Agenda packet — Guadalupe City Council, September 12, 2023 (part 4 of 4)

Agenda Item No. 12

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of September 12, 2023
__________________________________
Prepared by:

Todd Bodem, City Administrator
SUBJECT: Resolution No. 2023-70 approving the Community Benefits Agreement between the City of Guadalupe and Element 7 Guadalupe LLC, dba Element 7 RECOMMENDATION:

That the City Council adopt Resolution No. 2023-70, approving the Community Benefits Agreement by and between the City of Guadalupe, a municipal corporation of the State of California (“City”) and Element 7 Guadalupe LLC, a California corporation (“Operator”), located at 859 Guadalupe Street, Guadalupe, CA 93434 (the “Site”).

BACKGROUND:

On May 25, 2021, the City Council adopted Ordinance No. 2021-494 (“the Cannabis Ordinance”), establishing Chapter 9.22 of the Guadalupe Municipal Code (“GMC”) relating to the operation of commercial cannabis business activity in the City of Guadalupe. The Cannabis Ordinance establishes the operational requirements with which all commercial cannabis businesses in the City must comply.

Along with meeting the requirements of the Cannabis Ordinance, the operator of each cannabis business must also enter into an operational or community benefit agreement with the City setting forth additional terms and conditions under which the cannabis facility will operate. Such additional terms and conditions may include, but are not limited to, providing public outreach and education, community service, payment of fees and other charges as mutually agreed, and other terms and conditions to protect and promote the public health, safety and welfare of the City and its residents.

On November 12, 2021, Element 7 Guadalupe LLC submitted an application to the City of Guadalupe for a cannabis business consisting of a storefront retail license located at 859 Guadalupe Street. A cannabis storefront retailer is also allowed to conduct sales via delivery to residences under the same license from the Department of Cannabis Control. Element 7 Guadalupe LLC proposes to conduct both storefront sales and delivery operations as allowed by their license type.

As a part of the application vetting and selection process, Element 7 Guadalupe LLC was required to include in its application a description of the community benefits it was willing to offer to the City.

Element 7 Guadalupe LLC’s application was vetted by the City Administrator and presented to the City

Page 2 of 3 ends

Council for final selection and authorization to complete the process for obtaining a cannabis business permit.

DISCUSSION:

The proposed community benefits being offered by Element 7 Guadalupe LLC have been incorporated into the attached Community Benefits Agreement (“the Agreement”). If approved by the Council, the enumerated community benefits shall become enforceable conditions of approval and made part of the Cannabis Business Permit (CBP) granted to Element 7 Guadalupe LLC. Any breaches of this Agreement shall be deemed violations of Element 7 Guadalupe LLC’s CBP.

The community benefits being proposed by Element 7 Guadalupe LLC are summarized below and are described in greater detail in the attached Agreement.

Public Benefit Fee
The business shall be subject to a fee of four percent (4%) on the gross receipts of all retail cannabis sales. The obligation to pay the Public Benefit fee shall cease if the City of Guadalupe implements a voterapproved cannabis business tax in the future.

Community Benefits
Operator Element 7 Guadalupe LLC shall implement its Community Benefit Program within 3 months of the effective date of the Agreement and shall maintain that program for the entire term of the Agreement. The Community Benefit Program shall include all of the following required benefits:
• Support for Local Non-Profits – Operator shall annually donate an amount not less than $50,000 to local non-profits.
• Community Advisory Board – Operator shall establish and maintain a Community Advisory Board comprised of 5 community leaders. The Board shall oversee all community integration efforts and support the Operator’s outreach and service with the local community, the impact of financial donations, and the community groups that most need support. • Impacting Homelessness – Operator shall annually provide an amount not less than $5,000 to support programs focused on helping with homeless issues in Guadalupe. • Local Product and Supplier Sourcing Program – Operator shall annually demonstrate that they have sourced at least 75% of all building, construction, equipment, repairs and maintenance services from local businesses.
• Local Community Engagement Manager – Operator shall appoint a Local Community Engagement Manager who shall be present for all key business decisions to ensure that all commitments to the community are funded and executed.
• Stock Option Plan – Operator shall commit up to 3% of common shares in the company to be allocated as stock options. Employees eligible for stock options shall include key staff, executives and staff serving longer than 24 months.
• Staff Volunteer Program – Operator shall require all full-time staff to contribute at least 10-hours quarterly (40 hours per year) to local causes or charities, at operator’s expense. These hours may be contributed as either hands-on volunteering or as pro-bono support services.

Page 3 of 3 ends

• Medical Cannabis Discount Program – Operator shall give away, or allow for heavily discounted, medical cannabis and cannabis goods for sick or low-income medical patients. Participants in the discount program will receive 5 grams of mixed shake or a 20% discount on medical cannabis purchased, up to 28g total of THC and 50mg of CBD per month. Operator shall offer medical cannabis, education, and discounts to veterans living in and around Guadalupe. • Craft Cannabis Producers Program – Operator shall annually demonstrate that they have sourced product from local and small craft and boutique cannabis farmers and manufacturers. • Cannabis Criminalization Reform and NDICA Partnership – Operator shall partner with NDICA (National Diversity and Inclusion Cannabis Alliance) to sponsor and host one (1) expungement clinic in Guadalupe annually. Operator shall partner with Latinos 4 Cannabis to create preferred job placements, job fairs, and training programs for cannabis entrepreneurs. • Environmentally Sustainable Business Practices – Operator shall demonstrate that they have incorporated environmentally sustainable business practices into the design and operation of their facility.
• Public Health Outreach and Education – Operator shall demonstrate that they have reached out to local education, youth, and law enforcement groups to provide monetary resources or educational materials for local youth on the dangers of substance abuse. • Community Engagement Events – Operator shall demonstrate that they have proactively engaged with the local community to provide cannabis education through outreach and partnerships with non-profit organizations, municipal agencies and neighborhood groups.

FISCAL IMPACT:

Element 7 LLC, the business, shall be subject to a fee of four percent (4%) on the gross receipts of all retail cannabis sales. The business shall also implement its Community Benefit Program which will have direct and indirect financial benefit to the city.

ATTACHMENTS:

1. Community Benefit Agreement

2. Resolution No. 2023-70

RECORDING REQUESTED BY,
AND WHEN RECORDED, MAIL TO:

City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Attn: City Clerk
_____________________________________________________________________________________

COMMUNITY BENEFIT AGREEMENT
This Community Benefit (“Agreement”) is made and entered into this 12th day of September 2023, by and between the City of Guadalupe, a municipal corporation of the State of California (“City”) and Element 7 Guadalupe LLC, a California limited liability company (“Operator”), located at 859 Guadalupe Street, Guadalupe, CA 93434 (the “Site”). City and Operator may be referenced herein as “Party” or collectively as “Parties”.

RECITALS
A. On May 25, 2021, by Ordinance No. 2021-494, the City Council adopted Chapter 9.22 of the Guadalupe Municipal Code (“GMC”) relating to the operation of commercial cannabis business activity.

B. On November 12, 2021, Operator submitted an application to the City of Guadalupe for a cannabis business consisting of an adult-use storefront retail license located at 859 Guadalupe Street, Guadalupe, CA 93434.

C. Pursuant to the process established in Chapter 9.22 of the GMC and in accordance with the Application Procedures and Guidelines for a Commercial Cannabis Business Permit adopted by the City Council, the Operator’s application was vetted by the City Administrator, and presented to the City Council for final selection and authorization to complete the process for obtaining a cannabis business permit (“CBP”).

D. As part of the application vetting and selection process, the Operator was required to include in its application a description of the community benefits it was willing to offer to the City and its citizens for the opportunity to open and operate a cannabis business in the City.

E. Pursuant to Section 9.22.110 of the GMC, “any community benefits that a cannabis business agrees to provide shall be incorporated into the terms and conditions under which the cannabis business will operate with the City's approval, if and when a cannabis business permit is issued.” F. Furthermore, pursuant to Section 9.22.370 of the GMC, “prior to operating in the City and as a condition of issuance of a cannabis business permit, the operator of each cannabis facility shall enter into an operational or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.” G. Operator’s application included a description of such community benefits and this Agreement is being entered into to memorialize that commitment. This Agreement and its terms and conditions are incorporated into the conditions of approval made part of the CBP granted to the Applicant, and the Applicant’s breaches of this Agreement shall be deemed violations of said CBP.

ATTACHMENT 1
H. This Agreement satisfies the condition of issuance set forth in Sections 9.22.110 and 9.22.370 of the GMC.

I. On August 22, 2023, the City Council reviewed, considered, and adopted Resolution No. 2023-70 approving this Agreement.

AGREEMENT

1. Recitals. The Recitals set forth above are incorporated herein as if fully set forth in this Agreement.

2. Exhibits. The following “Exhibits” are attached and incorporated into this Agreement:

Designation Description
Exhibit A Physical location of the Operator’s Business Operations Exhibit B Public Benefit Fee Terms

3. Definitions. All definitions appearing in Section 9.22.060 of the GMC are hereby incorporated by reference. In addition, the following terms shall have the meanings specified below when used in this Agreement:
a. Agreement—This Operating Agreement between the City and Operator, inclusive of all Exhibits attached hereto.
b. Annual – Once every year, beginning one year after issuance of the cannabis business permit. c. Applicable Law—All applicable federal, state, regional, and local statutes, regulations, and rules including the Uniform Building Code and other Uniform Codes, the California Environmental Quality Act, the City’s ordinances, resolutions, rules, and regulations, as each statute, regulation, rule, Code, ordinance, and resolution may be amended from time to time, excluding such federal law which may conflict with state or local laws authorizing cannabis businesses or operations.
d. Business Operations—The cannabis business operated at the Site by Operator, its officers, officials, employees, agents, and consultants, as approved by the City Council, and as subject to the terms and conditions of this Agreement.
e. Fees—All charges, expenses, costs, monetary exactions, and any other monetary obligations imposed on Operator by City, other than assessments or regular or special taxes, and not limited to fees paid pursuant to this Agreement.
f. Major Amendment—Any modification to this Agreement that makes a substantive change, modification, or deviation in the terms of this Agreement or any Exhibits hereto. g. Minor Amendment—Any modification to this Agreement that does not make a substantive change, modification, or deviation in the terms of this Agreement or any Exhibits hereto. h. Operation—any act for which licensure is required under Chapter 9.22 of the GMC, or any commercial transfer of cannabis or cannabis products.
i. Person—an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.
j. Site—The physical location of the Operator’s Business Operations, as described in Exhibit A, attached hereto.

GENERAL PROVISIONS

1. Applicability. This Agreement is only valid for the cannabis storefront retail business located at 859 Guadalupe Street, Guadalupe, CA 93434 as shown on Exhibit A. The Agreement is valid only at the specified location and is granted only to the business owners as specified in the CBP application submitted by Element 7 Guadalupe LLC (“Operator”). Any changes to the business ownership of the Operator are subject to the requirements of Section 9.22.280 of the GMC.

2. Assignment. City has entered into the Agreement with Operator in reliance upon Operator’s specialized knowledge, experience, and expertise relating to the commercial cannabis business activity. Therefore, this Agreement may not be assigned or otherwise transferred by Operator, whether to a third party or to another entity (even if Operator is an Owner, partner, or otherwise a participant in such entity), without the prior written authorization of the City. Any such assignment or transfer, at City’s sole discretion, may be considered Evidence of Default. Should Operator wish to assign or otherwise transfer the Agreement, Operator shall provide evidence to the reasonable satisfaction of the City Administrator and the City Attorney of the specialized knowledge, experience, expertise, and financial stability of the proposed assignee or transferee prior to review and possible approval by the City Council.

3. Effective Date. This Agreement shall be effective as of the date of issuance of the CBP.

4. Term of Agreement. The initial term of this Agreement shall be 10 years, with two (2) possible extensions of five (5) years each. This Agreement may be extended further by mutual agreement of the Operator and the City Council on such additional terms and conditions as to which the Parties may agree. The Parties agree that, prior to the end of the initial 10-year term, they will meet and confer in good faith with the goal either of continuing this Agreement on the same terms and conditions or of modifying the Agreement so that the Business Operations may continue for the mutual benefit of the City and the Operator.

5. Termination. This Agreement may be terminated upon mutual written agreement by both Parties.

Termination of this Agreement shall not eliminate the right of both Parties to seek any applicable and available remedies or damages, based upon acts or omissions occurring before termination.

6. Amendments. This Agreement shall be amended only by mutual consent of the Parties. All amendments shall be in writing. The City Council hereby expressly authorizes the City Administrator to approve Minor Amendments to this Agreement (e.g., change of notice address). Major Amendments to this Agreement shall be approved by the City Council. The City Administrator shall, on behalf of City, have sole discretion on behalf of the City to determine if an amendment is Minor or Major, and may consult with the City Attorney before making this determination. Nothing in this Agreement shall be construed as requiring a noticed public hearing, unless required by law.

7. Indemnification. Operator agrees to indemnify, defend, and hold harmless City, its officers, officials, employees, agents, and consultants from any and all administrative, legal, or equitable actions, claims, or other proceedings instituted by any person or entity not a party to the Agreement challenging the validity of the Agreement or any action arising out of or relating to the Agreement. Operator shall pay for City’s costs of defense, whether directly or by timely reimbursement on a monthly basis. Such costs shall include, but not be limited to, all court costs and attorney’s fees expended by the City in defense of the action or proceeding, plus staff and consultant time spent in regard to defense of the action or proceeding. The parties shall use best efforts to select mutually agreeable defense counsel but, if the parties cannot reach agreement, City may select its own legal counsel and Operator agrees to pay directly or timely reimburse on a monthly basis City for all such court costs, attorney’s fees and time referenced herein.

Operator further agrees to indemnify, defend, and hold harmless City, its officers, officials, employees, agents, and consultants from any and all claims, costs, and liability for any damages, personal injury or death, or property damage which may arise directly or indirectly from Operator’s Business Operations pursuant to this Agreement, except as caused by City’s sole or gross negligence.

8. Notices. Any notice or communication required by the Agreement between the parties shall be in writing and may be delivered either personally or by registered mail, return receipt requested. Notice, whether given by personal delivery or by registered mail, shall be deemed to have been given and received on the day of actual receipt at any of the addresses designated below as to the party to whom the notice is sent. Any party hereto may at any time, upon written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. However, should a party’s address no longer be valid such that delivery by registered mail, return receipt required, is not successful, then delivery by U.S. mail shall be effective five business days after mailing of notice. Such notices or communications shall be given to the parties at the addresses set forth below:

To the City of Guadalupe:

City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Attn: City Administrator
With a copy to (which shall not constitute notice):

City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Attn: City Attorney
To Operator:

Robert M. DiVito
PO Box 388
San Francisco, CA 94104
[email protected]
With a copy to (which shall not constitute notice):

Element 7 Guadalupe LLC
859 Guadalupe Street
Guadalupe, CA 93434
Attn: Business Counsel

PUBLIC BENEFIT FEE

1. Acknowledgment. The Parties acknowledge and agree that this Agreement confers substantial private benefits upon Operator that will place burdens upon City infrastructure, services, and neighborhoods.

Accordingly, the Parties intend to provide consideration to City that are commensurate with the private benefits conferred on Operator (the “Public Benefit”).

2. Public Benefit Agreement. In consideration of the forgoing, Operator has agreed to pay the Public Benefit fee identified in Exhibit B. The terms and conditions contained in Exhibit B are incorporated into this Agreement.

3. Implementation of Cannabis Tax. Operator’s obligation to pay the Public Benefit fee shall cease if the City of Guadalupe implements a tax, specifically applied to commercial cannabis businesses.

COMMUNITY BENEFITS

1. Community Service Program Agreement. Operator agrees to implement and maintain for the entirety of the term of this Agreement a Community Benefit Program (“Community Program”) to benefit the City and its residents and to foster equitable participation in the cannabis industry. Operator shall initiate its Community Program within three months of this Agreement’s Effective Date and shall maintain that program for the entire term of the Agreement.

2. Written Plan. Operator has submitted, as part of its permit application, a written Community Benefit Plan (“Community Plan”). The Community Plan was used to develop the list of Required Benefits described below. Operator shall provide an annual report to the City Administrator and City Attorney on its progress in carrying-out the Community Program’s goals and measurable outcomes. Upon request of the City Administrator or City Attorney, Operator shall also agree to provide a presentation to the City Council on the Community Program’s goals and measurable outcomes. The Required Benefits may be modified in writing by request of the Operator and approval of the City Administrator or the City Attorney.

3. Required Benefits. The Operator has committed to providing the following benefits:
a. Support for Local Non-Profits – Operator shall annually donate an amount not less than $50,000 (cash and other monetary benefits collectively) to the following local non-profit organizations:
i. Any other mutually agreed upon nonprofit
ii. Guadalupe Bulldogs Youth Football
iii. Guadalupe Cultural Arts and Education Center
iv. Vietnam Veterans of America Chapter 982
Community Advisory Board – Operator shall establish and maintain a Community Advisory Board comprised of 5 community leaders. The Board shall oversee all community integration efforts and support the Operator’s outreach and service with the local community, the impact of financial donations, and the community groups that most need support. b. Impacting Homelessness – Operator shall annually provide an amount not less than $5,000 to support programs focused on helping with homeless issues in Guadalupe. c. Local Product and Supplier Sourcing Program – Operator shall annually demonstrate that they have sourced at least 75% of all building, construction, equipment, repairs and maintenance services from local businesses.
d. Local Community Engagement Manager – Operator shall appoint a Local Community Engagement Manager who shall be present for all key business decisions to ensure that all commitments to the community are funded and executed.
e. Stock Option Plan – Operator shall commit up to 3% of common shares in the company to be allocated as stock options. Employees eligible for stock options shall include key staff, executives and staff serving longer than 24 months.
f. Staff Volunteer Program – Operator shall require all full-time staff to contribute at least 10- hours quarterly (40 hours per year) to local causes or charities, at operator’s expense. These hours may be contributed as either hands-on volunteering or as pro-bono support services. g. Medical Cannabis Discount Program – Operator shall give away, or allow for heavily discounted, medical cannabis and cannabis goods for sick or low-income medical patients.

Participants in the discount program will receive 5 grams of mixed shake or a 20% discount on medical cannabis purchased, up to 28g total of THC and 50mg of CBD per month. Operator shall offer medical cannabis, education, and discounts to veterans living in and around Guadalupe.
h. Craft Cannabis Producers Program – Operator shall annually demonstrate that they have sourced products from local and small craft and boutique cannabis farmers and manufacturers.
i. Cannabis Criminalization Reform and NDICA Partnership – Operator shall partner with NDICA (National Diversity and Inclusion Cannabis Alliance) or another similar group to sponsor and host one (1) expungement clinic in Guadalupe annually. Operator shall partner with Latinos 4 Cannabis to create preferred job placements, job fairs, and training programs for cannabis entrepreneurs.
j. Environmentally Sustainable Business Practices – Operator shall demonstrate that they have incorporated environmentally sustainable business practices into the design and operation of their facility.
k. Public Health Outreach and Education – Operator shall demonstrate that they have reached out to local education, youth, and law enforcement groups to provide monetary resources or educational materials for local youth on the dangers of substance abuse. l. Community Engagement Events – Operator shall demonstrate that they have proactively engaged with the local community to provide cannabis education through outreach and partnerships with non-profit organizations, municipal agencies and neighborhood groups.

DEFAULT

1. Default. The failure by any Party to perform in accordance with the terms and provisions of this Agreement shall constitute a default. Any Party alleging a default or breach of this Agreement (“Charging Party”) shall give the other Party (“Charged Party”) not less than thirty (30) calendar days written notice, which shall specify the nature of the alleged default and the manner in which the default may be cured. During any such thirty (30) calendar day period, the Charged Party shall not be considered in default for purposes of termination of this Agreement or institution of legal proceedings for the breach of this Agreement.

2. Legal Proceedings. After expiration of the thirty (30) calendar day period, if such default has not been cured or is not in the process of being diligently cured in the manner set forth in the notice, or if the breach cannot reasonably be cured within thirty (30) calendar days, the Charging Party may, at its option, institute legal proceedings pursuant to this Agreement or give notice of its intent to terminate this Agreement.

3. Periodic Review. Evidence of default may arise in the course of a periodic review of this Agreement.

If any Party determines that another Party is in default following the completion of a periodic review, said Party may give written notice of termination of this Agreement, specifying in the notice the alleged nature of the default and potential actions to cure said default where appropriate. If the alleged default is not cured in thirty (30) calendar days or within such longer period specified in the notice or the defaulting Party is not diligently pursuing a cure or if the breach cannot reasonably be cured within the period or the defaulting party waives its right to cure such alleged default, this Agreement may be terminated by the non-defaulting Party by giving written notice.

4. Permit Issuance and Renewal. In the event Operator is in default under the terms and conditions of this Agreement, no permit application shall be accepted or renewed by the City nor will any permit be issued or renewed to Operator until the default is cured, or the Agreement is terminated.

STANDARD TERMS AND CONDITIONS

1. Venue. Venue for all legal proceedings shall be in the Superior Court of California in and for the County of Santa Barbara.

2. Waiver. All waivers must be in writing to be effective or binding upon the waiving party and no waiver shall be implied from any omission by a party to take or not take any action with respect to default or other matters. Failure by a party to insist upon the strict performance of any provisions of the Agreement by the other party shall not constitute waiver of such party’s right to demand strict compliance by the other party in the future. Furthermore, no express written waiver of any default shall affect any other default or cover any other period of time specified in such express waiver.

3. Completeness of Instrument. This Agreement, together with its specific references, attachments, and Exhibits, constitutes all of the agreements, understandings, representations, conditions, warranties, and covenants made by and between the Parties hereto. Unless set forth herein, no Party to this Agreement shall be liable for any representations made, express or implied.

4. Supersedes Prior Agreement. It is the intention of the Parties hereto that this Agreement shall supersede any prior agreements, discussions, commitments, or representations, written, electronic, or oral, between the Parties hereto with respect to the Business Operations.

5. Captions. The captions of this Agreement are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Agreement.

6. Number and Gender. In this Agreement, the neuter gender includes the feminine and masculine, and the singular includes the plural.

7. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory. "May" or "can" are permissive.

8. Term Includes Extensions. All references to the Term of this Agreement shall include any extensions of such Term.

9. Counterparts. This Agreement may be executed simultaneously, and in several counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.

10. Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement.

11. Time is of the Essence. Time is of the essence in this Agreement in each covenant, term, and condition herein.

12. Authority. All Parties to this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

13. Document Preparation. This Agreement will not be construed against the Party preparing it, but will be construed as if prepared by all Parties.

14. Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.

15. Attorney's Fees and Costs. If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees and costs, which may be set by the court in the same action or in a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

16. Calculation of Time Periods. All time referenced in this Agreement shall be calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the last day shall be the next business day.

17. Full Force and Effect. If any term, provision, covenant, or condition of this Agreement is held by court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of the Agreement shall continue in full force and effect, unless enforcement of the Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances or would the frustrate the purpose of the Agreement.

18. Limitations. The Parties shall take all steps reasonable and necessary to effectuate the terms and intent of the Agreement. However, no provision of the Agreement shall limit, or be construed to limit, the right of the City, the City Administrator, the City Attorney, or the City Council to exercise discretion as to the Agreement or other matters.

19. Partners. The Parties are not, and shall not be construed, to be partners or joint ventures.

20. Third Parties. The only parties to the Agreement are City and Operator. There are no third-party beneficiaries and the Agreement is not intended, and shall not be construed, to benefit or be enforceable by any other person whatsoever.

EXECUTED AS OF August 22, 2023.
[SIGNATURES ON THE NEXT PAGE]

CITY OF GUADALUPE OPERATOR
__________________________________ ________________________________ Todd Bodem
City Administrator, City of Guadalupe
Attest:
__________________________________
Amelia M. Villegas, City Clerk
Approved as to form:
___________________________________
Philip F. Sinco, City Attorney

EXHIBIT A
PHYSICAL LOCATION OF THE OPERATOR’S BUSINESS OPERATIONS Property Address: 859 Guadalupe Street, Guadalupe CA 93434

EXHIBIT B

PUBLIC BENEFIT FEE

1. Applicability. The Public Benefit fee is levied upon business gross receipts. The Public Benefit fee shall not be separately identified or otherwise specifically assessed or charged to any member, customer, patient, or caretaker.

2. Definitions. The definitions cited in the Community Benefit Agreement are incorporated herein. The following additional words and phrases shall have the meanings set forth below when used in this Exhibit:
a. Business—All activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.
b. Calendar Year—January 1 through December 31, of the same year. c. Cultivation—any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery. d. Distribution—the procurement, sale, and transport of cannabis and cannabis products between licensees.
e. Employee—each and every person engaged in the operation or conduct of any business, whether as Owner, member of the Owner's family, partner, associate, agent, manager, or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter, or any other form of compensation. f. Engaged in Business as a Cannabis Business—means the commencing, conducting, operating, managing, or carrying on of a cannabis business, whether done as Owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. g. Fee Administrator—the City Administrator of the City of Guadalupe or his or her designee. h. Gross Receipts—whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, vaping room service charge, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from Gross Receipts:
i. Cash discounts where allowed and taken on sales;
ii. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
iii. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
iv. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the Operatorin the regular course of business; v. Cash value of sales, trades or transactions between departments or units of the same business located in the City of Guadalupe;
vi. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; vii. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; viii. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the City Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. ix. Retail sales of non-cannabis products, such as t-shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling papers, cannabis accessories such as pipes, pipe screens, vape pen batteries or other personal tangible property which the Fee Administrator has excluded in writing shall not be subject to the Public Benefit fee under this Chapter.
x. Payments made by the Operator (Seller) to a cannabis business (Buyer) for the difference in the original acquisition price and subsequent renegotiated or finalized selling price of products or services sold to a specific end customer. This type of transaction is referred to as a “Billback”. The Operator must provide supporting documentation to substantiate the transaction in order to be eligible for an exemption.
i. Manufacture—to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
j. Medicinal Cannabis or Medicinal Cannabis Product—cannabis or a cannabis product, intended to be sold or sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medicinal cannabis patient in California who possesses a physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71. k. Nursery—a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
l. Processing—all activities associated with the drying, curing, grading, trimming, rolling, storing, packaging, and labeling of cannabis or nonmanufactured cannabis products. m. Purchaser—the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
n. Retailer—commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid Cannabis Business Permit from the City of Guadalupe authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer.
o. Sale, Sell, and To Sell—includes any sale, exchange, or barter. It shall also mean any transaction whereby, for any consideration, title to cannabis, and/or cannabis products are transferred from one person to another and includes the delivery of cannabis, and/or cannabis products pursuant to an order placed for the purchase of the same, but does not include the return of cannabis, and/or cannabis products to the licensee from whom the cannabis, and/or cannabis product was purchased.
p. Testing Laboratory—a cannabis business that (i) offers or performs tests of cannabis, and/or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state, and (v) is registered with the Bureau of Cannabis Control or other state agency.

3. Public Benefit Fee Calculation. The Public Benefit fee shall be calculated as follows:
a. For the retail sale of cannabis, the business shall be subject to a fee of four percent (4%) of gross receipts.

4. Reporting and Remittance of Fee—The Operator shall report and remit the Public Benefit fee as follows:
a. The fee imposed by this Agreement shall be paid, in arrears, on a monthly basis. No later than the last day of the month following the close of the calendar month, the Operator shall file with the Fee Administrator a statement (“fee statement”) of the fee owed for that calendar month and the basis for calculating that fee. The Fee Administrator may require that the fee statement be submitted on a form prescribed by the Fee Administrator. The fee for each calendar month shall be due and payable on that same date that the fee statement for the calendar month is due.
b. Upon cessation of the business, fee statements and payments shall be immediately due for all calendar months up to the calendar month during which cessation occurred. c. The Fee Administrator may, at his or her discretion, establish alternative reporting and payment periods for the Operator as the Fee Administrator deems necessary to ensure effective collection of the Public Benefit fee. The Fee Administrator may require that the Operator make payments via a cashier’s check, money order, wire transfer, or similar instrument.

5. Timely Remittance— Whenever any payment, statement, report, request or other communication is due, it must be received by the Fee Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday or a holiday observed by the City, the due date shall be the next regular business day on which the City is open to the public.

6. Payment When Fees Deemed Delinquent— Unless otherwise specifically provided under other provisions of this Agreement, the fees required to be paid pursuant to this Agreement shall be deemed delinquent if not received by the Fee Administrator on or before the due date as specified.

7. Notice not required by the City—The City may as a courtesy send a fee notice to the Operator which owes the Public Benefit fee. However, the Fee Administrator is not required to send a delinquency or other notice or bill to the Operator. Failure to send such notice or bill shall not affect the validity of any fee or penalty due under the provisions of this Agreement.

8. Penalties and interest—Should the Operator fail or refuse to pay any Public Benefit fee required to be paid pursuant to this Agreement on or before the due date, the Operator shall pay penalties and interest as follows:
a. A penalty equal to ten percent (10%) of the amount of the fee, in addition to the amount of the fee, plus interest on the unpaid fee calculated from the due date of the fee at the rate of one percent (1%) per month.
b. If the fee remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the fee, plus interest at the rate of one percent (1%) per month on the unpaid fee and on the unpaid penalties.
c. Interest shall be applied at the rate of one percent (1%) per month on the first day of the month for the full month and will continue to accrue monthly on the fee and penalty until the balance is paid in full.
d. Whenever a check or electronic payment is submitted in payment of a Public Benefit fee and the payment is subsequently returned unpaid by the bank for any reason, the Operator will be liable for the fee amount due plus any fees, penalties and interest as provided for in this Agreement.

9. Refunds and Credits— No refund shall be made of any fee collected pursuant to this Agreement, except as follows:
a. Whenever the amount of the Public Benefit fee, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this Agreement, it may be refunded to the Operator provided that a written claim for refund is filed with the Fee Administrator within one (1) year of the date the fee was originally due or paid, whichever came first.
b. The Fee Administrator, his or her designee or any other City officer charged with the administration of this Agreement shall have the right to examine and audit all the books and business records of the Operator in order to determine the eligibility to the claimed refund.

No claim for refund shall be allowed if the Operator refuses to allow such examination of books and business records after request by the Fee Administrator to do so. c. In the event that the Public Benefit fee was erroneously paid in an amount in excess of the fee due, and the error is attributable to the City, the City shall refund the amount of fee erroneously paid; provided that (i) a claim for refund has been timely filed with the Fee Administrator; and (ii) the refund cannot exceed, under any circumstance, the amount of fee overpaid during the twelve months preceding the last month for which the claim states the fee was overpaid.

10. Administration of the Fee— It shall be the duty of the Fee Administrator to collect the fees, penalties, and perform the duties required by this Agreement. The Fee Administrator may take such actions as needed to administer the Public Benefit fee, including but not limited to:
a. Provide the Operator forms for the reporting of the fee; b. Provide information to the Operator concerning the provisions of the fee; c. Receive and record all fees remitted to the City;
d. Maintain records of Operator reports and fees collected; e. Assess penalties and interest to Operator pursuant to this Agreement; f. Determine amounts owed under and enforce collection pursuant to this Agreement.

11. Enforcement Action to Collect— Any fee, penalties and/or interest required to be paid under the provisions of this Agreement shall be deemed a debt owed to the City. The provisions of this Agreement shall not be deemed a limitation upon the right of the City to bring any other action including civil and equitable actions, based upon the failure to pay the fees, penalties and/or interest imposed by this Agreement or the failure to comply with any of the provisions of this Agreement.

12. Audit and Examination of Records— For the purpose of ascertaining the amount of Public Benefit fee owed or verifying any representations made by the Operator to the City in support of his or her fee calculation, the Fee Administrator shall have the power to inspect the Operator’s site and to audit and examine all books and records (including, but not limited to bookkeeping records, state and federal income tax returns, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such investigation, the Fee Administrator shall have the power to inspect any equipment, such as computers or point of sale machines, that may contain such records. It shall be the duty of the Operator for the collection and payment to the City of any fee imposed by this Agreement to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such fee as the Operator may have been liable for the collection of and payment to the City, which records the Fee Administrator or his/her designee shall have the right to inspect at all reasonable times.

13. Revocation—The City may revoke or refuse to renew the Operating Agreement if the Operator is delinquent in the payment of any fee due pursuant to this Agreement or that fails to make a deposit required by the Fee Administrator pursuant to this Agreement, for more than sixty (60) days after the payment or deposit is due.

Page 1 of 2 ends

RESOLUTION NO. 2023-70

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE APPROVING THE COMMUNITY BENEEFITS AGREEMENT BETWEEN THE CITY OF GUADALUPE AND ELEMENT 7 GUADALUPE LLC, DBA ELEMENT 7, FOR THE OPERATION OF A CANNABIS STOREFRONT RETAIL BUSINESS LOCATED AT 859

GUADALUPE STREET
WHEREAS, on May 25, 2021, by Ordinance No. 2021-494, the City Council adopted Chapter 9.22 of the Guadalupe Municipal Code (“GMC”) relating to the operation of commercial cannabis business activity in the City; and
WHEREAS, on November 12, 2021, Element 7 Guadalupe LLC (“Operator”) submitted an application to the City of Guadalupe for a cannabis business consisting of a storefront retail license located at 859 Guadalupe Street, Guadalupe, CA, whose operations include both storefront retail sales and sales via delivery to residences; and
WHEREAS, pursuant to the process established in Chapter 9.22 of the GMC and in accordance with the Application Procedures and Guidelines for a Commercial Cannabis Business Permit adopted by the City Council, the Operator’s application was vetted by the City Administrator, and presented to the City Council for final selection and authorization to complete the process for obtaining a cannabis business permit (“CBP”); and
WHEREAS, as part of the application vetting and selection process, the Operator was required to include in its application a description of the community benefits it was willing to offer to the City and its citizens for the opportunity to open and operate a cannabis business in the City; and WHEREAS, pursuant to Section 9.22.110 of the GMC, “any community benefits that a cannabis business agrees to provide shall be incorporated into the terms and conditions under which the cannabis business will operate with the City's approval, if and when a cannabis business permit is issued”; and WHEREAS, pursuant to Section 9.22.370 of the GMC, “prior to operating in the City and as a condition of issuance of a cannabis business permit, the operator of each cannabis facility shall enter into an operational or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare”; and
WHEREAS, the Operator’s application included a description of such community benefits which have been incorporated into the attached Community Benefits Agreement (“Agreement”); and WHEREAS, the Agreement and its terms and conditions are incorporated into the conditions of approval made part of the CBP granted to the Applicant, and the Applicant’s breaches of this Agreement shall be deemed violations of said CBP; and
ATTACHMENT 2

Page 2 of 2 ends

WHEREAS, the Agreement satisfies the condition of issuance set forth in Sections 9.22.110 and 9.22.370 of the GMC; and
WHEREAS, the City Council reviewed, considered, and adopted Resolution No. 2023-70 approving the attached Community Benefits Agreement by and between the City of Guadalupe and Element 7 Guadalupe LLC for the operation of a cannabis storefront retail business located at 859 Guadalupe Street at its meeting on September 12, 2023.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe as follows:

SECTION 1: The attached Community Benefits Agreement between the City of Guadalupe and Element 7 Guadalupe LLC is hereby approved.

SECTION 2: City Administrator Todd Bodem is authorized to sign the Agreement on behalf of the City.

SECTION 3: The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.

PASSED, APPROVED AND ADOPTED at a regular meeting on the 12th day of September 2023 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Amelia M. Villegas, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2023-70 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held September 12, 2023 and that same was approved and adopted.

ATTEST:
_________________________________ ________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
_________________________________
Philip F. Sinco, City Attorney
Agenda Item No. 13

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of September 12, 2023
__________________________________
Prepared by:

Todd Bodem, City Administrator
SUBJECT: Resolution No. 2023-75 approving the Community Benefits Agreement between the City of Guadalupe and SLOCAL Management LLC, dba Root One
RECOMMENDATION:

That the City Council adopt Resolution No. 2023-75, approving the Community Benefits Agreement by and between the City of Guadalupe, a municipal corporation of the State of California (“City”) and SLOCAL Management LLC, dba Root One, a California limited liability company (“Operator”), located at 928 Guadalupe Street, Guadalupe, CA 93434 (the “Site”).

BACKGROUND:

On November 15, 2021, SLOCAL Management LLC submitted an application to the City of Guadalupe for a cannabis business consisting of a storefront retail license located at 928 Guadalupe Street. A cannabis storefront retailer is also allowed to conduct sales via delivery to residences under the same license from the Department of Cannabis Control. SLOCAL Management LLC proposes to conduct both storefront sales and delivery operations as allowed by their license type.

As a part of the application vetting and selection process, SLOCAL Management LLC was required to include in its application a description of the community benefits it was willing to offer to the City.

SLOCAL Management LLC’s application was vetted by the City Administrator and presented to the City

Page 1 of 3 ends

Page 2 of 3 ends

Council for final selection and authorization to complete the process for obtaining a cannabis business permit.

DISCUSSION:

The proposed community benefits being offered by SLOCAL Management LLC have been incorporated into the attached Community Benefits Agreement (“the Agreement”). If approved by the Council, the enumerated community benefits shall become enforceable conditions of approval and made part of the Cannabis Business Permit (CBP) granted to SLOCAL Management LLC. Any breaches of this Agreement shall be deemed violations of SLOCAL Management LLC’s CBP.

The community benefits being proposed by SLOCAL Management LLC are summarized below and are described in greater detail in the attached Agreement.

Public Benefit Fee
The business shall be subject to a fee of six percent (6%) on the gross receipts of all retail cannabis sales.

The obligation to pay the Public Benefit fee shall cease if the City of Guadalupe implements a voterapproved cannabis business tax in the future.

Community Benefits
Operator SLOCAL Management LLC shall implement its Community Benefit Program within 3 months of the effective date of the Agreement and shall maintain that program for the entire term of the Agreement. The Community Benefit Program shall include all of the following required benefits:
• Direct and Indirect Giving – Operator shall donate $4,000 per month during the first year of operations, followed by 1.5% of gross sales thereafter, to non-profit organizations who directly serve Guadalupe. Additionally, Operator shall raise funds for upgrades to community sports fields and/or recreational facilities.
• Volunteering – Operator shall provide at least 50 paid community service hours per month, and organize cleanups, including an effort to adopt a section of Highway 1 near Guadalupe through the Adopt-A-Highway program.
• Marketing Integration – Operator shall offer direct marketing integration with local non-profits.

Additionally, Operator’s lobby and retail floor area shall feature rotating work from local artists. • Local Business Sourcing/Partnership – Operator shall source 80% of supplies and equipment from businesses within 80 miles. Additionally, Operator shall work with nearby businesses to establish incentives for customers to shop local after visiting the cannabis storefront retail business. • Scholarship Program – Operator shall provide two $2,000 scholarships annually for graduating low-income Guadalupe High School students studying to become teachers or pursuing a degree in the agricultural industry.
• Local Hiring – Operator shall source at least 75% of employees from residents within a 15-mile radius of the business. Additionally, Operator shall offer a base wage of $18.00 per hour for entry-level employees, and offer all employees health, vision and dental benefits, access to 401(k), commuter tax benefits, employee discounts, and paid volunteer opportunities.

Page 3 of 3 ends

• Medical Patients and Veterans Program – Operator shall develop a Medical/Veteran Program, to provide free medical cannabis goods to local medical and/or hospice patients and veterans. • Other Commitments – Operator shall make at least 30% of shelf-space available to locally grown and/or manufactured cannabis brands. Additionally, Operator shall install at least one 22KW Electric Vehicle Charging Station onsite.

FISCAL IMPACT:

SLOCAL Management LLC, the business, shall be subject to a fee of six percent (6%) on the gross receipts of all retail cannabis sales. The business shall also implement its Community Benefit Program which will have direct and indirect financial benefit to the city.

ATTACHMENTS:

1. Community Benefit Agreement

2. Resolution No. 2023-75

RECORDING REQUESTED BY,
AND WHEN RECORDED, MAIL TO:

City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Attn: City Clerk
_____________________________________________________________________________________

COMMUNITY BENEFIT AGREEMENT
This Community Benefit ( “Agreement”) is made and entered into this 12TH day of September 2023, by and between the City of Guadalupe, a municipal corporation of the State of California ( “City”) and SLOCAL Management LLC, dba Root One, a California limited liability company ( “Operator”), located at 928 Guadalupe Street, Guadalupe, CA 93434 (the “Site”). City and Operator may be referenced herein as “Party” or collectively as “Parties”.

B. On November 15, 2021, Operatorsubmitted an application to the City of Guadalupe for a cannabis business consisting of an adult-use storefront retail license located at 928 Guadalupe Street, Guadalupe, CA 93434.

E. Pursuant to Section 9.22.110 of the GMC, “any community benefits that a cannabis business agrees to provide shall be incorporated into the terms and conditions under which the cannabis business will operate with the City's approval, if and when a cannabis business permit is issued.” F. Furthermore, pursuant to Section 9.22.370 of the GMC, “prior to operating in the City and as a condition of issuance of a cannabis business permit, the operator of each cannabis facility shall enter into an operational or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.” ATTACHMENT 1
G. Operator’s application included a description of such community benefits and this Agreement is being entered into to memorialize that commitment. This Agreement and itsterms and conditions are incorporated into the conditions of approval made part of the CBP granted to the Applicant, and the Applicant’s breaches of this Agreement shall be deemed violations of said CBP.

H. This Agreement satisfies the condition of issuance set forth in Sections 9.22.110 and 9.22.370 of the GMC.

I. On September 12, 2023, the City Council reviewed, considered, and adopted Resolution No. 2023- 75 approving this Agreement.

AGREEMENT

1. Recitals. The Recitals set forth above are incorporated herein as if fully set forth in this Agreement.

2. Exhibits. The following “Exhibits” are attached and incorporated into this Agreement:

Designation Description
Exhibit A Physical location of the Operator’s Business Operations Exhibit B Public Benefit Fee Terms

GENERAL PROVISIONS

1. Applicability. This Agreement is only valid for the cannabis storefront retail business located at 928 Guadalupe Street, Guadalupe, CA 93434 as shown on Exhibit A. The Agreement is valid only at the specified location and is granted only to the business owners as specified in the CBP application submitted by SLOCAL Management LLC (“Operator”). Any changes to the business ownership of the Operator are subject to the requirements of Section 9.22.280 of the GMC.

3. Effective Date. This Agreement shall be effective as of the date of the Resolution approving this Agreement, or such other date (if any) as specified in the Resolution approving this Agreement.

4. Term of Agreement. The initial term of this Agreement shall be 10 years, with two (2) possible extensions of five (5) years each. This Agreement may be extended further by mutual agreement of the Operator and the City Council on such additional terms and conditions asto which the Parties may agree. The Parties agree that, prior to the end of the initial 10-year term, they will meet and confer in good faith with the goal either of continuing this Agreement on the same terms and conditions or of modifying the Agreement so that the Business Operations may continue for the mutual benefit of the City and the Operator.

5. Termination. This Agreement may be terminated upon mutual written agreement by both Parties.

Termination of this Agreement shall not eliminate the right of both Parties to seek any applicable and available remedies or damages, based upon acts or omissions occurring before termination.

7. Indemnification. Operator agrees to indemnify, defend, and hold harmless City, its officers, officials, employees, agents, and consultantsfrom any and all administrative, legal, or equitable actions, claims, or other proceedings instituted by any person or entity not a party to the Agreement challenging the validity of the Agreement or any action arising out of or relating to the Agreement. Operatorshall pay for City’s costs of defense, whether directly or by timely reimbursement on a monthly basis. Such costs shall include, but not be limited to, all court costs and attorney’s fees expended by the City in defense of the action or proceeding, plus staff and consultant time spent in regard to defense of the action or proceeding. The parties shall use best efforts to select mutually agreeable defense counsel but, if the parties cannot reach agreement, City may select its own legal counsel and Operator agrees to pay directly or timely reimburse on a monthly basis City for all such court costs, attorney’s fees and time referenced herein.

Operatorfurther agreesto indemnify, defend, and hold harmless City, its officers, officials, employees, agents, and consultants from any and all claims, costs, and liability for any damages, personal injury or death, or property damage which may arise directly or indirectly from Operator’s Business Operations pursuant to this Agreement, except as caused by City’s sole or gross negligence.

8. Notices. Any notice or communication required by the Agreement between the parties shall be in writing and may be delivered either personally or by registered mail, return receipt requested. Notice, whether given by personal delivery or by registered mail, shall be deemed to have been given and received on the day of actual receipt at any of the addresses designated below as to the party to whom the notice is sent. Any party hereto may at any time, upon written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. However,should a party’s address no longer be valid such that delivery by registered mail, return receipt required, is not successful, then delivery by U.S. mail shall be effective five business days after mailing of notice. Such notices or communications shall be given to the parties at the addresses set forth below:

To the City of Guadalupe:

City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Attn: City Manager
With a copy to (which shall not constitute notice):

City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
Attn: City Attorney
To Operator:

SloCal Management LLC
110 Mary Street #2, Ste 110
Nipomo, CA 93444
With a copy to (which shall not constitute notice):

Tiffany Carrari
TMC Legal
P.O. Box 1315
Nipomo, CA 93444

PUBLIC BENEFIT FEE

1. Acknowledgment. The Parties acknowledge and agree that this Agreement conferssubstantial private benefits upon Operator that will place burdens upon City infrastructure, services, and neighborhoods.

Accordingly, the Parties intend to provide consideration to City that are commensurate with the private benefits conferred on Operator (the “Public Benefit”).

3. Implementation of Cannabis Tax. Operator’s obligation to pay the Public Benefit fee shall cease if the City of Guadalupe implements a tax, specifically applied to commercial cannabis businesses.

COMMUNITY BENEFITS

2. Written Plan. Operator has submitted, as part of its permit application, a written Community Benefit Plan (“Community Plan”). The Community Plan was used to develop the list of Required Benefits described below. Operator shall provide an annual report to the City Administrator and City Attorney on its progress in carrying-out the Community Program’s goals and measurable outcomes. Upon request of the City Administrator or City Attorney, Operatorshall also agree to provide a presentation to the City Council on the Community Program’s goals and measurable outcomes. The Required Benefits may be modified in writing by request of the Operator and approval of the City Administrator or the City Attorney.

3. Required Benefits. The Operator has committed to providing the following benefits:
a. Direct and Indirect Giving
i. Operator will donate $4,000 per month during the first year of operations, followed by 1.5% of gross sales thereafter, to non-profit organizations who directly serve Guadalupe.
ii. Operator will raise funds for upgrades to community sports fields and/or recreational facilities.
b. Volunteering
i. Operator will provide at least 50 community service hours per month. Employees will be paid during volunteer hours, as they would during normal working hours. ii. Operator will organize cleanups, including an effort to adopt a section of Highway 1 near Guadalupe through the Adopt-A-Highway program.
c. Marketing Integration
i. Operator will offer direct marketing integration in-store and through outbound direct marketing to customer lists.
ii. Operator’s lobby and retail floor area will feature rotating work from local artists, including paintings and decorative pieces that will reflect the Guadalupe community.

If artwork is to be sold, 100% of the proceeds will go to the artist. d. Local Business Partnership
i. Operator will source 80% ofsupplies and equipment from businesses within 80 miles. ii. Operator will purchase coffee, snacks and meals from local restaurants for Operator employees and customer appreciation days.
iii. Operator will source as many building materials as possible from locally owned hardware and building supply companies with locations in Guadalupe. iv. Operator shall use local contractors and labor for build-out and landscaping improvements.
v. Operator will partner with a local manufacturing and distribution center in Guadalupe to manufacture and package all house branded products.
vi. Operator will consider local area businesses for other services, including IT, staffing, security, hospitality, packaging, printing, interior design, HR and payroll, before searching outside of Guadalupe.
vii. Root One will work with businesses in town to establish incentives for customers to stay in Guadalupe once their experience with us is complete. viii. Operator will work with businesses in town to establish other incentives for customers to stay in Guadalupe after visiting the Operator’s place of business. ix. Operator will maintain membership in the Guadalupe Business Association, and help organize and advertise local events and awareness to attract visitors to town. x. Operator will maintain involvement in other local industry associations. e. Scholarship Program
i. Operator will provide two $2,000 scholarships annually for graduating low income Guadalupe High School students studying to become teachers and those pursuing a degree in the agricultural industry.
ii. Scholarship recipients will also have the option of working part-time at the Operator’s retail or related cultivation operations as part of an apprenticeship program. f. Local Hiring
i. Operator will source at least 75% of employeesfrom residents within a 15-mile radius of the business location.
ii. Operator will give preferential hiring to job applicants who reside within Guadalupe, with secondary preference given to job applicants who reside in Santa Maria Valley. iii. Operator will offer a base wage of $18.00 per hour for entry-level employees. iv. After a 60 day probationary period, Operator will offer all full time employees health, vision and dental benefits, access to 401(k), commuter tax benefits, employee discounts, and paid volunteer opportunities.
v. Operator will enter into a labor peace agreement.
vi. Operator will focus on hiring members of the community who have been victims of racial injustice, gender injustice, and the war on drugs. vii. Operator will focus on hiring bilingual employees at every level of employment. g. Medical Patients and Veterans Program
i. Operator will develop a Medical/Veteran Program, to provide free medical cannabis goods to local medical and/or hospice patients and veterans. Once enrolled, patients and veterans will receive a 15% discount on any order in store, as well as a monthly donation of cannabis.
ii. Operator will work with other local cultivation, manufacturing and distribution companies to source donations for patients and veterans. h. Other Commitments
i. Operator will make at least 30% of shelf-space available to locally grown and/or manufactured cannabis brands, provided they are State compliant and carry a positive reputation.
ii. Operator will explore developing a bike kitchen in Guadalupe. iii. Operator will install at least one 22KW Electric Vehicle Charging Station onsite.

DEFAULT

3. Periodic Review. Evidence of default may arise in the course of a periodic review of this Agreement.

STANDARD TERMS AND CONDITIONS

1. Venue. Venue for all legal proceedingsshall be in the Superior Court of California in and for the County of Santa Barbara.

6. Number and Gender. In this Agreement, the neuter gender includes the feminine and masculine, and the singular includes the plural.

7. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory. "May" or "can" are permissive.

8. Term Includes Extensions. All references to the Term of this Agreement shall include any extensions of such Term.

10. Other Documents. The Parties agree that they shall cooperate in good faith to accomplish the objectives of this Agreement and, to that end, agree to execute and deliversuch other instruments or documents as may be necessary and convenient to fulfill the purposes and intentions of this Agreement.

11. Time is of the Essence. Time is of the essence in this Agreement in each covenant, term, and condition herein.

12. Authority. All Partiesto this Agreement warrant and represent that they have the power and authority to enter into this Agreement and the names, titles, and capacities herein stated on behalf of any entities, persons, states, or firms represented or purported to be represented by such entities, persons, states, or firms and that all former requirements necessary or required by state or federal law in order to enter into this Agreement had been fully complied with. Further, by entering into this Agreement, no Party hereto shall have breached the terms or conditions of any other contract or agreement to which such Party is obligated, which such breach would have a material effect hereon.

13. Document Preparation. This Agreement will not be construed against the Party preparing it, but will be construed as if prepared by all Parties.

14. Advice of Legal Counsel. Each Party acknowledges that it has reviewed this Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered into this Agreement.

15. Attorney's Fees and Costs. If any action at law or in equity, including action for declaratory relief, is brought to enforce or interpret provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney'sfees and costs, which may be set by the court in the same action orin a separate action brought for that purpose, in addition to any other relief to which such Party may be entitled.

19. Partners. The Parties are not, and shall not be construed, to be partners or joint ventures.

EXECUTED AS OF September 12, 2023.
[SIGNATURES ON THE NEXT PAGE]

OPERATOR
________________________________

CITY OF GUADALUPE
___________________________________
Todd Bodem, City Administrator
Attest:
____________________________________
Amelia M. Villegas, City Clerk
Approved as to form:
____________________________________
Philip F. Sinco, City Attorney

EXHIBIT A
PHYSICAL LOCATION OF THE OPERATOR ’S BUSINESS OPERATIONS Property Address: 928 Guadalupe Street, Guadalupe CA 93434

EXHIBIT B

PUBLIC BENEFIT FEE

2. Definitions. The definitions cited in the Community Benefit Agreement are incorporated herein. The following additional words and phrases shall have the meanings set forth below when used in this Exhibit:
a. Business—All activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.
b. Calendar Year—January 1 through December 31, of the same year. c. Cultivation—any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis and includes, but is not limited to, the operation of a nursery. d. Distribution—the procurement, sale, and transport of cannabis and cannabis products between licensees.
e. Employee—each and every person engaged in the operation or conduct of any business, whether as Owner, member of the Owner's family, partner, associate, agent, manager, or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter, or any other form of compensation. f. Engaged in Business as a Cannabis Business—means the commencing, conducting, operating, managing, or carrying on of a cannabis business, whether done as Owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. g. Fee Administrator—the City Administrator of the City of Guadalupe or his or her designee. h. Gross Receipts—whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, vaping room service charge, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. However, the following shall be excluded from Gross Receipts:
i. Cash discounts where allowed and taken on sales;
ii. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
iii. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
iv. Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the Operatorin the regular course of business; v. Cash value ofsales, trades or transactions between departments or units of the same business located in the City of Guadalupe;
vi. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered; vii. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar; viii. Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the City Administrator with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees. ix. Retail sales of non-cannabis products, such as t-shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling papers, cannabis accessories such as pipes, pipe screens, vape pen batteries or other personal tangible property which the Fee Administrator has excluded in writing shall not be subject to the Public Benefit fee under this Chapter.
x. Payments made by the Operator (Seller) to a cannabis business (Buyer) for the difference in the original acquisition price and subsequent renegotiated or finalized selling price of products or services sold to a specific end customer. This type of transaction is referred to as a “Billback”. The Operator must provide supporting documentation to substantiate the transaction in order to be eligible for an exemption.
i. Manufacture—to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
j. Medicinal Cannabis or Medicinal Cannabis Product—cannabis or a cannabis product, intended to be sold or sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medicinal cannabis patient in California who possesses a physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71. k. Nursery—a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
l. Processing—all activities associated with the drying, curing, grading, trimming, rolling, storing, packaging, and labeling of cannabis or nonmanufactured cannabis products. m. Purchaser—the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.
n. Retailer—commercial cannabis business facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment (whether fixed or mobile) that delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail sale, and where the operator holds a valid Cannabis Business Permit from the City of Guadalupe authorizing the operation of a retailer, and a valid state license asrequired by state law to operate a retailer.
o. Sale, Sell, and To Sell—includes any sale, exchange, or barter. It shall also mean any transaction whereby, for any consideration, title to cannabis, and/or cannabis products are transferred from one person to another and includes the delivery of cannabis, and/or cannabis products pursuant to an order placed for the purchase of the same, but does not include the return of cannabis, and/or cannabis products to the licensee from whom the cannabis, and/or cannabis product was purchased.
p. Testing Laboratory—a cannabis business that (i) offers or performs tests of cannabis, and/or cannabis products, (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state, and (v) is registered with the Bureau of Cannabis Control or other state agency.

3. Public Benefit Fee Calculation. The Public Benefit fee shall be calculated as follows:
a. For the retail sale of cannabis, the business shall be subject to a fee of six percent (6%) of gross receipts.

8. Penalties and interest—Should the Operator fail or refuse to pay any Public Benefit fee required to be paid pursuant to this Agreement on or before the due date, the Operator shall pay penalties and interest as follows:
a. A penalty equal to ten percent (10%) of the amount of the fee, in addition to the amount of the fee, plus interest on the unpaid fee calculated from the due date of the fee at the rate of one percent (1%) per month.
b. If the fee remains unpaid for a period exceeding one calendar month beyond the due date, an interest at the rate of one percent (1.5%) per month on the unpaid fee and on the unpaid penalties.
c. Interest shall be applied at the rate of one percent (1%) per month on the first day of the month for the full month and will continue to accrue monthly on the fee and penalty until the balance is paid in full.
d. Whenever a check or electronic payment is submitted in payment of a Public Benefit fee and the payment is subsequently returned unpaid by the bank for any reason, the Operator will be liable for the fee amount due plus any fees, penalties and interest as provided for in this Agreement.

12. Audit and Examination of Records— For the purpose of ascertaining the amount of Public Benefit fee owed or verifying any representations made by the Operator to the City in support of his or her fee calculation, the Fee Administratorshall have the power to inspect the Operator’ssite and to audit and examine all books and records (including, but not limited to bookkeeping records, state and federal income tax returns, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such investigation, the Fee Administrator shall have the power to inspect any equipment, such as computers or point of sale machines, that may contain such records. It shall be the duty of the Operator for the collection and payment to the City of any fee imposed by this Agreement to keep and preserve, for a period of at least three (3) years, allrecords as may be necessary to determine the amount of such fee as the Operator may have been liable for the collection of and payment to the City, which records the Fee Administrator or his/her designee shall have the right to inspect at all reasonable times.

13. Revocation—The City may revoke or refuse to renew the Operating Agreement if the Operator is delinquent in the payment of any fee due pursuant to this Agreement or that fails to make a deposit required by the Fee Administrator pursuant to this Agreement, for more than ninety (90) days after the payment or deposit is due.

Page 1 of 3 ends

RESOLUTION NO. 2023-75

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE APPROVING THE

COMMUNITY BENEEFITS AGREEMENT BETWEEN THE CITY OF GUADALUPE AND SLOCAL

MANAGEMENT LLC, DBA ROOT ONE, FOR THE OPERATION OF A CANNABIS STOREFRONT RETAIL BUSINESS LOCATED AT 928 GUADALUPE STREET
WHEREAS, on May 25, 2021, by Ordinance No. 2021-494, the City Council adopted Chapter 9.22 of the Guadalupe Municipal Code (“GMC”) relating to the operation of commercial cannabis business activity in the City; and
WHEREAS, on November 15, 2021, SLOCAL Management LLC (“Operator”) submitted an application to the City of Guadalupe for a cannabis business consisting of a storefront retail license located at 928 Guadalupe Street, Guadalupe, CA, whose operations include both storefront retail sales and sales via delivery to residences; and WHEREAS, pursuant to the process established in Chapter 9.22 of the GMC and in accordance with the Application Procedures and Guidelines for a Commercial Cannabis Business Permit adopted by the City Council, the Operator’s application was vetted by the City Administrator, and presented to the City Council for final selection and authorization to complete the process for obtaining a cannabis business permit (“CBP”); and
WHEREAS, as part of the application vetting and selection process, the Operator was required to include in its application a description of the community benefits it was willing to offer to the City and its citizens for the opportunity to open and operate a cannabis business in the City; and WHEREAS, pursuant to Section 9.22.110 of the GMC, “any community benefits that a cannabis business agrees to provide shall be incorporated into the terms and conditions under which the cannabis business will operate with the City's approval, if and when a cannabis business permit is issued”; and
WHEREAS, pursuant to Section 9.22.370 of the GMC, “prior to operating in the City and as a condition of issuance of a cannabis business permit, the operator of each cannabis facility shall enter into an operational or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare”; and WHEREAS, the Operator’s application included a description of such community benefits which have been incorporated into the attached Community Benefits Agreement (“Agreement”); and ATTACHMENT 2

Page 2 of 3 ends

WHEREAS, the Agreement and its terms and conditions are incorporated into the conditions of approval made part of the CBP granted to the Applicant, and the Applicant’s breaches of this Agreement shall be deemed violations of said CBP; and
WHEREAS, the Agreement satisfies the condition of issuance set forth in Sections 9.22.110 and

9.22.370 of the GMC; and
WHEREAS, the City Council reviewed, considered, and adopted Resolution No. 2023-75 approving the attached Community Benefit Agreement by and between the City of Guadalupe and SLOCAL Management LLC, dba Root One for the operation of a cannabis retail business located at 928 Gaudalupe Street at its meeting on September 12, 2023.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Guadalupe as follows:

SECTION 1: The attached Community Benefit Agreement between the City of Guadalupe and SLOCAL Management LLC, dba Root One is hereby approved.

SECTION 2: City Administrator Todd Bodem is authorized to sign the Agreement on behalf of the City.

PASSED, APPROVED AND ADOPTED at a regular meeting on the 12th day of September 2023 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Amelia M. Villegas, City Clerk of the City of Guadalupe DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2023-75, has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held September 12, 2023, and that same was approved and adopted.

Page 3 of 3 ends

ATTEST:
______________________________ ______________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
______________________________
Philip F. Sinco, City Attorney
Agenda Item No. 14

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of September 12, 2023
______________________________________ __________________________________ Prepared by: Approved by:

Hannah Sanchez, Recreation Services Manager Todd Bodem, City Administrator SUBJECT: Recreation & Parks Commission Soliciting for a Non-Profit to Secure Jack O’Connell Turf Funding
RECOMMENDATION:

For City Council to approve the Recreation & Parks Commission’s solicitation for a non-profit to secure funding and the administration of a grant to install turf at Jack O’Connell Park.

BACKGROUND:

Jack O’Connell Park is the largest park in Guadalupe. It offers an abundance of space for various outdoor activities. While the open space grass area is used for many sports and recreational activities, it is mostly known for being the home of the Guadalupe Bulldogs youth football teams. While this park provides plenty of space, the upkeep has always been an ongoing struggle as the pests such as gophers have always been present there creating many holes on the field. As the safety of our community members and specifically our youth is extremely important to the city, this issue has always been a concern.

There are funding opportunities available to be able to replace the grass at Jack O’Connell Park with turf and create a city multipurpose stadium. It could include track & field, football, and soccer amenities.

This could not only be utilized by the Guadalupe Bulldogs but also the community as a whole. This could also be a revenue generator as well as a draw for Guadalupe to bring more business in general to the city.

Although there are funding opportunities available, the city at this time does not have the bandwidth to procure and administer a grant.

DISCUSSION:

The Recreation & Parks Commission is requesting the city council’s approval to solicit for a non-profit to procure and administer a grant on behalf of the commission and city that would fund a stadium for recreational use at Jack O’Connell Park.

Hannah Sanchez
FISCAL IMPACT:

There would be no direct fiscal impact as the non-profit would work with the Recreation & Parks Commission to procure funding for this project at no cost to the city.

ATTACHMENT:

1. Jack O’Connell Park Turf Proposal
ATTACHMENT 1

Page 1 of 4 ends

Agenda Item No. 15

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of September 12, 2023
___________________________________ ______________________________ Prepared by: Approved by:

Hannah Sanchez, Recreation Services Manager Todd Bodem, City Administrator SUBJECT: City Facility and Parks Use Fee Schedule Update RECOMMENDATION:

That the City Council review the changes made to the City’s Master Fee Schedule and provide recommendations for final changes or approve the fee schedule as presented.

BACKGROUND:

Guadalupe facilities available for rentals are used for a variety of reasons. Previous rentals have included use for small gatherings, meetings, birthdays, wedding receptions, recreational use, and non-profit use. Given the wide variety of use, the fee schedule needed to be updated to provide fees that align with the usage of the facility.

Because of the high amount of non-profit and recreational use, the fee schedule needed to be updated to offer prices specifically for that use. These fees are discounted to meet the communities’ needs while still providing compensation for use to the city. In addition, the fee schedule was missing costs for Jack O’Connell costs for field use.

DISCUSSION:

The attached fee schedule begins with an introduction page. This page defines terms seen in the fee schedule to provide clarity to residents. In addition to the terms, the intro page provides the possible additional costs for rental of any city facilities if applicable.

The main changes made to all facility fees/rates are the deposit, hourly rate, and non-profit rate format. Previously the deposit was a flat rate for all rentals regardless of what the event was. This was a cause for concern because a renter with a small, quiet gathering was paying the same deposit as a renter with a birthday or wedding reception would pay. The number of guests is often an indicator of the type of event that it is going to be held. This is why staff recommends changing the Hannah Sanchez

Page 2 of 4 ends

deposit to this format. The split for cost based on number of guests was based on the total capacity limit for each facility.

The hourly rate was previously split based of resident rates versus non-resident rates. After staff did research on other cities in the area, it was noted that other cities split their hourly rate based on the space being rented during business hours or after business hours. This model fits the city and communities needs because it encourages renters to make preparations or run their event during business hours. This not only saves the city money, but also allows for easier coordination of the rental. The increase in the “Outside of Business Hours” rate would cover additional costs associated with the use of the facility and staff time.

The non-profit rate format was changed for all facilities. It is staff’s belief that the bulk of non-profit events should be able to be held within four hours. This is why staff recommends a four hour discounted flat rate for non-profits with any additional time charged by the hour with the non-profit hourly rate.

Please see reasoning for changes to each individual facility/park below.

Facilities
• Whole City Council Chambers
o The fees stayed the same except for the deposit and non-profit rate o Deposit: Original deposit was a total of $100 with $50 refundable if returned to original condition. The change was made to $50 with no refund if the party is expecting 35 or fewer guests and $100 with $50 refundable for parties of 36 guests or more. o Non-profit rate: 20% deduction of regular rates.
• Half City Council Chambers
o The fees stayed the same except for the deposit and non-profit rate o Deposit: Original deposit was a total of $100 with $50 refundable if returned to original condition. The change was made to $50 with no refund if the party is expecting 35 or fewer guests and $100 with $50 refundable for parties of 36 guests or more. o Non-profit rate: 20% deduction of regular rates
• Senior Center
o The kitchen use fee, deposit, and non-profit rate were changed. o Kitchen Use: With the replacement of kitchen amenities, the fee for kitchen use was raised from $50 to $100.
o Deposit: Original deposit was a total of $200 with $100 refundable if returned to original condition. The change was made to $150 with no refund if the party is expecting 35 or fewer guests and $250 with $125 refundable for parties of 36 guests or more.
o Non-profit rate: 20% deduction from regular rates
• Veteran’s Hall
o The deposit, hourly rate, and non-profit rate were changed.

Page 3 of 4 ends

o Deposit: Original deposit was a total of $500 with $250 refundable if returned to original condition. The change was made to $150 with no refund if the party is expecting 35 or fewer guests and $250 with $125 refundable for parties of 36 guests or more. The cost was dropped because it was currently the same rate as the auditorium. The capacity and amenities are much more similar to the Senior Center than to the auditorium. Although this cost was dropped, staff anticipate more rentals of this space now that the rate is a more accurate reflection of the space and amenities available at that facility.
o Hourly Rate: To be a middle ground between the Senior Center and Auditorium rates the hourly rate was decreased from $90 and $110 per hour to $40 during business hours and $50 during off hours.
o Non-profit rate: 20% deduction from regular rate
• LeRoy Community Center: LeRoy Community Center currently did not have any fees/rates set.

Staff created rates based on rates set for other facilities, occupancy, and amenities.

Boys and Girls Club has requested that BGC be compensated for their staff coverage of any events run through the city. They requested that they be compensated at $40 per hour for city events. This request if approved by city council would be deducted from the overall rate to rent and paid to BGC.

Please review the proposed rates.
• City Hall Auditorium
o The deposit and non-profit rates were changed.
o Deposit: The original deposit was $500 with $250 refundable if returned to original status. Regardless of the event or number of people attending. To accommodate all types of events at fair rates the deposit is broken up into the number of guests. Please review changes.
o Non-profit rates: 20% deduction from regular rate
Parks
• BBQ Area Rates: The original rates for BBQ area rentals were too involved and were simplified to just one flat rate like most parks have. The original rates were as follows:
o Reservation Lock In Date: $60
o Deposit: $100
o Hourly Resident Rate: $40
o Hourly Non-Resident Rate: $50
Although the cost overall will be decreased it is staff’s belief from community feedback that there will be more rentals with this new rate set in place as many did not rate because they felt the cost was too high. In comparison to other cities, it was extremely high. • LeRoy Park BBQ Area: It is staff’s recommendation that LeRoy Park only be rented out for community events, but that all outdoor organized recreation events be held at Jack O’Connell Park.
o Please review changes.

Page 4 of 4 ends

• Jack O’Connell
o BBQ Area: Please review changes.
o All Fields Fees & Rates: These rates were put together based on what cities similar to our size and demographic charge for their outdoor recreation facilities. • Downtown Parking Rental: Staff is recommending changes to this fee based on the type of use. The downtown parking lot is rented for the approved Fiestas Patrias and Christmas Parade. These events necessitate for city staff to set up no parking signs in order to clear the lot prior to event, ensure that all cars are removed from the lot, and clean up after the event.

Staff recommends an increase in this charge as it is only a one-time fee. o The fees were increased.
o One-time Use Fee: This was changed from $60 to $100.
o Fee: This was changed from $100 with $50 refundable to a $200 per day charge.

FISCAL IMPACT:

It is staff’s belief that with the following changes made that we should receive more rentals. It is anticipated that many of the changes made will save the city money. Staff will be using the current summary of rentals found in the Recreation & Parks Monthly Report to measure if there has been an uptick in rentals based on these fee changes.

ATTACHMENTS:

1. Proposed City Facility & Parks Use Fee Schedule

2. Resolution No. 2023-76
MASTER FEE SCHEDULE -- PART 2 B - 1
Current Fee

CITY AUDITORIUM/GYMNASIUM
Reservation Deposit (Applied to Deposit at the two-week mark, $100 non-refundable if event is cancelled)
Kitchen Use (Non-Refundable) $100
Deposit (Partially Refundable; See Cancellation Schedule) Under 60 Guests $250
Under 150 Guests $500
Over 150 Guests w/out Alcohol $800
Over 150 Guests w/Alcohol $1,000
Rental Fees (see Refundable/Cancellation Schedule)
During Business Hours (per hour) $90
Outside Business Hours (per hour) $110
City Approved local non-profits/schools/other approved
fraternal/social organizations
Deposit
Under 150 Guests $400
Over 150 Guests w/out Alcohol $640
Over 150 Guests w/Alcohol $800
During Business Hours (per hour) $72
Outside Business Hours (per hour) $88
Non-profit Fees for Team Use
Deposit $50
During Business Hours (per hour) $15
Outside Business Hours (per hour) $30

VETERAN'S HALL (AMERICAN LEGION)
Reservation Deposit (Applied to Deposit at the two week mark, $50 non-refundable if event is cancelled)
Kitchen Use (Non-Refundable) $100
Deposit (Partially Refundable; See Cancellation Schedule) Under 35 Guests $150
Over 35 Guests $250
Dinning Hall
During Business Hours (per hour) $40
Outside Business Hours (per hour) $50
City Approved local non-profits/schools/other approved
fraternal/social organizations
Deposit $50
During Business Hours (per hour) $32
Outside Business Hours (per hour) $40

SENIOR CENTER
Reservation Deposit (Applied to Deposit at the two week mark, $50 non-refundable if event is cancelled)
Kitchen Use (Non-Refundable) $100
Deposit (Partially Refundable; See Cancellation Schedule) $200 Under 35 Guests $150
Over 35 Guests $250
Rental Fees Room 1 (see Refundable/Cancellation Schedule) During Business Hours (per hour) $30
Outside Business Hours (per hour) $40
City Approved local non-profits/schools/other approved
fraternal/social organizations
Deposit $50
During Business Hours (per hour) $24
Outside Business Hours (per hour) $32
Rental Fees Rooms 2 & 3 (see Refundable/Cancellation Schedule) $15 City Approved/designated Non-profits Rooms 2 & 3 $10

COUNCIL CHAMBERS
Reservation Deposit (Non-Refundable) $50
Deposit (See Refundable/Cancellation Schedule) $100
Under 35 Guests $50
Over 35 Guests $100
Rental Fees (see Refundable/Cancellation Schedule)
During Business Hours (per hour)
Half Chamber $20
Park & Facility Use + Special Events
ATTACHMENT 1
MASTER FEE SCHEDULE -- PART 2 B - 1
Current Fee Park & Facility Use + Special Events
Entire Chamber $30
Outside Business Hours (per hour)
Half Chamber $30
Entire Chamber $40
City Approved local non-profits/schools/other approved
fraternal/social organizations
Deposit $50
During Business Hours (per hour)
Half Chamber $16
Entire Chamber $24
Outside Business Hours (per hour)
Half Chamber $24
Entire Chamber $32

LEROY COMMUNITY CENTER/RON ESTABILLO CLUBHOUSE
Arts & Crafts Room/Stage Area
Reservation Deposit (Non-Refundable) $20
During Business Hours (per hour) $15
Outside Business Hours (per hour) $40
Gymnasium
Reservation Deposit (Non-Refundable) $100
During Business Hours (per hour) $90
Outside Business Hours (per hour) $110
City Approved local non-profits/schools/other approved
fraternal/social organizations Team Use
Reservation Deposit (Non-Refundable) $50
Hourly Rate $45

LEROY PARK (FLAT RATES)
BBQ Area $215
BBQ Area Non-Profit $150
Full Park $650
Full Park Non-Profit $520

JACK O'CONNELL PARK
BBQ Area Flat Rate $160
BBQ Area Non-Profit Flat Rate $100
Full Park Flate Rate $500
Full Park Non-Profit Flat Rate $400
All Fields for Recreational Use Fees
Reservation Deposit (Non-refundable) $100/per day for tournaments/game days Field Use (per hour)
Private Use $30
Non-profit Use $15
DOWNTOWN CITY PARKING LOT**
One-Time User Fee (Non-Refundable) $100
Fee $200/day

SPECIAL EVENTS
Mexican Independence Day Parade & Fiesta Full Cost Recovery for City overtime Christmas Parade and all City out-of pocket costs.

Guadalupe PD/Lions Club Trunk or Treat No charge for staff assistance Other Events Approved by Council during regular work week. *Unless another fee agreement is negotiated and approved by the City Council. See list of approved non-profits **Only available for special events authorized by City Council.

Full cost recovery = direct cost (personnel time & materials) + 35% overhead.

Any requested service not covered by Master Fee Schedule will be charged actual cost at full cost recovery.

Page 1 of 2 ends

RESOLUTION NO. 2023-76

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE AMENDING THE MASTER FEE SCHEDULE – PART 2, SECTION B-1, PARK & FACILITY USE & SPECIAL EVENTS WHEREAS, the City Council is empowered to impose reasonable fees, rates, and charges for use of City facilities and parks; and
WHEREAS, the City of Guadalupe Municipal Code section 3.32.030.A provides that all fees charged by the City for the use of City facilities, delivery of City services, business licenses, and other regulatory or revenue-producing activities not otherwise preempted by the County, State or federal jurisdictions, shall be established and adjusted by the City Council resolution; and WHEREAS, the City of Guadalupe supports youth recreation and other events and the use of City facilities and parks in the community; and
WHEREAS, the City facilities and parks must be maintained to be appropriately viable for rental purposes; and
WHEREAS, the City cannot provide such facilities and parks for rental purposes without reasonable rental fees to be charged; and
WHEREAS, after receiving a report of the proposed changes in fees and charges contained in the City of Guadalupe Master Fee Schedule – Part 2, Section B-1, the City Council deems it in the public interest and welfare to modify these fees.

NOW, THREFORE BE IT RESOLVED by the City Council of the City of Guadalupe as follows:

SECTION 1: The recitals herein are adopted as findings of the City Council. After receiving a report of the proposed changes in fees and charges set forth in the City of Guadalupe Master Fee Schedule – Part 2, Section B-1, the City Council hereby approves the modifications contained in the said proposed schedule.

SECTION 2: All the fees and charges approved by this resolution are effective immediately.

PASSED AND ADOPTED at a regular meeting on the 12th of September 2023 by the following vote:

MOTION:

AYES:

ATTACHMENT 2

Page 2 of 2 ends

NOES:

ABSENT:

ABSTAINED:

I, Amelia M. Villegas, City Clerk of the City of Guadalupe, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2023-76 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held September 12, 2023, and that same was approved and adopted.

ATTEST:
_____________________________ ________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
_________________________________
Phillip Sinco, City Attorney

Page 1 of 2 ends

Agenda Item No. 16

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of September 12, 2023
________________________________ __________________________________ Prepared by: Approved by:

Michael Cash, Director of Public Safety Todd Bodem, City Administrator SUBJECT: Expansion of the residential permit parking pilot project in the 1000 block of Guadalupe Street.

RECOMMENDATION:

It is recommended that the City Council adopt Resolution No. 2023-77 expanding the pilot program for the 1000 block of Guadalupe Street.

BACKGROUND:

As reported to the City Council at its meeting on May 10, 2022, Public Safety staff had received a city departmental request to enforce the downtown posted, “No Overnight Street Parking between the hours of 12 midnight and 6 a.m.” parking regulation to enable the weekly Friday morning street sweeping contracted activity. In connection with this request, City police officers issued parking citations for illegally parking in the area after hours. Several residents who reside in the 1000 block of Guadalupe St. complained about these citations, and stated there are no available off-street parking spaces for them to park. These residents requested assistance from the City with this problem.

At that time, staff believed that within this one-block location, 1000 Guadalupe Street, only four (4) residential units did not have off-street parking. The Director of Public Safety reported at the May 10th Council meeting about this situation and requested direction from the Council on how to proceed.

Information concerning how other cities have handled similar parking issues, including permit parking programs, was provided.

The City Council directed staff to develop a permit parking program that would allow the residents at these four (4) residential units located in the 1000 block of Guadalupe Street to legally park their vehicles overnight with the exception of Friday mornings before 6 a.m. so that street sweeping can be performed.

Since that time, it has come to the attention of staff that there are more than only four (4) residential units that do not have off-street parking in the 1000 block of Guadalupe Street. Several residents from this area spoke during the Community Forum portion of the City Council meeting of August 22, 2023, and explained that they did not have off-street parking for their units, which was a fact previously unknown to Public Safety staff.

Michael Cash

Page 2 of 2 ends

DISCUSSION:

California Vehicle Code §22507 provides that cities may, by resolution, designate streets upon which adjacent businesses and residents and their guests may have preferential parking privileges via a permit system, while other parking is restricted. If such a permit parking system is established, Section 22507 requires that signs or markings giving adequate notice of the permit parking system must be posted before the resolution applies.

In response to Council’s previous direction given at the May 10th Council meeting, and consistent with Vehicle Code §22507, staff developed a pilot permit parking program exclusive for the 1000 block of Guadalupe Street. The program authorized highly limited permit parking--possible only for the four residences that lack onsite parking. In retrospect, staff should not have limited the program only to these four specific residences since, as it turned out, there were some additional properties without offstreet parking in the 1000 block of Guadalupe Street that were unknown to staff.

The proposed resolution for the Council’s consideration is essentially the same as the resolution that established the pilot residential parking program for the 1000 block of Guadalupe Street, but eliminates reference to the number of residences in this area without off-street parking.

The staff report for the establishment of this pilot program stated that, should this pilot program be “successful, it could be expanded to other areas in the City that face similar challenges. If the pilot program is not successful, the Council could eliminate it.” Staff believes that this program could be made permanent for the 1000 block of Guadalupe Street because it appears to have solved a significant problem for residents in this area who do not have off-street parking, and should the Council agree, staff would welcome any direction from the Council concerning that. In addition, the Council may wish to consider allowing this program to apply City-wide, on a case-by-case basis. If so, staff would again welcome any direction from the Council concerning this.

FISCAL IMPACT:

None.

ATTACHMENT:

1. Resolution No. 2023-77 expanding the pilot residential permit parking program for the 1000 block of Guadalupe Street.

RESOLUTION NO. 2023-77

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUADALUPE, CALIFORNIA,

EXPANDING THE PILOT RESIDENTIAL PERMIT PARKING PROGRAM
FOR THE 1000 BLOCK OF GUADALUPE STREET
WHEREAS, under California Vehicle Code §22507, cities may by resolution designate streets upon which adjacent businesses and residents and their guests may have preferential parking privileges via a permit system, while other parking is restricted; and WHEREAS, Section 22507 requires that signs or markings giving adequate notice of the permit parking system must be posted before the resolution applies; and WHEREAS, the City has previously prohibited parking between the hours of 12:00 midnight and 6:00 a.m. in the 1000 Block of Guadalupe Street, and has provided notice of this restriction via signage; and
WHEREAS, the City has arranged for street sweeping on the 1000 Block of Guadalupe Street on Friday mornings; and
WHEREAS, the City had received written complaints about the lack of available parking from several area residents who have received parking citations; and WHEREAS, the City Council received a report from the Director of Public Safety indicating that four of the residential units on the 1000 Block of Guadalupe Street did not have available onsite parking onsite at its May 10, 2022, meeting; and
WHEREAS, at its meeting on July 12, 2022, the City Council, by Resolution No. 2022-62, authorized the establishment of a pilot parking permit program to allow residents of the 1000 Block of Guadalupe Street and their guests who do not have onsite parking to apply based on hardship for permits to park on Guadalupe Street during restricted hours except as specified (i.e., for street sweeping); and
WHEREAS, the program was thereafter successfully implemented, but it subsequently came to the City’s attention that there were more than only four (4) residential properties in the 1000 block of Guadalupe Street that did not have off-street parking, and several of the residents of these properties came to the City Council’s meeting of August 22, 2023, and spoke about this during the Community Participating Forum portion of the meeting; and WHEREAS, because the resolution that established the pilot permit parking program only applied to four (4) residential properties on the 1000 block of Guadalupe Street, in order to issue permits for the additional residents who reside in the 1000 block of Guadalupe Street and do not have off-street parking, it is necessary to expand the program to any and all residents who reside in the 1000 block of Guadalupe Street and lack off-street parking.

ATTACHMENT 1
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Guadalupe:

SECTION 1: The 1000 Block of Guadalupe Street is a street previously designated by the Council to allow preferential parking permits allowing parking on Guadalupe Street without respect to time limits (except for street sweeping as stated on posted signs) for those residents (and their guests) who reside on a property that does not have offstreet parking.

SECTION 2: The Director of Public Safety is authorized to expand this pilot permit parking program to all properties in the 1000 block of Guadalupe Street beyond the four (4) specific residences originally identified by staff at the time when the program was established.

PASSED AND ADOPTED at a regular meeting on the 12th day of September 2023 by the following vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Amelia M. Villegas, City Clerk of the City of Guadalupe DO HEREBY CERTIFY that the foregoing Resolution, being C.C. Resolution No. 2023-77 has been duly signed by the Mayor and attested by the City Clerk, all at a regular meeting of the City Council, held on September 12, 2023, and that same was approved and adopted.

ATTEST:
__________________________________ __________________________________ Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
___________________________________
Philip F. Sinco, City Attorney

Page 1 of 2 ends

Agenda Item No. 17

REPORT TO THE CITY COUNCIL OF THE CITY OF GUADALUPE
Agenda of September 12, 2023
_______________________________ _________________________________ Prepared by: Approved by:

Philip F. Sinco, City Attorney Todd Bodem, City Administrator SUBJECT: Expedited permitting process for EV charging stations RECOMMENDATION:

That the City Council introduce and conduct the first reading by title only, waiving further reading of Ordinance No. 2023-511 establishing an expedited permitting process for electric vehicle charging stations.

BACKGROUND:

In October 2015, AB 1236 was signed into law (codified as Government Code section 65850.7). AB 1236 required local jurisdictions with a population less than 200,000 residents to adopt an ordinance to create an expedited, streamlined permitting process for electric vehicle charging stations (EVCS) on or before September 30, 2017. While this law has been in effect since 2016, due to lack of awareness and enforcement, a new bill (AB 970) was passed extending the deadline for jurisdictions that were supposed to have adopted an ordinance to streamline EV charging stations for jurisdictions over 200,000 to January 2022, and for jurisdictions (like Guadalupe) with less than 200,000, until January 1, 2023. The City has not yet adopted such an ordinance and is slightly behind. The proposed ordinance attached hereto (Attachment 1) is intended to satisfy State requirements for compliance with AB 1236 and AB 970.

DISCUSSION:

An electric vehicle charging station as defined in AB 1236 means any level of electric vehicle supply equipment station that delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle. California Government Code Section 65850.7 states that, “it is the policy of the State to promote and encourage the installation and use of electric vehicle charging stations by removing obstacles to, and minimizing costs of, permitting for such stations.” Encouraging electric vehicle charging stations is also identified in the City’s budget and Strategic Plan. Streamlining permitting processes for electric vehicle charging infrastructure can help to reduce the time and soft costs associated with installation and accelerate the use of electric vehicles.

Below is a summary of the provisions required by AB 1236:
• Permitting Checklist – A checklist of all requirements needed for expedited review is required to be available and posted on the City website. The checklist may be based on recommendations in the most current version of the “Plug-in Electric Vehicle Infrastructure Permitting Checklist” in the Zero-Emission Philip F. Sinco

Page 2 of 2 ends

Vehicles in California: Community Readiness Guidebook published by the Governor’s Office of Planning and Research.
• Administrative Approval of EVCS – Projects that meet the expedited checklist shall be deemed complete and administratively approved through building permit or other non-discretionary permit. • Approval Limited to Health and Safety Review – Project review is limited to health and safety requirements found under local, state, and federal law. The decision of the building official is appealable to the Planning Commission. Such approval does not authorize an applicant to energize or utilize the EVCS until approval is granted by the City.
• Electronic Submittal and Signatures Accepted – The Building Official shall allow for electronic submittal of permit applications as well as accept electronic signatures on permit applications. • EVCS Not Subject to Association Approval – Permit approval is not subject to approval of an association, as defined in California Civil Code Section 4080.
• One Complete Deficiency Notice – Issuance of one complete written correction notice detailing all deficiencies in an incomplete application and any additional information needed to be eligible for expedited permit issuance.

In addition, in order to further ease the ability to install EV charging stations, the Planning Director decided to amend various sections of Title 18 (Zoning Ordinance) to make approval of EV charging stations subject to a ministerial approval in multi-family residential zones as well as manufacturing, industrial, and public facilities zones (unless the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety, in which case a conditional use permit will be required). These changes are included in the proposed ordinance (Attachment 1).

CEQA:

The proposed ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(3) of the CEQA Guidelines (Title 14, Chapter 3 of the California Code of Regulations) because the activity is not a project as defined in Section 15378 and Section 15061(b)(3) of the CEQA Guidelines, because the activity is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment. A Notice of Exemption is attached hereto (Attachment 2).

FISCAL IMPACT:

None.

ATTACHMENTS:

1. Ordinance No. 2023-511 entitled “An Ordinance of the City of Guadalupe, California, Amending Title 15 and Various Sections of Title 18 of the Guadalupe Municipal Code Establishing a Streamlined Permitting Process for Electric Vehicle Charging Stations, and Title 18, Allowing the Ministerial Approval of EVCS in Multi-Family Developments in R-2 and R-3 Zone Designations”.

2. Notice of Exemption
ORDINANCE NO. 2023-511
AN ORDINANCE OF THE CITY OF GUADALUPE, CALIFORNIA, AMENDING TITLE 15 AND VARIOUS SECTIONS OF TITLE 18 OF THE GUADALUPE MUNICIPAL CODE ESTABLISHING A

STREAMLINED PERMITTING PROCESS FOR ELECTRIC VEHICLE CHARGING STATIONS WHEREAS, the State of California and the City Guadalupe have consistently promoted and encouraged the use of fuel-efficient electric vehicles; and WHEREAS, the State of California adopted Assembly Bill 1236, which requires local agencies to adopt an ordinance that creates an expedited and streamlined permitting process for electric vehicle charging systems; and
WHEREAS, the creation of an expedited, streamlined permitting process for electric vehicle charging stations would facilitate convenient charging of electric vehicles and help reduce the City’s reliance on environmentally damaging fossil fuels.

NOW, THEREFORE, the City Council of the City of Guadalupe does hereby ordain as follows:

SECTION 1. Chapter 15.16 is hereby added to Title 15 of the Guadalupe Municipal Code to read as follows:

15.16.010 Purpose.

The purpose of this Chapter is to provide expedited, streamlined permitting process for electric vehicle charging stations that complies AB 1236 for Electric Vehicle Charging Stations (Chapter 598 Section 65850.7). This Chapter encourages the use of electric vehicle charging station by removing unreasonable barriers, minimizing costs to property owners of the City of Guadalupe, and expanding the ability of property owners to install electric vehicle charging systems. This Chapter allows the City of Guadalupe to achieve these goals while protecting the public health and safety.

15.16.020 Definitions.

A. “Electric vehicle charging station” or “charging station” means any level of electric vehicle supply equipment station that is designed and builtin compliance with Article 625 of the California Electrical Code, as it reads on the effective date of this Chapter, and delivers electricity from a source outside an electric vehicle into a plug-in electric vehicle.

B. “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

C. “Electronic submittal” means the utilization of one or more of the following:

1. Electronic mail or email.

2. The internet.

ATTACHMENT 1

3. Facsimile.

15.16.030. Permitting Process.

Consistent with Government Code Section 65850.7, the Building Official or delegee shall implement an expedited, streamlined permitting process for electric vehicle charging stations, and adopt a checklist of all requirements with which electric vehicle charging stations shall comply with in order to be eligible for expedited review. The expedited, streamlined permitting process and checklist may refer to the recommendations contained in the most current version of the “Plug-In Electric Vehicle Infrastructure Permitting Checklist” of the “Zero-Emission Vehicles in California: Community Readiness Guidebook” as published by the Governor’s Office of Planning and Research. The City’s adopted checklist shall be published on the City’s website.

15.16.040. Permit Application.

Prior to submitting an application for processing, the applicant shall verify that the installation of an electric vehicle charging station will not have specific, adverse impact to public health and safety and building occupants. Verification by the applicant includes but is not limited to: electrical system capacity and loads; electrical system wiring, bonding and overcurrent protection; building infrastructure affected by charging station equipment and associated conduits; areas of charging station equipment and vehicle parking.

A. A permit application that satisfies the information requirements in the City’s adopted checklist shall be deemed complete and be promptly processed. Upon confirmation by the Building Official or delegee that the permit application and supporting documents meets the requirements of the City adopted checklist, and is consistent with all applicable laws and health and safety standards, the Building Official or delegee shall, consistent with Government Code Section 65850.7, approve the application and issue all necessary permits. Such approval does not authorize an applicant to energize or utilize the electric vehicle charging station until approval is granted by the City. If the Building Official or delegee determines that the permit application is incomplete, he or she shall issue a written correction notice to the applicant, detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance.

B. Consistent with Government Code Section 65850.7, the Building Official or delegee shall allow for electronic submittal of permit applications covered by this Ordinance and associated supporting documentations. In accepting such permit applications, the Building Official or delegee shall also accept electronic signatures on all forms, applications, and other documentation in lieu of a wet signature by any applicant.

15.16.050. Technical Review.

A. It is the intent of this Chapter is to encourage the installation of electric vehicle charging stations by removing obstacles to permitting for charging stations so long as the action does not supersede the Building Official’s authority to address higher priority life-safety situations. If the Building Official makes a finding based on substantial evidence that the electric vehicle charging station could have a specific adverse impact upon the public health or safety, as defined in this Chapter, the City may require the applicant to apply for a conditional use permit.

B. In the technical review of a charging station, consistent with Government Code Section 65850.7, the Building Official shall not condition the approval for any electric vehicle charging station permit on the approval of such a system by an association, as that term is defined by Civil Code Section 4080.

15.16.060. Electric Vehicle Charging Station Installation Requirements.

A. Electric vehicle charging station equipment shall meet the requirements of the California Electrical Code, the Society of Automotive Engineers, the National Electrical Manufacturers Association, and accredited testing laboratories such as Underwriters Laboratories, and rules of the Public Utilities Commission or a Municipal Electric Utility Company regarding safety and reliability.

B. Installation of electric vehicle charging stations and associated wiring, bonding, disconnecting means and overcurrent protective devices shall meet the requirements of Article 625 and all applicable provisions of the California Electrical Code.

C. Installation of electric vehicle charging stations shall be incorporated into the load calculations of all new or existing electrical services and shall meet the requirements of the California Electrical Code.

Electric vehicle charging equipment shall be considered a continuous load.

D. Anchorage of either floor-mounted or wall-mounted electric vehicle charging stations shall meet the requirements of the California Building or Residential Code as applicable per occupancy, and the provisions of the manufacturer’s installation instructions. Mounting of charging stations shall not adversely affect building elements.

SECTION 2. Section 18.28.020.H is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.28.020 Permitted uses.

Uses permitted in the R-2 district include:

A. One or more single-family or multiple-family dwellings, including apartment houses or condominiums, plus ADUs and JADUs consistent with Chapter 18.53, provided that there shall be no more than one dwelling unit for each 2,178 square feet of land within the lot or parcel on which the dwelling is located. All dwellings shall be of a permanent character, placed upon a permanent foundation, and shall not be a mobile home or other temporary or vehicular type of dwelling; B. All multiple units in R-2 medium-density residential zones placed on one lot must be attached;

C. Group dwellings with 6 or fewer residents, such as boardinghouses, family care homes, rest homes, convalescent homes, or other similar residential uses, provided that there shall not be more than one residing occupant for each 500 square feet of land within the lot or parcel on which the dwellings are located;

D. Accessory buildings or uses, only if constructed simultaneously with, or subsequent to, the main building on the same lot;

E. Public park or playground;

F. A minimum of 60% of the rear yard area shall be retained for landscaping. Storage of RVs, boats, trailers and other vehicles shall be stored on a paved surface for which zoning clearance is required;

G. Hosted short-term rentals as permitted by Section 18.55.03.;

H. Electric Vehicle Charging Station.

SECTION 3. Section 18.28.030.G is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.28.030 Conditional uses.

Uses permitted subject to obtaining a conditional use permit, or an administrative use permit when allowed, in the R-2 district include:

A. Group dwellings with more than 6 residents, such as boardinghouses, family care homes, rest homes, convalescent homes, or other similar residential uses, provided that such a group dwelling shall not be located within 300 feet of the boundaries of a parcel containing another group dwelling, unless a conditional use permit is issued on the basis that waiver of such separation requirement would not be materially detrimental or injurious to the property, improvements or uses in the immediate vicinity;

B. A church, public or private elementary school, public utility building or public building, along with required parking;

C. Accessory buildings or uses normally incidental to a single-family residence, if constructed or installed prior to the main building on the same lot;

D. A home occupation;

E. Employee housing as defined by Section 18.08.328 of this title, where accommodations are provided to 7 or more employees in a dwelling unit, or on a single parcel if there is also an accessory dwelling unit and/or a junior accessory dwelling unit in addition to the primary dwelling unit on the parcel;

F. Unhosted short-term rentals as permitted by Section18.55.040.; G. Electric Vehicle Charging Station, if the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety.

SECTION 4. Section 18.32.020.G is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.32.020 Permitted uses.

Uses permitted in the R-3 district include:

A. One or more single-family or multiple-family dwellings, including apartment houses or condominiums, plus ADUs and JADUs consistent with Chapter 18.53, provided that there shall be no more than one dwelling unit for each 1,452 square feet of land within the lot or parcel on which the dwelling is located. All dwellings shall be of a permanent character, placed upon a permanent foundation, and shall not be a mobile home or other temporary or vehicular type of dwelling;

B. Group dwellings with 6 or fewer residents, such as boardinghouses, family care homes, rest homes, convalescent homes, or other similar residential uses, provided that there shall not be more than one residing occupant for each 500 square feet of land within the lot or parcel on which the dwellings are located;

C. Offices, recreation facilities, dining rooms, laundry facilities and other incidental uses constructed simultaneously or subsequent to the main building on the same lot;

D. A church, public or private school, public building, public utility building, park or playground;

E. A minimum of 60% of the rear yard area shall be retained for landscaping. Storage of RVs, boats, trailers and other vehicles shall be stored on a paved surface for which zoning clearance is required;

F. Hosted short-term rentals as permitted by Section 18.55.030.;

G. Electric Vehicle Charging Station.

SECTION 5. Section 18.32.020.H is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.32.030 Conditional uses.

Uses permitted subject to obtaining a conditional use permit, or an administrative use permit when allowed, in the R-3 district include:

A. Mobile home parks or recreational vehicle parks;

B. Mortuaries;

C. A home occupation;

D. Group dwellings with more than 6 occupants, such as hotels, motels, boardinghouses, family care homes, rest homes, convalescent homes or other similar residential uses, provided that such a group dwelling shall not be located within 300 feet of the boundaries of a parcel containing another group dwelling, unless a conditional use permit is issued on the basis that waiver of such separation requirement would not be materially detrimental or injurious to the property, improvements or uses in the immediate vicinity;

E. Accessory buildings or uses normally incidental to one of the uses permitted above, if constructed or installed prior to the main building on the same lot;

F. Employee housing as defined by Section 18.08.328 of this title, where accommodations are provided to 7 or more employees in a dwelling unit, or on a single parcel if there is also an accessory dwelling unit and/or a junior accessory dwelling unit in addition to the primary dwelling unit on the parcel;

G. Unhosted short-term rentals as permitted by Section 18.55.040.;

H. Electric Vehicle Charging Station, if the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety.

SECTION 6. Section 18.35.020.26 is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.35.020 Permitted uses.

A. Uses permitted in the MIX zone include:

1. Ambulance service, taxi stand and bus depot;

2. Banks, offices, savings and loan, financial services;

3. Butcher shops, bakeries and other food preparation for retail sale;

4. Churches, meeting halls, theaters and auditoriums;

5. Clothing stores;

6. Department stores;

7. Dressmaking, tailor, jewelry and other small handicraft establishments;

8. Drug stores, pharmacies;

9. Eating, entertainment and event center establishments;

10. Grocery stores;

11. Hotels and motels;

12. Laundromats, laundry and dry-cleaning agencies;

13. Medical, dental and similar offices or clinics;

14. Mortuary;

15. Nursery school, daycare;

16. Physical fitness center, health clubs;

17. Professional offices, public and administrative offices;

18. Repair shops for small items;

19. Retail stores offering new merchandise for resale to the general public;

20. Restaurants and fast food establishments;

21. Retail sale of auto parts, tires, batteries, etc.;

22. Retail sale of furniture and appliances;

23. Wine tasting;

24. Residential development, up to 30 units per acre, including: (a) residences occupying second floors (e.g., above ground floor nonresidential uses) including single-room occupancies, boardinghouses, apartments, and stacked-flat style condominiums; and (b) attached two- and three-story residences occupying their own site. This second form of residential use is limited to townhouse-style condominiums, townhouse-style zero lot line single-family dwellings in a townhouse configuration. No ground level units are permitted north of Seventh Street on Guadalupe Street, consistent with the General Plan land use designation of Downtown Mixed-Use, and following the development standards of the design review provisions;

25. Adult oriented busine s identified by Chapter 18.15.;

26. Electric Vehicle Charging Station.

B. The following uses are permitted outside a building:

1. Carwash;

2. Service station;

3. Public and private parking lots and parking garages.

C. Accessory buildings, only if constructed simultaneously with or subsequent to the main building on the same lot.

D. Any other similar use which the City Council finds to be consistent with the purpose of the zoning district.

SECTION 7. Section 18.35.030.F is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.35.030 Conditional uses.

Uses permitted subject to obtaining a conditional use permit in the MIX district include:

A. Bars, taverns, and liquor stores;

B. Hospitals, convalescent homes, and family care homes or other group dwellings;

C. Outdoor sales, including drive-in food and drive-through banking facilities;

D. Employee housing as defined by Section18.08.328 of this title, where accommodations are provided to seven or more employees in a dwelling unit;

E. Retail (storefront) commercial cannabis business.;

F. Electric Vehicle Charging Station, if the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety.

SECTION 8. Section 18.36.020.17 is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.36.020 Permitted uses.

Permitted uses in the G-C district include:

A. The following uses within a building:

1. Ambulance service, taxi stand and bus depot;

2. Banks and loan offices;

3. Butcher shops, bakeries and other food preparation for retail sale;

4. Churches, meeting halls, theaters and auditoriums;

5. Dressmaking, tailor, jewelry and other small handicraft establishments;

6. Eating and entertainment establishments;

7. Grocery stores;

8. Hotels and motels;

9. Laundromats, laundry and dry-cleaning agencies;

10. Medical, dental and similar offices or clinics;

11. Mortuary;

12. Nursery school, daycare;

13. Professional, public and administrative offices;

14. Repair shops for small items;

15. Retail stores offering new merchandise for resale to the general public;

16. Single-family or multiple dwellings, only if located on floors above a permitted use.;

17. Electric Vehicle Charging Station.

B. Accessory buildings, only if constructed simultaneously with or subsequent to the main building on the same lot.

C. Public and private parking lots.

D. Manufacturing Uses.

1. Manufacturing, compounding, assembling, processing or treating drug and pharmaceuticals.

E. Other Services:

1. Carwash;

2. Restaurants and fast food places;

3. Retail sale of auto parts, tires, and batteries;

4. Retail sale of furniture and appliances;

5. Service stations.

F. Any other similar use which the City Council finds to be consistent with the purpose of the zoning district.

SECTION 9. Section 8.36.030.G is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.36.030 Conditional uses.

Uses permitted subject to obtaining a conditional use permit in the G-C district include:

A. Dwellings which are not on a floor above a permitted use;

B. Hospitals, convalescent homes, boardinghouses, and family care homes or other group dwellings;

C. Outdoor sales, including drive-in food and drive-through banking facilities;

D. Auto repair and parking garages;

E. Employee housing as defined by Section 18.08.328 of this title, where accommodations are provided to 7 or more employees in a dwelling unit;

F. Retail (storefront) commercial cannabis business.;

G. Electric Vehicle Charging Station, if the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety.

SECTION 10. Section 18.40.020.Q is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.40.020 Permitted uses.

Uses permitted in the industrial-commercial district include:

A. Ambulance service;
B. Automobile, truck or farm machinery sales facilities; C. Bakeries;
D. Carpenter, cabinet and woodworking shops or box manufacturing; E. Dwellings, limited to the use of a watchman or caretaker employed on the site, mobile or permanent;
F. Electric, plumbing, heating and sheet-metal shops;
G. Express offices, bus stations, shipping terminals;
H. General offices, professional offices and laboratories; I. Hardware, building material, machinery, feed and seed stores; J. Laundry and dry-cleaning facilities;
K. Public utility and municipal and communication facilities; L. Restaurants;
M. Secondhand sales wholly within a building;
N. Union halls, employment agencies;
O. Welding and machine shops;
P. Wholesale, storage and warehouse establishments.;
Q. Electric Vehicle Charging Station.

SECTION 11. Section 18.40.030.E is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.40.030 Conditional uses.

Uses permitted subject to obtaining a conditional use permit in the industrial-commercial (M-C) district include:

A. Animal hospitals, kennels and veterinary establishments;

B. Bulk petroleum distribution plants;

C. Automobile, truck or farm machinery service, repair and storage facilities;

D. Salvage or storage yards, including auto wrecking when conducted within a solid fence of a sufficient height to screen operations and materials inside, and commercial cannabis businesses involving distribution, manufacturing, testing labs, cultivation-processing, and/or microbusiness (non-cultivation).;

E. Electric Vehicle Charging Station, if the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety.

SECTION 12. Section 18.44.020.G.21 is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.44.020 Permitted uses.

Uses permitted in the G-I district include any of the following, or similar, manufacturing, compounding, assembling, processing or treating uses:

A. Agricultural Uses.

1. Agricultural industries, such as packing, canning and processing of agricultural products;

2. Bottling plants;

3. Box and container making or assembling;

4. Icemaking, cold storage or frozen-food processing facilities;

5. Manufacture of food products.

B. Manufacturing Uses.

1. Auto and other upholstery;

2. Bakery (wholesale);

3. Boat building and repair;

4. Cabinet shop;

5. Ceramic product manufacture;

6. Drug and pharmaceuticals;

7. Electrical and electronics equipment;

8. Garment;

9. Lumber yard, including milling;

10. Welding.

C. Processing.

1. Blueprinting or photocopying;

2. Carpet and rug cleaning plant;

3. Chemical or scientific laboratory;

4. Food processing;

5. Greenhouses (wholesale and retail).

6. Water softening;
D. Wholesaling, Warehousing and Storage.

1. Building materials;

2. Contractor storage yard;

3. Distribution businesses;

4. Feed and fuel;

5. Machinery and equipment rental;

6. Shipping and transportation.

7. Wholesaling and warehousing facilities;
E. Utilities. Distribution plant or substation.

F. Commercial Services. Automotive body repair or painting.

G. Other Services.

1. Advertising and related services;

2. Building and landscape maintenance services;

3. Carwash;

4. Contractor’s yard;

5. Convenience stores;

6. Delivery and private postal services;

7. Equipment rental;

8. Feed stores and farm supply stores;

9. Hardware stores;

10. Laundries;

11. Light manufacturing;

12. Photocopying services; photofinishing, blueprinting; printing and publishing;

13. Restaurants and fast food places;

14. Retail sale of auto parts, tires and batteries;

15. Retail sale of autos, boats, mobile homes;

16. Retail sale of building and landscaping materials;

17. Retail sale of furniture and appliances;

18. Service stations;

19. Swap meets;

20. Warehousing/wholesaling, mini-storage, moving companies.;

21. Electric Vehicle Charging Station.

SECTION 13. Section 18.44.030 of Title 18 of the Guadalupe Municipal Code is hereby amended to read as follows:

18.44.030 Conditional uses.

Uses subject to obtaining a conditional use permit in the G-I district include other manufacturing uses not listed in Section 18.44.020 and commercial cannabis businesses involving distribution, manufacturing, testing labs, cultivation-processing, and/or microbusiness (non-cultivation), and Electric Vehicle Charging Stations, if the Building Official or delegee determines the charging station could have a specific adverse impact upon the public health or safety.

SECTION 14. Section 18.49.020.J is hereby added to Title 18 of the Guadalupe Municipal Code to read as follows:

18.49.020 Permitted uses.

A. Governmental buildings and facilities designed for public use and accommodation;

B. Public libraries, museums, schools, and colleges;

C. Charitable and philanthropic institutions;

D. Cemeteries, crematories or mausoleums;

E. Water and wastewater treatment plants, substations and other public service facilities of a similar nature;

F. Uses, buildings and structures incidental, accessory and subordinate to permitted uses;

G. Churches;

H. Student housing;

I. Any uses which the City Council find to be similar to and within the intent and purpose of the PF district, that are no more obnoxious or detrimental to the public welfare, and are found by the City Council to be compatible with adjoining land uses, and which are of a comparable nature and of the same class as the uses enumerated above.;

J. Electric Vehicle Charging Station.

SECTION 15. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and has been found to be exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15060(c)(3) of the CEQA Guidelines (Title 14, Chapter 3 of the California Code of Regulations) because the activity is not a project as defined in Section 15378 and Section 15061(b)(3) of the CEQA Guidelines, because the activity is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment.

SECTION 16. The City Council declares that each section, subsection, paragraph, subparagraph, sentence, clause, and phrase of this Ordinance is severable and independent of every other section, subsection, paragraph, subparagraph, sentence, clause, and phrase of this Ordinance. If any section, subsection, paragraph, subparagraph, sentence, clause, or phrase of this Ordinance is held invalid, the City Council declares it would have adopted the remaining provisions of this Ordinance irrespective of the portion held invalid, and further declares its express intent that the remaining portions of this Ordinance should remain in effect after the invalid portion has been eliminated.

SECTION 17. The City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the City Clerk shall consult with the City Administrator and City Attorney concerning any changes deemed necessary.

INTRODUCED at a regular meeting of the City Council on the 12th day of September 2023, by the following roll call vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

PASSED AND APPROVED as the regular meeting of the City Council on the 26th day of September 2023, by the following roll call vote:

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:
____________________ ___ ______________________
Amelia M. Villegas, City Clerk Ariston Julian, Mayor
APPROVED AS TO FORM:
______________________________
Philip F. Sinco, City Attorney
Notice of Exemption
To: County Clerk From: Larry Appel, Planning Director
County of Santa Barbara City of Guadalupe
123 E. Anapamu Street 918 Obispo Street
Santa Barbara, CA 93101 Guadalupe, CA 93434
Project Title: Electric Vehicle Charging Station Ordinance Project Applicant: City of Guadalupe
Project Location-Specific: City-wide
Project Location-City: Guadalupe Project Location-County: Santa Barbara County Description of Nature, Purpose, and Beneficiaries of Project:

The City has prepared a draft ordinance to amend the Guadalupe Municipal Code allowing electric vehicle charging stations to be developed ministerially with an expedited process per AB 1236 reqirements.

Name of Public Agency Approving Project: Guadalupe City Council (Section 15060(c)(3) – not a project)
Name of Person or Agency Carrying Out Project: Todd Bodem, City Administrator Exempt Status: (check one)
__ Ministerial (Sec. 15268);
__ Declared Emergency (Sec. 15269(a));
__ Emergency Project (Sec. 15269(b)(c));
__ Categorical Exemption. State type and section number:

XX General Exemption (Section 15061(b)(3) – not subject to CEQA) and (Section 15060(c)(3) – not a project) Reasons why project is exempt:

The preparation of a new ordinance to comply with AB 1236 is not a project per CEQA guidelines.

Contact Person: Lawrence W. Appel (Area Code) Phone Number/Ext: (805) 598-8385 Signature: _______ Title: Contract Planning Director
Date received for filing at County Clerk’s Office: ________________ (Form prepared March 2018)
ATTACHMENT 2

Page 1 of 4 ends

Agenda Item No. 21

REPORT TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

OF THE CITY OF GUADALUPE
Agenda of September 12, 2023

_______________________________ ___________________________________ Prepared by: Approved by:

Joy Otsuki, Special Counsel to the Successor Agency Todd Bodem, City Administrator SUBJECT: Resolution of the Successor Agency to the Redevelopment Agency of the City of Guadalupe approving the Amended Recognized Obligation Payment Schedule (ROPS) 23- 24 for the January 1, 2024, through June 30, 2024 Period EXECUTIVE SUMMARY:

Pursuant to California Health and Safety Code (HSC) Section 34177.7(o)(1)(E), once per Recognized Obligation Payment Schedule (ROPS) period, and no later than October 1st of each year, a successor agency may submit one amendment to the ROPS, if the Santa Barbara Countywide Oversight Board (Oversight Board) makes a finding that a revision is necessary for the payment of approved enforceable obligations during the second one-half of the ROPS period, which shall be defined as January 1 to June 30, inclusive. The Successor Agency to the Redevelopment Agency of the City of Guadalupe (Successor Agency) desires to amend ROPS 2023-24B in order to reduce the amount of administrative costs requested.

BACKGROUND:

During the January 18, 2023, Oversight Board annual meeting, the Oversight Board expressed concern over the administrative costs claimed on the annual Recognized Obligation Payment Schedule for the period of July 1, 2023, through June 30, 2024 (ROPS 23-24). Additionally, the Oversight Board sent a letter requesting that the Successor Agency scrutinize its administrative costs. See attached Oversight Board Letter.

Further, the Department of Finance (DOF) has commented that the administrative costs “appear excessive given the number and nature of the obligations listed specific to the Successor Agency ROPS.” See attached DOF Letter.

The Admin Budget approved by the Successor Agency, DOF and the Oversight Board on January 18, 2023, for the ROPS 23-24 period was as follows:

Joy Otsuki

Page 2 of 4 ends

Guadalupe Successor Agency
Administrative Expenses
ROPS 23-24
City Administrator ) 74,026
(35% of base salary &
benefits)
Finance Director 53,044
(35% of base salary &
benefits)
127,070
Successor Agency Counsel 18,500
City Attorney 13,378
Professional Services 25,000
Allocated Costs 14,918
Contingency 10,000
Total Projected Admin Fees for full year 208,866
DISCUSSION:

The Successor Agency anticipates disposing of its final piece of real property (Al’s Union) by calendar year end and preparing a Last & Final ROPS in early to mid-2024. Administrative costs remain high due to the necessity of complying with the Surplus Lands Act in connection with the disposition of the Al’s Union property and the reconciliation of costs submitted to the Leaking Underground Storage Tank (LUST) fund for remediation of that same property. In addition, due to staff changes, the Successor Agency has not reconciled cash reported on the ROPS Report of Cash Balances to its general ledger for a number of years.

Cash will need to be reconciled before a Last & Final ROPS can be prepared.

Nonetheless, Successor Agency staff carefully reviewed its administrative cost budget with the goal of reducing it as much as possible. However, because DOF, in its Determination Letter for ROPS 23-24 (attached DOF Letter), determined that certain environmental consultant costs in the amount of $10,000 were administrative, and because the Successor Agency believes it will need further input from its environmental consultant to reconcile its general ledger costs to those submitted by the consultant to the LUST fund (estimated in the amount of $5,000), amended administrative costs include $15,000 for such remediation related costs that were not previously included in admin costs.

Were the Successor Agency not required to include what it previously considered as remediation project costs in administrative costs, the decrease in administrative costs requested for Amended ROPS 23-24B would be $31,442 or 15%. Instead, the decrease in the admin costs for Amended ROPS 23-24B is $16,442, or 7.87%.

Page 3 of 4 ends

The following quantifies the requested changes to the administrative cost budget on the Amended ROPS 23-24B by category:

Personnel
ROPS
23-24
127,070
Amd
ROPS
95,628
Difference
<31,442>
Legal Services 31,878 31,878 0
DOF Reclass of Remediation -

15,000 15,000
Other Professional Services 25,000 25,000 0
Overhead & Contingency 24,918 24,918 0
Total $208,866 $192,424

$16,442
A breakdown of administrative costs on the template provided by Oversight Board staff is attached to the Amended ROPS 23-24B included in Resolution No. 2023-03. No other changes are requested on the Amended ROPS 23-24B.

The Successor Agency intends to bring its Amended ROPS 23-24B before the Oversight Board at its September 13, 2023, meeting. After obtaining the Oversight Board’s approval, Successor Agency staff will then transmit the Amended ROPS 23-24B to the Department of Finance (DOF), with copies to the CAO, CAC, and SCO.

Upon receipt of an oversight board-approved ROPS, the DOF has until 15 days prior to the date for property tax distribution to make its final decision after the meet and confer. The RPTTF distribution dates for the ROPS 23-24A period and 23-24B period are on or about June 1, 2023, and January 2, 2024, respectively.

RECOMMENDATION:

That the Successor Agency Board adopt Resolution No. 2023-03 entitled “Resolution of the Successor Agency to the Redevelopment Agency of the City of Guadalupe Approving the Amended Recognized Obligation Payment Schedule for the January 1, 2023, through June 30, 2024 period.” ALTERNATIVE:

1. Direct the Executive Director to make modifications to the form of Amended ROPS 23-24B and adopt the Resolution submitted herewith subject to such modifications.

Page 4 of 4 ends

FISCAL IMPACT:

The Successor Agency is limited to making payments reflected on an approved ROPS; therefore, approval of the Amended ROPS 23-24B by the Successor Agency, Oversight Board and DOF is essential to the continued operation of the Successor Agency and wind-down of the affairs of the Former Agency.

CONCLUSION:

Staff recommends that the Successor Agency Board adopt Resolution No. 2023-03.

ATTACHMENTS:

1. Letter from Countywide Oversight Board

2. Letter from Department of Finance

3. SA Resolution No. 2023-03 entitled “Resolution of the Successor Agency to the Redevelopment Agency of the City of Guadalupe Adopting the Amended Recognized Obligation Payment Schedule for the January 1, 2024 through June 30, 2024 period.”
Santa Barbara Countywide Oversight Board
105 East Anapamu Street Rm. 303 i Santa Barbara CA 93101 i (805)568-2100 SBCOversightBoard.org i [email protected] BOARD

MEMBERS
Jeff Frapwell
County of Santa
Barbara
Luke Rioux
City Selection
Committee
Craig Geyer
Independent
Special District
Committee
Conrad Tedeschi
County
Superintendent of
Education
Laura Becker
Chancellor of the
California
Community
Colleges
Carole Van Sande
Board of
Supervisors Public
Member
Appointment
Vacant
Governor Employee
Organization
Appointment
July 31, 2023
Robert Perrault
City of Guadalupe Successor Agency
918 Obispo Street
Guadalupe, CA 93434
Re: Administrative Costs claimed on the annual Recognized Obligation Payment Schedule Dear Mr. Perrault:

During the January 18, 2023 Countywide Oversight Board annual meeting, the Oversight Board (Board) expressed concern over the administrative costs claimed on the annual Recognized Obligation Payment Schedule for the period of July 1, 2023, through June 30, 2024 (ROPS 23-24).

There have been repeated criticisms from the Department of Finance (DOF) that the administrative costs “appears excessive given the number and nature of the obligations listed on the ROPS.” Attached is a copy of the latest DOF letter for your reference.

Cognizant of its fiduciary responsibility of evaluating and approving reasonable administrative costs necessary to wind-down the successor agency, the Board at the January 18, 2023, meeting ordered successor agencies to return to the next scheduled Board meeting with a detailed justification of the total administrative costs on the ROPS 23-24. In discussions during the meeting, the Board recommended successor agencies to scrutinize their administrative costs for opportunities to reduce them to levels commensurate with the number and nature of obligations being managed and submit a revised ROPS 23-24 as appropriate.

The Board is scheduled to meet tentative on September 13, 2023 and you will need to submit your revised administrative costs in an Amendment to the ROPS 23-24 by August 21, 2023.

The Oversight Board Staff will be sending an administrative costs template and provide additional details on the deadlines for the amendment to the ROPS.

If you have any questions, please don’t hesitate to contact the Oversight Board Staff at [email protected].

Thank you,
Jeff Frapwell
Santa Barbara Countywide Oversight Board Chair
Assistant County Executive Officer
County of Santa Barbara Executive Office

ATTACHMENT 1
Transmitted via e-mail
April 14, 2023
Todd Bodem, City Administrator
City of Guadalupe
918 Obispo Street
Guadalupe, CA 93434
2023-24 Annual Recognized Obligation Payment Schedule
Pursuant to Health and Safety Code (HSC) section 34177 (o) (1), the City of Guadalupe Successor Agency (Agency) submitted an annual Recognized Obligation Payment Schedule for the period July 1, 2023 through June 30, 2024 (ROPS 23-24) to the California Department of Finance (Finance) on January 31, 2023. Finance has completed its review of the ROPS 23-24.

Based on a sample of line items reviewed and application of the law, Finance made the following determinations:
• Item No. 34 – Al's Union Site Remediation Project for the requested amount of $49,037 in Redevelopment Property Tax Trust Fund (RPTTF) funding is partially approved. This item is partially funded through the Underground Storage Tank Cleanup Fund (USTCF) and Finance has previously approved project-specific costs that are ineligible to be funded through the USTCF. Of the amount requested, it is our understanding $1,581 of costs not submitted to USTCF is allowed, $37,456 is reclassified to Other Funds to allow for payment once USTCF reimbursement occurs, and $10,000 is not eligible for RPTTF funding being administrative in nature. • The administrative costs claimed are within the fiscal year administrative cap pursuant to HSC section 34171 (b) (3). However, Finance notes the Oversight Board (OB) has approved an amount that appears excessive, given the number and nature of the obligations listed on the ROPS. HSC section 34179 (i) requires the OB to exercise a fiduciary duty to the taxing entities. Therefore, Finance encourages the OB to apply adequate oversight when evaluating the administrative resources necessary to successfully wind-down the Agency.

Pursuant to HSC section 34186, successor agencies are required to report differences between actual payments and past estimated obligations (prior period adjustments) for the July 1, 2020 through June 30, 2021 (ROPS 20-21) period. The ROPS 20-21 prior period adjustment (PPA) will offset the ROPS 23-24 RPTTF distribution. The County AuditorController’s review of the PPA form submitted by the Agency resulted in no PPA.

ATTACHMENT 2
Todd Bodem
April 14, 2023

Page 2 ends

The Agency’s maximum approved RPTTF distribution for the reporting period is $677,200, as summarized in the Approved RPTTF Distribution table (see Attachment).

RPTTF distributions occur biannually, one distribution for the July 1, 2023 through December 31, 2023 period (ROPS A period), and one distribution for the January 1, 2024 through June 30, 2024 period (ROPS B period), based on Finance's approved amounts.

Since this determination is for the entire ROPS 23-24 period, the Agency is authorized to receive up to the maximum approved RPTTF through the combined ROPS A and B period distributions.

Except for the adjusted item, Finance approves the remaining items listed on the ROPS 23-24 at this time. If the Agency disagrees with our determination with respect to any items on the ROPS 23-24, except items which are the subject of litigation disputing our previous or related determinations, the Agency may request a Meet and Confer within five business days from the date of this letter. The Agency must use the RAD App to complete and submit its Meet and Confer request form. The Meet and Confer process and guidelines are available on our website:
http://dof.ca.gov/Programs/Redevelopment/Meet_And_Confer/ Absent a Meet and Confer, this is our final determination regarding the obligations listed on the ROPS 23-24. This determination only applies to items when funding was requested for the 12-month period. If a determination by Finance in a previous ROPS is currently the subject of litigation, the item will continue to reflect the determination until the matter is resolved.

The ROPS 23-24 form submitted by the Agency and this determination letter will be posted on our website:
http://dof.ca.gov/Programs/Redevelopment/ROPS/
This determination is effective for the ROPS 23-24 period only and should not be conclusively relied upon for future ROPS periods. All items listed on a future ROPS are subject to Finance's review and may be adjusted even if not adjusted on this ROPS or a preceding ROPS. The only exception is for items that have received a Final and Conclusive determination from Finance pursuant to HSC section 34177.5 (i). Finance’s review of Final and Conclusive items is limited to confirming the scheduled payments as required by the obligation.

The amount available from the RPTTF is the same as the amount of property tax increment available prior to the enactment of the redevelopment dissolution law.

Therefore, as a practical matter, the ability to fund the items on the ROPS with property tax increment is limited to the amount of funding available to the Agency in the RPTTF.

City of Guadalupe
Trevor Lysek, Division Chief Property Tax Division, Santa Barbara County Ed Price, Countywide Oversight Board Representative
Todd Bodem
April 14, 2023

Page 3 ends

Please direct inquiries to Joshua Mortimer, Supervisor, or Mark-Anthony Lacy, Staff, at (916) 322-2985.

Sincerely,

JENNIFER WHITAKER
Program Budget Manager
cc: Joy Heuser Otsuki, Legal Counsel, Leibold McClendon & Mann, P.C., Attachment
Approved RPTTF Distribution
July 2023 through June 2024
ROPS A ROPS B Total
RPTTF Requested $ 447,431 $ 68,359 $ 515,790
Administrative RPTTF Requested 104,433 104,433 208,866
Total RPTTF Requested 551,864 172,792 724,656
RPTTF Requested 447,431 68,359 515,790
Adjustment(s)
Item No. 34 (47,456) 0 (47,456)
RPTTF Authorized 399,975 68,359 468,334
Administrative RPTTF Authorized 104,433 104,433 208,866 Total RPTTF Approved for Distribution $ 504,408 $ 172,792 $ 677,200 Todd Bodem
April 14, 2023

Page 4 ends

Page 1 of 2 ends

SUCCESSOR AGENCY RESOLUTION NO. 2023-03

RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE

CITY OF GUADALUPE, CALIFORNIA ADOPTING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE JANUARY 1, 2024, THROUGH JUNE 30, 2024 PERIOD WHEREAS, Health and Safety Code (HSC) section 34177 (o)(l)(E), allows an Agency to submit one amendment to the ROPS approved by Finance per ROPS period; and WHEREAS, The Agency has the need to amend the ROPS 23-24B for the January 1, 2024, through the June 30, 2024, period; and
WHEREAS, ABX126 requires the Successor Agency to approve the Amended Recognized Obligation Payment Schedule (ROPS) before submission to the Oversight Board for approval and distribution to the Department of Finance by October 1, 2023; and
WHEREAS, the Amended Recognized Obligation Payment Schedule (ROPS) has been studied and approved by the Guadalupe Successor Agency on September 12, 2023; and BE IT RESOLVED by the Guadalupe Successor Agency that:

The Amended Recognized Obligation payment Schedule (ROPS) for the Guadalupe Successor Agency for the Term of January 1, 2024, through June 30, 2024, is adopted.

PASSED, APPROVED, AND ADOPTED by the Guadalupe Successor Agency, on a motion by Board Member seconded by Board Member this 12th day of September 2023.

MOTION:

AYES:

NOES:

ABSENT:

ABSTAINED:

I, Amelia Villegas, Secretary of the Successor Agency to the Redevelopment Agency of the City of Guadalupe, do hereby certify that the foregoing Successor Agency Resolution No. 2023-03 was duly adopted by the Board of the Successor Agency to the Redevelopment Agency of the City of Guadalupe at a meeting held on September 12, 2023.

ATTEST:
________________________________
Amelia M. Villegas, Secretary
Successor Agency of the Redevelopment
Agency of the City of Guadalupe
__________________________________
Ariston Julian, Chair
Successor Agency of the Redevelopment
Agency of the City of Guadalupe
ATTACHMENT 3

Page 2 of 2 ends

APPROVED AS TO FORM:
__________________________________
Philip F. Sinco, Successor Agency Counsel

Name of Successor Agency
Administrative Costs
Hours 1 Total 2 Jul-Dec 3 Jan-Jun 4 Description 5
Personnel 352; 616 95,628 47,814 47,814
City Manager – oversee SA administration and prepare related documentation, Surplus Land Act compliance and resolution of remediation reimbursement issues. Base salary with benefits $211,503, 20% of cost allocated to SA. Finance Director– reconcile cash and remediation back to 2012 in preparation for Last & Final ROPS, maintain SA documentation, compile schedules and reports, coordinate with DOF and consultants RE: bond disclosure and facilitate debt and enforceable obligation payments. Base salary with benefits $152,368, 35% of cost allocated to SA.

Legal Services 116 31,878 15,939 15,939
Provision of legal services by City Attorney and Special Counsel as needed including but not limited to preparation of board and oversight board agenda materials, Surplus Land Act compliance, review of SA ROPS, PPA and related documents, interface with DOF and Oversight Board re questions and comments, and coordination with consultant, DOF and LUST re remediation reimbursements.

DOF Reclass of Remediation N/A 15,000 - 15,000
Finance reclassified $10,000 of remediation costs as administrative in its ROPS 23-24 Determination Letter. And additional $5,000 is requested for payment to environmental consultant to reconcile LUST reimbursement submittals with the SA's records in preparation of a Last & Final ROPS
Other Professional Services 125 25,000 17,500 7,500
Prepare ROPS, PPA, and supporting schedules; Respond to questions for Oversight Board, ACO, and DOF; supervise reconciliation of cash and remediation back to 2012 in preparation of Last & Final ROPS Overhead & Contingency N/A 24,918 12,459 12,459
Office overhead, utilities, maintenance and repairs, supplies, other SA expenses and contingency of $10,000 for reconciliation of cash and remediation and preparation of Last & Final ROPS
Total 241 192,424 93,712 98,712
Instructions
1 Indicate the number of hours spent on this activity
2 Total Costs for the year
3 Costs from July-Dec
4 Costs from Jan-Jun
5 Provide detailed description of these costs

Guadalupe City CouncilSeptember 12, 2023

Guadalupe City Council
September 12, 2023