Agenda packet — Pismo Beach City Council, September 20, 2022 (part 1 of 2)

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AGENDA
Pismo Beach City Council
Tuesday, September 20, 2022
Time Meeting Type Physical Location Virtual Participation Option 5:00 p.m. Closed Session Admin Conference Room, City Hall None 5:30 p.m. Regular Meeting 1 2 Council Chamber, City Hall https://us02web.zoom.us/j/84823715585 1 Live virtual participation is offered via Zoom.
2 Broadcast meeting also available, for viewing only, on cable Channel 20 and online at pismobeach.org/agenda.

0. HYBRID MEETING INSTRUCTIONS:

To continue conducting the people’s business within San Luis Obispo County, State of California, and CDC health and safety guidelines, meetings are being conducted in a hybrid format with both in-person and virtual public participation. Ways to watch this meeting and submit public comment are provided below.

Watch and participate in person:
• Regular Meeting: Visit the Council Chamber at City Hall, 760 Mattie Road, Pismo Beach, CA 93449. • To make Regular Meeting public comment, please submit an optional blue “speaker slip” to staff; the Mayor will ask you to approach the lectern to speak during the public comment period on your item of interest. • To make Closed Session public comment, please be present in the Chamber at the start of Closed Session; the Mayor will call for public comment prior to commencing the closed proceedings.

Watch and participate via Zoom:
• Regular Meeting only: Click this link on any computer or mobile device:
https://us02web.zoom.us/j/84823715585 . This URL may also be typed into a web browser. • To make Regular Meeting public comment, press the “raise your hand” button when the comment period for your item of interest begins. You will be notified when you’ve been unmuted and it’s your turn to speak.

Listen and participate via telephone:
• Regular Meeting only: Call 1-669-900-6833 to join by telephone audio only. Enter Meeting ID 848 2371 5585 when prompted.
• To make Regular Meeting public comment, press *9 to “raise your hand” when the comment period on your item of interest begins. You will be notified when you’ve been unmuted and it’s your turn to speak.

Watch online:
• Regular Meeting only: Visit www.pismobeach.org/agenda and scroll to “Upcoming Events.” When the live broadcast begins, an “In Progress” link will appear; click this link to watch the livestream. A recording of the meeting will be available on demand shortly after the meeting ends.

Watch on Channel 20:
• Regular Meeting only: Tune to local cable channel 20 in Pismo Beach; the meeting will be broadcast live.

Meetings are also replayed at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day the following week.

Submit written comment:
• Regular Meeting and Closed Session: In advance of the meeting, written comments may be emailed to [email protected] or mailed or delivered to the City Clerk’s Office, 760 Mattie Road, Pismo Beach, CA 93449. During the Regular Meeting meeting no later than the start of the comment period for your item of interest, written comment may be hand-delivered to staff in the Council Chamber. Emails submitted after the start of the meeting may not be fully considered prior to any action taken on the item.

Submit voicemail comment:
• Regular Meeting and Closed Session: Call 805-773-7005 and leave a voicemail before the meeting.

Voicemails submitted after the start of the meeting may not be fully considered prior to any action taken on the item. This automated voicemail line will not be answered or monitored for other purposes.

Please note:
• Meetings may begin a few minutes after the scheduled start time. • Meetings will be recorded, except closed sessions; these recordings are public record. • Phone numbers of call-in participants may be visible to other meeting participants, or in meeting recordings. • Phone numbers of voicemail commenters may be visible in the public record along with transcripts.

Please contact City Clerk Erica Inderlied at [email protected] with questions.

Council Agenda 9-20-2022

Pismo Beach City Council Agenda September 20, 2022

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Special Closed Session—5:00 p.m.

Administration Conference Room, City Hall, 760 Mattie Road, Pismo Beach, CA 93449

CALL TO ORDER: Mayor Waage

1. ROLL CALL:

Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Blake, Guthrie, Newton

2. PUBLIC COMMENT PERIOD
At this time, members of the public may comment on any item appearing on the agenda.

Please adhere to the following procedures when addressing the Council:
• Please limit your comments to 3 minutes or less.
• Unduly disruptive behavior will not be permitted.

Documents submitted to the Council become public record unless otherwise exempt from disclosure.

3. ANNOUNCEMENT OF CLOSED SESSION ITEM(S)

Item 3.A: Conference with Legal Counsel – Existing Litigation (Paragraph (1) of subdivision (d) of Government Code §54956.9) Name of Case: City of Pismo Beach vs. Pacific Harbor Homes Inc. / San Luis Obispo Superior Court Case No. 15CV-0627

4. CLOSED SESSION REPORT

5. ADJOURNMENT

Meeting Time Date Location
Regular Meeting 5:30 p.m. Tuesday, September 20, 2022 Council Chamber, City Hall

Council Agenda 9-20-2022

Pismo Beach City Council Agenda September 20, 2022

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Regular Meeting—5:30 p.m.

Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449

CALL TO ORDER: Mayor Waage

1. ROLL CALL:

Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Blake, Guthrie, Newton

2. PLEDGE OF ALLEGIANCE

3. ACCEPTANCE OF AGENDA

4. PRESENTATIONS

Item 4.A: Proclamation: National Hispanic Heritage Month (Latino Outreach Council)

5. PUBLIC COMMENT PERIOD
At this time, members of the public may comment on any item NOT appearing on the agenda. For items appearing on the agenda, including the Consent Calendar, the public will be invited to make comments during Council consideration of the item. In accordance with state law, matters raised as part of this comment period cannot be discussed or acted upon by the City Council at this time.

However, in response to a matter raised as part of this comment period, the Council may, during Item 13, City Council Comments and Requests, direct staff to assist a speaker, or schedule the matter for consideration on a future agenda.

Please adhere to the following procedures when addressing the Council:
• Please limit your comments to 3 minutes or less.
• Unduly disruptive behavior will not be permitted.

Documents submitted to the Council become public record unless otherwise exempt from disclosure.

6. CITY MANAGER’S REPORT

7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT

Council Agenda 9-20-2022

Pismo Beach City Council Agenda September 20, 2022

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8. COUNCIL COMMITTEE REPORTS

1. Air Pollution Control District, SLO County (Waage/Newton)

2. California Coastal Coalition Board (Reiss/Blake)

3. California Joint Powers Insurance Authority Board (Reiss)

4. Central Coast Community Energy Policy Board (Mayor)

5. Chapman Estate Foundation Liaison (Reiss)

6. Coastal Cities Group, League of CA Cities (Waage)

7. CAPSLO Board of Directors (Reiss)

8. Conference and Visitors Bureau Board Liaison (Newton)

9. Friends of Price House Liaison (Waage)

10. Hazard Mitigation & Fire Safety (Blake/Waage)

11. Homeless Services Oversight Council (Guthrie)

12. Integrated W aste Management Authority (Newton)

13. Mobile Home Rent Stabilization Subcommittee (Blake/Waage)

14. REACH (formerly EVC) (Blake)

15. Regional Transit Authority, SLO (Waage/Reiss)

16. Shell Beach Improvement Group Liaison (Newton/Reiss)

17. SLOCOG (Waage/Reiss)

18. South County Chambers of Commerce Gov’t Affairs (Blake)

19. Visit SLO CAL Advisory Committee (Newton)

20. Water Resources Advisory Committee, SLO (Guthrie)

21. Zone 3 Water Advisory Committee, SLO (Guthrie)
(Govt Code Section 53232.3)

9. CONSENT CALENDAR
All Consent Calendar items will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.

Item 9.A: Adoption of Meeting Minutes (Inderlied)

Recommendation: Adopt Minutes of the September 6, 2022 Regular Meeting.

Item 9.B: Payroll Register and Register of Demands (Feeser)

Recommendation: Approve the Register of Demands for August 19, 2022.

Item 9.C: Department Activity Reports for August 2022 (All)

Recommendation: Receive reports as information only.

Item 9.D: Monthly Investment Transaction Report of the City’s Cash and Investments for July 2022 of FY 2022-2023 (Feeser)

Recommendation: No action required; information only.

Item 9.E: Biennial Conflict of Interest Code Update (Inderlied)

Recommendation: Adopt a Resolution adopting a revised Conflict of Interest Code; rescinding Resolution No. R-2020-076.

Item 9.F: Adoption of Findings Relating to AB 361 (Virtual Meetings) (Inderlied)

Recommendation: Adopt the following findings with respect to the City of Pismo Beach’s utilization of the provisions of Assembly Bill 361, relating to Brown Act teleconferences:

1. The City Council has reconsidered the circumstances of the state of emergency created by the coronavirus pandemic.

2. The following circumstances exist:
• The state of emergency continues to directly impact the ability of the Council Members to meet safely in person.

Council Agenda 9-20-2022

Pismo Beach City Council Agenda September 20, 2022

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10. ITEMS PULLED FROM CONSENT CALENDAR

11. PUBLIC HEARINGS No earlier than 6:00 p.m.

None.

12. BUSINESS ITEMS May be reordered and heard prior to Public Hearings

Item 12.A: Water Supply Update (Fine)

Recommendation:

1. Receive an update on the City’s water supply; and

2. Discuss water conservation rebates and provide staff with direction on how to proceed.

Item 12.B: Zone 3 Contract Revisions (Fine)

Recommendation: Adopt a Resolution authorizing the Mayor to execute an Amended and Restated Water Supply Contract with the County of San Luis Obispo Flood Control and Water Conservation District, Zone 3.

Item 12.C: Code Compliance Update And Direction (Downing)

Recommendation: Receive a report from staff on current Code Compliance practices and provide direction on the following policy items:

1. Enforcement priorities for Code Compliance cases.

2. Types of violations that should be pursued on a proactive basis, versus a complaint basis.

3. Preferred approach to collecting unpaid fines associated with Code Compliance cases.

4. Dollar amount threshold, and other factors, that determine whether collections activities should be pursued.

13. CITY COUNCIL COMMENTS AND REQUESTS

14. ADJOURNMENT

To the following meeting(s). Special and Closed Session times may be subject to change, as noticed. Meetings will be held in a hybrid in-person / virtual format unless otherwise noted:

Meeting Time Date Location
Closed Session 4:30 p.m. Tuesday, October 4, 2022 Administration Conference Room, City Hall Regular Meeting 5:30 p.m. Tuesday, October 4, 2022 Council Chamber, City Hall Regular Council meetings will adjourn by 11:00 p.m. unless four-fifths of the Council votes to continue past that time. If the meeting is adjourned at 11:00 p.m., any remaining agenda items will be continued to the next regular meeting (R-97-04).

Council Agenda 9-20-2022

Pismo Beach City Council Agenda September 20, 2022

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AFFIDAVIT OF POSTING
I, Erica Inderlied, City Clerk for the City of Pismo Beach, declare under penalty of perjury that the foregoing agenda for the September 20, 2022 meeting(s) of the Pismo Beach City Council was posted on September 15, 2022, at City Hall, located at 760 Mattie Road, Pismo Beach, CA, as well as on the City’s website.

Erica Inderlied, City Clerk

Meeting Schedule: The City Council of Pismo Beach regularly meets on the first and third Tuesdays of each month at 5:30 p.m., unless otherwise noticed. Closed and Special sessions will be duly noticed as needed.

Council Agendas: Agendas for Regular Meetings are available for public review on the City’s website at pismobeach.org/agenda and upon request from the City Clerk’s Office, typically by 4:00 p.m. on the Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed Sessions and other Special meetings are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.

Related Materials: All materials submitted to the Council relating to items on this agenda are open for public inspection unless otherwise exempt by law. Staff reports and attachments published as part of this agenda packet, as well as copies of correspondence received relating to these agenda items and materials distributed at the meeting, may be obtained 1) in the consolidated online Agenda Center at pismobeach.org/agenda, 2) in the Access Pismo public records portal at pismobeach.org/accesspismo, 3) by request from the City Clerk at [email protected], or 4) in person at the City Clerk's Office, City Hall, 760 Mattie Road, Pismo Beach, Mon–-Fri 8:00 a.m.–-5:00 p.m. Please call (805) 773-7003 with any questions.

Broadcasting: Regular (televised) City Council meetings are available for viewing 24/7 at pismobeach.org/agenda, broadcast live on Channel 20, and re-broadcast during the week following the meeting on Channel 20 at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day.

Use of Equipment: Please contact the City Clerk’s Office if requesting to use the chamber equipment during public comment or as part of a scheduled presentation, 24 hours prior to the meeting at (805) 773-7003.

Notice Regarding Americans with Disabilities Act
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need agenda documents provided in an alternative format, please contact the City Clerk’s Office at 773-7003 as soon as possible prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-

35.104 ADA Title II).

Council Agenda 9-20-2022

A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA RECOGNIZING SEPTEMBER 15–OCTOBER 15, 2022 AS “NATIONAL HISPANIC HERITAGE MONTH”

WHEREAS, the City of Pismo Beach is welcoming, inclusive, and dedicated to improving the quality of life for those who live, work, and visit here; and

WHEREAS, what began in 1968 as Hispanic Heritage Week under President Johnson and was expanded by President Reagan in 1988 to cover a 30-day period starting on September 15, the United States observes Hispanic Heritage Month; and

WHEREAS, Hispanic Heritage Month celebrates the histories, cultures, and contributions, of those whose ancestors came to America from Spain, Mexico, the Caribbean, and Central and South America; and

WHEREAS, the purpose of Hispanic Heritage Month is to create awareness of the contributions of people of Hispanic Heritage to the American culture; and

WHEREAS, many people of Hispanic Heritage serve as civil rights leaders and community organizers, politicians, teachers, journalists, first responders, artists, healthcare professionals, athletes, inventors, entertainers, and more; and

WHEREAS, Hispanic Heritage Month has ties to the celebration of the rich tapestry of our community and reflects an array of distinct cultures; and

WHEREAS, the City of Pismo Beach is fortunate to have residents, business owners, workforce members, and visitors of Spanish and Latin American descent, who grow businesses, offer innovative ideas, strengthen our economy, create jobs, and contribute to our daily lives.

NOW, THEREFORE, the City Council of the City of Pismo Beach hereby proclaims September 15 – October 15, 2022 as “National Hispanic Heritage Month” and invites the community to learn more of the Hispanic culture, people, traditions and values that have positively enriched our community.

Dated this 20th day of September, 2022

________________________
Ed Waage, Mayor

Council Agenda 9-20-2022 4.A-1
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.A
` SUBJECT/TITLE:

ADOPTION OF MEETING MINUTES
RECOMMENDATION:

Adopt Minutes of the September 6, 2022 Regular Meeting.

BACKGROUND:

Attached for the Council’s consideration are the draft minutes of the subject meetings for review and adoption.

FISCAL IMPACT:

There is no fiscal impact associated with the preparation or adoption of meeting minutes.

ALTERNATIVES:

1. Adopt the minutes with revisions.

2.Decline to adopt the minutes; provide direction or request additional information.

ATTACHMENTS:

1.Minutes of the September 6, 2022 Regular Meeting
Submitted by: Erica Inderlied, City Clerk Meeting Date: September 20, 2022 City Manager Approval:

Council Agenda 9-20-2022 9.A-1
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DRAFT MINUTES
Pismo Beach City Council
Tuesday, September 6, 2022

Regular Meeting—5:30 p.m.

Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449

The City Council of the City of Pismo Beach met this date in a regular session with Mayor Waage presiding.

CALL TO ORDER: 5:30 p.m.

1. ROLL CALL:

Present: Absent:

Mayor Ed Waage Council Member Sheila Blake
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Scott Newton

Staff Present:

Matt Downing, Community Development Director
Nadia Feeser, Administrative Services Director
Benjamin Fine, Public Works Director/City Engineer
David Fleishman, City Attorney
Jorge Garcia, Assistant City Manager
Erica Inderlied, City Clerk
Gordon Jackson, Director of Tourism and Events
Paul Lee, Battalion Chief
James R. Lewis, City Manager
Jeff Smith, Chief of Police
Other staff present as noted below

2. PLEDGE OF ALLEGIANCE

Council Member Newton led the Pledge of Allegiance.

3. ACCEPTANCE OF AGENDA

No requests to reorder the agenda.

Council Agenda 9-20-2022 9.A-2
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4. PRESENTATIONS

None.

5. PUBLIC COMMENT PERIOD

Call for public comment:

Jeff Edwards commented.

6. CITY MANAGER’S REPORT

City Manager Lewis commented on various topics, including the September 14, 2022 Joint Meeting of the Arroyo Grande, Grover Beach, and Pismo Beach City Councils to discuss the Central Coast Blue project.

7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT

City Attorney Fleishman had nothing to report.

8. COUNCIL COMMITTEE REPORTS

None.

9. CONSENT CALENDAR

Call for public comment:

Stacy Inman commented on Item 9.F.

Action: Adopt Consent Calendar.

Motion: Guthrie
Second: Newton

Vote: The motion passed on the following vote (Items 9.A through 9.J):

Ayes: 4 Guthrie, Newton, Reiss, Waage
Noes: 0

Absent: 1 Blake
Abstain: 0
Recused: 0

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Item 9.A: Adoption of Meeting Minutes (Inderlied)

Recommendation:

Adopt Minutes of the August 16, 2022 Special and Regular Meeting.

Item 9.B: Payroll Register and Register of Demands (Feeser)

Recommendation:

1. Approve the Summary of Payroll Register for August 14, 2022 and August 28, 2022;

2. Approve the Register of Demands for August 5, 2022 and August 12, 2022.

Item 9.C: Monthly Investment Transaction Report of the City’s Cash And Investments For June 2022 of FY 2021-2022 (Feeser)

Recommendation:

No action required; information only.

Item 9.D: Quarterly Investment Report for the Three Months of April through June 2022—The Fourth Quarter of FY 2022 (Feeser)

Recommendation:

No action required; information only.

Item 9.E: Fiscal Year 2022 Fourth Quarter Financial Status Report (Feeser)

Recommendation:

Receive as information only. No actions are requested or recommended.

Item 9.F: Notice of Completion for the Shell Beach Water Reservoir #1 Replacement Project (Fine)

Recommendation:

Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the Shell Beach Water Reservoir #1 Replacement Project.

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Item 9.G: Agreement With Urban Planning Concepts, Inc. for In-House Planning Services (Downing)

Recommendation:

Adopt a Resolution authorizing the City Manager to execute an agreement for an amount not to exceed $126,000 with Urban Planning Concepts, Inc. for professional in-house planning services.

Legislative Record: Resolution R-2022-076 adopted.

Item 9.H: Award of Contract to WIP, Inc. for the Installation of Automated Audio-Visual Production Equipment in the Council Chamber (Garcia)

Recommendation:

Adopt a Resolution authorizing the City Manager to execute an agreement with PBR Enterprises, Inc., DBA WIP, for the installation of Automated Council Chamber Audio-Visual Production Equipment in the amount of $127,245.47 in Fiscal Year 2023, and making related budget adjustments.

Legislative Record: Resolution R-2022-077 adopted.

Item 9.I: Agreements with Landscape Structures, Inc. for Design and Purchase of Playground Equipment and with Callander
Associates Landscape Architecture, Inc. for Preparation of Construction Documents for the Palisades and Chumash Parks Playground Project (Fine)

Recommendation:

Adopt a Resolution authorizing the City Manager to:

1. Enter into a Professional Services Agreement with Landscape Structures, Inc. in the amount of $326,841.99 for design, purchase and delivery of playground equipment for the Palisades and Chumash Parks Playground Project;

2. Enter into a Professional Services Agreement with Callander Associates Landscape Architecture, Inc. (Callander Associates) in the amount of $109,342 for preparation of construction documents for the Palisades and Chumash Parks Playground Project; and
Authorizing staff to advertise for bids for the removal of the existing equipment and installation of the new equipment at Palisades and Chumash Parks; and appropriating related budget adjustments in fiscal year (FY) 2023.

Legislative Record: Resolution R-2022-078 adopted.

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Item 9.J: Adoption of Findings Relating To AB 361 (Virtual Meetings) (Inderlied)

Recommendation:

Adopt the following findings with respect to the City of Pismo Beach’s utilization of the provisions of Assembly Bill 361, relating to Brown Act teleconferences:

1. The City Council has reconsidered the circumstances of the state of emergency created by the coronavirus pandemic.

2. The following circumstances exist:
• The state of emergency continues to directly impact the ability of the Council Members to meet safely in person.

10. ITEMS PULLED FROM CONSENT

None.

11. PUBLIC HEARINGS

None.

12. BUSINESS ITEMS

Item 12.A: Quarterly Update and Direction to Staff for the Public Safety Facility Design-Build Project (Garcia)

Recommendation: Receive a quarterly update and provide staff direction for the Public Safety Facility Project.

Presenting staff:

Jorge Garcia, Assistant City Manager
Paul Lee, Battalion Chief
James R. Lewis, City Manager

Supplemental material submitted into the record.

Guest presenters:

Gary Campbell, Manns Woodward Studios

Call for public comment:

Dave Daguerre commented.

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Action: Consensus in support of directing staff to proceed with issuing an RFP for proposals from Design-Build Entities for the design of the “Option D” site layout for the Public Safety Facility Project, including the construction of a new Police Station at the site of Old City Hall and the remodeling and expansion of the existing Police Station site to serve as a new Fire Station.

In support: 4 Guthrie, Newton, Reiss, Waage
In opposition: 0

Absent: 1 Blake
Abstain: 0
Recused: 0

Item 12.B: Agreement with Rubio Medina, Architect for Architectural Design Services for the Pismo Beach Police Annex Building (Fine)

Recommendation: Adopt a Resolution authorizing the City Manager to enter into a Professional Services Agreement with Rubio Medina, Architect in the amount of $161,067 for architectural design services for the Pismo Beach Police Annex Building project.

Presenting staff:

Benjamin Fine, Public Works Director/City Engineer
James R. Lewis, City Manager

Call for public comment: No comment.

Action: Adopt a Resolution authorizing the City Manager to enter into a Professional Services Agreement with Rubio Medina, Architect in the amount of $161,067 for architectural design services for the Pismo Beach Police Annex Building project.

Motion: Guthrie
Second: Newton

Vote: The motion passed on the following vote:

Ayes: 4 Guthrie, Newton, Reiss, Waage
Noes: 0

Absent: 1 Blake
Abstain: 0
Recused: 0

Legislative Record: Resolution R-2022-079 adopted.

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13. CITY COUNCIL COMMENTS AND REQUESTS

None.

14. ADJOURNMENT

At 6:49 p.m.

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk

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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.B
SUBJECT/TITLE:

Approve the Register of Demands for August 19, 2022.

BACKGROUND:

Attached are the Summary of Payroll Register(s) and Register(s) of Demands (Check Registers) noted above, provided for Council approval.

FISCAL IMPACT:

As demonstrated in the attached payroll and check registers.

ALTERNATIVES:

1.Request additional information from staff.

ATTACHMENTS:

1.Register of Demands
Submitted by: Meeting Date: September 20, 2022
Nadia Feeser, Administrative Services Director / City Treasurer City Manager Approval:

9.B-1Council Agenda 9-20-2022
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US BANK
ACH/Vendor Check Check
Check#Number Payee Date Amount
ACH 10002 Internal Revenue Service 08/19/2022 98,580.81 Federal Income Tax PD 08/19/22 ACH 11224 Richards, Watson, Gershon Attorneys At Law 08/19/2022 36,984.63 Professional Legal Services June 2022 ACH 11305 Public Employees Retirement System 08/19/2022 64,674.42 PERS Retirement EE & ER PD 09/18/22 ACH 12260 dba: Mission Square ICMA Retirement Trust - 457 08/19/2022 22,226.80 ICMA 457 Deferred Comp PD 08/19/22 ACH 12305 Franchise Tax Board 08/19/2022 18,062.37 SDI & State Income Tax PD 08/19/22 ACH 12360 CalPERS 457 Plan 08/19/2022 291.67 PERS 457 Deferred Comp ER PD 08/19/22 ACH 12708 dba: Mission Square ICMA Retirement Trust-Roth IRA 08/19/2022 360.00 ICMA Roth IRA PD 08/19/22 ACH 13455 Wex 08/19/2022 913.69 Fuel for City Vehicles 7/7/22 - 8/7/22 123325 10830 Aramark 08/19/2022 1,594.92 Uniforms - July 2022 123326 12623 AT&T 9391012188 08/19/2022 2,937.43 Phone Bill - 07/10/22 - 08/09/22 123327 13278 AT&T 9391059148 08/19/2022 1,513.29 Phone Bill - 07/10/22 - 08/09/22 123328 UB*00926 KIM BENTLEY (T) 08/19/2022 75.40 Refund Check 017181-000, 224 SEAVIEW 123329 11392 Brenntag Pacific Inc. 08/19/2022 1,997.48 Sodium Bisulfite 123330 14038 Bureau Veritas North America, Inc. 08/19/2022 29,887.50 Certified Building Official and Support Service FY 22 123331 10964 California Building Standards Commission - CBSC 08/19/2022 153.00 Green Fees Apr-June 2022 123332 10798 Diana Carter 08/19/2022 1,080.00 Instructor: Creative Kids Theater Camp 8/8-8/11/22 #10887 123333 11451 Channel Islands Technology Integrators' Group 08/19/2022 18,148.33 Monthly Help Desk July 2022 123334 13105 Chapman Foundation 08/19/2022 506.00 Chapman Estate Docent Tour Fees June 2022 123335 12378 SLOACTTC County Of San Luis Obispo 08/19/2022 22,540.64 LAFCO Allocation 2022-23 123336 11803 Department Of Conservation 08/19/2022 340.12 SMIP Fees Apr - June 2022 123337 12638 DMV Renewal 08/19/2022 427.00 Registration fees for Thompson Pump 123338 12123 Farm Supply 08/19/2022 236.60 Parks General Equipment 123339 11703 Fire Chief's Assoc of SLO County 08/19/2022 5,325.00 Multiple FY 22/23 Membership Fees 123340 13669 Frontal Security Services of California 08/19/2022 157.50 Security Guard SBVH Event 8/06/22 123341 12235 Granicus, LLC 08/19/2022 3,498.90 Council Mtg Time Stamping & Broadcasting 7/28/22-10/27/22 123342 13385 IPS Group, Inc. 08/19/2022 2,078.21 IPS Transaction Fees - July 2022 123343 UB*00927 NATE & KATHLEEN JANZEN (T) 08/19/2022 65.43 Refund Check 018407-000, 122 BAKER 123344 12032 Kimball Midwest 08/19/2022 250.85 WWTP Maintenance Parts 123345 11230 MBS Land Surveys 08/19/2022 10,100.00 Palisades Park Surveying 123346 10097 Miners Hardware 08/19/2022 506.24 Maintenance Supplies 123347 UB*00924 SEAN MULLAHEY (T) 08/19/2022 65.44 Refund Check 006782-000, 357 SANTA FE 123348 10039 New Times 08/19/2022 213.00 Legal Notice Advertising 123349 UB*00925 MICHAEL & CLAIRE NGUYEN (T) 08/19/2022 22.36 Refund Check 017444-000, 1315 COSTA DEL SOL 123350 14343 ODP Business Solutions, LLC 08/19/2022 320.79 Office Supplies 123351 13197 Olin Corporation 08/19/2022 14,459.96 Supply of Sodium Hypochlorite 123352 12315 Pacific Gas & Electric Company 08/19/2022 3,070.33 Electricity 07/07/22 - 08/07/22 123353 13149 Pismo Beach Lifeguard Association 08/19/2022 5.00 Lifeguard Dues PD 08/19/22 123354 10824 Play-Well Teknologies 08/19/2022 952.00 Instructor: Lego Summer Camp 8/8/22 - 8/12/22 #10890 123355 12022 Pismo Beach Police Officer's Association 08/19/2022 1,477.27 POA Dues PD 08/19/22 123356 12335 Procare Janitorial Supply Inc 08/19/2022 1,430.44 Janitorial Supplies 123357 13796 ReadyRefresh by Nestle 08/19/2022 204.52 Drinking Water July 2022 -WasteWater 123358 10452 Rolson Music & Sound 08/19/2022 500.00 Movie in the Park Sound System 9/16/22 123359 14190 Santa Ynez Valley Elite Event Party Rentals 08/19/2022 1,889.64 Clam Festival Rentals 50% Deposit 123360 11648 Patience Santos 08/19/2022 500.00 Instructor: Tennis Camp 8/8/22 - 8/11/22 #10930 123361 13994 SBRK Finance Holdings, Inc. 08/19/2022 556.00 CivicPay IVR Transaction Fees July 2022 123362 11208 SEIU Local 620 AFL/CIO 08/19/2022 896.09 SEIU Dues PD 08/19/22 123363 UB*00930 HECTOR ESCALANTE SHIANNE MCLEAN (T) 08/19/2022 109.48 Refund Check 018058-000, 235 CUYAMA 123364 UB*00923 LARRY SILVA 08/19/2022 164.38 Refund Check 017640-001, 355 MORRO 123365 14099 Jeffrey Smith 08/19/2022 217.00 M&IE: League of Cities Conference- 9/6-9/9/22 123366 11722 SP Maintenance Services Inc 08/19/2022 4,413.75 Parking Lot & Street Sweeping Services July 2022 123367 12031 Stanley Convergent Security Solutions 08/19/2022 317.80 Alarm Services 123368 12290 State Of California- EDD 08/19/2022 3,913.00 Unemployment Insurance 2nd Qtr 2022 123369 10014 United States Postal Service 08/19/2022 275.00 Annual Renewal Fee for Permit 22000 (Admin.) 123370 12622 USA Bluebook Acct: 82507 08/19/2022 709.42 Lab Supplies 123371 UB*00928 MIKE VARGA 08/19/2022 100.52 Refund Check 014023-003, 185 FOOTHILL 123372 14034 Vital Records Holdings, LLC 08/19/2022 119.95 Document Storage Aug 2022 123373 12527 Water Systems Consulting Inc 08/19/2022 27,636.25 CWSRF Funding Initiatives June/July 2022 123374 12132 White Flag Pest Control Inc 08/19/2022 431.00 Pest Control Services 123375 12614 Winema Industrial & Safety Supply 08/19/2022 791.96 Safety Supplies 123376 UB*00929 JEFFREY ZAMBO (T) 08/19/2022 92.83 Refund Check 018220-000, 344 CASTAIC Total 411,369.41
City of Pismo Beach
Final Disbursement List Check Date 08/19/2022
Description

9.B-2Council Agenda 9-20-2022
Attachment 1
Packet Page 11

PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.C
SUBJECT/TITLE:

DEPARTMENT ACTIVITY REPORTS FOR AUGUST 2022
RECOMMENDATION:

Receive reports as information only.

BACKGROUND:

The attached monthly department activity reports are for Council’s information.

FISCAL IMPACT:

Not applicable.

ALTERNATIVES:

1.Request additional information from staff.

ATTACHMENTS:

1.Administrative Services Department (Feeser)

2.City Manager's Office (Lewis)

3.Community Development Department (Downing)

4.Fire Department (Lee)

5.Management Services Department (Garcia)

6.Police Department (Smith)

7.Public Works and Engineering (Fine)

8.Tourism and Events Department (Jackson)
Prepared by: Respective departments. Meeting Date: September 20, 2022 City Manager Approval:

9.C-1Council Agenda 9-20-2022
Packet Page 12

City of Pismo Beach - Administrative Services Department Monthly Report – August 2022

KEY REVENUES
Transient Occupancy Tax (TOT)
As of January 1, 2021, TOT revenues are 11% of gross lodging revenues. These revenues reflect approximately 54% of the City’s General Fund budgeted revenues. Preliminary data for July rentals indicate that July 2022 TOT revenues are $2,289,145 which is below the year ago July 2021 TOT revenues of $2,353,830 by $64,685, or -2.75%. This is a preliminary amount as not all properties have reported. The following chart illustrates TOT revenues received in FY 2022 and FY 2023 by month.

Sales Tax Revenues
Sales tax revenues represent 1% of taxable sales received by the City. Fiscal Year 2022 sales tax revenues collected through August 2022 amount to $3,964,222, which is above the year-ago total of $3,561,325 by $402,897 or 11.31% for the same reporting period. Sales tax revenues are typically received 3 months after the month for which it was collected. The following chart illustrates sales tax revenues received in FY 2021 and FY 2022 by the month in which the sales tax was collected.

Attachment 1

9.C-2Council Agenda 9-20-2022
Packet Page 13

ECONOMIC INDICATOR

Consumer Price Index (CPI): For the Los Angeles/Riverside/Orange County area, the percent change in the CPI for the twelve months ending in July 2022 was 7.74%.

OPERATIONS

Finance

Financial Reporting
• Comprehensive User Fee Study and Cost Allocation Plan: Finance Staff reviewed the RFP’s submitted for the User Fee Study and Cost Allocation Plan and a committee made up of members from Administrative Services, Police, Tourism & Events, and Public Works met to discuss the proposals. The committee selected a vendor and staff had a kickoff meeting for the project.

Budget
• Budget Adjustments: Finance Staff updated the budget figures in Springbrook to reflect the Mid-Cycle Budget adjustments approved by City Council on August 16th.

Business Licenses
• Renewals: Approximately 1,400 Business License renewal emails were sent to all businesses in Pismo Beach as the Business License year runs from October 1st to September 30th.

Renewals for both can be done through our online portal and via paper by mailing in or dropping off the renewal form at City Hall.

Attachment 1

9.C-3Council Agenda 9-20-2022
Packet Page 14

Projects
• Central Coast Blue Prop 1 Funding: Staff received the exciting news that the US Bureau of Reclamation indicated that we were awarded our full grant request of $14.1M for Title 16! Title 16 covers 25% of costs, meaning the City will be able to request more funds in the future to cover project cost increases.
• Central Coast Blue: Staff continue to work on the Joint Powers Authority Agreement for Central Coast Blue. The JPA will serve as the entity for issuing debt for the Central Coast Blue project and the Agreement outlines the governance structure and related financial aspects typically addressed in bond documents.
o Staff continue to work with Arroyo Grande and Grover Beach to provide information regarding the JPA agreement. Both cities anticipate seeking their respective Council approvals of the agreement after the Joint meeting on September 14th. o Finance staff worked on the JPA agreement to include the financial and financing aspects of the agreement in preparation for a WIFIA loan. Staff presented the information to the Central Coast Blue Management Team for review. • Electronic Parking Citations: The Finance Manager worked with the Parking Supervisor and IPS, the City’s parking kiosk and meter vendor, regarding the financial transition to IPS’s electronic parking citation software

Technology

Safety & Security
• Public Safety Radio: IT installed the new antenna infrastructure at Hillcrest, Bello, and Cave Landing/Ontario Ridge which is part of the Public Safety radio project. • Chapman Estate: IT installed two security cameras at the Chapman Estate. Two more will be installed once electrical work is completed.
• CAD-to-CAD System: IT met with IT representatives from SLO County, City of Paso Robles, City of Grover Beach, City of San Luis Obispo, and City of Atascadero to discuss the strategy for the County’s CAD-to-CAD system to allow all public safety agencies in the county to communicate with each other.

Infrastructure
• Radio Communications: IT met with CalFire and County Radio representatives to discuss how we might partner to provide CalFire with improved radio communications. • Parking E-Citations: IT assisted Parking with kicking off the parking e-citation project. This will allow parking tickets to be sent to the payment processing system in real time, thus allowing people to pay electronically immediately.
• City Hall Wifi: IT installed new network drops at City Hall to improve wireless coverage. • Police Department: IT fixed network drops at the Police Department to improve IT’s ability to remotely support their equipment.
• Police Radio Upgrade: The City’s vendor has received the equipment for the Police Radio Upgrade project. Global supply chain issues caused delays as the City’s backend radio components are manufactured in New Zealand.

Attachment 1

9.C-4Council Agenda 9-20-2022
Packet Page 15

• Fire Department - Lifeguard Division: IT installed a new computer for the lifeguards at Fire Station 64.
• Fire Department Move: IT assisted Fire Station 64 in moving equipment from the dorms in the trailer to the leased property at 900 Bello Street. • Paperless Records: IT assisted Community Development with uploading 501 permanent records to Laserfiche. Digitization makes the records more accessible to staff while decreasing the number of paper records stored.

Planning
• IT Strategic Plan: The Technology Steering Committee worked with ClientFirst to plan and prioritize the various Departmental-driven technology initiatives for the next five years. ClientFirst also reviewed all the IT infrastructure projects with the Committee and the Committee agreed that all the IT infrastructure projects are necessary and should be included in the 5-Year plan.

Attachment 1

9.C-5Council Agenda 9-20-2022
Packet Page 16

Accounts Payable August July June
Invoices Entered / Checks Issued:671/244 786/321 784/370 New purchase orders issued:22 30 15
New contract purchase orders issued:10 9 7
Change Orders / Amended PO's issued:7 6 5
Total dollar amount of all PO's issued:2,894,219$ 1,418,457$ 685,810$ Total Invoices paid:3,499,674$ 9,255,001$ 2,390,353$ Total No. of Voids processed: 4 0 4
Total Dollar amount of Voids:1,884$ -$ 1,543$ Business License Certificates
Renewed Licenses issued / New Licenses 183/26 1/22 1/31 Payroll
New employees entered / Terminations:1 / 0 1 / 0 0 / 1 Auto. Payroll Deposits / Checks Issued:129 / 7 128 / 10 130 / 12 Total gross salary:393,172$ 409,953$ 392,636$ Total net salary:258,052$ 269,354$ 263,002$ Employee file maint. / Retro-pay calcs:24 / 9 17 / 0 21 / 7 Utility Billing
Downtown: Routine Utility Bills:2811 0 2807
Delinquent Utility Bills:0 209 0
Shell Beach: Routine Utility Bills:0 2,139 0
Delinquent Utility Bills: 140 0 137
Cash receipts:953,565$ 897,537$ 946,093$ Customer accts paid/ACH Direct/Online Bills:2526/257/605 2563/336/673 2502/265/592 48 Hour Notices / Water Lock-Outs:0/0 0/0 0/0
Meter Sets / Meter Change Outs / Demos:3/8/0 4/6/0 2/11/0 Change Orders / Closing Bills:50/33 68/45 53/39
Billing Adjustments / Deposits:12/46 17/30 11/59
Delinquent Closed Invoices / Write-Offs:0/0 0/0 0/0
Administrative Services Department
Statistical Activity Report - August 2022
Attachment 1

9.C-6Council Agenda 9-20-2022
Packet Page 17

CITY MANAGER’S OFFICE ACTIVITY REPORT AUGUST 2022

 Met with Council Members to discuss various topics of interest.  Met with Department Heads to discuss various topics of interest.  Attended South County Chamber of Commerce Pismo Beach Business Meeting  Participated in 2022 FEMA Diablo Canyon Power Plant Emergency Drill  Participated in the Central Coast Blue Management Team Meeting  Attended SLO County City Managers Meeting
 Toured Daycare Facility that received funding from the City  Attended New Police Officer Swearing-in Ceremony
 Participated in South County Chambers of Commerce Luncheon  Attended monthly Pismo Beach CVB Board Meeting
 Attended monthly meeting with Pismo Beach Chamber of Commerce leadership  Participated in Coastal Cities Group Leadership Committee Meeting  Met with Visit SLO CAL President and CEO
 Participated in IT Strategic Plan Prioritization Workshop  Attended the South County Chambers of Commerce Mixer
 Attended South County Chambers of Commerce Governmental Affairs Committee Meeting Attachment 2

9.C-7Council Agenda 9-20-2022
Packet Page 18

August 2022 CDD Monthly Report 1

PISMO BEACH COMMUNITY DEVELOPMENT DEPARTMENT
MONTHLY REPORT FOR AUGUST 2022
BUILDING DIVISION٠CODE COMPLIANCE٠PLANNING DIVISION

BUILDING DIVISION

ISSUED PERMITS SUMMARY
Date Permit
Number
Address Description Valuation Total Fees
08/03/2022 B22-000267 124 Hermosa
Drive
Solar PV -
Residential
$ 26,000.00 $ 430.37
08/03/2022 B22-000269 971 Bakersfield
Street
Solar PV -
Residential
$ 5,320.00 $ 415.37
08/03/2022 R22-000034 851 Delano
Street
Revision $ - $ 89.89
08/03/2022 R22-000041 169 El Viento Revision $ - $ 89.89 08/05/2022 B22-000235 147 Stimson
Street
Plumbing,
Mechanical
& Electrical
$ - $ 170.16
08/05/2022 B22-000316 232 Capistrano
Avenue
Plumbing,
Mechanical
& Electrical
$ - $ 221.79
08/08/2022 R22-000053 1337 Costa
Brava
Revision $ 10,260.00 $ 208.24
08/09/2022 B22-000346 227 Morro
Avenue
Re-roof
Residential
$ 6,500.00 $ 99.67
08/10/2022 R21-000067 170 South
Silver Shoals
Revision $ - $ 89.89
08/12/2022 B22-000350 351 Main
Street
Plumbing,
Mechanical
& Electrical
$ - $ 172.11
08/12/2022 B22-000304 1481 Price
Street
Commercial
Alteration
$ 400.00 $ 149.28
08/16/2022 B22-000258 210 Surf Street Solar PV -
Residential
$ 5,320.00 $ 445.98
Attachment 3

9.C-8Council Agenda 9-20-2022
Packet Page 19

August 2022 CDD Monthly Report 2
Date Permit
Number
Address Description Valuation Total Fees
08/16/2022 B22-000273 428 Indio Drive Plumbing,
Mechanical
& Electrical
$ - $ 419.69
08/16/2022 R22-000049 128 La Colima Revision $ - $ 97.47 08/16/2022 R22-000051 147 Baker
Avenue
Revision $ - $ 97.47
08/16/2022 B22-000167 120 Searidge
Court
Single Family
Residence
$ 518,461.16 $ 70,150.06
08/16/2022 B22-000277 90 Bluff Drive Residential
Alteration
$ 50,000.00 $ 3,285.12
08/18/2022 B22-000302 214 Santos
Way
Solar PV -
Residential
$ 14,000.00 $ 445.98
08/18/2022 B22-000337 116 Valley
View Drive
Solar PV -
Residential
$ 11,949.00 $ 642.58
08/18/2022 B22-000357 791 Stratford
Street
Plumbing,
Mechanical
& Electrical
$ - $ 191.65
08/18/2022 R21-000052 170 South
Silver Shoals
Revision $ - $ 89.89
08/18/2022 B22-000335 262 Cuyama
Avenue
Re-roof
Residential
$ 22,880.00 $ 314.79
08/19/2022 R22-000022 250 Santa Fe
Avenue
Revision $ - $ 89.89
08/19/2022 R22-000056 350 Main
Street
Revision $ - $ 97.47
08/19/2022 B22-000046 841 Merced
Street
Solar PV -
Residential
$ 10,950.00 $ 415.37
08/19/2022 B21-000308 841 Merced
Street
Single Family
Residence
$ 519,388.20 $ 66,187.34
Attachment 3

9.C-9Council Agenda 9-20-2022
Packet Page 20

August 2022 CDD Monthly Report 3
Date Permit
Number
Address Description Valuation Total Fees
08/19/2022 B21-000508 115 Capistrano
Avenue
Residential
Alteration
$ 180,000.00 $ 7,771.09
08/19/2022 B22-000341 119 Marian
Way
Residential
Alteration
$ 2,424.00 $ 347.99
08/22/2022 B22-000362 120 Searidge
Court
Plumbing,
Mechanical
& Electrical
$ - $ 139.14
08/22/2022 B21-000335 1301 Costa Del
Sol
Residential
Alteration
$ 48,550.00 $ 2,818.75
08/23/2022 B22-000295 760 Bello
Street
Plumbing,
Mechanical
& Electrical
$ - $ 773.11
08/23/2022 B22-000359 1337 Costa
Brava
Residential
Alteration
$ 10,000.00 $ 387.31
08/23/2022 B22-000352 147 Stimson
Street
Commercial
Alteration
$ 20,000.00 $ 1,336.12
08/24/2022 B22-000369 475 Hollister
Avenue
Plumbing,
Mechanical
& Electrical
$ - $ 182.74
08/24/2022 R22-000054 166 Seaview
Avenue
Revision $ - $ 97.47
08/24/2022 R22-000058 206
Beachcomber
Drive
Revision $ - $ 97.47
08/25/2022 B22-000351 135 Terrace
Lane
Fire
Sprinklers -
Residential
$ 7,000.00 $ 604.09
08/25/2022 B22-000371 500 Baxter Plumbing,
Mechanical
& Electrical
$ - $ 127.64
08/25/2022 B21-000532 135 Terrace
Lane
Solar PV -
Residential
$ 28,500.00 $ 416.37
08/25/2022 B21-000380 135 Terrace
Lane
Single Family
Residence
$ 540,669.96 $ 67,215.39
Attachment 3

9.C-10Council Agenda 9-20-2022
Packet Page 21

August 2022 CDD Monthly Report 4
Date Permit
Number
Address Description Valuation Total Fees
08/25/2022 B22-000367 214 Capistrano
Avenue
Residential
Alteration
$ 3,000.00 $ 379.88
08/26/2022 B22-000334 860 Fresno
Street
Solar PV -
Residential
$ 23,779.55 $ 459.98
08/26/2022 B22-000355 184 Wave
Avenue
Solar PV -
Residential
$ 6,080.00 $ 445.98
08/31/2022 R22-000059 107 Valley
View Drive
Revision $ - $ 97.47
08/31/2022 R22-000060 716 Vista
Pacifica Circle
Revision $ - $ 97.47
08/31/2022 R22-000061 971 Bakersfield
Street
Revision $ - $ 97.47
08/31/2022 R22-000057 751 Fresno
Street
Revision $ - $ 97.47
08/31/2022 B22-000380 126 Cuyama
Avenue
Re-roof
Residential
$ 12,000.00 $ 100.38
Total 48 $ 2,083,431.87 $ 229,198.19

NEW APPLICATIONS SUMMARY
Date Permit
Number
Address Description Valuation
08/01/2022 R22-000051 147 Baker Avenue Residential $ - 08/01/2022 B22-000339 144 Peyton Court Solar PV -
Residential
$ 7,000.00
08/01/2022 B22-000340 2655 Shell Beach
Road
Solar PV -
Residential
$ 32,000.00
Attachment 3

9.C-11Council Agenda 9-20-2022
Packet Page 22

August 2022 CDD Monthly Report 5
Date Permit
Number
Address Description Valuation
08/01/2022 B22-000302 214 Santos Way Solar PV -
Residential
$ 14,000.00
08/02/2022 B22-000341 119 Marian Way Residential
Alteration
$ 2,424.00
08/04/2022 B22-000316 232 Capistrano
Avenue
Plumbing,
Mechanical &
Electrical
$ -
08/04/2022 B22-000310 144 Peyton Court Single Family
Residence
$ 496,685.48
08/05/2022 B22-000342 791 Stratford Street Solar PV -
Residential
$ 12,014.00
08/05/2022 B22-000337 116 Valley View
Drive
Solar PV -
Residential
$ 11,949.00
08/08/2022 R22-000053 1337 Costa Brava Residential $ 10,260.00 08/08/2022 R22-000054 166 Seaview Avenue Residential $ - 08/09/2022 B22-000293 0 Peyton Court Plumbing,
Mechanical &
Electrical
$ -
08/09/2022 B22-000344 122 Narlene Way Residential
Addition
$ 550,000.00
08/09/2022 B22-000346 227 Morro Avenue Re-roof Residential $ 6,500.00 08/10/2022 B22-000335 262 Cuyama Avenue Re-roof Residential $ 22,880.00 08/11/2022 R22-000056 350 Main Street Residential $ - Attachment 3

9.C-12Council Agenda 9-20-2022
Packet Page 23

August 2022 CDD Monthly Report 6
Date Permit
Number
Address Description Valuation
08/11/2022 B22-000350 351 Main Street Plumbing,
Mechanical &
Electrical
$ -
08/12/2022 B22-000351 135 Terrace Lane Fire Sprinklers - Residential
$ 7,000.00
08/15/2022 B22-000355 184 Wave Avenue Solar PV -
Residential
$ 6,080.00
08/15/2022 B22-000321 57 La Gaviota Solar PV -
Residential
$ -
08/15/2022 B22-000354 2295 Shell Beach
Road
Solar PV -
Residential
$ 60,589.00
08/16/2022 B22-000343 2757 Shell Beach
Road
Plumbing,
Mechanical &
Electrical
$ -
08/16/2022 B22-000352 147 Stimson Street Commercial
Alteration
$ 20,000.00
08/17/2022 B22-000349 1210 Longview
Avenue
Residential
Alteration
$ 8,000.00
08/18/2022 B22-000356 66 Bluff Drive Plumbing,
Mechanical &
Electrical
$ -
08/18/2022 B22-000347 409 Indio Drive Solar PV -
Residential
$ 44,214.00
08/18/2022 B22-000357 791 Stratford Street Plumbing,
Mechanical &
Electrical
$ -
08/19/2022 B22-000194 123 La Colima Retaining Wall $ 20,000.00 08/19/2022 B22-000353 915 Terry Drive Solar PV -
Residential
$ 6,080.00
Attachment 3

9.C-13Council Agenda 9-20-2022
Packet Page 24

August 2022 CDD Monthly Report 7
Date Permit
Number
Address Description Valuation
08/19/2022 B22-000362 120 Searidge Court Plumbing,
Mechanical &
Electrical
$ -
08/19/2022 B22-000360 750 Price Street Commercial
Alteration
$ 500.00
08/22/2022 B22-000364 306 Pier Avenue Fire Sprinklers - Residential
$ 3,900.00
08/22/2022 R22-000058 206 Beachcomber
Drive
Residential $ -
08/22/2022 R22-000057 751 Fresno Street Residential $ - 08/22/2022 B22-000366 694 Vista Pacifica
Circle
Solar PV -
Residential
$ 10,792.00
08/22/2022 B22-000365 950 Tulare Avenue Solar PV -
Residential
$ 6,000.00
08/22/2022 B22-000358 147 Stimson Street Sign - Illuminated $ 10,000.00 08/22/2022 B22-000361 306 Pier Avenue Attached Single
Family
$ 589,402.12
08/22/2022 B22-000363 306 Pier Avenue Demolish Single
Family
$ 15,000.00
08/23/2022 B22-000348 2555 Price Street Seawall $ 1,200,000.00 08/23/2022 B22-000359 1337 Costa Brava Residential
Alteration
$ 10,000.00
08/24/2022 B22-000369 475 Hollister Avenue Plumbing,
Mechanical &
Electrical
$ -
Attachment 3

9.C-14Council Agenda 9-20-2022
Packet Page 25

August 2022 CDD Monthly Report 8
Date Permit
Number
Address Description Valuation
08/24/2022 B22-000367 214 Capistrano
Avenue
Residential
Alteration
$ 3,000.00
08/24/2022 B22-000368 861 Stratford Street Residential
Alteration
$ 50,000.00
08/25/2022 B22-000371 500 Baxter Lane Plumbing,
Mechanical &
Electrical
$ -
08/26/2022 R22-000059 107 Valley View
Drive
Residential $ -
08/26/2022 B22-000373 230 Miramar Lane Plumbing,
Mechanical &
Electrical
$ -
08/29/2022 R22-000060 716 Vista Pacifica
Circle
Residential $ -
08/29/2022 R22-000061 971 Bakersfield
Street
Residential $ -
08/29/2022 B22-000376 81 La Gaviota Solar PV -
Residential
$ 76,285.00
08/30/2022 R22-000062 120 Searidge Avenue Residential $ - 08/30/2022 B22-000379 214 Boeker Avenue Plumbing,
Mechanical &
Electrical
$ -
08/30/2022 B22-000377 237 Ridge Road Re-roof Residential $ 12,200.00 08/31/2022 R21-000015 1081 Longview
Avenue
Residential $ -
08/31/2022 B22-000382 412 Westpoint Drive Plumbing,
Mechanical &
Electrical
$ -
Attachment 3

9.C-15Council Agenda 9-20-2022
Packet Page 26

August 2022 CDD Monthly Report 9
Date Permit
Number
Address Description Valuation
08/31/2022 B22-000383 714 White Oak
Boulevard
Plumbing,
Mechanical &
Electrical
$ -
08/31/2022 B22-000374 591 Five Cities Drive Commercial
Alteration
$ 150,000.00
08/31/2022 B22-000380 126 Cuyama Avenue Re-roof Residential $ 12,000.00 Total 58 $ 3,486,754.60

SPECIAL PROGRAMS AND PROJECTS:
• Development Review Team Meeting was held weekly, and the pending review report was reviewed to ensure timely return on plan reviews among all divisions in the development process. • Staff attended a tabletop EOC training for Diablo Canyon. • Comments were received for the 105 room Branch Street Marriott project. • Staff attended the Public Safety Facility meeting.

INSPECTIONS PERFORMED: 210

PLAN REVIEWS:
• Building: 65
• Planning: 21
• Engineering: 1

CODE COMPLIANCE

CASE SUMMARY:
• Cases Closed: 10
• Cases Opened: 10
• Site Visits: 33
• Notice of Violation / Citation: 12

Attachment 3

9.C-16Council Agenda 9-20-2022
Packet Page 27

August 2022 CDD Monthly Report 10

PLANNING DIVISION

CITY COUNCIL AND ADVISORY BOARD MEETINGS:
• City Council: Staff attended the August 2, 2022, and August 16, 2022, regular meetings. Staff also prepared reports for the September 6, 2022, regular meeting. • Planning Commission: Staff attended the August 23, 2022, regular meeting, and prepared reports for the September 13, 2022, regular meeting.
• Joint City Council/Planning Commission: Staff prepared for and attended the August 25, 2022, Special Joint GP/LCP Study Session to discuss and receive direction on the Land Use Element. • Parking Advisory Committee: Staff prepared for and attended the August 24, 2022, special meeting with the PAC to kick-off the Parking Management Plan update.

Attachment 3

9.C-17Council Agenda 9-20-2022
Packet Page 28

August 2022 CDD Monthly Report 11
NEW APPLICATIONS SUMMARY:

Project Number Date Received Address Description
P22-000090 08/02/2022 601 Cypress
Remodel and glass railing
addition - Inn at the Pier
P22-000084 08/03/2022 111 Coral New sunroom on existing deck P22-000092 08/03/2022 250 Santa Fe
Addition of covered patio on
exterior of home.

H22-000011 08/03/2022 380 Harloe Apt. 3 Counseling and Life Coaching P22-000093 08/04/2022 108 Holly
Remove old deck and handicap
ramp and replace with smaller
deck (see B22-000092).

P22-000091 08/04/2022 951 SHAFFER Lane Deck addition to an existing SFR P22-000030 08/08/2022 860 Wadsworth
Coastal single-family residence,
interior remodel, and exterior
improvements
P22-000094 08/10/2022 103 El Portal
Remodel and roof deck addition
with new staircase over garage.
(reference P20-000072 & B21-
000537).

P22-000097 08/10/2022 750 Mattie Time Extension for P20-000001 P22-000098 08/10/2022 100 North Oak Park Boulevard
Conceptual Review for an
express car wash building
P22-000095 08/11/2022 800 Merced Street
Deck replacement and
expansion in the front and rear
of (e) sfr.

H22-000012 08/12/2022 2509 Solano Road
Concierge services for the
elderly
P22-000099 08/15/2022 691 Lemoore Street Deck addition to SFR P22-000096 08/15/2022 303 Morro Avenue
Existing ADU located above (e)
garage.

P22-000102 08/17/2022 0 Ventana Street
Two new Racquetball Courts and
Tennis Courts on Ventana
P22-000103 08/19/2022 238 EL PORTAL Drive
Construction of a new SFR and
demolish existing
P22-000104 08/22/2022 893 Oak Park Boulevard
New Sign - PCH Shave Ice &
Boba
P22-000101 08/26/2022 257 Placentia
2nd story addition to an existing
sfr.

P22-000100 08/29/2022 2241 Price Street
140sq.ft. addition to an existing
commercial structure (service
bar addition to two single
occupant restrooms)

Attachment 3

9.C-18Council Agenda 9-20-2022
Packet Page 29

August 2022 CDD Monthly Report 12
PROJECT ADMINISTRATION:
• Administrative Reviews: 42
• Discretionary Reviews: 42
• Plan Checks: 45
• Site Inspections: 22

SPECIAL PROJECTS UPDATE/OTHER:
• Public Safety Facility: Staff attended a Public Safety Facility Meeting. • Technology Steering Committee: Staff attended the IT Strategic Plan Prioritization Workshop. • Price Historic Park: Staff held a team meeting to discuss the Price Historic Park. • Coastal Cities Group Leadership Committee: Staff attended the monthly meeting. • Council Candidate Forum: Staff attended the Council Candidate Forum and presented an overview of the Community Development Department.
• Ventana Grill: Staff met with the property owner to discuss removal of the stairway spire and other work in the vicinity.
• Shell Beach Senior Affordable Housing: Staff participated in a meeting to discuss the project. • Coastal Commission Reception: Staff has supported the coordination of the Coastal Commission reception on September 8, 2022.
• Planning Intern: Staff conducted interviews for the Planning Division intern position. • Sea Level Rise Working Group: Staff attended the Coastal Cities Group Sea Level Rise Working Group meeting.
• Development Review Team: Staff attended the weekly development review team meeting. • Community Development Records Digitization Project: Staff is preparing to quality check the first set of scanned documents and continues to make progress on reviewing and organizing files to complete the records digitization project. Staff met to continue discussions regarding the digitization of development records.
• South County Director’s Lunch: Staff attended a meeting with the Community Development Directors of Grover Beach and Arroyo Grande.
0%
10%
20%
30%
40%
50%
60%
Week 1 Week 2 Week 3 Week 4

ACTIVE PROJECT REVIEWS
Administrative Discretionary
Attachment 3

9.C-19Council Agenda 9-20-2022
Packet Page 30

August 2022 CDD Monthly Report 13
• Coastal Cities Group: Staff attended a Coastal Cities Group subgroup meeting. • Management Training Academy: Staff attended the monthly Management Training Academy presentation by the Administrative Services Department. • Diablo Canyon Power Plant Tabletop Exercise: Staff attended the DCPP tabletop exercise, facilitated by the County of San Luis Obispo and California Office of Emergency Services. • Development Projects: Staff met with several property owners regarding development potential on their lots in the City.
• Community Development Department: Staff attended the monthly Department staff meeting.

Attachment 3

9.C-20Council Agenda 9-20-2022
Packet Page 31

John Owens, Acting Unit Chief

Prepared by: Michelle Pearson, Administrative Assistant Submitted by: Paul Lee, Battalion Chief

Fire Prevention
• 70-Plan reviews (Building/Planning)
• 1-Plan review-Hotel project
• 1-Hotel follow up inspection
• 11-Site visits
• 6-Rough/hydro inspections-residential system
• 1-rough/hydro-commercial system
• 2-Fire alarm inspections
• 4-Fire Final
• 4-Emergency response
• 1-Knox box inspection
• 1-Fire line inspection, pressure and flush
• 2-Special Event
• 1-School site inspection-access
• Special Event Committee meeting
• Weed Abatement inspection/concerns
• CAL FIRE Toro Crew VMP-Chumash Park, City property in the Heights

Administration/Vegetation Management
• Week of August 1st- a fire broke out on the roof of the Outlet Center on Five Cities Dr. $18,000 in damage to the roof and $10,000 damage to clothing in the retail store occurred. It appears an extension cord on the roof was being used as permanent wiring to a photo cell. Extension cords are not designed to hold currents 24/7 365 days of year.
• Fire CAL FIRE Toro Crews continue to work in the City. Captain Byrnes is focusing on Chumash Park where homes along the perimeter will be better protected. Crews will also work in the City where there are areas of concerns on August 2022 Activity Report
Attachment 4

9.C-21Council Agenda 9-20-2022
Packet Page 32

easements. CAL FIRE Toro Crews are staffed with CAL FIRE Fire Captains and CCC members.
• Week of August 15th-CAL FIRE Cuesta Crews are working on a shaded fuel break and 4x4 Engine access road continues behind City Hall. This work will allow for Fire Engines to get to the ridge top much faster. The shaded fuel break will provide a great firing opportunity and target for Fire Fighting Aircraft. This is a Fire Safe Council grant funded project.

Lifeguards/Junior Lifeguard Program
• Record temperatures are bringing crowds of beach visitors to Pismo Beach and our Lifeguards continue to educate the Public, helping to prevent major water incidents.
• Stats for the season so far
Public Contact-7733
Ordinances-1848
Preventatives-291
Medicals-168
Missing Person-32
Water Rescues-16
Wildlife-21

• A wonderful conclusion to the Junior Lifeguard program occurred 08/05/22. We had 140 students and parents attend a hamburger dinner, awards ceremony, and short movie night at the Vets Hall. It was a great addition to our program this year. Fun was had by all.

Attachment 4

9.C-22Council Agenda 9-20-2022
Packet Page 33

August 2022 Stats

Number of Calls % Type of Incident
0 0.00%Debris
99 80.49%Emergency Medical
4 3.25%Fire Alarms
0 0.00%Fire Menace Standby
0 0.00% Flooding
0 0.00%Gas Leak
2 1.63%Other
9 7.32%Public Service Assistance
0 0.00%Smoke Check
1 0.81%Structure Fire
8 6.50%Traffic Collision
0 0.00%Vehicle Fire
0 0.00%Wildfire
123 100.00%
Incidents by City Response Area
Medicals Other % Descriptive Area
9 3 9.76% Palisades A
5 6 8.94% Spyglass B
6 3 7.32%Shell Beach Village C
0 1 0.81%Mattie Rd D
8 0 6.50%Shorecliff E
23 6 23.58% Downtown F
11 2 10.57% Heights G
12 4 13.01%Ventana H
13 0 10.57%Trailer Parks I
11 2 10.57%Five Cities Dr J
1 2 2.44%James Way K
Total 123 100.00%
Attachment 4

9.C-23Council Agenda 9-20-2022
Packet Page 34

MANAGEMENT SERVICES DEPARTMENT

MONTHLY ACTIVITY REPORT

August 2022

MANAGEMENT SERVICES DEPARTMENT

CITY CLERK

ADVISORY BODIES
• Conducted Oath of Office for two Parking Advisory Committee Members appointed in 2022 • Clerked August 23, 2022 Planning Commission meeting

ELECTIONS & POLITICAL REFORM
• Received and filed remaining Semi-Annual Campaign Statements for the period of January 1, 2022 through June 30, 2022.
• Held a Candidate Information Meeting for all confirmed candidates for the November 8, 2022 election.
• The deadline for candidate nominations for the office of City Council Member in the November 8, 2022 election were extended from August 12, 2022, to August 17, 2022, due to an eligible incumbent not filing. Nominations closed on August 17 with five eligible candidates for two seats.

RECORDS MANAGEMENT
• Ongoing review of numerous records requests.
• Ongoing coordination with the City’s claims handlers and counsel to provide relevant records. • Completed and verified interrogatories and discovery in one litigation matter. • Ongoing litigation production in one matter.
• Met with Police Department staff to discuss records retention.

CPRA REQUESTS COMPLETED
• Martinez, Officer Francis Investigation and Discipline • Nana, Code Violations and Damaged Homes
• Dow, Souza Records
• Lee, Beach House Inn CUP
• Gillette, 2018 Proposals for Auditing Services
• Kyle, 140 Seacliff Building Permit
• Menghrajani, Meghrajani Police and Medical Contact
• Werner, 2021 Compensation Report
• Booth, 1508 Costa Brava Plans
• Crisosto, 1558 Costa Brava Plans
• Lyon, 100 Oceanview C of O

SUBPOENAS (NON-PARTY) RECEIVED
• Doe v. Dolphin Bay, Deposition Subpoena for Production of Business Records

Attachment 5

9.C-24Council Agenda 9-20-2022
Packet Page 35

HUMAN RESOURCES
• Recruitment:
o Parking Enforcement
o Public Safety Dispatcher
o Planning Intern
o Information Technology Technician
o Police Corporal
o Administrative Secretary
o Code Enforcement Officer
o PR Recreation Coordinator

• Interviews:
o Parking Enforcement Technician – 7/28/22
o Public Safety Dispatcher – 8/3/22
o Maintenance Worker I – TBD
o Planning Intern
o Police Corporal
o Parking – 9/8/22
o IT Tech – 9/8/22

• Backgrounds:
o PT Recreation Coordinator
o Wastewater Operator
o VIC Hosts
o Cablecast Operator
o Parking Enforcement Technician
o Police Officer Lateral
o Public Safety Dispatchers (2)
o Police Corporal

• Offers:
o Administrative Secretary – PW
o Cablecast Operator
o Crime Analyst
o Police Officer Lateral
o Wastewater Operator
o VIC Hosts

• New Employee Orientation
o IT Intern
o Cablecast Operator
o Police Officer
o Crime Analyst
o VIC Hosts

Attachment 5

9.C-25Council Agenda 9-20-2022
Packet Page 36

TRAINING AND STAFF DEVELOPMENT
• This week, the city held its 5th session of the Managers and Supervisors Training Academy. This weeks’ session was presented by the Administrative Services Department on the function and role the Finance Department and its’ staff, the purchasing policy, budget, and Information Technology.

PUBLIC OUTREACH / PUBLIC INFORMATION
• New Postings:
o Siren Testing on Saturday, August 27
o Movie in the Park - Luca September 16

RISK MANAGEMENT

LIABILITY CLAIMS RECEIVED
• Universal Precast Concrete Inc., Slide Claim

OTHER
• Public Works and Cal Fire staff met at 900 Bello to begin preparation for the relocation of living space for the firefighters at Station 64. The upgrades to the home include adding lighting to the exterior for safety, changing door locks, and preparation for the alert system. Our lease begins on August 1, 2022, but we anticipate the move in data to be closer to September 1, 2022, to account for the transfer of system, furniture, and other related systems. • Bello Vets’ Hall Insurance Claim - The City submitted a claim for the gas leaks at the Bello Vets Hall. Unfortunately, the line itself is not covered, only the opening and closing of walls to make the necessary repairs/replacement. Given our deductible, it will most likely result in no claim being finalized, however Public Works is moving forward with the replacement of the line. • Public Safety Facility Committee Meeting - The biweekly meeting occurred this week and the architecture team is making good progress on the direction from the City Council following the July 7, 2022 Special Meeting.
• Received one proposal for the Council Chamber Automated production Equipment RFP.

Attachment 5

9.C-26Council Agenda 9-20-2022
Packet Page 37

Pismo Beach Police Department
1000 Bello Street, Pismo Beach, CA 93449
(805) 773-2208
www.pismobeach.org/police
Monthly Activity & Crime Statistics Report
August 2022
Date Posted_________
Submitted: 9/7/2022
Attachment 6

9.C-27Council Agenda 9-20-2022
Packet Page 38

PISMO BEACH POLICE DEPARTMENT
AUGUST 2022

MONTHLY ACTIVITY AND CRIME STATISTICS

Table of Contents

Activity Report
Office of the Chief…………………………………………………………………….… 1
Training Report…………………………………………………………………………. 1
Volunteers Summary…………………………………….…………………………….. 1
Overtime & Salary………………………………………………………………………. 2

Investigations Statistics
Routine Investigations………………………………………………………………….. 3
Investigation Management…………………………………………………………….. 3
Property & Evidence……………………………………………………………………. 3
Compliance & Permits………………………………………………………………….. 3
Special Operations……………………………………………………………………… 4

Crime Statistics
Workload Trends & Crime Statistics………………………………………………….. 5 Arrests, Citations, & Traffic Activity…………………………………………………… 6 Heatmap & Activity Analysis…………………………………………………………… 7

Attachment 6

9.C-28Council Agenda 9-20-2022
Packet Page 39

PISMO BEACH POLICE DEPARTMENT
AUGUST 2022

MONTHLY ACTIVITY AND CRIME STATISTICS

OFFICE OF THE CHIEF

1. On August 3, 2022, Chief Smith attended a meeting on critical Legislative Updates with the California Police Chiefs Association.

2. On August 4, 2022, Chief Smith attended the City’s Management Training Academy.

3. On August 15, 2022, the Department gladly welcomed two new employees. Officer Brent Inglehart came to us with 18 years of experience with the San Luis Obispo Police Department. Crime Analyst Macee Flores boasts 7+ years at Pacific Grove Police Department.

4. On August 30, 2022, Chief Smith attended a quarterly meeting of the Juvenile Justice Coordinating Council. The Council makes decisions that impact juvenile detention and probation policies.

MONTHLY TRAINING REPORT

POLICE VOLUNTEERS SUMMARY
Volunteers were active throughout August. They conducted court runs, parking enforcement and property/laboratory deliveries. They also assisted in Records and at the St. Anthony’s Parade special event.

Volunteer Service Hours
Patrol 5.75
Special Events 19.55
Administrative 90.25
Call-Outs 0.00
Training/Misc. 3.00
Total Hours 118.50

Type of Training Attending Personnel Hours
SWAT Monthly Training 2 Officers 10
Lexipol Daily Training Bulletins 20 Sworn, 8 Non-Sworn 1.5 Active Shooter Instructor Training 1 Officer 8
Range (Red Dot) 4 Officers 8
CIT Training 2 Officers 8
Cashier Training Course 2 Dispatchers 3
Active Shooter Training 14 Officers 8
Dispatcher: Suspicious Activity 5 Dispatchers 10
Dispatcher: Callers in Crisis 1 Dispatcher 4
Dispatcher: Active Shooter 1 Dispatcher 2
League of Cities Annual Conference 1 Chief 24
Public Safety Comms (APCO) 1 Commander, 1 Supervisor 40 Total Hours 404 Hours
Attachment 6

9.C-29Council Agenda 9-20-2022
Packet Page 40

PISMO BEACH POLICE DEPARTMENT
AUGUST 2022

MONTHLY ACTIVITY AND CRIME STATISTICS

OVERTIME & SALARY

Total Overtime Budgeted FY 22/23 $272,877.00
Total Overtime Spent YTD $29,245.57
Percentage Overtime Spent YTD 21.71%

Total Salary Budgeted FY 22/23 $3,620,800.18
Total Salary Spent YTD $589,070.48
Percentage Salary Spent YTD 16.27%

Attachment 6

9.C-30Council Agenda 9-20-2022
Packet Page 41

PISMO BEACH POLICE DEPARTMENT
AUGUST 2022

MONTHLY ACTIVITY AND CRIME STATISTICS

INVESTIGATIONS STATISTICS

Routine Investigations
Arrests 0
Total Cases Worked 13
- Property Crimes 5
- Person Crimes 1
- Sex Crimes 1
- Other Criminal 3
- Other Non-Criminal 3
Supplemental Reports Completed 10
- Closed Cases – Misdemeanor 2
- Closed Cases – Felony 3
- Cases Filed with DA – Misdemeanor 0
- Cases Filed with DA – Felony 2
- Informational only 3

Investigation Management
Cases Assigned – Current 17
Cases Reviewed 45
Missing Person Cases Reviewed 1

Property and Evidence
New Property Cases 13
Property Purged 620
Physical Property Booked 214
Digital Property Booked 338
Property Auction 49
Evidence Processed 1
Fingerprint Submitted 3

Compliance and Permits
Annual PC 290 Registration Renewals 0
CCW Background Investigations 1
H&S 11590 Registration 0
PC 451.7 Arson Registration 0
Massage Establishment/Practitioner Permits 0
Attachment 6

9.C-31Council Agenda 9-20-2022
Packet Page 42

PISMO BEACH POLICE DEPARTMENT
AUGUST 2022

MONTHLY ACTIVITY AND CRIME STATISTICS

Special Operations
Massage Sting Operation 0
- Arrests 0
290 PC Compliance 2
Alcohol Sting Operation 0
- Arrests 0
Tobacco Sting Operations 0
Prostitution Sting Operations 0
Warrants Authored 5
Warrants Served 5
Attachment 6

9.C-32Council Agenda 9-20-2022
Packet Page 43

WORKLOAD Aug 2022 Aug 2021 Jul 2022 Variant % Change YTD 2022 YTD 2021 Variant % Change Calls For Service 2,283 2,566 2,818 -535 -19.0%18,729 20,236 -1,507 -7.4% Community-Generated Calls 1339 1548 1602 -263 -16%10,907 11,548 -641 -6% Self-Initiated Activities 944 1018 1216 -272 -22%7,822 8,688 -866 -10% Incident Reports 190 253 263 -73 -28%1,739 2,058 -319 -16% 9-1-1 Calls 766 845 1,038 -272 -26%6,570 5,961 609 10%
Arrests 93 162 131 -38 -29%929 1,266 -337 -27%
Citations & Warnings 240 338 343 -103 -30%2,250 2,596 -346 -13% Parking Citations 829 1,200 1,192 -363 -30%9,220 7,432 1,788 24% Total Workload 4,401 5,364 5,785 -1,384 -24%39,437 39,549 -112 0% PART 1 CRIMES
Arson 0 0 1 -1 -100%1 0 1 100%
Assault (Aggravated)1 1 2 -1 -50%16 20 -4 -20%
Auto Theft 1 2 2 -1 -50%11 19 -8 -42%
Burglary 5 5 14 -9 -64%66 53 13 25%
Homicide 0 0 0 0 0%0 0 0 0%
Larceny 20 18 27 -7 -26%155 146 9 6%
Rape 0 0 0 0 0%2 1 1 100%
Robbery 2 0 0 2 200%7 3 4 133%
Total Pt 1 Crimes 29 26 46 -17 -37%258 242 16 7%
0 0%0%
PART 2 CRIMES
Assault (Simple)6 3 5 1 20%44 35 9 26%
Disorderly Conduct 8 6 10 -2 -20%65 76 -11 -14%
DUI 7 19 15 -8 -53%63 126 -63 -50%
Forgery/Fraud 8 5 1 7 700%26 36 -10 -28%
Narcotics Offenses 21 41 23 -2 -9%213 309 -96 -31%
Sex Offense 3 3 6 -3 -50%17 7 10 143%
Vandalism/Graffiti 2 7 14 -12 -86%69 65 4 6%
Warrant Arrest 33 50 39 -6 -15%302 337 -35 -10%
Weapons 3 9 1 2 200%20 47 -27 -57%
Total Pt 2 Crimes 91 143 114 -23 -20%819 1,038 -219 -21% AUGUST 2022

PISMO BEACH POLICE DEPARTMENT

MONTHLY ACTIVITY AND CRIME STATISTICS
1548 1527 1424 1411 1322 1437 1299 1210 1271
2249
1407 1602
1339
1018 1019 926 931 787 775 879 1124 997
1309
890
1216
944
253 256 221 192 182 215 228 203 199 213 221 263 190
Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 WORKLOAD TREND Community-Generated Calls Self-Initiated Activities Incident Reports Attachment 6

9.C-33Council Agenda 9-20-2022
Packet Page 44

ARRESTS Aug 2022 Aug 2021 Jul 2022 Variant % Change YTD 2022 YTD 2021 Variant % Change Adult 93 161 122 -29 -24%906 1,256 -350 -28%
Juvenile 6 1 6 0 %23 10 13 130%
Total Arrests 99 162 131 -32 -24%929 1,266 -337 -27%
0%
CITATIONS 0%
Traffic Violation Citations 112 136 155 -43 -28%858 988 -130 -13% Infraction 78 82 117 -39 -33%601 555 46 8%
Hazardous 0 0 0 0 0%0 2 -2 -100%
Misdemeanor 34 54 38 -4 -11%258 430 -172 -40%
Felony 0 0 0 0 0%0 2 -2 -100%
All Other Citations 69 169 120 -51 -43%982 1,097 -115 -10% Warnings 59 33 68 -9 -13%410 511 -101 -20%
Parking Citations 829 1,200 1,192 -363 -30%9,220 7,432 1,788 24% Total Citations 1,069 1,538 211 858 407%11,470 10,028 1,442 14% TRAFFIC ACTIVITY 0%
Traffic Stops 338 499 252 86 34%2,574 3,537 -963 -27%
Traffic Accidents 15 14 28 -13 -46%117 120 -3 -3%
DUI 1 2 3 -2 -67%15 23 -8 -35%
Hit & Run 3 0 3 0 0%22 26 -4 -15%
Injury 4 3 6 -2 -33%28 31 -3 -10%
Property Damage Only 11 11 17 -6 -35%83 88 -5 -6%
0 0 0 0 0
0 0
0 4
0 2
1 4

MONTHLY ACTIVITY AND CRIME STATISTICS
AUGUST 2022

PISMO BEACH POLICE DEPARTMENT
245
386
282
122
256
172
34 54
37 JUN
JUL
AUG
3 MONTH TRAFFIC STOPS ACTIVITY
Led to Arrest
Led to Citation
Vehicle Stops
7%
31%
8%
54%

MONTHLY TRAFFIC COLLISION
CAUSES
DUI
Failed to Stop
Failed to Yield
Other
Unsafe Start/Back
Unsafe Turn/Lane
Change
Attachment 6

9.C-34Council Agenda 9-20-2022
Packet Page 45

Jun 2019 Jul 2019
72%of reported actvity occurred between the hours of 7:00 a.m. and 6:59p.m. 28%of reported activity occurred between the hours of 7:00 p.m. and 6:59 a.m. 29%of reported activity occurred on the weekend.

Monthly Activity Analysis

PISMO BEACH POLICE DEPARTMENT
AUGUST 2022

MONTHLY ACTIVITY AND CRIME STATISTICS
Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9 Zone 10 Zone 11 Zone 12 Zone 13 (OUT)
Percent 0.5%5.8%4.2%9.5%16.8%24.2%24.7%5.3%1.1%0.0%0.5%3.7%3.7% 1 11 8
18 32
46 47
10 2 0 1
7 7
Case Reports Per Zone
Sun
13%
Mon
17%
Tues
16%Wed
14%
Thurs
11%
Fri
13%
Sat
16%

ACTIVITY BY DAY OF WEEK
Days
72%
Nights
28%

ACTIVITY BY SHIFT
Attachment 6

9.C-35Council Agenda 9-20-2022
Packet Page 46

PUBLIC WORKS AND ENGINEERING DEPARTMENT
AUGUST 2022 ACTIVITY REPORT

CAPITAL IMPROVEMENT PROJECTS
Shell Beach Reservoir 1 Replacement
• Tank construction completed and online.
• Contractor wrapping as-builts and operations and maintenance manuals and miscellaneous contract closeout paperwork.
• Notice of Completion scheduled for Council for approval on September 6th.

Police Department Annex
• City staff are currently working with Architect on defining scope of work. • Design contract scheduled for Council approval on September 6, 2022.

Pier Ave Stairs Closure
• Consultant has provided draft report with options, being reviewed by staff. • Anticipate Final report will be presented to City Council November 15, 2022.

Toucan Terrace Sewer Pipeline Trestle Bridge
• 50% construction plans and specifications have been prepared and under review by City staff.

Dolphin Bay Public Storm Drain Repair
• 100% engineering plans are being prepared.
• Consultant working on finishing front end and tech specs for bid package.

Palisade Park
• Consultant has provided conceptual plans and cost estimates for Council review and direction on August 16, 2022.
• Contracts for purchasing equipment and preparation of construction documents scheduled for Council approval on September 6, 2022.

Chumash Park Playgrounds
• Consultant has provided conceptual plans and cost estimates for Council review and direction on August 16, 2022.
• Contracts for purchasing equipment and preparation of construction documents scheduled for Council approval on September 6, 2022.

Chapman House Shoreline
• Consultant is working on the study to update the 2013 shoreline stabilization recommendations report.

Price Historical House
• Friends of Price House has provided update preliminary event green layout for review by Planning Division and the PRBC.

St Jude’s Tunnel
• Vintage mural painting complete.

Attachment 7

9.C-36Council Agenda 9-20-2022
Packet Page 47

• Decorative fencing anticipated manufacture shipping end of August. Installation will be scheduled upon delivery.

Bello and Price Canyon Signal
• Design contract approved by Council on August 2, 2022. • Preliminary summertime traffic counts have begun.
• Stakeholders’ kickoff meeting currently being coordinated following traffic count data.

Central Coast Blue
• Staff received notice of funding for the WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Projects for Central Coast Blue in the amount of $14,124,000.

Bello Bridge
• Public Art – concrete pads for public art installed, waiting on Southpaw for installation of actual public art.

Ocean Blvd Improvements
• Work continuing with construction of the bluff stabilization and new storm drain, and curb, gutter and sidewalk.

Corp Yard Remodel/Addition and City Hall Improvements
• City Hall
o Work at City Hall complete with exception of minor punchlist items and change orders for the front counter and upstairs file room modifications. o Continued coordination with Paso Robles Glass and IT security contractor, SOV all in effort to get a quote from Paso Robles Glass for two new glass entry doors for employee lounge and upstairs employee entrance.
• Corp Yard
o Anticipated completion September 2022.

Paving Project
• Work continuing in the neighborhoods east of James Way with construction of ADA curb ramps.
• Construction of new sidewalk and ADA curb ramps at intersection of Ventana and James Way to begin week of September 5, 2022.

Chapman Estate Improvements
• Windows – Consultant has supplied everything to Pella Windows as they have requested. Waiting on Pella response and/or further request in their discussions with higher level reps in company. Pella windows is saying current lead time on windows is 6 to 8 months.
• ADA Restroom – Staff reviewing 4th plan submittal from Puglisi Architects for ADA bathroom for inclusion in bid documents for bid advertisement.

James Way Beautification Project
• Consultant has produced conceptual plans with a cost estimate. City Staff is currently reviewing.
• City Staff exposed the wall footing in a location by Toucan Terrace and found that the wall footing was on the right of way side of the wall. A Structural Engineer is being brought in to look at the wall footing to make sure the project will not cause damage to Attachment 7

9.C-37Council Agenda 9-20-2022
Packet Page 48

the wall.

Ventana Tennis Courts Project
• 30% design plans have been reviewed by City Staff and comments have been provided back to the consultant.
• The project is going to PRBC on September 1, 2022.

PUBLIC WORKS OPERATIONS
Utilities Division
• One of the operators passed their Class A commercial driving test. • Utilized the Vactor truck and a new attachment and have begun removing the grit from our oxidation ditches and channels. This will be a lengthy process but will allow us to remove the grit without taking the oxidation ditches out of service. • James Way exploratory excavation in support of the James Way project. • R. Baker replaced sewer manhole and cover at Shore Cliff Hotel. • De-ragging and grit removal of influent channel.

Public Facilities Division
• Installing Drinking fountains/bottle fillers city wide. • Install trash cans on James Way.
• James Way weed abatement.
• St Anthony’s parade, set up and tear down

ENGINEERING ACTIVITIES
Development Review/Permits
• 2655 Shell Beach Road – Mixed Use Senior Affordable Housing Units – HASLO – Final PIP review is in process by staff.
• 478 Hinds – Parcel Map – Final map and PIP review is in process.

Hanford/Shaffer Lane Development – Contractor has begun traffic control and potholing to locate existing utilities and define new utility alignment along project development frontage

OTHER ACTIVITIES

During the month of August project development review, staff performed 38 plan checks.

Engineering staff issued 5 encroachment permits, 8 transportation permits, renewed 5 COVID support dining permits and performed 23 field inspections during the month.

Attachment 7

9.C-38Council Agenda 9-20-2022
Packet Page 49

March: N/A
YTD: N/A

VIC Walk-In Count: N/A
Daily Average: N/A

International visitors:

N/A

Inquiries/Comments
N/A

• Sent Visitors Guides California and Nevada. • Sent out application for Clam Festival parade entries and Clam Festival Vendors. • Verified vendor Business Licenses for Chamber Farmers Market and Art in the Park. • Organized Clam Chowder Cook-Off supplies and ordered more. • Working with Esteem on Surf Competition during Clam Festival. • Sent Marine Monitoring Report to Planning Department to work with CCC. • Sent out a reminder to schools for Band Review Applications and began receiving applications. • Worked with Public Works on cleaning of Chapman Estate and Airstream bathrooms. • Ordered trophies, banners, collateral for Clam Festival and Parade. • Visited local restaurants to discuss participation in Clam Chowder Cook -off. • Secured volunteers to be Pam and Sam during Clam Festival Parade and after. • Completed Power Point presentation for TED for new Council candidates. • Discussed Clam Festival theme and began designs for collateral items. • Finalized Clam Festival bands and working with TJA on Stewardship Program for event. • Set up new employees with alarm codes, name badges, emails and schedules. • Posted information about Clam Festival Parade entries on City Facebook page. • Designed and ordered new stickers for collateral items for Clam Festival. • Finalizing band bookings, layout map and Clam Dig items for Clam Festival. • Secured mascots for Clam Festival. • Received FOPH insurance and finalized licensing agreement. • California Coastal Commission Reception at Chapman Estate catering, sound, centerpieces, and guest list. • Submitted event information to Environmental Health for County of SLO. • Compiled list of various school district spring breaks to submit to CVB/LBID Board. • Updated special event listings and information on website and sent link to SLO CAL. • Clam Chowder Cook-Off tickets went live on Eventbrite. • Created PO for Kids Zone bounce houses for Clam Festival. • Scheduled cleaning of Chapman Estate house for CCC Reception. • Continued to take RSVP’s for CCC Reception at Chapman Estate. • Placed order for flowers, tables, and linens for CCC Reception. • Put together event and funding information for Chamber events for meeting this week. • Received Leads from Visit California and added respondents to our newsletter. • Submitted check request for Docent Tour Fees to Chapman Estate Foundation.

Visitors Information Center and Airstream Highlights • Verified background status of two new hires and began training. • Visitor Information Hosts getting employee ID photos. • Saw an uptick in foreign visitors to the airstream. • September schedule sent out to staff. • Continued training new staff on daily duties. • Public Works got new hires alarm codes programmed. • Sent out over 150 Visitors Guides.

Chapman Estate Highlights
• Ordered executive Bathrooms for Chapman Estate events. • Worked with Public Works to set up maintenance on handwashing stations. • Received SEC Application for Chapman Estate Wedding in 2023. • Received Calendar Request for Orchestra Novo. • Worked with the Foundation to set up a schedule for access to the house prior to Swingin’ by The Sea. • Chapman Estate hosted a wedding and a private BBQ function. • Had a large RV club of 30 come for tours and lunch. • Answered 8 inquiries about events at Chapman Estate. • Set up a site tour for a possible wedding at Chapman Estate. • Worked with various groups for upcoming group tours at Chapman Estate. • Rotary Passport Club of the Central Coast at Chapman Estate for Open Gates. • Discussed upcoming events for September with Maintenance.

Attachment 8

9.C-39Council Agenda 9-20-2022
Packet Page 50

PLATFORM TOTAL FANS/
VIEWS

NEW THIS
MO.

Facebook 204,311 603
Twitter 6,211 2
Instagram 68,629 304
YouTube 642,212 417
E-Newsletter 48,671

ExperiencePismoBeach.com THIS MONTH YEAR TO DATE
Total Sessions 71,617 159,406
Average Daily Visitors 2,310 2,571
All Lodging Referrals 4,610 11,477
Jack Rabbit Referrals 1,556 4,117

• Agenda Review • Economic Development Meeting • Directors Meeting • Management Training Academy • SCCC Pismo Beach Business Meeting • EOC Training • McLintocks Clam Festival Meeting • City of Solvang Marketing Manager Interviews • City Council Meeting • South County Chamber Luncheon • CVB/LBID Advisory Board Meeting • CCTC Board Meeting • SEC Meeting • ITT Strategic Plan Prioritization Workshop • ISA LOC Meeting • California Welcome Center Open House • https://news.yahoo.com/young-leaders-gather-us-canada- 021836927.html
• https://travelnowsmart.com/things-to-do-in-pismo-beach- with-family-2/?noamp=mobile
• https://www.ksby.com/news/local-news/young-leaders-
gather-from-us-canada-for-forum-in-pismo-beach
• https://www.ksby.com/news/local-news/shark-breach-
caught-on-camera-off-the-central-coast
• https://blog.yelp.com/community/the-best-beaches-to-visit- in-the-u-s-that-arent-in-hawaii/
• https://cafemom.com/lifestyle/enjoy-the-great-outdoors- with-these-5-family-friendly-road-trips/californias-highway- 1 • https://www.tastingtable.com/947801/everything-you-need -to-know-about-slo-coast-wine/
• https://www.ksby.com/news/local-news/local-vendors-
showcased-their-crafts-at-art-in-the-park-event
• https://keyt.com/news/san-luis-obispo-county/2022/08/07/ pismo-beach-holds-its-art-in-the-park-at-dinosaur-park/ • https://www.sfchronicle.com/food/restaurants/article/road -trip-from-San-Francisco-17352572.php
• https://socallifemag.com/beachy-summer-reset-in-pismo- beach/
• https://original.newsbreak.com/@mark-john-clifford-
561641/2700799399393-my-review-of-pizmo-cafe-wooly-s-
in-pismo-beach
• https://gulfnewsn.com/9-fabulous-restaurants-to-try-in- pismo-beach-california-travelawaits/
• https://www.worldrecordacademy.org/2022/08/worlds-
largest-clam-statues-world-record-set-in-pismo-beach-
california-422358
• https://www.ksby.com/news/local-news/families-find-a- support-system-thanks-to-surfing-for-hope
• https://en.travelingknowledge.com/things-to-do-in-san-luis- obispo/
• https://www.themanual.com/travel/labor-day-weekend-
travel-spots/
• https://darik.news/california/this-california-beach-is-an-off- roaders-paradise/697332.html
• https://centralrecorder.com/5-most-beautiful-places-to-visit -in-california-on-a-budget/
• https://dogstodaymagazine.co.uk/2022/08/22/watch-
surfing-therapy-dog-catches-her-last-wave/
• https://www.tumsozluk.com/13-fun-things-to-do-in-pismo -beach-california/
• https://www.thrillist.com/eat/nation/best-fresh-seafood- restaurants-on-the-water
• https://keyt.com/lifestyle/travel/2022/08/30/last-summer -season-three-day-weekend-expected-to-be-packed-with-
travelers-on-the-central-coast/
• https://southcoastsun.co.za/218945/doonside-para-surfer- places-third-in-sa-champs/

• Received payment for Shallenberger Wedding,
Van Es Wedding, Chamber Events, Villarreal
Wedding, St Anthony’s Celebration and Keeney/
Lame wedding at Chapman Estate. • SEC Meeting prep, minutes, and applicant notifi- cation of approvals. • Received SEC permit applications for Taste of Pismo and Classic California Christmas Ugly
Sweater Wine Walk • Issued permit for St. Anthony Celebration and Swingin by the Sea.

Attachment 8

9.C-40Council Agenda 9-20-2022
Packet Page 51

RECREATION PROGRAMS
• Youth summer camps ended in August. Camp attendance for the final 2 weeks exceeded 75 participants. Camps in August include; Drum Perks, Ocean Adventures, Creative Kids Theatre, Surt, Art, Volleyball, and Lego camp. Strong enroll- ment numbers continued as we closed out the summer with many camps waitlisted due to being filled early. Recreation staff worked diligently to fill every slot available due to cancellation or illness, often signing up participants hours befo re they started to accommodate families in need of activities for the summer. • The fall activity guide was mailed out to homes in the five -cities area in the second week of August. New programs for fall include GIT LIIT (Low Impact Interval Training) and Acrylic Art by Catherine. Classes are filling for fall as we contin- ue to see strong support for our youth and adult programming. • Recreation updated the city’s website for fall programs and inputted all fall classes into the registration software, Active.
• Recreation continues to communicate with instructors regarding enrollment, logistics and needs to ensure the pro- grams are successful.
• Processed invoices, completed cash/credit reconciliation and instructor payments.

FACILITES
• Recreation staff continue to book park and Veterans Hall rentals. Requests for rentals continues to remain strong into the fall season. Birthdays and weddings have no season, and Pismo Beach facilities continue to be a destination for all occasions.
• 17 Park and Hall rentals were booked for the month of August. • Recreation continues to communicate with existing rentals regarding event details. • Gas line replacement at the Pismo Beach Veterans Hall were completed in Mid -August. Gas at the Meals-on-Wheels kitchen was completed before the rest of the hall in order to have them continue to provide their needed service to the community.
• On the August 16th City Council meeting, council recommend moving toward replacing playground equipment at both Chumash and Palisades Park. There was a consensus made to relocate the playground at Palisades, and Public Works staff will return at a later date with a report on how to move forward with the replacement of both playgrounds. • Recreation communicated with special events regarding park applications, fees, and rental details. Recreation sent the Janitorial service the monthly calendar for programs and cleaning schedule.

Adopt-a-bench inquires continue. Recreation staff will continue work with public works to create a plan and sched- ule an effective and efficient strategy to replace benches in need of replacement. Three new applications and been accepted for the month of August for Shell Beach Streetscape and Pier Picnic Table adoptions.

PRBC
Recreation met with Chair and prepared the agenda for the September 1 st meeting. Agenda items included a public art mural, review of pickleball/tennis courts at Ventana, summer -wrap up of recreational programming and up- date on public art projects.

Attachment 8

9.C-41Council Agenda 9-20-2022
Packet Page 52

PUBLIC ART/CIP PROJECTS
• St. Jude’s tunnel signage was completed in early August. The final step is an application of a graffiti protectant clear- coat application and repairing the fence, this is expected to be completed in early September. • The Bello Street Bridge concrete slab is completed and ready for memorial seating and interpretive panel installa- tion. Interpretive panels are currently being manufactured and expected to be delivered to Southpaw soon. Southpaw expects this art project to be installed in September 2022. • Recreation reached out to the artists who completed the public art stop signs along Shell Beach Road to see if they would be interested in adding one additional stop sign to complete the intersections at Vista Del Mar, Terrace and Cliff Ave.
• Recreation continues to update Rec West on Chumash/Palisades park projects.

Recreation & Engineering met with pickleball community regarding Ventana project. Additionally, the pickleball com- munity has expressed interest in developing more parking spaces, wind screens and updating portable units at Palisades park.

EVENTS
• The 2022 Stride with the Tide 5K run on the beach was an overwhelming success! With over 250 participants, Recre- ation alongside San Luis Obispo Distance Club spent the beginning of August reconciling financial transactions from reg- istrations, while reviewing the event as a whole as we prepare for next year. • Recreation staff have been planning upcoming fall events which include Movies in the Park (September 16) and Pumpkins in the Park (October 29). Securing vendors, recruiting volunteers, securing sponsors, and promotion have been a focal point of Recreation staff to ensure a quality experience and turnout that Recreation strives for at every event.

Attachment 8

9.C-42Council Agenda 9-20-2022
Packet Page 53

PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.D
SUBJECT/TITLE:

MONTHLY INVESTMENT TRANSACTION REPORT OF THE CITY’S CASH AND INVESTMENTS FOR JULY 2022 OF FY 2022-2023
RECOMMENDATION:

No action required; information only.

BACKGROUND:

This report updates the City Council on the City of Pismo Beach’s monthly transactions of the City’s investment portfolio for the month ending July 31, 2022. California State Government Code Section 53607 states that if the authority of the legislative body to invest or reinvest funds for the City is delegated to the City Treasurer, the City Treasurer shall make a monthly report of those transactions to the legislative body.

The attached report includes all transactions of the City’s investments managed by the City, including funds invested in various securities and the City’s pooled funds invested in various financial instruments.
•Attachment 1 provides a summary of the City’s cash, investments, and monthly interest earnings based on book value as of July 31, 2022. •Attachment 2 provides details on the investment transactions for the General Fund Reserve and City Pooled Funds A (for deferred capital projects), including: purchases or deposits; sales, maturities, calls or withdrawals; and interest earnings. •Attachment 3 provides details of the monthly transactions by fund for City Pooled Funds B (for current year expenditures) for the month ending July 31, 2022.

FISCAL IMPACT:

No fiscal impact from the report itself—information only.

ALTERNATIVES:

1.No Council action is proposed, other than to receive the information..

ATTACHMENTS:

1. Summary Table for ALL Funds, including Book Values and Earnings Data for Investments in Other Financial Instruments

2.For the General Fund Reserve and City Pooled Funds A—Transactions on Investments in Securities

3.For City Pooled Funds B—Summary of monthly transactions by fund Prepared by: Vanessa Garris, Finance Manager Meeting Date: Sept. 20, 2022 Submitted by: Nadia Feeser, Administrative Services Director / City Treasurer City Manager Approval:

9.D-1Council Agenda 9-20-2022
Packet Page 54

City of Pismo Beach
Investment Name Name of Institution Type of Investment
Current
Earnings
Rate Book Value
Actual Interest
Earned July 2022
Actual Year-to-
Date Interest
Earned Ending
7/31/2022 * Data Sources
General Fund
Reserves
US Bank CDs/GASs/Corp/
Muni Bonds

1.92% avg 7,328,013$ 8,041$ 8,041$ 1 City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ Muni Bonds/
US Treasury Note

1.83% avg 28,053,269 14,504 14,504 1 Total All Securities 35,381,282$ 22,545$ 22,545$ City Pooled Funds - B US Bank Custody 0.00%-$ 72$ 72$ 1 City Pooled Funds - B Local Agency Invest.

Fund
State Investment
Pool

0.75%19,330,256 - - 2 City Pooled Funds - B US Bank Checking 0.00%16,583,108 71 71 3 City Pooled Funds - B 35,913,364$ 142$ 142$ City Pooled Funds total A + B 63,966,633$ 14,647$ 14,647$ Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 Pier Project 52$ 0$ 0$ 4 Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 CREB's
Project
6 - - 4 CalPERS Benefit Trust
OPEB Trust Account CalPERS Benefit
Trust Account
Various managed
by CalPERS
4,313,918$ -$ -$ 5 TOTAL, Cash and Investments at July 31, 2022:75,608,621$ 22,688$ 22,688$ TOTAL for City Managed Portfolio, Cash and Investments:71,294,646$ 22,688$ 22,688$ Notes:
* Data Sources for Book Values and Actual Interest Earned:
1 = Monthly Customer Statement from US Bank
2 = Monthly statement from Local Agency Investment Fund 3 = Monthly reconciled bank statement from US Bank
4 = Monthly statement from Wilmington Trust
5 = Monthly statement from CalPERS Benefit Trust Account Attachment 1: Summary Table for All Funds,
including Book Values and Earnings Data for Investments in Other Financial Instruments

9.D-2Council Agenda 9-20-2022
Attachment 1
Packet Page 55

CITY OF PISMO BEACH
Attachment 2: For the General Fund Reserve and City Pooled Funds A Transactions on Investments in Securities
July 31, 2022

INVESTMENT ACTIVITY

PURCHASES OR DEP OSITS
No Activity -$
Total -$

SALES, MATURITIES, CALLS OR WITHDRAWALS
07/31/22 Matured KS Statebank Manhattan 245,000$
Total 245,000$
ACTIVITY TOTAL (245,000)$

INTEREST REVENUE

GENERAL FUND RESERVE INVESTMENTS
Interest Earned on Investments 8,041$

POOLED INVESTMENTS
Interest Earned on Investments 14,504$
TOTAL INTEREST EARNED 22,545$
Data Source: Monthly Download of Transactions from US Bank

9.D-3Council Agenda 9-20-2022
Attachment 2
Packet Page 56

Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:7/31/2022 Bank Account Description Bank ID
Beginning
Balance Cash Receipts Disbursements Transfers-In
Transfers-
Out
Ending
Balance
General Checking US Bank 20,160,679$ 5,867,374$ (9,710,486)$ 265,541$ -$ 16,583,108$ LAIF LAIF 19,294,133 36,123 - - - 19,330,256 Total all Bank Accounts 39,454,812$ 5,903,497$ (9,710,486)$ 265,541$ -$ 35,913,364$ Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In
Transfers-
Out
Ending
Balance
General Fund
General Fund 1001-10101 9,880,690 3,686,462 (4,199,709) - - 9,367,443 General Fund-Reserve 1001-10105 293,536 8,056 - - - 301,592 Half Cent Sales Tax Fund 1002 2,105,241 1,253 - - - 2,106,494 Special Revenue Funds
Gas Tax Fund 2001 160,277 30,564 - - - 190,841 LTF - Streets 2002 325,120 (56) - - - 325,064 PEG Access Fund 2003 159,867 - - - - 159,867 Police Grant Fund 2004 252,354 16,100 - - - 268,454 Housing In Lieu Fund 2005 2,206,291 627 - - - 2,206,918 LBID Fund 2006 2,400,915 320,361 (103,146) - - 2,618,129 Chapman House 2007 15,920 2,768 (2,702) - - 15,986 Capital Projects Funds
Capital Projects Fund 3001 2,460,026 (370) (2,500,414) - - (40,758) Public Facilities Fund 3002 869 - - - - 869 Park Development Fund 3003 307,733 (160) - - - 307,573 Circulation Fund 3101 617,355 200 - - - 617,555 Development Impact Fee Fund 3102 109,402 273,547 - - - 382,949 Developer Impact Fee Fund 3103 165,375 - - - - 165,375 Underground Utility Fund 3201 16,349 - - - - 16,349

9.D-4Council Agenda 9-20-2022
Attachment 3
Packet Page 57

Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:7/31/2022 Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In
Transfers-
Out
Ending
Balance
Debt Service Funds
Public Finance Authority Fund 4001 - - - - - - Public Finance Authority Fund 4002 - - - - - - Freeway Foothills AD Fund 4101 756 - - - - 756 Spyglass AD Fund 4102 12,593 - - - - 12,593 Indio-El Portal AD Fund 4112 731 - - - - 731 Visalia Street AD Fund 4113 100,006 - - - - 100,006 Enterprise Funds
Water Enterprise/Tax Fund 6101/6102 3,286,675 500,629 (1,696,770) - - 2,090,534 Water Tax - Gragg Fund 6102-10102 100 - - - - 100 Water Construction Fund 6103 703,134 5,175 (52,384) - - 655,925 Water Expansion Fund 6104 1,203,078 3,888 - - - 1,206,966 Wastewater Enterprise Fund 6201 3,526,994 517,521 (282,683) - - 3,761,831 Wastewater Construction Fund 6202 1,234,272 - - - - 1,234,272 Wastewater Expansion Fund 6203 1,965,543 11,234 - - - 1,976,777 LTF - Transit Fund 6301 28,842 (75) - - - 28,767 Pier Operations Fund 6401 23,454 6,867 (6,074) - - 24,248 Parking Fund 6501 2,654,363 304,255 (36,193) - - 2,922,425 Internal Service Funds
Technology Service Fund 7101 141,787 80,751 (93,805) - - 128,733 Motor Vehicle Fund 7201 1,960,133 90,278 (96,837) - - 1,953,573 Trust & Agency Funds
SLO County TMD 8201 178,479 245,513 (184,856) - - 239,136 Control Funds
Payroll Control Fund 9301 734,048 101,871 (529,808) - - 306,111 Interest Control Fund 9302 253 36,193 - - - 36,446 Utility Billing Control Fund 9304 221,703 1,030 - - - 222,733 M/R Control Fund 9305 - - - - - - Total all cash funds 39,454,262 6,244,482 (9,785,381) - - 35,913,364

9.D-5Council Agenda 9-20-2022
Attachment 3
Packet Page 58

INVESTMENTS
General Fund
General Fund Money Mrkt Csh 1001-10108 0 - - - - 0 General Fund - CD's 1001-10404 4,347,000 - - - - 4,347,000 General Fund - Fed Agency 1001-10405 4,049,000 - - - - 4,049,000 GF - Half Cent Sales Tax CD's 1002-10404 1,225,000 - - - - 1,225,000 GF - Half Cent Sales Tax 1002-10405 500,000 - - - - 500,000 GF - Half Cent Sales Tax Mny M 1002-10108 0 - - - - 0 GF Reserve Money Mkt Cash 1001-10109 0 - - - - 0 GF Reserve - CD's 1001-10403 2,607,000 - - - - 2,607,000 GF Reserve - Fed Agency 1001-10402 2,208,000 - - - - 2,208,000 GF Reserve - Building 1001-10406 202,000 - - - - 202,000 GF Reserve - Building - Federal A1001-10146 298,000 - - - - 298,000 GF Reserve - Risk Mgmt - CD's 1001-10407 150,000 - - - - 150,000 GF Reserve - Risk Mgmt - Fed A 1001-10140 50,000 - - - - 50,000 GF Corp Bond - Pooled 1001-10141 529,143 - - - - 529,143 GF Corp Bond - Reserve 1001-10145 500,000 - - - - 500,000 GF Municipal Bonds Pooled 1001-10142 435,101 - - - - 435,101 GF Municipal Bonds Reserve 1001-10143 1,263,013 - - - - 1,263,013 Risk Mgmt Muni Bonds Reserve 1001-10144 50,000 - - - - 50,000 Half Cent Sales Tax - Pooled 1002-10141 - - - - - - Half Cent Sales Tax - Muni Bond 1002-10142 571,288 - - - - 571,288 GF CREB's Fiscal Agent 1001-10515 (0) - - - - (0) GF Treasury Note 1001-10410 5,045,375 - - - - 5,045,375 Special Revenue Funds
Housing In Lieu - Mny Mkt Csh 2005-10108 (0) - - - - (0) Housing In Lieu Fund 2005-10404 875,000 - - - - 875,000 Housing In-Lieu Fed Agencies 2005-10405 140,000 - - - - 140,000 Capital Projects Funds
Park Develop. Fund Mny Mkt 3003-10108 - - - - - - Park Development Fund 3003-10404 - - - - - - Park Develop Federal Agencies 3003-10405 - - - - - - Circulation Fees Mny Mkt 3101-10108 - - - - - - Circulation Fees 3101-10404 - - - - - - Develop. Impact Fee Mny Mkt 3102-10108 0 - - - - 0 Development Impact Fee Fund 3102-10404 490,000 (245,000) - - - 245,000 Impact Fees Federal Agencies 3102-10405 - - - - - -

9.D-6Council Agenda 9-20-2022
Attachment 3
Packet Page 59

INVESTMENTS
Debt Service Funds
Public Fin Fiscal Agent-Pier 4002-10510 52 0 - - - 52 Public Fin Fiscal Agent-CREBs 4002-10515 6 - - - - 6 Enterprise Funds
Water Fund Money Mrkt Csh 6101-10108 0 - - - - 0 Water Fund CD's 6101-10404 490,000 - - - - 490,000 Wtr Fund Federal Agencies 6101-10405 2,155,000 - - - - 2,155,000 Wtr Fund Corp Bond - Pooled 6101-10141 - - - - - - Water Construction Money Mkt 6103-10108 (0) - - - - (0) Water Construction 6103-10404 504,363 - - - - 504,363 Wastewater Fund Money Market 6201-10108 0 - - - - 0 Wastewater Fund CD's 6201-10404 490,000 - - - - 490,000 Wastewater Fund Fed Agencies 6201-10405 2,100,000 - - - - 2,100,000 WWtr Fund Corp Bond - Pooled 6201-10141 1,062,000 - - - - 1,062,000 Parking Enterprise Money Mrkt 6501-10108 (0) - - - - (0) Parking Fund Corp Bond-Pooled 6501-10141 500,000 - - - - 500,000 Parking Enterprise 6501-10404 490,000 - - - - 490,000 Parking Fund Federal Agencies 6501-10405 1,000,000 - - - - 1,000,000 Parking Fund Treasury Note 6501-10410 1,000,000 - - - - 1,000,000 Internal Service Funds
MVR Fund Money Mrkt Csh 7201-10108 0 - - - - 0 MVR Fund CD's 7201-10404 50,000 - - - - 50,000 MVR Fund Federal Agencies 7201-10405 250,000 - - - - 250,000 CalPers Benefit Trust
OPEB Trust Account 8101-10408 4,313,918 - - - - 4,313,918 Total all Investments 39,940,258$ (245,000)$ -$ -$ -$ 39,695,258$ Total all Funds 79,394,520$ 5,999,482$ (9,785,381)$ -$ -$ 75,608,621$

9.D-7Council Agenda 9-20-2022
Attachment 3
Packet Page 60

PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.E

SUBJECT/TITLE:

BIENNIAL CONFLICT OF INTEREST CODE UPDATE

RECOMMENDATION:

Adopt a Resolution adopting a revised Conflict of Interest Code; rescinding Resolution No. R-2020-076.

BACKGROUND:

The Political Reform Act (PRA) requires local government agencies to adopt and implement a Conflict of Interest Code setting forth the agency's conflict of interest policies, designating agency positions that are required to file Statements of Economic Interest (FPPC Form 700s), and assigning disclosure categories specifying the types of financial interests that filers must report. In addition to Form 700 filer policies, the Conflict of Interest Code sets forth the general rule that no agency official may participate in a governmental decision in which the official has a financial interest, and provides specific recusal guidance for City officials who are members of legislative bodies.

Government Code §87200 mandates that specific agency officials file full-disclosure Form 700s and comply with the full breadth of the PRA. These positions include members of the City Council, members of the Planning Commission, City Manager, City Attorney, City Treasurer, and candidates for elective office. In addition to these "87200 filers," each local agency must designate other agency officials who are required file Form 700s because the nature or extent of the decision-making authority of those positions is such that the potential for material conflicts of interest exists. These filers include Advisory Body members, all Department Heads, the majority of Mid-Managers, and certain non- management staff who make governmental decisions such as building inspectors.

Local governmental agencies are required to review their Conflict of Interest Code at least biennially to determine whether revisions are needed due to creation or elimination of positions, changes in the duties assigned to existing positions, or the need to augment local conflict of interest policies. The City’s last Conflict of Interest Code update occurred as a biennial update in September 2020, via Resolution R-2020-076 1.

Proposed Revisions
Revisions to the City's list of Form 700 filer positions are necessary at this time due to recent staffing changes. In addition, staff recommends changes to reflect the transition to electronic filing for all Form 700 filers. An overview of recommended revisions is provided below:

1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=266189&dbid=0&repo=Laserfiche&sear chid=329b7576-4b2d-4d08-9577-1a1fe41ea199

9.E-1Council Agenda 9-20-2022
Packet Page 61

Filer Positions and Disclosure Categories
• The position of Senior Management Analyst was created and added to the Conflict of Interest Code in 2018. A Senior Management Analyst has since been added to the Administrative Services Department, and a conforming change is now recommended for the list of the Department’s filers.
• Creation of a full-time Code Enforcement Officer position was approved by the City Council in June of 2022. The position possesses governmental decision-making authority sufficient enough to invoke the possibility of material conflicts of interest, and as such the position has been added to the Community Development Department’s Form 700 filer positions, with a disclosure category of 3, comparable to most other non-department-head staff filers.
• The title of Assistant City Manager was created in June 2021 and has now been added to the list of Management Service Department filers, with a disclosure category of 2, comparable to other department heads.
• No changes are proposed to the disclosure categories (types of financial interests that each filer must report as part of their Form 700) for any positions during this update cycle.

Policy Provisions
• The City launched its state-certified electronic Form 700 filing system (eDisclosure) in spring of 2021. A change to Section E.3 of the Code is recommended to reflect the requirement that all filers file using this system, unless an exception is approved due to extenuating circumstances, which would allow the filing of a hard copy that would then be uploaded to the e-filing system.

Conclusion and Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) revising the City's Conflict of Interest Code (Attachment 1.A) to incorporate the changes outlined above, and rescinding the prior Code.

FISCAL IMPACT:

There is no fiscal impact associated with updating the City’s Conflict of Interest Code.

Staff time required for enforcement of the City's conflict of interest regulations is absorbed primarily by the adopted Management Services Department budget.

ALTERNATIVES:

1. Adopt the Resolution with further modifications to the Code.

2. Decline to adopt the Resolution; provide additional direction to staff.

ATTACHMENTS:

1. Resolution Amending the Conflict of Interest Code

1.A. Exhibit A to Resolution: Conflict of Interest Code

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Submitted by: Meeting Date: September 20, 2022
Erica Inderlied, City Clerk
City Manager Approval:

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RESOLUTION NO. R-2022-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH ADOPTING A REVISED CONFLICT OF INTEREST CODE; RESCINDING RESOLUTION NO. R-2020-076
WHEREAS, the Political Reform of 1974 (California Government Code §81000, et seq.) provides that public officials shall not participate in or influence decisions relating to matters in which they know, or in which they have reason to believe, that they have a financial interest; and
WHEREAS, the Political Reform Act and implementing state regulations (California Code of Regulations, Title 2, Division 6, §18110, et seq.) adopted by the Fair Political Practices Commission (FPPC) set forth various rules applicable to such conflicts of interest, including rules of disclosure and participation; and
WHEREAS, among the regulations are rules requiring cities to adopt Conflict of Interest Codes setting forth conflict of interest policies and identifying the agency's Form 700 filers, and to review and update these policies biennially; and WHEREAS, by Resolution the Pismo Beach City Council previously has adopted such a Conflict of Interest Code and desires to adopt necessary and appropriate amendments thereto.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach that the City of Pismo Beach’s revised Conflict of Interest Code is hereby adopted as set forth in Exhibit A to this Resolution.

BE IT FURTHER RESOLVED that Resolution R-2020-076, adopting the most recent iteration of the City's Conflict of Interest Code, is hereby rescinded.

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 16th day of August 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk

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CITY OF PISMO BEACH

CONFLICT OF INTEREST CODE
I.INCORPORATION AND TERMS
A.Incorporation
The Political Reform Act (Government Code §81000, et seq.) requires local government agencies to adopt and implement conflict of interest codes. The Fair Political Practices Commission ("FPPC") has adopted regulations (California Code of Regulations Title 2, Division 6, §18730, et seq.) containing the terms of a standard conflict of interest code, which may be incorporated by reference in a local agency’s Code. Regulations 18730, et seq. may be amended by the FPPC from time to time to conform to amendments to the Political Reform Act.

The terms of Regulation 18730, et seq. and any duly adopted amendments thereto are hereby incorporated into this Conflict of Interest Code by reference. FPPC Regulation 18730, et seq., together with the following Code provisions designating filer positions, establishing financial interest disclosure categories, and establishing supplemental local conflict of interest limitations, shall constitute the Conflict of Interest Code ("Code") of the City of Pismo Beach ("City").

B. Conflict with other Laws
The provisions of this Code are in addition to, and not intended to modify or abridge, the provisions of the Political Reform Act of 1974 (Government Code §81000, et seq.), Government Code §1090, et seq., California Code of Regulations Title 2, Division 6, §18110, et seq., or other federal, state, or local regulations pertaining to conflict of interest. In the event any provision of this Code is in conflict with federal, state, or local law, such law shall prevail and the validity of the remaining sections of this Code shall not be affected.

II.CONFLICT OF INTEREST, GENERALLY
A. Generally
No City official shall make, participate in making, or in any way attempt to use their official position to influence a governmental decision in which the official knows, or has reason to know, that that the official has a financial interest.

B. Gifts

1.Statutory (Category 1) filers shall comply with the provisions of the Political Reform Act relating to gifts, honoraria, travel payments, and loans, including but not limited to Government Code §82028, §89500 et seq., and accompanying regulations.

2. The City’s Tickets and Passes Policy, as amended from time to time by Council resolution, is hereby incorporated by reference. In particular, the receipt of tickets or passes by any Form 700 filer shall not constitute a gift if the tickets or passes are given for a public purpose, or meet any other exemption, as provided by the policy.

3.For all City officials who are subject to the City's Personnel Rules, Personnel Rule

25.02.01 relating to gratuities is hereby incorporated by reference.

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III. DISCLOSURE (STATEMENTS OF ECONOMIC INTERESTS)
A.Requirement to File
The City of Pismo Beach positions identified in Section III.C have the authority to make, or participate in making, decisions that may foreseeably have a material effect on the personal financial interests of the individuals exercising the duties of the positions. Such individuals are deemed to have the potential for conflict of interest and thus shall be required to file FPPC Form 700 Statements of Economic Interests ("Form 700") with the City of Pismo Beach, in accordance with the intervals and deadlines set forth in Section III.E.2.

This requirement applies to any individual, whether employee, consultant, contractor, elected official, appointed official, volunteer, or otherwise, who performs the duties of the position.

B. Classification of Filers
City of Pismo Beach Form 700 Filers are hereby categorized as follows:

1. Statutory Filers (Category 1 Filers)
Individuals exercising the duties of City positions identified in Government Code §87200 are hereafter referred to as "statutory filers." Statutory filers are herein classified as Category 1 filers for disclosure purposes. This Code does not establish the filing requirements or disclosure obligations for statutory filers, but such requirements and obligations are partially restated herein for ease of reference. Supplemental policies may herein be imposed, but such policies are not intended to supersede or abridge other regulation, and in the event of conflict with state regulation, the state regulation will control. Refer to Section I.B.

2. Designated Filers (Category 2 and Category 3 Filers; Interim Filers) Individuals exercising the duties of all other City positions identified in this Code are hereafter referred to as "designated filers." This term shall also include individuals exercising the duties of a position not specifically identified in this Code, but required by the City to file a Form 700 due to recognized potential for conflict of interest.

Designated filers are herein classified as Category 2, Category 3, or Interim filers for disclosure purposes. This Code establishes the filing requirements and disclosure obligations for designated filers, to the extent that state regulation does not.

3. Interim Filers
An individual assuming a new position not yet covered under the City's Conflict of Interest Code must file a Form 700 if the duties of the position involve the making or influencing of governmental decisions. These individuals must file full disclosure until the Code is revised to include the new position; in the alternative, the City may establish a written limited disclosure requirement for the position.

The City Manager shall have the power to designate new or existing positions for disclosure on an interim basis pending revision of this Code. Such designations shall be made if the City Manager determines that the position entails the making or

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participating in the making of governmental decisions which may foreseeably have a material effect on personal financial interests.

C. List of Filer Positions
Disclosure
Category
Form 700
Schedules
Administration & City Council
Assistant City Attorney 2 A-1, A-2, B, C
Candidate for City Council Member 1 All
Candidate for Mayor 1 All
City Attorney 1 All
City Council Member 1 All
City Manager 1 All
Mayor 1 All
Administrative Services Department
City Treasurer 1 All
Finance Manager 2 A-1, A-2, B,C
Information Technology Manager 3 A-1, A-2, C
Senior Management Analyst 3 A-1, A-2, C
Advisory Bodies (Voting Members Only)
Building Appeals Board Member 2 A-1, A-2, B, C
Conference and Visitors Bureau Board Member 2 A-1, A-2, B, C Industrial Development Authority Board Member** 2 A-1, A-2, B, C Parking Advisory Committee Member 2 A-1, A-2, B, C
Parks, Recreation and Beautification Commissioner 2 A-1, A-2, B, C Planning Commissioner 1 All
Public Financing Authority Board Member** 2 A-1, A-2, B, C Public Financing Agency Board Member** 2 A-1, A-2, B, C Special Events Committee Member 2 A-1, A-2, B, C
Community Development
Assistant Planner 3 A-1, A-2, C
Associate Planner 3 A-1, A-2,C
Building Inspector 3 A-1, A-2, C
Building Official 3 A-1, A-2, C
Code Enforcement Officer 3 A-1, A-2, C
Community Development Director 2 A-1, A-2, B, C
Planning Manager 3 A-1, A-2, C
Plans Examiner/Building Inspector 3 A-1, A-2, C
Senior Management Analyst 3 A-1, A-2, C
Senior Planner 3 A-1, A-2, C
Consultants
Engineering Consultants
Environmental Consultants
Legal Consultants
Other Consultants
Full disclosure
unless otherwise
assigned in
writing.*
All, unless
otherwise
assigned in
writing.*

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Fire Department
Battalion Chief 2 A-1, A-2, B, C
Deputy Fire Chief 2 A-1, A-2, B,C
Fire Captain 3 A-1, A-2, C
Fire Captain/Specialist 3 A-1, A-2, C
Fire Chief 2 A-1, A-2, B, C
Fire Marshal 2 A-1, A-2, B, C
Management Services Department
Assistant City Manager 2 A-1, A-2, B, C
City Clerk 2 A-1, A-2, B, C
Management Analyst 3 A-1, A-2, C
Management Services Director 2 A-1, A-2, B, C
Police Department
Police Chief 2 A-1, A-2, B, C
Police Commander 3 A-1, A-2, C
Public Works Department/Engineering Division
Assistant Engineer 3 A-1, A-2,C
Engineer 3 A-1, A-2,C
Management Analyst 3 A-1, A-2, C
Public Facilities Manager 3 A-1, A-2, C
Public Works Director/City Engineer 2 A-1, A-2, B, C
Senior Civil Engineer 3 A-1, A-2, C
Utilities Manager 3 A-1, A-2, C
Tourism and Events Department
Director of Tourism and Events 2 A-1, A-2, B, C
Recreation Manager 3 A-1, A-2, C
Tourism Coordinator 3 A-1, A-2, C
Other positions (Interim Filers). New positions that involve the making or influencing of government positions but
have yet to be added to this Code; new or existing
positions identified by the City Manager as having the
potential for conflict of interest.

Full disclosure
unless otherwise
assigned in
writing.*
All, unless
otherwise
assigned in
writing.*
* The City Manager may determine in writing that a particular consultant has been hired to perform a range of duties that is sufficiently limited in scope so as not to require full compliance with the disclosure requirements of this Code. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements, if any.

The determination of the City Manager is a public record and shall be retained for public inspection in the same manner and location as the consultant's Form 700s. In this Code, "consultant" shall have the meaning as defined in California Code of Regulations Title 2, Division 6, §18700.3(a). ** City Council Members file an expanded Form 700 identifying Industrial Development Authority, Public Financing Authority, and Public Financing Agency membership.

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D. Disclosure Categories
Disclosure categories describe the types of financial interests that filers must disclose on their Form 700s. These Categories are tailored to the financial interests potentially affected by the official's governmental decisionmaking authority, and do not require public officials to disclose private financial information that does not relate to their capacity as an official for the City of Pismo Beach.

Refer to Section III.C. above, which sets forth the Disclosure Category assigned to each filer position.

Category descriptions herein make general reference to the type of financial interest that must be disclosed. Actual disclosure must be made in accordance with the FPPC Regulations pertaining to each category of financial interest. Filers are encouraged to carefully read the instructions included with each schedule of the Form 700, and the accompanying Form 700 Reference Pamphlet, when determining which interests to disclose.

1. Category 1. Category 1 (statutory) filers must report the following (Form 700 schedules A-1, A-2, B, C, D and E (All schedules)):

1. Investments: direct or indirect financial interest worth $2,000 or more in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in, the city of Pismo Beach. (Ownership of less than 10% and ownership of 10% or greater to be reported separately.)

2.Real Property: direct or indirect financial interest worth $2,000 or more in in real property located the city of Pismo Beach.

3. Income, Loans, & Business Positions: the source and amount of gross income of $500 or more received during the reporting period from source(s) located in, doing business in, planning to do business in, or having done business during the previous two years in, the city of Pismo Beach; includes job titles with each reportable business entity even if no income was received during the reporting period.

4.Gift: anything with an actual or estimated fair market value of $50 or more for which the filer not provided equal or greater consideration to the donor; includes gifts accepted but not used.

5.Travel payments: advances and reimbursements for travel and related expenses, including lodging and meals.

The complete disclosure obligations for Category 1 Filers shall be in accordance with those set forth in Government Code §87200 et seq., and Title 2, California Code of Regulations §18110 et seq., including any duly adopted amendments thereto. These obligations are restated herein for only ease of reference.

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2. Category 2. Individuals exercising the duties of positions classified as Category 2 filers must report the following (Form 700 schedules A-1, A-2, B, and C):

1.Investments: direct or indirect financial interest worth $2,000 or more in any business entity (including a consulting business or other independent contracting business) that is located in, doing business in, planning to do business in, or that has done business during the previous two years in, the city of Pismo Beach. (Ownership of less than 10% and ownership of 10% or greater to be reported separately.)

2. Real Property: direct or indirect financial interest worth $2,000 or more in in real property located the city of Pismo Beach.

3.Income, Loans, & Business Positions: the source and amount of gross income of $500 or more received during the reporting period from source(s) located in, doing business in, planning to do business in, or having done business during the previous two years in, the city of Pismo Beach; includes job titles with each reportable business entity even if no income was received during the reporting period.

3.Category 3. Individuals exercising the duties of positions classified as Category 3 filers must report (Form 700 schedules: A-1, A-2, and C):

2. Income, Loans, & Business Positions: the source and amount of gross income of $500 or more received during the reporting period from source(s) located in, doing business in, planning to do business in, or having done business during the previous two years in, the city of Pismo Beach; includes job titles with each reportable business entity even if no income was received during the reporting period.

4. Category Unassigned. Individuals filing a Form 700 pursuant to Section III.B.3 Interim Filers shall file under the broadest disclosure category, equivalent to the requirements of Category 1, (refer to Section III.D.3) unless a specific, limited disclosure category has been assigned in writing.

E. Statement Filing and Retention

1. Filing of Statements
Individuals holding positions identified in Section III.C of this Code ("filers") shall be required to file FPPC Form 700 Statements of Economic Interests (“statements”) with the Pismo Beach City Clerk's Office, which will make the statements available for public inspection and reproduction in accordance with Government Code §81008.

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2. Filing Intervals and Deadlines
Unless otherwise provided by state law, Form 700s shall be filed at the following intervals, and be deemed timely only when received by the City Clerk's Office, on or before the following deadlines:
i.Type of statement: Assuming Office Statement
Deadline: Within thirty (30) days of assuming office.

Applicable to:
Individuals hired, promoted, reclassified, contracted, appointed, or elected to a filer position (date of swearing in, or commencement of duties, whichever occurs first, to constitute date of assuming office);
Individuals currently holding a position that is newly classified by revision of this Code (date of revision to constitute date of assuming office for filing purposes);
Individuals holding newly-created positions assigned a disclosure category using FPPC Form 804 (Interim Filers) (date of assignment to constitute date of assuming office).

Exception: Statutory filers who leave office and assume another statutory filer position within 45 days; Designated filers hired, promoted, reclassified, contracted or appointed to another designated filer position; Candidates for Council Member or Mayor.
ii. Type of statement: Annual Statement
Deadline: April 1 of every year (Extended to next working day if April 1 falls on a weekend or holiday).

Applicable to: All Filers.

Exception: Filers who assumed office between October 1 and December 31 of the prior year. (First filing to be made by next April 1.) iii. Type of statement: Leaving Office Statement
Deadline: Within thirty (30) days of leaving office.

Applicable to: All Filers.

Exception: Statutory filers who leave office and assume another statutory filer position within 45 days; Designated filers hired, promoted, reclassified, contracted or appointed to another designated filer position; Candidates for Council Member or Mayor.
iv.Type of statement: Candidate Statement
Deadline: No later than the final filing date for nomination papers.

Applicable to: Individuals seeking election, including re-election, to an elected City position.

Exception: Candidates who have filed an Assuming Office or Annual Statement 60 days or fewer prior to the nomination deadline.

3. Format
All filers shall be required to file Form 700s electronically using the City’s online eDisclosure filing system, or any successor system, unless an exception is authorized by the City Clerk due to extenuating circumstances. Any filer whose Form 700 is accepted in paper format due to extenuating circumstances shall have their

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filing uploaded to the City’s e-filing system as soon as practicable. Statutory filers shall not file Form 700s using the FPPC’s online eDisclosure system.

Under no circumstances shall a Form 700 be accepted for filing in any format other than the above, such as a scan of a wet-signed statement or any other form of digitally signed statement.

4. Disposition of Statements
Statements for all filers shall remain on file electronically and be duplicated for public viewing in the City's electronic document management system. Hard copy statements accepted for filing due to extenuating circumstances shall also be retained as described in Section III.E.5.

5. Retention and Destruction of Statements
Statements on file in the Clerk's Office will be retained for at least seven (7) years from the date of filing, after which time they may be permanently discarded (Government Code §81009(e)). Hard copies will be retained for two years, after which time they will be discarded provided they have been digitally archived (Government Code §81009(g)).

6. Penalty
Any filer who fails to timely file a complete Form 700 by the deadlines outlined in Section III.E.2 will be subject to a penalty of $10 per day for each day the statement is late, up to a maximum of $100, penalty to be assessed upon filing. These funds shall be deposited into the General Fund (Government Code §91013). Any filer who fails to timely file a completed Form 700 within 30 days of the missed filing deadline shall be referred to the FPPC for official enforcement action.

IV. DISQUALIFICATION
A.Disqualification, Generally
All City of Pismo Beach officials are required to disqualify themselves from making, participating in, or in any way attempting to use their official position to influence, a governmental decision in which the official knows, or has reason to know, that he or she has a financial interest. This disqualification requirement is distinct from, and in addition to, the financial interest disclosure requirements provided under state law and this Code.

Disqualifying interests may include interests that the official is not required to disclose as part of their Form 700.

At a minimum, all agency officials shall disqualify themselves from making, participating in, or influencing a governmental decision (as defined by Regulation §18704), when the official has a financial interest (as defined by Government Code §87103), which may be reasonably foreseen (as defined by Regulation §18701), to be materially affected by the decision (as materiality is defined by Regulation §18702 et seq.) in a manner that is distinguishable from its effect on the public generally (as provided in Regulation §18703), upon the official or the official's spouse and dependent children (Government Code §82029).

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Enumerated, the types of disqualifying interests provided in Government Code §87103 are:

1.Any business entity in which the public official has a direct or indirect investment worth two thousand dollars ($2,000) or more;

2.Any real property in which the public official has a direct or indirect interest worth two thousand dollars ($2,000) or more;

3.Any source of income, except gifts or loans by a commercial lending institution made in the regular course of business on terms available to the public, valued at five hundred dollars ($500) or more in the aggregate, provided or promised to the official within the 12 months preceding the decision;

4. Any business entity in which the public official is a director, officer, partner, trustee, employee, or holds any position of management;

5. Any donor of, or agent for a donor of, gift(s) provided or promised to the official within the 12 months preceding the decision, if the gift(s) meet or exceed the value set forth in Government Code §89503(f) ($500 in 2020).

B. Disqualification/Recusal of Legislative Body Members Statutory and designated filers who are members of a legislative body (as defined by Government Code §54952) who have a conflict of interest with respect to an agenda item for a noticed meeting must disqualify themselves from participation in consideration of the item.

1.Content of Announcement of Conflict
In accordance with Title 2, California Code of Regulations §18707(a)(1)(A), any official with such a disqualifying financial interest shall openly announce the nature of each financial interest giving rise to conflict(s) of interest. In announcing the nature of the conflict, the Member shall adhere to the following:
If the conflict arises from an investment, the Member shall announce the name of the business entity in which each investment is held;
If the conflict arises from a business position, the Member shall give a general description of the business activity in which the business entity is engaged as well as the name of the business entity;
If the conflict arises from real property, the Member shall announce the address or another indication of the location of the property, unless the property is the public official's principal or personal residence, in which case, the Member shall announce that the property is their personal residence; If the conflict arises from income or gifts, the Member shall identify the source; and
If the conflict arises from personal financial effect, the Member shall identify of the expense, liability, asset, or income affected.

2. Form, Timing, and Record of Identification
In accordance with Title 2, California Code of Regulations §18707 et seq., the timing and manner of announcement of a legislative body member’s conflict of interest shall depend on whether the meeting is an open or closed session, and upon whether the official is present when the item commences, or departs prior to it commencing, or arrives following its conclusion, as follows.

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i. Open Session Meetings. If the governmental decision will be made during an open session of a public meeting, the public announcement of the nature of the conflict must be made orally in full compliance with Section 1 above.

If the official is in attendance at the time of consideration of the item from which the official is disqualified, the official shall announce the nature of their conflict and their recusal following the presiding officer's announcement of the item, but before discussion has begun (2 CA CCR §18707(a)(2)). The official shall then vacate their seat, and except as set forth in Section IV.B.3, leave the room until the matter in question has been resolved (2 CA CCR §18707(a)(3)). This leave- the-room requirement shall not apply if the item from which the official is disqualified is part of the consent calendar (2 CA CCR §18707(a)(3)(B)).

If an official leaves a meeting in advance of the agenda item from which the official is disqualified, the official shall identify the item and announce the nature of their conflict prior to leaving the meeting. (2 CA CCR §18707(a)(2)) If an official first joins a meeting after the consideration of the agenda item from which the official is disqualified, the official shall identify the item and announce the nature of their conflict immediately upon joining the meeting. (2 CA CCR §18707(a)(2))
ii. Closed Session Meetings. If the governmental decision will be made during a closed session, the public announcement of the nature of the conflict must be made orally in open session before the body goes into closed session and may be limited to a declaration that the official's recusal is because of a conflict of interest under Government Code §87100. The public official must not be present when the decision is considered in closed session or knowingly obtain or review a recording or any other non-public information regarding the governmental decision. (2 CA CCR §18707(a)(4))
iii. Minute Record. Declarations of disqualification due to conflict of interest shall be made a part of the minute record for both open and closed session meetings. (§18707(a)(1)(B))

3. Participation as a Member of the Public
Pursuant to Government Code Section 87105(a)(4) and Regulation 18707(a)(3)(B), an official who is a member of a legislative body who is recused from participation in an agenda item during a noticed meeting due to conflict of interest may choose to listen from the audience with the general public, and may address the legislative body of which they are a member regarding matters related solely to his or her personal interests during the time that the general public speaks on the issue, if the official has complied with all of the above.

4.Legal Requirement for Participation
No official shall be prevented from making, or participating in the making, of any decision to the extent his or her participation is legally required (as provided in Regulation §18705) for the decision to be made.

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5. Tie Votes and Lack of Quorum
Except as may be provided by applicable law, an official who is recused due to conflict of interest may not be called upon to break a tie or form a quorum. (2 CA CCR §18707(a)(3))
C.Statutory Filers Not Limited by this Code
Disqualification requirements for statutory filers include, but are not limited to, those requirements restated herein for ease of reference; obligations for statutory filers are fully set forth in state law and regulation, including but not limited to Government Code §87105 and California Code of Regulations, Title 2, Division 6, §18707 et seq. and more broadly, Government Code §81000, et seq., Government Code §1090, et seq., and California Code of Regulations Title 2, Division 6, §18110 et seq.

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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.F

SUBJECT/TITLE:

ADOPTION OF FINDINGS RELATING TO AB 361 (VIRTUAL MEETINGS)

RECOMMENDATION:

Adopt the following findings with respect to the City of Pismo Beach’s utilization of the provisions of Assembly Bill 361, relating to Brown Act teleconferences:

1. The City Council has reconsidered the circumstances of the state of emergency created by the coronavirus pandemic.

2. The following circumstances exist:
• The state of emergency continues to directly impact the ability of the Council Members to meet safely in person.

BACKGROUND:

Assembly Bill 361 (Rivas, 2021) amends and codifies the relaxed Brown Act provisions that were originally implemented by Executive Orders of the Governor in response to the coronavirus pandemic. Among the provisions of the Brown Act that were relaxed by the Governor’s Orders were provisions for participation in legislative meetings by teleconference (phone, or virtual platform such as Zoom). Prior Brown Act provisions required that, in the event any legislative body member(s) wished to participate in a meeting remotely, the exact address of the remote location(s) be published in advance on the meeting agenda, the remote location(s) be disabled-accessible, and the public be provided the opportunity to observe the meeting and make public comment at the remote location(s).

Governor’s Orders N-29-20 and N-08-21 effectively suspended all of these provisions for health and safety reasons, making it possible for legislative body members to join a meeting virtually without the need for conducting advance noticing or providing direct public access to the location. AB 361, effective October 1, 2021, functionally codifies these provisions through January 2024, allowing agencies to avail themselves of the continued teleconferencing option if desired, provided that the legislative body makes certain findings as outlined below (Government Code Section 54953(e)(3)):

(3) If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A) The legislative body has reconsidered the circumstances of the state of emergency.
(B) Any of the following circumstances exist:
(i) The state of emergency continues to directly impact the ability of the members to meet safely in person.

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(ii) State or local officials continue to impose or recommend measures to promote social distancing.

The City Council inaugurated its use of AB 361 provisions by holding a totally teleconferenced meeting via Zoom on October 5, 2021, and then adopted the recommended findings at each of its regular meetings since October 19, 2021. Following the state’s removal of the indoor mask mandate for vaccinated individuals on February 16, 2022, the City Council transitioned to fully hybrid meetings where the legislative body members, staff, and the public may attend the meeting either in person, or virtually.

Procedural Flexibility
The circumstances surrounding the impact of the coronavirus pandemic are continually evolving, and the progression of the pandemic, along with accompanying governmental health and safety directives, are difficult to foresee. While the Council has determined to transition to hybrid City Council meetings with a certain level of in-person participation, staff recommends that the adoption of these findings, as recommended, remain on the Council’s consent agenda for the foreseeable future, until such time that the Council determines that it can no longer make the findings due to a change in circumstance.

Adoption of the recommended findings at each meeting will provide continued flexibility should the Council need or desire to make a change to its meeting practices at any point in the future. Adoption of the findings in no way commits the City to holding virtual or hybrid meeting proceedings, providing full flexibility under uncertain circumstances.

Other Provisions of AB 361
AB 361 also requires that the public be given the opportunity to address the legislative body with their comments in real time, which the City has provided continuously since the start of the pandemic, and will continue to. In addition, the bill requires that meeting proceedings be stopped in the event that the public’s virtual access to a meeting is disrupted, for example due to an internet outage. When holding a hybrid meeting with some or all members participating in person, and some or all of the public participating virtually, staff will monitor the virtual meeting to component to assure that public access is not interrupted, and pause meeting proceedings in the event of a disruption.

Conclusion and Recommendation
In order to provide both legal compliance and practical flexibility during ongoing uncertain circumstances, staff recommends that, by minute order, the City Council make the following findings with respect to the City of Pismo Beach’s utilization of the provisions of Assembly Bill 361, relating to Brown Act teleconferences:

1. The City Council has reconsidered the circumstances of the state of emergency created by the coronavirus pandemic.

2. The following circumstances exist:
• The state of emergency continues to directly impact the ability of the Council Members to meet safely in person.

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FISCAL IMPACT:

There is no fiscal impact associated with adoption of the recommended findings.

ALTERNATIVES:

1.Do not adopt the findings; provide other direction to staff.

ATTACHMENTS:

None.

Submitted by: Meeting Date: September 20, 2022
Erica Inderlied, City Clerk
City Manager Approval:

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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.A
SUBJECT/TITLE:

WATER SUPPLY UPDATE
RECOMMENDATION:

1. Receive an update on the City’s water supply; and

2.Discuss water conservation rebates and provide staff with direction on how to proceed.

BACKGROUND:

On November 16, 2021 staff provided an update to the City Council on the City’s water supply and committed to return to the Council at the second meeting every other month to provide an update on the City’s water supply.

The staff report for that meeting can be found in the Access Pismo online public records portal1 or by scanning the QR Code at right.

In response to the worsening drought, the City Council has taken actions to protect the City’s water supply and to encourage conservation. On June 1, 2021, the City Council declared a Moderately Restricted Water Supply Condition via Resolution R-2021-049, on January 18, 2022 the City Council declared a Severely Restricted Water Supply Condition via Resolution R-2022-004, and most recently, the City Council declared a Critical Water Supply Condition via Resolution R-2022-043 and adopted an urgency ordinance enacting a prohibition on the installation of natural turf.

Water Use Restrictions
Section 13.24.060 of the City’s municipal code, which defines a Critical Water Supply Condition, states “In addition to the conditions specified in Section 13.24.050, the city council may impose any water rationing requirement as it deems appropriate to protect public health, safety, welfare, comfort and convenience.” The water use restrictions in section 13.24.050 are:

A. Use of water which causes runoff onto adjacent properties, non-irrigated areas, private and public walkways, roadways, gutters, parking lots, or structures is prohibited.

B. Outdoor water use for washing vehicles, boats, paved surfaces, buildings, and other similar uses shall be attended and have hand-controlled water devices, which shut off the water immediately when not in use.

C. No water shall be used for cleaning driveways, patios, parking lots, sidewalks, streets, or other such uses except as found necessary by the city to protect the public health or safety.

D. Outdoor irrigation
1) Outdoor irrigation is prohibited between the hours of ten a.m. and four p.m. 1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=362819&dbid=0&repo=Laserfiche Council Agenda 9-20-2022 12.A-1
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2) Applying water to outdoor landscapes during and within 48 hours after measurable rainfall is prohibited.
3) Irrigation of private and public landscaping, turf areas and gardens is permitted at even-numbered addresses only on Mondays and Thursdays, and at odd-numbered addresses only on Tuesdays and Fridays. All customers are directed to use no more water than necessary to maintain landscaping.

E. Restaurants shall serve drinking water only in response to a specific request by a customer.

F. Using water in a fountain or other decorative water feature, except where the water is part of a recirculating system, is prohibited.

G. Use of potable water for compaction or dust control purposes in construction activities is prohibited.

H. Emptying and refilling swimming pools and commercial spas is prohibited except to prevent structural damage and/or to provide for the public health and safety.

In addition to the above water use restrictions the Council directed the following water use restrictions be imposed:
 Water leaks be repaired within 72 hours of notification by the City  Extending the prohibited hours for outdoor irrigation from 10 a.m. to 4 p.m. to 8 a.m. to 6 p.m.
 No new lawns to be allowed in the City

Update on Water Supply
The City’s water supply portfolio is made up of three sources, State Water, Lopez Lake Water, and groundwater from the Santa Maria Groundwater Basin (SMGB).

Santa Maria Groundwater Basin
The SMGB is an adjudicated basin, and the City of Pismo Beach has the right to extract 700 acre-fee per year (AFY) from the basin.

The NCMA TG has established a “Deep Well Index Threshold” level of 7.5 feet as a level that can induce seawater intrusion into the basin if the basin remains below that level for an extended period of time.

Previous Index Level
Data Collection Date: April 5, 2022
Deep Well Index Level (DWIL): 7.98 feet

0.48 feet above than the Deep Well Index Threshold

Most Current Index Level
Data Collection Date: July 11, 2022
DWIL: 5.34 feet

2.64 feet lower than the Deep Well Index Threshold

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The current DWIL is 2.64 feet lower than the previous level and 1.91 feet lower than one year ago (January 2021).

Lopez Lake
Lopez Lake is still operating under the Low Reservoir Response Plan (LRRP), and because the level in Lake Lopez is below 15,000 acre-feet (AF) and expected to drop below 10,000 AF, Zone 3 agencies have reduced their entitlements by 20%. The full list of recommend reductions in municipal diversions under the LRRP are shown in Table 1.

Table 1: LLRP Recommended Municipal Diversion Reduction Targets

Amount of Water In
Storage (AF)
Recommended Municipal
Diversion Reduction
Targets
Recommended
Municipal Diversion
(AFY) Targets for Pismo
20,000 0% 892.0
15,000 10% 802.8
10,000 20% 713.6
5,000 35% 579.8
1,700 100% 0

Previous Lopez Lake Level
Measurement Date: April 5, 2022
Lake Level: 14,331.6 AF

Most Current Lopez Lake Level
Measurement Date: September 9, 2022
Lake Level: 11,942.1 AF

The current lake level is 2,389.5 AF lower than it was on April 5, 2022.

Current projections show that if the area receives “average rainfall” between now and January of 2023, that storage in the lake will be approximately 10,000 AF in the beginning of December 2022, as shown in Figure 1 below.

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Figure 1: Lopez Reservoir Storage Projections

State Water
On December 1, 2021 the Department of Water Resources (DWR) set initial 2022 State Water Project (SWP) available supplies on a basis that ensures the SWP long-term water supply contractors can meet their outstanding minimum human health and safety demands for water (health and safety allocation). This allocation is based on minimum unmet water demands to meet domestic supply, fire protection, and sanitation needs during the year. These health and safety needs are determined to be not more than 55 gallons per capita per day (gpcd), consistent with the recent State Water Resources Control Board (SWRCB) emergency curtailment regulations. Agencies with stored water, or other sources of water will not receive a SWP delivery at this time.

On January 20, 2022 the DWR increased SWP deliveries to 15%, however on March 18, 2022 the deliveries were reduced to 5% This means that the City of Pismo Beach can expect to receive 57 AF of “Table A” allocation and 62 AF of Drought Buffer for a total of 117 AF of State Water. However, the County of San Luis Obispo has agreed to make its subcontractors whole, meaning the City can take delivery of 1,240 AF of State Water from the County.

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The City’s current water supplies without additional State Water from the County are shown in Table 2, below.

Table 2: Current Pismo Beach Water Supplies

Source
Full
Allocation
(AF)
Percent of
Allocation Allocation (AF)
SMGWB* 700 30% 210
State Water 1,140 5% 57
Drought Buffer** 1,240 5% 62
Stored State Water 0
Lopez Water# 892 80% 713.6
Lopez Surplus 300.8
Total 2,692 1343.4
*Santa Maria Groundwater Basin
**Drought buffer is an additional allocation of water that can only be delivered when State Water Deliveries are less than 100%. The total amount of State Water delivered including drought buffer cannot exceed 1,240 AF in a given year.
#Lopez Lake is projected to drop below 10,000 AF in December of 2022. At that time allocations from the lake would drop to 80% retroactively, therefore for planning purposes an 80% allocation is assumed.

Taking into account the State Water the County has agreed to deliver to the City of Pismo Beach, the City’s total available water supply is 2,464.4 AF for 2022.

Precipitation
The City’s two local water supplies, Lopez Lake and the Santa Maria Groundwater Basin, are highly dependent on rainfall. Calendar year 2020 saw a significant short fall in precipitation, while 2021 did see a small surplus of rain. So far 2022 has proven to be drier than both of the previous years. Rainfall data for these years is shown in Table 3, on the next page.

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Table 3: Average and Actual Rainfall from January 2020 to December 2021

Month
*Average
Rainfall
(in)
2020
Rainfall
(in)
Delta
(in)
2021
Rainfall
(in)
Delta
(in)
2022
Rainfall
(in)
Delta
(in)
Jan 3.59 0.61 -2.98 6.46 2.87 0 -3.59
Feb 3.87 0 -3.87 0.03 -3.84 0.08 -3.79
Mar 3.46 8.02 4.56 2.53 -0.93 1.08 -2.38
Apr 1.13 1.72 0.59 0 -1.13 0.49 -0.64
May 0.41 0 -0.41 0.1 -0.31 0 -0.41
Jun 0.07 0 -0.07 0 -.07 0 -0.07
Jul 0.03 0 -0.03 0.03 0 0 -0.03
Aug 0.02 0 -0.02 0 -0.02 0 -0.02
Sep 0.32 0 -0.32 0 -0.32
Oct 0.62 0.04 -0.58 1.95 1.33
Nov 1.7 0.49 -1.21 0.46 -1.24
Dec 2.57 1.21 -1.36 7.69 5.12
Total 17.79 12.09 -5.7 19.25 1.46 0.08 -10.93**
*Average rainfall from http://longrangeweather.com/
** total difference for only the months shown

Water Conservation

Rebate Programs
Currently the City offers two water conservation rebate programs, “Cash4Grass” and High-Efficiency Toilet Rebates. Currently the Cash4Grass program offers up to $0.50 per square foot of grass that is replaced with drought-tolerant landscaping or artificial turf and the toilet rebate offers up to $100 for each 3.5-gallon-per-flush or higher toilet that is replaced with a 1.28-gallon-per-flush toilet.

Since the water conservation budget was reestablished on March 16, 2021, there have been a total of 36 rebates issued at a cost of $15,289.75, which will save an estimated

6.37 AFY, for a cost of $2,400.27/AF.

At its August 16, 2022 meeting, the City Council directed staff to bring back options for increasing the amount of the Cash4Grass rebate. Currently the Cash4Grass rebate program offers $0.50 per square foot of lawn removed. Other comparable municipal programs offer between $1.00 and $3.00 per square foot of lawn removed. Locally, Arroyo Grande and Grover beach both offer $1.00, while the Metropolitan Water District in Southern California offers $3.00 per square foot. Current prices for replacing lawn with artificial turf are between $14 per square foot and $25 per square foot for a premium product.

Staff has found that in very few cases the program has been an incentive for homeowners to convert their lawn to turf, and that most of the applicants have found out about the program from their contractor who has been already hired to replace their lawn.

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The water conservation program currently has a remaining budget of $14,503.50. Of the 36 rebates issued, 21 of them have been for Cash4Grass with an average rebate of $656.65, and an average water savings of 0.22 AF/rebate.

Assuming future Cash4Grass projects are similar in size to previous projects Table 4, below, shows the fiscal impacts increased rebates.

Table 4. Impacts of Proposed Rebates
Proposed
Rebate
Amount
Average
Cost $/AF
$1.00 $1313.30 $5,931
$1.50 $1,969.95 $8,993
$2.00 $2,626.60 $11,862
$2.50 $3,283.25 $14,827
$3.00 $3,939.90 $17,793
$3.50 $4,596.55 $20,758
$4.00 $5,253.20 $23,724

Hotel Conservation
The Tourism and Events Department has been working with the Pismo Beach Hospitality Association to identify what the hotels have done to conserve water and other steps they can take to further reduce their water use. Some of the steps taken so far include:
 Installation of low-flow toilets
 Installation of low-flow sink aerators (required by Municipal Code Section

15.50.050)
 Installation of drought-tolerant landscaping
 Removal of hot tubs
 Installation of high-efficiency laundry facilities
 Installation of hot water recirculation systems
 Installation of instant hot water heaters
 Replacing glassware in guest rooms with biodegradable cups  Removal of natural turf lawns
 Displayed signage to encourage water savings
 Offering fresh towels on request only
 One hotel has abandoned its swimming pool

Other potential steps hotels can take could include:
 Removal of additional natural turf lawns

These measures have shown a positive impact to reducing the water use from local hotels. The 20 hotels with the most water consumption have reduced their water use on average by 12% from July 1, 2021 to June 30, 2022 and all hotels have reduced their water consumption by 11% during that same time period.

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Staff will continue to communicate on an ongoing basis with the Pismo Beach Hospitality Association and the lodging community to evaluate additional ways conserve water.

Conclusion and Recommendation
Staff recommends that the City Council discuss the current water conservation rebates and provide staff with direction on how to proceed.

FISCAL IMPACT:

An increase to the water conservation rebates will exhaust the current budget at a faster rate, and a reduction in water use will result in less revenue to the Water Enterprise Fund, the extent of which is unknown at this time.

ALTERNATIVES:

None
ATTACHMENTS:

None
Submitted by: Meeting Date: September 20, 2022
Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:

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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B

SUBJECT/TITLE:

ZONE 3 CONTRACT REVISIONS

RECOMMENDATION:

Adopt a Resolution authorizing the Mayor to execute an Amended and Restated Water Supply Contract with the County of San Luis Obispo Flood Control and Water Conservation District, Zone 3.

BACKGROUND:

The Lopez Water System is comprised of Lopez Dam, reservoir, water treatment facility, and distribution pipeline. The Lopez Water System supplies water to various south County municipalities via Water Supply Contracts (Contracts) within Zone 3 of the District. The existing Contracts between the District and the Zone 3 Contractors (Contractors) were restated and amended in 2000 from the terms of the original 1966 Contracts in response to the need for obtaining bonds for the state-mandated Lopez Dam Seismic Retrofit Project. The Contracts were further amended in 2010 to allow for bond refinancing.

The Contracts establish the annual water entitlements for each of the Contractors and downstream releases, which are based on the safe yield of the reservoir and the reservoir capacity. These items were not changed in the proposed Amended and Restated Contracts.

Summary of Changes
The Contractors wish to again restate and amend the Contracts to provide storage rights for each of the Contractors to store their unused entitlement, surplus water, and State Water Project water year over year in Lopez Reservoir and permit the refunding of the bonds associated with the completed Lopez Dam Seismic Retrofit Project in order to reduce the costs of debt service.

The current Contracts operate under a “use it or lose it” principle. If a Contractor does not use its annual entitlement water in a single year, then the remainder of its entitlement becomes Surplus Water available for all Contractors in the following year. The Surplus Water Pool is then made available to the contractors based upon their percentage of allocation from the project. These allocations are show in Table 1, below.

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Table 1. Lopez Lake Allocations By Agency
Agency Allocation
(AF)
Percent of
Project
Arroyo Grande 2,290 50.6%
Oceano CSD 303 6.7%
Grover Beach 800 17.7%
Pismo Beach 892 19.7%
CSA* 12 245 5.4%
Total 4,530 100%
*County Service Area

As shown in Table 1, the City of Pismo Beach has a 19.7% interest in the project, meaning that the City is entitled to only 19.7% of the Surplus Water it generates. Further, If Surplus Water is not used within the following year, it reverts back to the District, forfeiting the fixed costs paid by the Contractors associated with their full entitlement. As a result, the Contractors have little incentive to conserve or preserve water in the reservoir.

The staff from each contract agency along with District staff have been working for the last six years to develop the proposed Amended and Restated Contracts to improve management of the Lopez Water Supply and System. The proposed Contract provisions will equip the Contractors with the following management tools:
 Provide ability for each Contractor to store 100% of its unused Entitlement Water or Surplus Water to use as it sees fit, including for future droughts or water supply emergencies.
 Improve flexibility of multi-year water resource planning.  Allow for enhanced conjunctive use or water supply portfolio management.  Provide incentive for Contractors who are also State Water Sub-Contractors to import State Water and preserve water in Lopez Reservoir.  Meet the current requirements for re-financing of the bonds associated with the completed Lopez Dam Seismic Retrofit Project.

Significant Revisions
The following items were modified in the proposed Contract to incorporate language to allow Contractor storage rights, re-financing of the Lopez Dam Seismic Retrofit Project bonds, as well as clarify and modernize the terminology of the Contracts and several of their basic provisions:
 Individual Contractor storage - added (Articles 4, 7, 9, 15, 21)  Surplus Water cost calculations - modified (Article 4)  Storage of State Water Project Water through in-lieu exchange - added (Article 7)  Evaporation losses associated with stored water - added (Article 7)  Address downstream release obligations - modified (Articles 4, 7, 17)  Spill provisions for stored water - added (Articles 4, 7)  Turnout delivery capacity limitations - modified (Article 9)  Variable charges calculation changes - modified (Article 14)  Bond re-financing legal language - added (Article 34)

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Benefits of Storage
During the contract negotiations, the District retained the services of Western Hydrologics to perform modeling of the impacts to each agency’s water supply, i.e. the amount of water the agency would be able to store based on the following assumptions:
 Full Zone 3 entitlements
 State Water deliveries based upon estimated values
 State Water storage calculated based upon Department of Water Resources storage equations
 Groundwater used at 25% of each agencies adjudicated amounts

Figures 1 and 2 below show the amount of water the model predicted the City of Pismo Beach would have in storage in Lopez Lake in 2017 under the existing contract, and the proposed contract, respectively, if storage rights had been established when Lopez Dam became operational.

Figure 1. Pismo Beach Storage in Lake Lopez Under Current Contract

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Figure 2. Pismo Beach Storage in Lake Lopez Under Current Proposed Contract with Storage Rights

Figure 2 above shows that, had storage rights been established in 1969, the City of Pismo Beach would currently have a storage of just over 2,000 AF at Lopez Lake in 2017. This estimate is very conservative, due to the fact that ground water was delivered in only three years, when in fact, the City delivers approximately 300 AF of groundwater per year, and that number will double when Central Coast Blue comes online in 2025/26.

Environmental Considerations
As required by CEQA, all discretionary projects carried out by the District are reviewed to identify, avoid, reduce, and mitigate any potential environmental impacts. The Negative Declaration (ND) for this project was prepared by District Environmental Division staff with review and approval by the Environmental Division Manager. The ND determined that the proposed project will not have a significant effect on the environment and that no mitigation measures are required. The District is considered the CEQA Lead Agency and adopted the ND on August 23, 2022.

Other Agency Involvement/Impacts
The proposed Amended and Restated Contracts were developed and reviewed by a sub- committee of the Zone 3 Technical Advisory Committee, consultants, County Public Works staff, County Counsel, legal counsels of the Contractors, financial consultants, and bond counsel. The project was unanimously approved by the Zone 3 Advisory Committee in 2019 and the proposed contract form was endorsed by the Zone 3 Advisory Committee on August 11, 2022.

Both City’s attorneys and County Counsel have reviewed the resolution and the Amended and Restated Contracts and approved them as to legal form and effect.

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Conclusion and Recommendation
The revised Zone 3 contracts will allow each Zone 3 agency to better manage their water supply portfolio by establishing storage rights in Lopez Lake. This will encourage, rather than discourage, the protection of our local water supply, allow for the storage of State Water in Lopez Lake and allow the City to better leverage Central Coast Blue water once that project comes online.

Therefore, staff recommends that the City Council adopt a Resolution (Attachment 1) authorizing the Mayor to execute an Amended and Restated Water Supply Contract (Attachment 2) with the County of San Luis Obispo Flood Control and Water Conservation District.

FISCAL IMPACT:

There is no direct fiscal impact associated with the revised contract, however in the future the City will not lose unused surplus water which has already been paid for, thereby having a positive fiscal impact. The amount of this impact is unknown and difficult to estimate.

ALTERNATIVES:

1. Do not adopt the resolution and provide staff with direction on how to proceed.

ATTACHMENTS:

1. Resolution

2. Amended and Restated Water Supply Contract
Submitted by: Meeting Date: September 20, 2022
Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:

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RESOLUTION NO. R-2022-XXX

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

CALIFORNIA AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED AND

RESTATED WATER SUPPLY CONTRACT WITH THE COUNTY OF SAN LUIS OBISPO FLOOD CONTROL AND WATER CONSERVATION DISTRICT, ZONE 3 WHEREAS, the Lopez Water System supplies water to various south County municipalities via Water Supply Contracts (Contracts) within Zone 3 of the District; and WHEREAS, the Contracts establish the annual water entitlements for each of the Zone 3 Contractors (Contractors) and downstream releases, which are based on the safe yield of the reservoir and the reservoir capacity; and
WHEREAS, the existing Contracts between the District and the Contractors were restated and amended in 2000 from the terms of the original 1966 Contracts in response to the need for obtaining bonds for the state mandated Lopez Dam Seismic Retrofit Project and then further amended in 2010 to allow for bond refinancing; and WHEREAS, the Contractors wish to again restate and amend the Contracts to provide storage rights for each of the Contractors to store their unused entitlement, surplus water, and State Water Project water year-over-year in Lopez Reservoir and permit the refunding of the bonds associated with the completed Lopez Dam Seismic Retrofit Project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the Mayor to execute an Amended and Restated Water Supply Contract with the County of San Luis Obispo Flood Control and Water Conservation District, in the form presented with staff’s report of September 20, 2022.

UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 20th day of September 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk

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Attachment 1
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AMENDED AND RESTATED CONTRACT BETWEEN

SAN LUIS OBISPO COUNTY FLOOD CONTROL
AND

WATER CONSERVATION DISTRICT
AND

THE CITY OF PISMO BEACH

FOR A WATER SUPPLY

Dated as of

August 2022

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i
Table of Contents
Article 1. Definitions ...................................................................................................................... 4 Article 2. Term of Contract .......................................................................................................... 14 Article 3. Validation ...................................................................................................................... 15 Article 4. Distribution and Sales of Project Water ..................................................................... 15 (A) Legally Required Water Releases ............................................................................. 15 (B) Entitlements ............................................................................................................... 15 (C) Surplus Water Rates .................................................................................................. 16 (D) Surplus Water ............................................................................................................ 18 (E) Stored Water .............................................................................................................. 19 Article 5. Water Shortages .......................................................................................................... 19 Article 6. Completion of Seismic Remediation Improvements ................................................ 19 Article 7. Delivery and Storage of Water .................................................................................... 21 (A) Water Furnished to the Agency ................................................................................ 22 (B) Storage of Lopez Water ............................................................................................. 22 (C) Storage of State Water Project Water ...................................................................... 24 Article 8. Measurement ............................................................................................................... 26 Article 9. Time for Delivery of Project Water ............................................................................. 27 Article 10. Responsibility for Delivery and Distribution of Water Beyond Delivery Points ................................................................................................................. 28 Article 11. Operation and Maintenance of Project and Water Enterprise .............................. 29 Article 12. Water Quality ............................................................................................................. 33 Article 13. Curtailment of Delivery of Project Water for Maintenance Purposes ................... 33 Article 14. Rate and Method of Payment ................................................................................... 34 (A) Allocation of Total Project Costs and Debt Service ................................................. 34 (B) Agency Contract Payments ....................................................................................... 35 (C) Agency Credits against Contract Payments ............................................................. 36 (D) Variable Charges ........................................................................................................ 38 (E) Use by District of Total Contract Payments ............................................................. 38 Article 15. Take-or-Pay Obligation of Agency ............................................................................ 39

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ii
Article 16. Pledge; Establishment and Collection of Rates and Charges ................................. 39 Article 17. Default ........................................................................................................................ 40 Article 18. Failure to Levy, Set, or Collect Taxes, Rates, and Charges ...................................... 42 Article 19. Area Served by Agency .............................................................................................. 44 Article 20. Changes in Organization of Agency ......................................................................... 44 Article 21. Agency’s Obligations Several and Not Joint; Limited Step-Up Provisions and Reimbursement ..................................................................................................... 44 Article 22. Contracts to Be Uniform ........................................................................................... 46 Article 23. Amendments .............................................................................................................. 46 Article 24. Opinions and Determinations; Good Faith; Information to Be Provided to Zone 3 Advisory Committee ........................................................................................... 48 Article 25. Waiver of Rights ......................................................................................................... 49 Article 26. Notices ........................................................................................................................ 49 Article 27. Assignment; Pledge ................................................................................................... 50 Article 28. Inspection of Books and Records ............................................................................. 50 Article 29. Severability ................................................................................................................. 51 Article 30. Water Rights ............................................................................................................... 51 Article 31. Wheeling of Water ..................................................................................................... 51 Article 32. Execution in Counterparts ........................................................................................ 52 Article 33. Governing Law ........................................................................................................... 53 Article 34. Re-funding Related Provisions .................................................................................. 53 EXECUTION ................................................................................................................................... 55 Exhibit A ........................................................................................................................................ 57

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Page 1 of 58 ends

AMENDED AND RESTATED CONTRACT BETWEEN SAN LUIS OBISPO COUNTY

FLOOD CONTROL AND WATER CONSERVATION

DISTRICT AND THE CITY OF PISMO BEACH

FOR A WATER SUPPLY
This Amended and Restated Contract (the "Contract"), made this ___day of ___________, 2022, by and between the San Luis Obispo County Flood Control and Water Conservation District (the "District"), established under and pursuant to Chapter 1294 of the 1945 Statutes of the State of California (the "State") and the City of Pismo Beach, a public agency organized and existing under the laws of the State of California, acting pursuant to the laws of such State (the "Agency"), amends and restates that certain contract for a water supply by and between the District and the Agency, dated April 4, 1966, and as previously amended and restated and further amended thru the date hereof (collectively, the "Prior Supply Contract"), with reference to the following facts:

WITNESSETH:

WHEREAS, the District has heretofore constructed, improved and operated a public works project (the "Project," as more particularly defined below) that provides a supply of water available for use within the District; and
WHEREAS, the District has made certain repairs and improvements to the Project for public safety reasons, which improvements (collectively, the “Seismic Remediation Improvements”) were financed with the proceeds of certain obligations of the District; and WHEREAS, certain of those obligations were refinanced in 2011 and are proposed to be refinanced again to take advantage of conditions in the financial marketplace appropriate for

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a cost-effective refunding for the benefit of the taxpayers and ratepayers of the District and the Agency; and
WHEREAS, given that such obligations are outstanding, the parties have not removed or modified certain provisions of the Contract related to the Seismic Remediation Improvements even though some such provisions were performed, (e.g., the provisions related to the now-completed Seismic Remediation Improvements); and
WHEREAS, the lands and inhabitants within the jurisdiction of the Agency are in need of water provided by the Project for beneficial uses, and the District has provided water from the Project to the Agency and to the City of Arroyo Grande, the City of Grover Beach, the Oceano Community Services District, and the County of San Luis Obispo on behalf of Service Area No. 12 (collectively, the “Other Agencies,” as hereinafter defined) since 1966, pursuant to several water supply contracts, including the Prior Supply Contract as previously amended and restated and further amended thru the date hereof (collectively, the "Prior Supply Contracts"); and
WHEREAS, the District and the Agency and Other Agencies now wish to amend and restate the Prior Supply Contracts to provide the Agency and Other Agencies with storage rights in the Lopez Reservoir and to make other amendments clarifying the manner in which Project Water is to be made available to the Agency and the Other Agencies while preserving the same basic structure and obligations under the Prior Supply Contracts, including with respect to downstream releases; and

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WHEREAS, following execution of the most recently amended and restated Prior Supply Contracts in or around August 2000, the District and the Agency and Other Agencies took certain actions as reflected in the Interim Downstream Release Schedule (adopted by the Board of Supervisors via Resolution No. 2007-164) and the Low Reservoir Response Plan (Board of Supervisors adopted certain policies and procedures therein for the then drought emergency via Resolution No. 2014-377) related to the manner in which the District will manage downstream releases on an interim basis; and WHEREAS, given the generality of Article 4(A) and the authority given to the District under Article 4(B) of the Prior Supply Contract (substantively unchanged in the Contract), such actions described in the preceding recital have not necessitated and do not currently necessitate an amendment to the Prior Supply Contract as part of the Contract, and it is anticipated that the same will be true of similar future actions, including adoption of the Habitat Conservation Plan which will replace the Interim Downstream Release Schedule subject to the minor clarifying amendment contained herein; and WHEREAS, the amendments set forth herein will also aid the District in meeting its intended communitywide results of enhancing the economic, environmental and social quality of life in San Luis Obispo County; and
WHEREAS, the Agency desires to continue to contract with the District for a water supply to be for the use and benefit of the lands and inhabitants served by the Agency and for which the Agency will make payment to the District upon the terms and conditions hereinafter set forth; and

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WHEREAS, the District and the Agency wish to provide for the refinancing of certain obligations the proceeds of which were used to finance or refinance the completed Seismic Remediation Improvements.

NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by the parties hereto as follows:

Article 1. Definitions. When used in the Contract, the following terms shall have the meanings hereinafter set forth:
"Additional Projects" shall mean those capital projects to be undertaken by the District in addition to the Seismic Remediation Improvements which have the effect of (i) preserving and maintaining the Safe Yield of the Project (a "Type I Additional Project"); (ii) maintaining the quality of water provided by the Project (a "Type II Additional Project"); or (iii) any other capital project agreed to by the Agency and all of the Other Agencies (a "Type III Additional Project").
"Agency Initiated Exchange" shall mean an exchange initiated by a State Water Project Subcontractor to deliver State Water Project Water to the Project to replace Project Water requested for delivery by Other Agencies. "Calendar Quarter" shall mean each three-month period commencing on January 1, April 1, July 1, and October 1 of each year. "Calendar Year" shall mean the twelve-month period from January 1 of a calendar year to December 31 of the same calendar year, both dates inclusive. "Capital Costs" shall mean costs expended by the District at or appurtenant to the Project, for permanent improvements to the Project or equipment which is capitalizable on the books of the District.

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"Capital Reserves" shall mean those reserves established by the District for the Scheduled Maintenance of the Project or for anticipated costs of upgrade and improvements likely to be imposed by a Governmental Authority (each, an "External Requirement") in order for the District to continue to operate the Project for water supply purposes, established either (a) on a year-to-year basis by the District in its annual budgets, copies of which shall be provided to the Agency promptly following adoption, or (b) on a multi-year basis by the District through the development and promulgation to the Agency of a long-term capital improvement plan of the District; provided, however, that no Type III Additional Projects shall be funded from Capital Reserves; and provided further, that the District shall not expend any portion of Capital Reserves for any External Requirement until and unless such External Requirement becomes a final order of such Governmental Authority, not subject to further appeal.
“Continuous Spillway Flow” shall mean when the entire perimeter of the spillway crest is wetted and at least 1 acre foot of water has spilled. "Contract Payments" shall mean those payments due from the Agency to the District hereunder, as more particularly set forth in Article 14 hereof. "County Board" shall mean the Board of Supervisors of the County of San Luis Obispo, California.
"Coverage Account" shall mean the account established for the Agency either with the District or with a Depository, as provided in Article 18 hereof. "Coverage Factor" shall mean 25% of Agency Debt Service, determined in accordance with Article 14 hereof, calculated for each Fiscal Year.

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"Debt Service" shall mean, in the aggregate: (a) principal and interest (or mandatory sinking fund payments, installment or lease or similar payments due) with respect to all Tax-Exempt Obligations at the time outstanding in accordance with their terms, provided that capitalized interest funded from the proceeds of Tax-Exempt Obligations need not be taken into account; (b) annual costs of administering the Tax-Exempt Obligations, including the annual fees of any trustee or paying agent therefor, and; (c) the costs, if any, of annual credit enhancement for the Tax-Exempt Obligations; and (d) principal, interest, annual fees and reserve requirements under the SRF Loan.
"Depository" shall mean a financial institution designated for the deposit and administration of the Coverage Account of the Agency, as and when appointed in accordance with Article 18 hereof.
"District Initiated Exchange" shall mean an exchange initiated by the District to provide State Water Project Water to the Agency during a Lopez Water Treatment Plant (the “WTP”) shutdown or other incident that prevents treatment and/or delivery of Lopez Water.
"Entitlements" shall mean the quantity of water to be distributed to the Agency under the Contract and to the Other Agencies under contracts substantially similar to the Contract (collectively, the “Contracts”) with the District, as established in Article 4(B) hereof and of such other Contracts.
"Fiscal Year" shall mean the twelve-month period from July 1 of the Calendar Year to June 30 of the immediately following Calendar Year, both dates inclusive.

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“Force Majeure” shall mean any cause or causes not reasonably within the control of the party claiming relief or suspension and which, by the exercise of reasonable diligence, such party is unable to prevent or overcome, including acts of God; landslides, subsidence, lightning, earthquakes, fires, storms or storm warnings, crevasses, floods or washouts; strikes, lockouts or other industrial disturbances; acts of the public enemy, acts of terror, sabotage, wars, blockades, military action or epidemics; civil disturbances; explosions, breakage or accident to wells, machinery, equipment or lines of pipe; the necessity for testing or making repairs or alterations to wells, machinery, equipment or lines of pipe due to such an event; freezing of wells, equipment or lines of pipe; inability of any party hereto to obtain, after the exercise of reasonable diligence, necessary materials, supplies, rights of way or permits; or any action or restraint by any Governmental Authority (so long as the party claiming relief has not applied for or assisted in the application for, and has opposed where and to the extent reasonable, such action or restraint, and as long as such action or restraint is not the result of a failure by the claiming party to comply with applicable law).
"General Obligation Bonds" shall mean those certain general obligation bonds of the District, issued pursuant to authorization received from the voters of the District at the election conducted on March 7, 2000, in an aggregate principal amount of not to exceed $13,200,000, supported by a levy of ad valorem taxes throughout the District, including the 2011 G.O. Bonds and any general obligation bonds issued to refund the 2011 G.O. Bonds. "Governmental Authority" shall mean any State, federal or local governmental agency with the authority to regulate or control any aspect of the District or the Project or their operations.

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"Operating Segment," as to the Agency, shall mean the segment of the Project constructed for, and providing service directly to, the Agency, which, as of the date hereof, consists of Units A, B, C, E, and F.
"Operation and Maintenance Costs" shall mean the reasonable and necessary current expenses of maintaining, repairing, and operating the Project, including District administrative expenses directly attributable to Project function, but excluding Capital Reserves and Debt Service, all computed in accordance with generally accepted accounting principles applicable to enterprise funds of government agencies.
"Other Agency" shall mean any other water-distributing public agency of the State, which, having the legal power to do so, executes a water supply contract with the District substantially identical to the Contract, except for agency information, dates, Unit participations, Proportionate Share and Percentage Share, other than for the purpose of purchasing Surplus Water, including, as of the date hereof, the City of Arroyo Grande, the City of Grover Beach, the Oceano Community Services District, and the County of San Luis Obispo, on behalf of Service Area No. 12.
"Percentage Share" shall mean the Agency's aggregate attributed share, by percentage, of charges for Operation and Maintenance Costs and Capital Reserves for any given Water Year for each respective Unit, as compared to all the charges for Operation and Maintenance Costs and Capital Reserves attributable to each such Unit levied against the Agency and all Other Agencies, and as specified for the Agency below:

Unit A 17.66 %
Unit B 17.66 %

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Unit C 41.30 %
Unit D 0.00 %
Unit E 70.36 %
Unit F 54.27 %
Unit G 0.00 %
Unit H 0.00 %
Unit I 0.00 %
Unit J 0.00 %

"Project" shall mean (A) the 1965 Zone 3 Project described in Resolution No. 377-65 and Ordinance No. 813 of the District, adopted August 17, 1965, consisting of the following works and improvements: (i) Lopez Dam and Reservoir; (ii) Lopez Dam-Arroyo Grande Conduit System; (iii) Arroyo Grande-Avila Conduit System; (iv) Arroyo Grande-Oceano Conduit System; (v) water treatment plant; (vi) terminal reservoir; (vii) any new construction, reconstruction or replacement of these works and improvements, including, without limitation, the previously constructed Seismic Remediation Improvements, and (viii) all land, easements, Rights-of-Way, pumping plants, pipes, valves, fittings, machinery and other property necessary for any of the foregoing. “Project Water” or “Lopez Water” shall mean water made available from the Project. “Proportionate Share" shall mean the percent of the total Entitlements available to the Agency, as compared to the aggregate of all Entitlements given to the Agency and all Other Agencies hereunder and under all Contracts in any given Water Year, as set forth in Article 4(B) hereof.

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"Rates and Charges" shall mean the rates and charges imposed and collected by the Agency for the provision of water services by its Water Enterprise, and/or, if the Agency shall instead have levied special taxes as described in Article 14(C)(1)(b) below, such special taxes. "Recreational Budget Transfers" shall mean the annual transfer ordered by action of the County Board from revenues earned from recreational uses of the Project, based on the percentage of recreational usage, initially established under the terms of County Board Resolution No. 2000-133, adopted on April 4, 2000.
“Refunding Bonds” shall mean those certain bonds executed and delivered by or on behalf of the District, refunding any General Obligation Bonds and/or Tax-Exempt Obligations of the District (together, the “Prior Obligations”), the proceeds of which are applied: (i) to refinance or retire the Prior Obligations of the District and (ii) to pay any costs of issuance in connection therewith. "Safe Yield" shall mean the safe yield of the Project, calculated, and established from time to time in accordance with the provisions of Article 4 hereof, being 8,730 acre-feet of water as of the date hereof.
"Scheduled Maintenance" shall mean the maintenance tasks for the Project which are required to be accomplished less frequently than annually, a portion of the cost of which is set aside in each annual budget of the District in anticipation of such requirement.
"Seismic Remediation Improvements" shall mean those certain improvements, more particularly described on Exhibit A hereto, to the 1965 Zone 3 Project required by State mandate, and necessary in order for the Project to continue to operate as a supplier of water to the District, the Agency and the Other Agencies.

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"SRF Loan" shall mean the Funding Agreement (Contract No. SRF02CX138) between the State Department of Water Resources, acting on behalf of the State Department of Health Services, and the District, as heretofore amended and as it may be further amended from time to time.
"State Water Project Water" shall mean water made available to the Agency or Other Agencies (each a “State Water Project Subcontractor”) through a separate contract with the District for water from the California State Water Project (the “State Water Project”).
“Stored Lopez Water” shall mean Entitlement or Surplus Water that the Agency or Other Agencies chooses not to take delivery of and put into storage at the end of the Water Year.
“Stored State Water Project Water” shall mean water credited to the Agency or Other Agencies through initiation of an Agency Initiated Exchange. "Surplus Water" shall mean the water available from the Project following distributions of water described in Article 4, paragraphs (A), (B), and (C) hereof. "Tax-Exempt Obligations" shall mean those certain obligations executed and delivered by or on behalf of the District, representing and evidencing interests of the owners thereof in certain installment payments made by the District for the acquisition of the Project, whose proceeds were used to finance, refinance or reimburse the costs of Seismic Remediation Improvements, in an aggregate principal amount of not to exceed the net amount, following the application of proceeds of sale of the General Obligation Bonds, required to complete the Seismic Remediation Improvements pursuant to State mandate and the District's competitive bid process for such improvements. The term

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“Tax-Exempt Obligations” shall also include any refunding bonds issued in order to refund (i) such Tax-Exempt Obligations or (ii) such refunding Tax-Exempt Obligations. "Total Contract Payments" shall mean all of the payments due from the Agency and the Other Agencies pursuant to Article 14 hereof and the same Article of the other Contracts.
"Total Project Costs" shall mean, for any given Water Year, the aggregate amount necessary to provide for (i) Operation and Maintenance Costs; (ii) Debt Service; and (iii) Capital Reserves, as calculated by the District in accordance with Article 14 hereof and noticed to the Agency and the Other Agencies.
“2011 G.O. Bonds” shall mean San Luis Obispo County Flood Control and Water Conservation District, Zone 3 General Obligation Refunding Bonds, 2000 Election, 2011 Series A, originally issued in the aggregate principal amount of $10,760,000. "Unit" shall mean those facilities which collectively make up the Project, delineated as follows:
(A) "Unit A" shall consist of the Lopez Dam and Reservoir, including access roads, fish trapping facilities and outlet works, all expenses of executing and delivering the Tax-Exempt Obligations, all moneys necessary to fund interest with respect to the Tax-Exempt Obligations prior to receipt of the first payments under the Contract and the other Contracts, and all engineering and legal fees for the entire Project. (B) "Unit B" shall consist of the terminal reservoir, a pumping plant and bypass conduit, the water treatment plant and the Lopez Dam-Arroyo Grande Conduit System. The "Lopez Dam-Arroyo Grande Conduit System" shall be defined as that portion of the pipeline conduit and all appurtenances from the Lopez Dam outlet works to and including a bifurcation structure located at the intersection of the El Camino Real and Brisco Road in Arroyo Grande.
(C) "Unit C" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the bifurcation structure which is a part of Unit B to the intersection of the El Camino Real and Oak Park Blvd. in Grover Beach.

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(D) "Unit D" shall consist of the Arroyo Grande-Oceano Conduit System. The "Arroyo Grande-Oceano Conduit System" shall be defined as that portion of the pipeline conduit and all appurtenances from the south end of the Lopez Dam-Arroyo Grande Conduit System to a connection to the Oceano water system at the intersection of Lancaster Drive and South Elm Street in Arroyo Grande.
(E) "Unit E" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit C to the intersection of El Camino Real with Vista del Mar in Shell Beach.
(F) "Unit F" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit E to the intersection of Shell Beach Road with El Portal Drive in Pismo Beach.
(G) "Unit G" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit F to the intersection of Avila Beach Drive (San Luis Obispo County Road No. 2070) with Ontario Road (San Luis Obispo County Road No. 2066).
(H) "Unit H" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit G to the intersection of First Street and San Juan Street in the community of Avila Beach.
(I) "Unit I" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit H to the Port San Luis Harbor District Tank site. (J) "Unit J" shall consist of that portion of the Arroyo Grande-Avila Conduit System consisting of the pipeline conduit and all appurtenances from the west end of Unit G to a storage tank site at an approximate elevation of 260 feet above sea level located at a point approximately 1,300 feet westerly of the center line of Highway 101 and 1,500 feet southerly of San Luis Bay Drive (San Luis Obispo County Road No. 2068). “Variable Charges” shall mean Project pumping energy and chemical charges. "Water Enterprise" shall mean the water system operated and to be operated by the Agency for sales of water to the general public within its jurisdiction.

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“Water Year” shall mean the twelve-month period from April 1 of a Calendar Year to March 31 of the immediately following Calendar Year, both dates inclusive. “Zone 3” shall mean the area comprising Zone 3 of the District. “Zone 3 Advisory Committee” shall mean that certain advisory committee comprised of representatives of the District, the Agency and each of the Other Agencies, appointed by the District, the Agency and the Other Agencies, from time to time and meeting at scheduled intervals to advise the District on matters relating to the Project, the Contract and the other Contracts.

Article 2. Term of Contract. The Contract shall become effective and shall replace and supersede the Prior Water Supply Contract as of the date that all of the following have occurred: (a) the District and the Agency have executed the Contract; (b) the District and each of the Other Agencies have executed a like amended and restated Contract and (c) the District has received the written confirmation from the rating agency or agencies and the written consent from the bond insurance provider in accordance with Article 23 of the Prior Supply Contracts. The Contract shall remain in effect through the date which is six (6) months following the repayment of the final Debt Service payments of any debt obligation outstanding; provided, however, that the term of the Contract shall automatically be extended for additional periods of five (5) years from the scheduled expiration date hereof, so long as the Agency has not, by the date which is 180 days prior to the scheduled expiration date hereof, given written notice to the District to the effect that it wishes to terminate the Contract. The Agency understands and agrees that each of the Other Agencies has the right to terminate its Contract on similar terms and that, if any Other Agency shall so elect to terminate its Contract, the Entitlement and

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corresponding obligations of such Other Agency shall be apportioned among the Agency and the remaining Other Agencies, based upon a recalculation of Proportionate Share or Percentage Share, based, where appropriate, on their access to and use of Units, or as otherwise unanimously agreed by the Agency (unless the Agency shall have withdrawn), all remaining Other Agencies and the District.

Article 3. Validation. Either the District, the Agency, or any Other Agency may file and diligently prosecute to a final decree in a court of competent jurisdiction a proceeding in mandamus or other appropriate proceeding or action for the judicial examination, approval, and confirmation of any proceedings had for the organization of the District and for the participation of the Agency in projects hereunder, or for the validation of the Installment Purchase Agreement which is the basis for the Tax-Exempt Obligations, or the proceedings of the governing body of the Agency leading up to and including the making of the Contract and the validity of the provisions thereof and hereof.

Article 4. Distribution and Sale of Project Water. The following provisions govern the distribution of water from the Project to the Agency, to the Other Agencies and for other purposes, in the priorities set forth below:
(A) Legally Required Water Releases. The parties hereto acknowledge and agree that Project Water is subject to certain releases and minimum storage requirements imposed by law which are not affected by the terms hereof.

Without limiting the foregoing, the parties specifically acknowledge and agree that releases by the District pursuant to any Habitat Conservation Plan or related implementing agreement constitute release requirements imposed by law for purposes of the priorities established herein.

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(B) Entitlements. Subject to the foregoing, and except as otherwise provided in Article 5, the District shall make available to the Agency in each Water Year, to the extent possible, 800 acre-feet of Project Water. The District will, in order to satisfy this entitlement and the entitlements of Other Agencies, set aside from the Safe Yield the total of 4,530 acre-feet of Project Water which will be distributed to the Agency and the Other Agencies, as established under Article 4(B) hereof and of their respective Contracts. The Agency's Entitlement comprises 17.66 percent of the aggregate Entitlements awarded under all the Contracts, including the Contract. Such percentage comprises the Agency's Proportionate Share hereunder. Notwithstanding the foregoing, the aggregate Entitlements available under the Contract and under the other Contracts may be reduced, following written notice given to the Agency from the District, due to (1) permanent or long-term restrictions imposed upon the District caused by (i) extreme changes in long-term meteorological patterns that reduce the Safe Yield assumptions for the Project or (ii) multi-year drought conditions; or (2) temporary or short-term limitations based upon (i) reduced ability of the Project either to treat or distribute water because of a Force Majeure event, (ii) drought conditions or (iii) water quality standards which reduce the safe, treated output of the Project at the time. (C) Surplus Water Rates. Surplus Water shall be the remaining portion of the annual Safe Yield of the Project after distribution of Entitlements described in paragraph (B), downstream releases, water described in paragraph (A), and including any undelivered Entitlement put into storage on behalf of the Agency and Other Agencies in that Water Year. Surplus Water shall be declared by the District on or about May 1st of

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each year after end of year water accounting has been completed. Surplus Water shall be sold in accordance with the provisions of this paragraph. (1) Surplus Water shall first be offered by the District to the Agency and the Other Agencies in accordance with their Proportionate Shares.

The cost of Surplus Water shall be based on the Variable Charges as described in Article 14(D) below in any given Fiscal Year. The cost of Surplus Water shall be paid by the Agency in the same Fiscal Year as the Surplus Water is delivered to the Agency. Neither the Agency nor any Other Agency shall resell Surplus Water at any time to third parties, without the prior written consent of all Other Agencies.
(2) The District may offer to sell and deliver any Surplus Water not requested by the Agency or the Other Agencies hereunder to any other prospective purchaser without right of renewal, in a manner and at prices which will return to the District the largest net revenue practicable, but in no event at prices less than those at which such Surplus Water is delivered to the Agency, unless the Agency is first allowed another opportunity to request such Surplus Water, and in each case, attempting to recapture the Operation and Maintenance Costs, the Variable Costs, if any, and Debt Service attributable to the volume of Surplus Water actually purchased by such third parties, at the highest price the market will then bear.
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the Agency and the Other Agencies, based on the Percentage Shares of the Agency and each Other Agency.
(D) Surplus Water. Surplus Water shall be the remaining portion of the annual Safe Yield of the Project after distribution of Entitlements described in paragraph (B), downstream releases, water described in paragraph (A) and including any undelivered Entitlement put into storage on behalf of the Agency and Other Agencies in that Water Year.

Surplus Water shall be calculated for each Water Year by subtracting from the Safe Yield of the Project an amount equal to the sum of the quantity of water released downstream during the immediately prior Water Year, which shall not exceed 4,200 acre feet unless legally required by Article 4(A) hereof, the quantity of Entitlement water delivered to the Agency and the Other Agencies during the immediately prior Water Year, and the quantity of undelivered Entitlement water that the Agency and Other Agencies put into storage in Lopez Reservoir, but excluding downstream releases and Entitlement deliveries that occurred during the period of time that the District determined that continuous spillway flow was occurring at Lopez Dam. As provided in Article 7(B) and 7(C), Project Water that was put into storage in Lopez Reservoir prior to the District’s determination that a continuous spillway flow was occurring at Lopez Dam may be subject to losses.

The District shall notify the Agency of the total amount of Surplus Water available for the current Water Year, and once so declared by the District, said amount shall not be changed by the District without first obtaining the consent of the Agency and all Other Agencies.

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Surplus Water offered to the Agency will be delivered to Agency in the manner provided for the delivery of its Entitlement and to the extent that all of said Surplus Water offered to the Agency is not so delivered by the end of the Water Year in question or put into storage in Lopez Reservoir for the Agency, then such undelivered amount shall revert to the District and shall not thereafter be available to Agency.
(E) Stored Water. The Agency may choose to take delivery of its previously stored water regardless of whether the current year’s Entitlement or available Surplus Water has been delivered. Water put into storage by the Agency shall be subject to losses as outlined in Article 4 and Article 7.

Article 5. Water Shortages. From time to time during the term of the Contract, there may occur a shortage in the quantity of Project Water available for delivery to the Agency by the District under the Contract, including, without limitation, for the reasons enumerated in Article 4(B). In such event, no liability shall accrue against the District or any of its officers, agents or employees for any damage, direct or indirect, arising from a shortage on account of any reason beyond the control of the District. In any Water Year during which such a shortage has caused a reduction as described in said Article 4(B), so that the total quantity of the Entitlements available for the District to distribute is less than the total established in said Article 4(B), following giving of notice by the District as provided in Article 4(B), the Proportionate Share of the Agency and each Other Agency under its Contract shall be applied to such reduced amount in determining the volume of Project Water to be delivered to the Agency and such Other Agencies in such Water Year.

Article 6. Completion of Seismic Remediation Improvements. The Agency understands and acknowledges that the District intends to commence and complete the Seismic Remediation

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Improvements with due diligence; in order to finance the construction of the Seismic Remediation Improvements, the Agency understands and agrees that the District will have to cause the execution and delivery of the Tax-Exempt Obligations on terms and conditions favorable to the District, the Agency and the Other Agencies, to be established at the time of sale of the Tax-Exempt Obligations. In particular, the Agency covenants and agrees that:
(A) The District shall contract for the public works comprising the Seismic Remediation Improvements on such terms as the District, in its sound business judgment, may deem in the best interests of the District, the Agency and the Other Agencies, but only following consideration by the Zone 3 Advisory Committee of any such contracts in excess of the minimum standards for contracts of a similar type then mandated for formal approval by the County Board (the "County Standards"); provided, however, that no such consideration shall be required as a precondition to any such action in response to an emergency; and
(B) The District may engage, but only (except in an emergency, in which case no such consideration shall be required as a precondition) following consideration by the Zone 3 Advisory Committee of any such contracts in excess of the County Standards, contractors and consultants, including, without limitation, environmental specialists, engineers, financial consultants, underwriters, attorneys and accountants (collectively, the "Consultants"), as may be necessary in order to plan and construct the Seismic Remediation Improvements and to issue and sell the Tax-Exempt Obligations, on such terms and conditions as the District shall determine; provided, however, that the District and the Agency hereby covenant and agree that all such contracts already in place as of the effective date of this Contract shall be deemed

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noticed to and considered by the Zone 3 Advisory Committee; and provided further, that no such consideration shall be required as a precondition to any such action in response to an emergency; and
(C) The District may authorize and sell at either public or private sale, or cause to be executed and delivered, the Tax-Exempt Obligations at any time following the effective date hereof, to provide for the financing or reimbursement to the District of the costs of the Seismic Remediation Improvements, to establish a reserve fund for the Tax-Exempt Obligations and to pay the costs of delivery thereof; and (D) The Agency will execute and provide such instruments, certificates and agreements as may be necessary in order for the District to deliver the Tax-Exempt Obligations, including, without limitation, information for inclusion in the disclosure document for the Tax-Exempt Obligations and a continuing disclosure agreement to permit compliance with Rule 15c2-12 of the Securities and Exchange Commission, respecting the Agency's financial condition and operations; and (E) The Agency will cooperate with the District and the Consultants in connection with the planning and construction of the Seismic Remediation Improvements and the authorization and delivery of the Tax-Exempt Obligations.

The District covenants and agrees to use its best efforts to complete the Seismic Remediation Improvements by a date no later than June 30, 2002.

Article 7. Delivery and Storage of Water. All water to be furnished to the Agency pursuant to this Contract shall be furnished to the Agency as provided by Article 7(A) or put into or delivered from storage in Lopez Reservoir as provided in Article 7(B) and 7(C).

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(A) Water furnished to the Agency shall be delivered to the Agency at the intersection of Highway 101, Frontage Road, and Vista Del Mar Street in the City of Pismo Beach. If the Agency shall desire at any time during the term of the Contract to change the address at which it receives water from the District hereunder, or to install additional points of delivery, it may do so if it furnishes all funds necessary to cover any District expenses involved, or if it undertakes the construction of the necessary conduits and appurtenances at its own expense; provided that the Agency shall not undertake any such construction until it has first obtained District approval of the plans and specifications for such work. Upon the receipt of a request for a change in or addition to the place of delivery of water thereunder, and the deposit of any required funds as set forth in this paragraph, the District shall, if it has elected to perform its own construction of conduits and appurtenances, diligently proceed to construct the same. (B) Storage of Lopez Water. The Agency may choose to put any water into storage in Lopez Reservoir that the Agency otherwise has the right to be furnished pursuant to Article 7(A), including Entitlements as provided by Article 4(B) and Surplus Water as provided in Article 4(D). Stored Lopez Water in Lopez Reservoir is subject to the following:
(1) The Agency must comply with the requirements of Article 9. (2) Water put into storage in Lopez Reservoir by the Agency is subject to the following losses:
(a) Evaporation losses shall be calculated by the District and shall reduce the Agency's water in storage in Lopez Reservoir by calculating the amount of water lost from evaporation due to the additional lake surface area associated with the water in storage annually on a monthly timestep.

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Evaporation losses are applied proportional to each Agency’s amount of water in storage.
(b) Water in storage in Lopez Reservoir shall be lost in the event the District determines that continuous spillway flow occurs at Lopez Dam that equals or exceeds the combined amount of water in storage in Lopez Reservoir on behalf of the Agency and Other Agencies. If the District determines that the spillway flow was less than the combined storage, then the water in storage in Lopez Reservoir lost by the Agency and Other Agencies shall be proportioned based on their respective amounts in storage in Lopez Reservoir and calculated such that the total water lost by the Agency and Other Agencies equals the District's determination of spillway flow. (c) Water in storage in Lopez Reservoir may be lost pursuant to Article 4(A) except that no water shall be lost from storage in Lopez Reservoir until after Entitlements made available to the Agency and Other Agencies pursuant to Article 4(B) equals zero and Surplus Water available to the Agency and Other Agencies pursuant to Article 4(D) equals zero. In such an event, the amount of water in storage in Lopez Reservoir that will be lost by the Agency and Other Agencies shall be proportioned based on Entitlements until each Agency's water in storage in Lopez Reservoir is reduced to zero or the required releases pursuant to Article 4(A) have been met, whichever occurs sooner.
(d) Water in storage in Lopez Reservoir may be lost because of a Force Majeure event. The water in storage in Lopez Reservoir lost by the

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Agency and Other Agencies shall be proportioned based on their respective amounts in storage in Lopez Reservoir.
(3) Stored Lopez Water may be transferred amongst the Agency and Other Agencies subject to provision of prior written authorization to the District by each Agency involved in the transfer.
(C) Storage of State Water Project Water. The Agency and Other Agencies that have the right to "wheel" State Water Project Water pursuant to Article 31 (State Water Project Subcontractors) shall have the right to increase the Project Water that they put into storage in Lopez Reservoir subject to the terms and conditions set forth herein. State Water Project Water put into storage in Lopez Reservoir shall be accomplished by way of exchanging the delivery of Project Water that would otherwise be furnished by the District to Other Agencies pursuant to Articles 4(B) and 4(D) with State Water Project Water provided by the Agency. There are two types of exchanges, namely District Initiated Exchanges and Agency Initiated Exchanges.
(1) District Initiated Exchanges - In consideration for the right to exchange Project Water with State Water Project Water, the Agency hereby grants to the District the right to exchange its State Water Project Water (if Agency is a State Water Project Subcontractor) with Project Water and deliver such exchanged water to Other Agencies during the "Curtailment of Delivery of Project Water for Maintenance Purposes" as provided in Article 13. Any exchange undertaken pursuant to Article 7(C)(1) shall be construed as an Agency exchange of State Water Project Water with Other Agencies and shall not be construed as a District sale or delivery of State Water Project Water to Other Agencies. Prior to initiating a District Initiated Exchange hereunder

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during Article 13 curtailments, Other Agencies must first request the District to effectuate the exchange and must agree to pay the Variable Costs of delivering the State Water Project Water to the Lopez system. Such District Initiated Exchanges are limited to the availability of State Water Project Water from the State Water Project Subcontractors and shall be proportioned between the State Water Project Subcontractors based on their available State Water Project Water. The quantities of water exchanged shall increase Project Water in storage for State Water Project Subcontractors and the District shall separately designate that water as "District Initiated Exchanged Water." Subsequent to any exchange hereunder, the District shall reverse the exchange as soon as possible with deliveries requested by State Water Project Subcontractors for State Water Project Water and the District shall reimburse the Other Agencies for the Variable Costs previously paid. The District Initiated Exchanged Water is not subject to evaporation losses. (2) Agency Initiated Exchanges. Water exchanged as a result of initiation by a State Water Project Water Subcontractor pursuant to this Article 7(C)(2) shall be separately designated by the District as Stored State Water Project Water and subject to the following additional terms:
(a) Evaporation losses shall be calculated by the District pursuant to Article 7(B)(2)(a).
(b) Stored State Water Project Water in Lopez Reservoir shall be lost in the event that the District determines that Continuous Spillway Flow occurs at Lopez Dam prior to the loss of any Project Water stored pursuant to Article 7(B). Water that has been put into

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storage in Lopez Reservoir by the District under its authority independent from the terms of the Contract shall be lost prior to losses of Agency Initiated Exchanged Water. In the event the District determines that the spillway flow reduces Stored State Water Project Water in storage in Lopez Reservoir, then the losses between State Water Project Subcontractors shall be proportioned based on their respective amounts of Stored State Water Project Water in Lopez Reservoir.
(c) Stored State Water Project Water in Lopez Reservoir is not subject to losses pursuant to Article 4(A).
(d) Stored State Water Project Water may be lost because of a Force Majeure event.
(e) Stored State Water Project Water may be transferred amongst the Agency and Other Agencies subject to the provision of prior written authorization to the District by each Agency involved in the transfer.

Article 8. Measurement. All water furnished pursuant to the Contract shall be measured by the District at each point of delivery established pursuant to Article 7 hereof with equipment satisfactory to the District and the Agency. Said equipment shall be installed, operated and maintained by the District. All determinations relative to the measuring of Project Water shall be made by the District and, upon request of the Agency, the accuracy of such measurement shall be investigated by the District and certified to the Agency in writing. Any error appearing in the course of such investigation and certification shall be

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cause for an adjustment by the District. The Agency may inspect any such measuring equipment for the purpose of determining the accuracy thereof, at its own expense at reasonable times upon reasonable notice. The District will install, or cause to be installed, backflow prevention devices in connection with such measuring equipment to prevent Project Water delivered to the Agency or to the Other Agencies from returning to the District's lines.

Article 9. Time for Delivery of Project Water. The amounts, times, and rates of delivery of Project Water to the Agency during any Water Year shall be in accordance with a water delivery schedule determined in the following manner:
(A) On or before October 1 of each Calendar Year, the Agency shall submit in writing to the District a preliminary water delivery schedule subject to the provisions of this Article and Article 4, indicating the amounts of Entitlement, and Agency Stored Lopez and Agency Stored State Water Project Water desired by the Agency during each month of the succeeding Water Year that is anticipated to be delivered to the address identified in Article 7.
(B) Upon receipt of a preliminary schedule, the District shall review and after consultation with the Agency shall make such modifications as are necessary to ensure that the amounts, times and rates of delivery to the Agency will be consistent with the available supply of water from the Project, considering the current delivery schedules of all Other Agencies.

On or before January 1 of each Calendar Year, the District shall determine and furnish to the Agency a water delivery schedule for the next succeeding Water Year, which shall show the amounts of water to be delivered to the Agency during each month of that Water Year.

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(C) Changes to a water delivery schedule, requested transfers, or Agency Initiated Exchanges may be implemented by the District upon the Agency's written request, and subject to (i) the circumstances described in Article 4(B) hereof and (ii) the pre-existing requirements of the District under the water delivery schedules with the Other Agencies for the same period of time. Proposed amendments to such schedules shall be submitted by the Agency on the first day of the month and will become effective the first day of the following month and shall be subject to review and modification by the District in the same manner as the preliminary water schedule described in paragraph (B) above. (D) In no event shall the District be obligated to deliver Project Water to the Agency at a combined instantaneous rate of flow exceeding 1.15 cubic feet per second.

However, if there is additional available capacity, the District shall make reasonable efforts to deliver the amount of water an Agency requests, taking into account Project capacity and Other Agency requests as well as pro rata shares of the Safe Yield.

Article 10. Responsibility for Delivery and Distribution of Water Beyond Delivery Points.

After Project Water has passed the delivery points established in accordance with Article 7 above, neither the District nor its officers, agents or employees shall be liable for the control, carriage, handling, use, disposal, distribution or changes occurring in the quality of such water supplied to the Agency or for a claim of damages of any nature whatsoever, including but not limited to property damage, personal injury or death, arising out of or connected with the control, carriage, handling, use, disposal, distribution or changes occurring in the quality of such water beyond said delivery points, and the Agency shall defend, indemnify and hold harmless the District and its officers, agents and employees

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from and against any such damages or claims of damage, except such damages or claims of damages caused by the sole proven negligence or willful misconduct of the District.

Article 11. Operation and Maintenance of Project and Water Enterprise. The parties hereto acknowledge and agree that the primary goal of the District shall be to maximize deliveries of Project Water consistent with multi-year water resource planning, subject to Safe Yield and cost considerations, as to which the District shall be expected to exercise sound business judgment.
(A) The District covenants and agrees that it will operate and maintain the Project as improved by the Seismic Remediation Improvements in accordance with all governmental laws, ordinances, approvals, rules, regulations and requirements, including, without limitation, such zoning, sanitary, pollution, environmental and safety ordinances and laws and such rules and regulations thereunder as may be binding upon the District.

The District further covenants and agrees that it will maintain and operate the Project and all pumps, machinery, conduits, apparatus, fixtures, fittings and equipment of any kind in or that shall be placed in any building or structure or made a part of any conduit or easement now or hereafter at any time constituting part of the Project in good repair, working order and condition, and that it will from time to time inspect and test all Project facilities against then-current water supply industry standards, and to pursue or recommend all necessary and proper replacements, repairs, renewals and improvements thereto. (B) In order to satisfy its covenants set forth in this Article, the District shall determine, prior to each Water Year, the amount of Capital Reserves necessary for the Project for the upcoming Water Year, shall prepare its draft annual budget by no later than March 1 to reflect such Capital Reserves, shall provide copies of each such budget to the Zone 3 Advisory

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Committee, the Agency and the Other Agencies for review and comment, prior to its distribution to and consideration by the County Board, and shall, if deemed necessary or advisable, develop and promulgate to the Agency and the Other Agencies a multi-year improvement plan for the Project, reflecting the annual requirements for Capital Reserves. (C) At any time, or from time to time, without the consent of the Agency or any Other Agency, the District shall be entitled to undertake the construction or equipping of any Additional Project or other improvements to or repairs of the Project not comprising a Type III Additional Project, but only if (i) it shall determine that such Additional Project, improvements or repairs are necessary in order to keep the Project functioning at the levels and to maintain the water supply at the quality required hereunder and under the other Contracts; or (ii) competent Governmental Authority shall direct such Additional Projects, improvements or repairs; provided that, before an Additional Project other than a Type III Additional Project, improvements or repairs may be ordered pursuant to direction of competent Governmental Authority, the District, the Agency and the Other Agencies shall be afforded notice thereof and the opportunity to oppose the imposition of such requirement before a court of competent jurisdiction; only if a final judgment is thereafter rendered, in favor of such Additional Project, improvements or repairs, or if no such opposition is filed, shall an Additional Project other than a Type III Additional Project, improvements or repairs be constructed or made pursuant to this clause (ii). Emergency repairs to the Project may, notwithstanding the above, be made by the District without the requirement of notice and opportunity to oppose described herein. It is the intention of the parties hereto that the District shall, as and when necessary, be deemed to assign its rights to pursue opposition to the creation of any obligations hereunder by a Governmental Authority to the Agency and/or the Other Agencies, as their interests may

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appear, in recognition of the status of the Agency and the Other Agencies as third-party beneficiaries hereof and real parties in interest. No preexisting right of the Agency or the Other Agencies to pursue actions administratively, by law or in equity associated with the construction, maintenance and operation of the Project shall be abrogated by the Agency or such Other Agencies by its or their execution of the Contract or the other Contracts. (D) For its part, the Agency covenants and agrees:
(1) not to sell, lease or otherwise dispose of its Water Enterprise or any part thereof essential to the proper operation thereof or to the earning or collection of the gross revenues of the Water Enterprise, nor to enter into any agreement or lease which would impair the operation of the Water Enterprise or any part thereof necessary in order to secure adequate revenues for the payment of amounts due under the Contract; provided, however, that any real or personal property which has become nonfunctional or obsolete or which is not needed for the efficient operation of the Water Enterprise may be sold or disposed of if such disposition will not have the effect of reducing revenues of the Water Enterprise below the levels required under the Contract;
(2) to maintain and preserve the Water Enterprise in good repair and working order at all times, operate the same in an efficient and economical manner and pay all operation and maintenance costs of the Water Enterprise as they become due;
(3) not later than the first day of each Fiscal Year, to adopt and make available to the District a budget approved by its governing board setting forth the amounts budgeted to be paid under the Contract;

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(4) to comply with, keep, observe and perform all agreements, conditions, covenants and terms, express or implied, required to be performed by it contained in all contracts for the use of the Water Enterprise and all other contracts affecting or involving the Water Enterprise to the extent that the Agency is a party thereto;
(5) not to create or allow any lien on or payment from the revenues of the Water Enterprise or any part thereof prior to or superior to its obligation to pay amounts payable under the Contract;
(6) to procure and maintain such insurance relating to the Water Enterprise which it shall deem advisable or necessary to protect its interests, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with similar water enterprises in the State; provided, that the Agency shall not be required to procure or maintain any such insurance unless such insurance is commercially available at reasonable cost; and provided further, that any such insurance may be maintained under a self-insurance program, so long as such self-insurance program is maintained in accordance with standards and in such amounts as are then usually maintained for similar water enterprises in the State;
(7) to pay and discharge all taxes, assessments and others governmental charges which may hereafter be lawfully imposed upon the Water Enterprise or any part thereof when the same shall become due; duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Water Enterprise, that are not being contested in good faith; and

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(8) if all or any material part of the Water Enterprise shall be taken by eminent domain proceedings, or if the Agency receives any insurance proceeds resulting from a casualty loss to any material portion of the Water Enterprise, the proceeds thereof shall be used to construct or install replacements for the condemned or destroyed components of the Water Enterprise or to prepay the Agency's share of Debt Service under the Contract.

Article 12. Water Quality. All water delivered to the Agency under the Contract shall meet all State and San Luis Obispo County minimum water quality standards for water for domestic use.

Article 13. Curtailment of Delivery of Project Water for Maintenance Purposes. The District may temporarily discontinue or reduce the amount of water to be furnished to the Agency for purposes of maintaining, repairing, replacing and investigating or inspecting, any of the facilities necessary for the furnishing of Project Water to the Agency hereunder. Insofar as it is feasible, the District will give the Agency advance notice of any such temporary discontinuance or reduction, except in the case of emergency, in which case no advance notice need be given.

In the event of such discontinuance or reduction, the District will apply its best efforts to minimize the duration and severity of service interruption hereunder and shall, as nearly as possible, make available to the Agency Project Water sufficient to make up for any shortfall in deliveries of water to the Agency during the period of curtailment.

Article 14. Rate and Method of Payment. Commencing with the first Water Year during which Project Water is made available to the Agency hereunder, the Agency shall pay to the District in advance and on "a semiannual basis, its Contract Payments, calculated and paid in accordance

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with the further provisions of this Article, for the Project Water made available under this Contract for such Water Year.
(A) Allocation of Total Project Costs and Debt Service. On or before April 1 of each Calendar Year, the District shall calculate, or cause to be calculated, Total Project Costs for the Fiscal Year commencing on the immediately following July 1. The District shall deduct from the calculated Total Project Costs for such Fiscal Year: (1) the general ad valorem property taxes to be received by the District during the Fiscal Year in question; provided that any ad valorem taxes levied and paid to provide debt service on the District's General Obligation Bonds outstanding at any time shall be restricted to use for the payment of debt service on such General Obligation Bonds and shall not be included in the deducted amount represented by the foregoing clause; and (2) a sum equal to Recreational Use Revenues received by the District during the Fiscal Year about to be concluded. The result shall comprise the Total Contract Payments due, collectively, from the Agency hereunder and from the Other Agencies under their respective Water Supply Contracts.

In determining the Debt Service portion of Total Project Costs during any Fiscal Year to be supported by the Agency, the District shall make the following calculations:
• [(G.O. Debt Service) + (Installment Debt Service) + (SRF Loan Debt Service] - (District Revenues) = Allocable Debt Service ("ADS")

• [(Proportionate Share) x ADS] = Annual Agency Obligations ("AAO") • AAO - (G.O. Tax Collections) = Agency Debt Service
For purposes of the above calculations, the term "G.O. Debt Service" above refers to the debt service on the District's General Obligation Bonds; the term "Installment Debt Service" refers to the installment payments due with respect to the Tax-Exempt Obligations; the term

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"SRF Loan Debt Service" refers to the payments due with respect to the SRF Loan; the term "Proportionate Share" refers to the Agency's Proportionate Share hereunder; the term "District Revenues" refers to the amounts available to the District under the second sentence of this paragraph (A) of Article 14; and the term "G.O. Tax Collections" refers to amounts collected to support the General Obligation Bonds within the boundaries of the Agency during the Fiscal Year in question, based upon then-current levies; provided, however, that in the case of County Service Area No. 12, such boundaries shall be deemed to include that area comprising Avila Beach Community Services. District, as well as the area comprising such County Service Area No. 12. In no event shall Agency Debt Service, as calculated above, be a figure less than zero. The foregoing calculations shall be performed by the District each Fiscal Year and shall be made available to the Agency with respect to each Other Agency, as well.

No more frequently than annually, the District shall retain a certified public accountant, or firm thereof, with the approval of the Zone 3 Advisory Board, which shall be responsible for reviewing and confirming the Agency Debt Service figures resulting from the foregoing calculations, and reporting the same to the Agency, the District and each Other Agency.
(B) Agency Contract Payments. Unless the Agency shall, in accordance with paragraph (C) below, be entitled to an offsetting credit, the Agency shall be obligated to pay to the District:
(1) on or before July 1 and the immediately following January 1 of each Fiscal Year, a sum equal to one-half of its Percentage Share of charges for Operation and Maintenance Costs and Capital Reserves for such Fiscal Year;

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(2) on or before July 1 of each Fiscal Year, a sum equal to Agency Debt Service, as calculated under paragraph (A) above; and (3) on or before July 1 and the immediately following January 1 of each Fiscal Year, the Variable Charge calculated in accordance with paragraph (D) below.
(C) Agency Credits against Contract Payments. The following shall constitute credits against the obligations of the Agency to pay Contract Payments to the District:
(1) (a) If, prior to the date upon which the District causes the Tax-Exempt Obligations to be sold, the Agency shall contribute, in cash, a sum for its Proportionate Share of the total amount of costs and expenses projected by the District as the basis for the Seismic Remediation Project, or any portion of its Proportionate Share, so that the aggregate principal component of the Tax-Exempt Obligations is reduced by such sum, the Agency's Proportionate Share of Debt Service, and therefore, of Total Project Costs, shall be reduced accordingly; and
(b) If the Agency shall, following the date of delivery of the Tax-Exempt Obligations, successfully implement a financing plan within its jurisdiction to fund all or a portion of Debt Service during the term of the Tax-Exempt Obligations through the levy of ad valorem property taxes, special assessments or special taxes, then the Agency shall be entitled to a credit from amounts paid under such levy as though such amounts were paid directly by the Agency hereunder, subject to the prior approval of each rating agency then rating the Tax-Exempt Obligations and any bond insurer then providing insurance

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therefor; provided, however, that the District shall be made a third-party beneficiary of any pledge of such alternate source of revenues, with the power to enforce collection thereof, in the event the Agency should fail to do so; and (c) The Agency shall be entitled to a credit equal to a Percentage Share of the net revenues the District shall have received from the sale of Surplus Water and from the delivery of any water wheeled for Wheeling Customers, as defined in and pursuant to the provisions of Article 31, during the Fiscal Year in question; in determining the amount of such wheeling credits against the obligations of the Agency hereunder, the District shall apportion its net revenues from the foregoing sources, taking into account the particular Unit or Units through which delivery of Surplus Water or wheeled water was made, and shall compare the Agency's Percentage Share for such Unit or Units with the aggregate Percentage Share for all Other Agencies and the Agency for such Unit or Units. (2) On or before December 1 of each year, the District shall deliver to the Agency a statement as to the actual Operation and Maintenance Costs, Variable Charges, and Capital Reserve charges incurred or imposed during the Fiscal Year most recently concluded, and shall set forth in such statement its determination as to whether the amounts theretofore paid by the Agency as its Percentage Share of estimated charges for Operation and Maintenance Costs, Variable Charges, and for Capital Reserves were in excess of or less than its Percentage Share of such costs and charges for the Fiscal Year most recently concluded. If the Agency shall have paid less than its Percentage Share of actual Operation and Maintenance Costs, Variable Charges, and charges for Capital Reserves for such Fiscal Year, the Agency

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shall remit the difference to the District within (180) days of the date upon which it receives such a statement; if the Agency shall have paid more than its Percentage Share of such costs and charges for such Fiscal Year, the District shall rebate the difference to the Agency promptly following its delivery of the closing statement, and, in any event, within thirty (30) days thereafter.
(D) Variable Charges. The sum of Variable Charges to the Agency and the Other Agencies shall be an amount which is estimated to be sufficient to compensate the District for actual Project pumping energy and chemical charges incurred. The Variable Charge shall be determined for each Fiscal Year during which Project Water is made available to the Agency under the Contract by (1) dividing the District's actual cost of pumping energy and chemical charges during that Fiscal Year by the total acre-feet of Project Water delivered by the District during such Fiscal Year to the Agency and all Other Agencies pursuant to the Contract and the other Contracts, and (2) multiplying this acre-foot charge by the number of acre-feet of Project Water delivered by the District to the Agency during such Fiscal Year. (E) Use by District of Total Contract Payments. During the term of the Contract and of the other Contracts, the District shall proceed with due diligence to collect Total Contract Payments as and when due, and shall apply amounts collected in the following order of priority:
(1) to the payment of Operation and Maintenance Costs;
(2) to the payment of Debt Service with respect to the Tax-Exempt Obligations;
(3) to the payment of Debt Service with respect to the SRF Loan; and

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(4) to the replenishment or funding of Capital Reserves for the Project, in accordance with the provisions set forth in Article 10 hereof.

Article 15. Take-or-Pay Obligation of Agency. Commencing on the first date upon which Project Water is provided under the Contract, the Agency shall pay all amounts due hereunder, including, without limitation, under Article 14 hereof, without reduction or offset of any kind, whether or not the Project or any part thereof is then operating or operable or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part, due to any of the reasons outlined in Articles 4(B), 5 and 13 or otherwise, and such Agency payments shall not be conditional upon the performance or nonperformance by any party for any cause whatsoever, including the Other Agencies; provided, however, that savings from nonoperation of the Project shall be apportioned among the Agency and the Other Agencies in accordance with their Percentage Shares.

The Agency's failure or refusal to accept delivery of Project Water, or to put water into storage, to which it is entitled under the Contract shall in no way relieve the Agency of its obligation to make payments to the District as provided for herein.

Article 16. Pledge; Establishment and Collection of Rates and Charges. The Agency, unless it shall have paid cash as its share of the Total Project Costs, as provided in Article 14(C)(1) hereof, hereby pledges gross water sale revenues of its Water Enterprise to its obligations under the Contract, and covenants and agrees to establish, fix and collect Rates and Charges from the customers of its Water Enterprise at levels sufficient to produce revenues from the Water Enterprise at least equal to (A) the costs of operating and maintaining the Water Enterprise, plus (B) the Agency's Contract Payments, calculated in accordance with Article 14(B) hereof, including (C) the Agency's Proportionate Share of Debt Service, plus (D) the Coverage Factor for

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the Debt Service portion of the Agency's Contract Payments; provided, however, that the provisions of Article 21(C) hereof may impose upon the Agency a surcharge following the occurrence of any payment default by the Agency. The Agency acknowledges and agrees that its obligations hereunder shall comprise, for accounting purposes, an operation and maintenance expense of its Water Enterprise.

Article 17. Default.
(A) The following shall constitute events of default hereunder:
(1) The Agency shall fail to make timely payment in full of all amounts due from the Agency under the terms of the Contract; or (2) The Agency shall fail to establish or collect, or cause to be collected, all fees, charges and other sums necessary to enable it to make the payments required hereunder, as provided in Article 16 hereof, and following thirty (30) days' written notice from the District to the Agency, shall fail to remedy such failure to the satisfaction of the District; or (3) The Agency shall fail to perform any other obligation or covenant hereunder and shall fail to remedy such failure to the satisfaction of the District within thirty (30) days following the Agency's receipt of written notice from the District, or for such additional time as is reasonably required, in the sole discretion of the District, to correct the same; or
(4) The Agency shall file any petition or institute any proceedings under any act or acts, State or federal, dealing with or relating to the subject of bankruptcy or insolvency or under any amendment to such act or acts, either as a bankrupt or as an insolvent or as a debtor or in any similar capacity, wherein or

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whereby the Agency seeks or prays to be adjudicated bankrupt or is to be discharged from any or all of its debts or obligations, or offers a reorganization of its obligations for the benefit of creditors, or asks for similar relief. (B) Upon the occurrence of an event of default hereunder, the District shall be entitled to proceed to protect and enforce the rights vested in the District by the Contract by appropriate judicial proceedings as the District may deem most effective, either in equity or law. Without limiting the generality of the foregoing, the District shall be entitled to pursue any of the following remedies:
(1) The District may suspend the delivery of water hereunder during the period when the Agency is delinquent in its payment for or other obligations to the District hereunder, but only following notice to the Agency and the imposition of such remedy following a formal hearing conducted by the County Board; (2) The District may compel the Agency, or its governing board, by action or suit in equity to account to the District as the trustee of an express trust;
(3) The District may pursue by action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the District hereunder; and
(4) The District may proceed in mandamus or other suit, action or proceeding at law or in equity to enforce its rights against the Agency (and its board, officers, agents and employees) and to compel the Agency to perform and carry out its duties and obligations under the law and its covenants and obligations as set forth herein.

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The use by either party to the Contract of any remedy specified herein for the enforcement of the Contract is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provide hereunder or by law or equity.
(C) Upon each charge to be paid by the Agency to the District pursuant to the Contract which remains unpaid after the same shall have become due and payable, interest shall accrue at an annual rate equal to that earned by the County Treasurer's investment fund as provided in Government Code Section 16480 et seq. calculated monthly on the amount of such delinquent payment from and after the due date when the same becomes due until paid, and the Agency hereby agrees to pay such interest; provided, that no interest shall be charged to or be paid by the Agency unless such delinquency continues for more than thirty (30) days. The Agency hereby agrees to pay such interest to the District, whether or not the District shall pursue any of the remedies specified in this Article.

In no event shall default interest be compounded.

Article 18. Failure to Levy, Set or Collect Taxes, Rates and Charges; Establishment of Coverage Account. If the Agency for any reason shall fail or refuse to establish or levy taxes or Rates and Charges sufficient to satisfy the requirements of Article 16 hereof, or if the Agency shall be precluded from establishing rates and charges at the levels required in said Article 16, then the Agency shall promptly notify the District of such fact, in writing, and shall establish either (a) with the District; or (b) with a Depository designated by the Agency to the District in writing; a Coverage Account, into which the Agency shall deposit, from the first lawfully available funds therefor, an amount equal to one year's Coverage Factor for the Debt Service portion of the Agency's Contract Payments hereunder. The Coverage Account shall be invested

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in accordance with applicable provisions of the Government Code, subject to any limitations established pursuant to Section 148 of the Internal Revenue Code of 1986, as amended, applicable to surplus moneys of the Agency and shall be and remain available to the Agency and to the District as a source of funds to remedy any shortfall in the payment of Agency Contract Payments hereunder. The Coverage Account shall be pledged to the District for the purposes described herein, and the Agency covenants and agrees to execute such instruments as may be necessary in order to effect a pledge of amounts on deposit in the Coverage Account, acknowledging and agreeing as well to follow the advice of special tax counsel to the District in connection with the pledge and investment of the Coverage Account, as may be necessary or advisable in order to maintain the tax status of the Tax-Exempt Obligations.

If at any time following the establishment of the Coverage Account hereunder, the Agency shall again be able to and shall collect rates and charges as required under Article 16 hereof, the Coverage Account may be released to the credit and name of the Agency for any lawful purpose thereof, upon delivery to the District of evidence satisfactory to the District that (i) the Agency has successfully levied rates and charges for its Water Enterprise at the appropriate levels for at least one full Fiscal or Water Year since the Coverage Account was first created, and (ii) the Agency is then current on all payments due under the Contract; whereupon, the District shall either release the Coverage Account to the Agency or shall direct the Depository to do so, free from the lien described herein.

Article 19. Area Served by Agency. Water delivered to the Agency pursuant to the Contract shall not be sold or otherwise disposed of by the Agency for use outside the boundaries of Zone 3 as they may now or hereafter exist, without the prior written consent of the District.

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Article 20. Changes in Organization of Agency. The Agency will furnish the District with maps showing the territorial limits of the Agency and the service area or areas of its water distribution system. Throughout the term of the Contract, the Agency will promptly notify the District of any changes, either by inclusion or exclusion, in said territorial limits and service area or areas.

The Agency shall take no action to exclude any lands from the Agency or its service area or areas without the prior written consent of the District.

Article 21. Agency's Obligations Several and Not Joint: Limited Step-up Provisions and Reimbursement.
(A) Except as provided in paragraph (B) of this Article, the Agency and the Other Agencies shall be solely responsible and liable for performance under the Contract or under the other Contracts, as applicable. Their obligations to the District to make payments under the Contract and the other Contracts are expressly recognized by the District as several, and not joint, and no default on the part of one of the Other Agencies shall, in and of itself, create an event of default hereunder. The Coverage Account of the Agency, if any is established hereunder, shall not be available for any shortfall in payments under any of the other Contracts, unless otherwise directed or approved in writing by the Agency. (B) In the event that the Agency or any Other Agency (each, a "Delinquent Agency") shall fail to pay its Contract Payments hereunder or under the Other Agency's Contract, as appropriate, for any reason, then the Contract Payments for each non-delinquent agency (each, a "Non-Delinquent Agency") then participating in the Project shall be increased for the particular Water Year by an amount equal to the sum of Contract Payments not paid in full by Delinquent Agencies (collectively, the "Shortfall"); provided, however, that Non-Delinquent Agencies shall contribute to the Shortfall in a

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proportion determined by dividing the Debt Service portion of the Contract Payments attributable to each particular Non-Defaulting Agency by the aggregate Debt Service portions of the Contract Payments attributable to all Non-Defaulting Agencies; and provided further, that the Agency in no event shall be required under this paragraph to contribute to the Shortfall by an amount in any Water Year exceeding the amount which is 20% of the portion of the Agency's Contract Payments representing Debt Service for that Water Year. (C) If payments are made by Non-Delinquent Agencies under the foregoing paragraph (B) during any Water Year, the District shall, beginning on the first date upon which payments are due from a Delinquent Agency and not paid in accordance with its Contract (each, a "Due Date"), declare a default as to such Delinquent Agency under its Contract and shall be entitled to curtail all deliveries of Project Water under such Contract and Delinquent Agency shall not be allowed to put water into storage in Lopez Reservoir but may keep any water already in storage; notwithstanding the foregoing, such Delinquent Agency shall nonetheless continue to be obligated under its Contract for amounts paid on its behalf by the Non-Delinquent Agencies, until it has reimbursed each Non-Delinquent Agency in full. Amounts advanced by the Non-Delinquent Agencies hereunder are immediately due and payable by the responsible Delinquent Agency, and, if not so paid, and notwithstanding the provisions of Article 17(C), incur interest on the unpaid portion until paid in full at a rate per annum equal to the average rate for the County Treasury Pool, plus two percent (2.0%) per annum, for the month for which the County Treasury Pool rate was most recently calculated, based on a 360-day year of twelve 30-day months; provided, however, that payments to be made as reimbursements under this paragraph (C) are deemed and understood to be subordinate to the obligations of the Delinquent Agencies to pay their Proportionate Shares of Debt Service.

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(D) Shortfalls in Total Contract Payments shall be remedied under this Article prior to the District's making any withdrawal from the debt service reserve fund established, or under the reserve surety bond posted, for the Tax-Exempt Obligations, if any, drawings on or under which shall be delayed until and unless insufficient moneys are available from Non-Defaulting Agencies hereunder.
(E) The District covenants and agrees to enforce the provisions of the Contract with due diligence, including, without limitation, the provisions of this Section for the benefit of the owners, from time to time, of the Tax-Exempt Obligations.

Article 22. Contracts to Be Uniform. The Contracts executed by the District with the Other Agencies shall be substantially uniform with respect to basic terms and conditions, when compared with the Contract, but shall provide for different dates, quantities of water to be delivered, water delivery points, Proportionate Shares and Percentage Shares and payment amounts.

Article 23. Amendments. The Contract shall be subject to amendment at any time by mutual agreement of the parties hereto, except insofar as any proposed amendments are in any way contrary to applicable law or would have a material adverse effect upon the owners of any of the Tax-Exempt Obligations. As a condition to any amendment to the Contract or to the other Contracts, the District shall first have received written confirmation from the rating agency or agencies then providing a rating for the Tax-Exempt Obligations, to the effect that the proposed amendments will not adversely affect the rating of the Tax-Exempt Obligations and, in the event that the Tax-Exempt Obligations, or any portion thereof, shall be covered by municipal bond insurance, the District shall have received prior written consent to such

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proposed amendments from the provider of such bond insurance. Amendments may be effected upon the following conditions:
(A) Amendments to the Contract or the other Contracts which have the effect of replacing the Agency's or any Other Agency's Proportionate Share of Project Water or Percentage Share of Total Contract Payments with water purchases by or revenues contributed from either (i) the Agency or some Other Agency or (ii) a new customer, shall be subject to the approval only of those entities whose Proportionate Shares or Percentage Shares will be affected, and the District.
(B) Upon the written request of the Agency or any Other Agency, the District may order the construction or equipping of any Type III Additional Project; provided, however, that the requesting Agency or Other Agency shall first demonstrate to the satisfaction of the District that either (i) the proposed Type III Additional Project will be economically feasible with the financial support of only the requesting Agency and/or Other Agencies who voluntarily participate (whose Percentage Shares will thereafter be appropriately adjusted); or (ii) the Agency and all of the Other Agencies will consent to the funding of the Type III Additional Project and will agree to increase Total Project Costs sufficiently to provide for the costs thereof. The financing of a Type III Additional Project may be accomplished through the levy of additional Capital Reserves, the issuance of additional bonds or other evidence of indebtedness or otherwise. The undertaking of Type I or Type II Additional Projects shall not require the consent of the Agency or any Other Agency nor the amendment of the Contract.

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(C) Amendments to the Contract and to the other Contracts other than those specified above shall be approved only upon the prior written and unanimous consent of the District, the Agency and all Other Agencies.

Article 24. Opinions and Determinations; Good Faith; Information to Be Provided to Zone 3 Advisory Committee.
(A) Where the terms of the Contract provide for action to be based upon opinion, judgment, approval, review or determination of either party hereto, such terms are not intended to and shall never be construed to permit such opinion, judgment, approval, review of determination to be arbitrary, capricious or unreasonable. The District and the Agency shall each act in good faith in performing their respective obligations as set forth in the Contract.
(B) The Zone 3 Advisory Committee, created by appointment of designated representatives made by the Agency, each Other Agency and the District, is hereby continued for the purpose of advising the District regarding administrative and operational concerns affecting the Project. The District covenants and agrees to present to the Zone 3 Advisory Committee, at its regularly scheduled or specially called meetings, the following items for advice and comment, in each case, prior to final presentation of the same item to the County Board:
i. the annual budgets for the District;
ii. the approval of each non-emergency Capital Project which has not theretofore been included in an annual budget of the District; it being understood and agreed that emergency repairs and improvements shall be exempt from any requirement for preview established hereby; and

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iii. the mid-year review of actual fiscal performance of the Project, provided for the then-current Fiscal Year, and in any event, prior to March 31 of each calendar year, which may, to the extent practicable, be combined with the review of the District's annual budget for the next Fiscal Year.
iv. any future Habitat Conservation Plan or implementing agreement for Arroyo Grande Creek that would affect operation of the Project. v. amendments to the methodology or formula established in County Board Resolution No. 2000-133, adopted April 4, 2000, with respect to the making of Recreational Budget Transfers.

Article 25. Waiver of Rights. Any waiver at any time by either party hereto of its rights with respect to a breach or default, or any other matter arising in connection with the Contract, shall not be deemed to be a waiver with respect to any other breach, default or matter hereunder, nor as to a breach or default occurring or having occurred under any other Contract.

Article 26. Notices. All notices that are required either expressly or by implication to be given by either party to the other under the Contract shall, if given in writing, be executed on behalf of the District or for the Agency by such authorized officers as they may each, from time to time, authorize in writing for such purposes. All notices shall be deemed to have been given and delivered if delivered personally or if deposited, postage prepaid, with the United States Postal Service for delivery. Unless and until formally notified otherwise, all notices shall be addressed to the parties at their addresses shown on the signature page of the Contract; provided, however, that either party may give written notice to the other of a change in such notice address.

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Article 27. Assignment; Pledge. The provisions of the Contract shall apply to and bind the successors and assigns of the respective parties, including any assignee hereof designated in connection with the execution and delivery of the Tax-Exempt Obligations, but no assignment or transfer of the Contract by the Agency, or any part hereof or interest herein, shall be valid until and unless approved by the District; provided, however, that no further assignment by the District shall be valid until and unless approved by the Agency and all of the Other Agencies; and provided further, that, so long as any Tax-Exempt Obligations are outstanding, no such assignment shall be effective until such time as the District has received assurances from each rating agency then rating the Tax-Exempt Obligations, to the effect that such transfer shall not adversely affect the rating on the Tax-Exempt Obligations, and, so long as any Tax-Exempt Obligations are then being insured by a municipal bond insurance company, until such time as the District has received the written consent from such bond insurer as to such assignment.

The Agency understands and acknowledges that the District intends to pledge amounts received and to be received hereunder and under the other Contracts to a financial institution and/or nonprofit corporation as further support for its obligations under the Tax-Exempt Obligations.

Article 28. Inspection of Books and Records. The authorized officers of the Agency shall have full and free access at all reasonable times to the account books and official records of the District insofar as the same pertain to the matters and services provided for in the Contract, with the right at any time during regular office hours of the District to make copies thereof at the Agency's expense, and the authorized officers of the District shall have similar rights with respect to the account books and records of the Agency for its Water Enterprise.

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Article 29. Severability. Any provision of the Contract that is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability, or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability of legality of such provision in any other jurisdiction.

Article 30. Water Rights. No provision of the Contract shall be considered to be in derogation of any existing waiver of right(s) or claim(s) to water right(s) by or any agreements concerning water rights of either party hereof, including but not limited to overlying, prescriptive, appropriative, riparian, or pueblo rights, nor shall it be construed to result in any relinquishment or adjustment of any such water rights or claims thereof; and, in particular, no provision of this Contract shall be considered to diminish, reduce or affect, in any way, either party's rights pursuant to California Water Code Section 1005.1 and/or Section 1005.2.

Article 31. Wheeling of Water. As used in this Article, the term "Existing Contractor" shall refer to the Agency and any Other Agencies presently having a contract with the District for the delivery of Project Water; any person other than an Existing Contractor which shall arrange for the delivery of water other than Project Water from the District under the terms hereof shall be described as a "Wheeling Customer." The Agency, as an Existing Contractor, shall be entitled to have additional water wheeled to it by the District through the various Units of the Project, at the actual cost of such wheeling, determined in accordance with the terms and conditions of the existing contracts by and between the District and the Agency or Other Agencies for the delivery of State Water Project Water to the Agency or Other Agencies through the Project.

If at any time during the term of the Contract, the District delivers water, other than Project Water, through any Unit of the Project to any Wheeling Customer, said Wheeling

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Customer shall be required to pay for such delivery service in a manner and at prices which will return to the District the largest net revenue practicable, but in no event shall such deliveries be effected at charges less than those applicable to the delivery of Project Water to the Agency through the same Unit or Units.

In determining the appropriate charges for water delivered to a Wheeling Customer hereunder, the District shall take into account the particular Unit or Units through which delivery of such water is made, shall compare the Operation and Maintenance Costs and Debt Service costs apportionable to such Unit or Units with Total Project Costs, and shall further compare the amount of water delivered to Wheeling Customers through such Unit or Units with the amount of Project Water delivered to Existing Contractors through such Unit or Units for the same period of time.

In calculating credits to the Existing Contractors from the delivery of water to Wheeling Customers under the Contract and the other Water Supply Contracts, the District shall apportion such credits according to the Unit or Units through which such water was in fact delivered, as described in the preceding paragraph.

The provisions of this Article shall be subject to any contracts which the District may execute with the United States of America for any grants from the Department of Housing and Urban Development.

Article 32. Execution in Counterparts. The Contract may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same document.

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Article 33. Governing Law. The Contract shall be interpreted, governed, and enforced in accordance with the laws of the State of California applicable to contracts made and performed in such State.

Article 34. Re-Funding Related Provisions. The Agency concurs with the recommendation of the District to effect a refunding of the Tax-Exempt Obligations and the General Obligation Bonds issued in connection with the SLO County Financing Authority Lopez Dam Improvement Revenue Bonds, 2000 Series A and agrees to take all appropriate action in support of the issuance of the Refunding Bonds, as recommended by the District, its Bond Counsel, being Fulbright & Jaworski L.L.P., and its Financial Advisor, being Public Financial Management. In particular, the Agency understands and agrees that it will have incurred additional continuing disclosure obligations with respect to the Refunding Bonds, as more particularly described in the Continuing Disclosure Agreement to be executed in connection with the Refunding Bonds, pursuant to Rule 15c2-12 of the Securities and Exchange Commission. The Agency concurs with the recommendation of the District to effect a refunding of the Tax-Exempt Obligations and the General Obligation Bonds issued in connection with the SLO County Financing Authority Lopez Dam Improvement Refunding Revenue Bonds, 2011 Series A (the “2011 Series A Bonds”) and agrees to take all appropriate action in support of the issuance of Refunding Bonds, as recommended by the District, its Bond Counsel, being Norton Rose Fulbright US LLP, and its Financial Advisor, being KNN Public Finance, LLC, provided, however, the Refunding Bonds shall result in a minimum 3% present value total debt service savings reduction and lower annual debt service payments in every year (inclusive of any costs associated with the refinancing and the term of the Refunding Bonds shall not extend beyond the term of

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the 2011 Series A Bonds of August 1, 2030. In particular, the Agency understands and agrees that it will have incurred additional disclosure obligations with respect to the Refunding Bonds; provided the disclosure obligations of the Agency shall be no more extensive than those in connection with the 2011 Series A Bonds under federal securities laws and Securities and Exchange Commission Rule 15c2-12.

In the event that Agency is unable to meet its obligation to provide certain financial and operating data relating to such Agency, and is therefore unable to meet all acts, conditions and things required by law to be done or performed in strict conformity with the laws authorizing the issuance of general obligation refunding bonds, then the District may provide an amount (the “Advance”) necessary to effectuate a refunding of the installment purchase portion of the original Tax-Exempt Obligations attributable to the Agency (the “Agency’s Installment Purchase Obligation”) on the scheduled closing date for the refunding bonds. Such an Advance by the District shall be considered a loan to the Agency, and the Agency shall thereafter be obligated to continue to make payments to the District in accordance with the original Agency Debt Service schedule related to the Agency’s Installment Purchase Obligation as though the original Tax-Exempt Obligation had never been refunded until such time as the Advance, plus interest accrued thereon at the interest rate applicable to the original Tax-Exempt Obligations, shall be repaid to the District in full.

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IN WITNESS WHEREOF, the parties hereto have executed this Contract on the dates set forth below.

SAN LUIS OBISPO COUNTY

FLOOD CONTROL AND WATER

CONSERVATION DISTRICT
BY: _____________________________
Chair, Board of Supervisors
Date: ______________________________
Address for Notices:

Department of Public Works
County Government Center
San Luis Obispo, California 93408
Attn: Director of Public Works
APPROVED AS TO FORM:

County Counsel
BY: ____________________________
Deputy County Counsel
ATTEST:

County Clerk
BY: ____________________________
Deputy

THE CITY OF PISMO BEACH
BY: _____________________________
Mayor
Address for Notices:
760 Mattie Road
Pismo Beach, CA 93449
Attn: City Manager

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ATTEST:

BY: ____________________________

APPROVED AS TO FORM:

City Attorney

BY: ____________________________

David M. Fleishman

L:\Utilities\2022\August\BOS\Zone 3 Amended Restated Contracts\Zone 3 Agency Contracts\Zone 3 2022 Contract_The City of Pismo Beach.docx.JO.sc

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Pismo Beach City CouncilSeptember 20, 2022

Pismo Beach City Council
September 20, 2022