume water in Tiers 2 and 3. Table 18 provides the method used to calculate the conservation rate in each tier to recover conservation costs.

Proposed Variable Rates. Table 19 provides a summary of the variable rate components from Tables 15 through 18 for the customer classifications. The table shows that each customer classification pays for the same Delivery costs; however, each class pays for their individual peaking, water supply, and conservation costs.

The Residential classification pays for more expensive water supply in Tier 2 and Tier 3 due to the customers in those tiers causing the City to obtain more expensive water to meet that demand. Landscape and Other customers pay for a blend of water supply.

Table 17
Design of Water Supply Rate by Tier
Projected Consumption Met From Water Water
Tier Consumption Groundwater Lopez Supply Costs Supply Rates Tier 1 - 0 to 10 units 225,513 183,499 42,014 $317,945 $1.41 Tier 2 - 11 to 22 units 111,999 111,999 524,202 $4.68
Tier 3 - Over 22 units 150,112 150,112 702,587 $4.68
487,624 183,499 304,125 $1,544,734
Table 18
Design of Residential Conservation Rate
Percent Peaking
Consumption Peaking Weighted Cost Rate in
Tier in Tier Consumption Factor Consumption Allocation Tier Tier 1 - 0 to 10 units 53.1% 209,939 1.00 $0 $0.00
Tier 2 - 11 to 22 units 25.6% 101,247 1.73 175,553 3,729 $0.04 Tier 3 - Over 22 units 21.2% 83,934 4.18 350,607 7,447 $0.09 100.0% 395,119 526,160 $11,176
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Proposed Water Rates
Table 20 presents the proposed fixed charges and variable charges for the water system for the next five years.

The table provides the current fixed and variable charges, the proposed fixed and variable charges for January 1, 2024 that were developed in the tables above, and the proposed fixed and variable charges for each January 1 through January 1, 2028.

Table 19
Design of Water Variable Rates
Proposed
Differentiated Volume
Customer Class Delivery Peaking Supply Conservation Rate Residential
Tier 1 - 0 to 10 units $1.42 $1.37 $1.41 $0.00 $4.20
Tier 2 - 11 to 22 units $1.42 $2.37 $4.68 $0.04 $8.51
Tier 3 - Over 22 units $1.42 $5.72 $4.68 $0.09 $11.91
Landscape $1.42 $3.53 $4.13 $0.03 $9.11
All Other $1.42 $2.32 $4.13 $0.03 $7.90
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Water Bill Impact Analysis
An impact analysis was performed to evaluate the change in SFR customer bills that would occur from the implementation of the proposed January 2024 water rates. The impacts are provided in Table 21. For an SFR customer with a 3/4-inch meter size using the average consumption of 15 HCF bi-monthly, the bill will increase from $90.69 to $120.37, an increase of $26.68 or 28.5 percent. The percentage increase in water bills for January 1, 2024 does not match the overall revenue increase of 19.7 percent from the water financial plan due to costs of service adjustments in this year. Future year’s water bills increase following the revenue increases in the water financial plan.

Table 20
Proposed Water Fixed and Variable Charges
Current Proposed
Rate Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96

1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Non-Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $24.71 $26.87 $32.17 $38.51 $46.10 $47.95
1" $27.52 $29.85 $35.74 $42.79 $51.22 $53.27

1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Variable Charge ($ per HCF)
Residential
Tier 1 - 0 to 10 units $2.99 $4.20 $5.03 $6.03 $7.22 $7.51 Tier 2 - 11 to 22 units $6.17 $8.51 $10.19 $12.20 $14.61 $15.20 Tier 3 - Over 22 units $8.90 $11.91 $14.26 $17.07 $20.44 $21.26 Landscape $6.72 $9.11 $10.91 $13.06 $15.64 $16.27
All Other $6.47 $7.90 $9.46 $11.33 $13.57 $14.12
Classification
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Figure 3 shows how future SFR bills will increase over time with the implementation of the proposed rates in Table 21 at the average consumption of 15 HCF bi-monthly.

Table 21
Comparison of Current Single-family Residential Bi-monthly Water Bills with 3/4-inch Meter Size with Proposed Bills Using January 2024 Water Rates Current Bill Proposed FY 23-24 Bill
Service Volume Current Service Volume Proposed Dollar Percent Description Use (HCF) Charge Charge Bill Charge Charge Bill Difference Change 0 $32.94 $0.00 $32.94 $35.82 $0.00 $35.82 $2.88 8.7%
Very Low 5 $32.94 $14.95 $47.89 $35.82 $21.00 $56.82 $8.93 18.6% Low 10 $32.94 $29.90 $62.84 $35.82 $42.00 $77.82 $14.98 23.8% Median 12 $32.94 $42.24 $75.18 $35.82 $59.02 $94.84 $19.66 26.2% Average 15 $32.94 $60.75 $93.69 $35.82 $84.55 $120.37 $26.68 28.5% 20 $32.94 $91.60 $124.54 $35.82 $127.10 $162.92 $38.38 30.8% High 30 $32.94 $175.14 $208.08 $35.82 $239.40 $275.22 $67.14 32.3% Very High 50 $32.94 $353.14 $386.08 $35.82 $477.60 $513.42 $513.11 33.0% Figure 3
Current and Future Single-family Residential Bi-monthly Water Bills at 15 HCF Proposed
SFR Charges Current FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Fixed Charges $32.94 $35.82 $42.88 $51.34 $61.46 $63.92 Variable Charges 60.75 84.55 101.25 121.30 145.25 151.10 Total Charges $93.69 $120.37 $144.13 $172.64 $206.71 $215.02 Dollar Change $26.68 $23.76 $28.51 $34.07 $8.31
Percent Change 28.5% 19.7% 19.8% 19.7% 4.0%
$93.69
$120.37
$144.13
$172.64
$206.71 $215.02
$0
$50
$100
$150
$200
$250
Current FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Fixed Charges Variable Charges
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Water Rate Survey
A water rate survey was conducted for neighboring communities to the City of Grover Beach. Chart 1 compares the Grover Beach SFR estimated bi-monthly water bill with those of neighboring communities at the same consumption of 15 HCF bi-monthly. The rate survey includes rate schedules in effect July 2023.

Water bills for Grover Beach are shown using the current rates and the proposed rates for implementation on January 1, 2024. The chart indicates that with the January 2024 water rates, a Grover Beach SFR customer with a 3/4-inch meter using the average bi-monthly consumption of 15 HCF will experience a bill that is among the lowest of the communities surveyed.

Chart 1
Single-family Residential Bi-Monthly Water Bills Using 15 HCF For Rates in Effect July 2023
Note: Above table uses water rates in effect July 2023. Grover Beach January 2024 bill is based on the rate structure and rates in Table 20. Grover Beach bill includes 1% utility tax.

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Wastewater Financial Planning
Financial planning for the wastewater system includes identifying and projecting revenues and revenue requirements for a five-year planning period. Estimates of revenue from various sources are compared with the projected revenue requirements of the wastewater system. This comparison allows the review of the adequacy of existing revenue to meet annual obligations and provide the basis for any rate adjustments. New wastewater rates and charges are created to recover all of the City’s annual operating and capital costs associated with the wastewater system.

This section discusses current wastewater rates, current user classifications, projected revenues and revenue requirements, capital improvement expenditures and financing sources, and proposed revenue adjustments.

Current Wastewater Rates
The current wastewater rates consist of fixed charges to residential and non-residential customers. All customers are charged a fixed charge monthly, however are billed bi-monthly. Table 22 provides the current wastewater rates.

Table 22
Current Wastewater Rates
Fixed
Classification Charges
$/month
Boarding House (per unit) $15.54
Per Bedroom Charge 10.00
Car Washes & Laundromats (min charge) 6.19
Per 100 cubic feet above minimum 0.00
Church 15.06
Per parsonage or dwelling unit 12.82
Commercial Establishment (Public place up to 5 Fixtures) 15.04 Each additional fixture [2] 4.12
Factories, Industrial Plants (20 employees or less) 10.12 Each additional employee over 20 1.16
Hotel, Motel Auto Court or Lodge (per unit) 15.45
Mobile Home (per space) 12.82
Restaurants (min charge) 2.14
Per 100 cubic feet against minimum 0.00
Schools (min annual charge per ADA and employee) 3.31
Schools with Cafeterias (additional) Per ADA and employees 1.38 Single-Family Dwelling Unit 12.82
Theater, Clubhouse or Place of Amusement 15.04
Travel Trailer and Recreation Vehicle Space 6.60
Multi-family, Two or More Dwellings (per unit) 12.82
Per each coin-operated washer 2.80
Excess Discharge per 100 cubic feet $0.40
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Wastewater User Classifications
Number of Customers
The City classifies wastewater customers in one of a number of classifications. SFR customers represent more than 62 percent of the total customers served by the wastewater system. Growth is projected to occur only in SFR accounts at a rate of 0.50 percent annually or about 20 SFR accounts added each year, following the assumptions listed in Table 1. Table 23 provides the historical and projected number of customers by classification.

Wastewater Financial Plan
The financial plan provides the means of analyzing the revenue and revenue requirements of the wastewater system and its impact on reserves as well as the ability to fund on-going O&M expenses and capital infrastructure requirements. This section of the Report discusses the projection of revenue, O&M expenses, capital improvement needs, capital financing, and revenue adjustments needed to maintain a sustainable wastewater enterprise.

Revenues
The City receives operating and capital revenue from several sources. Operating revenue is received from rates and charges for wastewater service. Revenue is projected by applying the current wastewater rates to the projected number of accounts and consumption volume. Table 24 presents the projected revenue from current wastewater rates.

Table 23
Historical and Projected Number of Wastewater Customers by Classification Historical Projected
Customer Class FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Number of Accounts
Boarding House (per unit) [1] 0 0 0 0 0 0 0
Per Bedroom Charge 0 0 0 0 0 0 0
Car Washes & Laundromats (min charge) 2 2 2 2 2 2 2
Per 100 cubic feet above minimum 0 0 0 0 0 0 0
Church 9 9 9 9 9 9 9
Per parsonage or dwelling unit 5 5 5 5 5 5 5
Commercial Establishment (Public place up to 5 Fixtures) 393 393 393 393 393 393 393 Each additional fixture 32 32 32 32 32 32 32
Factories, Industrial Plants (20 employees or less) 28 28 28 28 28 28 28 Each additional employee over 20 5 5 5 5 5 5 5
Hotel, Motel Auto Court or Lodge (per unit) 142 142 142 142 142 142 142 Mobile Home (per space) 156 156 156 156 156 156 156
Restaurants (min charge) 5 5 5 5 5 5 5
Per 100 cubic feet against minimum 0 0 0 0 0 0 0
Schools (min annual charge per ADA and employee) 0 0 0 0 0 0 0 Schools with Cafeterias (additional) Per ADA and employees 0 0 0 0 0 0 0 Single-Family Dwelling Unit 3,789 3,808 3,827 3,846 3,865 3,885 3,904 Theater, Clubhouse or Place of Amusement 0 0 0 0 0 0 0
Travel Trailer and Recreation Vehicle Space 122 122 122 122 122 122 122 Multi-family, Two or More Dwellings (per unit) 1,443 1,443 1,443 1,443 1,443 1,443 1,443 Per each coin-operated washer 2 2 2 2 2 2 2
Excess Discharge per 100 cubic feet 0 0 0 0 0 0 0
Total Number of Customers 6,134 6,152 6,171 6,190 6,209 6,229 6,248 Water and Wastewater Rate Study  City of Grover Beach
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Miscellaneous Revenue
Miscellaneous revenues are received from several sources including plan check and inspection fees, transfers in, fees, storm water revenue, and other sources. Table 25 below provides sources of miscellaneous revenue.

Revenue Requirements
Revenue requirements of the wastewater system include O&M expense and capital improvement funding. Each of these items are discussed below.

Operation and Maintenance Expense
O&M expenses are an on-going obligation of the wastewater system and such costs are normally met from wastewater service revenue. O&M includes the cost to operate and maintain the wastewater collection system facilities. Costs also include technical services and other general and administrative expenses.

O&M has been projected recognizing the major expense categories of personnel services, electric power expense, chemicals, capital outlay, and all other expenses. O&M expenses are inflated with the inflation factors presented in Table 1. Table 26 provides a summary of the O&M expenses for the Study period.

Capital Improvement Funding
The City plans for wastewater replacements and improvements in its capital planning during the fiscal year. The annual amount required to fund the replacements and improvements is included in the wastewater financial plan. No debt is planned for wastewater system improvements.

Table 24
Projected Rate-based Wastewater Revenue Using Current Rates Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Wastewater Service Revenues
Fixed Charge Revenue [1] $928,035 $949,446 $952,368 $955,291 $958,368 $961,291 Total Revenues From Current Rates $928,035 $949,446 $952,368 $955,291 $958,368 $961,291 [1] Current fixed charge multiplied by the number of customers.

Table 25
Projected Miscellaneous Wastewater Revenue
Estimated Budget Budget Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Miscellaneous $22,038 $27,000 $27,000 $27,000 $27,000 $27,000 Plan Check and Inspection Fees - 1,000 1,000 1,000 1,000 Transfers In - 85,000 - - - -
Storm Water Revenue 280,689 297,126 303,069 303,161 303,258 303,350 Total Miscellaneous Revenues $302,727 $409,126 $331,069 $331,161 $331,258 $331,350 Water and Wastewater Rate Study  City of Grover Beach
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Debt Service
A proposed new debt issue is assumed to fund the Sewer Upgrade for Future Flows project with proceeds totaling $3.6M in FY 2023-24. The proposed debt issue is projected to have payments of $303,000 annually beginning in FY 2024-25 and includes an interest rate of 5 percent with a 20-year term.

Wastewater Capital Improvement Program
The City has developed a CIP that lists capital improvement expenditures for FY 2022-23 through FY 2027-28 provided in Table 27. Over this period the City projects that it would spend approximately $8.2 million. The major improvements include Sewer Upgrades for Future Flows, South Oak Park Lift Station Upgrades, and sewer lining projects. The CIP is funded from wastewater rate revenue, debt proceeds, and reserves.

Table 26
Historical and Projected Wastewater Operations and Maintenance Expense Estimated Budget Budget Projected
Desription FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Utility Billing
Salaries $259,119 $266,998 $278,951 $288,104 $297,594 $307,435 Benefits 60,226 74,241 77,177 83,352 90,018 97,220
All Other 76,583 90,800 78,100 79,662 81,253 82,879
Subtotal Utility Billing $395,928 $432,039 $434,228 $451,118 $468,865 $487,534 Wastewater Operations
Salaries $157,431 $162,779 $174,064 $170,787 $175,911 $181,188 Benefits 50,941 57,952 61,529 66,440 71,743 77,470
Utilities - Electricity 8,294 11,000 11,000 11,330 11,670 12,020 Services - Maintenance 85,832 36,000 36,000 36,720 37,454 38,203 Contractual Obligations 121,381 35,000 35,000 35,700 36,414 37,142 Rentals & Leases - Facilities 1,500 7,125 7,125 7,268 7,413 7,561 Maintenance of Vehicles 2,883 1,700 1,900 1,938 1,977 2,017 Maintenance of City Facilities 332 750 750 765 780 796
Maintenance of Equipment 2,153 1,000 1,000 1,020 1,040 1,061 Capital Outlay 0 200,000 0 0 0 0
All Other 13,889 19,650 19,850 20,247 20,651 21,064
Subtotal Operations $444,636 $532,956 $348,218 $352,215 $365,053 $378,522 Storm Water $292,146 $282,760 $292,060 $299,028 $306,172 $313,492 Non-Departmental
Salaries $19,586 $88,005 $87,311 $89,930 $92,628 $95,407 Supplies and Services 72,204 69,400 71,000 72,420 73,868 75,346 Transfers Out 177,170 245,366 248,152 253,115 258,177 263,341 Subtotal Non-Departmental $268,960 $402,771 $406,463 $415,465 $424,673 $434,094 Total Wastewater O&M Expense $1,401,670 $1,650,526 $1,480,969 $1,517,826 $1,564,763 $1,613,642 Water and Wastewater Rate Study  City of Grover Beach
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Wastewater Financial Plan
A financial plan has been prepared that includes the revenues and revenue requirements that were identified for the wastewater system and is presented in Table 28. The plan incorporates specific financial planning criteria to provide guidance to maintain the health of the wastewater utility on an on-going basis. The criteria included the following.
 Generate positive levels of income in each year of the Study period  Maintain the operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement and improvement spending requirements Proposed Revenue Adjustments
Table 28 provides the annual revenue increases recommended to meet the financial planning criteria for the Study period. The financial plan indicates that a 19.5 percent increase is recommended on January 1, 2024 and on each January through January 1, 2027, then 4 percent annual increases for the remaining years of the Study period. The increases are necessary to meet the planning criteria discussed above.

Table 27
Wastewater Capital Improvement Program
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Current Capital Improvement Program (CIP) Projects [1]
Sewer Upgrade for Existing and Future Flows $121,398 $3,600,000 $0 $0 $0 $0 Front Street Lift Station Upgrades 15,252 144,748 - - - - South Oak Park Lift Station Upgrades - 150,000 - - - -
Sewer Upgrade for Existing Flows - 400,000 - - - 3,100,000 Replace Portion of Damaged Strom Drain - - 140,000 - - - Citywide Sewer Lining Project - 100,000 100,000 100,000 100,000 100,000 Total Wastewater CIP $136,650 $4,394,748 $240,000 $100,000 $100,000 $3,200,000 [1] CIP Source: FY 22-23 City CIP document.

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A graphical depiction of the revenue and revenue requirements from Table 28 is presented in Figure 4. Revenue using the current rates is shown as the black line while revenue with revenue adjustments is shown as the red line.

Figure 4 shows that the revenue increases from Table 28 are necessary to meet annual revenue requirements, fund the CIP requirements, maintain the operating reserve, and meet minimum debt service coverage ratios required by debt covenants. Revenue increases beyond FY 2027-28 are assumed to include a 17.0 percent increase in FY 2028-29 followed by 3.5 percent increases for the next three years.

Table 28
Wastewater Financial Plan
Projected
Description FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Proposed Revenue Increase (January 1) 19.5% 19.5% 19.5% 19.5% 4.0% Sewer Fund
Revenue
Rate-based Revenues, Current Rates [1] $928,035 $949,446 $952,368 $955,291 $958,368 $961,291 Total Additional Wastewater Revenue [2] - 77,142 278,181 519,728 809,957 1,031,699 Miscellaneous Income 302,727 409,126 331,069 331,161 331,258 331,350 Rate Stabilization - - 238,000 32,000 - -
Interest Income [3] 88,278 75,140 61,467 59,284 60,979 49,478 Total Revenue $1,319,040 $1,510,854 $1,861,085 $1,897,464 $2,160,562 $2,373,818 Operating Expenses
Operation and Maintenance Expense $1,401,670 $1,450,526 $1,480,969 $1,517,826 $1,564,763 $1,613,642 Minor Capital Outlay - 200,000 - - - -
Total Operating Expenses $1,401,670 $1,650,526 $1,480,969 $1,517,826 $1,564,763 $1,613,642 Capital Expenditures
Capital Improvement Funding $136,650 $4,394,748 $240,000 $100,000 $100,000 $3,200,000 New Debt Proceeds - (3,600,000) - - - (1,400,000)
New Debt Service - - 303,000 303,000 303,000 303,000
Total Capital Expenditures $136,650 $794,748 $543,000 $403,000 $403,000 $2,103,000 Total Revenue Requirements $1,538,320 $2,445,274 $2,023,969 $1,920,826 $1,967,763 $3,716,642 Net Funds Available ($219,280) ($934,420) ($162,884) ($23,362) $192,799 ($1,342,824) Available Reserves
Beginning available reserves [4] $4,343,200 $3,170,780 $2,975,896 $2,952,534 $3,145,333 Rate Stabilization Set Aside (238,000) (32,000) - - -
Ending available reserves $3,170,780 $2,975,896 $2,952,534 $3,145,333 $1,802,509 Target Reserves [5] $1,201,000 $1,325,000 $1,240,000 $1,259,000 $1,282,000 $1,307,000 Above (below) Target $1,845,780 $1,735,896 $1,693,534 $1,863,333 $495,509 Debt Service Coverage
Net Revenues [6] ($82,630) ($139,672) $380,116 $379,638 $595,799 $760,176 Annual Debt Service $0 $0 $303,000 $303,000 $303,000 $303,000 Coverage [7] n/a n/a 125% 125% 197% 251%
[1] Projected using the current rates.
[2] Additional revenue from rate adjustments.
[3] Interest earnings on the average fund balance calculated at 2.0%. [4] The available FY 23-24 cash balance provided by the City. Includes operating and capital fund reserves. [5] Target reserve estimated at 180 days of operation and maintenance expense plus $500,000 as a capital reserve. [6] Includes revenue from rates, rate adjustments, and miscellaneous revenue. [7] Minimum coverage is 125 percent.

Water and Wastewater Rate Study  City of Grover Beach
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Figure 5 provides a graphical depiction of the wastewater fund end-of-year cash reserves versus the Target reserves. The green columns represent the cash reserve balance at the end of year while the purple line indicates the established Target Reserve level. The figure shows that the operating fund balance meets the Target Reserve level in each year for the first five years, dips below the Target Reserve for three years, then returns to meet the target in the last year of the Study.

Wastewater Cost of Service
Similar to AWWA, the Water Environment Federation (WEF) is an industry trade organization that provides guidance on operations, technical training, education, and management of wastewater utilities. General principles are provided to assist agencies with the design of wastewater rates and charges that are consistent with local requirements while also recognizing state laws and legal framework.

The wastewater system’s operating and capital costs would normally be allocated following industry methodology from the WEF. However, water consumption information by the wastewater customer classifications was not available for use in wastewater rate design. The City’s costs are wastewater collection costs and may be considered to be related to wastewater flow since treatment is provided by the SSLOCSD.

Figure 4
Wastewater Financial Plan
Comparison of Revenue with Revenue Requirements
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 Sources and Uses ($ Millions) Operating Exp Debt Service Capital Improvement Funding Reserves Revenue w/o Increases Revenue with Increases Water and Wastewater Rate Study  City of Grover Beach
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Because the water information is not available which would be used to estimate wastewater flow of the customer classifications, the proportionality relationship of the current fixed charges between classifications developed in the City’s last rate study is used as a cost of service relationship for the proposed wastewater rate design.

Wastewater Rate Design
The emphasis on rate design is to achieve fairness and ensure that each customer class pays its fair share of costs.

Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section describes how water rates and charges are designed and includes the proposed schedule of water rates for implementation.

Proposed Wastewater Rates
The current wastewater rate structure is proposed to be maintained and rates are increased with the revenue increase percentages provided in the financial plan. Table 29 presents the proposed fixed charges for the wastewater system for the next five years. Current fixed charges are provided as well as proposed fixed charges for January 1, 2024 through January 1, 2028.

Figure 5
Wastewater Reserves versus Target Reserves
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 ($ Millions) Reserves Target Reserve Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 39
Wastewater Bill Impact Analysis
From inspection of Table 29, the change in SFR customer bills that would occur from the implementation of the proposed wastewater rates for the January 2024 rate increase can be determined. For a SFR customer, the bimonthly bill will increase from $76.60 [($12.82 monthly charge +$25.48 treatment charge) x 2 months] to $80.96 [($15.00 monthly + $25.48 treatment charge) x 2 months], an increase of $4.36 or 5.7 percent.

Figure 6 provides how SFR wastewater bills will increase over time with the implementation of the proposed rates in Table 29 assuming a constant SSLOCSD treatment charge.

Table 29
Proposed Wastewater Rates
Current Proposed
Classification Charge Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge ($ per month)
Boarding House (per unit) $15.54 $18.57 $22.19 $26.52 $31.69 $32.96 Per Bedroom Charge 10.00 11.95 14.28 17.06 20.39 21.21
Car Washes & Laundromats (min charge) 6.19 7.40 8.84 10.56 12.62 13.12 Per 100 cubic feet above minimum 0.00 0.00 0.00 0.00 0.00 0.00 Church 15.06 18.00 21.51 25.70 30.71 31.94
Per parsonage or dwelling unit 12.82 15.32 18.31 21.88 26.15 27.20 Commercial Establishment (Public place up to 5 Fixtures) 15.04 17.97 21.47 25.66 30.66 31.89 Each additional fixture 4.12 4.92 5.88 7.03 8.40 8.74
Factories, Industrial Plants (20 employees or less) 10.12 12.09 14.45 17.27 20.64 21.47 Each additional employee over 20 1.16 1.39 1.66 1.98 2.37 2.46 Hotel, Motel Auto Court or Lodge (per unit) 15.45 18.46 22.06 26.36 31.50 32.76 Mobile Home (per space) 12.82 15.32 18.31 21.88 26.15 27.20 Restaurants (min charge) 2.14 2.56 3.06 3.66 4.37 4.54
Per 100 cubic feet against minimum 0.00 0.00 0.00 0.00 0.00 0.00 Schools (min annual charge per ADA and employee) 3.31 3.96 4.73 5.65 6.75 7.02 Schools with Cafeterias (additional) Per ADA and employees 1.38 1.65 1.97 2.35 2.81 2.92 Single-Family Dwelling Unit 12.82 15.32 18.31 21.88 26.15 27.20 Theater, Clubhouse or Place of Amusement 15.04 17.97 21.47 25.66 30.66 31.89 Travel Trailer and Recreation Vehicle Space 6.60 7.89 9.43 11.27 13.47 14.01 Multi-family, Two or More Dwellings (per unit) 12.82 15.32 18.31 21.88 26.15 27.20 Per each coin-operated washer 2.80 3.35 4.00 4.78 5.71 5.94 Excess Discharge per 100 cubic feet $0.40 $0.48 $0.57 $0.68 $0.81 $0.84 Water and Wastewater Rate Study  City of Grover Beach
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Wastewater Rate Survey
A wastewater rate survey was conducted for neighboring communities to the City of Grover Beach. Chart 2 compares the Grover Beach SFR estimated bi-monthly wastewater bill with those of neighboring communities at the same consumption of 15 HCF bi-monthly. The rate survey includes rate schedules in effect July 2023.

Wastewater bills for Grover Beach are shown using the current rates and the proposed rates for implementation on January 1, 2024. The chart indicates that with the January 2024 wastewater rate implementation, a Grover Beach SFR customer will experience a bill that is among the lowest of the communities listed.

Figure 6
Current and Future Single-family Residential Bi-monthly Wastewater Bills Proposed
SFR Charges Current FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Fixed Charges $25.64 $30.64 $36.62 $43.76 $52.30 $54.40 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Fixed Charges $76.60 $81.60 $87.58 $94.72 $103.26 $105.36 Dollar Change $5.00 $5.98 $7.14 $8.54 $2.10
Percent Change 6.5% 7.3% 8.2% 9.0% 2.0%
$76.60
$81.60
$87.58
$94.72
$103.26 $105.36
$0
$20
$40
$60
$80
$100
$120
Current FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fixed Charges
Water and Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 41
Chart 2
Single-family Residential Bi-Monthly Wastewater Bills
For Rates in Effect July 2023
Note: Above table uses wastewater rates in effect July 2023. Grover Beach January 2024 bill is based on the rate structure and rates in Table 29. Grover Beach, Arroyo Grande, and Oceano CSD bill includes the SSLOCSD treatment charge. Grover Beach also includes the storm water charge.

Tuckfield & Associates 42
Appendix A
Detailed Water Cost of Service Allocation is provided in Appendix A.

Tuckfield & Associates 43
Appendix A-1
Allocation of Water Revenue Requirements to Cost Component Line Total Water Supply Peaking Customer
No. Description FY 23-24 Lopez Groundwater Delivery Max Day Max Hour Meters/Serv Customer Conservation 1 Utility Billing $431,985 - - - - - - $431,985 -
Water System
Salaries/Fringe Benefits
2 Salaries and Benefits $508,930 - - $138,915 $199,529 $170,486 - - - Services and Supplies
3 Supplies $60,100 - - $16,405 $23,563 $20,132 - - -
4 Miscellaneous Fees/Charges 31,000 - - 8,461 12,154 10,385 - - - 5 Vehicle Fuel 14,000 - - 3,821 5,489 4,690 - - -
6 Utilities - Electricity 131,000 - 117,900 3,576 5,136 4,388 - - - 7 Services 57,000 - - 15,558 22,347 19,095 - - -
8 Services - Engineering & Maintenance 175,000 - - 46,675 67,042 57,283 4,000 - - 9 Maintenance of Facilities 71,000 - 3,400 17,522 25,171 21,507 3,400 - - 10 Equipment - - - - - - - - -
11 All Other 73,191 - - 19,978 28,695 24,518 - - -
12 Total Services and Supplies $612,291 $0 $121,300 $131,996 $189,597 $161,998 $7,400 $0 $0 Operating Equipment
13 Equipment Purchases $0 - - $0 $0 $0 - - -
14 Water Meters 40,000 - - - - - 40,000 - -
15 Non Capital Special Projects - - - - - - - - -
16 Total Capital Outlay $40,000 $0 $0 $0 $0 $0 $40,000 $0 $0 17 Non-Departmental $688,471 - - $187,921 $269,921 $230,629 - - - 18 Central Coast Blue O&M Expense 19,285 - - 19,285 - - - - - 19 Lopez Water Expense $1,423,434 $1,423,434 - - - - - - - 20 Water Conservation Fund $13,794 - - - - - - - $13,794 21 Total Operation and Maintenance Expense $3,738,190 $1,423,434 $121,300 $478,117 $659,047 $563,113 $47,400 $431,985 $13,794 Capital Costs
22 Capital Improvements [5] $2,027,700 - - $449,815 $599,975 $677,910 300,000 - - 23 2020 Debt Service 280,923 - - 73,139 97,556 110,228 - - - 24 Total Capital Costs $2,308,623 $0 $0 $522,954 $697,531 $788,138 $300,000 $0 $0 Adjustments
25 Revenue Offsets ($245,900) $0 $0 ($53,939) ($74,351) ($63,528) ($5,347) ($48,735) $0 26 Adjustments for Annual Cash Balance (1,605,762) - - (352,230) (485,521) (414,847) (34,920) (318,244) - 27 Adjustments to Annualize Rate Increase 445,522 - - 97,726 134,709 115,100 9,689 88,298 - 28 Total Adjustments ($1,406,140) $0 $0 ($308,443) ($425,163) ($363,275) ($30,578) ($278,681) $0 29 Total O&M and Capital $4,640,673 $1,423,434 $121,300 $692,628 $931,415 $987,976 $316,822 $153,304 $13,794 30 Percentage Allocation 100.0% 30.7% 2.6% 14.9% 20.1% 21.3% 6.8% 3.3% 0.3% Rate Survey
Water Comparison of Other Communi�es in San Luis Obispo County Wastewater Comparison of Other Communi�es in San Luis Obispo County Grover Beach, Arroyo Grande, and Oceano CSD includes SSLOCSD treatment charge and storm water charge
Attachment 2
Combined Bill Comparison with Other Communi�es in San Luis Obispo County 1 NOTICE TO PROPERTY OWNERS OF PUBLIC HEARING

REGARDING PROPOSED WATER AND WASTEWATER RATES
Hearing Date & Time: November 13, 2023 6:00 PM
Hearing Loca�on: City Hall
154 South 8th Street, Grover Beach, CA 93433
Why are you receiving this notice?
The City of Grover Beach (City) is mailing this no�ce to you because you are a water and/or wastewater customer or are the owner of record of a property that receives water or wastewater service. This no�ce describes proposed changes to the water and wastewater rates and gives informa�on about a public hearing to be held on November 13, 2023 at the City Hall, 154 South 8th Street, Grover Beach, CA, 93433 regarding these proposed changes.

What do water and wastewater rates fund?
The City provides water and wastewater service to residen�al, landscape, and commercial customers. Monthly rates charged to system users (customers) on a bi-monthly basis are the primary source of revenue to operate the water and wastewater systems and are used solely for this purpose. Rate revenue provides funding for annual opera�ng and maintenance costs, capital projects to improve water and wastewater infrastructure, administra�on, and maintaining adequate fund reserves and planning for con�ngencies.

Y
In order to maintain a high level of water quality and ensure adequate supply, several water system capital projects are proposed to be supported by your water payments that include the: Central Coast Blue Water Sustainability Project; Reservoir Maintenance; Automated Meter Reading; Water Meter Replacements; Booster Sta�on upgrades, and other projects. Capital projects that are supported by your wastewater payments include the: sewer upgrades for both future and exis�ng flows, Fronts Street Li� Sta�on Upgrades, South Oak Park Li� Sta�on Upgrades; System Repairs; and Citywide Sewer Lining projects.

New Drought-Resistant Water Supply: Central Coast Blue Water Sustainability Project Central Coast Blue is a regional water sustainability project that will create a new, high-quality, and drought-resistant water supply for Grover Bech, Pismo Beach, and Arroyo Grande. These communi�es are designing and building a new advanced water purifica�on facility that willsupplement local groundwater supplies. The Advanced Treatment Facility will treat water from the City of Pismo Beach's Wastewater Treatment Plant to produce purified water that will be injected into the groundwater basin to supplement the natural groundwater supply and to create a seawater intrusion barrier. The project allows these communi�es to have sufficient water supplies even in �mes of drought.

Central Coast Blue will enhance local supply reliability and help protect the communi�es from droughts by diversifying supply sources and avoiding excessive reliance on any one source of water. This project also reduces the amount of treatment plant effluent to the ocean by 74%. For more informa�on, visit www.centralcoastblue.com.

Maintaining Sustainable Water and Wastewater Systems
Water and wastewater rates support the overall financial plans for water and wastewater. These financial plans account for increasing opera�ng expenses, including support for rising personnel costs, electricity, chemicals, and purchased water (Lopez Lake water). The financial plans also include ensuring adequate reserves and debt service coverage ra�os.

Attachment 3
2 Why are rate increases needed?
Current rates do not provide adequate funding for long-term opera�on and maintenance expenses and capital projects.

The City engaged a consultant to perform studies of the City’s water and wastewater funds, and to recommend user rates designed to meet the City’s financial obliga�ons, including opera�ng and debt service costs, funds for needed capital projects, and maintenance of cash reserves. The rate structures developed in the studies comply with federal, state, and City laws and guidelines. They are consistent with good industry prac�ces and are equitable among the City’s customer classes. At the City Council Mee�ng on September 25, 2023, the report on these studies was presented which included recommended u�lity rates through January of 2028. The City Council reviewed the report and approved the proposed rate schedule to be considered at a public hearing on November 13, 2023.

The proposed rates are based on a comprehensive u�lity rate study and financial plan to ensure reliable and func�onal water and wastewater systems. The City will annually review revenues and expenditures for the water and wastewater funds to ensure that sufficient and appropriate revenues are collected to effec�vely provide for the short and long-term service needs of the community. The rate study report providing the rate development methodology is available at City Hall and on the City’s website at www.groverbeach.org.

New rates
In order to provide necessary funding to operate and carry out long-term improvements of the water and wastewater systems, the City is proposing to implement new rates as a series of annual revenue adjustments over the next five years.

The following tables summarize the proposed water and wastewater rates.

Water Current and Proposed Monthly Fixed Charges
Current Proposed
Rate Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
1" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96

1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
Non-Residential
Meter Size Fixed Charge ($ per month)
5/8" $16.47 $17.91 $21.44 $25.67 $30.73 $31.96
3/4" $24.71 $26.87 $32.17 $38.51 $46.10 $47.95
1" $27.52 $29.85 $35.74 $42.79 $51.22 $53.27

1.5" $54.85 $59.70 $71.47 $85.55 $102.41 $106.51
2" $87.80 $95.52 $114.34 $136.87 $163.84 $170.40
3" $175.61 $191.04 $228.68 $273.73 $327.66 $340.77
4" $274.55 $298.50 $357.31 $427.71 $511.97 $532.45
3 Water Current and Proposed Variable (Consump�on) Rates Wastewater Current and Proposed Monthly Charges
Impact on your bill
For the proposed rates effec�ve January 1, 2024, a typical single-family home that uses 15 Units* of water every two months, the water por�on of your bill would increase from $93.69 per billing cycle (every two months) currently to $120.37 per billing cycle or $13.34 more per month. The wastewater por�on of the bill would increase from $25.64 to $30.64 per billing cycle or $2.50 per month. The accompanying graph provides a summary of combined bills, exis�ng and proposed, for water and wastewater under three usage scenarios. The comparison includes wastewater charges from South San Luis Obispo County Sanita�on District as well as a 1.0% U�lity Tax applied to the water bill. The dark blue boxes represent the total increases by usage level. The City’s total u�lity rates are currently near or at the lowest rates in the county compared with other ci�es and would remain near the lowest countywide a�er the first-rate increase.

Current Proposed
Classification Rate Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Variable Charge ($ per HCF)
Residential
Tier 1 - 0 to 10 units $2.99 $4.20 $5.03 $6.03 $7.22 $7.51 Tier 2 - 11 to 22 units $6.17 $8.51 $10.19 $12.20 $14.61 $15.20 Tier 3 - Over 22 units $8.90 $11.91 $14.26 $17.07 $20.44 $21.26 Landscape $6.72 $9.11 $10.91 $13.06 $15.64 $16.27
All Other $6.47 $7.90 $9.46 $11.33 $13.57 $14.12
Current Proposed
Classification Charge Jan 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Fixed Charge ($ per month)
Boarding House (per unit) $15.54 $18.57 $22.19 $26.52 $31.69 $32.96 Per Bedroom Charge 10.00 11.95 14.28 17.06 20.39 21.21
Car Washes & Laundromats (min charge) 6.19 7.40 8.84 10.56 12.62 13.12 Per 100 cubic feet above minimum 0.00 0.00 0.00 0.00 0.00 0.00 Church 15.06 18.00 21.51 25.70 30.71 31.94
Per parsonage or dwelling unit 12.82 15.32 18.31 21.88 26.15 27.20 Commercial Establishment (Public place up to 5 Fixtures) 15.04 17.97 21.47 25.66 30.66 31.89 Each additional fixture 4.12 4.92 5.88 7.03 8.40 8.74
Factories, Industrial Plants (20 employees or less) 10.12 12.09 14.45 17.27 20.64 21.47 Each additional employee over 20 1.16 1.39 1.66 1.98 2.37 2.46 Hotel, Motel Auto Court or Lodge (per unit) 15.45 18.46 22.06 26.36 31.50 32.76 Mobile Home (per space) 12.82 15.32 18.31 21.88 26.15 27.20 Restaurants (min charge) 2.14 2.56 3.06 3.66 4.37 4.54
Per 100 cubic feet against minimum 0.00 0.00 0.00 0.00 0.00 0.00 Schools (min annual charge per ADA and employee) 3.31 3.96 4.73 5.65 6.75 7.02 Schools with Cafeterias (additional) Per ADA and employees 1.38 1.65 1.97 2.35 2.81 2.92 Single-Family Dwelling Unit 12.82 15.32 18.31 21.88 26.15 27.20 Theater, Clubhouse or Place of Amusement 15.04 17.97 21.47 25.66 30.66 31.89 Travel Trailer and Recreation Vehicle Space 6.60 7.89 9.43 11.27 13.47 14.01 Multi-family, Two or More Dwellings (per unit) 12.82 15.32 18.31 21.88 26.15 27.20 Per each coin-operated washer 2.80 3.35 4.00 4.78 5.71 5.94 Excess Discharge per 100 cubic feet $0.40 $0.48 $0.57 $0.68 $0.81 $0.84 4 Example bill calcula�ons using proposed January 1, 2024 rates at 15 HCF (Units):

Water: .....................$17.91 Monthly ¾” Meter Base Charge X 2 Months + $4.20/HCF X 10 HCF +$8.51/HCF X 5 HCF = $120.37 City Wastewater:.....................................................$15.32 per Month per Dwelling Unit X 2 Months X 1 Dwelling Unit = $30.64 South San Luis Obispo County Sanitation District:........................................................... $25.48 per Month X 2 Months = $50.96

1.0% Utility Tax: ....................................................................................................................................................................... $1.20 Total: $203.17
How do you file a protest or participate in the public hearing? The City Council will consider the new rate structure and proposed revenue increase at a public hearing on Monday, November 13, 2023 at 6:00 p.m. at City Hall, 154 South 8th Street, Grover Beach, CA, 93433. You are invited to present oral or writen tes�mony at the public hearing.

Any owner or customer of record of a parcel subject to the proposed rates may submit a writen protest against the proposed rate revisions. If writen protests are filed with respect to a majority of the affected property parcels, the proposed rate revisions will not be adopted.

A writen protest must contain the street address or Assessor's Parcel Number (APN) for the parcel(s) with respect to which the protest is made. The protest must also be signed by the owner or customer. Protests may be mailed or hand delivered to the City’s offices at 154 South 8th Street, Grover Beach, CA, 93433. Protests may also be delivered to the City Clerk at the public hearing. To be valid, a signed writen protest must be received by the City Clerk at or before the �me of the protest hearing.
*1 Unit = 1 HCF, 1 HCF = 748 Gallons
$131.01 $147.47
$171.23
$203.17
$286.76
$359.57
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
Current 7 HCF Proposed 7 HCF Current 15 HCF Proposed 15 HCF Current 30 HCF Proposed 30 HCF $16.46
$31.94
$72.81
Agenda Item No. 7

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: September 25, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Deanne Purcell, Administrative Services Director SUBJECT: Resolution to Proceed with Planning for the Issuance of Central Coast Blue Project Financing and Directing the City Manager to Enter into an Agreement for the Financing Team

RECOMMENDATION
Adopt a resolution to authorize staff to proceed with planning for the issuance of an Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan and/or other financing through the State Revolving Loan Fund or Tax-Exempt Financing and direct the City Manager to enter into agreements for the Financing Team.

BACKGROUND
In prior meetings with the Council and the Central Coast Blue Regional Recycled Water Joint Powers Authority (CCBJPA) Board, it was determined that the Central Coast Blue (CCB) project would best be financed through a WIFIA Loan. On July 24, 2023, Council authorized staff to proceed with the WIFIA Loan application and pay fees associated with the application. In addition, Council authorized fees for the Standard & Poor’s (S&P) Rating Evaluation Service (RES) required for the application. On August 10, the WIFIA Loan application was filed and the associated fee was paid. On September 5, staff presented the findings and recommendations from the Utility Rate Study to the Council including recommended water rate increases to pay for the City’s portion of Central Coast Blue costs. The Council subsequently directed staff to prepare an agenda item on September 25 to implement the Proposition 218 noticing process tied to a public hearing to consider the proposed water and wastewater rates.

The next steps in completing the WIFIA Loan application are to respond to additional requests from the EPA and to provide the EPA with the rating indicator for this application from S&P. S&P specifically requested that the City not start the RES process until the utility rate study was completed and the Proposition 218 noticing process was close to starting. Pending Council approval of this noticing process, the City will begin the S&P RES process in the next two weeks.

It is expected that S&P can provide the City with the rating indicator in October that can then be provided to the EPA. This Resolution for authorization to proceed with Central Coasts Blue project financing includes additional authorization to proceed with other financing such as the State Revolving Loan financing or tax-exempt financing in the event there are circumstances that would justify alternate financing sources. Approval of this authorization would enhance the project schedule and preclude a delay in establishing financing by not requiring additional public meetings.

Staff have been working with consultants Albert Peché of A. M. Peché & Associates LLC and Albert Reyes of Kutak Rock LLP on an hourly basis to complete the WIFIA Loan application.

These consultants have assisted the City previously in the issuance of several General Obligation Bonds, Water Revenue Bonds, Continuing Disclosure Reporting, and other matters. Their Staff Report: Direction to proceed with the WIFIA Loan Issuance Page 2 September 25, 2023

experience has been invaluable in the WIFIA Loan application process. Now that the application process is nearing completion, the City needs to engage these consultants for issuance of the WIFIA Loan. Staff is recommending the Council give direction to the City Manager to negotiate relevant agreements and engage their respective services. Draft agreements are shown as Attachment 2 for the Council’s information. The fees associated with the WIFIA Loan issuance will be contingent, and payable from the WIFIA Loan proceeds. Legal documentation, and information on costs of issuance for the WIFIA Loan will be brought back to Council for approval along with the WIFIA financing agreement in early 2024.

FISCAL IMPACT
The fees for A. M. Peché & Associates LLC and Kutak Rock LLP (the “Financing Team”) are approximately $85,000 for each firm given their respective work but are contingent upon closing and payable from the WIFIA Loan and/or other financing through the State Revolving Loan Fund or Tax-Exempt Financing. Therefore, if the Loan does not close the City will not need to pay this amount. Directing the City Manager to engage the Financing Team will allow our consultants to begin working with the EPA and its legal team to prepare the legal documentation necessary for the WIFIA Loan and/or other financing through the State Revolving Loan Fund or Tax-Exempt Financing. .

ALTERNATIVES
The Council has the following alternatives to consider:

1. Adopt a resolution to authorize staff to proceed with planning for the issuance of an Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA) Loan and/or other financing through the State Revolving Loan Fund or Tax-Exempt Financing and direct the City Manager to enter into agreements for the Financing Team; or

2. Do not adopt a Resolution authorizing staff to proceed; or

3. Provide staff with alternative direction.

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

Attachments

1. Resolution

2. Draft Financing Team Agreements
RESOLUTION NO. 23-

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

CALIFORNIA, DIRECTING STAFF TO PROCEED WITH PLANNING FOR THE

ISSUANCE OF CERTAIN OBLIGATIONS TO FINANCE THE CENTRAL COAST

BLUE PROJECT AND DIRECTING THE CITY MANAGER TO ENGAGE A

FINANCING TEAM IN CONNECTION THEREWITH
WHEREAS, the City of Grover Beach (the “City”) is a municipal corporation duly organized and existing under the laws of the State of California; and WHEREAS, the City proposes to participate in the Central Coast Blue Project with the City of Arroyo Grande and City of Pismo Beach to construct a regional recycled water project that will enhance supply reliability by injecting advanced purified water into the Northern Cities Management Area of the Santa Maria Groundwater Basin (“Project”); and WHEREAS, the City has expressed interest in the issuance of obligations, such as a financing through the State Water Resources Control Board’s Clean Water State Revolving Fund program and the United States Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act program, an installment purchase agreement, revenue bonds and/or certificates of participation (the “Obligations”) to finance the Project on either a private placement or public offering basis; and
WHEREAS, the City Council of the City desires to direct staff to pursue the steps necessary to issue the Obligations, to appoint A. M. Peché & Associates LLC, as municipal advisor, and Kutak Rock LLP, as bond counsel and disclosure counsel (if the Obligations are issued on a public offering basis), for the issuance of the Obligations.

NOW, THERFORE, BE IT RESOLVED that the City Council of the City of Grover Beach, California, does hereby :

SECTION 1. Direction to Staff. The City Manager and all other employees of City are hereby authorized and directed to take such actions as are necessary or appropriate to provide for the issuance of the Obligations on either a private placement or public offering basis, and, at such time as determined appropriate, to present to this City Council all resolutions and documents necessary in connection therewith. Nothing in this Resolution shall in any way commit the City to issue the Obligations, and the City is under no obligation to go forward with issuance of the Obligations unless satisfactory terms are presented to the City.

SECTION 2. Approval of Consultants. The City Council hereby appoints the firms of A.

M. Peché & Associates LLC, as municipal advisor, and Kutak Rock LLP, as bond counsel and disclosure counsel (if the Obligations are issued on a public offering basis), in connection with the proposed issuance of the Obligations. The City Council hereby authorizes and directs the City Manager to execute and deliver an agreement with said firms for their respective services.

Payment of fees and expenses with respect to such agreements shall be contingent upon the issuance of the Obligations.

Attachment 1
Resolution No. 23- Page 2
SECTION 3. Other Acts. The officers and staff of the City are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents, which in consultation with the City Attorney and Kutak Rock LLP, bond counsel, they may deem necessary or advisable in order to effectuate the purposes of this Resolution, and any and all such actions previously taken by such Officers or staff members are hereby ratified and confirmed.

SECTION 4. Effective Date. This Resolution shall take effect upon adoption.

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 25th day of September 2023.

KAREN BRIGHT, MAYOR
Attest:

WENDI B. SIMS, CITY CLERK
**DRAFT**
1 CONSULTING SERVICES AGREEMENT
This CONSULTING SERVICES AGREEMENT (the "Agreement") is made and entered into as of the 25th day of September, 2023, ("Effective Date"), by and between the Grover Beach (the “City” or “Issuer") and A. M. Peché & Associates LLC (“Consultant" or “Peché & Associates LLC”) in regards to financing of the City’s portion of the Central Coast Blue Project (the “Obligations”).

1. Employment. The Issuer hereby employs Peché & Associates LLC to perform, upon request of the Issuer, services set forth in the Scope of Services attached hereto.

2. Representations of Peché & Associates LLC. Peché & Associates LLC hereby represents the following:

A. Peché & Associates LLC has no interest, whether direct, indirect or contingent, in any property or contract arising from or affected by the issuance and sale of the Obligations, except as financial advisor to the Issuer under this Agreement. Peché & Associates LLC will not receive a fee from any source other than the Issuer for services connected with the actual issuance of the Obligations, except as may be disclosed in writing, and has no arrangement with respect thereto with any party other than the Issuer.

B. Peché & Associates LLC is an independent private business and is not a department or agency of the federal or California State governments or any other governmental entity.

Peché & Associates LLC is not an investment banker, investment advisor, underwriter, remarketing agent, broker or dealer in securities, or legal counsel, and will not function in any of those capacities hereunder.

3. Agreements of Peché & Associates LLC. Peché & Associates LLC hereby agrees as follows:

A. Peché & Associates LLC will provide, as requested by the Issuer, the services set forth in the Scope of Services attached hereto.

B. In providing such services, Peché & Associates LLC will make available the experience of its organization so as to represent the Issuer effectively.

4. Obligations Terms. The Obligations sale shall be subject to rates, terms, conditions and arrangements mutually agreeable to and negotiated between the Issuer and the buyer of the Obligations.

5. Compensation. The Issuer shall pay Peché & Associates LLC an amount of $85,000 upon the closing of the sale of Obligations. In addition, the Issuer shall reimburse Peché & Associates LLC’s actual and reasonable expenses for couriers, mailing, telephone, travel, data and research information, copying, conference call charges, and other out-of-pocket expenses incurred by or for Peché & Associates LLC in performance of its services hereunder since the start of work for this engagement. Expenses will include $75 per month beginning in the first month of the first meeting date during the course of this engagement to and including for the month of the closing of the Obligations. Mileage expenses will be billed at .655 per mile or the current prevailing IRS allowable reimbursement rate. However, no fee shall be payable to Peché & Associates LLC if the sale of the Obligations are not closed successfully; provided that, if the sale of the Obligations is terminated due to an exercise of early termination under Section 8 based upon the Issuer’s discretion, or based upon a decision to use other funding, Peché & Attachment 2
Agreement for Services

2 Associates LLC shall be paid all expenses incurred and a fee proportionate to the work performed to the date of that determination.

6. Assignment. Peché & Associates LLC may assign this Agreement to a successor firm upon mutual agreement of Peché & Associates LLC and the City Manager. Peché & Associates LLC agrees to give notice of assignment to Issuer and upon receipt of such notice Issuer agrees to make all payments to the assignee designed in the assignment.

7. Entire Agreement; Amendments. All discussions, negotiations and prior agreements between the Issuer and Peché & Associates LLC are merged into this Agreement. This Agreement is the entire agreement between the parties respecting the subject matter hereof. This Agreement may be amended only in writing.

8. Term. This Agreement shall continue from month to month for the period reasonably necessary for the performance of the sale of the Obligations; provided, that either party hereto may terminate this Agreement for cause upon 15 day’s written notice to the other party.

9. Government Code. Peché & Associates LLC and its representatives are not public officials or participating in governmental decisions, as those terms are used in Section 87100 of the California Government Code. No actions or opinions necessary for the performance of Peché & Associates LLC’s duties under this Agreement will cause Peché & Associates LLC to be a “public official” or “participating in a governmental decision,” as those terms are used in Section 87100 of the California Government Code.

10. Information. The Issuer, its officials and staff, bond/special counsel, fiscal consultant, placement agent and others will be providing to Peché & Associates LLC various data, records, studies, computer printouts and other information and representations as to the facts relating to the Issuer and the Obligations. Peché & Associates LLC will be using and relying upon such data, records, studies, computer printouts and other information in the preparation of Peché & Associates LLC’s work products. Peché & Associates LLC shall not be obligated to establish or verify the accuracy or completeness of the information furnished to Peché & Associates LLC.

11. Standards. Peché & Associates LLC shall perform its services pursuant hereto in accordance with competent professional standards. The liability of Peché & Associates LLC to the Issuer for any breach of those professional standards arising out of or related to this Agreement or the services performed hereunder shall not exceed the fees paid or payable under this Agreement.

12. Insurance Requirement.
(a) Consultant shall obtain and maintain during the performance of any services under this Agreement the following insurance coverage issued by a company satisfactory to the City, unless the Chief Financial Officer, waives in writing, the requirement that Consultant obtain and maintain such insurance coverage.

1. Commercial general liability insurance including a contractual liability endorsement in an amount not less than $1,000,000 per occurrence limit and no less than $2,000,000 in the aggregate for bodily injury and property damage for each claimant for general liability;

2. Business automobile liability insurance in an amount not less than $1,000,000 combined single limit for bodily injury and property damage for each claimant for automobile liability; Agreement for Services

3 3. Errors and omissions insurance to a minimum coverage of $1,000,000, with neither Consultant nor listed sub-consultants having less than $1,000,000 individually;

4. In the event that Consultant has any employees, Worker’s compensation insurance in compliance with the laws of the State of California, including employer’s liability insurance in an amount not less than $1,000,000 per claimant.
(b) Consultant shall, prior to performance of any services, file with the City a certificate of insurance, on an City approved form, certifying that the above insurance coverages shall remain in effect at all times during the term of this Agreement, or any extension thereof. (c) Consultant agrees that all insurance coverages shall be provided by a California admitted insurance carrier with an A.M. Best rating of A-7 or better and shall bear endorsements providing that the policies may not be canceled or modified without thirty (30) days’ prior written notice to the City.

City shall not approve or accept any endorsement if the endorsement contains “best effort” modifiers or if the insurer is relieved from the responsibility to give such notice. (d) Consultant agrees that the commercial general liability and business automobile liability insurance policies shall be endorsed to name City, its City Board, officers, and employees as additional insured and to provide that the coverage’s provided to City shall be primary and not contributing to or in excess of any existing City insurance coverage’s.
(e) All insurance standards applicable to Consultant shall also be applicable to Consultant’s subcontractors. Consultant may utilize subcontractors to prepare reports. Consultant agrees to maintain appropriate agreements with subcontractors and to provide proper evidence of coverage upon receipt of a written request from the City.

13. Governing Law. This Agreement shall be construed in accordance with the laws of the State of California.

14. Independent Contractor. Peché & Associates LLC’s relationship to Issuer is that of an independent contractor.

15. Additional Disclosures. Additional Disclosures required by Municipal Advisors are listed after the Scope of Services at the end of this Agreement and are part of this Agreement. As described in the Additional Disclosures, Consultant may utilize Del Rio Advisors, LLC as a subcontractor (the “Subcontractor”) from time to time for work performed under this Agreement and compensation for this firm will be paid for by the Consultant. Subcontractor is registered as a Municipal Advisor with the SEC and the MSRB and will provide additional disclosures, if any, to the City when required.

Agreement for Services

4 IN WITNESS WHEREOF, this Agreement has been executed and delivered for and in the names and on behalf of the City and Peché & Associates LLC as of the date set forth below.

DATED: September 25, 2023

CITY OF GROVER BEACH
By:

Name: Matthew Bronson
Title: City Manager

CITY OF GROVER BEACH
By:

Name: David Hale
Title: City Attorney
A. M. PECHÉ & ASSOCIATES LLC
Albert M. Peché, Manager
Agreement for Financial Advisory Services

1 Grover Beach/A. M. Peché & Associates LLC

AGREEMENT FOR SERVICES

SCOPE OF SERVICES
In performing under this Agreement, Peché & Associates LLC shall, as and when requested by City, perform the following services.

When requested, Peché & Associates LLC will provide the following:

1. Review and discuss financing options, methods of sale and strategies with the Issuer’s officials and staff including the EPA’s WIFIA Loan, State Revolving Fund Loan, or tax-exempt financing.

2. Participate in calls between City staff, bond counsel, EPA staff and EPA attorneys. Organize calls with participants when requested.

3. Assist in the selection of a bond rating agency.

4. Assist the City in developing a Financing Proforma that can be used by the EPA staff and the rating agency reflecting the Water Enterprise Revenues as security for a WIFIA Loan.

5. Assist in the rating process with S&P. This includes preliminary calls with S&P to discuss information required, rating process, and timing to get a rating. Review and gather information to provide to S&P required for the rating.

6. Develop a transactional budget with the Issuer.

7. Review the term sheet and legal documentation prepared by bond counsel and EPA attorneys.

8. Meet with the Issuer’s governing body and Issuer committees, officers, professional staff and employees in authorizing and reviewing the structure of the Obligations, so as to achieve an effective result consistent with the policies, goals and objectives established by the Issuer.

9. Review of the Issuer’s Debt Management Policy as it relates to the issuance of the Obligations.

10. Review financial and quantitative analyses provided by the City, the EPA and other participants.

11. Discuss with the Issuer’s officials and staff the maturity and amortization schedules, redemption features, covenants, debt service reserve fund, and timing of the proposed offering and sales of the Obligations to assist in determining desirable results.

12. Advise the Issuer as to market conditions and State and Local Government Securities rates.

Agreement for Financial Advisory Services

2 MUNICIPAL ADVISOR ADDITIONAL DISCLOSURES
Fiduciary Duty
Consultant is registered as a Municipal Advisor with the SEC and Municipal Securities Rulemaking Board (“MSRB”). As such, Consultant has a Fiduciary duty to the Issuer and must provide both a Duty of Care and Loyalty that entail the following:

Duty of Care
a) exercise due care in performing its municipal advisory activities; b) possess the degree of knowledge and expertise needed to provide the Issuer with informed advice;
c) make a reasonable inquiry as to the facts that are relevant to Issuer’s determination as to whether to proceed with a course of action or that form the basis for any advice provided to Issuer; and
d) undertake a reasonable investigation to determine that Consultant is not forming any recommendation on materially inaccurate or incomplete information; Consultant must have a reasonable basis for:
i. any advice provided to or on behalf of Issuer;
ii. any representations made in a certificate that it signs that will be reasonably foreseeably relied upon by Issuer, any other party involved in the municipal securities transaction or municipal financial product, or investors in the Issuer securities; and iii. any information provided to the Issuer or other parties involved in the municipal securities transaction when participating in the preparation of an official statement.

Duty of Loyalty
Consultant must deal honestly and with the utmost good faith with Issuer and act in Issuer’s best interests without regard to the financial or other interests of Consultant. Consultant will eliminate or provide full and fair disclosure (included herein) to Issuer about each material conflict of interest (as applicable). Consultant will not engage in municipal advisory activities with Issuer as a municipal entity, if it cannot manage or mitigate its conflicts in a manner that will permit it to act in Issuer’s best interests.

Conflicts of Interest and Other Matters Requiring Disclosures:
• As of the date of the Contract, there are no actual or potential conflicts of interest that Consultant is aware of that might impair its ability to render unbiased and competent advice or to fulfill its fiduciary duty. If Consultant becomes aware of any potential conflict of interest that arises after this disclosure, Consultant will disclose the detailed information in writing to Issuer in a timely manner.

16. The fee paid to Consultant increases the cost of investment to Issuer. The increased cost occurs from compensating Consultant for municipal advisory services provided.

Agreement for Financial Advisory Services

3 17. Consultant may utilize Del Rio Advisors, LLC as a subcontractor (the “Subcontractor”) from time to time for work performed under this Agreement and compensation for this firm will be paid for by the Consultant. Subcontractor is registered as a Municipal Advisor with the SEC and the MSRB and will provide additional disclosures, if any, to the City when required.

18. Consultant does not act as principal in any of the transaction(s) related to this Contract.

19. During the term of the municipal advisory relationship, this Contract will be promptly amended or supplemented to reflect any material changes in or additions to the terms or information within this Contract and the revised writing will be promptly delivered to Issuer. • Consultant does not have any affiliate that provides any advice, service, or product to or on behalf of the client that is directly or indirectly related to the municipal advisory activities to be performed by Consultant;
• Consultant has not made any payments directly or indirectly to obtain or retain Issuer’s municipal advisory business;
• Consultant has not received any payments from third parties to enlist Consultant’s recommendation to Issuer of its services, any municipal securities transaction or any municipal finance product; • Consultant has not engaged in any fee-splitting arrangements involving Consultant and any provider of investments or services to Issuer;
• Consultant has a conflict of interest from compensation for municipal advisory activities to be performed, that is contingent on the size or closing of any transactions as to which Consultant is providing advice;
• Consultant does not have any other engagements or relationships that might impair Consultant ability either to render unbiased and competent advice to or on behalf of Issuer or to fulfill its fiduciary duty to Issuer, as applicable; and
• Consultant does not have any legal or disciplinary events that are material to Issuer’s evaluation of the municipal advisory or the integrity of its management or advisory personnel.

Legal Events and Disciplinary History
Consultant does not have any legal events and disciplinary history on their Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. Issuer may electronically access Consultant’s most recent Forms MA and each most recent Forms MA-I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html.

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC.

Agreement for Financial Advisory Services

4 Registration and Customer Complaints
Pursuant to Municipal Securities Rulemaking Board Rule G-10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal entity and obligated person clients which include the following:

Consultant is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

Within the Municipal Securities Rulemaking Board (“MSRB”) website at www.msrb.org, Issuer may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities
Recommendations
If Consultant makes a recommendation of a municipal securities transaction or municipal financial product or if the review of a recommendation of another party is requested in writing by Issuer and is within the scope of the engagement, Consultant will determine, based on the information obtained through reasonable diligence of Consultant whether a municipal securities transaction or municipal financial product is suitable for Issuer. In addition, Consultant will inform Issuer of:

• the evaluation of the material risks, potential benefits, structure, and other characteristics of the recommendation;
• the basis upon which Consultant reasonably believes that the recommended municipal securities transaction or municipal financial product is, or is not, suitable for Issuer; and • whether Consultant has investigated or considered other reasonably feasible alternatives to the recommendation that might also or alternatively serve Issuer’s objectives.

If Issuer elects a course of action that is independent of or contrary to the advice provided by Consultant, Consultant is not required on that basis to disengage from Issuer.

Record Retention
Effective July 1, 2014, pursuant to the Securities and Exchange Commission (SEC) record retention regulations, Consultant are required to maintain in writing, all communication and created documents between Consultant and Issuer for five (5) years.
1 AGREEMENT FOR BOND AND DISCLOSURE COUNSEL SERVICES
THIS AGREEMENT (the “Agreement”) is made and entered into this __ day of ______, 2023, between the City of Grover Beach, whose address is 154 S. Eighth Street, Grover Beach, CA 93433 (the “City”) and Kutak Rock LLP (“Kutak”) whose address is 5 Park Plaza, Ste. 1500, Irvine, California 92614.

W I T N E S S E T H:

WHEREAS, the City proposes to participate in the Central Coast Blue Project with the City of Arroyo Grande and City of Pismo Beach to construct a regional recycled water project that will enhance supply reliability by injecting advanced purified water into the Northern Cities Management Area of the Santa Maria Groundwater Basin (“Project”); and WHEREAS, the City has expressed interest in the issuance of obligations, such as a financing through the State Water Resources Control Board’s Clean Water State Revolving Fund program and the United States Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act program, an installment purchase agreement, revenue bonds and/or certificates of participation (the “Obligations”) to finance the Project on either a private placement or public offering basis; and
WHEREAS, Kutak is specifically trained and experienced in the conduct of proceedings for accomplishing the financing of the Project through the preparation, sale and delivery of the Obligations; and
NOW, THEREFORE, in consideration of the covenants and premises herein contained and other good and valuable consideration, the parties hereto agree as follows:

1. Duties. Kutak shall provide legal services in connection with the authorization, issuance and delivery of the Obligations (the “Transaction”). Such services shall include, but not be limited to, the following:
a. Reviewing California State law regarding the authority for the City to authorize and issue the Obligations.
b. Conferring and consulting with the City, the officers, administrative staff, financial advisor, underwriter and other representatives of the City in connection with the preparation and formulation of the Transaction.
c. Preparation of the Resolution of Issuance, security documents and all other resolutions, agreements, notices and other documents necessary for the proper conduct and consummation of the Transaction.
d. A review of all financial documents for legal sufficiency. e. If necessary, preparation of the official statement or disclosure document in connection with the Transaction to assure the disclosure of all material facts within the knowledge of the City.
2 f. Preparation of an incumbency certificate and any and all other closing documents required of the City to accompany delivery of the financing documents. g. Preparation of documentation and assistance in obtaining credit enhancement and/or a rating on the Obligations if such credit enhancement and/or a rating is sought.
h. Attendance at and supervision of the closing, and issuing the legal opinion of Kutak stating that the interest payments with respect to the Obligations is exempt from present federal incomes taxes and is exempt from State income taxes and approving in all respects the legality of all proceedings for the authorization, issuance, sale and delivery of the Obligations and other agreements relating to the Transaction. i. Preparation of a transcript of the closing of the Transaction. j. Conferring and consulting with City officials and agents with regard to any problems which may arise prior to the maturity of the Obligations. k. Providing any other necessary services, including ongoing monitoring of the Transaction after the sale of the Obligations and assistance to the City regarding the Transaction, generally expected of Kutak not listed above.

2. Compensation. For provision of the services to be rendered pursuant to this Agreement related to the execution and delivery or issuance of the Obligations, the City shall pay Kutak a fee of $85,000, which fee shall include any out-of-pocket expenses incurred by it in the course of this engagement, such as reproduction and printing costs, word processing time, long distance telephone calls and similar items (excluding any publication costs or fees incurred for information included in the official statement). Said fee is payable only upon issuance of the Obligations and shall be paid from proceeds thereof; provided however, if the City elects to terminate this Agreement prior to the issuance of the Obligations, the City agrees to pay Kutak all out-of-pocket expenses incurred by it in the course of this engagement and a fee proportionate to the services Kutak has performed commencing on the date of this Agreement to the date of termination of this Agreement. Such fee shall be determined by multiplying the number of hours Kutak actually and reasonably expends in completing the services outlined in this Agreement at the hourly rate of the attorney performing such services.

In the event Kutak is requested to perform additional work outside of its normal and customary services as bond counsel or disclosure counsel, such as litigation, Kutak will be paid additional compensation therefor following the submission of monthly, itemized bills at the hourly rate of the attorney performing such services; provided, however, there shall be no additional compensation due Kutak under the paragraph without the prior approval of the City.

3. Assignment. This Agreement may be assigned by the City to any other issuer of the securities as may be necessary to consummate the Transaction, without the consent of but with notice to Kutak.

4. No Guarantees; Entire Agreement. Nothing in this Agreement and nothing in our statements to you should be construed as a guarantee or promise about the outcome of the Transaction or any phase thereof. We make no such guarantees or promises. 3 Comments about the course or outcome of the Transaction or any phase thereof which we may make from time to time are expressions of opinion only. The written Agreement constitutes the entire Agreement between the parties hereto with respect to Kutak services and neither party has been induced to make or enter into this Agreement by reason or promise, agreement, representation, statement or warranty other than as herein contained.

5. Other Representation. Kutak may, from time to time, have clients with interests which may be potentially adverse to the City. Kutak reserves the right to represent said clients except on matters directly relating to the issuance and sale of the Obligations. We will disclose any such potential conflict to you and will seek a waiver of that conflict. We will of course work with you and our other clients to construct an appropriate ethical wall to protect the confidences of all of our clients and to clearly separate our work in any such case. Although we are not asking for a waiver now since these conflicts may not emerge, we ask that you agree to give good faith consideration to our requests for any such waivers in the future. This will allow us to better serve all of our clients.

6. Work Product. Our files developed in the course of work undertaken pursuant to this Agreement are your property. We will release those files to you or to anyone else you designate upon your written request delivered to the attorney in charge of this matter.

However, such a request will signify the end of this engagement if it is then still ongoing. You agree that we may, in our sole discretion, copy all or any portion of such files at your expense and retain such copies, and that we may have a reasonable period of time before releasing the documents to you or your designee in order to make the copies. We will from time to time send portions of your files that are not currently needed to an off-site storage facility. The cost of using this facility will be our sole expense. However, we are not the guarantor of the security of any off-site storage facility. Accordingly, you agree that the firm will not be responsible for any damages which may occur as a result of the loss of any of your files which we store at an off-site storage facility. You also agree that we may, after the passage of two years without our having performed any work for you pursuant to this engagement, destroy the files of this engagement without further notice to you unless you have previously provided us with written instructions to forward the files to you or to another person you designate.

7. Insurance. We carry professional liability insurance which would cover the services we will be providing under the terms of this Agreement. That insurance is subject to a self-insured retention.

8. Litigation. If an action or proceeding is commenced to enforce this Agreement or any provision hereof, the prevailing party in such an action or proceeding shall be entitled to recover the reasonable amount of his, her or its fees and costs thereof, in addition to compensatory damages. For the purposes of enforcing this Agreement only, and as otherwise required by law, you agree that this Agreement may be disclosed to a court.

9. Notices. All notices, demands, requests, consents and approvals given, required or permitted to be given hereunder, shall be contained in writing and shall be deemed sufficiently given if sent by express delivery service or by registered or certified mail, postage prepaid and return receipt requested, addressed to the parties at the addresses set forth above or on any addendum or counterpart to this Agreement, or to such other address as the recipient shall have notified the sender of in writing. You agree to keep us currently informed of any change in 4 your address or telephone numbers so that we may effectively communicate with you. We will also advise you promptly of any change in the firm's business address, electronic mail address, telephone or facsimile numbers.

10. California Law. This Agreement is made under and shall be construed in accordance with the substantive laws of the State of California.

11. Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original but all of which shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers and representatives thereto duly authorized, all as of the day and year first above written.

CITY OF GROVER BEACH
By: ______________________________
Authorized Representative

KUTAK ROCK LLP
By: ______________________________
Albert R. Reyes, a Partner
Agenda Item No. 8

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: September 25, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: John Peters, Chief of Police
SUBJECT: Introduction and First Reading of an Ordinance Repealing and Replacing Chapter 3 of Article III (Traffic Regulations) of the Grover Beach Municipal Code

RECOMMENDATION
Conduct the first reading, by title only, and introduce an Ordinance repealing and replacing Chapter 3 of Article III (Traffic Regulations) of the Grover Beach Municipal Code and schedule the second reading and public hearing for the next regularly scheduled meeting.

BACKGROUND
On October 5, 1960, the City Council adopted its inaugural traffic regulation ordinance, embracing the Uniform Traffic Ordinance of 1960, a comprehensive document crafted by the League of California Cities and widely adopted throughout municipalities in California. Since then, this ordinance has undergone periodic updates, while largely preserving its original essence. However, recent review by staff has revealed portions of the ordinance that have become antiquated and irrelevant to the City's needs. For instance, Section 8.8 addresses Restrictions on the Use of Freeways, even though no freeways traverse the city limits of Grover Beach. Additionally, staff identified significant redundancy between the ordinance and the California Vehicle Code, rendering many sections superfluous.

In the present ordinance, Section 3302.2.7 establishes the Advisory Traffic Committee, a regulation that is replicated, albeit with subtle distinctions, in Article III, Chapter 3, Article II, Section 2.7. This committee comprises key staff members, including the Chief of Police, Fire Chief, Community Development Director, and Public Works Director, or their designated representatives.

The committee also includes one civilian member appointed by the City Council, serving a twoyear term. Their primary responsibilities encompass conducting official advisory meetings to review traffic reports, address traffic-related complaints, and provide recommendations to the City Council for enhancing traffic conditions and regulations.

Historically, this committee convened on a monthly basis, submitting reports to the City Clerk if no immediate action was taken during the meetings. However, over time, the efficiency of handling traffic complaints, recommendations, and regulations at the staff level rendered these meetings obsolete. With the revised process, and depending on the level of urgency, the resolution of complaints, recommendations, or regulations can now be achieved by staff within 30 days, as opposed to the previous 45 to 60-day timeline. Consequently, staff recommends the removal of the Advisory Traffic Committee from the new Ordinance with the understanding that traffic safety issues can be brought to the Council and/or staff for review.

Staff Report: Introduction and First Reading of Traffic Regulations Ordinance Page 2 September 25, 2023

The new Ordinance introduces several regulations not covered by its predecessor, including:
• A more clearly defined 72-hour parking regulation.
• Provisions regarding the storage of Semi-Trailers on City rights-of-way. • Guidelines for storing Dumpsters, Storage Containers, or other construction equipment on City rights-of-way.
• Establishment of a Recreational Vehicle Parking and Permitting Program.

The Recreational Vehicle Parking and Permitting Program has emerged in response to numerous requests from community members seeking a solution to park their RVs in front of their residences, either while preparing for vacations or unloading upon their return. The Police Department frequently receives such requests, yet no existing program accommodates this need. In response, our staff has developed the Recreational Vehicle Parking and Permitting Program, which allows for such activities through the issuance of permits by the Police Department. These permits are provided free of charge and can be obtained during the Police Department's business hours at the front lobby. Each permit grants a 48-hour window, providing owners ample time to load and unload their RVs without causing undue disruption to the neighborhood.

Pending the introduction and first reading of this ordinance, staff will schedule a public hearing for the second reading and adoption of the ordinance for the October 10th Council meeting.

FISCAL IMPACT
There is no fiscal impact from this action.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Conduct the first reading, by title only, and introduce an Ordinance repealing and replacing Chapter 3 of Article III (Traffic Regulations) of the Grover Beach Municipal Code and schedule the second reading and public hearing for the next regularly scheduled meeting; or

2. Provide alternative direction.

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

Attachments

1. Proposed Traffic Regulations Ordinance

ORDINANCE NO. 23-____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA, REPEALING CHAPTER 3 OF ARTICLE III IN ITS ENTIRTY, AND ADDING A NEW CHAPTER 3, OF ARTICLE III OF THE

GROVER BEACH MUNICIPAL CODE FOR THE ADOPTION OF THE

CITY TRAFFIC REGULATIONS
WHEREAS, the City Council of the City of Grover Beach ("City") adopted the first traffic regulation ordinance on October 5, 1960 when it adopted the Uniform Traffic Ordinance of 1960 produced by the League of California Cities; and WHEREAS, the traffic ordinance has been periodically updated, but for the most part the ordinance remained true to the original 1960 adoption; and WHEREAS, staff completed an in-depth review of the Traffic Regulations Ordinance and determined numerous portions of the ordinance are outdated, in conflict with, or a duplication of, other legislation, or no longer relevant; and WHEREAS, staff has prepared and presented a new Traffic Regulations Ordinance for City Council to consider for adoption.

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

PART 1. Chapter 3 of Article III, (Traffic Regulations), of the Grover Beach Municipal Code, is hereby repealed in total.

PART 2. New Chapter 3 of Article III, (Traffic Regulations) is hereby added to the Grover Beach Municipal Code consistent with the attached Exhibit “A” which is hereby incorporated by reference as if set out in full.

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.

Attachment 1

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 September 25, 2023, and PASSED, APPROVED, and ADOPTED by the City Council on _____________, on the following roll call vote, to wit:

AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
RECUSED: Council Members -
DRAFT ___________________________________

KAREN BRIGHT, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
Approved as to Form:
_____________________________
DAVID P. HALE, CITY ATTORNEY

EXHIBIT A
CHAPTER 3 – TRAFFIC REGULATIONS
09/04/2023
Section 3300. Short Title. This chapter shall be known as the Traffic Ordinance of the City of Grover Beach. The duties and responsibilities enumerated in this Chapter of the Officers and employees including but not limited to the Police Chief and City Traffic Engineer have been delegated by the City Council consistent with Government Code Section 830.6, or as amended, and shall constitute approval consistent therewith.

Section 3301. Traffic Administration.

A. Police Administration. There is hereby established in the police department of this city a traffic enforcement program to be under the control and responsibility of the Chief of Police or their designee.

B. Authority of Police and Fire Department Officials. Officers of the Police Department and designated employees and volunteers as are assigned by the Chief of Police are hereby authorized to direct all traffic by voice, hand, audible or other signal in conformance with traffic laws, except that in the event of a fire or other emergency or to expedite traffic or to safeguard pedestrians, officers and designated employees of other city departments or members of the Fire Department may direct traffic as conditions may require, notwithstanding the provisions to the contrary contained in this ordinance or the Vehicle Code.

C. Persons Other Than Officials Shall Not Direct Traffic. No person other than an officer or designated employees of the City of Grover Beach or members of the Five Cities Fire Authority or a person(s) or contractor authorized by the Chief of Police or the City Public Works Director, City Traffic Engineer, or their designee, or a person authorized by law shall direct or attempt to direct traffic by voice, hand or other signal, except that persons may operate, when and as herein provided, any mechanical push button signal erected by order of the City Traffic Engineer.

D. Obedience to Police or Authorized Officials. No person shall fail or refuse to comply with or to perform any act forbidden by any lawful order, signal, or direction of a police officer, a member of the Fire Department, or a person authorized by the Chief of Police, Public Works Director, City Traffic Engineer, or their designee or by law.

E. City Traffic Engineer. The office of the City Traffic Engineer is hereby established.

The City Traffic Engineer shall be appointed by the City Manager, or designee, and they shall exercise the powers and duties as provided in this ordinance and in the traffic ordinances of this city. Whenever the City Traffic Engineer is required or authorized to place or maintain official traffic control devices or signals, they may cause such devices or signals to be placed or maintained.

F. Powers and Duties of the City Traffic Engineer – Delegation. It shall be the general duty of the City Traffic Engineer to determine the installation and proper timing and maintenance of traffic control devices and signals, to conduct engineering analyses of traffic collisions and to devise remedial measures, to conduct engineering and traffic investigations of traffic conditions, to cooperate with other city officials in the development of ways and means to improve traffic conditions and to carry out the additional powers and duties imposed by ordinance of this city. Whenever, by the provisions of this ordinance a power is granted to the City Traffic Engineer or a duty imposed upon them, the power may be exercised or the duty performed by their deputy or by a person authorized by them.

G. Duty of the Traffic Program. It shall be the duty of the traffic program with such aid as may be rendered by other members of the police department to enforce the street traffic regulations of this city and all of the state vehicle laws applicable to street traffic, in this city to make arrests for traffic violations, to investigate traffic collisions and to cooperate with the City Traffic Engineer and other officers of the city, in the administration of the traffic laws and in developing ways and means to improve traffic conditions, and to carry out those duties specially imposed upon the police department by this ordinance and the traffic ordinances of this city.

H. Traffic Collision Reports. The Police Department shall maintain a suitable system of filing traffic collision reports. Data from collision reports may be available for the use and information of the City Traffic Engineer.

I. Traffic Collision Studies. Whenever the collisions at any particular location become numerous, the Police Department will cooperate with the City Traffic Engineer in conducting studies of such collisions and determining remedial measures.

Section 3302. Definitions.

The following words and phrases when used in this ordinance shall for the purpose of this ordinance have the meanings respectively ascribed to them in this article.

Whenever any words or phrases used herein are not defined but are defined in the Vehicle codeof the State of California and amendments thereto, such definitions shall apply.

A. “Alley” is any highway having a roadway not exceeding 25 feet in width which is primarily used for access to the rear or side entrances of abutting property.

B. “Bicycle” is a device upon which a person may ride, propelled exclusively by human power, except as provided in Section 312.5 of the California Vehicle Code, through a belt, chain, or gears, and having one or more wheels. A person riding a bicycle is subject to the provisions of this ordinance and the codes specified in Sections 21200 and 21200.5. An electric bicycle is a bicycle.

C. “Camp Trailer” means a vehicle designed to be used on a highway, capable of human habitation for camping or recreational purposes that does not exceed 16 feet in overall length from the foremost point of the trailer hitch to the rear extremity of the trailer body and does not exceed 96 inches in width and includes any tent trailer. Where a trailer telescopes for travel, the size shall apply to the trailer as fully extended. Notwithstanding any other provision of law, a camp trailer shall not be deemed to be a trailer coach.

D. “Camper” is a structure designed to be mounted upon a motor vehicle and to provide facilities for human habitation or camping purposes.

E. “City” means the City of Grover Beach, California.

F. “Central Traffic District” means all streets and portions of streets within the area described as follows: All public rights-of-way on West Grand Avenue, Oak Park Blvd, 4th Street and 13th Street.

G. “Coach” means any bus, motor coach, trackless trolley or passenger stage used as a common carrier of passengers.

H. “Commercial Motor Vehicle” is a motor vehicle of a type required to be registered under the California Vehicle Code, or any other State Vehicle Code or regulations, and is used or maintained for the transportation of persons for hire, compensation, or profit or designed, used or maintained primarily for the transportation of property.

I. “Council” means the City Council of the City of Grover Beach.

J. “County” means the County of San Luis Obispo, California.

K. “Crosswalk” is either:
(1.) That portion of a roadway included within the prolongation or connection of the boundary lines of sidewalks at intersections where the intersecting roadways meet at approximately right angles, except the prolongation of such lines from an alley across a street.
(2.) Any portion of a roadway distinctly indicated for pedestrian crossing by lines or other markings on the surface.

Notwithstanding the foregoing provisions of this section, there shall not be a crosswalk where local authorities have placed signs indicating no crossing.

L. “Curb” means the lateral boundary of the roadway whether such curb be marked by curbing construction, or not so marked; the word “curb” as herein used shall not include the line dividing the roadway of a street from parking strips in the center of a street, nor from tracks or rights-of-way of public utility companies.

M. “Darkness” is any time from one-half hour after sunset to one-half hour before sunrise and any other time when visibility is not sufficient to render clearly discernible any person or vehicle on the highway at a distance of 1,000 feet.

N. “Divided Highway” means a roadway divided along its centerline, either by a physical barrier or by signs or markings on the said roadway and providing for specific directional traffic flow in each lane.

O. “Divisional Island” is a raised island or roadway surface delineated by striping in accordance with the California Manual of Uniform Traffic Control Devices in the roadway separating opposing or conflicting streams of traffic.

P. “Electric Bicycle” is a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts.
(1) A “class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour.
(2) A “class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour.
(3) A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour, and equipped with a speedometer. (a) A person riding an electric bicycle, as defined in this section, is subject to the California Vehicle Code, Article 4 (commencing with Section 21200) of Chapter 1 of Division 11.
(b) On and after January 1, 2017, manufacturers and distributors of electric bicycles shall apply a label that is permanently affixed, in a prominent location, to each electric bicycle. The label shall contain the classification number, top assisted speed, and motor wattage of the electric bicycle, and shall be printed in Arial font in at least 9-point type.

Q. “Electric Personal Assistive Mobility Device” or “EPAMD” means a selfbalancing, non-tandem two-wheeled device, that is not greater than 20 inches deep and 25 inches wide and can turn in place, designed to transport only one person, with an electric propulsion system averaging less than 750 watts (1 horsepower), the maximum speed of which, when powered solely by a propulsion system on a paved level surface, is no more than 12.5 miles per hour.

R. “Electrically Motorized Board” is any wheeled device that has a floorboard designed to be stood upon when riding that is not greater than 60 inches deep and 18 inches wide, is designed to transport only one person, and has an electric propulsion system averaging less than 1,000 watts, the maximum speed of which, when powered solely by a propulsion system on a paved level surface, is no more than 20 miles per hour. The device may be designed to also be powered by human propulsion.

S. “Fifth-Wheel or Gooseneck Travel Trailer” is a vehicle designed for recreational purposes to carry persons, animals or property on its own structure and so constructed as to be drawn by a motor vehicle by means of a kingpin or ball hitch connecting device.

T. “Highway” is a way or place of whatever nature, publicly or privately maintained and open to the use of the public for the purposes of vehicular travel. Highway includes street.

U. “Holidays” means all Federal, State and City of Grover Beach recognized holidays.

V. “House Car” is a motor vehicle originally designed, or permanently altered, and equipped for human habitation, or to which a camper has been permanently attached. A motor vehicle to which a camper has been temporarily attached is not a house car except that, for the purposes of California Vehicle Code, Division 11 (commencing with Section 21000) and Division 12 (commencing with Section 24000), a motor vehicle equipped with a camper having an axle that is designed to support a portion of the weight of the camper unit shall be considered a three-axle house car regardless of the method of attachment or manner of registration. A house car shall not be deemed to be a motor-truck.

W. “Intersection” is the area embraced within the prolongation of the lateral curb lines, or, if none, then the lateral boundary lines of the roadways, of two roadways which join one another at approximately right angles or the area within which vehicles traveling upon different roadways joining at any other angle may come in conflict.

X. “Loading Zone” The space adjacent to a curb reserved for the exclusive use of vehicles during the loading or unloading of passengers or materials.

Y. “Low Speed Vehicle” is a motor vehicle that meets all of the following requirements:
(1) Has four wheels.
(2) Can attain a speed, in one mile, of more than 20 miles per hour and not more than 25 miles per hour, on a paved level surface.
(3) Has a gross vehicle weight rating of less than 3,000 pounds. (a) For the purposes of this section, a “low-speed vehicle” is not a golf cart, except when operated pursuant to Section 21115 or 21115.1 of the California Vehicle Code.
(b) A “low-speed vehicle” is also known as a “neighborhood electric vehicle.” Z. “Mobile Billboard Advertising Display” means an advertising display that is attached to a wheeled, mobile, nonmotorized vehicle, device or bicycle that carries, pulls or transports a sign or billboard, and is for the primary purpose of advertising.

AA. “Motorcycle” is
(1) a motor vehicle having a seat or saddle for the use of the rider, designed to travel on not more than three wheels in contact with the ground. (2) A motor vehicle that has four wheels in contact with the ground, two of which are a functional part of a sidecar, is a motorcycle if the vehicle otherwise comes within the definition of subdivision (1).
(3) A farm tractor is not a motorcycle.
(4) A three-wheeled motor vehicle that otherwise meets the requirements of subdivision (1), has a partially or completely enclosed seating area for the driver and passenger, is used by local public agencies for the enforcement of parking control provisions, and is operated at slow speeds on public streets, is not a motorcycle. However, a motor vehicle described in this subdivision shall comply with the applicable sections of this code imposing equipment installation requirements on motorcycles.

BB. “Motor-Driven Cycle” is any motorcycle with a motor that displaces less than 150 cubic centimeters. A motor-driven cycle does not include a motorized bicycle.

CC. “Motorized Bicycle” or “Moped” is a two-wheeled or three-wheeled device having fully operative pedals for propulsion by human power or having no pedals if powered solely by electrical energy, and an automatic transmission and a motor that produces less than 4 gross brake horsepower and is capable of propelling the device at a maximum speed of not more than 30 miles per hour on level ground.

DD. “Motorized Quadricycle” is a four-wheeled device, and a “motorized tricycle” is a three-wheeled device, designed to carry not more than two persons, including the driver, and having either an electric motor or a motor with an automatic transmission developing less than two gross brake horsepower and capable of propelling the device at a maximum speed of not more than 30 miles per hour on level ground. The device shall be utilized only by a person who by reason of physical disability is otherwise unable to move about as a pedestrian or by a senior citizen as defined in Section 13000 of the California Vehicle Code.

EE. “Motorized Scooter” is any two-wheeled device that has handlebars, has a floorboard that is designed to be stood upon when riding, and is powered by an electric motor. This device may also have a driver seat that does not interfere with the ability of the rider to stand and ride and may also be designed to be powered by human propulsion.

For purposes of this section, a motorcycle, as defined in Section 1.23, a motor-driven cycle, as defined in Section 1.24, or a motorized bicycle or moped, as defined in Section

1.25, is not a motorized scooter.

FF. “Motor Vehicle” is a vehicle that is self-propelled. “Motor vehicle” does not include a self-propelled wheelchair, motorized tricycle, or motorized quadricycle, if operated by a person who, by reason of physical disability, is otherwise unable to move about as a pedestrian.

GG. “Official Traffic Control Signal” is any device, whether manually, electrically or mechanically operated, by which traffic is alternately directed to stop and proceed and which is erected by authority of a public body or official having jurisdiction.

HH. “Park or Parking” shall mean the standing of a vehicle, whether occupied or not, otherwise than temporarily for the purpose of and while actually engaged in loading or unloading merchandise or passengers.

II. “Parkway” shall mean the portion of a public street or right-of-way lying between the curb or edge of the roadway and a sidewalk or public walkway.

JJ. “Passenger Loading Zone” means the space adjacent to a curb reserved for the exclusive use of vehicles during the loading or unloading of passengers.

KK. “Pedestrian” is
(1) a person who is afoot or who is using any of the following:
(a) A means of conveyance propelled by human power other than a bicycle. (b) An electric personal assistive mobility device.
(2) “Pedestrian” includes a person who is operating a self-propelled wheelchair, motorized tricycle, or motorized quadricycle and, by reason of physical disability, is otherwise unable to move about as a pedestrian.

LL. “Pedicab” means any of the following:
(1) A bicycle that has three or more wheels, that transports, or is capable of transporting, passengers on seats attached to the bicycle, that is operated by a person, and that is being used for transporting passengers for hire. (2) A bicycle that pulls a trailer, sidecar, or similar device, that transports, or is capable of transporting, passengers on seats attached to the trailer, sidecar, or similar device, that is operated by a person, and that is being used for transporting passengers for hire.
(3) A four-wheeled device that is primarily or exclusively pedal-powered, has a seating capacity for eight or more passengers, cannot travel in excess of 15 miles per hour, and is being used for transporting passengers for hire.

MM. “Peace Officer” means every law enforcement officer of the State of California, the Police Department of this city and any Community Services Technician authorized to direct or regulate traffic or to make arrests for violations of traffic regulations.

NN. “Private Road or Driveway” is a way or place in private ownership and used for vehicular travel by the owner and those having express or implied permission from the owner but not by other members of the public.

OO. “Recreation Vehicle” means a motorhome, travel trailer, truck camper, camping trailer, or other vehicle or trailer, with or without motive power, designed or altered for human habitation for recreational, emergency, or other human occupancy. “Recreational vehicle” specifically includes, but is not limited to: a “recreational vehicle” as defined by California Health and Safety Code Section 18010; a “truck camper” as defined by Health and Safety Code Section 18013.4; a “camp trailer” as defined in California Vehicle Code Section 242; a “camper” as defined in California Vehicle Code Section 243; a “fifth-wheel travel trailer” as defined in California Vehicle Code Section 324; a “house car” as defined by California Vehicle Code Section 362; a “trailer coach” as defined in California Vehicle Code Section 635; a van camper; or a van conversion.

PP. “Residential District” is that portion of a highway and the property contiguous thereto, other than a business district, (a) upon one side of which highway, within a distance of a quarter of a mile, the contiguous property fronting thereon is occupied by 13 or more separate dwelling houses or business structures, or (b) upon both sides of which highway, collectively, within a distance of a quarter of a mile, the contiguous property fronting thereon is occupied by 16 or more separate dwelling houses or business structures. A residential district may be longer than one-quarter of a mile if the above ratio of separate dwelling houses or business structures to the length of the highway exists.

QQ. “Roadway” is that portion of a highway improved, designed, or ordinarily used for vehicular travel.

RR. “RV Permit” means a 48-hour parking permit for a recreational vehicle belonging to a resident of the city issued by the Chief of Police or their designee in accordance with the provisions of this chapter.

SS. “Safety Zone” is the area or space lawfully set apart within a roadway for the exclusive use of pedestrians and which is protected, or which is marked or indicated by vertical signs, raised markers or raised buttons, in order to make such area or space plainly visible at all times while the same is set apart as a safety zone.

TT. “Semi-Trailer” is a vehicle designed for carrying persons or property, used in conjunction with a motor vehicle, and so constructed that some part of its weight and that of its load rests upon, or is carried by, another vehicle.

UU. “Trailer” is a vehicle designed for carrying persons or property on its own structure and for being drawn by a motor vehicle.

VV. “Vehicle Code” means the Vehicle Code of the State of California.

Section 3303. Traffic Control Devices.

A. Authority to Install Traffic Control Devices.
(1) The City Traffic Engineer shall have the power and duty to place and maintain or cause to be placed and maintained official traffic control devices when and as required to make effective the provisions of this ordinance. (2) Whenever the Vehicle code requires for the effectiveness of any provision thereof that traffic control devices be installed to give notice to the public of the application of such law the City Traffic Engineer is hereby authorized to install or cause to be installed the necessary devices subject to any limitations or restrictions set forth in the law applicable thereto.
(3) The City Traffic Engineer may also place and maintain or cause to place and maintain such additional traffic control devices as they may deem necessary or proper to regulate traffic or to guide or warn traffic, but they shall make such determination only upon the basis of traffic engineering principles and/or traffic investigations and in accordance with such standards, limitations and rules as may be set forth in this ordinance or as may be determined by ordinance or resolution of the Council.

B. Installation of Traffic Signals.
(1) The City Traffic Engineer is hereby directed to install and maintain official traffic signals at those intersections and other places where traffic conditions are such as to require that the flow of traffic be alternately interrupted and released in order to prevent or relieve traffic congestion or to protect life or property from exceptional hazard.
(2) The City Traffic Engineer shall ascertain and determine the locations where such signals are required by field investigation, traffic counts and other traffic information as may be pertinent and their determinations there from shall be made in accordance with those traffic engineering and safety standards and instructions set forth in the California Manual of Uniform Traffic Control Devices. (3) Whenever the City Traffic Engineer installs and maintains an official traffic signal at any intersection, they shall likewise erect and maintain at such intersection street name signs clearly visible to traffic approaching from all directions unless such street name signs have previously been placed and are maintained at any said intersection.

C. Lane Marking. The City Traffic Engineer is hereby authorized to mark center lines and lane lines upon the surface of the roadway to indicate the course to be traveled by vehicles and may place signs temporarily designating lanes to be used by traffic moving in a particular direction, regardless of the center line of the highway.

D. Distinctive Roadway Markings. The City Traffic Engineer is authorized to place and maintain distinctive roadway markings as described in the Vehicle Code on those streets or parts of streets where the volume of traffic or the vertical or other curvature of the roadway renders it hazardous to drive on the left side of such marking or signs and markings. Such marking or signs and marking shall have the same effect as similar markings placed by the State Department of Transportation pursuant to provisions of the Vehicle code.

E. Authority to Remove, Relocate and Discontinue Traffic Control Devices. The City Traffic Engineer is hereby authorized to remove, relocate or discontinue the operation of any traffic control device not specifically required by the Vehicle Code or this ordinance whenever they shall determine in any particular case that the conditions which warranted or required the installation no longer exist.

F. Traffic Control Devices: Hours of Operation. The City Traffic Engineer shall determine the hours and days during which any traffic control device shall be in operation or be in effect, except in those cases where such hours or days are specified in this ordinance.

G. Unauthorized Painting of Curbs. No person, unless authorized by this city, shall paint any street or curb surface; provided, however, that this section shall not apply to the painting of house numbers on a curb surface immediately adjacent to the associated house by any person who has complied with the provisions of any resolution or ordinance of this city pertaining thereto.

Section 3304. Turning Movements, Signals and Devices.

A. Authority to Place Turning Markings, Signals or Other Devices at Multi-Lane Intersections. The City Traffic Engineer is authorized to place official traffic control devices within or adjacent to intersections and indicating the course to be traveled by vehicles turning at such intersections, and the City Traffic Engineer is authorized to locate and indicate more than one lane of traffic from which drivers of vehicles may make right or left hand turns, and the course to be traveled as so indicated may conform to or be other than as prescribed by law or ordinance.

B. Authority to Place Restricted Turn Signs. The City Traffic Engineer is hereby authorized to determine those intersections at which drivers of vehicles shall not make a right, left, or U turn, and shall place proper signs at such intersections. The making of such turns may be prohibited between certain hours of any day and permitted at other hours, in which event the same shall be plainly indicated on the signs or they may be removed when such turns are permitted.

C. Signal Controlled Intersections – Right Turns.
(1) The City Traffic Engineer shall post appropriate signs giving effect to this section where they determine that the making of right turns against traffic signal “stop” indication would interfere with the safe and orderly flow of traffic. (2) No driver of a vehicle shall make a right turn against a red traffic signal or a stop sign at any intersection which is sign-posted giving notice of such restriction as hereinafter provided in this section.

Section 3305. One-Way Streets and Alleys.

A. Whenever any ordinance or resolution of this city designates any street or portion thereof as a one-way street or alley, the City Traffic Engineer shall place and maintain signs giving notice thereof, and no such regulations shall be effective unless such signs are in place. Signs indicating the direction of lawful traffic movement shall be placed at every intersection where movement of traffic in the opposite direction is prohibited.

B. No person shall stop, stand or park a vehicle for any purpose other than the loading or unloading of persons or materials in any alley.

Section 3306. Special Stops Required.

A. City Traffic Engineer to Erect Stop Signs.
(1) Whenever any ordinance or resolution of this city designates and describes any street or portion thereof as a through street, or any intersection at which vehicles are required to stop at one or more entrances thereto, or any railroad grade crossing at which vehicles are required to stop, the City Traffic Engineer shall erect and maintain stop signs as follows:
(2) A stop sign shall be erected on each and every street intersecting such through street or portion thereof so designated and at those entrances to other intersections where a stop is required and at any railroad grade crossing so designated; provided, however stop signs shall not be erected or maintained at any entrance to an intersection when such entrance is controlled by an official traffic control signal. Every such sign shall conform with, and shall be placed as provided in, the Vehicle Code.

Section 3307. Crosswalk Regulations.

A. City Traffic Engineer to Establish Marked Crosswalks. The City Traffic Engineer shall establish, designate and maintain crosswalks at intersections and other places by appropriate devices, marks or lines upon the surface of the roadway as follows:
(1) Crosswalks may be established and maintained at any intersection or other location where the City Traffic Engineer determines that the installation of said crosswalk would provide a safety benefit to pedestrians crossing the roadway subject to the limitation contained in (2) of this section. (2) Other than crosswalks at intersections, no crosswalk shall be established in any block which is less than four hundred feet in length and such crosswalk shall be located as nearly as practicable at mid-block.
(3) The City Traffic Engineer may place signs at or adjacent to an intersection in respect to any crosswalk directing pedestrians shall not cross in the crosswalk so indicated.

B. Standing in the Roadway. No person shall stand in any roadway other than a safety zone or in a crosswalk if such action interferes with the lawful movement of traffic.

This section shall not apply to any public officer, city employee, city contractor or employee of a public utility necessarily upon a street in the line of duty.

Section 3308. Stopping, Standing, and Parking Regulations.

A. Application of Regulations.
(1) The provisions of this ordinance prohibiting the stopping, standing or parking of a vehicle shall apply at all times or at those times herein specified, except when it is necessary to stop a vehicle to avoid conflict or official traffic control device. (2) The provisions of this ordinance imposing a time limit on standing or parking shall not relieve any person from the duty to observe other and more restrictive provisions of the Vehicle Code or the ordinances of this city prohibiting or limiting the standing or parking of vehicles in specified places or at specified times.

B. City Traffic Engineer to Establish and Maintain Stopping and Parking Areas.

The City Traffic Engineer is hereby authorized to maintain, by appropriate signs or by paint upon the curb surface, all no stopping zones, no parking areas and restricted parking areas, as defined and described in this ordinance:
(1) When said curb markings or signs are in place, no operator of any vehicle shall stop, stand or park such vehicle adjacent to any such curb marking or sign in violation of any of the provisions of this ordinance.

C. No Stopping Zones. The City Traffic Engineer shall designate established no stopping zones by placing and maintaining appropriate signs indicating that stopping of vehicles is prohibited and indicating the hours and day when stopping is prohibited.

During the hours and on the days designated on the signs, it shall be unlawful for the operator of any vehicle to stop said vehicle on any of the streets or parts of streets established by resolution of the Council as no stopping zones.

D. Emergency Parking Signs. Whenever the City Traffic Engineer determines that unacceptable levels of traffic congestion are likely to result from the holding of public or private assemblages, gatherings or functions, or for other reasons, the City Traffic Engineer and/or the Chief of Police or their designees shall have power and authority to order temporary signs to be erected or posted indicating that the operation, parking or standing of vehicles is prohibited on such streets and alleys as the City Traffic Engineer and/or the Chief of Police or their designees shall direct during the time such temporary signs are in place. Such signs shall remain in place only during the existence of such emergency or event and the City Traffic Engineer and/or the Chief of Police or their designees shall cause such signs to be removed promptly thereafter.

E. No Parking Areas. No operator of any motor vehicle, trailer, camp-trailer, recreational vehicle, motorcycle, commercial vehicle, coach, house car, low-speedvehicle, or semi-trailer shall stop, stand, park or leave standing such vehicle in any of the following places, except when necessary to avoid conflict with other traffic or in compliance with the direction of a police officer or other authorized employee, or traffic sign or signal:
(1) Within any divisional island unless authorized and clearly indicated with appropriate signs or markings.
(2) On either side of any street between the projected property lines of any public walk, public steps, street or thoroughfare terminating at such street, when such area is indicated by appropriate signs or by red paint upon the curb surface. (3) In any area where the City Traffic Engineer determines that the parking or stopping of a vehicle would constitute a traffic hazard or would endanger life or property, when such area is indicated by appropriate signs or by red paint upon the curb surface.
(4) In any area established by the City Traffic Engineer as a no parking area, when such is indicated by appropriate signs or by red paint upon the curb surface. (5) On any street or highway where the use of such street or highway or a portion thereof is necessary for the cleaning, repair of construction of the street or highway or the installation of underground utilities or where the use of the street or highway or any portion thereof is authorized for a purpose other than the normal flow or traffic or where the use of the street or highway or any portion thereof is necessary for the movement of equipment, articles or structures of unusual size, and the parking of such vehicle would prohibit or interfere with such use or movement; provided that signs giving notice of such “no parking” are erected or placed at least twenty-four (24) hours prior to the effective time of such no parking. (6) At any place within twenty feet (20) of a point on the curb immediately opposite the mid-block end of a safety zone, when such place is indicated by appropriate signs or by red paint upon the curb surface.
(7) At any place within twenty feet (20) of a crosswalk at an intersection in the central traffic district or in any business district when such place is indicated by appropriate signs or by red paint upon the curb surface except that a bus may stop at a designated bus stop.
(8) Within twenty feet (20) of the approach to any traffic signal, yield sign, stop sign, marked crosswalk, or official electric flashing device. (9) Within fifty (50) feet of the prolongation of an intersecting roadway curb or pavement edge when appropriate signs or markings are in place, except for buses at a designated bus zone.
(10) Within any parkway.

F. Parking Prohibited on Narrow Streets. The City Traffic Engineer is hereby authorized to place signs or markings indicating no parking upon any street when the width of the roadway does not exceed 20 feet, or upon one side of a street as indicated by such signs or markings when the width of the roadway does not exceed 30 feet. (1) When official signs or markings prohibiting parking are erected upon narrow streets as authorized herein, no person shall park a vehicle upon any such street in violation of any such sign or marking.

G. Parking Adjacent to Schools. The City Traffic Engineer is hereby authorized to erect signs indicating no parking upon that side of any street adjacent to any school property when such parking would, in his opinion, interfere with traffic or create a hazardous situation.
(1) When official signs are erected prohibited parking upon that side of a street adjacent to any school property, no person shall park a vehicle in any such designated place.

H. 72 Hour Parking. No person who owns or has possession, custody or control of any vehicle, trailer, semi-trailer, or boat shall park such vehicle upon any street, alley, city parking lot, city parking facility, or public right of way for more than a consecutive period of 72 hours. For purposes of enforcement, the mere moving or relocation of the vehicle, trailer, semi-trailer or boat a short distance of less than 1/10th of a mile shall not suffice to interrupt the seventy-two (72) hour period or constitute the beginning of a new seventytwo (72) hour period. Proof that the vehicle was moved less than 1/10th of a mile in a normal traffic lane at any given time shall constitute prima facie evidence that the seventytwo (72) hour period was not interrupted or terminated. The provisions of this subsection are to be interpreted and enforced consistent with a public policy against long-term storage of vehicles upon public streets. A copy of this subsection shall be included as a part of any notice or citation placed on a vehicle concerning the seventy-two (72) hour parking limit.

Section 3309. Parking Space Markings, Loading Zones, and Time Limited Parking.

A. Parking Space Markings. The City Traffic Engineer is authorized to install and maintain parking space markings to indicate parking spaces adjacent to curbs where authorized parking is permitted. When such parking space markings are placed on the street, alley, city parking lot, city parking facility or public right of way or highway subject to other and more restrictive limitations, no vehicle shall be stopped, left standing or parked other than within a single space unless the size or shape of such vehicle makes compliance impossible.

B. Authority to Establish Loading Zones. The City Traffic Engineer is hereby authorized to determine and to mark loading zones and passenger loading zones as follows:
(1) In front of the entrance to any place of business or in front of any hall or place used for the purpose of public assembly.
(2) In no event shall more than one-half of the total curb length in any block be reserved for loading zone purposes.
(3) Loading zones shall be indicated by yellow paint upon the top of all curbs within such zones.
(4) Passenger loading zones shall be indicated by white paint upon the top of all curbs in said zones.

C. Curb Markings to Indicate No Stopping and Parking Regulations. The City Traffic Engineer is hereby authorized, subject to the provisions and limitations of this ordinance, to place, and when required herein, shall place the following curb markings to indicate parking or standing regulations, and said curb markings shall have the meanings as herein set forth in California Vehicle Code 21458.

D. Effect of Permission to Load or Unload.
(1) Permission herein granted to stop or stand a vehicle for purposes of loading or unloading of materials shall apply only to commercial vehicles, and shall not extend beyond the time necessary, therefor and in no event for more than thirty (30) minutes.
(2) Permission herein granted to stop or park for purposes of loading or unloading passengers shall include the loading or unloading of personal baggage but shall not extend beyond the time necessary therefor and in no event for more than ten (10) minutes.

E. Standing for Loading or Unloading Only. No person shall stop, stand or park a vehicle in any yellow loading zone for any purpose other than loading or unloading passengers or material for such time as is permitted in Section 3309(C)(2).

F. 30 Minute Parking. Green curb markings shall mean no standing or parking for a period of time longer than 30 minutes at any time between 9:00 a.m. and 6:00 p.m. on any day except Sunday(s) and holidays. When authorized signs or curb markings have been determined by the City Traffic Engineer to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle adjacent to any such legible curb marking or sign or parking meter in violation thereof.

G. One Hour Parking. When authorized signs, or curb markings have been determined by the City Traffic Engineer to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle between the hours of 9:00 a.m. and 6:00 p.m. of any day except Sunday(s) and holidays for a period of time longer than one hour.

H. Two Hour Parking. When authorized signs, or curb markings have been determined by the City Traffic Engineer to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle between the hours of 9:00 a.m. and 6:00 p.m. of any day except Sundays and holidays for a period of time longer than two hours.

I. Diagonal Parking. On any of the streets or portions of streets established by resolution of the City Council as diagonal parking zones, when signs or pavement markings are in place indicating such diagonal parking, it shall be unlawful for the operator of any vehicle to park said vehicle except:
(1) At the angle to the curb indicated by signs or pavement markings allotting space to parked vehicles and entirely within the limits to said allotted space; (2) With the front wheel nearest the curb within six (6) inches of said curb.

The provisions of this section shall not apply when such vehicle is actually engaged in the process of loading or unloading passengers, freight or goods, in which event the provisions applicable in Section 3309(D) of this ordinance shall be complied with.

J. Fire Lane. The City Traffic Engineer is hereby authorized to establish Fire Lane – No Parking zones on public and private roadways after the Fire Department has designated the roadway as a Fire Lane. The designation shall be indicated (1) by a sign posted immediately adjacent to, and visible from, the designated place clearly stating in letters not less than one inch in height that the place is a fire lane, (2) by outlining or painting the place in red and, in contrasting color, marking the place with the words "FIRE LANE", which are clearly visible from a vehicle, or (3) by a red curb or red paint on the edge of the roadway upon which is clearly marked the words "FIRE LANE".

Section 3310. Commercial Vehicle Parking Zones and Restrictions.

A. Coach Zones to be Established. The City Traffic Engineer is hereby authorized to establish bus zones opposite curb space for the loading and unloading of buses or common carriers of passengers and to determine the location thereof. Coach zones shall normally be established on the far side of an intersection.

B. Parking or Standing of Commercial Vehicles. In all public areas within the City of Grover Beach zoned R-1, R-2, R-3, R-A, C-R-1, C-R-2, C-R-3, M-H, or C-PR-1, or any curbside parking contiguous to any such zone, the parking or standing of commercial vehicles is hereby prohibited if said vehicle is one or more of the following:
(1) A vehicle with a manufacturer's gross weight rating of 10,000 pounds or more, except for house cars as defined in Vehicle Code Sec. 362 or a trailer coach as defined in Vehicle Code Sec. 635;
(2) A truck trailer as defined in Vehicle Code Sec. 655; (3) A semitrailer as defined in Vehicle Code Sec. 550;
(4) A trailer as defined in Vehicle Code Sec. 630.
(a) This section shall not apply under the following conditions:
(1) When such vehicle is loading or unloading property; (2) When the City Council has determined by resolution that the parking of such vehicles on certain streets or properties shall be permitted; or
(3) When the vehicle is being used in conjunction with a construction project, is parked or standing off of a public right of way and such vehicle parking or standing has been approved in writing by the Community Development Director.

C. Storing of Semi-Trailers. It is unlawful for any person to store, leave standing, or park an unattached semi-trailer or auxiliary dolly on any public street, alley, city parking lot, city parking facility or public right of way or highway except for and during the purpose of loading or unloading it.

D. Display of Warning Devices When Commercial Vehicle is Disabled. Every motor truck having a weight of 20,000 pounds or more, and every truck tractor irrespective of weight, when operated upon any street or highway during darkness, shall be equipped with and carry at least 3 two flares or 3 two warning lights or reflectors. The reflectors shall be of a type approved by the Department of California Highway Patrol. When any vehicle above mentioned or any trailer or semi-trailer is disabled upon streets or highways within this city and upon which street or highway there is insufficient street lighting to reveal a vehicle at a distance of 200 feet during darkness, a warning signal of the character indicated above shall be immediately placed at a distance of approximately 100 feet in advance of, and 100 feet to the rear of, such disabled vehicle by the driver thereof.

The continuous flashing of at least four approved class A-type 1 turn signal lamps, at least two toward the front and at least two toward the rear of the vehicle, shall be considered as to meet the requirements of this section until the devices mentioned above can be placed as in the required locations. The warning signals herein mentioned shall be displayed continuously during darkness while such vehicle remains disabled upon such street or highway.

Section 3311. Unlawful Parking – Peddlers and Vendors.

A. No person shall park or stand on any street, any lunch wagon, eating cart, vehicle or pushcart from which articles of food are sold or offered for sale without first obtaining a written permit to do so from the City of Grover Beach. ..

B. Whenever any permit is granted by the City of Grover Beach under the provisions of the Grover Beach Municipal Code and a particular location to park or stand is specified therein, no person shall park or stand any vehicle, wagon or pushcart on any location other than as designated in such permit.

Section 3312. Unlawful Use of City Rights of Way for Vehicles, Trailers Boats, RollOff Dumpsters, Storage Containers or Construction Equipment.

A. Repairing or Greasing Vehicles on Public Streets. No person shall construct or cause to be constructed, repair or cause to be repaired, grease or cause to be greased, dismantle or cause to be dismantled any vehicle or any part thereof upon any street, alley, city parking lot, city parking facility, or public right of way street in this city. Temporary emergency repairs may be made upon a public street as long as the vehicle or trailer is not interfering with normal traffic or pedestrian flow and that the repair time period does not exceed four (4) hours.

B. Parking of Vehicles for Public Display. The City Council of the City of Grover Beach finds that the display of parked vehicles for the purposes of creating a Mobile Billboard Advertising Display on its streets creates a distraction for drivers and pedestrians, thereby creating a hazard; creates a nuisance for the community; and decreases the parking available for businesses and residents. The City Council further finds that numerous other advertising methods are available and necessary to alleviate this problem. The purpose of this Section is to authorize and empower the Police Department to take various actions when the use of public streets for Mobile Billboard Advertising Displays adversely affects neighborhoods in the City of Grover Beach.

C. Parking of Vehicles Advertising for Sale. It is unlawful to park a motor vehicle, trailer, camp-trailer, recreational vehicle, motorcycle, commercial vehicle, coach, house car, low-speed-vehicle, or semi-trailer on a street, alley, city parking lot, city parking facility or public right of way with a sign or placard on the vehicle that advertises the vehicle is for sale.
(1) For Sections B and C of 3312, a warning citation shall be issued and it shall state that an additional violation may result in the impoundment of the vehicle, even if the vehicle is moved to another street, alley, city parking lot, city parking facility, public right of way or highway in the City of Grover Beach.

C. Advertising Vehicles. No person shall operate or drive any vehicle used for advertising purposes or any advertising vehicle equipped with a sound-amplifying or loudspeaking device upon any street, alley, city parking lot, city parking facility, public right of way or highway at any time within the city.

D. Storing of Vehicles by Businesses. It is unlawful for any person who deals in, or whose business involves the sale, lease, rental, or charter of vehicles to store, park, or leave standing any such vehicle upon any public street, alley, city parking lot, city parking facility or public right of way or highway, except while such vehicle is under lease, rental, or charter by a customer. It is unlawful for any person who operates a business to store vehicles used in the conduct of that business on the street, alley, city parking lot, city parking facility, public right of way or highway.

E. Storing of Vehicles by Auto Repair Businesses. It is unlawful for any person whose business involves the repair, servicing of vehicles or vehicle components to store, park, or leave standing any vehicle on any public street, alley, city parking lot, city parking facility, public right of way or highway after that person has accepted custody of the vehicle from the customer.

F. Unauthorized Parking of Vehicles in a Fire Zone. It is the purpose of this section to prohibit parking of vehicles without permission on privately owned or publicly owned property, and to establish a means to enforce limited time zones on private or public property.
(1) No person, regardless of whether permission has been given by the owner or person in lawful possession, shall park a vehicle in a fire access road established, maintained or posted with signs or roadway markings pursuant to the provisions of the California Vehicle Code Section 22500.1.

Section 3313. When Motor Vehicles, Trailers, Boats, Roll-Off Dumpsters, Storage Containers and Personal Property May Be Removed From any Street or Public Right of Way.

A. Any regularly employed and salaried officer, or authorized employee of the Police Department may remove or cause to be removed:
(1) Any motor vehicle, trailer, or boat that has been parked or left standing upon a street, alley, city parking lot, city parking facility or public right of way or highway for 72 or more consecutive hours. For purposes of this subsection, the mere moving or relocation of a motor vehicle, trailer, or boat for a short distance shall not suffice to interrupt the seventy-two (72) hour period or to constitute the beginning of a new seventy-two (72) hour period. Proof that the vehicle was moved less than 1/10th of a mile in a normal traffic lane at any given time shall constitute prima facie evidence that the seventy-two (72) hour period was not interrupted or terminated. The provisions of this subsection are to be interpreted and enforced consistent with a public policy against long-term storage of vehicles upon public streets. A copy of this subsection shall be included as a part of any notice or citation placed on a vehicle concerning the seventy-two (72) hour parking limit. (2) Any vehicle which is parked or left standing upon a street or highway where the use of such street or highway or a portion thereof is necessary for the cleaning, repair or construction of the street or highway or for the installation of underground utilities or where the use of the street or highway or any portion thereof is authorized for a purpose other than the normal flow of traffic or where the use of the street or highway or any portion thereof is necessary for the movement of equipment, articles or structures of unusual size, and the parking of such vehicle would prohibit or interfere with such use or movement; provided that signs giving notice that such vehicle may be removed are erected or placed at least twentyfour (24) hours prior to the removal. (3) Any Roll-Off Dumpster, Storage Container, Sports Equipment, Barricades, privately owned signs, or other items of personal property, other than motor vehicles or trailers found on any street, alley, city parking lot, city parking facility, public right of way or highway create a traffic safety hazard and may be immediately removed from the street, alley, city parking lot, city parking facility, public right of way or highway without prior notice to the owner or person in legal possession of the property. The owner or person in legal possession of the property shall be responsible for all fees associated with the removal and storage of the property.
(4) Motorized power equipment or items of construction equipment or materials found on any street, alley, city parking lot, city parking facility or public right of way or highway that does not have and display an encroachment permit issued by the City of Grover Beach may be immediately removed from the street, alley, city parking lot, city parking facility or public right of way or highway without prior notice to the owner or person in legal possession of the property. The owner or person in legal possession of the property shall be responsible for all fees associated with the removal and storage of the property.
(5) Mobile Billboard Advertising Displays may be removed pursuant to Section 22651, Subdivision (v), of the California Vehicle Code when the mobile billboard advertising display is found upon any public street, alley, city parking lot, city parking facility, public right of way or highway in the City of Grover Beach. Prior to the removal of the mobile billboard advertising display, it shall be issued a warning citation at least twenty-four (24) hours prior to the removal. The warning citation shall state the owner of the mobile billboard advertising display may be subject to penalties upon a subsequent violation and may include removal of the mobile billboard advertising display.

Exceptions. The provisions of section 4 shall not apply to:
(a) Trailers owned by a public utility or licensed contractor while actually in use during the construction, installation, or repair of any public utility, public work or private work when authorized by issuance of an Encroachment Permit; Trailers actively in use for the pick-up or delivery of goods, wares, or merchandise; trailers actively in use for the delivery or pick-up of materials for repairing, altering, remodeling or constructing any building or for delivery of commercial services such as, without limitation, swimming pool cleaning or gardening; travel trailers actively in use by persons loading or unloading or when making temporary or emergency repairs.

Section 3314. Recreational Vehicle Parking and Permitting.

A. Parking Prohibited. It is unlawful for a person to park or leave standing any recreational vehicle on any street, alley, city parking lot, city parking facility, or public right of way in the city between the hours of 9:00 p.m. and 6:00 a.m.

B. Exceptions.
(1) Recreational Vehicles for which a RV permit has been issued, is valid for a period of 72 hours and is displayed on the inside front windshield of the RV where it is visible to persons outside the vehicle.
(2) Recreational Vehicles parked or left standing as a result of a mechanical breakdown so as to allow the performance of emergency repairs on the vehicle for a period not to exceed 24-hours.

C. Recreational Vehicle Parking Permits.
(1) The chief of police, or their designee, has the authority to issue RV permits and to revoke such permits in accordance with the provisions of this chapter. (2) Persons holding a valid RV permit issued pursuant to this chapter may park the recreational vehicle for which the permit was issued on a street in a residential area during the restricted hours of 9:00 p.m. to 6:00 a.m., provided the recreational vehicle is parked along the curb line within the same block as the residence listed in the application for which the permit is issued and the permit is valid. If the residence is located on a corner, then the permit holder may park along the curb line of either of the streets on the block on which the residence is located as long as the vehicle is not parked within 50 feet of the corner. (3) Except as expressly provided in this chapter, a RV permit does not authorize any vehicle to park in a location or manner that is otherwise prohibited by this code or by the California Vehicle Code.
(4) A RV permit does not guarantee the availability of parking at any time.

D. Duration and Limits.
(1) RV permits will be valid for 72-hours. The permittee may apply for a total of four (4) RV permits within a 30-day period. Permits shall not be issued consecutively, nor within a 72-hour period to a previous permit. A permit may be issued provided all the conditions set forth in the Municipal Code continue to be met. No more than one RV permit shall be issued for each residential address in the city at any given time.

E. RV Permit Application.
(1) Every resident desiring a RV permit for their own recreational vehicle or recreational vehicle under their possession and control shall file an application with the police department Monday – Thursday from 8:00 a.m. to 4:00 p.m. containing the following information:
(a) The name, residential address and phone number of the resident applying for the permit along with proof of residency satisfactory to the Chief of Police such as a current driver’s license or identification card, property tax bill, or public utility bill.
(2) The name, address, and phone number of the registered owner of the recreational vehicle for which a permit is sought along with a copy of the vehicle registration from the California Department of Motor Vehicles or equivalent agency from another state. If the resident applying for the RV permit is not the registered owner, a letter of authorization from the registered owner shall be included. (3) The license number, year, make and model of the recreational vehicle and its dimensions as to width, height, and length.
(4) Such additional information the Chief of Police, or their designee, may reasonably require.

F. RV Permit Issuance.
(1) The Chief of Police or their designee may issue a RV permit unless one of the following findings is made:
(a) The applicant is not a city resident.
(b) The resident is not the registered owner of the recreational vehicle or does not have authorization to use such vehicle.
(c) A RV permit has already been issued for a resident at the listed address. (d) There are public safety concerns relating to the parking of the recreational vehicle on the street on which the parking would be provided, including but not limited to a street being too narrow to safely accommodate the recreational vehicle.
(e) The street on which parking would be provided prohibits parking of all vehicles.
(f) The applicant provided information that was materially false.

G. RV Permit – Display.
(1) All RV permits shall include the license plate number of the designated recreational vehicle, the date of issuance, the date of expiration, and the permit number.
(2) All RV permits shall be conspicuously displayed in the lower driver’s side of the windshield so that it is clearly visible from the exterior of the vehicle so that all information is visible in order to avoid a parking ticket. The possession of a valid, unexpired permit that was not properly displayed shall not be considered a defense to a citation for an illegally parked recreational vehicle. (3) Any person who displays a counterfeit, forged, altered, or fraudulent RV permit shall be guilty of a misdemeanor.

H. Prohibited Activities.

Regardless of whether a person has a RV permit, no person shall:
(1) Run electrical cords, extension cords, hoses, cables, or other items across, above, or on the parkway or sidewalk from any property to a recreational vehicle parked on a public street at any time.
(2) Make a sewer connection with a recreational vehicle or dump wastes from a recreational vehicle onto public or private land other than a designated RV dump.

Violation of this subsection is a misdemeanor.
(3) Use such recreational vehicle for human habitation in violation of Grover Beach Municipal Code Article III, Chapter 14.1.

I. Revocation of RV Permit.
(1) The Chief of Police, or their designee, shall have the authority to revoke a RV permit in the following circumstances:
(a) A ground exists which would have justified denial of the permit in the first instance.
(b) The recreational vehicle has fallen into a state of disrepair and has become a public nuisance.
(c) The recreational vehicle has created a disturbance in the neighborhood due to the manner in which it has been used.
(d) The recreational vehicle has become inoperable.
(e) There have been at least two parking citations issued for the recreational vehicle while the permit period is still active. (f) There has been a violation of Section 3314(H).
(g) There has been evidence that the recreational vehicle is being used for habitation.

J. Violations.

A. Unless otherwise specified, all violations of this Section shall be an infraction and such persons shall be subject to citation, towing or both.

Section 3315. Truck Routes.

A. Whenever this City designates and describes any street or portion thereof as a street, the use of which is permitted by any vehicle exceeding a maximum gross weight limit of six (6) tons, the City Traffic Engineer is authorized to designate such street or streets by appropriate signs as "Truck Routes" for the movement of vehicles exceeding a maximum gross weight limit of six (6) tons.

B. When any such truck route or routes are established and designated by appropriate signs, the operator of any vehicle exceeding a maximum gross weight limit of six (6) tons shall drive on such route or routes and none other except that nothing in this section shall prohibit the operator of any vehicle exceeding a maximum gross weight of six (6) tons coming from a "Truck Route" having ingress and egress by direct route to and from restricted streets when necessary for the purpose of making pickups and deliveries of goods, wares and merchandise from or to any building or structure located on such restricted streets or for the purpose of delivering materials to be used in the repair, alteration, remodeling or construction of any building or structure upon such restricted streets for which a building permit has previously been obtained.

C. The provisions of this section shall not apply to (1) passenger buses under the jurisdiction of the Public Utilities Commission, (2) any vehicle owned by a public utility, or (3) any vehicle under contract to the City.

D. The following streets and parts of streets are hereby declared to be truck routes for the movement of vehicles that exceed a maximum gross vehicle weight of six (6) tons:
(1) Grand Avenue - within City Limits
(2) North and South Oak Park Boulevard - from Long Branch Avenue to the Northern City Limit
(3) Farroll Road - from South 4th Street to Oak Park Boulevard (4) Highland Way - From South 4th street to 13th Street (5) North and South 4th Street - within City Limits
(6) El Camino Real - from the Western City Limit to the Eastern City Limit (7) Ramona Avenue - from North 4th Street to Front Street (8) 3rd Street - from Grand Avenue to Ramona Avenue
(9) Front Street - from Ramona Avenue to Newport Avenue (10) The Pike – From 13th Street to 23rd Street
(11) South 13th Street from Farroll Road to The Pike
Section 3316. Special Speed Zones.

A. Established Speed Limits in Certain Zones. In accordance with Vehicle Code Section 22357, an engineering and traffic survey has been performed that provides recommendations to establish the speed limit necessary for safe operation of vehicles for the following streets. It is hereby declared that the prima facie speed limit for the following streets shall be as designated below when signs are erected giving notice thereof:
(1) 25 MILES PER HOUR
(a) Highland Way – South 4th Street to South 13th Street (b) South 8th Street – West Grand Avenue to Farroll Road (c) Long Branch Avenue – South 4th Street to South Oak Park Boulevard (d) Mentone Avenue – South 4th Street to South Oak Park Boulevard (e) North Oak Park Boulevard – El Camino Real to Atlantic City Avenue (2) 30 MILES PER HOUR
(a) Atlantic City Avenue – North 4th Street to North 12th Street (b) Atlantic City Avenue – North 12th Street to North Oak Park Boulevard (c) North 13th Street – Atlantic City Avenue to West Grand Avenue (d) South 13th Street – West Grand Avenue to Farroll Road (e) West Grand Avenue – Highway 1 to Oak Park Boulevard (f) The Pike – South 13th Street to East City Limit
(g) North Oak Park Boulevard – Atlantic City Avenue to West Grand Avenue
(h) South Oak Park Boulevard – West Grand Avenue to Mentone Avenue (i) South Oak Park Boulevard – Farroll Road to The Pike (j) North 12th Street – Atlantic City Avenue to El Camino Real (3) 35 MILES PER HOUR
(a) South Oak Park Boulevard – Mentone Avenue to Farroll Road (b) Farroll Road – South 4th Street to South 13th Street (c) Farroll Road – South 13th Street to South Oak Park Boulevard (d) North 4th Street – North City Limit to Ocean View Avenue (e) North 4th Street – Ocean View Avenue to Farroll Road (f) North 4th Street - Farroll Road to South City Limit (g) South 13th Street - Farroll Road to The Pike
(4) 40 MILES PER HOUR
(a) El Camino Real – North 12th Street to Eastern City Limit (b) El Camino Real – Westerly City Limit to North 12th Street Section 3317. Miscellaneous Traffic Regulations.

A. Riding or Driving on Sidewalk. No person shall ride, drive, propel or cause to be propelled any motor vehicle, trailer, camp-trailer, recreational vehicle, motorcycle, commercial vehicle, coach, house car, low-speed-vehicle, or semi-trailer upon any sidewalk excepting over permanently constructed driveways and excepting when it is necessary for any temporary purpose to drive a loaded vehicle across a sidewalk; provided further, that said sidewalk area be substantially protected by wooden planks two inches thick and written permission be previously obtained from the City Traffic Engineer.

Such wooden planks shall not be permitted to remain upon such sidewalk area during the hours from 6:00 p.m. to 6:00 a.m.

B. Horses and Horse Drawn Vehicles.
(1) No person shall drive or ride any animal or animal drawn vehicle in, to, or upon any City Street at any time of the day or night.
(2) The City Traffic Engineer or the Chief of Police may authorize, through the issuance of a Parade Permit as outlined in Grover Beach Municipal Code Article III, Chapter 10, the driving or riding of any animal or animal-drawn vehicle for the purpose of holding a public parade or demonstration or function or for other reasons appearing to be necessary, provided that temporary signs or barricades shall designate the specific location in which such functions are to take place and along which such animals or animal drawn vehicles may be ridden or driven.

Agenda Item No. 9

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: September 25, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
SUBJECT: FY 2022-23 Community Grants Final Reports

RECOMMENDATION
Receive and file final reports by recipients of the FY 2022-23 Community Grants.

BACKGROUND:

In 2021, the City was allocated $3.2 million in one-time ARPA funding over a two-year period. As part of the FY 2021-23 budget adoption on June 14, 2021, Council provided direction to staff to use $100,000 of that funding for nonprofit assistance grants for agencies serving Grover Beach.

On February 15, 2022 the Council approved a Community Grants policy (see Attachment 1) to provide guidance on the award of City discretionary money to be awarded by the Council in any budget year. The policy establishes eligibility criteria for agencies or organizations and allowable services or programs for community grant funding. The policy also establishes scoring criteria for applications for community grant funding and sets forth requirements for awarded organizations to provide year-end reports detailing the work completed with the funding to the City.

Staff used this approved framework to bring recommendations to the Council to approve the appropriation of funding to eligible nonprofit agencies for the FY 2022-23 program year. The City accepted applications for grants up to $10,000 per organization between April 1 and April 30, 2022. The City received 16 applications from various organizations with a total of $135,000 of requested funding. Staff convened a review panel, including the City Manager, Deputy City Manager and two community stakeholders to score the applications. Four applications were deemed ineligible for funding, as they did not meet eligibility requirements established in the Community Grants policy. Based on the review panel’s combined scores, staff recommended the Council award funding to 11 organizations for a total amount of $89,000 in ARPA funding, as shown in the chart below. The Council approved the recommendation at the May 23, 2022 meeting.

Applicant Proposed Program Amount
Requested
Arroyo Grande Community
Hospital
Homeless Patient Services Program –
additional supplies and services
$10,000
Boys and Girls Club San Luis
Obispo
Triple Play Enrichment Program –
expansion of mentoring services for youths
$10,000
CAPSLO The Center for Health & Prevention Clinic –
expansion of capacity for care
$10,000
Exploration Discovery Center Special Saturday events and field trips for school-age children
$10,000
Feeding Neighbors in Need Food bank services $10,000
Staff Report: Approval of Recommended FY 2022-23 Community Grants Page 2 September 25, 2023

Hospice of SLO County In-home Support and Grief Counseling Program – increase awareness and access
in Grover Beach
$10,000
Shower the People Mobile Shower Program expansion $7,500 SLO County YMCA Scholarship Program for out of school
programs
$5,000
SLO Noor Foundation Health
Clinics
Foundation Health Clinics expansion $10,000
SLO Score Business Mentoring Workshops – support
to small business owners in Grover Beach
$2,500
South San Luis County
Womenade
Feeding Families Program – provide
holiday food baskets to families in need
$4,000
In compliance with the Community Grants policy, each of the awarded organizations provided a final report by the August 31, 2023 deadline. The reports detail the important programs implemented to support the Grover Beach community with the funding and may be seen in Attachment 2.

FISCAL IMPACT
There is no fiscal impact to receive this report.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive and file a report on the FY 2022-23 Community Grants; or

2. Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. Organizations that received FY 2022- 23 Community Grants were notified of this report.

Attachments

1. Community Grants Policy

2. FY 2022-23 Community Grants Final Reports
1 City of Grover Beach
Community Grants Program Policy
Policy Statement
Grover Beach recognizes that nonprofit organizations can and will perform beneficial services through the granting of local funds. The City Council sets legislative financial management policies, as recommended by staff and advisory committees. Historically, the City Council has awarded community grants, when possible within budgetary constraints, to contribute toward the funding of programs conducted by non-profit organizations that actively enhance the quality of life for Grover Beach residents. This Community Grants Program Policy is designed to establish guidelines to allow for such funding, furthering City Council Goals.

Policy

1. Non-profit organizations must file a City application for the community grants funding program in accordance with the City’s timeline for grant applications, which may vary from year to year. Notification of the open grant period will be provided on the City’s website.

Applications must be submitted to the City Manager’s Office and forms are available on the City’s website or at City Hall. The application format and requested information is provided as Attachment 1.

2. Public funds shall be made available only when the funds are to be expended for a community program or service that will benefit the community and residents of Grover Beach.

3. Funds will not be allocated to the following organizations and activities (so as to maintain local government impartiality towards political campaigns, religious activities and fundraising endeavors):
a. Political action committees, political candidates, political campaigns, or programs engaged in partisan political activity;
b. Any organization conducting, promoting or denigrating religious activity wherein the funds would be used for sectarian purposes;
c. To support an organization’s fundraising event or activity;

4. Funds requested from membership-based adult organizations will not be considered if the funds requested are to be used to directly benefit its members and not the community of Grover Beach at large.

5. Requests for funding will be considered for award by the City Council only during the periods determined in this Council Policy and if submitted on the appropriate City application form.

6. Funding of a program will not constitute a precedent for contributions in subsequent years.

Attachment 1
2 Eligibility
To be eligible for award of a community grant, agencies must:

1. Submit a separate, completed application form for each project or program (see Attachment 1).

2. Be incorporated as a tax-exempt nonprofit corporation (IRS 501-C) and/or exist as another government entity.

3. Operate in or provide direct services to the community of Grover Beach.

4. Demonstrate the managerial and financial capability to receive and expend grant funds.

5. Assure compliance with all applicable local, state, and federal laws including but not limited to non-discrimination requirements.

In the review panel’s sole discretion, an otherwise qualified applicant (who is unable, pursuant to an articulated justification consistent with promotion of City’s needs, to reasonably meet application requirements) may be granted an exception by the panel from one or more application requirements.

Programs for which funding is requested must qualify under one of the categories below:

1. Community and Social Services: Funding for programs and services that address identified community needs or problems (as stated in the City’s General Plan, Major City Goals, or other policies). These may include, but are not limited to, the following:
a. Crisis Intervention and/or Centers
b. Health and Safety
c. Youth-Serving Agencies
d. Social service agencies and programs.
e. Bilingual service agencies
f. Low-income service agencies
g. Homelessness

2. Project: Funding for one-time projects designed to address a significant community need or problem. City funding shall be limited to a specific timeframe, usually not more than one year.

Funding Request
All applications must submit a completed City application (Attachment 1) and the following attachments unless already on file with the City:

1. Names/addresses of current Board of Directors

2. Board approved current operating budget
3 Evaluation/Scoring Criteria
All applications will be submitted to the Office of the City Manager, C/O of the Deputy City Manager, for consideration. The Deputy City Manager will forward all qualifying applications to a review panel comprised of City staff and community stakeholders for review and consideration.

The review panel will score each qualifying application up to a possible total of 100 points, using the following criteria:

Criteria Total Possible Points
Degree to which the program or services
focus on the City of Grover Beach and its
residents
25 Projected impact or outcomes 25
Alignment with Major City Goal or other
Council Goals and priorities
15 Reasonableness of the proposed budget for
project or services
15 Ability to leverage other funding from
alternative sources
10 Organizational stability/competency 10
100 Total Possible Points
After review, the scored applications will be presented to the City Council for their consideration.

At the time of consideration and evaluation, staff will advise Council of available funding amount to be awarded. The Council will determine which applications will receive available funding and will direct staff to include that funding in the draft proposed budget.

Post Funding Application Requirements
Following award of community grant funds, the recipients will be asked to sign a City Grant Agreement (Attachment 2) stipulating the following conditions:

1. Carry adequate liability insurance naming the City of Grover Beach as additional insured as may be required by the City.

2. Not discriminate in employment or in clients served because of race, religion, national origin, sexual orientation or sex.

3. Be accountable for revenue and expenditures through standard bookkeeping procedures.

An annual audit or review at the applicant’s expense may be required, with the results available to the City of Grover upon request.

4. Provide access to periodic reviews by City staff and City Council for purposes of monitoring the program should the City wish to do so.

5. The funded applicant shall provide the City with a year-end report, including a full financial accounting and narrative report (Attachment 3).

The end-of-the-year report shall be in writing and submitted within 60 days after the oneyear grant period. This report must include a complete financial statement detailing all 4 expenditures of City monies for the program(s) covered under the grant and a narrative report on the project or program and its significance. The financial and narrative report should compare actual expenditures and accomplishments with the budget and objectives cited in the original proposal.

Failure to comply with the reporting requirements by the stipulated dates may lead to termination of the grant agreement and funds being returned to the discretion of the City Council. Failure to comply with reporting requirements will also automatically exclude an agency from eligibility to receive community grant funding from the City for the following two fiscal years

6. Funded applicants must return to the City any unexpended funds at the end of the oneyear period, or agreed upon project or program timeframe, or whenever the City reasonably determines that the applicant has not performed in accordance with the approved program proposal.

7. Any funds returned in accordance with this policy shall be returned to the fund from which they were allocated from.

8. City moneys shall be used only for the purpose and program(s) duly authorized and in accordance with the approved budget. Any deviation from the approved program proposal may be made only with the City’s prior written approval which requires Council authority.

If moneys are used outside the approved program proposal without prior written approval from the City, funds must be returned immediately to the City.

City of Grover Beach
Community Grant Funding Program
ANNUAL PERFORMANCE REPORT- FY 2022-23

GENERAL INFORMATION
Name of Organization: ______________________________________Phone: _______________________ Mailing Address: _____________________________________________________ Zip: _______________ Report Preparer: ___________________________________ Title: ______________________________ Contact Number: __________________________________ Email: ______________________________

PERFORMANCE INFORMATION

1. Describe in detail how grant funds have been used:

Arroyo Grande Community Hospital (805) 994-5421
345 South Halcyon Road 93420
Matthew Fisk Grants Manager
(805) 994-5474 [email protected]
Funds Approved: $____ 10,000 ____ Funds expended per report period: $________ Funds remaining: $________ 10,000 0 Grant funding from the City of Grover Beach’s FY 2023 Community Block Grant program enabled Arroyo Grande Community Hospital’s (AGCH) Homeless Health Initiative (HHI) Licensed Clinical Social Worker (LCSW) to go out into the community and provide supportive services to patients (and persons) experiencing homelessness (PEH) who are primarily encampment- or street-based in Grover Beach and the wider Five Cities area. Specifically, funding was used to supplement one month of the additional time beyond the LCSW’s normal role and working hours within the hospital to conduct these unbillable and complementary services in the community. This work continues with the support of a national grant through the California Healthcare Foundation. AGCH’s homeless health navigation and outreach beyond the walls of the hospital is funded through philanthropic support and grants, including this grant from the City of Grover Beach. In helping to enable this outreach by the hospital into the community, AGCH has been able to establish active dialogue with other human services organizations focused on homelessness, including the 5Cities Homeless Coalition, and work together to mitigate this local crisis by improving the health of PEH in Grover Beach and the Five Cities area. Health and housing often go hand-in-hand in improving the lives of PEH and help these individuals to ultimately get housed through the Cabins for Change program run by 5Cities, or into sober living and rehabilitation. Additionally, in being able to work outside the hospital with the homeless population, AGCH’s HHI LCSW has been able to identify local trends and patterns in the fragmentation of care and access to care, as well as to begin to address those issues through mezzo and macro level interventions (see examples below).

Attachment 2

City of Grover Beach FY23 ARPA Community Grant
Details on Goal Fulfillment
AUGUST 30, 2023
Name of Organization: Arroyo Grande Community Hospital
Phone: (805) 739-3100
Mailing Address: 345 South Halcyon Road
Zip: 93420
Report Preparer: Matthew Fisk
Preparer Title: Grants Manager
Contact Number: (805) 994-5474
Contact Email: [email protected]
Funds Approved: $10,000
*Funds expended per report period: $10,000
*Funds remaining: $0

PERFORMANCE INFORMATION

1. Describe in detail how grant funds have been used:

Grant funding from the City of Grover Beach’s FY 2023 Community Block Grant program enabled Arroyo Grande Community Hospital’s (AGCH) Homeless Health Initiative (HHI) Licensed Clinical Social Worker (LCSW) to go out into the community and provide supportive services to patients (and persons) experiencing homelessness (PEH) who are primarily encampment- or street-based in Grover Beach and the wider Five Cities area. Specifically, funding was used to supplement one month of the additional time beyond the LCSW’s normal role and working hours within the hospital to conduct these unbillable and complementary services in the community. This work continues with the support of a national grant through the California Healthcare Foundation.

AGCH’s homeless health navigation and outreach beyond the walls of the hospital is funded through philanthropic support and grants, including this grant from the City of Grover Beach.1 In 1 Please note that this grant’s funding was carefully partitioned chronologically to not overlap with other grant support for this innovative homeless health program.
helping to enable this outreach by the hospital into the community, AGCH has been able to establish active dialogue with other human services organizations focused on homelessness, including the 5Cities Homeless Coalition, and work together to mitigate this local crisis by improving the health of PEH in Grover Beach and the Five Cities area. Health and housing often go hand-in-hand in improving the lives of PEH and help these individuals to ultimately get housed through the Cabins for Change program run by 5Cities, or into sober living and rehabilitation. Additionally, in being able to work outside the hospital with the homeless population, AGCH’s HHI LCSW has been able to identify local trends and patterns in the fragmentation of care and access to care, as well as to begin to address those issues through mezzo and macro level interventions (see examples below).

2. List dates, name of activities, and event locations for special events funded with City of Grover Beach Grant funds, as relevant (Note: attach activity fliers/advertisement/agendas, as relevant to funded activities):
n/a

3. Total Number of Individuals Served:

In FY 2023, AGCH treated 600 unique patients identified as unhoused or at risk of homelessness in 887 encounters. 41.8% of these encounters within the hospital took place in the Emergency Department (ED) and Outpatient (50.8%), a significant improvement from last fiscal year when

73.1% of 440 unique PEH were in the ED and 18.5% in Outpatient. In her work outside the hospital that was supported by this grant, AGCH’s HHI LCSW was able to put 80 individuals on caseload, 35 of those based in Grover Beach (10 people in Ramona Garden Park, and 25 in encampments in Grover Beach). The LCSW connected with many more individuals beyond these official cases.

4. List the goals that were achieved by your project during this report period:
a. Health literacy and COVID-19 Vaccination:

The FY23 Grover Beach Community grant enabled AGCH’s HHI LCSW to conduct individual outreach to educate and encourage vaccination against COVID-19, including the offer to administer the vaccine to that individual. Being fully vaccinated against COVID-19 helps to remove barriers to care.

Achievements:
● If health related COVID concerns exist, the AGCH HHI LCSW links and connects individuals to the appropriate resource and/or provides harm reduction strategies (e.g. check-ins, street medicine, water, etc.) and follows up with relevant care team providers/members.
● If appropriate to the care plan, the AGCH HHI LCSW provide patients with information on vaccination locations.
● The AGCH HHI LCSW was able to integrate harm reduction into care plans for COVID-positive PEH, including helping to problem-solve proper isolation from others in encampments, including temporarily relocating COVID-positive PEH into hotels, or educating them on proper isolation practices in tent-living situations.
b. Transportation: Bus passes, taxis, and ride services like Lyft are provided to help PEH get to the pharmacy or lodging upon discharge.

Achievements:
● AGCH coordinates and provides transportation to patients experiencing homelessness
● Transportation problem-solving is integrated into care plans with individuals. c. Basic Survival Items: Basic survival items are provided, ranging from warm clothing to sleeping bags.

Achievements:
● AGCH assesses and integrates basic survival needs and materials into the safe discharge and appropriate care plan for patients experiencing homelessness.

For example, as a harm reduction strategy, AGCH’s HHI LCSW utilized alternate unused funding (from gift revenue) to provide sleeping bags and tents to help patients recovering from illness or surgery to isolate due to lack of shelter beds. d. Case Management Services: Social workers and case managers monitor patients after discharge, connect them with other local resources, and assist them with applying for government benefits.

Achievements:
● AGCH’s HHI LCSW has been able to consistently provide weekly support to PEH from the hospital to the streets.
● AGCH’s HHI LCSW has been able to partner with the 5Cities Homeless Coalition for outreach so often patient’s needs can be proactively identified and addressed through assessment and care coordination by AGCH. e. Sober Homes: According to the 2021 Advisory Report on Behavioral Services for People Who Are Homeless, from the US Substance Abuse and Mental Health Services Administration (SAMHSA), of the approximately 580,000 individuals experiencing homelessness on any given night nationwide, one in five cite substance abuse as the original cause of their homelessness and 36% currently struggle with substance abuse with past trauma, cognitive impairment, and medical conditions including infectious disease often co-occurring, which adds to treatment challenges. In 2018 and 2019, Arroyo Grande Community Hospital care providers noted that 20% of homeless patients had a possible alcohol abuse disorder and 9% presented with behavioral or mental disorders related to substance abuse. These numbers rose during the pandemic and have started to fall again–in part as a result of this grant and other funding raised that supports AGCH’s programs and procedures for patients experiencing homelessness. In 2020, 232 patients experiencing homelessness also had mental health and substance use/abuse diagnoses. In 2021, 72% of PEH (311 of 433 unique patients) presented as high-risk due to substance use and mental health difficulties, but that fell to 24% (104 of 440 unique patients. Substance abuse hinders patients from fully recovering and increases the likelihood of further medical issues. Key studies have also found that people experiencing homelessness have a risk of mortality 1.5 to 11.5 times higher than the housed population in the US. If possible, AGCH LCSWs enroll local PEH with substance abuse issues up to one month in a sober living home, usually Good Samaritan Recovery Point in Santa Maria, to help break this detrimental cycle.

Achievements:
● The AGCH HHI LCSW collaborated with Marian Regional Medical Center’s new Outpatient Psychiatric Unit in Santa Maria to provide a safe place for PEH to go while they try to access substance use treatment through Drug and Alcohol Services.
f. Medication: On weekends, AGCH’s Care Coordination team, which includes the HHI LCSW, issues pharmacy-only gift cards to PEH. Most prescriptions for PEH are filled by a local pharmacy that is closed on weekends.

Achievements:
● The grant from the City of Grover Beach enabled the AGCH HHI LCSW to provide key guidance to the patient care team to identify barriers to accessing certain medications, as well as modified treatment plans for unhoused patients living in non-traditional habitations.
● The AGCH HHI LCSW has been able to work proactively in the community to identify barriers that may arise post-discharge for PEH recently treated in the hospital.

City of Grover Beach
Community Grant Funding Program
ANNUAL PERFORMANCE REPORT- FY 2022-23

GENERAL INFORMATION
Name of Organization: ______________________________________Phone: _______________________ Mailing Address: _____________________________________________________ Zip: _______________ Report Preparer: Kayla Wilburn Title: Clinic Director Contact Number: (805) 544-2498 Email: [email protected]
Funds Approved: $10,000 Funds expended per report period: $10,000 Funds remaining: $0

PERFORMANCE INFORMATION

1. Describe in detail how grant funds have been used:

Exhibit C
Grant funds were utilized to promote the availability of quality, confidential sexual and reproductive health care services. Promotion included targeted radio, social media and online advertisements focused on reaching the Grover Beach community. Print materials, including postcards, posters and flyers were also developed and distributed throughout Grover Beach and the 5-Cities area.

Funds also supported staff time to provide community outreach and education, as well as case management of abnormal test results.

Community Action Partnership of San Luis Obispo County, Inc. (805) 544-4355 1030 Southwood Drive, San Luis Obispo, CA 93401
Doc ID: 701c0683b9b1ca290bbdc4acaa5384d3a17bec2d

2. List dates, name of activities, and event locations for special events funded with City of Grover Beach Grant funds, as relevant (Note: attach activity fliers/advertisement/agendas, as relevant to funded activities):

3. Total Number of Individuals Served: ________ Number of Grover Beach Residents Served: ___________

4. List the goals that were achieved by your project during this report period:
07/24-08/21/2022 Summer Concert Series, Ramona Garden Park 08/27-28/2022 Stone Soup Music Festival
06/04-24/2023 Summer Concert Series, Ramona Garden Park 2,338 580
580 Grover Beach residents accessed sexual and reproductive health care services at The Center for Health & Prevention clinic located in Arroyo Grande. Services included testing and treatment for sexually transmitted infections (STIs), HIV and hepatitis C testing, pre-exposure profylaxis (PrEP) for the prevention of HIV, all forms of contraception, Pap tests, lab panels, hormone replacement therapy clinical breast exams and referrals for free mammograms. Patients also received appropriate referrals for primary and specialty health care, housing support, food programs, mental health, substance use intervention and other safety net services.

Doc ID: 701c0683b9b1ca290bbdc4acaa5384d3a17bec2d
Community GRANT
Report Form

5. Authorizations:

I hereby certify and attest that both the information contained in this report is true to the best of my knowledge and belief, as well as I am authorized by the organization discussed herein to present this report as its duly authorized representative. I also hereby certify that our organization is in compliance with all state, federal, and local laws regarding licensing and employment practices.

Print Name of Report Preparer: Kayla Wilburn Title: Clinic Director Preparer Signature: ____________________________________________________Date:____________________ Print name of President or Authorized Officer: Elizabeth "Biz" Steinberg Title: Chief Executive Officer President Signature: ______________________________________________________________Date: ________________________ Return this completed report to:

City of Grover Beach
Administrative Services
154 S. 8th Street
Grover Beach, CA 93433
Attn: Administrative Services Director
Office (805) 473-4550
Email: [email protected]
08 / 30 / 2023
08 / 30 / 2023
Doc ID: 701c0683b9b1ca290bbdc4acaa5384d3a17bec2d
City of GB annual report
2022 Annual Report.pdf
701c0683b9b1ca290bbdc4acaa5384d3a17bec2d

MM / DD / YYYY
Signed
08 / 30 / 2023
15:52:36 UTC-7
Sent for signature to Kayla Wilburn ([email protected]) and Elizabeth "Biz" Steinberg
([email protected]) from [email protected]
IP: 47.231.200.8
08 / 30 / 2023
15:54:45 UTC-7
Viewed by Elizabeth "Biz" Steinberg
([email protected])
IP: 141.126.90.173
08 / 30 / 2023
15:55:02 UTC-7
Signed by Elizabeth "Biz" Steinberg
([email protected])
IP: 141.126.90.173
08 / 30 / 2023
16:03:22 UTC-7
Viewed by Kayla Wilburn ([email protected])
IP: 128.92.13.106
08 / 30 / 2023
16:04:49 UTC-7
Signed by Kayla Wilburn ([email protected])
IP: 159.100.175.55
08 / 30 / 2023 The document has been completed.
16:04:49 UTC-7

CITY OF GROVER BEACH
FY 2022-23 COMMUNITY GRANT FUNDING
NON-PROFIT – AMERICAN RESCUE PLAN ACT (ARPA) FUNDS