AGENDA
GROVER BEACH CITY COUNCIL
GROVER BEACH CITY HALL - COUNCIL CHAMBER
154 SOUTH EIGHTH STREET
GROVER BEACH, CALIFORNIA
TUESDAY, OCTOBER 15, 2024, 6:00 PM
Next Resolution No .24-52
Next Ordinance No. 24-09
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
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 Filipino American History Month
2. Proclamation for 2024 Dating and Domestic Violence Awareness Month
3. Proclamation for Red Ribbon Week
4. Proclamation for National Apprenticeship Week
PRESENTATIONS
5. Introduction of New Employees
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
Tuesday, October 15, 2024
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.
6. Minutes of the City Council Meeting on Monday, September 23, 2024 – City Clerk Sims
(Recommended Action: Approve the minutes as submitted or revised.)
7. Resolution to Accept the 2024 Byrne Discretionary Community Project Grant Award for Police Technology Projects – Police Chief Munro (Recommended Action: Adopt a Resolution approving the acceptance of 2024 Byrne Discretionary Community Project Grant funds provided by the U.S. Government in the amount of $543,000 for FY 2024-25; and authorize the Chief of Police to execute a contract with the Unites States Department of Justice to accept the funds.)
8. Approve Contract with HDL, Inc. for Cannabis Auditing Services – Administrative Services Director Szamet
(Recommended Action: Approve an agreement with HDL, Inc. for cannabis auditing services for a term of three years with two, one-year extensions and authorize the City Manager to execute the agreement on behalf of the City.)
9. Revision of Resolution for 2024 California Department of Housing and Community Development Block Grant Application – Community Development Director Martin and Associate Planner Reese
(Recommended Action: Adopt a revised Resolution to comply with the updated requirements from the Department of Housing and Community Development (HCD) for the 2024 Community Development Block Grant (CDBG) application, authorizing staff to prepare and submit an application for a CDBG for Phase 3 of the Ramona Garden Park Rehabilitation Project, Microenterprise Assistance Program, and Non-Congregate Shelter Navigation Center Program.)
PUBLIC HEARING
None
REGULAR BUSINESS
10. Economic Development Update – Community Development Director Martin (Recommended Action: Receive an update on key economic development initiatives and activities.)
Agenda: Grover Beach City Council Meeting Page 3
Tuesday, October 15, 2024
11. Citizens Initiative to Require the Office of City Clerk to be an Elected Position – City Attorney Lomeli
(Recommended Action: Receive a presentation on a citizen initiative to require the office of City Clerk to be an elected position and consider potential action pursuant to California Elections Code.)
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) 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) California Joint Powers Insurance Authority (CJPIA) Clint Weirick (Alt: Zach Zimmerman) Homeless Services Oversight Council (HSOC) Clint Weirick (Alt: Zach Zimmerman) SLO County Water Resources Advisory Committee (WRAC) Clint Weirick (Alt: Robert Robert) REACH Zach Zimmerman (Alt: Robert Robert)
South County Chambers of Commerce Zach Zimmerman (Alt: Daniel Rushing) Visit SLO CAL Advisory Committee Zach Zimmerman (Alt: Robert Robert)
COUNCIL COMMUNICATIONS
This item gives individual Council Members the opportunity to seek consensus for scheduling a specific item on a future agenda, authorizing staff time to provide background information and prepare a staff report for a future agenda, or to comment on Council business, City operations, projects or other items of community interest.
CITY MANAGER’S REPORTS AND COMMENTS
CITY ATTORNEY’S REPORTS AND COMMENTS
Agenda: Grover Beach City Council Meeting Page 4
Tuesday, October 15, 2024
CLOSED SESSION
It is the intention of the City Council to meet in Closed Session concerning the following item:
A. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Government Code section 54956.9
One (1) Case.
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 from 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.
No Documents for this Agenda Item
Proclamation for Filipino American History Month
Agenda Item No. 1
Proclamation for Filipino American
History Month
(CC Mtg 10/15/2024)
No Documents for this Agenda Item
Proclamation for 2024 Dating and Domestic Violence
Awareness Month
Agenda Item No. 2
Proclamation for 2024 Dating and
Domestic Violence Awareness Month
(CC Mtg 10/15/2024)
No Documents for this Agenda Item
Proclamation for Red Ribbon Week
Agenda Item No. 3
Proclamation for Red Ribbon Week
(CC Mtg 10/15/2024)
No Documents for this Agenda Item
Proclamation for National Apprenticeship Week
Agenda Item No. 4
Proclamation for National Apprenticeship
Week
(CC Mtg 10/15/2024)
No Documents for this Agenda Item
Introduction of New Employees
Agenda Item No. 5
Introduction of New Employees
(CC Mtg 10/15/2024)
MINUTES
CITY COUNCIL MEETING
MONDAY, SEPTEMBER 23, 2024
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 Kamila Landeros an 11-year-old, 6th grade student at Fairgrove Elementary School.
ROLL CALL
City Council: Council Members Daniel Rushing, Clint Weirick, Zach Zimmerman, Mayor Pro Tem Robert Robert and Mayor Karen Bright were present.
City Staff: Assistant City Manager Kristin Eriksson, City Attorney Rob Lomeli, City Clerk Wendi Sims, Police Chief Jim Munro, Public Works Director/City Engineer Greg Ray, Administrative Services Director Nick Szamet, Community Development Director Megan Martin, and FCFA Fire Chief Hallett were also present.
CLOSED SESSION ANNOUNCEMENTS
City Attorney Lomeli read the following announcement:
On Monday, September 9, 2024 at 8:47 p.m., the Council met in Closed Session regarding the following item:
A. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Government Code section 54956.9.
One (1) Case
B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8)
Property: APN 060-546-004, APN 060-546-005, APN 060-546-019, 943,973, 953 Huston Street
Agency Negotiators: Matthew Bronson, City Manager; Greg Ray, Public Works Director/City Engineer; Robert Lomeil, City Attorney
Negotiating Parties: Instructions to negotiators shall include price, terms and conditions related to terms of payment, project specific information related to project affecting price Closed Session Announcements: At 9:20 p.m., Mayor Bright reconvened the meeting in open session with all Council Members present, and announced there were no reportable actions:
AGENDA REVIEW
Action: Upon unanimous consensus, the Council adopted the agenda as presented.
Agenda Item No. 6
Minutes: City Council Meeting Page 2
Monday, September 23, 2024
CEREMONIAL CALENDAR
1. Proclamation for National Recovery Month read by Council Member Weirick and accepted by Renee Poirier the Executive Director of Casa Solana.
2. Proclamation for Fire Prevention Month read by Council Member Rushing and accepted by Five Cities Fire Authority (FCFA) Fire Chief Hallett.
PRESENTATIONS
None.
CONSENT AGENDA
Prior to consideration of the Consent Agenda, Mayor Bright opened public comment. There being no public comments received, the Mayor closed public comment.
It was motioned by Council Member Rushing and seconded by Council Member Zimmerman to approve Consent Agenda Item No.’s 3, 4, 5, 6, 7, 8, 9, 10, and 11 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. Treasurer’s Report for the Period August 1, through August 31, 2024 Action: Approved the Treasurer’s Report as submitted.
4. Treasurer’s Report for the 2022 Streets Bond Account - $10,000,000 for the Period August 1, through August 31, 2024
Action: Approved the Treasurer’s Report as submitted.
5. Minutes of the City Council Meeting on Monday, September 9, 2024 Action: Approved the minutes as submitted.
6. FY 2023-24 Community Grants Reporting
Action: Received and filed the reports from the recipients of FY 2023-24 Community Grants.
7. Biennial Review of Conflict-of-Interest Code
Action: Adopted the Resolution No. 24-51 amending the City’s Conflict of Interest Code given job classification revisions.
Resolution No. 24-51: A Resolution of the City Council of the City of Grover Beach, California, Adopting an Amended Conflict of Interest Code Containing Revised Designated Filers
Minutes: City Council Meeting Page 3
Monday, September 23, 2024
8. Acceptance of Offer of Dedication from Final Tract Map 3038 Phase 1 for South 16th Street
Action: Accepted the offer of dedication on Final Tract Map 3038 Phase 1 for South 16th Street and authorize the City Clerk to record the acceptance.
9. Authorization to Purchase Ramona Garden Park Playground Equipment Action: Authorized purchase order for playground equipment associated with the Ramona Garden Park Rehabilitation Project, Phases 1 and 2 (CIP 1259).
10. Prohousing Designation Program Application
Action: Adopted Resolution No. 24-52 authorizing application to and participation in the Prohousing Designation Program (Attachment 1) authorizing the City Manager to: 1) Submit a Prohousing Designation Program application to the California Department of Housing and Community Development (HCD); and if approved by HCD, 2) Execute all documents deemed necessary or appropriate to participate in the Prohousing Designation Program.
Resolution No. 24-52: A Resolution of the City Council of the City of Grover Beach, California Authorizing Application to and Participation in the Prohousing Designation Program.
11. West Grand Avenue Streetscape 4th-8th Street Project Change Order Approval Action: Authorized the City Manager to approve a change order for the West Grand Avenue Streetscape Project (CIP 2287) related to necessary sewer main work.
PUBLIC HEARING
None.
REGULAR BUSINESS:
12. Public Safety Update
Mayor Bright read the title to the foregoing item and deferred to staff for a report.
Police Chief Munro and Five Cities Fire Authority Fire Chief Hallett presented Powerpoint presentations discussing the Public Safety Update.
Mayor Bright invited public comment on this matter.
• William Rea
• Dee Santos
No additional comments were received at this time and the Mayor closed public comment.
Action: Council received the update on Grover Beach Police Department and Five Cities Fire Authority on key public safety initiatives and highlights.
Minutes: City Council Meeting Page 4
Monday, September 23, 2024
13. Council Positions on November 2024 Statewide Ballot Measures Mayor Bright read the title to the foregoing item and deferred to staff for a report.
Assistant City Manager Eriksson presented a PowerPoint presentation discussing the November 2024 statewide ballot measures.
Mayor Bright invited public comment on this matter.
• Dan Dow
• Andrea Seastrand
• Brenda Auer
No additional public comments were received at this time and the Mayor closed public comment.
Action: Council received the report on the November 2024 statewide ballot measures relevant to City operations and supported by the League of California Cities and provided direction to staff on taking official positions on behalf of the City.
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.
• Lesley Marr
• Debra Tepper
• Elizabeth Doukas
• Andrea Seastrand
• Dee Santos
• Brenda Auer
• Steve Leiberman
No additional comments were received and the Mayor closed public comment.
COUNCIL COMMITTEE REPORTS
Council Member Zimmerman discussed the South County Chamber of Commerce Mixer on Wednesday, September 25th at Vespera.
Council Member Rushing reported on the Zone 3 Advisory meeting.
Mayor Pro Tem Robert discussed the Integrated Waste Management Authority (IWMA) meeting.
Council Member Weirick reported on the Five Cities Fire Authority (FCFA) meeting.
Minutes: City Council Meeting Page 5
Monday, September 23, 2024
COUNCIL COMMUNICATIONS
A. Council Member Zimmerman suggested an option for the public comment period, of allowing people who would like to make a minute comment go first followed by others who would be using there full three minutes. Also, discussed the option of offering some assistance to the local radio station KYXZ.
B. Council Member Robert commented on the receipt of the Fleece Award.
C. Council Member Weirick discussed that he attended a few Community events: Ribbon Cutting at Mentone Basine Pickleball Courts, The Dune Run Run; and he attended the ECOSLO Creek to Coast Clean Up.
D. Mayor Bright mentioned a communication she had received from Pastor Kevin Begley from the Shadow Mountain Community Church regarding the repairs done to the sidewalks, curb and gutter.
CITY MANAGER'S REPORTS AND COMMENTS
Assistant City Manager Eriksson reported on upcoming events in the City: Movie in the Park at Ramona Garden on September 27th at 6:00 pm; Coffee Talk on October 12th at 9:00 am at Ramona Park and the Annual Trunk or Treat on October 25th at Ramona Garden at 5:00 pm.
CITY ATTORNEY’S REPORTS AND COMMENTS
None.
CLOSED SESSION
None.
There being no further business to come before the City Council, Mayor Bright adjourned the meeting at 8:11 p.m.
_____________________________
KAREN BRIGHT, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
(Approved at CC Mtg ______)
Agenda Item No. 7
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 15, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Jim Munro, Chief of Police
SUBJECT: Resolution to Accept the 2024 Byrne Discretionary Community Project Grant Award for Police Technology Projects
RECOMMENDATION
Adopt a Resolution approving the acceptance of 2024 Byrne Discretionary Community Project Grant funds provided by the U.S. Government in the amount of $543,000 for FY 2024-25; and authorize the Chief of Police to execute a contract with the United States Department of Justice to accept the funds.
BACKGROUND
In April 2023, the Grover Beach Police Department was invited to apply for the 2024 Byrne Discretionary Community Project Grant provided by the U.S. government. The department subsequently submitted an application requesting $543,000 in funding to assist in completing technology upgrades to better serve the community. The department was notified that the grant had been awarded allowing the department to invest in technology solutions that will help staff prevent and solve crimes within the city. Specifically, the department will make the following investments with the award:
• Expand and repair current community camera program
• Expand the current license plate reader camera system • Purchase and install new in-car camera systems
• Purchase multi-band two-way radios for supervisors
If approved by the Council, the Byrne Discretionary Community Project Grant requires the signature of the Chief of Police to enter into a contract for acceptance of the funds. The funds approved by the grant must be utilized before June 30, 2027. The City does not have a matching funds requirement for this grant; however, the funds for the grant are paid back to the City on a reimbursement basis. If accepted, the City will be reimbursed by the United States Department of Justice on a quarterly basis for operational expenses related to this program.
FISCAL IMPACT
The grant requires the City to expend the approved grant amount of $543,000 for technology advancements with full reimbursement being provided by the U.S. government.
Staff Report: 2024 Byrne Discretionary Community Project Grant for Police Technology October 15, 2024
ALTERNATIVES
The City Council has the following alternatives to consider:
1. Adopt a Resolution approving the acceptance of 2024 Byrne Discretionary Community Project Grant funds provided by the U.S. government in the amount of $543,000 for FY 2024-25; and authorize the Chief of Police to execute a contract with the United States Department of Justice to accept the funds; or
2. Decline to adopt the resolution to accept the Byrne Discretionary Community Project Grant funds in the amount of $543,000; or
3. Provide staff with alternate direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution No. 24-XX; Exhibit A - Intent to Award Letter and Agreement from the U.S.
Department of Justice
Attachment 1
RESOLUTION NO. 24-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA APPROVING THE ACCEPTANCE OF $543,000 IN BYRNE
DESCRETIONARY COMMUNITY PROJECT GRANT AWARD FUNDS FOR
POLICE TECHNOLOGY PROJECTS AND AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT WITH U.S. DEPARTMENT OF JUSTICE
WHEREAS, the Grover Beach Police Department desires to enhance community safety by purchasing and upgrading community cameras, license plate cameras, in-car cameras, multiband radios; and WHEREAS, the United States Department of Justice has notified and provided notice to the City of its intent to award a grant in the amount of five hundred forty-three thousand dollars ($543,000), attached hereto as Exhibit A and incorporated by reference; and WHEREAS, the U.S. Department of Justice requires that City Council adopt a resolution in order to be eligible to accept and execute the Grant Agreement in the amount of five hundred forty-three thousand dollars ($543,000); and
WHEREAS, grant funds will be reimbursed quarterly by the U.S. Treasury Department.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grover Beach as follows:
SECTION 1. The submission of the application and acceptance of funds on behalf of the City of Grover Beach is ratified and approved.
SECTION 2. The City Council of the City of Grover Beach hereby agrees to, and by this Resolution, does accept the five hundred forty-three thousand dollars ($543,000) in grant funds awarded to the City without further action of the City Council being required.
SECTION 3. The City of Grover Beach agrees to comply with the terms, conditions and limitations of the Grant Agreement and the City Manager, or his designee, is hereby authorized and directed to execute any agreements, assurances, or other documents required or necessary for acceptance of the grant funding.
On motion by ________, seconded by _________, and on the following roll call vote, to wit:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
the foregoing Resolution was PASSED, APPROVED, AND ADOPTED at the Regular Meeting of the City Council of the City of Grover Beach, California, this 15th day of October, 2024. ___________________________________
KAREN BRIGHT, MAYOR
ATTEST:
______________________________
WENDI SIMS, CITY CLERK
** D R A F T **
Department of Justice (DOJ)
Office of Justice Programs
Bureau of Justice Assistance
Washington, D.C. 20531
Name and Address of Recipient: CITY OF GROVER BEACH
711 ROCKAWAY AVE
154 S. 8TH ST.
City, State and Zip: GROVER BEACH, CA 93433
Recipient UEI: UMY2QW8JDWK3
Project Title: City of Grover Beach Enhancing
Public Safety Through Technology Award Number: 15PBJA-24-GG-00381-BRND Solicitation Title: BJA FY24 Invited to Apply- Byrne Discretionary Community Project Grants/Byrne Discretionary Grants Program
Federal Award Amount: $543,000.00 Federal Award Date: 8/15/24 Awarding Agency: Office of Justice Programs
Bureau of Justice Assistance
Funding Instrument Type: Grant
Opportunity Category: D
Assistance Listing:
16.753 - Congressionally Recommended Awards
Project Period Start Date: 5/1/24 Project Period End Date: 6/30/27 Budget Period Start Date: 5/1/24 Budget Period End Date: 6/30/27 Project Description:
The City of Grover Beach proposes to expand the technology used by the Police Department to enhance the safety and security of the community. The purpose of this grant will help cover the costs associated with buying more Community Video Cameras, License Plate Readers (LPR), Patrol Vehicle In-Car Cameras and multi-band police radios. Grover Beach currently operates a community camera and LPR program that has been instrumental in solving multiple homicides, robberies, hit and run collisions and capturing suspects fleeing crimes that occurred in nearby cities of Pismo Beach, Arroyo Grande and Oceano. The Police Department also desires to expand its patrol vehicles in-car camera system to add Axon LPR cameras to patrol vehicles that do not have this in-car capability currently. The final component of this proposal is to buy multi-band radios for command staff and supervisors that will allow radio communications with multiple agencies on the same portable radio thereby enhancing regional communications. The expected outcome of the expansion of these programs will lead to the apprehension of criminals, including violent criminals, stolen vehicles, the identifying of suspects involved in crimes, and the locating of missing persons.
Page: 1 of 21
Exhibit A
Award Letter
August 15, 2024
Dear John Peters,
On behalf of Attorney General Merrick B. Garland, it is my pleasure to inform you the Office of Justice Programs (OJP) has approved the application submitted by CITY OF GROVER BEACH for an award under the funding opportunity entitled 2024 BJA FY24 Invited to Apply- Byrne Discretionary Community Project Grants/Byrne Discretionary Grants Program. The approved award amount is $543,000.
Review the Award Instrument below carefully and familiarize yourself with all conditions and requirements before accepting your award. The Award Instrument includes the Award Offer (Award Information, Project Information, Financial Information, and Award Conditions) and Award Acceptance. For COPS Office and OVW funding the Award Offer also includes any Other Award Documents.
Please note that award requirements include not only the conditions and limitations set forth in the Award Offer, but also compliance with assurances and certifications that relate to conduct during the period of performance for the award. These requirements encompass financial, administrative, and programmatic matters, as well as other important matters (e.g., specific restrictions on use of funds). Therefore, all key staff should receive the award conditions, the assurances and certifications, and the application as approved by OJP, so that they understand the award requirements. Information on all pertinent award requirements also must be provided to any subrecipient of the award.
Should you accept the award and then fail to comply with an award requirement, DOJ will pursue appropriate remedies for non-compliance, which may include termination of the award and/or a requirement to repay award funds.
Prior to accepting the award, your Entity Administrator must assign a Financial Manager, Grant Award Administrator, and Authorized Representative(s) in the Justice Grants System (JustGrants). The Entity Administrator will need to ensure the assigned Authorized Representative(s) is current and has the legal authority to accept awards and bind the entity to the award terms and conditions. To accept the award, the Authorized Representative(s) must accept all parts of the Award Offer in the Justice Grants System (JustGrants), including by executing the required declaration and certification, within 45 days from the award date.
To access your funds, you will need to enroll in the Automated Standard Application for Payments (ASAP) system, if you haven’t already completed the enrollment process in ASAP. The Entity Administrator should have already received an email from ASAP to initiate this process.
Congratulations, and we look forward to working with you.
Brent J. Cohen
Acting Assistant Attorney General
Office for Civil Rights Notice for All Recipients
The Office for Civil Rights (OCR), Office of Justice Programs (OJP), U.S. Department of Justice (DOJ) enforces federal civil rights laws and other provisions that prohibit discrimination by recipients of federal financial assistance from OJP, the Office of Community Oriented Policing Services (COPS), and the Office on Violence Against Women (OVW).
Several civil rights laws, including Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973, require recipients of federal financial assistance (recipients) to give assurances that they will comply with those laws. Taken together, these and other civil rights laws prohibit recipients from discriminating in the provision of services and employment because of race, color, national origin, religion, disability, and sex or from discriminating in the provision of services on the bases of age.
Some recipients of DOJ financial assistance have additional obligations to comply with other applicable nondiscrimination provisions like the Omnibus Crime Control and Safe Streets Act of 1968, which prohibits Page: 2 of 21
discrimination on the basis of religion in addition to race, color, national origin, and sex. Recipients may also have related requirements regarding the development and implementation of equal employment opportunity programs.
OCR provides technical assistance, training, and other resources to help recipients comply with civil rights obligations. Further, OCR administratively enforces civil rights laws and nondiscrimination provisions by investigating DOJ recipients that are the subject of discrimination complaints. In addition, OCR conducts compliance reviews of DOJ recipients based on regulatory criteria. These investigations and compliance reviews permit OCR to evaluate whether DOJ recipients are providing services to the public and engaging in employment practices in a nondiscriminatory manner.
For more information about OCR, your civil rights and nondiscrimination responsibilities, how to notify your employees or beneficiaries of their civil rights protections and responsibilities and how to file a complaint, as well as technical assistance, training, and other resources, please visit www.ojp.gov/program/civil-rights-office/ outreach. If you would like OCR to assist you in fulfilling your civil rights or nondiscrimination responsibilities, please contact us at [email protected] or www.ojp.gov/program/civil-rights-office/about#ocr-contacts.
Memorandum Regarding NEPA
NEPA Letter Type
OJP - Additional Information Required
NEPA Letter
The scope or location or the proposed project is such that it may not qualify for a categorical exclusion as contained in Appendix D to Part 61 of Title 28 of the Code of Federal Regulations. As such, prior to initiation of the project, the grantee may need to complete an Environmental Assessment (EA) and/or an Environmental Impact Statement (EIS).
Additional information is needed to determine if any of the following activities will be conducted as a result of this award, whether under the Office of Justice Programs federal action or a related third party action:
(1) New construction
(2) Any renovation or remodeling of a property located in an environmentally or historically sensitive area, including property (a) listed on or eligible for listing on the National Register of Historic Places, or (b) located within a 100-year flood plain, a wetland, or habitat for an endangered species
(3) A renovation that will change the basic prior use of a facility or significantly change its size (4) Research and technology whose anticipated and future application could be expected to have an effect on the environment (5) Implementation of a program involving the use of chemicals (including the identification, seizure, or closure of clandestine methamphetamine laboratories)
For more information about NEPA requirements, including which projects may qualify for categorical exclusions, and the preparation of an environmental review documents, please see https://bja.ojp.gov/national-environmental-policy-act-nepa-guidance.
Questions about this determination may be directed to your grant manager or Orbin Terry, Environmental Coordinator for the Bureau of Justice Assistance.
NEPA Coordinator
First Name
Orbin Middle Name Last NameTerry
Page: 3 of 21
Award Information
This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions.
Recipient Information
Recipient Name
CITY OF GROVER BEACH
UEI
UMY2QW8JDWK3
Street 1
711 ROCKAWAY AVE
Street 2
154 S. 8TH ST.
City
GROVER BEACH
State/U.S. Territory
California
Zip/Postal Code
93433
Country
United States
County/Parish Province
Award Details
Federal Award Date
8/15/24
Award Type
Initial
Award Number
15PBJA-24-GG-00381-BRND
Supplement Number
00 Federal Award Amount
$543,000.00
Funding Instrument Type
Grant
Assistance Listing
Number
Assistance Listings Program Title
16.753 Congressionally Recommended Awards
Statutory Authority
Department of Justice Appropriations Act, 2024 (Pub. L. No. 118-42, 138 Stat. 25, 146-47) [ ]
I have read and understand the information presented in this section of the Federal Award Instrument.
Project Information
Page: 4 of 21
This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions.
Solicitation Title
2024 BJA FY24 Invited to Apply- Byrne Discretionary
Community Project Grants/Byrne Discretionary Grants
Program
Application Number
GRANT14153035
Awarding Agency
OJP
Program Office
BJA
Grant Manager Name
Issa Legall
Phone Number
202-679-1274
E-mail Address
[email protected]
Project Title
City of Grover Beach Enhancing Public Safety Through Technology Performance Period Start
Date
05/01/2024
Performance Period End Date
06/30/2027
Budget Period Start Date
05/01/2024
Budget Period End Date
06/30/2027
Project Description
The City of Grover Beach proposes to expand the technology used by the Police Department to enhance the safety and security of the community. The purpose of this grant will help cover the costs associated with buying more Community Video Cameras, License Plate Readers (LPR), Patrol Vehicle In-Car Cameras and multi-band police radios. Grover Beach currently operates a community camera and LPR program that has been instrumental in solving multiple homicides, robberies, hit and run collisions and capturing suspects fleeing crimes that occurred in nearby cities of Pismo Beach, Arroyo Grande and Oceano. The Police Department also desires to expand its patrol vehicles in-car camera system to add Axon LPR cameras to patrol vehicles that do not have this in-car capability currently. The final component of this proposal is to buy multi-band radios for command staff and supervisors that will allow radio communications with multiple agencies on the same portable radio thereby enhancing regional communications. The expected outcome of the expansion of these programs will lead to the apprehension of criminals, including violent criminals, stolen vehicles, the identifying of suspects involved in crimes, and the locating of missing persons. [ ]
I have read and understand the information presented in this section of the Federal Award Instrument.
Financial Information
This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions.
The recipient budget is currently under review.
Page: 5 of 21
[ ]
I have read and understand the information presented in this section of the Federal Award Instrument.
Award Conditions
This award is offered subject to the conditions or limitations set forth in the Award Information, Project Information, Financial Information, and Award Conditions. 1 Meaningful access requirement for individuals with limited English proficiency The recipient, and any subrecipient at any tier, must take reasonable steps to ensure that individuals with limited English proficiency (LEP) have meaningful access to their programs and activities to comply with Title VI of the Civil Rights Act of 1964 (Title VI), which prohibits discrimination on the basis of national origin, including discrimination against individuals with LEP. Such steps may require providing language assistance services, such as interpretation or translation services. The Department of Justice guidance on compliance with this requirement may be found at "Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons" (67 Fed. Reg. 41455-41472) (https:// www.federalregister.gov/d/02-15207) and is incorporated by reference here. 2 Compliance with general appropriations-law restrictions on the use of federal funds (FY 2024) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable restrictions on the use of federal funds set out in federal appropriations statutes. Pertinent restrictions that may be set out in applicable appropriations acts are indicated at https://ojp.gov/funding/Explore/FY24AppropriationsRestrictions.htm, and are incorporated by reference here.
Should a question arise as to whether a particular use of federal funds by a recipient (or a subrecipient) would or might fall within the scope of an appropriations-law restriction, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. 3 Requirements of the award; remedies for non-compliance or for materially false statements The conditions of this award are material requirements of the award. Compliance with any assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance also is a material requirement of this award.
Limited Exceptions. In certain special circumstances, the U.S. Department of Justice ("DOJ") may determine that it will not enforce, or enforce only in part, one or more requirements otherwise applicable to the award. Any such exceptions regarding enforcement, including any such exceptions made during the period of performance, are (or will be during the period of performance) set out through the Office of Justice Programs ("OJP") webpage entitled "Legal Notices:
Special circumstances as to particular award conditions" (ojp.gov/funding/Explore/LegalNotices-AwardReqts.htm), and incorporated by reference into the award.
By signing and accepting this award on behalf of the recipient, the authorized recipient official accepts all material requirements of the award, and specifically adopts, as if personally executed by the authorized recipient official, all assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance.
Failure to comply with one or more award requirements -- whether a condition set out in full below, a condition incorporated by reference below, or an assurance or certification related to conduct during the award period -- may result in OJP taking appropriate action with respect to the recipient and the award. Among other things, the OJP may withhold award funds, disallow costs, or suspend or terminate the award. DOJ, including OJP, also may take other legal action as appropriate.
Page: 6 of 21
Any materially false, fictitious, or fraudulent statement to the federal government related to this award (or concealment or omission of a material fact) may be the subject of criminal prosecution (including under 18 U.S.C. 1001 and/or 1621, and/or 34 U.S.C. 10271-10273), and also may lead to imposition of civil penalties and administrative remedies for false claims or otherwise (including under 31 U.S.C. 3729-3730 and 3801-3812).
Should any provision of a requirement of this award be held to be invalid or unenforceable by its terms, that provision shall first be applied with a limited construction so as to give it the maximum effect permitted by law. Should it be held, instead, that the provision is utterly invalid or -unenforceable, such provision shall be deemed severable from this award.
4 Effect of failure to address audit issues
The recipient understands and agrees that the DOJ awarding agency (OJP or OVW, as appropriate) may withhold award funds, or may impose other related requirements, if (as determined by the DOJ awarding agency) the recipient does not satisfactorily and promptly address outstanding issues from audits required by the Part 200 Uniform Requirements (or by the terms of this award), or other outstanding issues that arise in connection with audits, investigations, or reviews of DOJ awards.
5 Applicability of Part 200 Uniform Requirements
The Uniform Administrative Requirements, Cost Principles, and Audit Requirements in 2 C.F.R. Part 200, as adopted and supplemented by DOJ in 2 C.F.R. Part 2800 (together, the "Part 200 Uniform Requirements") apply to this award from OJP.
For more information and resources on the Part 200 Uniform Requirements as they relate to OJP awards and subawards ("subgrants"), see the OJP website at https://ojp.gov/funding/Part200UniformRequirements.htm.
Record retention and access: Records pertinent to the award that the recipient (and any subrecipient ("subgrantee") at any tier) must retain -- typically for a period of 3 years from the date of submission of the final expenditure report (SF 425), unless a different retention period applies -- and to which the recipient (and any subrecipient ("subgrantee") at any tier) must provide access, include performance measurement information, in addition to the financial records, supporting documents, statistical records, and other pertinent records indicated at 2 C.F.R. 200.334.
In the event that an award-related question arises from documents or other materials prepared or distributed by OJP that may appear to conflict with, or differ in some way from, the provisions of the Part 200 Uniform Requirements, the recipient is to contact OJP promptly for clarification. 6 Reporting potential fraud, waste, and abuse, and similar misconduct The recipient, and any subrecipients ("subgrantees") at any tier, must promptly refer to the DOJ Office of the Inspector General (OIG) any credible evidence that a principal, employee, agent, subrecipient, contractor, subcontractor, or other person has, in connection with funds under this award-- (1) submitted a claim that violates the False Claims Act; or (2) committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct.
Potential fraud, waste, abuse, or misconduct involving or relating to funds under this award should be reported to the OIG by--(1) online submission accessible via the OIG webpage at https://oig.justice.gov/hotline/contact-grants.htm (select "Submit Report Online"); (2) mail directed to: U.S. Department of Justice, Office of the Inspector General, Investigations Division, ATTN: Grantee Reporting, 950 Pennsylvania Ave., NW, Washington, DC 20530; and/or (3) by facsimile directed to the DOJ OIG Investigations Division (Attn: Grantee Reporting) at (202) 616-9881 (fax).
Additional information is available from the DOJ OIG website at https://oig.justice.gov/hotline.
Page: 7 of 21
7 Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 38 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 38.
Among other things, 28 C.F.R. Part 38 includes rules that prohibit specific forms of discrimination on the basis of religion, a religious belief, a refusal to hold a religious belief, or refusal to attend or participate in a religious practice.
Part 38 also sets out rules and requirements that pertain to recipient and subrecipient ("subgrantee") organizations that engage in or conduct explicitly religious activities, as well as rules and requirements that pertain to recipients and subrecipients that are faith-based or religious organizations.
Recipients and subrecipients that provide social services under this award must give written notice to beneficiaries and prospective beneficiaries prior to the provision of services (if practicable) which shall include language substantially similar to the language in 28 CFR Part 38, Appendix C, sections (1) through (4). A sample written notice may be found at https://www.ojp.gov/program/civil-rights-office/partnerships-faith-based-and-other-neighborhood-organizations.
In certain instances, a faith-based or religious organization may be able to take religion into account when making hiring decisions, provided it satisfies certain requirements. For more information, please see https://www.ojp.gov/ funding/explore/legaloverview2024/civilrightsrequirements. 8 Requirements related to "de minimis" indirect cost rate A recipient that is eligible under the Part 200 Uniform Requirements and other applicable law to use the "de minimis" indirect cost rate described in 2 C.F.R. 200.414(f), and that elects to use the "de minimis" indirect cost rate, must advise OJP in writing of both its eligibility and its election, and must comply with all associated requirements in the Part 200 Uniform Requirements. The "de minimis" rate may be applied only to modified total direct costs (MTDC) as defined by the Part 200 Uniform Requirements.
9 Compliance with applicable rules regarding approval, planning, and reporting of conferences, meetings, trainings, and other events
The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable laws, regulations, policies, and official DOJ guidance (including specific cost limits, prior approval and reporting requirements, where applicable) governing the use of federal funds for expenses related to conferences (as that term is defined by DOJ), including the provision of food and/or beverages at such conferences, and costs of attendance at such conferences.
Information on the pertinent DOJ definition of conferences and the rules applicable to this award appears in the DOJ Grants Financial Guide (currently, as section 3.10 of "Postaward Requirements" in the "DOJ Grants Financial Guide"). 10 Requirement for data on performance and effectiveness under the award The recipient must collect and maintain data that measure the performance and effectiveness of work under this award. The data must be provided to OJP in the manner (including within the timeframes) specified by OJP in the program solicitation or other applicable written guidance. Data collection supports compliance with the Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010, and other applicable laws. 11 Compliance with DOJ Grants Financial Guide
References to the DOJ Grants Financial Guide are to the DOJ Grants Financial Guide as posted on the OJP website (currently, the "DOJ Grants Financial Guide" available at https://ojp.gov/financialguide/DOJ/index.htm), including any updated version that may be posted during the period of performance. The recipient agrees to comply with the DOJ Page: 8 of 21
Grants Financial Guide.
12 Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 42 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 42, specifically including any applicable requirements in Subpart E of 28 C.F.R. Part 42 that relate to an equal employment opportunity program.
Among other items, 28 C.F.R. § 42.106(d), 28 C.F.R. § 42.405(c), and 28 C.F.R. § 42.505(f) contain notice requirements that covered recipients must follow regarding the dissemination of information regarding federal nondiscrimination requirements.
13 Determination of suitability to interact with participating minors SCOPE. This condition applies to this award if it is indicated -- in the application for the award (as approved by DOJ)(or in the application for any subaward, at any tier), the DOJ funding announcement (solicitation), or an associated federal statute -- that a purpose of some or all of the activities to be carried out under the award (whether by the recipient, or a subrecipient at any tier) is to benefit a set of individuals under 18 years of age.
The recipient, and any subrecipient at any tier, must make determinations of suitability before certain individuals may interact with participating minors. This requirement applies regardless of an individual's employment status.
The details of this requirement are posted on the OJP web site at https://ojp.gov/funding/Explore/Interact-Minors.htm (Award condition: Determination of suitability required, in advance, for certain individuals who may interact with participating minors), and are incorporated by reference here. 14 Requirement to disclose whether recipient is designated "high risk" by a federal grant-making agency outside of DOJ If the recipient is designated "high risk" by a federal grant-making agency outside of DOJ, currently or at any time during the course of the period of performance under this award, the recipient must disclose that fact and certain related information to OJP by email at [email protected]. For purposes of this disclosure, high risk includes any status under which a federal awarding agency provides additional oversight due to the recipient's past performance, or other programmatic or financial concerns with the recipient. The recipient's disclosure must include the following: 1. The federal awarding agency that currently designates the recipient high risk, 2. The date the recipient was designated high risk, 3. The high-risk point of contact at that federal awarding agency (name, phone number, and email address), and 4. The reasons for the high-risk status, as set out by the federal awarding agency. 15 Employment eligibility verification for hiring under the award
1. The recipient (and any subrecipient at any tier) must-- A. Ensure that, as part of the hiring process for any position within the United States that is or will be funded (in whole or in part) with award funds, the recipient (or any subrecipient) properly verifies the employment eligibility of the individual who is being hired, consistent with the provisions of 8 U.S.C. 1324a(a)(1).
B. Notify all persons associated with the recipient (or any subrecipient) who are or will be involved in activities under this award of both--
(1) this award requirement for verification of employment eligibility, and (2) the associated provisions in 8 U.S.C. 1324a(a)(1) that, generally speaking, make it unlawful, in the United States, to hire (or recruit for employment) certain aliens.
Page: 9 of 21
C. Provide training (to the extent necessary) to those persons required by this condition to be notified of the award requirement for employment eligibility verification and of the associated provisions of 8 U.S.C. 1324a(a)(1).
D. As part of the recordkeeping for the award (including pursuant to the Part 200 Uniform Requirements), maintain records of all employment eligibility verifications pertinent to compliance with this award condition in accordance with Form I-9 record retention requirements, as well as records of all pertinent notifications and trainings.
2. Monitoring
The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition.
3. Allowable costs
To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions designed to ensure compliance with this condition.
4. Rules of construction
A. Staff involved in the hiring process
For purposes of this condition, persons "who are or will be involved in activities under this award" specifically includes (without limitation) any and all recipient (or any subrecipient) officials or other staff who are or will be involved in the hiring process with respect to a position that is or will be funded (in whole or in part) with award funds.
B. Employment eligibility confirmation with E-Verify
For purposes of satisfying the requirement of this condition regarding verification of employment eligibility, the recipient (or any subrecipient) may choose to participate in, and use, E-Verify (www.e-verify.gov), provided an appropriate person authorized to act on behalf of the recipient (or subrecipient) uses E-Verify (and follows the proper E-Verify procedures, including in the event of a "Tentative Nonconfirmation" or a "Final Nonconfirmation") to confirm employment eligibility for each hiring for a position in the United States that is or will be funded (in whole or in part) with award funds.
C. "United States" specifically includes the District of Columbia, Puerto Rico, Guam, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands.
D. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, or any person or other entity, to violate any federal law, including any applicable civil rights or nondiscrimination law.
E. Nothing in this condition, including in paragraph 4.B., shall be understood to relieve any recipient, any subrecipient at any tier, or any person or other entity, of any obligation otherwise imposed by law, including 8 U.S.C. 1324a(a)(1).
Questions about E-Verify should be directed to DHS. For more information about E-Verify visit the E-Verify website (https://www.e-verify.gov/) or email E-Verify at [email protected]. E-Verify employer agents can email E-Verify at E[email protected].
Questions about the meaning or scope of this condition should be directed to OJP, before award acceptance. 16 Encouragement of policies to ban text messaging while driving Pursuant to Executive Order 13513, "Federal Leadership on Reducing Text Messaging While Driving," 74 Fed. Reg. 51225 (October 1, 2009), DOJ encourages recipients and subrecipients ("subgrantees") to adopt and enforce policies banning employees from text messaging while driving any vehicle during the course of performing work funded by this award, and to establish workplace safety policies and conduct education, awareness, and other outreach to decrease crashes caused by distracted drivers.
17 Page: 10 of 21
Reclassification of various statutory provisions to a new Title 34 of the United States Code On September 1, 2017, various statutory provisions previously codified elsewhere in the U.S. Code were editorially reclassified (that is, moved and renumbered) to a new Title 34, entitled "Crime Control and Law Enforcement." The reclassification encompassed a number of statutory provisions pertinent to OJP awards (that is, OJP grants and cooperative agreements), including many provisions previously codified in Title 42 of the U.S. Code.
Effective as of September 1, 2017, any reference in this award document to a statutory provision that has been reclassified to the new Title 34 of the U.S. Code is to be read as a reference to that statutory provision as reclassified to Title 34. This rule of construction specifically includes references set out in award conditions, references set out in material incorporated by reference through award conditions, and references set out in other award requirements. 18 Restrictions and certifications regarding non-disclosure agreements and related matters No recipient or subrecipient ("subgrantee") under this award, or entity that receives a procurement contract or subcontract with any funds under this award, may require any employee or contractor to sign an internal confidentiality agreement or statement that prohibits or otherwise restricts, or purports to prohibit or restrict, the reporting (in accordance with law) of waste, fraud, or abuse to an investigative or law enforcement representative of a federal department or agency authorized to receive such information.
The foregoing is not intended, and shall not be understood by the agency making this award, to contravene requirements applicable to Standard Form 312 (which relates to classified information), Form 4414 (which relates to sensitive compartmented information), or any other form issued by a federal department or agency governing the nondisclosure of classified information.
1. In accepting this award, the recipient--
a. represents that it neither requires nor has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and b. certifies that, if it learns or is notified that it is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency.
2. If the recipient does or is authorized under this award to make subawards ("subgrants"), procurement contracts, or both--
a. it represents that--
(1) it has determined that no other entity that the recipient's application proposes may or will receive award funds (whether through a subaward ("subgrant"), procurement contract, or subcontract under a procurement contract) either requires or has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and
(2) it has made appropriate inquiry, or otherwise has an adequate factual basis, to support this representation; and b. it certifies that, if it learns or is notified that any subrecipient, contractor, or subcontractor entity that receives funds under this award is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds to or by that entity, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency.
19 Page: 11 of 21
OJP Training Guiding Principles
Any training or training materials that the recipient -- or any subrecipient ("subgrantee") at any tier -- develops or delivers with OJP award funds must adhere to the OJP Training Guiding Principles for Grantees and Subgrantees, available at https://www.ojp.gov/funding/implement/training-guiding-principles-grantees-and-subgrantees. 20 Specific post-award approval required to use a noncompetitive approach in any procurement contract that would exceed $250,000
The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements to obtain specific advance approval to use a noncompetitive approach in any procurement contract that would exceed the Simplified Acquisition Threshold (currently, $250,000). This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a procurement "contract" (and therefore does not consider a subaward).
The details of the requirement for advance approval to use a noncompetitive approach in a procurement contract under an OJP award are posted on the OJP web site at https://ojp.gov/funding/Explore/NoncompetitiveProcurement.htm (Award condition: Specific post-award approval required to use a noncompetitive approach in a procurement contract (if contract would exceed $250,000)), and are incorporated by reference here. 21 Requirement to report potentially duplicative funding If the recipient currently has other active awards of federal funds, or if the recipient receives any other award of federal funds during the period of performance for this award, the recipient promptly must determine whether funds from any of those other federal awards have been, are being, or are to be used (in whole or in part) for one or more of the identical cost items for which funds are provided under this award. If so, the recipient must promptly notify the DOJ awarding agency (OJP or OVW, as appropriate) in writing of the potential duplication, and, if so requested by the DOJ awarding agency, must seek a budget-modification or change-of-project-scope Grant Award Modification (GAM) to eliminate any inappropriate duplication of funding.
22 Required training for Grant Award Administrator and Financial Manager The Grant Award Administrator and all Financial Managers for this award must have successfully completed an "OJP financial management and grant administration training" by 120 days after the date of the recipient's acceptance of the award. Successful completion of such a training on or after January 1, 2021, will satisfy this condition.
In the event that either the Grant Award Administrator or a Financial Manager for this award changes during the period of performance, the new Grant Award Administrator or Financial Manager must have successfully completed an "OJP financial management and grant administration training" by 120 calendar days after the date the Entity Administrator enters updated Grant Award Administrator or Financial Manager information in JustGrants. Successful completion of such a training on or after January 1, 2021, will satisfy this condition.
A list of OJP trainings that OJP will consider "OJP financial management and grant administration training" for purposes of this condition is available at https://onlinegfmt.training.ojp.gov/. All trainings that satisfy this condition include a session on grant fraud prevention and detection.
The recipient should anticipate that OJP will immediately withhold ("freeze") award funds if the recipient fails to comply with this condition. The recipient's failure to comply also may lead OJP to impose additional appropriate conditions on this award.
23 Compliance with 41 U.S.C. 4712 (including prohibitions on reprisal; notice to employees) Page: 12 of 21
The recipient (and any subrecipient at any tier) must comply with, and is subject to, all applicable provisions of 41 U.S.C. 4712, including all applicable provisions that prohibit, under specified circumstances, discrimination against an employee as reprisal for the employee's disclosure of information related to gross mismanagement of a federal grant, a gross waste of federal funds, an abuse of authority relating to a federal grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal grant.
The recipient also must inform its employees, in writing (and in the predominant native language of the workforce), of employee rights and remedies under 41 U.S.C. 4712.
Should a question arise as to the applicability of the provisions of 41 U.S.C. 4712 to this award, the recipient is to contact the DOJ awarding agency (OJP or OVW, as appropriate) for guidance. 24 Requirements pertaining to prohibited conduct related to trafficking in persons (including reporting requirements and OJP authority to terminate award)
The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements (including requirements to report allegations) pertaining to prohibited conduct related to the trafficking of persons, whether on the part of recipients, subrecipients ("subgrantees"), or individuals defined (for purposes of this condition) as "employees" of the recipient or of any subrecipient.
The details of the recipient's obligations related to prohibited conduct related to trafficking in persons are posted on the OJP web site at https://ojp.gov/funding/Explore/ProhibitedConduct-Trafficking.htm (Award condition: Prohibited conduct by recipients and subrecipients related to trafficking in persons (including reporting requirements and OJP authority to terminate award)), and are incorporated by reference here. 25 Potential imposition of additional requirements
The recipient agrees to comply with any additional requirements that may be imposed by the DOJ awarding agency (OJP or OVW, as appropriate) during the period of performance for this award, if the recipient is designated as "highrisk" for purposes of the DOJ high-risk grantee list. 26 Requirement to report actual or imminent breach of personally identifiable information (PII) The recipient (and any "subrecipient" at any tier) must have written procedures in place to respond in the event of an actual or imminent "breach" (OMB M-17-12) if it (or a subrecipient) -- (1) creates, collects, uses, processes, stores, maintains, disseminates, discloses, or disposes of "Personally Identifiable Information (PII)" (2 CFR 200.1) within the scope of an OJP grant-funded program or activity, or (2) uses or operates a "Federal information system" (OMB Circular A-130). The recipient's breach procedures must include a requirement to report actual or imminent breach of PII to an OJP Program Manager no later than 24 hours after an occurrence of an actual breach, or the detection of an imminent breach.
27 Requirements related to System for Award Management and Universal Identifier Requirements The recipient must comply with applicable requirements regarding the System for Award Management (SAM), currently accessible at https://www.sam.gov/. This includes applicable requirements regarding registration with SAM, as well as maintaining the currency of information in SAM.
The recipient also must comply with applicable restrictions on subawards ("subgrants") to first-tier subrecipients (firsttier "subgrantees"), including restrictions on subawards to entities that do not acquire and provide (to the recipient) the unique entity identifier required for SAM registration.
The details of the recipient's obligations related to SAM and to unique entity identifiers are posted on the OJP web site at https://ojp.gov/funding/Explore/SAM.htm (Award condition: System for Award Management (SAM) and Universal Page: 13 of 21
Identifier Requirements), and are incorporated by reference here.
This condition does not apply to an award to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 28 Compliance with restrictions on the use of federal funds--prohibited and controlled equipment under OJP awards Consistent with Executive Order 14074, “Advancing Effective, Accountable Policing and Criminal Justice Practices To Enhance Public Trust and Public Safety,” OJP has prohibited the use of federal funds under this award for purchases or transfers of specified equipment by law enforcement agencies. In addition, OJP requires the recipient, and any subrecipient (“subgrantee”) at any tier, to put in place specified controls prior to using federal funds under this award to acquire or transfer any property identified on the “controlled equipment” list. The details of the requirement are posted on the OJP web site at https://www.ojp.gov/funding/explore/prohibited-and-controlled-equipment (Award condition:
Compliance with restrictions on the use of federal funds--prohibited and controlled equipment under OJP awards), and are incorporated by reference here.
29 Restrictions on "lobbying"
In general, as a matter of federal law, federal funds awarded by OJP may not be used by the recipient, or any subrecipient ("subgrantee") at any tier, either directly or indirectly, to support or oppose the enactment, repeal, modification, or adoption of any law, regulation, or policy, at any level of government. See 18 U.S.C. 1913. (There may be exceptions if an applicable federal statute specifically authorizes certain activities that otherwise would be barred by law.)
Another federal law generally prohibits federal funds awarded by OJP from being used by the recipient, or any subrecipient at any tier, to pay any person to influence (or attempt to influence) a federal agency, a Member of Congress, or Congress (or an official or employee of any of them) with respect to the awarding of a federal grant or cooperative agreement, subgrant, contract, subcontract, or loan, or with respect to actions such as renewing, extending, or modifying any such award. See 31 U.S.C. 1352. Certain exceptions to this law apply, including an exception that applies to Indian tribes and tribal organizations.
Should any question arise as to whether a particular use of federal funds by a recipient (or subrecipient) would or might fall within the scope of these prohibitions, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP.
30 All subawards ("subgrants") must have specific federal authorization The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements for authorization of any subaward. This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a "subaward" (and therefore does not consider a procurement "contract").
The details of the requirement for authorization of any subaward are posted on the OJP web site at https://ojp.gov/ funding/Explore/SubawardAuthorization.htm (Award condition: All subawards ("subgrants") must have specific federal authorization), and are incorporated by reference here. 31 Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 54 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 54, which relates to nondiscrimination on the basis of sex in certain "education programs." Among other items, 28 C.F.R. § 54.140 contains notice requirements that covered recipients must follow regarding the dissemination of information regarding federal nondiscrimination requirements.
Page: 14 of 21
32 The recipient understands that, in accepting this award, the Authorized Representative declares and certifies, among other things, that he or she possesses the requisite legal authority to accept the award on behalf of the recipient entity and, in so doing, accepts (or adopts) all material requirements that relate to conduct throughout the period of performance under this award. The recipient further understands, and agrees, that it will not assign anyone to the role of Authorized Representative during the period of performance under the award without first ensuring that the individual has the requisite legal authority.
33 Verification and updating of recipient contact information The recipient must verify its Grant Award Administrator, Financial Manager, and Authorized Representative contact information in JustGrants, including telephone number and e-mail address. If any information is incorrect or has changed, the award recipient’s Entity Administrator must make changes to contact information through DIAMD.
Instructions on how to update contact information in JustGrants can be found at https://justicegrants.usdoj.gov/training/ training-entity-management.
34 FFATA reporting: Subawards and executive compensation The recipient must comply with applicable requirements to report first-tier subawards ("subgrants") of $30,000 or more and, in certain circumstances, to report the names and total compensation of the five most highly compensated executives of the recipient and first-tier subrecipients (first-tier "subgrantees") of award funds. The details of recipient obligations, which derive from the Federal Funding Accountability and Transparency Act of 2006 (FFATA), are posted on the OJP web site at https://ojp.gov/funding/Explore/FFATA.htm (Award condition: Reporting Subawards and Executive Compensation), and are incorporated by reference here.
This condition, including its reporting requirement, does not apply to-- (1) an award of less than $30,000, or (2) an award made to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 35 Body-worn cameras, policies and procedures
In accepting this award, the recipient agrees not to use award funds for purchases of body-worn cameras or related expenses for any agency unless that agency has policies and procedures in place that reinforce appropriate agency Use of Force policies and training and address technology usage, evidence acquisition, data storage and retention, as well as privacy issues, accountability and discipline.
36 Body armor - compliance with NIJ standards and other requirements Ballistic-resistant and stab-resistant body armor purchased with award funds may be purchased at any threat level, make or model, from any distributor or manufacturer, as long as the body armor has been tested and found to comply with applicable National Institute of Justice ballistic or stab standards, and is listed on the NIJ Compliant Body Armor Model List. In addition, ballistic-resistant and stab-resistant body armor purchased must be made in the United States and must be uniquely fitted, as set forth in 34 U.S.C. 10202(c)(1)(A). The latest NIJ standard information and the NIJ Compliant Body Armor List may be found by following the links located on the NIJ Body Armor page: https://nij.ojp.gov/ topics/equipment-and-technology/body-armor. In addition, if recipient uses funds under this award to purchase body armor, the recipient is strongly encouraged to have a "mandatory wear" policy in effect. There are no requirements regarding the nature of the policy other than it be a mandatory wear policy for all uniformed officers while on duty. 37 The recipient agrees to comply with OJP grant monitoring guidelines, protocols, and procedures, and to cooperate with Page: 15 of 21
BJA and OCFO on all grant monitoring requests, including requests related to desk reviews, enhanced programmatic desk reviews, and/or site visits. The recipient agrees to provide to BJA and OCFO all documentation necessary to complete monitoring tasks, including documentation related to any subawards made under this award. Further, the recipient agrees to abide by reasonable deadlines set by BJA and OCFO for providing the requested documents.
Failure to cooperate with BJA's/OCFO's grant monitoring activities may result in sanctions affecting the recipient's DOJ awards, including, but not limited to: withholdings and/or other restrictions on the recipient's access to grant funds; referral to the Office of the Inspector General for audit review; designation of the recipient as a DOJ High Risk grantee; or termination of an award(s).
38 Any written, visual, or audio publications funded in whole or in part under this award, with the exception of press releases, shall contain the following statements: "This project was supported by Grant No. <AWARD_NUMBER> awarded by the Bureau of Justice Assistance. The Bureau of Justice Assistance is a component of the Department of Justice's Office of Justice Programs, which also includes the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime, and the SMART Office. Points of view or opinions in this document are those of the author and do not necessarily represent the official position or policies of the U.S. Department of Justice." The current edition of the DOJ Grants Financial Guide provides guidance on allowable printing and publication activities. 39 Any Web site that is funded in whole or in part under this award must include the following statement on the home page, on all major entry pages (i.e., pages (exclusive of documents) whose primary purpose is to navigate the user to interior content), and on any pages from which a visitor may access or use a Web-based service, including any pages that provide results or outputs from the service: "This Web site is funded in whole or in part through a grant from the Bureau of Justice Assistance, Office of Justice Programs, U.S. Department of Justice. Neither the U.S. Department of Justice nor any of its components operate, control, are responsible for, or necessarily endorse, this Web site (including, without limitation, its content, technical infrastructure, and policies, and any services or tools provided)." The full text of the foregoing statement must be clearly visible on the home page. On other pages, the statement may be included through a link, entitled "Notice of Federal Funding and Federal Disclaimer," to the full text of the statement. 40 Confidentiality of data
The recipient (and any subrecipient at any tier) must comply with all confidentiality requirements of 34 U.S.C. 10231 and 28 C.F.R. Part 22 that are applicable to collection, use, and revelation of data or information. The recipient further agrees, as a condition of award approval, to submit a Privacy Certificate that is in accord with requirements of 28 C.F.R. Part 22 and, in particular, 28 C.F.R. 22.23.
41 The recipient agrees to cooperate with any assessments, national evaluation efforts, or information or data collection requests, including, but not limited to, the provision of any information required for the assessment or evaluation of any activities within this project.
42 Protection of human research subjects
The recipient (and any subrecipient at any tier) must comply with the requirements of 28 C.F.R. Part 46 and all OJP policies and procedures regarding the protection of human research subjects, including obtainment of Institutional Review Board approval, if appropriate, and subject informed consent. 43 Justification of consultant rate
Approval of this award does not indicate approval of any consultant rate in excess of $650 per day. A detailed justification must be submitted to and approved by the OJP program office prior to obligation or expenditure of such Page: 16 of 21
funds.
44 The recipient agrees that no funds under this grant award (including via subcontract or subaward, at any tier) may be used for unmanned aircraft systems (UAS), which includes unmanned aircraft vehicles (UAV), or for any accompanying accessories to support UAS.
45 Compliance with 28 C.F.R. Part 23
With respect to any information technology system funded or supported by funds under this award, the recipient (and any subrecipient at any tier) must comply with 28 C.F.R. Part 23, Criminal Intelligence Systems Operating Policies, if OJP determines this regulation to be applicable. Should OJP determine 28 C.F.R. Part 23 to be applicable, OJP may, at its discretion, perform audits of the system, as per the regulation. Should any violation of 28 C.F.R. Part 23 occur, the recipient may be fined as per 34 U.S.C. 10231(c)-(d). The recipient may not satisfy such a fine with federal funds. 46 Justice Information Sharing
Information sharing projects funded under this award must comply with DOJ's Global Justice Information Sharing Initiative (Global) guidelines. The recipient (and any subrecipient at any tier) must conform to the Global Standards Package (GSP) and all constituent elements, where applicable, as described at: https:/ / it.ojp.gov/ gsp_grantcondition.
The recipient (and any subrecipient at any tier) must document planned approaches to information sharing and describe compliance with the GSP and appropriate privacy policy that protects shared information, or provide detailed justification for why an alternative approach is recommended. 47 In accepting this award, the recipient agrees that grant funds cannot be used for Facial Recognition Technology (FRT) unless the recipient has policies and procedures in place to ensure that the FRT will be utilized in an appropriate and responsible manner that promotes public safety, and protects privacy, civil rights, and civil liberties and complies with all applicable provisions of the U.S. Constitution, including the Fourth Amendment’s protection against unreasonable searches and seizures and the First Amendment’s freedom of association and speech, as well as other laws and regulations. Recipients utilizing funds for FRT must make such policies and procedures available to DOJ upon request. 48 The recipient agrees that it will submit quarterly financial status reports (the SF 425 Federal Financial Report) to OJP in JustGrants, no later than the deadlines set out in the DOJ Financial Guide and the JustGrants guidance (typically 30 days after the end of each calendar quarter). Delinquent reports may lead to funds being frozen and other remedies. 49 The recipient shall submit semiannual performance reports. Performance reports shall be submitted within 30 days after the end of the reporting periods, which are June 30 and December 31, for the life of the award. These reports will be submitted to the Office of Justice Programs, on-line through the Internet at https://justgrants.usdoj.gov 50 As of the first day of the period of performance for the award, the recipient may choose to incur project costs using non-federal funds, but any such project costs are incurred at the recipient's risk until, at a minimum, all applicable withholding conditions are removed by OJP (via an Award Condition Modification (ACM)).
Except to the extent (if any) that an award condition expressly precludes reimbursement of project costs incurred "atrisk," if and when the recipient makes a valid acceptance of this award and OJP removes each applicable withholding condition through an Award Condition Modification (ACM), the recipient is authorized to reimburse itself for project costs incurred "at-risk" earlier during the period of performance (such as project costs incurred prior to award acceptance or prior to removal of an applicable withholding condition), provided that those project costs otherwise are allowable costs under the award.
Page: 17 of 21
51 Limit on use of grant funds for grantees' employees' salaries With respect to this award, federal funds may not be used to pay cash compensation (salary plus bonuses) to any employee of the award recipient at a rate that exceeds 110% of the maximum annual salary payable to a member of the federal government's Senior Executive Service (SES) at an agency with a Certified SES Performance Appraisal System for that year. (An award recipient may compensate an employee at a higher rate, provided the amount in excess of this compensation limitation is paid with non-federal funds.) This limitation on compensation rates allowable under this award may be waived on an individual basis at the discretion of the OJP official indicated in the program announcement under which this award is made. 52 Recipient integrity and performance matters: Requirement to report information on certain civil, criminal, and administrative proceedings to SAM and FAPIIS
The recipient must comply with any and all applicable requirements regarding reporting of information on civil, criminal, and administrative proceedings connected with (or connected to the performance of) either this OJP award or any other grant, cooperative agreement, or procurement contract from the federal government. Under certain circumstances, recipients of OJP awards are required to report information about such proceedings, through the federal System for Award Management (known as "SAM"), to the designated federal integrity and performance system (currently, "FAPIIS").
The details of recipient obligations regarding the required reporting (and updating) of information on certain civil, criminal, and administrative proceedings to the federal designated integrity and performance system (currently, "FAPIIS") within SAM are posted on the OJP web site at https://ojp.gov/funding/FAPIIS.htm (Award condition:
Recipient Integrity and Performance Matters, including Recipient Reporting to FAPIIS), and are incorporated by reference here.
53 The recipient's budget (and budget narrative) is pending clearance by OJP.
Prior to budget clearance (and unless there is a more restrictive condition on this award, in which case the terms of that more restrictive condition apply): The recipient may not drawdown more than 10% of the award. Pre-clearance obligations, expenditures, and drawdowns may be disallowed if not in compliance with program requirements.
The recipient should be judicious in using award funds prior to budget clearance. Generally, OJP expects that recipients (depending on the specific project scope) may need to advertise for award-funded positions, pay personnel and fringe benefits for positions budgeted under the award, plan for project activities, attend training and pay trainingrelated travel needed to begin the project, and engage in other limited activities conducted by recipient staff (i.e., generally not requiring a subaward or procurement contract under an award).
OJP will issue an Award Condition Modification upon budget clearance. 54 The recipient agrees to comply with all Federal, State, and local environmental laws and regulations applicable to the development and implementation of the activities to be funded under this award.
Environmental Assessment (EA): The recipient agrees and understands that funded activities (whether conducted by the recipient or subrecipients or contractors) may require the preparation of an EA as defined by the Council on Environmental Quality's Regulations for implementing the Procedural Provisions of the National Environmental Policy Act (NEPA), found at 40 CFR Part 1500. An EA is a concise public document that briefly provides sufficient analysis for determining whether to prepare an environmental impact statement (EIS) or a finding of no significant impact for the proposed activity. If in completing an EA for a proposed activity, potential adverse environmental impacts are identified, the EA will serve as a vehicle for developing either alternative approaches or mitigation measures for avoiding or reducing the identified adverse environmental impacts.
Page: 18 of 21
Modifications: Throughout the term of this award, the recipient agrees that for any activity that is the subject of a completed EA, it will inform BJA of-- (1) any change(s) that it is considering making to the previously assessed activity that may be relevant to environmental impact; or (2) any proposed new activities or changed circumstances that may require assessment as to environmental impact, such as new activities that involve the use of chemicals or involve construction or major renovation. The recipient will not implement a proposed change or new activity until BJA, with the assistance of the recipient, has determined whether the proposed change or activity (or changed circumstances) will require additional review under NEPA. Approval for implementation will not be unreasonably withheld as long as any requested modification(s) is consistent with eligible program purposes and found acceptable under a BJA-conducted environmental impact review process.
55 The recipient is authorized to incur obligations, expend, and draw down funds in an amount not to exceed 25% of the total amount of the award. None of these funds may be used to acquire chemicals, or implement a project involving the use of chemicals such as testing of evidence, or implement a major renovation or construction project, while this condition remains on the award. The recipient is not authorized to incur any additional obligations, or make any additional expenditures or drawdowns until the program office has verified that the recipient has submitted all necessary documentation required to comply with Department of Justice Environmental Impact Review Procedures found at 28 CFR Part 61, Appendix D, OJP has reviewed and approved the documentation, and an Award Condition Modification (ACM) has been issued removing this condition. [ ]
I have read and understand the information presented in this section of the Federal Award Instrument.
Award Acceptance
Declaration and Certification to the U.S. Department of Justice as to Acceptance By checking the declaration and certification box below, I-- A. Declare to the U.S. Department of Justice (DOJ), under penalty of perjury, that I have authority to make this declaration and certification on behalf of the applicant.
B. Certify to DOJ, under penalty of perjury, on behalf of myself and the applicant, to the best of my knowledge and belief, that the following are true as of the date of this award acceptance: (1) I have conducted or there was conducted (including by applicant’s legal counsel as appropriate and made available to me) a diligent review of all terms and conditions of, and all supporting materials submitted in connection with, this award, including any assurances and certifications (including anything submitted in connection therewith by a person on behalf of the applicant before, after, or at the time of the application submission and any materials that accompany this acceptance and certification); and (2) I have the legal authority to accept this award on behalf of the applicant.
C. Accept this award on behalf of the applicant.
D. Declare the following to DOJ, under penalty of perjury, on behalf of myself and the applicant: (1) I understand that, in taking (or not taking) any action pursuant to this declaration and certification, DOJ will rely upon this declaration and certification as a material representation; and (2) I understand that any materially false, fictitious, or fraudulent information or statement in this declaration and certification (or concealment or omission of a material fact as to either) may be the subject of criminal prosecution (including under 18 U.S.C. §§ 1001 and/or 1621, and/or 34 U.S.C. §§ 10271-10273), and also may subject me and the applicant to civil penalties and administrative remedies under the federal False Claims Act (including under 31 U.S.C. §§ 3729-3730 and/or §§ 3801-3812) or otherwise.
Agency Approval
Title of Approving Official
Acting Assistant Attorney General
Name of Approving Official
Brent J. Cohen
Signed Date And Time
8/9/24 9:06 PM
Page: 19 of 21
Authorized Representative
Entity Acceptance
Title of Authorized Entity Official
Chief of Police
Signed Date And Time
––
Page: 20 of 21
Page: 21 of 21
Agenda Item No. 8
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 15, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Director of Administrative Services SUBJECT: Approve Contract with HDL, Inc. for Cannabis Auditing Services
RECOMMENDATION
Approve an agreement with HDL, Inc. for cannabis auditing services for a term of three years with two, one-year extensions and authorize the City Manager to execute the agreement on behalf of the City.
BACKGROUND
The City issued a request for proposals (RFP) for cannabis auditing services which includes annual business audits, compliance inspections, and optional technical assistance services to qualified firms in July 2024. The role of the cannabis auditor is twofold:
• Audit business activities for cannabis license holders and ensure all revenues have been paid to the City or any refund overpayments of tax back to license holder; • Compliance inspections to ensure the business, based on type of cannabis activity, are following City’s ordinance relative to health, safety, and tax regulations.
The City received 9 proposals from the firms listed below:
• HDL, Inc. (current audit firm)
• Kanha, Inc.
• Avenu Insights
• Canna Business Services
• BMC
• Davis Farr
• Global G
• Tulip Oak
• SCI Consulting Group.
The City setup a review team comprised of the three primary departments involved in cannabis regulation (Administrative Services, Community Development, and Police). The team rated the proposals and selected HDL, Inc. for award of a new contract for a base term of three years with two, one-year extensions available upon mutual consent.
The review team determined HDL had the highest scores across all rating factors which included:
• Understanding of Scope of Work (25%)
• Approach and Methodology (25%)
• Experience and Expertise (35%)
• References (5%)
• Completeness (10%).
Staff Report: Cannabis Auditor Contract Page 2
October 15, 2024
Attachment 1 shows the proposed agreement ready for execution pending Council’s approval.
FISCAL IMPACT
The cost of the agreement is $400,000 over the three-year base term. However, there will be minimal fiscal impact to the City as all costs for auditing and inspections are passed onto the businesses. Although unlikely, there could be some hourly costs related to technical assistance for work done on an as needed basis.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve an agreement with HDL, Inc. for cannabis auditing services for a term of three years with two, one-year extensions and authorize the City Manager to execute the agreement on behalf of the City;
2. Do not approve agreement; or
3. Provide alternate direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Agreement
AGREEMENT
WITH HINDERLITER, DE LLAMAS & ASSOCIATES
FOR AUDITING SERVICES
This Agreement for auditing services (“Agreement”) is made and entered into effective the 15th day of October 2024, ("Effective Date”) by and between the CITY OF GROVER BEACH, a California municipal corporation (hereinafter referred to as “CITY”) and Hinderliter de Llamas & Associates. (hereinafter referred to as “CONSULTANT”).
RECITALS
WHEREAS, CITY desires to obtain Cannabis Auditing and Inspection Services, hereinafter referred to as the “Project”; and
WHEREAS, CONSULTANT is engaged in the business of furnishing technical and expert services and hereby represents that it desires to, and is professionally and legally capable of, performing the services called for by the Agreement; and WHEREAS, CONSULTANT acknowledges that this Agreement is subject to the requirements of the City of Grover Beach; and
WHEREAS, this Agreement will be administered for CITY by its City Manager (hereinafter referred to as “Administrator”) or his/her designee.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the covenants, conditions and premises hereinafter contained to be kept and performed by the respective parties, it is mutually agreed as follows:
1. Scope of Services. CONSULTANT shall perform to the satisfaction of CITY the services described in Exhibit A, including all work incidental to, or necessary to perform, such services even though not specifically described in Exhibit A.
2. Term of Agreement and Time for Performance. This Agreement shall be effective from the date first set forth above (“Effective Date”) and shall continue in full force and effect for a term of three (3) years from the Effective Date (“Initial Term”), unless earlier terminated in accordance with this Agreement. Upon expiration of the Initial Term, CITY AND CONSULTANT, upon mutual agreement, shall have the option to extend this Agreement for up to two (2) additional one-year periods (each, an “Extension Term”), exercisable by written notice of each party at least thirty (30) days prior to the expiration of the then-current term.
The services of CONSULTANT as described in Exhibit A are to commence upon the Effective Date and shall be completed in a sequence assuring expeditious completion, but in any event, all such services shall be completed prior to expiration of this Agreement (including any Extension Term) and in accordance with any performance schedule set for in Exhibit A.
3. Compensation.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE Attachment 1 a. CONSULTANT’S sole compensation for satisfactory performance of all services required or rendered pursuant to this Agreement shall be as follows:
For the Initial Term of three (3) years, CONSULTANT shall be paid a total fee of four hundred thousand dollars ($400,000.00). For the first one-year Extension Term, if mutually exercised by the CITY and CONSULTANT, CONSULTANT shall be paid a fee of one hundred thirty-three thousand dollars ($133,000.00). For the second one-year Extension Term, if mutually exercised by the CITY and CONSULTANT, CONSULTANT shall be paid an additional fee of one hundred thirty-three thousand dollars ($133,000.00).
Payment schedule and terms shall be as defined in Exhibit A. The fees specified herein constitute the total compensation for all services, including any additional site visits, and CONSULTANT shall not be entitled to any further compensation unless agreed upon in writing by both parties through a formal amendment to this Agreement.
b. Detailed statements shall be available monthly for services performed in the preceding month and will be payable in the normal course of CITY business.
CITY shall not be obligated to reimburse any expenses for which it has not received a detailed invoice with applicable copies of representative and identifiable receipts or records substantiating such expense. c. The parties may modify this Agreement to increase or decrease the scope of services or provide for the rendition of services not required by this Agreement, which modification shall include an adjustment to CONSULTANTS compensation. Any change in the scope of services must be made by written amendment to the Agreement signed by an authorized representative for each party. CONSULTANT shall not be entitled to any additional compensation if services are performed prior to a signed written amendment.
4. Termination, Remedies and Force Majeure.
a. This Agreement shall terminate without any liability of CITY to CONSULTANT upon the earlier of: (i) CONSULTANT’S filing for protection under the federal bankruptcy laws, or any bankruptcy petition or petition for receiver commenced by a third party against CONSULTANT; (ii) 30 calendar days prior written notice with or without cause by CITY to CONSULTANT; (iii) one hundred eighty (180) calendar days prior written notice with or without cause by CONSULTANT to CITY; (iv) CITY’S non- appropriation of funds sufficient to meet its obligations hereunder during any CITY fiscal year of this Agreement, or insufficient funding for the Project; or (v) expiration of this Agreement.
b. Immediately upon any termination or expiration of this Agreement, CONSULTANT shall (i) immediately stop all work hereunder; (ii) immediately cause any and all of its subcontractors to cease work; and (iii) return to CITY any and all unearned payments and all properties and materials in the possession of CONSULTANT that are owned by CITY. Subject to the terms of this Agreement, CONSULTANT shall be paid compensation for services Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE satisfactorily performed prior to the effective date of termination.
CONSULTANT shall not be paid for any work or services performed or costs incurred which reasonably could have been avoided.
c. In the event of termination due to failure of CONSULTANT to satisfactorily perform in accordance with the terms of this Agreement, CITY may withhold an amount that would otherwise be payable as an offset to, but not in excess of, CITY’S damages caused by such failure. In no event shall any payment by CITY pursuant to this Agreement constitute a waiver by CITY of any breach of this Agreement which may then exist on the part of CONSULTANT, nor shall such payment impair or prejudice any remedy available to CITY with respect to the breach.
d. Upon any breach of this Agreement by CONSULTANT, CITY may (i) exercise any right, remedy (in contract, law or equity), or privilege which may be available to it under applicable laws of the State of California or any other applicable law; (ii) proceed by appropriate court action to enforce the terms of the Agreement; and/or (iii) recover all direct, indirect, consequential, economic and incidental damages for the breach of the Agreement. If it is determined that CITY improperly terminated this Agreement for default, such termination shall be deemed a termination for convenience. CITY will remain liable for payment for services rendered by CONSULTANT to the date of termination. e. CONSULTANT shall provide CITY with adequate written assurances of future performance, upon Administrator’s request, in the event CONSULTANT fails to comply with any terms or conditions of this Agreement. f. CONSULTANT shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of CONSULTANT and without its fault or negligence such as, acts of GOD or public enemy, acts of CITY in its contractual capacity, fire, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. CONSULTANT shall notify Administrator in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, and shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to Administrator of the cessation of such occurrence.
5. Confidential Information and Ownership of Documents. a. Any reports, information, or other data prepared or assembled by CONSULTANT pursuant to this Agreement shall not be made available to any individual or organization by CONSULTANT without the prior written approval of the Administrator. During the term of this Agreement, and thereafter, CONSULTANT shall not, without the prior written consent of CITY, disclose to anyone Confidential Information. The term Confidential Information for the purposes of this Agreement shall include all proprietary and confidential information of CITY, including but not limited to business plans, marketing plans, financial information, materials, compilations, documents, instruments, models, source or object codes and other information disclosed or submitted, orally, in writing, or by any other medium or media. All Confidential Information Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE shall be and remain confidential and proprietary in CITY. b. Any and all writings and documents prepared or provided by CONSULTANT pursuant to this Agreement are the property of CITY at the time of preparation and shall be turned over to CITY upon expiration or termination of the Agreement. CONSULTANT shall not permit the reproduction or use thereof by any other person except as other expressly provided herein. c. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Section 5. d. This Section 5 shall survive expiration or termination of this Agreement.
6. Professional Skill. It is further mutually understood and agreed by and between the parties hereto that inasmuch as CONSULTANT represents to CITY that CONSULTANT and its subcontractors, if any, are appropriately and currently licensed and skilled in the profession and shall perform in accordance with the standards of said profession necessary to perform the services agreed to be done by it under this Agreement, CITY relies upon the skill of CONSULTANT and any subcontractors to do and perform such services in a skillful manner and CONSULTANT agrees to thus perform the services and require the same of any subcontractors. Therefore, any acceptance of such services by CITY shall not operate as a release of CONSULTANT or any subcontractors from said professional standards.
7. Indemnification. To the furthest extent allowed by law, CONSULTANT shall indemnify, hold harmless and defend CITY and each of its officers, officials, attorneys, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage), and from any and all claims, demands and actions in law or equity (including reasonable attorney’s fees and litigation expenses) that arise out of, pertain to, or relate to the negligence, recklessness or willful misconduct of CONSULTANT, its principals, officers, employees, agents or volunteers in performance of this Agreement. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor to indemnify, hold harmless and defend CITY and each of its officers, officials, attorneys, employees, agents and volunteers in accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
8. Insurance. Throughout the life of this Agreement, CONSULTANT shall pay for and maintain in full force and effect all insurance as required in Exhibit B or as may be authorized in writing by CITY’S Risk Manager or his/her designee at any time and in his/her sole discretion.
a. If at any time during the life of the Agreement or any extension, CONSULTANT or any of its subcontractors fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discontinued Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE immediately, and all payments due or that become due to CONSULTANT shall be withheld until notice is received by CITY that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. Any failure to maintain the required insurance shall be sufficient cause for CITY to terminate this Agreement. No action taken by CITY pursuant to this section shall in any way relieve CONSULTANT of its responsibilities under this Agreement. The phrase “fail to maintain any required insurance” shall include, without limitation, notification received by CITY that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent.
b. The fact that insurance obtained by CONSULTANT shall not be deemed to release or diminish the liability of CONSULTANT, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify CITY shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONSULTANT.
Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of CONSULTANT, its principals, officers, agents, employees, persons under the supervision of CONSULTANT, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them. c. Upon request of CITY, CONSULTANT shall immediately furnish CITY with a complete copy of any insurance policy required under this Agreement, including all endorsements, with said copy certified by the underwriter to be a true and correct copy of the original policy. This requirement shall survive expiration or termination of this Agreement.
d. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall require each subcontractor to provide insurance protection in favor of CITY and each of its officers, officials, employees, agents and volunteers in accordance with the terms of this section, except that any required certificates and applicable endorsements shall be on file with CONSULTANT and CITY prior to the commencement of any services by the subcontractor.
9. Conflict of Interest and Non-Solicitation.
a. Prior to CITY’S execution of this Agreement, CONSULTANT shall complete a City of Grover Beach conflict of interest disclosure statement in the form as set forth in Exhibit C. During the term of this Agreement, CONSULTANT shall have the obligation and duty to immediately notify CITY in writing of any change to the information provided by CONSULTANT in such statement. b. CONSULTANT shall comply, and require its subcontractors to comply, with all applicable (i) professional canons and requirements governing avoidance of impermissible client conflicts; and (ii) federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code Section 1090 et. seq., the California Political Reform Act Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE (California Government Code Section 87100 et. seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations Section 18700 et. seq.). At any time, upon written request of CITY, CONSULTANT shall provide a written opinion of its legal counsel and that of any subcontractor that, after a due diligent inquiry, CONSULTANT and the respective subcontractor(s) are in full compliance with all laws and regulations. CONSULTANT shall take, and require its subcontractors to take, reasonable steps to avoid any appearance of a conflict of interest. Upon discovery of any facts giving rise to the appearance of conflict of interest, CONSULTANT shall immediately notify CITY of these facts in writing.
c. In performing the work or service to be provided hereunder, CONSULTANT shall not employ or retain the services of any person which such person either is employed by CITY or is a member of any CITY council, commission, board, committee, or similar CITY body. This requirement may be waived in writing by the City Manager, if no actual or potential conflict is involved. d. CONSULTANT represents and warrants that it has not paid or agreed to pay any compensation, contingent or otherwise, direct or indirect, to solicit or procure this Agreement or any rights/benefits hereunder. e. Neither CONSULTANT, nor any of CONSULTANT’S subcontractors performing any services on this Project, shall bid for, assist anyone in the preparation of a bid for, or perform any services pursuant to, any other contract in connection with this Project unless fully disclosed to an approved by the City Manager, in advance and in writing. CONSULTANT and any of its subcontractors shall have no interest, direct or indirect, in any other contract with a third party in connection with this Project unless such interest is in accordance with all applicable law and fully disclosed to and approved by the City Manager, in advance and in writing. Notwithstanding any approval given by the City Manager under this provision, CONSULTANT shall remain responsible for complying with Section 9(b), above.
f. If CONSULTANT should subcontract all or any portion of the work to be performed or services to be provided under this Agreement, CONSULTANT shall include the provisions of this Section 9 in each subcontract and require its subcontractors to comply therewith.
g. This Section 9 shall survive expiration or termination of this Agreement.
10. General Terms.
a. Except as otherwise provided by law, all notices expressly required by CITY within the body of this Agreement, and not otherwise specifically provided for, shall be effective only if signed by the Administrator or his/her designee. b. Records of CONSULTANT’S expenses pertaining to the Project shall be kept on a generally recognized accounting basis and shall be available to CITY or its authorized representatives upon request during regular business hours throughout the life of this Agreement and for a period of three years after final Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE payment or, if longer, for any period required by law. In addition, all books, documents, papers, and records of CONSULTANT pertaining to the Project shall be available for the purpose of making audits, examinations, excerpts, and transcriptions for the same period of time. If any litigation, claim, negotiations, audit or other action is commenced before the expiration of said time period, all records shall be retained and made available to CITY until such action is resolved, or until the end of said time period whichever shall later occur. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this paragraph. This subsection 10(b) shall survive expiration or termination of this Agreement. c. Prior to execution of this Agreement by CITY, CONSULTANT shall have provided evidence to CITY that CONSULTANT is licensed to perform the services called for by this Agreement (or that no license is required). If CONSULTANT should subcontract all or any portion of the work or services to be performed under this Agreement, CONSULTANT shall require each subcontractor to provide evidence to CITY that subcontractor is licensed to perform the services called for by this Agreement (or that no license is required) before beginning work.
11. Nondiscrimination. To the extent required by controlling federal, state and local law, CONSULTANT shall not employ discriminatory practices in the provision of services, employment of personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or ethnicity. Subject to the foregoing and during the performance of this Agreement, CONSULTANT agrees as follows:
a. CONSULTANT will comply with all applicable laws and regulations providing that no person shall, on the grounds of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity made possible by or resulting from this Agreement. b. CONSULTANT will not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or ethnicity, CONSULTANT shall ensure that applicants are employed, and the employees are treated during employment, without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or ethnicity. Such requirements shall apply to CONSULTANT’S employment practices including, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
CONSULTANT agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provision of this nondiscrimination clause.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE c. CONSULTANT will, in all solicitations or advertisements for employees placed by or on behalf of CONSULTANT in pursuit hereof, state that qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or ethnicity.
d. If CONSULTANT will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising such labor union or workers’ representatives of CONSULTANT’S commitment under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
e. If CONSULTANT should subcontract all or any portion of the services to be performed under this Agreement, CONSULTANT shall cause each subcontractor to also comply with the requirements of this Section 11.
12. Independent Contractor.
a. In the furnishing of the services provided for herein, CONSULTANT is acting solely as an independent contractor. Neither CONSULTANT, nor any of its officers, agents or employees shall be deemed an officer, agent, employee, joint venture, partner or associate of CITY for any purpose. CITY shall have no right to control or supervise or direct the manner or method by which CONSULTANT shall perform its work and function. However, CITY shall retain the right to administer this Agreement so as to verify that CONSULTANT is performing its obligations in accordance with the terms and conditions thereof.
b. This Agreement does not evidence a partnership or joint venture between CONSULTANT and CITY. CONSULTANT shall have no authority to bind CITY absent CITY’S express written consent. Except to the extent otherwise provided in this Agreement, CONSULTANT shall bear its own costs and expenses in pursuit thereof.
c. Because of its status as an independent contractor. CONSULTANT and its officers, agents and employees shall have absolutely no right to employment rights and benefits available to CITY employees. CONSULTANT shall be solely liable and responsible for all payroll and tax withholding and for providing to, or on behalf of, its employees all employee benefits including, without limitation, health, welfare and retirement benefits. In addition, together with its other obligations under this Agreement, CONSULTANT shall be solely responsible, indemnify, defend and save CITY harmless from all matters relating to employment and tax withholding for and payment of CONSULTANT’S employees, including, without limitation, (i) compliance with Social Security and unemployment insurance withholding, payment of workers’ compensation benefits, and all other laws and regulations governing matters of employee withholding, taxes and payments; and (ii) any claim of right or interest in CITY employment benefits, entitlements, programs and/or funds offered employees of CITY whether arising by reason of any common Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE law, de facto, leased, or co-employee rights or other theory. It is acknowledged that during the term of this Agreement, CONSULTANT may be providing services to others unrelated to CITY or to this Agreement.
13. Notices. Any notices required or intended to be given to either party under the terms of this Agreement shall be in writing and shall be deemed to be duly given if delivered personally, transmitted by facsimile followed by telephone confirmation of receipt, or sent by United States registered or certified mail, with postage prepaid, return receipt requested, addressed to the party to which notice is to be given at the party’s address set forth on the signature page of this Agreement or at such other address as the parties may from time to time designate by written notice. Notices served by United States mail in the manner above described shall be deemed sufficiently served or given at the time of the mailing thereof.
14. Binding. Subject to Section 15, below, once this Agreement is signed by all parties, it shall be binding upon, and shall inure to the benefit of, all parties, and each parties’ respective heirs, successors, assigns, transferees, agents, servants, employees and representative.
15. Assignment.
a. This Agreement is personal to CONSULTANT and there shall be no assignment by CONSULTANT of its rights or obligations under this Agreement without the prior written approval of the City Manager or his/her designee. Any attempted assignment by CONSULTANT, its successors or assigns, shall be null and void unless approved in writing by the City Manager or his/her designee.
b. CONSULTANT hereby agrees not to assign the payment of any monies due CONSULTANT from CITY under the terms of this Agreement to any other individual(s), corporation(s) or entity(ies). CITY retains the right to pay any and all monies due CONSULTANT directly to CONSULTANT.
16. Compliance with Law. In providing the services required under this Agreement, CONSULTANT shall at all times comply with all applicable laws of the United States, the State of California and CITY, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.
17. Waiver. The waiver by either party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provisions of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein.
18. Governing Law and Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding, however, any conflict of laws rule which would apply the law of another jurisdiction.
Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE Luis Obispo County, California.
19. Headings. The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify or add to the interpretation or meaning of the provisions of this Agreement.
20. Severability. The provisions of this Agreement are severable. The invalidity, or unenforceability of any one provision in this Agreement shall not affect the other provisions.
21. Interpretation. The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against either party, but rather by construing the terms in accordance with their generally accepted meaning.
22. Attorney’s Fees. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney’s fees and legal expenses.
23. Exhibits. Each exhibit and attachment referenced in this Agreement including the Recitals listed above are, by the reference, incorporated into and made a part of this Agreement.
24. Precedence of Documents. In the event of any conflict between the body of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the Exhibit or Attachment. Furthermore, any terms or conditions contained within any Exhibit or Attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Agreement, shall be null and void.
25. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.
26. No Third Party Beneficiaries. The rights, interests, duties and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.
27. Extent of Agreement. Each party acknowledges that they have read and fully understand the contents of this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both CITY and CONSULTANT.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE IN WITNESS WHEREOF, CITY and CONSULTANT, intending to be legally bound hereby, have duly executed this Agreement as of the dates set forth below.
CITY OF GROVER BEACH Hinderliter de Llamas & Associates Matthew Bronson, City Manager Robert Gray, Vice President Attest:
Wendi B. Sims, City Clerk
Approved as to Form:
Rob Lomeli, City Attorney
Attachments: Exhibit A – Scope of Service
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE City of
Grover Beach
CANNABIS COMPLIANCE & FINANCIAL AUDITING
SERVICES
August 5, 2024
SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste200
Brea, CA 92821
hdlcompanies.com
CONTACT
Matt Eaton
T: 714.879.5000
E: [email protected]
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 1 Cannabis Compliance and Financial Auditing and Services August 5, 2024
1. TRANSMITTAL LETTER……………...........................................................................................2
2. UNDERSTANDING……….........................................................................................................4
3. EXPERIENCE…………………….....................................................................................................9
4. REFERENCES…………………………………….………………………………………………....................15
5. FEE PROPOSAL………………………………………………………………………………………....,........16
TABLE OF CONTENTS
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 2 Cannabis Compliance and Financial Auditing and Services August 5, 2024 August 5, 2024
Nick Szamet, Administrative Services Director
City of Grover Beach
154 S 8th Street
Grover Beach, CA 93433
Re: Cannabis Compliance and Financial Auditing Services Thank you for the opportunity to submit this proposal to provide Cannabis Compliance and Financial Auditing Services for the City of Grover Beach. Our proposal addresses all of the services contemplated in the City’s RFP, including annual cannabis revenue audits, regulatory compliance inspections, and additional hours of technical assistance and general subject matter expertise to be used as needed or requested by the City.
HdL was incorporated in 1983 and has over 40 years of experience providing revenue enhancement and consulting services to local governments in California. HdL was established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Our audit and consulting services include sales, use and transaction taxes, economic development, transient occupancy taxes, business license services and a Cannabis Management Program. Our systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 700 agencies nationwide. The firm currently serves 51 counties, 352 cities and 132 transactions tax districts in California.
HdL is recognized as the industry leader in the development, implementation and enforcement of cannabis management programs for local governments in California. We have partnered with over 200 California cities and counties on cannabis-related programs including development of tax and regulatory ordinances, community outreach and education, fiscal analyses and revenue projections, merit-based application and permitting processes, staffing plans and cost recovery studies, financial audits, compliance inspections and law enforcement training.
Our cannabis team has unmatched expertise, with more than 80 years’ combined experience in the development, implementation and enforcement of cannabis regulatory and tax programs. Our team members have conducted over 11,000 cannabis compliance inspections and audits in California, Colorado and Nevada, and have reviewed, scored and processed over 1,700 cannabis business applications in the last six years in California. HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 3 Cannabis Compliance and Financial Auditing and Services August 5, 2024 HdL is a California S-Corporation, incorporated in 1985 and is a 100% employee-owned company.
The company’s primary offices are in Brea, California, with additional offices in San Dimas, Fresno, Pleasanton, Colorado, Georgia and Texas. Over 60 employees work out of the Brea headquarters, with over 250 employees nationally. Our company information and primary contact person for this scope of services are provided below:
Company Information:
Hinderliter, de Llamas and Associates
120 S. State College Blvd., Suite 200
Brea, CA 92821
Website: www.hdlcompanies.com
Primary contact person:
Matt Eaton, Compliance Director
Phone: 714.879.5000
Fax: 909.861.7726
Email: [email protected]
HdL Companies is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the State Association of City Auditors, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues.
HdL anticipates that all key staff identified in this proposal shall remain employees of the company for the first year of any agreement. Should any identified staff leave their employment with HdL during the term of this project, HdL shall timely notify the City and shall provide an updated staffing plan including bios or resumes for any additional staff not previously identified.
No information on this proposal is considered proprietary. All terms of this proposal shall remain in effect for at least 120 days from the date of this proposal, or until a contract resulting from this RFP has been executed, whichever comes first.
We look forward to the opportunity to partner with the City of Grover Beach to provide the services as described. If you have any questions or require additional information, please feel free to our Compliance Director Matt Eaton at [email protected] or by phone at 714.879.5000.
I have read and understand the City’s RFP in its entirety, including, without limitation, the scope and nature of the work, all appendices, attachments, exhibits, schedules, and addenda, as applicable. HdL requests no exceptions to either the RFP or the City’s standard agreement and shall comply with all requirements of this RFP, including the insurance requirements described in Exhibit B.
Sincerely,
Andy Nickerson
President, HdL Companies
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 4 Cannabis Compliance and Financial Auditing and Services August 5, 2024 The City of Grover Beach has retained the services of HdL Companies since 2016 to assist with the exploration, development and implementation of a program to permit and regulate commercial cannabis businesses in the City. That assistance has included outreach and education, policy development, regulatory programs, enforcement strategies, training of staff, application processes and reviews, applicant interviews, compliance inspections, revenue audits and general subject matter expertise.
There are currently 10 licensed cannabis businesses operating in the City of Grover Beach, of which 4 are storefront cannabis retailers. The City is now requesting additional assistance to provide ongoing regulatory compliance reviews and financial audits of these permitted cannabis businesses, along with additional general consulting on cannabis-related issues as needed. HdL appreciates the opportunity to continue to provide these ongoing cannabis compliance services as described below.
Objective 1: Annual Revenue Audits
HdL will conduct an annual revenue audit of each cannabis business to verify the accuracy of the revenue reported and remitted to the City during the review period and will recommend a tax adjustment should the audit reveal any variances in reported revenue. As part of the audit process, HdL will conduct a risk-based review of each business using our proprietary methodology, which was developed to specifically address the unique challenges associated with auditing the cannabis industry. Our methodology allows audit staff to cross-analyze multiple business records to identify reporting variances, discrepancies and outliers to produce the most accurate measure of gross receipts on behalf of the City.
To initiate the process, the City shall provide HdL with a list of all licensed cannabis businesses subject to audit. HdL shall work with the City to determine the appropriate review period for each business and to develop a schedule for conducting all audits. As the time for each audit approaches, HdL will prepare a notification letter informing the licensee of the impending audit and providing a list of all records and documentation the business is required to provide, including remote access to the business’s point-of-sale (POS) system where applicable. HdL recommends that the notification letter be sent by the City to communicate HdL’s authority to conduct the audit and to encourage cooperation by the business.
The full annual audit shall include:
• Review Point-of-Sale (POS) system structure
• Review inventory system (subject to METRC data)
• Analyze and compare POS data with other available data sources, including:
o City cannabis tax returns
o State tax returns
o Federal tax returns
UNDERSTANDING
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 5 Cannabis Compliance and Financial Auditing and Services August 5, 2024 o METRC sales and inventory data
o CDTFA data
o Bank statements
o Sales receipts
o Other financial documents as available
• Identify any variances or over/under reporting
• Calculate any taxes or fees due to the City
• Prepare and issue report
Where cannabis cultivation is taxed on a square-footage basis, the audit shall include one annual site inspection to verify compliance with maximum permitted canopy area. Square footage audits may also consider documented findings from inspections by the City, DCC or other agencies, where available.
A business that holds multiple state cannabis licenses shall be considered a single business for audit purposes, provided that all licenses are held and operated under the same name, ownership, location, and a single tax ID number. Any variation may indicate separate business entities requiring separate audits. Any such determination shall be made on a case-by-case basis in consultation with the City.
HdL will provide a draft audit report to the commercial cannabis business. The business will be given an appropriate opportunity to respond or appeal the report in accordance with the City ordinance.
HdL will review any documentation provided by the business to dispute the findings and will adjust the tax/fee assessment as necessary prior to issuing the final report to the City.
The cost for this service assumes a standard 12-month review period. The cost for a longer term shall be increased per each additional 6-month period (2 fiscal quarters). Pricing available upon request.
This cost also assumes reasonable cooperation from the licensee. Non-cooperation by the licensee may result in additional charges at HdL’s hourly rate, or in termination of the audit and potential enforcement action by the City. Any such action or additional charges would be determined in consultation with the City.
The cost does not include assistance with administrative appeals or enforcement of audit findings, cannabis tax policy questions or guidance, or other services not directly associated with preparing the revenue audit report. Any costs associated with such additional services would be billed at HdL’s hourly rate.
Objective 2: Compliance Inspections
HdL will conduct one or more on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance with State and/or local laws. If HdL identifies any non-compliant activities, we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 6 Cannabis Compliance and Financial Auditing and Services August 5, 2024 The cost for these services includes all of the following:
• Notifying permittee of pending inspection
• On-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following:
o Inventory management
o Cash handling procedures
o Access control
o Video surveillance
o Product safety
o Alarm system maintenance and safety
o Lock standards
o Packaging and labeling
o Waste management
o Transportation documentation
o Surveillance equipment maintenance
o Occupational badges
o Business records
o Other items as necessary to ensure compliance with laws • Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. If the inspection identifies any violations of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report.
• All travel costs associated with the inspection, assuming a minimum of four inspections per day. If fewer than four inspections are requested, HdL will charge for travel based upon hourly rates, or a flat fee to be determined in consultation with City. • All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report.
Facilities greater than 30,000 square feet will be subject to an additional cost at HdL’s hourly rate to account for the additional time involved in conducting inspections, documenting issues of noncompliance and preparing reports. HdL will notify the City in advance if additional hourly charges are necessary to complete the inspection.
The cost for this service does not include any follow-up re-inspection or review of any documents provided to address or contest any findings of non-compliance, nor does it include any assistance with the appeal of any enforcement action by the City. Any costs associated with such additional services would be billed at HdL’s hourly rate.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 7 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Objective 3: Technical Assistance and Subject Matter Expertise HdL will provide additional hours of general consulting to be utilized on an as-needed basis at the City’s request. Such assistance may include technical assistance, subject matter expertise, research and analysis, education, monitoring of changes to State laws and regulations, participation in conference calls, responding to staff inquires via phone and email, reviewing staff reports to the City Council, assisting with responses to inquiries from the public, or other issues as mutually agreed to by the City and HdL.
Project Workplan
At the start of the project, HdL’s team will meet with City staff to discuss the approach and expectations, to develop an implementation timeline and determine the City’s desired schedule for each of the services contemplated by this RFP. The project management team will meet and confer on a regular basis with the City’s designated contact person or persons to review the progress of any work products and to discuss any changes in direction or needed details.
Cannabis revenue audits will be scheduled in consultation with the City. The City will provide HdL with a list of all licensed cannabis businesses and will inform HdL when a new cannabis business receives final permission to operate (i.e., through the issuance of a conditional use permit, certificate of occupancy or other indication the business has opened). HdL will then work with the City to schedule annual audits and will coordinate with the City as the time for each service approaches.
Annual audits can be scheduled separately for each business based upon their permit issuance date.
If the City prefers, HdL can develop a schedule to conduct annual audits for all businesses at the same time each year (e.g; all audits to be started in Q1 for the previous fiscal year). Any such schedule would be developed in consultation with the City and would be dependent upon the availability of annual tax filings and other reporting information for each business.
HdL’s audit process divides the audit schedule into 4 distinct phases. Phase 1 includes pre-audit work, such as issuance of a notification letter to the business, providing a list of all financial records that will be required and allowing an appropriate timeframe for receipt of those records.
In Phase 2, HdL will conduct an initial review of all records submitted by the business. If the initial review identifies the need for additional documentation, HdL will work with the business to provide the remaining records. Once all necessary documentation has been obtained, HdL shall move forward with Phase 3, which involves a full, detailed review of all required records and the drafting of initial findings.
In Phase 4, HdL will issue a draft report with the initial findings, addressed to the business with a cc to the City. The report shall also recommend any needed adjustments, penalties or other corrective actions. The business will have an appropriate amount of time to review and respond to the draft report. HdL will review any such response and adjust the audit findings if necessary before issuing the final report, which shall be addressed to the City with a copy to the business.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 8 Cannabis Compliance and Financial Auditing and Services August 5, 2024 HdL’s audits are typically completed within 60 days from receipt of all requested documentation to issuance of the draft report. This timeline assumes reasonable cooperation by the auditee, which is not within HdL’s control. Delayed responses to any requests for additional information may increase this timeline. The overall timeline from issuance of the audit notification letter to the final report averages 6 to 9 months. This timeline may be increased or decreased depending upon cooperation by the permittee and completeness of the records provided.
Regulatory compliance inspections shall be conducted based on a schedule to be determined in consultation with City staff. HdL will endeavor to conduct inspections of multiple facilities on the same day wherever possible, with a maximum of 5 on any one day. Inspection reports shall be provided to the City no later than 2 weeks (14 days) following the inspection.
Additional inspections requested by the City in response to complaints or previous non-compliance shall be conducted within 2 weeks of receiving the request. Where there is urgency, HdL shall work with the City to schedule inspections at the earliest availability, typically within 3 to 5 days. HdL staff shall be available to assist with additional enforcement efforts as needed or requested by the City.
The City’s primary role in regard to compliance activities shall be to communicate and enforce HdL’s authority to conduct onsite inspections and to assist with development of an inspection schedule.
The City will also inform HdL when additional inspections are requested to address complaints or to follow up on required corrections, or when additional enforcement assistance is desired.
HdL shall distribute the audit and inspection workload among our staff to allow for timely performance. Our workplan and staffing can accommodate additional businesses as they become licensed and functioning over time.
Involvement of City Staff
HdL understands the value and costs associated with staff time and will make every effort to minimize the amount of City staff time necessary to carry out the objectives of this program. The City’s role shall be to provide guidance on City-specific regulations and priorities and to communicate and enforce HdL’s authority to conduct audits on the City’s behalf if a business resists participating.
HdL personnel will initially meet with designated City officials to review all service objectives.
Specifically, HdL requests that the City participate in a kickoff meeting to establish audit processes and priorities, be available to answer occasional questions about specific audit concerns and perform invoicing and collection activities after audit reports have been issued.
HdL requests that the City identify a staff member to serve as the primary audit contact for HdL staff.
Based on HdL staff’s vast experience of conducting cannabis business license tax audits HdL expects cumulative City time required to be on average no more than thirty minutes per business.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 9 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Company Profile
Founded in 1983, HdL was established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Our audit and consulting services include sales, use and transaction taxes, transient occupancy taxes, economic development, business license services, transient occupancy tax and a cannabis compliance program. HdL is a California S-Corporation, incorporated in 1985 and is a 100% employeeowned company. The firm’s headquarters are located at 120 S. State College Blvd., Suite 200, Brea, CA 92821 with an additional office located in Fresno, CA. Over 60 employees work out of the Brea headquarters, with over 250 employees nationally.
HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 700 agencies nationwide. The firm currently serves 51 counties, 352 cities and 132 transactions tax districts in California.
HdL’s key staff has extensive experience serving local government and many have previously held positions in city management, finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor’s Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues.
This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery; forecasting; and economic services available.
HdL is recognized as the industry leader in the development, implementation and enforcement of cannabis management programs for local governments in California. We have partnered with over 175 California cities and counties on cannabis-related programs, including ordinance development and review, community outreach and education, merit-based application and permitting processes, cost recovery studies, compliance inspections, revenue audits, fiscal analyses and law enforcement training.
EXPERIENCE
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 10 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Our cannabis team has unmatched expertise, with more than 80 years’ combined experience in the development, implementation and enforcement of cannabis regulatory and tax programs, including permit processes, staffing plans, cost recovery fees, setting cannabis tax rates, regulatory compliance, financial audits, and law enforcement training. Our team members have conducted over 11,000 cannabis compliance inspections and audits in California, Colorado and Nevada, and have reviewed, scored and processed over 1,700 cannabis business applications in the last six years in California. HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry.
Project Management and Staff
The work contemplated by this proposal will be managed by HdL’s Compliance Director, Matt Eaton, who is one of the state’s most experienced cannabis regulatory professionals. Matt will oversee all aspects of the proposed workplan and will be the primary contact person for coordinating work with the City. Matt has previous experience as a Supervisory Criminal Investigator with the Colorado Department of Revenue’s Marijuana Enforcement Division, through which he conducted thousands of criminal investigations and compliance audits of cannabis businesses. This experience makes him ideally qualified to oversee the review, regulation and enforcement of licensed cannabis businesses.
Matt will be primarily assisted by Audit Manager Elizabeth Eumurian and Compliance Manager Brad Schneider. Elizabeth will work directly with the City in regard to cannabis surcharge audits and will lead HdL’s 8-person audit team. Elizabeth will work with the City to develop a work schedule for conducting audits of all licensed cannabis businesses in the City on an annual basis and will assign audit staff as needed to complete all audits in a timely manner.
Brad will lead HdL’s 3-person compliance team. Brad will consult with the City to develop the desired schedule for conducting regulatory compliance inspections and will coordinate with the City as the time for each inspection approaches.
Matt Eaton will directly oversee the review of cannabis facility applications and will assign applications to team members based upon the number of applications and staff availability. Matt will also oversee all background checks, assisted by Compliance Administrator Kristi Lervold.
Matt, Brad and Elizabeth will each meet and confer with the City as needed to ensure that all work is satisfactory and is being conducted in accordance with the delivery schedule to be developed in coordination with the City. This team will also be available to respond to questions or inquiries from the City as needed and to resolve any issues that may arise.
Team Availability
HdL shall dedicate an appropriate number of staff to ensure all services are provided in a timely manner. It is anticipated that all HdL staff identified shall remain with the company for the duration of this project. HdL shall immediately notify the City of any changes in staff assigned to this project and will adjust staffing levels as needed to ensure timely delivery of all work products.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 11 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Matt Eaton – Compliance Director
Matt Eaton is the Compliance Director at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 30 years’ experience conducting criminal/regulatory investigations, and corporate/individual background investigations. While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices.
During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews, including regulatory and financial investigations. He is a subject matter expert on track and trace systems and understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues. Matt received his Bachelor of Science Degree from Biola University and maintained Police Officer Service Training (POST) certification for over 30 years in California and Colorado. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado.
Mark Lovelace - Senior Policy Advisor
Mark Lovelace has 23 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a legitimate policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Cannabis Working Group for the California State Association of Counties (CSAC) and helped draft CSAC’s cannabis legislative platform. Mark has worked extensively with public agencies and statewide organizations on cannabis issues and has led numerous presentations, workshops and panel discussions. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development, resource management and environmental issues. He received his Bachelor of Science degree in Industrial Design from San Jose State University.
Brad Schneider - Compliance Manager
Brad Schneider manages HdL’s team of cannabis compliance inspectors to ensure that licensed cannabis businesses are operating within state law and complying with all of their obligations under the terms of their local permit. He oversees the team to ensure that all inspections are conducted on a timely schedule in coordination with the local jurisdiction and that all reports are clear and fullydocumented. Brad brings 30 years of experience with the Ontario Police Department where he worked as a detective, background investigator and Sergeant. Brad spearheaded operations within the Narcotics Division, concentrating on identifying and mitigating illegal activities.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 12 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Following his law enforcement career, he worked in aircraft sales where he managed contracts with state and local government agencies. Brad has broad experience in regulatory compliance from both the public and private sector, ensuring alignment with industry regulations and standards and directing training, safety programs and operational procedures.
Michelle Shaw - Compliance Inspector
Michelle conducts onsite inspections, examinations and other actions to monitor compliance with established standards for local licensed cannabis businesses. Prior to joining HdL, she was a Compliance Specialist Officer at a large, multinational bank where she managed, validated and oversaw the effectiveness and accuracy of numerous compliance issues within the consumer retail space. Throughout her eight years of experience at the bank, she performed assessments of affiliate businesses to determine compliance/non-compliance of their processes and procedures pursuant to bank standards and state regulations. A graduate of Cypress College, Michelle holds a Foundations of Banking Risk certificate from the Global Association of Risk Professionals and a paralegal certificate from the Southern California College of Business and Law.
Teresa Schneider - Compliance Inspector
Teresa Schneider served for 28 years with the Montclair Police Department, including 12 years in the Background Investigations Unit. In this capacity, Teresa was responsible for conducting background investigations of all City business license applicants, as well as all sworn and non-sworn positions within the police and fire departments and of civilians requesting access to police department records. Theresa previously served 4 years in the U.S. Army’s nursing program at Fort Campbell, Kentucky. During this time she attended college at the University of Kentucky and Austin Peay State University. After receiving an Honorable Discharge in 1990, Teresa was hired by the Montclair Police Department. During her 28-year career, she worked numerous assignments, including patrol, K9, detective bureau, court liaison, volunteer coordinator, and red-light automated enforcement. Teresa received many awards throughout her career, including Officer of the Year.
Elizabeth Eumurian - Audit Manager
Elizabeth Eumurian manages the HdL cannabis audit team. In her role she oversees the development and refining of HdL's proprietary audit methodology to better identify reporting variances, discrepancies and outliers, and to ensure audit accuracy and consistency. She also reviews audit reports, evaluates cannabis business financial information and assists with special projects. Before becoming manager, Elizabeth conducted cannabis audits for HdL. Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience working for a large financial institution analyzing data for reporting anomalies and performing internal audits. Elizabetj earned her Bachelor of Arts degree from California State University Fullerton and holds a certificate in CannaBusiness from Oaksterdam University Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 13 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Valerie Carter - Audit Supervisor
Valerie Carter works as a supervisor for HdL’s Cannabis Management Team, supporting the audit manager and assisting in overseeing day to day work of audit staff. Valerie has over 5 years of public sector work experience focusing on public policy, auditing and revenue tax implementation. She was a Tax Auditor II for the City of Oakland’s Revenue Management Bureau and an Assistant Management Analyst for the City of Berkeley’s Transportation division. Valerie earned a Bachelor’s Degree in Business Administration from Cal Poly Pomona, with an emphasis on Finance, Real Estate, and Law.
Tao Lu - Senior Auditor
Tao Lu works as an Auditor for HdL’s Cannabis Management Team. Tao has two and a half years’ experience as an accountant with an emphasis in information technology and food manufacturing industries. He also has public audit work experience at RSM China. Tao was born and raised in China. Tao earned a Bachelor’s Degree in Accounting and Finance from Syracuse University in New York before relocating to Southern California with his family.
Pam Davis - Auditor
Pam Davis conducts revenue audits of licensed cannabis businesses as a member of HdL’s Cannabis Management Team. Prior to joining HdL, Pam served as the Director for the Richland County (South Carolina) Business Service Center for over 15 years, where she was responsible for auditing businesses to ensure accurate reporting and remittance of a variety of local taxes. Pam also conducted research and rate impact analyses and developed policies, procedures and user manuals to ensure business and governmental compliance. Pam received a Master of Public Administration degree from the University of Georgia and a Bachelor’s Degree in Political Science from Clemson University. She also holds a certificate in CannaBusiness from Oaksterdam University.
Jennifer Erwin - Auditor
Jennifer Erwin is an Auditor for HdL’s Cannabis Management Team. Jennifer conducts revenue audits of licensed cannabis businesses to ensure they are reporting and remitting the proper amount of cannabis tax revenue to their host jurisdiction. Jennifer previously served as Finance Director for the City of Perris, California and as Assistant Controller for the Morongo Band of Mission Indians. Jennifer brings extensive experience with complex financial analyses, fee studies, cost accounting procedures and collections. Jennifer is a Certified Public Accountant (CPA #108992) and holds a Bachelor of Science degree in Business Administration from the University of Phoenix.
Eric Magana – Auditor
Eric Magana works as an Auditor for HdL’s Cannabis Management Team, conducting revenue audits of licensed cannabis businesses to ensure they are accurately reporting their revenues and remitting the proper amount of fees or taxes. Prior to joining HdL, Eric worked as a Loan Specialist for the U.S. Small Business Administration, where he processed over 5,000 business loans and grant applications. Eric holds a Bachelor's degree in Economics and Administrative Studies from the University of California at Riverside.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 14 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Dante Chegini - Audit Analyst
Dante Chegini conducts revenue audits as a member of HdL’s Cannabis Management Team to ensure that licensed cannabis businesses are reporting and remitting the proper amount of cannabis taxes to their host jurisdiction. Dante previously worked as a financial analyst at a public finance investment banking firm in Los Angeles, where he was lead analyst on over 30 deals with a total value exceeding $1 billion. Dante brings experience with organizing and analyzing large volumes of financial data to determine accurate revenues and debts. Dante received a Bachelor of Science degree in Business Administration from the University of Southern California, Marshall School of Business with a focus on financial and managerial accounting and business finance.
Michael Cimino - Audit Analyst
Michael Cimino is an Audit Analyst for HdL’s Cannabis Management Team. Michael conducts revenue audits of licensed cannabis businesses to ensure they are reporting and remitting the proper amount of cannabis taxes to their host jurisdiction. Michael previously worked as an information technology manager at an international manufacturing company where he performed internal security audits and risk analyses and implemented policies to ensure compliance with ISO standards. He also assisted with integration of ERP/CRM software across multiple departments and locations. Michael holds an Associate of Arts degree from Fullerton College.
Kristi Lervold - Compliance Administrator
Kristi Lervold is the Compliance Administrator for HdL’s cannabis team. In this role she supports individual team members, coordinates internal processes, and assists with client requests, contracts, billing reconciliation and invoicing. Kristi’s 18-year career includes ten years as the administrative assistant to HdL’s CFO, handling various operational responsibilities and supporting financial functions, as well as experience in the occupational health industry, facilitating services for federal, state, and local government clients. Kristi holds a Bachelor’s of Science degree in Business Management with a minor in Business Administration.
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 15 Cannabis Compliance and Financial Auditing and Services August 5, 2024 City of Modesto Status: Ongoing
HdL has assisted the City of Modesto with cannabis business license tax audits, market analysis and revenue projections, compliance inspections, supplemental background checks, pre-license site visits and general subject matter expertise, along with ordinance development and an application process and reviews. We have so far conducted 21 audits and 57 compliance inspections for the City.
Dates: July 2018 - Present Contract amount: $1,948,300 (5 contracts) Contact: Gina Brown Title: Revenue and Collections Compliance Mgr.
Phone: 209.577.5381 Email: [email protected]
Assigned HdL Staff: Matt Eaton, Elizabeth Eumurian, Valerie Carter, Pam Davis, Michael Cimino, Mark Lovelace, Kristi Lervold
City of Moreno Valley Status: Ongoing
HdL has assisted the City of Moreno Valley with cannabis business license tax audits, compliance inspections, supplemental background checks and general subject matter expertise. HdL has also assisted the City with ordinance development, fiscal analysis, cost recovery fees, and an application process and reviews. We have so far conducted 15 audits and 79 compliance inspections for the City of Moreno Valley.
Dates: November 2017 - Present Contract amount: $1,316,000 (7 contracts) Contact: Launa Jimenez Title: Chief Financial Officer
Phone: 951.413.3000 Email: [email protected]
Assigned HdL Staff: Matt Eaton, Elizabeth Eumurian, Tao Lu, Dante Chegini, Pam Davis, Michelle Shaw, Teresa Schneider, Kristi Lervold
City of Maywood Status: Ongoing
HdL has assisted the City of Maywood with business license tax audits, compliance inspections, pre-license site visits and background checks, as well as general subject matter expertise. We have so far conducted 19 audits and 89 compliance inspections for the City.
Dates: May 2017 - Present Contract amount: $372,500 (3 contracts) Contact: Jennifer Vasquez Title: City Manager
Phone: 323.562.5721 Email: [email protected] Assigned HdL Staff: Matt Eaton, Elizabeth Eumurian, Jennifer Erwin, Eric Magana, Dante Chegini, Michelle Shaw, Kristi Lervold
REFERENCES
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 16 Cannabis Compliance and Financial Auditing and Services August 5, 2024 Please see separate submission.
FEE PROPOSAL
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE City of
Grover Beach
CANNABIS COMPLIANCE & FINANCIAL AUDITING
SERVICES
FEE PROPOSAL
August 5, 2024
SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste200
Brea, CA 92821
hdlcompanies.com
CONTACT
Matt Eaton
T: 714.879.5000
E: [email protected]
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 1 Cannabis Compliance & Financial Auditing Services
for the City of Grover Beach August 5, 2024
This proposal does not include any additional services that are not specifically enumerated herein.
The proposal assumes that HdL will not be a part of any enforcement action, appeal, arbitration, or civil litigation resulting from the findings of an inspection and/or audit. Any such additional reports, documentation or assistance that may be required would be in addition to the costs shown in the table below and shall be billed at HdL’s hourly rate. This includes assistance with administrative hearings and/or civil litigation involving cannabis licensees.
Prices are valid for 120 days from the date of this proposal to allow time for consideration and negotiating a service agreement. Once under contract, prices shall be honored for the first full year, with successive years subject to an annual increase based upon the Consumer Price Index for the Los Angeles-Long Beach-Anaheim region.
Conflicts of Interest and Non-Disclosure
HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry. All cannabis business information will be kept confidential by HdL and will not be shared internally beyond those HdL employees who are required to have access for purposes of conducting the work contemplated herein, or for administrative purposes as necessary.
Scope of Service Objectives Estimated
Cost
Objective 1: Annual Revenue Audits
Assumes standard 12-month review period
$10,000
per audit
Objective 2: Compliance Inspections
One or more inspections per year, as requested by the
Cit
$2,500
per inspection
Objective 3: Technical Assistance and Subject Matter Expertise Billed at the hourly rate for the assigned staff
Hourly Rate
Travel: As needed for site visits or in-person meetings Hourly Rate1 Plus Expenses
TOTAL NOT TO EXCEED TBD
1 Or at a flat rate to be determined in consultation with the City All City costs may be fully recoverable from applicants or permittees
FEE PROPOSAL
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE 2 Cannabis Compliance & Financial Auditing Services
for the City of Grover Beach August 5, 2024
Services Billed at Hourly Rate
Service objectives shown as being billed at HdL’s hourly rate may be billed up to the maximum estimated hours. HdL will not exceed the maximum estimated hours without first notifying the City and receiving written approval in advance.
Hourly Rates for HdL Staff
The prices in this proposal are based on the hourly rates for HdL staff as shown in the chart below.
Any additional services requested by the client that are not specifically described in this proposal would be billed at the standard rate for the assigned staff person HdL Staff Person Title Hourly Rate
Matt Eaton Director of Cannabis Services $300
Mark Lovelace Senior Policy Advisor $300
Elizabeth Eumurian Audit Manager $300
Brad Schneider Compliance Manager $300
Valerie Carter Audit Supervisor $275
Tao Lu Senior Auditor $250
Kristi Lervold Compliance Administrator $235
Michelle Shaw Compliance Inspector $235
Teresa Schneider Compliance Inspector $235
Pamela Davis Auditor $235
Eric Magana Auditor $235
Jennifer Erwin Auditor $235
Dante Chegini Audit Analyst $225
Michael Cimino Audit Analyst $225
All rates current as of the date of this proposal
Docusign Envelope ID: 253BF938-107B-4DBB-BC10-D40669CFDCEE Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 15, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: Revision of Resolution for 2024 California Department of Housing and Community Development Block Grant Application
RECOMMENDATION
Adopt a revised Resolution to comply with the updated requirements from the Department of Housing and Community Development (HCD) for the 2024 Community Development Block Grant (CDBG) application, authorizing staff to prepare and submit an application for a CDBG for Phase 3 of the Ramona Garden Park Rehabilitation Project, Microenterprise Assistance Program, and Non-Congregate Shelter Navigation Center Program.
BACKGROUND
On June 24, 20241
, the Council received a presentation and held a public hearing related to potential programs/projects for inclusion in a 2024 CDBG application. The Council subsequently directed staff to pursue applications for three qualifying activities:
• OTC Project: Ramona Garden Park Rehabilitation Project, City of Grover Beach ($2,354,000)
o Phase 3 of the Ramona Garden Park Rehabilitation Project (CIP 1259), which includes the park entry, the main plaza, and the Veteran’s memorial plaza • OTC Program: Microenterprise Assistance, City of Grover Beach ($946,0002 )
o Loans to income-eligible business owners to construct needed building improvements such as plumbing and sewer lines, energy code improvements, accessibility requirements, or fire suppression systems. • Competitive Program: Non-Congregate Shelter Navigation Center Program, 5Cities Homeless Coalition ($300,000)
o Would support ongoing operating costs for the navigation centers within the city (“Cabins for Change” and “Balay Ko on Barca”).
To document and formalize the Council’s direction, the Council adopted Resolution 24-44 on August 26, 2024 3 with the following activities and funding totaling $3,600,000 including administrative costs:
1 https://www.grover.org/DocumentCenter/View/15103/Item14_CDBG-2024-NOFA-App_Staff-Report_2024-06-24 2 Staff originally anticipated $1.1 million for this program based on the original cost estimates for Phase 3 of the Ramona Park Rehabilitation Project. Given a cost increase for Phase 3 and a CDBG award cap for OTC of $3.3 million, the Microenterprise Assistance Program was reduced to account for the difference. 3 https://www.grover.org/DocumentCenter/View/15367/Item7_CDBG-2024-Application_2024-08-26 Staff Report: Revision of 2024 Community Development Block Grant Resolution Page 2 October 15, 2024
Activity Dollar Amount Requested
Public Facility: Ramona Garden Park Improvements
Phase 3
$ 2,354,000.00
Economic Development: Microenterprise Assistance $ 946,000.00 Public Services: Non-Congregate Shelter
Navigation Center Program
$ 300,000.00
Contrary to prior guidance provided to the City, HCD recently announced that funds for general administration shall be listed as a separate activity within the resolution rather than included with each activity. Failure to implement this change could result in a rejection of an application.
Therefore, staff has revised the activity and funding table within the resolution as follows:
Activity Dollar Amount Requested
Public Facility: Ramona Garden Park Improvements
Phase 3
$ 2,200,000.00
Economic Development: Microenterprise Assistance $ 884,112.15 Public Services: Non-Congregate Shelter
Navigation Center Program
$ 280,373.83
General Administration $ 235,514.02
Staff recommends the Council adopt the revised Resolution shown in Attachment 1.
FISCAL IMPACT
There is no fiscal impact associated with this report.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a revised Resolution to comply with the updated requirements from the Department of Housing and Community Development (HCD) 2024 CDBG grant application, authorizing staff to prepare and submit an application for a Community Development Block Grant for Phase 3 of the Ramona Garden Park Rehabilitation Project, Microenterprise Assistance Program, and Non-Congregate Shelter Navigation Center Program; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Resolution
Resolution of the Governing Body
RESOLUTION NO. Insert Number
A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE
EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS
THERETO FROM THE 2024 FUNDING YEAR OF THE STATE CDBG
PROGRAM
BE IT RESOLVED by the City Council of the City of Grover Beach as follows:
SECTION 1:
The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $3,600,000 for the following CDBG activities, pursuant to the and 2024 CDBG NOFA:
List activities and amounts
Activity (e.g. Public Services,
Infrastructure, etc.)
Dollar Amount Being Requested for the
Activity
Public Facility: Ramona Garden Park
Improvements Phase 3
$ 2,200,000.00
Economic Development: Microenterprise
Assistance
$ 884,112.15
Public Services: Non-Congregate Shelter
Navigation Center Program
$ 280,373.83
General Administration $ 235,514.02
$
SECTION 2:
The City Council hereby approves the use of Program Income in an amount not to exceed $0 for the CDBG activities described in Section 1.
SECTION 3:
The City Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).
SECTION 4:
The City Council hereby authorizes and directs the City Manager or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.
Attachment 1
SECTION 5:
If an application is approved, the Mayor or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement), any recordable or nonrecordable contract documents, and any and all subsequent amendments thereto with the State of California for the purposes of the grant.
SECTION 6:
If an application is approved, the City Manager or designee*, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Grover Beach held on 10/15/2024 by the following vote:
AYES: Enter # of votes or names
NOES: Enter # of votes or names
ABSENT: Enter # absentees or names
ABSTAIN: Enter # of abstains or names
Karen Bright, Mayor
City Council
STATE OF CALIFORNIA
City of Grover Beach
I, Wendi Sims, City Clerk of the City of Grover Beach, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this 15 day of October, 2024 and that said resolution has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.
Wendi Sims, City Clerk of the City of Grover Beach, State of California
______________________________________
By: Wendi Sims, City Clerk
Agenda Item No. 10
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 15, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director SUBJECT: Economic Development Update
RECOMMENDATION
Receive an update on key economic development initiatives and activities.
BACKGROUND
Economic development remains a top priority and is one of the City’s Major City Goals for FY 2023-25 (Attachment 1). As part of the FY 2024-25 budget, the Council continued with a strategic focus on economic development and staff established a work program for that goal (Attachment 2). The purpose of this update is to provide the Council with information about economic development initiatives and activities.
Business Retention and Attraction
Business Development and Support
The City is committed to strengthening and maintaining a business-friendly environment. Efforts toward this include focusing on business attraction, permit streamlining, and commercial development, especially along West Grand Avenue. Three mixed-use development projects along West Grand Avenue listed below have been approved by the Planning Commission since 2023 and will result in approximately 12,000 square feet of new commercial space along with 119 new residential units bringing in additional customers at local businesses. • 197 West Grand Avenue. This is a recently approved four-story mixed-use development including 2,500 square feet of commercial retail/restaurant space with an outdoor corner plaza at the corner of North 2nd Street and West Grand Avenue. The site will also be developed with 23 residential units including 16 townhomes and 7 condominium units. • 401 West Grand Avenue. Located at the corner of North 4th Street and West Grand Avenue, this four-story mixed-use development replacing a vacant used car lot is currently under construction and includes 6,900 square feet of commercial retail/restaurant space, and 59 new condominium units.
• 402 West Grand Avenue. Across from 401 West Grand Avenue and currently under construction is a four-story mixed-use building replacing a vacant lot and includes 2,600 square feet of commercial retail/restaurant space and outdoor public seating area. The site will also be developed with 37 new condominium units.
Staff Report: 2024 Economic Development Update Page 2
October 15, 2024
These developments, along with a 53-residential unit affordable housing project at 1206 West Grand Avenue, further the goals of the West Grand Avenue Master Plan and are consistent with the City’s Development Code to provide more vibrancy and activity in the heart of Grover Beach along the city’s main commercial corridor. The addition of the commercial space presents a particularly exciting opportunity and is designed to accommodate the expansion of existing businesses, such as restaurants and retail establishments, offering them room to grow within the city rather than seeking opportunities elsewhere. This new space also serves as a key asset for attracting new businesses to Grover Beach, providing modern, versatile locations that can meet the needs of diverse industries.
Lastly, the City would recognize the work of the South County Chambers of Commerce (Chamber) in supporting business attraction and retention in Grover Beach and the South County area. The City has a long-standing partnership with the Chamber which has numerous programs to support businesses including operating The Launch Pad business space at 391 Front Street. The Launch Pad has been in operation since 2022 and recently expanded into vacant space adjacent to the original space. The Chamber CEO will attend the Council meeting and can provide additional comments about The Launch Pad and other Chamber programs.
Local Business Investment Opportunities
As part of the most recent California Housing and Community Development (HCD) Notice of Funding Availability (NOFA) for the 2024 Community Development Block Grant, the Council approved an application for $1 million in Microenterprise Assistance Program loan funding to support low to moderate income (LMI) business owners. This funding would be administered by the City and provide qualifying applicants the opportunity to receive a low-interest loan for certain tenant improvements such as accessibility, plumbing, energy, and fire suppression and safety systems. The loan could also be used by business owners to support limited façade improvements, like new signage. If awarded by HCD, staff anticipates being able to use the grant funding to help up to 20 qualifying businesses. Staff will submit an application for the grant before the end of 2024 and the City should receive notification of award status after the first of the year.
For existing businesses, this program represents a chance to grow and modernize while keeping costs manageable through affordable financing. It also demonstrates the City’s continued commitment to fostering a supportive environment for business retention and expansion. By providing targeted assistance, the City is helping ensure that small qualifying businesses, which are the backbone of the local economy, have the resources they need to thrive.
Buy Local Program
The City has a long history of providing funding to support local businesses including grants to address COVID impacts and install outdoor seating, signage, and façade improvements along with Buy Local programs in partnership with the Chamber. Much of this funding came from onetime sources such as the American Rescue Plan Act funds along with some funding from the General Fund.
In July 2024, the City launched the fourth iteration of the Buy Local Program in partnership with the Chamber to support Grover Beach businesses affected by construction of the West Grand Avenue streetscape project. This initiative fosters local patronage and supports business resilience. Residents and patrons have been encouraged to shop at businesses within the construction area and receive a $25 gift card for every $100 spent at participating restaurants, breweries, wineries, or retail establishments on West Grand Avenue from Highway 1 to 10th Street.
Staff Report: 2024 Economic Development Update Page 3
October 15, 2024
As of October 6, the program has generated impressive results with submission of over 300 receipts with approximately $60,000 spent at eligible businesses. Compared to the City’s $15,000 investment for the purchase of gift cards and administrative costs for the Chambers to run the program, there has been a 5:1 return on investment of City funds. This ROI shows the program is effectively driving spending, with businesses impacted by the West Grand Avenue streetscape project receiving significantly more in economic activity than the value of the initial investment.
Given that the funding for this Buy Local program is fully expended, staff is preparing another program to support businesses along this section of West Grand Avenue. The City will launch a new “West End Business Bingo” game during November to further encourage patronage at businesses impacted by the construction along West Grand Avenue. Participants can obtain a Bingo card from the Community Services Division either in person at the Grover Beach Community Center or online by visiting the Community Services page on the City’s website. Each Bingo card will list businesses along West Grand Avenue and by visiting at least four businesses on the Bingo card and submitting proof of purchase via receipts to Community Services, participants will receive a custom sticker and will be entered into a drawing for Grover Beach prizes. Staff proposes to unveil this new program with additional information later in October.
Tourism Development
Tourism Marketing
Tourism plays a key role in Grover Beach’s economic development strategy. The City contracts with Verdin Marketing as part of the City-funded Visit Grover Beach tourism marketing initiative to boost tourism through tourism branding and marketing efforts. Through this work, there has been almost a 10,000% increase in followers to Visit Grover Beach social media platforms, increasing awareness of the City’s travel and tourism offerings and driving additional business to the City. Tourism continues to increase in Grover Beach given the city’s coastal location, food and beverage offerings, and proximity to numerous regional amenities. This increase in tourism is evident in the significant increase in the City’s Transient Occupancy Tax (TOT) revenue which reached a high of $953,685 in FY 2023-24. The City also continued to collaborate with regional partners like Visit SLO Cal and Regional Economic Action Coalition (REACH) to attract industries and investments that complement the local tourism economy.
Hotel Development
The City’s tourism marketing efforts align with the new hotel developments at 950 and 1598 El Camino Real which will expand lodging options for visitors and contribute to local revenue. The City anticipates the hotel at 950 El Camino Real will begin hosting guests in summer 2025. The proposed hotel at 1598 El Camino Real is currently in the permit review process.
The City continues its involvement in the Grover Beach Lodge hotel project, and supports California State Parks (State Parks) as the lead permitting agency on this private development located at Pismo State Beach. State Parks and the Joint Authority (State Parks and City of Grover Beach) issued a correction letter in Spring 2024 to the project developer requesting revisions to the parking lot design. The design team is working on plan revisions and responses while the developer has completed documentation to receive the Caltrans encroachment permit for certain improvements to Highway 1.
Staff Report: 2024 Economic Development Update Page 4
October 15, 2024
Ramona Garden Park Rehabilitation Project
Guided by the Ramona Garden Park Master Plan and adopted by the City Council in 2020, the Ramona Garden Park Rehabilitation Project is a series of planned improvements to revitalize the park in four phases. The project aims to create a more inviting, functional and inclusive space for the City’s annual summer concerts and other special events, drawing residents and visitors from other cities to this key community space. Recently, the City secured $3.3 million in CDBG grant funding for Phase 1 and 2 of the project. This will provide 90% of the needed funding for the project which will include an all-abilities playground, amphitheater, stage and bandshell, event lawn, new restrooms, re-designed walkways, benches, and picnic tables. The City has initially utilized General Fund reserves to bridge the approximately $400,000 funding gap for the project and will launch a community giving campaign effort later this year to provide an opportunity for residents, businesses, and others to contribute to this exciting project.
Commercial Cannabis Activities
Grover Beach is a leader in San Luis Obispo County for promoting and regulating commercial cannabis in a safe and responsible way. The City’s forward-thinking approach has fostered a thriving cannabis industry and has contributed to local economic development. There are currently nine cannabis businesses currently operating and generating jobs and tax revenue which helps support City services and projects. Most recently, two well-known retail companies (local SLO Cal Roots and statewide Catalyst Cannabis) moved into two of the existing retail spaces that were vacant. There are currently four cannabis retailers operating in the city including Urbn Leaf and Natural Healing Center in addition to the two listed above.
The City has averaged approximately $1.6 million in annual cannabis tax revenue since FY 2019-
20. The annual amount has decreased to approximately $1 million in FY 2023-24 given market and regulatory challenges faced by the industry including State licensing, federal legal uncertainty, and insufficient market penetration statewide. However, the cannabis industry continues to be an important source of general tax revenue for the City, contributing significantly to public services infrastructure and overall economic health.
Transoceanic Data Cables and Broadband Fiber
Grover Beach has positioned itself in the global digital economy with strategic partnerships for transoceanic cable infrastructure and broadband fiber. These cutting-edge technologies are transforming the city into a hub for international connectivity and attracting high-tech industry to support the local economy and business growth. Grover Beach is home to a strategic landing site for three and soon four transoceanic cables, which provide critical data links between North America and Asia. These cables offer high-capacity, ultra-low-latency connections that are essential for industries dependent on large-scale data transfers, such as tech, finance, and media.
The cables also provide ongoing funding to the City through an easement agreement. This places Grover Beach at the heart of global data traffic on the Central Coast, making the city an attractive location for data centers and tech companies seeking proximity to this infrastructure.
Related to high-speed data connections is the continued buildout of Astound’s citywide broadband network following the Council’s approval of a license agreement with Astound in March 2022.
Astound (formerly Digital West) has been installing broadband fiber in the city since 2017 as part of a public-private partnership with the City which will enable Grover Beach to be the first “gigabit” city on the Central Coast with high-speed fiber internet service offered to every residential and commercial property. Astound is nearing the end of its citywide buildout with final installation work underway now on certain streets in the southeast portion of the city.
Staff Report: 2024 Economic Development Update Page 5
October 15, 2024
Permit Streamlining and Process Improvements
Enterprise Permitting and Licensing
In 2023, the City contracted with Tyler Technologies to implement the Enterprise Permitting and Licensing (EPL) software. This strategic investment is a significant upgrade to the Community Development Department’s permitting process and is also a catalyst for economic development within the community. Some of the primary advantages of the new EPL software is its robust records management capabilities, the automated permit processing workflow, and a user-friendly interface for both applicants and staff. The software streamlines the submission, review, and approval processes. This efficiency means shorter wait times for businesses and developers looking to establish or expand their operations in Grover Beach.
The Community Development Department is taking a proactive step toward enhancing Grover Beach’s economic development framework for streamlined permit processing and anticipates rollout of the new software by the end of 2024. Staff is hopeful this alignment between technology and economic development will position Grover Beach as a leader in efficient permitting practices, benefiting both residents and the City’s local economy.
Development Code Amendments for Process Improvements
On September 9, 2024, the City Council adopted changes to the City’s Development Code.
Revising the Development Code will enhance process efficiency by clarifying requirements, reducing redundancies, and streamlining approvals. These improvements directly support the City’s transition to the new EPL software, creating a more cohesive and efficient permitting system.
By aligning code updates with the technology upgrade, the City will ensure faster, more transparent service for applicants and support ongoing efforts to boost economic development in Grover Beach. Once approved by the applicable State agencies, the changes will go into effect.
Staff anticipates consideration by the Coastal Commission by early 2025.
FISCAL IMPACT
There is no direct fiscal impact from this update.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive an update on key economic development initiatives and activities; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Major City Goals FY 2023-25
2. Economic Development FY 2024-25 Work Program
City of Grover Beach
FY 2024-25 City Council Goals
MAJOR CITY GOALS
ECONOMIC DEVELOPMENT AND COMMUNITY PROMOTION. Strengthen and maintain a businessfriendly environment, implement strategies that build upon existing efforts in business retention with a focus on vulnerable sectors and populations, pursue business attraction and commercial development especially on West Grand Avenue, expedite permit processing, and promote tourism and hotel development.
HOUSING AND HOMELESSNESS. Work with developers and non-profits in efforts to increase housing availability with a focus on affordable housing; continue partnerships with regional agencies and organizations to address homelessness and related sheltering issues in the city and region, including supporting completion and operation of temporary shelter facilities in the City.
PUBLIC SAFETY. Ensure quality police, fire and emergency medical services by providing proper support, including implementation of a new fire services structure and funding, training and leadership development resources to meet service demands and growing challenges in such areas as homelessness, behavioral health, and social justice; and continue to engage with regional agencies, local businesses and the community in these efforts.
STREET MAINTENANCE AND COMPLETE STREETS. Continue to complete Measure K-14 street improvements on arterials and local streets; create a maintenance plan and related funding for improved streets; pursue opportunities to design and build safer, more pedestrian and bicycle friendly “complete streets” by incorporating where feasible bicycle lanes, sidewalks, street lights, crosswalks, trees/landscaping and other traffic calming design strategies.
OTHER IMPORTANT GOALS
BUILDING AND FACILITY IMPROVEMENTS. Support city programs, operations and assets by ensuring that our public facilities, including parks and buildings, are maintained, improved and expanded to meet community needs into the future; strategically develop priorities and funding plans by evaluating deferred maintenance, safety, health, accessibility, energy, and long-term needs.
COMMUNITY ENGAGEMENT. Continue a strong commitment to transparency and public participation in our city government through existing and new programs, initiatives and events designed to encourage community members, including youth, engagement in key community decisions; formalize our practices by adopting and implementing a public participation plan and policies.
WATER SUPPLY AND RESILIENCY. Meet existing and long-term water needs through by studying water resiliency alternatives and other regional efforts and by continuing water conservation; identify other feasible strategies to ensure long-term water resiliency.
ADDRESS AS RESOURCES PERMIT
CITY AND SCHOOL PARTNERSHIP. Establish a framework for communication between city officials and local public TK-12 education partners' that operate within the city supporting a Community Schools model that provide benefits for our youth, families, and the community 24/7 through more intentional alignment. Maximize each jurisdiction’s existing facilities and programs in partnership that benefits all, and discuss potential parallel policy options for shared adoption.
CODE COMPLIANCE. Prioritize the City’s code compliance program to quickly and effectively enforce our existing ordinances, including tree related issues like maintenance and removal permits.
ENVIRONMENTAL SUSTAINABILITY. Pursue carbon neutral solutions to develop a greener Grover Beach through plans, policies and City operations.
Attachment 1
MAJOR CITY GOAL FY 2024-25 WORK PROGRAM
ECONOMIC DEVELOPMENT AND COMMUNITY PROMOTION
GOAL STATEMENT
Strengthen and maintain a business-friendly environment, implement strategies that build upon existing efforts in business retention with a focus on vulnerable sectors and populations, pursue business attraction and commercial development especially on West Grand Avenue, expedite permit processing, and promote tourism and hotel development.
STAFF LEAD(S): Matt Bronson, City Manager; Kristin Eriksson, Assistant City Manager; Megan Martin, Community Development Director
TASK DATE
1. Continue to participate and collaborate with regional partner agencies to identify economic development strategies to support the local and regional economy.
July 2024
2. Work with the Chamber to conduct outreach with local businesses on key issues particularly along West Grand Avenue.
July 2024
3. Coordinate with regional partners and agencies, as well as the Chamber, to attract target industries and business sectors to the industrial area of the city.
July 2025
4. Facilitate opportunities with property owners and landlords to recruit and retain businesses
July 2024
5. Review the City’s Development Code and Economic Development Strategy for opportunities to remove barriers to economic development opportunities in Grover Beach.
July 2025
6. Continue oversight of construction for the mixed-use project at 402 West Grand Avenue and complete review for building permit issuance for mixed-use project at 401 West Grand Avenue along with coordination of opportunities for retail tenants.
June 2024
7. Coordinate development review process for other mixed-use projects along West Grand Avenue corridor.
June 202
8. Complete transition to a new permitting software system (Enterprise, Permitting, & Licensing), enhancing efficiency in permit processing and record-keeping practices.
December 2024
9. Work with outside communications firm to coordinate Visit Grover Beach tourism marketing communications.
June 2024
10. Continue oversight of construction for hotel project at 950 El Camino Real.
January 2025
Attachment 2
MAJOR CITY GOAL FY 2024-25 WORK PROGRAM
ECONOMIC DEVELOPMENT AND COMMUNITY PROMOTION
11. Process building permits for the 1598 El Camino Real hotel project upon submittal by the developer.
August 2024
12. Continue to collaborate with State Parks to assist the Grover Beach Lodge project toward building permit issuance.
January 2025
13. Develop updated Sign Ordinance for Council consideration following public outreach process businesses.
March 2025
14. Conduct outreach and regulatory oversight of the commercial cannabis industry and process development applications; including onsite consumption areas upon submittal
January 2025
KEY POLICY/OPERATIONAL ISSUES
• Ensure alignment and coordination among various economic development policies, strategies, and initiatives at the local and regional level to maximize impact. • Balance the need for regulations to protect public welfare with creating a businessfriendly environment that encourages investment. • Address gaps or deficiencies in infrastructure to support business growth in the community.
• Leverage partnerships between the City, businesses, non-profit organizations, and community stakeholders to drive economic development initiatives, share resources, and achieve common goals.
• Continued City’s involvement with regional economic development strategies to ensure community economic vitality in the future.
• Research and identify data-driven approaches to inform decision-making, identify trends, and evaluate effectiveness of economic development programs outlined in the Economic Development Strategy.
• Continue focus on hotel development projects and the commercial cannabis industry give economic activity and development opportunities along with additional tax revenues.
Agenda Item No. 11
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: October 15, 2024 FROM: Robert Lomeli, City Attorney
PREPARED BY: Robert Lomeli, City Attorney
SUBJECT: Citizen Initiative to Require the Office of City Clerk to be an Elected Position
RECOMMENDATION
Receive a presentation on a citizen initiative to require the office of City Clerk to be an elected position and consider potential action pursuant to California Elections Code.
BACKGROUND
Elected City Clerk Initiative
On March 14, 2024, the City received a Notice of Intention to Circulate Petition from Grover H2O for a proposed local ballot measure to require the City Clerk to be an elected position ("Measure").
Accompanying the Measure was a request to prepare a Ballot Title and Summary. The City Clerk's office immediately transmitted that request to the City Attorney's office in accordance with Elections Code Section 9203, subdivision (a).
The City Attorney prepared and provided the Ballot Title and Summary within the required 15-day timeframe. The Notice of Intention and Ballot Title and Summary were subsequently published as required by law. After the required publication period, Grover H2O was permitted to circulate petitions to gather signatures with a six-month timeframe as prescribed by the Elections Code.
On September 25, 2024, Grover H20 submitted petitions for the Measure to the City Clerk’s office.
Signature Validation and Certification Process
To ensure transparency and avoid any potential allegations of malfeasance, the City recognized a conflict of interest in having the current appointed City Clerk, who acts as the City's election official, validate signatures and certify a petition that directly impacts the City Clerk position. As a result, the City contracted with the City of San Luis Obispo to have their Deputy City Clerk perform the validation of signatures and provide certification for this initiative. The cost of this work totaled approximately $1,000 in staff time. This validation process was done the week of October 7 at the request of the County Clerk’s Office given workload impacts from impending submission of election ballots.
On October 8, 2024, the City of San Luis Obispo, acting on behalf of the City, certified that the petition contained the requisite number of valid signatures as shown in Attachment 1. To qualify for the ballot, the petition needed to have at least 10% of registered voters in Grover Beach or 779 signatures and ultimately had 783 valid signatures out of 912 signatures submitted.
Staff Report: Citizen Initiative to Require the Office of City Clerk to be an Elected Position Page 2 October 15, 2024
Current City Clerk Position
Currently, the office of the City Clerk in Grover Beach is an appointed position. The City Clerk has been an appointed position since the City's incorporation in 1959, a practice the City shares with all cities in San Luis Obispo County. Of the 483 cities in California, 338 or approximately 70% have appointed City Clerks and there has been a trend over time of cities moving away from elected City Clerk positions to appointed positions. This approach enables cities to openly recruit individuals who have the technical qualifications and skills necessary for this appointed role to best serve the needs of the City.
Proposed Changes
The proposed initiative would change the office of City Clerk from an appointed position to an elected one. Key points of the initiative include:
1. The City Clerk would become an elected position.
2. Within 90 days of the adoption of the Measure, the City Council would be required to call a special election to fill the office of City Clerk until the next succeeding General Municipal Election.1
3. At the next succeeding General Municipal Election, the election for City Clerk would be for a full four-year term of office.
4. Subsequent elections for City Clerk would be held every four years thereafter.
The qualifications required for an elected City Clerk would be that the candidate must be at least 18 years of age, a registered voter of the City, and a resident of the City.
Council Action
Pursuant to California Elections Code Section 9215, the Council must now take one of the following actions:
1. Adopt the proposed ordinance, without alteration, thus changing the City Clerk position from appointed to elected (See Attachment 2);
2. Adopt a resolution calling an election to submit the initiative measure to the voters at the next general municipal election on November 3, 2026, and direct that the City Attorney prepare an impartial analysis of the initiative (See Attachment 3);
3. Direct City staff to provide a report, as specified in Elections Code Section 9212, and direct that the City Attorney also prepare an impartial analysis of the initiative. Such a report would then be required to be presented to the Council within 30 days, on or before November 14, 2024. Upon presentation of the report to the Council, the Council must then either adopt the ordinance within 10 days or submit the proposed Initiative Measure to the voters at the general municipal election on November 3, 2026. 1 The current estimated cost for the City to hold a special election is at least $300,000 based on cost estimates provided by the County Clerk’s Office.
Staff Report: Citizen Initiative to Require the Office of City Clerk to be an Elected Position Page 3 October 15, 2024
Timeline Analysis
Below is a summary of the complex timeline implications of this initiative:
1. Initial Vote on the Initiative:
a. According to Grover Beach Municipal Code section 2350, the City's General Municipal Election is held on the same day as the Statewide General Election, which occurs on the first Tuesday after the first Monday of November in even-numbered years. The next such election is scheduled for November 3, 2026.
b. Unless the City Council specifically calls for a special election, the initiative must be placed on the November 3, 2026 ballot, as per Elections Code section 1405(a).
2. Special Election Provision:
a. The initiative's special election provision only takes effect after the initiative is adopted by voters. It does not affect the initial voting timeline for the initiative itself. b. If the initiative passes in the November 2026 election, the 90-day clock for calling a special election to fill the City Clerk position would start from the date the voting results are declared/certified by the legislative body, which would likely occur in midNovember 2026.
3. Potential Timeline if Initiative Passes:
a. Assuming the vote is declared within a week of the election, the initiative would go into effect around mid-November 2026.
b. The special election to fill the City Clerk position must be called by mid-February 2027 (90 days after adoption).
c. The special election must be held on the next lawfully available established election date, which would be March 7, 2027.
d. To comply with Elections Code section 1405(b), which requires a special election to occur between 88 and 103 days from when it is called, the City Council would need to call the election between November 24, 2026, and December 9, 2026.
This timeline analysis demonstrates that even if the Council decides to place the initiative on the ballot, the actual implementation of an elected City Clerk position, if approved by voters, would not occur until early 2027 at the earliest.
FISCAL IMPACT
The fiscal impact of adopting this measure or placing it on the ballot has not yet been fully analyzed. If the Council chooses to order a report under option 3, above, a detailed fiscal analysis would be included in that report. Potential fiscal impacts to consider include:
Staff Report: Citizen Initiative to Require the Office of City Clerk to be an Elected Position Page 4 October 15, 2024
1. Costs associated with holding elections for the City Clerk position every four years.
2. Potential changes in compensation and benefits for an elected City Clerk compared to an appointed one.
3. Costs associated with training and professional development of a potentially less experienced elected City Clerk.
4. Potential inefficiencies or additional staffing needs if an elected City Clerk does not possess the necessary qualifications or experience.
5. Costs associated with holding a special election in March 2027 if the initiative passes in November 2026. It is estimated that this special election would cost at least $300,000 as noted earlier.
Beyond the ongoing costs, the estimated $300,000 minimum cost for the potential special election in March 2027 if the initiative passes represents a significant one-time expense that will need to be factored into the City's upcoming two-year budget. This funding would come from the General Fund which is also used to fund most City services and many capital improvement projects. Staff would also note that the actual cost in 2027 may be higher as the $300,000 estimate is based on current estimates which could increase in three years.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt the proposed ordinance, without alteration, thus changing the City Clerk position from appointed to elected; or
2. Adopt a resolution calling an election to submit the initiative measure to the voters at the next general municipal election on November 3, 2026, and direct that the City Attorney prepare an impartial analysis of the initiative; or
3. Refer the proposed initiative measure to City staff for a report, as specified in Elections Code Section 9212, to be presented within 30 days, and direct the City Attorney to prepare an impartial analysis of the initiative.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Certification of Sufficiency of Initiative Petition
2. Draft Ordinance for Adoption of Initiative
3. Draft Resolution Calling for Election and Ordering Impartial Analysis Office of the City Clerk
990 Paln Street, San Luis 0bispo, CA 93401 -321 B
805.781.7100
slocity.org
CERTIFICATE OF SUFFICIENCY OF PETITION
l, Megan Wilbanks, Deputy City Clerk of the City of San Luis Obispo, County of San Luis Obispo, State of California, hereby certify that:
The petition entitled'lNlTlATlVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS; A Citizen's lnitiative Measure to Require that the City Clerk be an Elected Position" was filed with the Grover Beach City Clerk Department on September 25,2024; and That each section contains signatures purporting to be signatures of qualified electors of the City of Grover Beach, California; and
That attached to this petition at the time it was filed, was an affidavit purporting to be the affidavit of the person who solicited the signatures, and containing the dates between which the purported qualified electors signed this petition; and
That the affiant stated his or her own qualification, that he or she had solicited the signatures upon that Section, that all of the signatures were made in his or her presence, and that to the best of his or her own information and belief, each signature to that section was the genuine signature of the person whose name it purports to be; and
That after the proponents filed this petition and based on the County of San Luis Obispo Registrar of Voters' Signature Verification Certificate, attached hereto, I have determined the following facts regarding this petition:
1. Total number of signatures filed by proponent raw count 2. Total number of signatures verified 3. Number of signatures found sufficient 4. Number of signatures found insufficient
5. Number of signatures insufficient because of duplication
6. Total number of signatures required
912
912
783
129
35 779
Based on the above, the petition is deemed to be sufficient lN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo this 9th day of October 2024
Megan Wilbanks, Deputy City Clerk
City of San Luis Obispo
NI,
C)
+
Attachment:
County of San Luis Obispo Registrar of Voters' Signature Verification Certificate Attachment 1
ffi Petiti o n Resulf B reakdown
Signatures Required
Raw Count
Sample Size
Sigs Checked
Sigs Not Checked
Sigs Valid
Sigs lnvalid
Duplicated
Non-duplicate lnvalids
779
912
912
912
0 783
129
35 94
Percenl ofSrgs
Checked
85.9 %
14.1%
3.8%
10.o%
Percent of
Samp/e Sze
0.0%
85.9 %
14.1%
3.8%
10.3%
Approved
NotReg
RegDiffAdd
SigNoMatch
Duplicate
lllegible
Declncmp
\Mthdrawn
Approved
Not Registered
Registered at a DifferentAddress
Signatures Don't Match
Signed more than once
lllegible signer information
Declaration lncomplete
Wthdrdwn
783
38 18
20 35
2 14
2 85.9%
4.2%
2.0%
2.2%
3.8%
0.2%
1.5%
0.2%
Pages Processed
Total Checked
Uncorrected Valid
Duplicate Adjustment
Estimated Valid
140
9',12
783
0 783
100.0 %
100.0 %
85.9 %
117.1 %
100.5 % Min Required {95%):
Min Required to pass
Based on Sample (110%):
740.1
856.9
85.9 % 100.s %
PCMRO12 - Petition Result Breakdown
Printed: 10/8/2024 2:41:27PM
ORDINANCE NO. 24-___
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH,
CALIFORNIA, ADOPTING THE PROVISIONS OF AN INITIATIVE MEASURE
REQUIRING THAT THE OFFICE OF CITY CLERK BE AN ELECTED POSITION WHEREAS, On December 28, 1959, the City Council of the City of Grover Beach (then Grover City) approved and adopted Resolution No. 1, appointing a City Clerk to ensure that the affairs of the City would be properly administered;
WHEREAS, on March 14, 2024, the proponents of the initiative measure submitted a Notice of Intention to Circulate Petition for a proposed ballot measure to require that the Office of the City Clerk be an elected position;
WHEREAS, on September 25, 2024, the proponents of the initiative to require that the Office of the City Clerk be an elected position submitted petition signatures to the City Clerk, which signatures the City Clerk accepted;
WHEREAS, on October 8, 2024, the City Clerk for the City of San Luis Obispo certified that the initiative petition qualified with the requisite number of sufficient valid signatures; WHEREAS, on October 15, 2024, the City Council accepted the Certificate of Sufficiency of the Initiative Petition issued by the City Clerk of San Luis Obispo; and WHEREAS, California Constitution Article II, Section 10 and California Elections Code section 9217 authorize the City Council to adopt without alteration the proposed initiative measure to require that the Office of the City Clerk be an elected position.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. The Office of the City Clerk shall be an elected position. This measure supersedes and repeals any prior question approved by voters designating the office as appointive.
SECTION 2. The City Clerk shall be the city elections official having jurisdiction over elections and related matters within the city.
SECTION 3. Within ninety days of the adoption of this Measure, the City Council shall call a special election to be held on the next lawfully available established election date pursuant to Chapter 4 of Division 1 of California Elections Code, which may be consolidated with any other election as provided by law, to fill the office of City Clerk until the next succeeding General Municipal Election.
SECTION 4. At the next succeeding General Municipal Election referenced in Section 3 of this Measure, the election for City Clerk shall be for a full four-year term of office. The election of the City Clerk shall be held every four years thereafter as provided by law.
SECTION 5. This measure may not be amended, except upon voter approval.
Attachment 2
SECTION 6. Each provision of this ordinance is severable, and the invalidity of any section or part thereof shall not affect the validity of its other provisions.
INTRODUCED at a regular meeting of the City Council held on October 15, 2024 and PASSED, APPROVED, and ADOPTED by the City Council on the October 15, 2024, on the following roll call vote, to wit:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
RECUSED: Council Members -
_____________________________
KAREN BRIGHT, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK
Approved as to Form:
_____________________________
ROBERT LOMELI, CITY ATTORNEY
**DRAFT**
RESOLUTION NO. 24-___
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA, SUBMITTING TO THE VOTERS AT THE
GENERAL MUNICIPAL ELECTION ON NOVEMBER 3, 2026, AN
INITIATIVE MEASURE REQUIRING THAT THE OFFICE OF CITY CLERK
BE AN ELECTED POSITION
WHEREAS, the City Council of the City of Grover Beach will call a General Municipal Election to be held in the City of Grover Beach on Tuesday, November 3, 2026; WHEREAS, an initiative petition requiring the Office of the City Clerk be an elected position (hereinafter referred to as “Initiative Measure” or “Initiative Petition”) has been submitted to the City in accordance with the requirements of the California Elections Code;
WHEREAS, on October 15, 2024, the City Council accepted the Certificate of Sufficiency of the Initiative Petition issued by the City Clerk of San Luis Obispo; WHEREAS, on October 15, 2024, the City Council voted to submit to the electors of the City of Grover Beach the Initiative Measure at the general municipal election, scheduled on November 3, 2026.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GROVER
BEACH, CALIFORNIA, DOES DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. Initiative Measure Submitted to Voters at General Municipal Election. A regularly scheduled general municipal election shall be called for the City of Grover Beach to be held on Tuesday, November 3, 2026. The following question is submitted to the voters at the election:
CITY OF GROVER BEACH
INITIATIVE MEASURE _____
Shall the current appointive Office of the City
Clerk be required to be an elected position?
YES
NO
Attachment 3
SECTION 2. Adoption of Measure. The full text of the measure to be submitted to the voters is as follows:
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
TO REQUIRE THE OFFICE OF THE CITY CLERK TO BE AN ELECTED
POSITION
THE PEOPLE OF THE CITY OF GROVER BEACH DO ORDAIN AS
FOLLOWS:
SECTION 1. The Office of the City Clerk shall be an elected position. This measure supersedes and repeals any prior question approved by voters designating the office as appointive.
SECTION 2. The City Clerk shall be the city elections official having jurisdiction over elections and related matters within the city.
SECTION 3. Within ninety days of the adoption of this Measure, the City Council shall call a special election to be held on the next lawfully available established election date pursuant to Chapter 4 of Division 1 of California Elections Code, which may be consolidated with any other election as provided by law, to fill the office of City Clerk until the next succeeding General Municipal Election.
SECTION 4. At the next succeeding General Municipal Election referenced in Section 3 of this Measure, the election for City Clerk shall be for a full four-year term of office. The election of the City Clerk shall be held every four years thereafter as provided by law.
SECTION 5. This measure may not be amended, except upon voter approval.
SECTION 6. Each provision of this ordinance is severable, and the invalidity of any section or part thereof shall not affect the validity of its other provisions.
If a majority of qualified electors voting on such measure shall vote in favor of City of Grover Beach Initiative Measure “____”, it shall be deemed ratified and shall read as provided above.
SECTION 3. Notice of Election. Notice of the time and place of holding the election is hereby given, and the City Clerk is authorized, instructed and directed to give further or additional notice of the election in time, form, and manner as required by law.
SECTION 4. Impartial Analysis. The City Council hereby directs the City Clerk to transmit a copy of the City Attorney’s prepared impartial analysis of the measure, showing the effect of the measure on the existing law and the operation of the measure, and to provide such as required to the San Luis Obispo County Registrar of Voters.
SECTION 5. Ballot Arguments. Arguments in favor of or against the measure shall be submitted within the timelines proscribed within California Elections Code section 9286.
SECTION 6. Rebuttal Arguments. Rebuttal arguments shall be controlled by the provisions of Elections Code section 9285.
SECTION 7. Duties of City Clerk. The Grover Beach City Clerk shall do all things required by law to effectuate the November 3, 2026, general municipal election, including but not limited to causing the posting, publication and printing of all notices or other election materials under the requirements of the California Elections and Government Codes.
SECTION 8. Non-substantive Changes. The City Attorney is authorized to make any non-substantive changes and/or to correct minor administrative, procedural and clerical errors necessary to ensure the initiative measure is placed on the ballot for the November 3, 2026, general municipal election.
SECTION 9. Transmittal of Resolution. The City Clerk is hereby directed to submit a certified copy of this resolution to the Board of Supervisors and Registrar of Voters of the County of San Luis Obispo.
On motion by ____________, second by ____________, and on the following roll-call vote, to wit:
AYES: Council Members -
NOES: Council Members -
ABSENT: Council Members -
ABSTAIN: Council Members -
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 15th day of October 2024.
________________________________
KAREN BRIGHT, MAYOR
Attest:
______________________________
WENDI SIMS, CITY CLERK