PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B
SUBJECT/TITLE:
FAÇADE IMPROVEMENT REBATE PROGRAM
RECOMMENDATION:
Receive a report on the City’s existing Façade Improvement Rebate Program and provide direction to staff on how to publicize the program, and whether modifications are desired.
BACKGROUND:
In 2017, the City Council directed the development of a Façade Improvement Rebate Program (the Program) to provide a match of up to $5,000 to local property and business owners wishing to make improvements to the exterior of their buildings. The Program was reviewed and approved by the Planning Commission on June 27, 2017. The original informational flyer, which is not currently in use, for the Program is provided as Attachment 1. At the October 4, 2022 meeting, the City Council requested information regarding the Program.
Program Requirements
Following approval of the Program by the Planning Commission, the initial Program roll- out did not generate applicants for funding. As a result, the Program was readvertised in June 2018, and was clarified to be a reimbursement program with awards of up to $5,000 in matching funds. Eligible improvements included exterior painting, decorative façade improvements, signage, decorative exterior lighting, canopies, awnings, and roof screening, among others. Requirements included applications to be submitted and approved for participation prior to work being performed.
The initial program focused on the Downtown commercial district. While applications were not accepted for businesses in the Shell Beach commercial district, several inquiries from businesses in that area were received.
Previous Applications
The Planning Division received eight applications for façade improvements, including new signage, new paint, lighting, awnings, and planting. Only one application completed the process, and one rebate for $5,000 was awarded. The remaining applications were not viable, as they were either for work previously completed, for work without matching funding, or for tenants who did not have property owner permission for the proposed improvements.
An obstacle that was identified during the previous Program was the reimbursement and matching fund criteria. Most applicants believed that these funds were a simple grant, rather than a matching program, and withdrew their request once the requirements were clarified. Other obstacles included the added expense of consultants needed to prepare some of the application material in order to achieve compliance with Planning regulations and Building codes. For example, a new sign requires conceptual development drawings Council Agenda 11-1-2022 12.B-1
and construction plans to obtain the required Planning and Building permits for the project to participate in the rebate program.
Potential Program Improvements
Staff has identified a number of potential improvements, should the Council wish to direct staff to pursue them. Advertisement of the program through an educational workshop with the Downtown and Shell Beach business community would provide important information on how the funds could be used, as well as clearly communicate the program criteria. If a workshop is desired, staff recommends that it include information on design components to help property and business owners generate ideas for creating an active pedestrian environment through façade improvements. In addition, staff would develop a new informational brochure for the program that explains the program structure and requirements in a streamlined format, using the City’s branding guidelines.
In order to evaluate applications in an equitable manner, staff has determined that the Program should be available once to two times per year, depending upon the annual program budget, with a set application submittal period. The pool of applicants would then be evaluated by selection criteria, including project readiness and quality of improvement for community benefit.
Conclusion and Recommendation
The Façade Improvement Rebate Program offers property and business owners a matching fund through which to improve the aesthetics of the community. Staff recommends that the City Council provide direction to staff on any desired modifications to the Program.
FISCAL IMPACT:
There is no additional fiscal impact to provide staff direction. Changes to the Program could result in future fiscal impacts. The Fiscal Year 2023 General Fund budget includes $20,000 for this program.
ALTERNATIVES:
1. Direct staff to return with additional information.
ATTACHMENTS:
1. Previous Façade Improvement Rebate Program Flyer
Prepared by: Meeting Date: November 1, 2022 Aileen Nygaard, Associate Planner
Submitted by: Matthew Downing, Community Development Director City Manager Approval:
Council Agenda 11-1-2022 12.B-2
C I T Y OF
PI
S
MO B E A C H
C I T Y OF
FACADE IMPROVEMENT
REBATE PROGRAM
CITY OF
PISMO BEACH
Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-3
IV - Rebate Levels
Each participating property will be eligible for a rebate of up to $5,000, subject to prior approval and verification of the re- ceipts submitted by the Applicant.
I - Objectives
The Façade Improvement Rebate Program is intended to improve the appearance of commercial buildings located in the Downtown Area through the use of rebates for costs associated with improvements to building exteriors. Complete appli- cations will be reviewed by City staff and should not be subject to review by the City’s Planning Commission. No Building Permit fees or Planning review fees will be charged to the applicant as part of this process.
II - Eligible Area and Business
Commercial structures located within the boundaries of the Downtown Area (see section VIII). Property owners or tenants of commercial buildings are eligible to apply. However, tenants are required to provide written concurrence from the owner(s) of the property to participate in the program.
III - Implementation
In order to implement this program, funds may, from time to time, be set aside in the City’s annual budget to provide re- bates to qualified and eligible applicants who upgrade the exterior of their buildings. 2 Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-4
VII - Design
Applicants must make application for assistance prior to the start of the renovation and meet with the City to discuss the de- tails. An applicant may wish to retain the services of an architect/designer to assist in the preparation of preliminary concept plans and drawings, taking into account design guidelines, building codes and the zoning ordinance. • Improvement projects must enhance the appearance of the street elevation(s) or additional primary access points to the building such as an alley or parking lot.
• Attractive colors, appropriate design, articulation, shadow relief, consistent and appropriate signage and landscaping will be evaluated.
• Existing architectural features on the subject building and on the surrounding structures will be considered. • The design standards or proposed improvement must comply with any design standards or guidelines adopted by the City of Pismo Beach.
3 VI - Program Committee
The Program Committee shall be comprised of City staff from the Community Development Department and may include an outside consultant architect/designer.
Unless otherwise designated by the City, the City shall sit and issue all approvals related to the Façade Improvement Program description, and the Agreement for Façade Improvement Rebate. The City must approve all Agreements prior to the com- mencement of work.
V - Public Works Project
The Façade Improvement Program falls under Health and Safety Code Section 33423 et seq., and California Labor Code Sec- tion 1720, which requires the payment of prevailing wages on private projects receiving public assistance. Accordingly, all City projects or assisted projects will require the payment of prevailing wages for each craft or type of workman needed throughout construction. City staff will provide assistance in complying with these requirements. Information on current prevailing wage can be found here: https://www.dir.ca.gov/Public-Works/Prevailing-Wage.html Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-5
4 VIII - Program Emphasis
Priority will be placed on projects with the most visual impact and benefit to the community located along major streets in the core area as defined in the Pismo Beach Downtown Strategic Plan shown below:
Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-6
IX - Guidelines
1. All projects shall comply with current City codes, ordinances, rules, regulations, and design guidelines. Applicant shall obtain building permits when required by law.
2. Un-reinforced masonry buildings (URM’s) must be in the process of retrofit to be eligible for participation in the Façade Improvement Rebate Program.
3. Participants shall pay for all agreed upon improvements by cashier’s check or personal check with appropriate documen- tation. The participant must submit copies of cancelled personal checks or receipts along with supporting documenta tion evidencing completion of work for which the rebate has been approved. Applicants must complete all agreed upon work with 90 days of the date of approval. If it is determined that the time limit is unreasonable, an extension can be granted by the City to remain eligible for the rebate.
4. Before, during and after the improvements are made, the City shall have the right to inspect all exterior work. The project is not qualified for a rebate until all improvements have been completed to the satisfaction of the City.
5. A licensed contractor, the owner of the building, or his/her tenant, shall perform the work if they are qualified to perform the work.
6. If project is proposed by a business that does not own the subject property, the business must have been in operation at the subject property with a valid business license for a minimum of two (2) years to qualify for the program.
7. In the event Applicant undertakes to do the work himself/herself, the reimbursement will be limited to the actual cost of equipment and materials. Truly volunteer assistance is permissible provided the approved project rebate is $1,000 or less; however, if the rebate is $1,000 or more and Applicant employs temporary help, utilizes existing employees, utilizes volunteers or engages in barter to do the work, payment of prevailing wages will be required. 5 X - Eligible Improvements
The following improvements will be eligible under the Facade Improvement Program:
1. Exterior painting, decorative facade treatment, signage, fascia, canopies, awnings, parapets and screening of roof-mounted equipment visible from the street.
2. Correction of building, health, nonconforming signage, or zoning code violations as it applies to the proposed improve ment of the facade only.
3. Installation of decorative exterior lighting.
4. Minor landscaping and streetscaping directly relating to the buildings positive image.
5. Other improvements authorized by the City.
6. Restoration of historic building facades.
7. Repair or replacement of entryways, exterior doors and windows, and decorative fascia structures.
8. Removal of all deteriorated signs and extraneous structures as part of an overall improvement concept plan for the building facade.
Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-7
6 XI - Exclusions
1. Project-related costs and improvements started prior to approval, except for design work necessary to make the applica- tion. Pre-project design work is eligible only for a project subsequently approved.
2. Anything not visible from the exterior of the building along the main street or other primary access point such as alleys or parking lots.
3. Any interior improvements such as carpeting, drapery, blinds, interior signage, or other related interior improvements.
4. Purchase of inventory.
5. Fixtures or furnishings related to the merchandising or operations of the building.
6. Purchase of business equipment or displays.
7. Other actions not directly listed on the above eligibility list.
8. Security bars, roofing, and mechanical equipment.
9. Exterior improvements not approved by the City.
10. Buildings with existing businesses operating without a valid City of Pismo Beach Business License.
Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-8
XII - Process
Consultation with Architect/Designer:
Applicant contacts the City’s Planning Division to arrange a meeting with staff and the architect/designer to discuss desired improvements to the building.
1. Submit Application:
Applicant completes and signs application form including scope of work. In the case of a lessee, approval of the property owner is required.
2. Preliminary Plan Review:
The architect will submit a conceptual rendering, a detailed description of work and preliminary cost estimate to the Plan- ning Division staff and applicant for review by staff.
3. Site Review of Property:
Depending upon the scope of work, an on-site review of the proposed exterior improvements by the owner and/or lessee, City staff and the architect may be desirable to facilitate the proper progression of the design and project review process.
4. Final Approval of Plans:
Following departmental input, the Community Development Department, in conjunction with the architect, will review the proposed facade improvements to determine whether to approve rebate incentives and/or provide further program-paid architectural services (working drawings).
5. Bidding Procedures:
Applicants are required to get at least two bids for proposed improvements in excess of $1,000. A contractor selected by the applicant must be licensed and insured in accordance with City requirements. It should be noted that the low bidder need not be selected; however, a justification for accepting an alternative bid should be provided to the City. The selected contractor must also provide proof that prevailing wage is paid to individuals working on the project. Information on current prevailing wage can be found here: https://www.dir.ca.gov/Public-Works/Prevailing-Wage.html .
6. Pre-Construction Meeting/Notice to Proceed:
A meeting between City staff, property owner and/or lessee, architect and contractor may be necessary prior to the start of construction to discuss the scope of work and clarify any issues. A project may not proceed until the Agreement is approved by the City. Authorization to proceed is included in the Agreement. 7 Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-9
7. Award of Contract(s):
City staff shall be notified of all contracts awarded for services connected with the approved facade improvements. Copies of contracts and proof of required insurance will be provided by Applicant to City staff. Receipts for all improvements for which financial assistance is requested shall be provided and verified by staff prior to the payment of any grant funds.
8. Timeline:
The applicant has 10 business days from the date the project is approved by the Community Development Department to apply for Building Permits.
Construction shall commence within 10 business days of issuance of building permits by the Building Department.
If no building permits are required, the applicant has 20 business days from the date the project is approved by the City to begin improvements.
Exterior building improvements must be completed within 90 calendar days of issuance of building permits.
City staff may consider a 30-day extension, if the applicant can demonstrate that any delay was due to factors beyond his control (such as weather, etc.). The Community Development Director must approve extensions beyond 30 days.
9. Compensation:
The City will reimburse the applicant for the appropriate amount of funds upon completion of the project and when all receipts have been received.
10. Alterations and Maintenance of Improvements:
The facade and signage as designed, approved, and constructed, cannot be altered for five (5) years without City review and approval. The improvements funded in part by the City must be maintained in good condition for a period of five years following project completion.
8 Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-10
9 XIII - Display of Program Sign
If requested by the City, the applicant shall display a sign indicating participation in the program. This sign shall be located on the front of the building for a minimum period of thirty (30) days. This sign will be provided by the City.
XIV - Application
Prior to the start of construction, the applicant must submit the following:
1. A completed and signed application form;
2. Plans for the proposed building improvements including signage and awning designs or architectural plans in sufficient detail to identify the nature and quality of the improvements;
3. A breakdown of proposed project costs. The submittal of more than one bid is encouraged and the City reserves the right to require additional bids in its sole discretion;
4. Name of licensed contractor at the time the project is approved, if applicable.
For further information contact
The Planning Division at
805/773-4658
Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-11
10 CITY OF PISMO BEACH
COMMERCIAL FACADE IMPROVEMENT PROGRAM APPLICATION
APPLICANT INFORMATION ( ) Property Owner ( ) Business Owner/Tenant Name
Address
Business Name
Business Address
Telephone (W) (Cell)
PROPERTY OWNER (if different than the Applicant)
Name
Address
Telephone (W) (Cell)
ARCHITECT/DESIGNER
Name
Address
Telephone
PROPOSED IMPROVEMENTS
Category Estimated Cost Category Estimated Cost
Paint $ Landscaping $
Signs $ Lighting $
Awnings, canopy $ Parapet walls $
Facade treatment $ Architectural/Design $
Doors, windows $ $
Other: $ Total Estimated Cost $
Expiration date of the lease:
Sq ft. exterior wall area:
Parcel No. Bldg. Frontage:
I have reviewed all of the program terms and requirements and do hereby agree to comply with them to be eligible for program participation. All information provided herein is correct and complete to the best of my knowledge.
Signature of Applicant Date
Signature of Property Owner Date
FOR OFFICE USE ONLY
Plans submitted: Estimated date of completion:
City approval date: Actual date of completion:
Maintenance Agreement signed: Certificate of Completion:
Start date: Amount rebated: ( %)
Previous Program Flyer, No Longer in Use
Attachment 1
Council Agenda 11-1-2022 12.B-12