Pismo Beach City Council
December 6, 2022

AGENDA
Pismo Beach City Council
Tuesday, December 6, 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 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 12-6-2022

Pismo Beach City Council Agenda December 6, 2022

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: V. Lopez Jr. & Sons General Engineering Contractors, Inc. vs.

City of Pismo Beach
San Luis Obispo Superior Court Case No. 20CV-0652

4. CLOSED SESSION REPORT

If a regular meeting follows this Closed Session, the Closed Session Report will be made during the regular meeting.

5. ADJOURNMENT

Meeting Time Date Location
Regular Meeting 5:30 p.m. Tuesday, December 6, 2022 Council Chamber, City Hall

Council Agenda 12-6-2022

Pismo Beach City Council Agenda December 6, 2022

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

None.

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 - No action to be taken

7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT - No action to be taken

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 Waste 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)

Council Agenda 12-6-2022

Pismo Beach City Council Agenda December 6, 2022

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:

1. Adopt Minutes of the September 14, 2022 Joint Meeting.

2. Adopt Minutes of the November 15, 2022 Closed and Regular Meeting.

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

Recommendation:

1. Approve the Summary of Payroll Register for November 6, 2022, and November 20, 2022.

2. Approve the Register of Demands for October 28, 2022 and November 4, 2022.

Item 9.C: Fiscal Year 2023 First Quarter Financial Status Report (Feeser)

Recommendation:

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

Item 9.D: Annual Public Report on Development Impact Fees for Fiscal Year 2022 (Feeser)

Recommendation:

1. Receive the Annual Public Report on Development Impact Fees for Fiscal Year 2022;

2. Adopt a Resolution approving the Annual Public Report on Development Impact Fees for Fiscal Year 2022.

Item 9.E: 2023 City Council Regular Meeting Schedule (Inderlied)

Recommendation:

Adopt a Resolution establishing the 2023 City Council Regular Meeting schedule.

Item 9.F: Contract with Bureau Veritas for Building Permit Plan Check and Inspection Services (Downing)

Recommendation:

Adopt a Resolution authorizing the City Manager to execute a contract with Bureau Veritas North America, Inc. for professional Building Division services in Fiscal Year 2023.

Council Agenda 12-6-2022

Pismo Beach City Council Agenda December 6, 2022

Item 9.G: Side Letter Agreement to Memorandum of Understanding With Pismo Beach Police Officers Association (Garcia)

Recommendation:

Adopt a Resolution approving a Side Letter Agreement to the Memorandum of Understanding with the Pismo Beach Police Officers Association ("POA").

Item 9.H: Amendment #4 to Agreement with Rincon Consultants, Inc. for Professional Services Related to Central Coast Blue Environmental Documents (Fine)

Recommendation:

Adopt a Resolution authorizing the City Manager to execute Amendment #4 to the existing Professional Services Agreement with Rincon Consultants, Inc. for Preparation of Environmental Documents for Central Coast Blue in the amount of $66,273.

Item 9.I: 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 CALENDAR

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

GENERAL PROCEDURES FOR PUBLIC HEARINGS (Mayor/Presiding Officer reserves discretion to set speaking allowances):

1. City staff will present the staff report and recommendation, and respond to technical/clarifying questions from Council;

2. Mayor will open the public hearing, and invite the project applicant, or representative, to present the project (Limited to 10 mins);

3. In an Appeal Hearing, the Mayor will then invite the appellant, or representative, to present their appeal (Limited to 10 mins);

4. Mayor will then ask other interested persons to testify regarding the project (Limited to 3 mins per speaker);

5. Mayor will invite the project applicant, or representative, to make a rebuttal if desired (Limited to 5 mins);

6. In an Appeal Hearing, the Mayor will then invite the appellant, or representative, to make a rebuttal if desired (Limited to 5 mins);

7. Mayor will close the public hearing, following which the Council will deliberate and act on the matter.

Item 11.A: Public Hearing to Receive Community Input and Requests for Use of Community Development Block Grant Funds (Downing)

Recommendation:

1. Conduct a public hearing to receive input on the disbursement of the City’s allocation of Community Development Block Grant funds for the 2023 Action Plan Year;
Council Agenda 12-6-2022

Pismo Beach City Council Agenda December 6, 2022

2. Adopt a Resolution identifying draft recommendations to the County of San Luis Obispo for inclusion in the 2023 Community Development Block Grant Action Plan.

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

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

Recommendation:

Receive a quarterly update for the Public Safety Facility Project.

Item 12.B: Amended Loan Agreements for Housing Authority of San Luis Obispo for the Funding of a 25-Unit Affordable Senior Housing Project at 2655 Shell Beach Road (Downing)

Recommendation:

Adopt a Resolution authorizing amended loan agreements with the Housing Authority of San Luis Obispo for design, funding, construction, and management of a 25-unit affordable senior housing project at 2655 Shell Beach Road.

Item 12.C: Integrated Regional Water Management (IRWM) Plan and Grant; Determination of Exemption Under the California Environmental Quality Act (Fine)

Recommendation:

1. Adopt a Resolution adopting the 2019 San Luis Obispo County Integrated Regional Water Management Plan and adopting Statutory Exemption No. 2022-030.

2. Adopt a Resolution designating the Director of Public Works/City Engineer as the authorized representative to file applications and execute agreements for the 2022 Proposition 1 IRWM Implementation Grant Program.

Item 12.D: Fire Department Semi-Annual Report (Lee)

Recommendation:

Receive Fire Department briefing.

Item 12.E: Residential Sidewalk Development Policy (Lewis)

Recommendation:

Provide staff with direction on potential modifications to the current residential sidewalk development policy as directed on November 1, 2022.

13. CITY COUNCIL COMMENTS AND REQUESTS - No action to be taken

Council Agenda 12-6-2022

Pismo Beach City Council Agenda December 6, 2022

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
Special Meeting 5:00 p.m. Monday, December 12, 2022 Council Chamber, City Hall Regular Meeting 5:30 p.m. Tuesday, December 20, 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).

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 December 6, 2022 meeting(s) of the Pismo Beach City Council was posted on December 1, 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 12-6-2022

PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.A

`
SUBJECT/TITLE:

ADOPTION OF MEETING MINUTES
RECOMMENDATION:

1.Adopt Minutes of the September 14, 2022 Joint Meeting.

2.Adopt Minutes of the November 15, 2022 Closed and 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. Draft Minutes of the September 14, 2022 Joint Meeting

2.Draft Minutes for November 15, 2022
Submitted by: Erica Inderlied, City Clerk Meeting Date: December 6, 2022 City Manager Approval:

Council Agenda 12-6-2022 9.A-1
Packet Page 1

ACTION MINUTES

ARROYO GRANDE CITY COUNCIL

GROVER BEACH CITY COUNCIL

PISMO BEACH CITY COUNCIL

JOINT CITY COUNCIL SPECIAL MEETING
WEDNESDAY, SEPTEMBER 14, 2022
SOUTH COUNTY REGIONAL CENTER, 800 WEST BRANCH STREET

ARROYO GRANDE, CALIFORNIA

Given the continuation of COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was conducted in a hybrid in-person/virtual format.

1. CALL TO ORDER
Grover Beach Mayor Jeff Lee called the meeting to order at 6:00 p.m.

2. MOMENT OF SILENCE

3. FLAG SALUTE

4. ROLL CALL
Arroyo Grande: Council Members Keith Storton, Jimmy Paulding, Mayor Pro Tem Lan George, and Mayor Caren Ray Russom were present. Council Member Kristen Barneich was absent.

Grover Beach: Council Members Anna Miller, Robert Robert, Daniel Rushing, Mayor Pro Tem Karen Bright, and Mayor Jeff Lee were present.

Pismo Beach: Council Members Marcia Guthrie, Scott Newton, Mayor Pro Tem Mary Ann Reiss, and Mayor Ed Waage were present. Council Member Sheila Blake was present via Zoom at 5:45p.m.

Staff Present: City Managers Whitney McDonald, Matthew Bronson, and James R.

Lewis. City Clerks Jessica Matson, Wendi Sims, and Erica Inderlied.

City Attorneys Timothy Carmel, David Hale, and David Fleishman.

5. WELCOME AND MEETING ORIENTATION
Mayor Lee provided a brief introduction and outline of proceedings.

Pismo Beach Council Member Sheila Blake joined the meeting via zoom.

Council Agenda 12-6-2022 9.A-2
Attachment 1
Packet Page 2

Minutes: Joint City Council Page 2
Wednesday, September 14, 2022

6. PROJECT OVERVIEW
Justin Pickard, Water Systems Consulting, provided an overview of the Central Coast Blue Project which included information on how the facility and technology will work.

7. WATER SUPPLY DRIVERS & PROJECT BENEFITS
Jeff Szytel, Water Systems Consulting, provided information of the water supply drivers and project benefits including why the project is critical for the long-term sustainability of the communities.

COUNCIL QUESTIONS
Arroyo Grande Mayor Caren Ray Russom, facilitated Council questions.

Justin Pickard, Water Systems Consulting, responded to questions from Council regarding the microfiltration process resulting in a near distilled water quality; the advanced water purification facility tanks that are being used for chemicals and whether they are the same tanks being used for stabilization at the end of the process; any odor during the purification process that would need to be mitigated; that the facility is being designed to support Phase II of the project; what permits will be necessary; and the level of waste discharge.

8. COSTS AND FUNDING Justin Pickard, Water Systems Consulting Justin Pickard, Water Systems Consulting, provided an overview of the current capital cost estimate.

COUNCIL QUESTIONS
Pismo Beach Mayor Ed Waage facilitated Council questions.

Justin Pickard, Water Systems Consulting, responded to questions from Council regarding grant funding and financing opportunities; construction cost increases for the Project; and value engineering as it relates to reducing construction costs.

Grover Beach City Manager Matthew Bronson responded to a question regarding Prop 218 votes as it relates to rates and charges.

9. PROJECT GOVERNANCE
Arroyo Grande City Manager Whitney McDonald provided a high-level overview of the governance structure of the Project.

10. PROJECT SCHEDULE
Justin Pickard, Water Systems Consulting, provided an overview of the current Project schedule.

COUNCIL QUESTIONS
Grover Beach Mayor Jeff Lee facilitated Council questions.

Staff responded to questions regarding local hire provisions; unused water by each party; and the Project schedule.

Pismo Beach Council Member Sheila Blake left the meeting at 7:30 p.m. and rejoined the meeting at 7:34 p.m.

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Attachment 1
Packet Page 3

Minutes: Joint City Council Page 3
Wednesday, September 14, 2022

11. PUBLIC COMMENT
Grover Beach Mayor Jeff Lee facilitated public comments.

Speaking from the public were Jeff Edwards, Jocelyn Brennan, Cynthia Replogle, Brad Snook, Manley McNinch, Julie Tacker, Rick Jenne, and Scott Zimmerman.

Arroyo Grande City Manager Whitney McDonald responded to a question from Council regarding water conservation efforts.

12. CLOSING COUNCIL COMMENTS
Arroyo Grande Mayor Caren Ray Russom, Pismo Beach Mayor Ed Waage, Arroyo Grande Council Member Jimmy Paulding, Grover Beach Council Member Daniel Rushing, and Grover Beach Mayor Jeff Lee, provided closing comments.

13. PRESENTATION OF TITLE XVI GRANT
Ernest Conant, U.S. Bureau of Reclamation, presented the Title XVI Grant to the Mayors.

14. PROJECT COMMITMENT SIGNING

15. ADJOURNMENT
There being no further business to come before the City Councils, Grover Beach Mayor Jeff Lee adjourned the meeting at 8:16 p.m.

________________________
Caren Ray Russom, Arroyo Grande Mayor Jeff Lee, Grover Beach Mayor

ATTEST: ATTEST:

________________________
Jessica Matson, Arroyo Grande City Clerk Wendi Sims, Grover Beach City Clerk

________________________
Ed Waage, Pismo Beach Mayor

ATTEST:

________________________
Erica Inderlied, Pismo Beach City Clerk

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Attachment 1
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DRAFT MINUTES
Pismo Beach City Council
Tuesday, November 15, 2022

Special Closed Session—5:00 p.m.

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

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

CALL TO ORDER: Mayor Waage called the meeting to order at 5:00 p.m.

1. ROLL CALL:

Present: Absent:

Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Sheila Blake
Council Member Marcia Guthrie (via teleconference)
Council Member Scott Newton

Staff Present:

Benjamin Fine, Public Works Director/City Engineer
David Fleishman, City Attorney
Jorge Garcia, Assistant City Manager
James R. Lewis, City Manager

2. PUBLIC COMMENT PERIOD

Call for public comment: No comment.

3. ANNOUNCEMENT OF CLOSED SESSION ITEMS

City Attorney Fleishman announced the Closed Session items listed below.

Item 3.A: Conference with Labor Negotiators (Government Code §54957.6) Agency designated representatives: James R. Lewis
Employee organization: Pismo Beach Police Officers Association (POA)

Item 3.B: Conference with Legal Counsel – Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code §54956.9: One potential case
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4. CLOSED SESSION REPORT

City Attorney Fleishman would report in the next regular open session that no reportable action was taken on the above items.

5. ADJOURNMENT
At 5:25 p.m., to the 5:30 p.m. Regular Meeting.

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Attachment 2
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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: 5:40 p.m.

1. ROLL CALL:

Present: Absent:

Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Sheila Blake
Council Member Marcia Guthrie (via teleconference)
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

Public Works Director Fine led the Pledge of Allegiance.

3. ACCEPTANCE OF AGENDA

No requests to reorder the agenda.

4. PRESENTATIONS

Item 4.A: Presentation: US 101 Pismo Congestion Relief Project Update (SLOCOG)

Presented by Stephen Hanamaikai, Madeline Jacobson, and Paul Valadao, San Luis Obispo Council of Governments.

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5. PUBLIC COMMENT PERIOD

Call for public comment: No comment.

6. CITY MANAGER’S REPORT

City Manager Lewis commented on various topics.

7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT

City Attorney Fleishman reported that the Council had taken no reportable action during its 5:00 p.m. Closed Session.

8. COUNCIL COMMITTEE REPORTS

The Council reported on recent and upcoming meetings of various external bodies:

Council Member Newton:

San Luis Obispo County Integrated Waste Management Authority (IWMA) Board.

San Luis Obispo County Air Pollution Control District (APCD) Board.

Pismo Beach Conference and Visitors Bureau (CVB) Board / Lodging Business Improvement District (LBID) Advisory Board.

Mayor Waage:

San Luis Obispo County Community Fire Safe Council.

9. CONSENT CALENDAR

Call for public comment: No comment.

Action: Adopt Consent Calendar.

Motion: Blake
Second: Newton

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

Ayes: 5 Blake, Newton, Guthrie, Reiss, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

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

Adopt Minutes of the November 1, 2022 Closed and Regular Meetings.

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

Recommendation:

1. Approve the Summary of Payroll Register for October 23, 2022;

2. Approve the Register of Demands for October 21, 2022.

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

Recommendation:

Receive reports as information only.

Item 9.D: Update on March 16, 2020 and January 12, 2017 Emergency Proclamations (Inderlied)

Recommendation:

No action required; information only.

Item 9.E: Acceptance of Grant Funds Allocated by the Office of Traffic Safety (OTS) and Authorization of Purchase of One Extrication System and Airbags from LN Curtis (Lee)

Recommendation:

Adopt a Resolution authorizing the acceptance of grant funds in the amount of $46,000 from the Office of Traffic Safety, and the purchase of an extrication system and airbags from LN Curtis, and appropriating related budget adjustments in Fiscal Year 2023.

Legislative Record: Resolution R-2022-097 adopted.

Item 9.F: Traffic Safety Committee Recommendations to City Council (Fine)

Recommendation:

1. Adopt a Resolution authorizing the installation of up to 3 pedestrian and bicycle symbolled signs, up to 3 “yield to pedestrians” signs, and up to 3 “bikes reduce speed” signs along the Shell Beach Road multi-use path;

2. Receive a report on the items considered at the most recent Traffic Safety Committee meeting.

Legislative Record: Resolution R-2022-098 adopted.

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Attachment 2
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Item 9.G: Notice of Completion for the Bello Street Bridge Replacement Project (Fine)

Recommendation:

Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the Bello Street Bridge Replacement Project.

Item 9.H: Acceptance of Selective Traffic Enforcement Program (STEP) Funding Award From the Office of Traffic Safety (Smith)

Recommendation:

Adopt a Resolution accepting grant funds in the amount of $55,000 from the California Office of Traffic Safety, and appropriating $55,000 in grant revenues and $55,000 in various costs in the General Fund Police Department budget in FY 2023.

Legislative Record: Resolution R-2022-099 adopted.

Item 9.I: 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

Item 11.A: Adoption (Second Reading) of an Ordinance that Adopts by Reference and Amends the Latest Editions of the Constituent Codes of the California Building Standards Code, Makes Findings of Fact to Support the Amendments, and Makes a Determination of Exemption Under the California Environmental Quality Act (Downing)

Recommendation:

1. Conduct a public hearing to receive input;
Council Agenda 12-6-2022 9.A-10
Attachment 2
Packet Page 10

2. Adopt an Ordinance amending Titles 8 and 15, Chapters 8.04, 8.08,

15.04, and 15.08 of the Pismo Beach Municipal Code; adopting by reference codes comprising the 2022 California Building Standards Code (California Code of Regulations, Title 24, Parts 1-12), including the California Fire Code (2022 Edition, incorporating and amending the 2021 International Fire Code); the California Building Code Volumes 1 and 2 (2022 Edition, incorporating and amending the 2021 International Building Code), the California Residential Code (2022 Edition, incorporating and amending the 2021 International Residential Code), the California Electrical Code (2022 Edition, incorporating and amending the 2020 National Electrical Code), the California Mechanical Code (2022 Edition, incorporating and amending the 2021 Uniform Mechanical Code, the California Plumbing Code (2022 Edition, incorporating and amending the 2021 Uniform Plumbing Code), the California Energy Code (2022 Edition), the California Historical Building Code (2022 Edition), the California Green Building Standards Code (2022 Edition), and the 2021 International Property Maintenance Code together with certain amendments thereto; adopting findings of facts to support the imposition of requirements other than those of the California Building Standards Code, and making a determination of exemption under CEQA.

Presenting staff:

Matt Downing, Community Development Director
James R. Lewis, City Manager

Public Hearing / Call for public comment: No comment.

Action: Adopt an Ordinance amending Titles 8 and 15, Chapters 8.04, 8.08,

15.04, and 15.08 of the Pismo Beach Municipal Code; adopting by reference codes comprising the 2022 California Building Standards Code (California Code of Regulations, Title 24, Parts 1-12), including the California Fire Code (2022 Edition, incorporating and amending the 2021 International Fire Code); the California Building Code Volumes 1 and 2 (2022 Edition, incorporating and amending the 2021 International Building Code), the California Residential Code (2022 Edition, incorporating and amending the 2021 International Residential Code), the California Electrical Code (2022 Edition, incorporating and amending the 2020 National Electrical Code), the California Mechanical Code (2022 Edition, incorporating and amending the 2021 Uniform Mechanical Code, the California Plumbing Code (2022 Edition, incorporating and amending the 2021 Uniform Plumbing Code), the California Energy Code (2022 Edition), the California Historical Building Code (2022 Edition), the California Green Building Standards Code (2022 Edition), and the 2021 International Property Maintenance Code together with certain amendments thereto; adopting findings of facts to support the imposition of requirements other Council Agenda 12-6-2022 9.A-11
Attachment 2
Packet Page 11

than those of the California Building Standards Code, and making a determination of exemption under CEQA.

Motion: Blake
Second: Newton

Vote: The motion passed on the following vote:

Ayes: 5 Blake, Newton, Guthrie, Reiss, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

Legislative Record: Ordinance O-2022-008 adopted.

12. BUSINESS ITEMS

Item 12.A: Water Supply Update (Fine)

Recommendation:

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

2. Discuss the purchase of additional drought buffer and provide staff with direction on how to proceed.

Presenting staff:

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

Call for public comment:

Mel Stahlman commented.

Action: Direct staff to pursue “Option B” as outlined in staff’s report, to include increasing the City’s drought buffer allocation from 1,240 acre-feet per year to 3,192 acre-feet per year, with the goal of being able to take delivery of 1,800 acre-feet of water when State Water Project deliveries are set to 20%, and resulting in a total contracted amount of 4,432 acre-feet per year.

Motion: Reiss
Second: Blake

Vote: The motion passed on the following vote:

Ayes: 5 Reiss, Blake, Guthrie, Newton, Waage
Noes: 0

Absent: 0
Council Agenda 12-6-2022 9.A-12
Attachment 2
Packet Page 12

Abstain: 0
Recused: 0

Item 12.B: Options for the Pier Avenue Stairs (Fine)

Recommendation:

Review options for the Pier Avenue Stairs and provide staff with direction on how to proceed.

Presenting staff:

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

Call for public comment:

Tom Reilly commented.

Action: Direct staff to pursue removal of the Pier Avenue Stairs, including any contract change orders needed to effectuate the removal, and pursue a long-term partnership with state and/or federal agencies for the rehabilitation of the adjacent bluff corridor.

Motion: Newton
Second: Blake

Vote: The motion passed on the following vote:

Ayes: 5 Newton, Blake, Guthrie, Reiss, Waage
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

Item 12.C: Consideration of Feasibility of a Permanent Outdoor Dining Study (Downing)

Recommendation:

Provide direction to staff on the implementation of an outdoor dining program, if desired.

Presenting staff:

Matt Downing, Community Development Director
James R. Lewis, City Manager

Call for public comment:

Council Agenda 12-6-2022 9.A-13
Attachment 2
Packet Page 13

Mike Frey commented.

Sean Corpuel commented.

Tami Corpuel commented.

Ross Currie commented.

Steve Norwood commented.

Mark Woolpert commented.

Don Day commented.

Action: No action.

Item 12.D: Technology Master Plan for FY 2023 Through FY 2028 (Feeser)

Recommendation:

Review and approve the City of Pismo Beach Technology Master Plan for FY 2023 through FY 2028.

Presenting staff:

Nadia Feeser, Administrative Services Director
James R. Lewis, City Manager

Guest presenters:

David Krout, ClientFirst Technology Consulting
Tom Jakobsen, ClientFirst Technology Consulting

Call for public comment: No comment.

Action: Approve the City of Pismo Beach Technology Master Plan for FY 2023 through FY 2028.

Motion: Waage
Second: Blake

Vote: The motion passed on the following vote:

Ayes: 5 Waage, Blake, Guthrie, Newton, Reiss
Noes: 0

Absent: 0
Abstain: 0
Recused: 0

13. CITY COUNCIL COMMENTS AND REQUESTS

Consensus to agendize consideration of revising the policy direction given on November 1, 2022, relating to the development of residential sidewalks by project applicants.

Council Agenda 12-6-2022 9.A-14
Attachment 2
Packet Page 14

14. ADJOURNMENT

At 8:39 p.m.

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 12-6-2022 9.A-15
Attachment 2
Packet Page 15

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

PAYROLL REGISTER AND REGISTER OF DEMANDS
RECOMMENDATION:

1. Approve the Summary of Payroll Register for November 6, 2022, and November 20, 2022.

2. Approve the Register of Demands for October 28, 2022, and November 4, 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.Payroll Summary

2. Registers of Demands
Submitted by: Meeting Date: December 6, 2022
Nadia Feeser, Administrative Services Director / City Treasurer City Manager Approval:

Council Agenda 12-6-2022 9.B-1
Packet Page 16

FOR PERIOD ENDING 11/06/22
CHECKS DATED 11/11/22
PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 556910 ‐ 556913 4
ACH 125

EARNINGS
REGULAR 362,782.50
HOLIDAY 6,935.89
OVERTIME (Includes Comp Time Payouts)12,164.53
Administration 422.90
Building ‐
Conference & Visitors Bureau 270.12
Police Department 7,518.20
Parking ‐
Engineering ‐
Fire ‐
Recreation 118.69
Public Works 729.08
Water 1,620.15
Wastewater 1,485.39
Motor Vehicles
Subtotal‐Overtime 12,164.53$
SALARY ADJUSTMENTS ‐
TRAINING / UNIFORM ALLOWANCE 1,040.50
OTHER EARNINGS 17,302.87
$400,226.29
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX 38,943.26
FICA & MEDICARE 25,491.10
STATE INCOME TAX 13,887.52
STATE DISABILITY INSURANCE 3,628.88
GARNISHMENTS 461.53
HEALTH 1,817.42
SUPPLEMENTAL DISABILITY 1,480.48
SECTION 125 2,110.65
PERS 34,144.60
DEFERRED COMPENSATION 11,852.22
ADDITIONAL LIFE INSURANCE 296.17
UNION DUES 2,475.15
PISMO ATHLETIC CLUB 182.50
OTHER
NET PAYROLL $263,454.81
DIRECT DEPOSIT DEDUCTION 261,261.14
NET PAYROLL AFTER ACH DEPOSIT 2,193.67
SUMMARY PAYROLL REGISTER
Council Agenda 12-6-2022 9.B-2
Attachment 1
Packet Page 17

FOR PERIOD ENDING 11/20/22
CHECKS DATED 11/25/22
PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 556914 ‐ 556917 4
ACH 120

EARNINGS
REGULAR 358,999.29
HOLIDAY 5,368.47
OVERTIME (Includes Comp Time Payouts)12,576.53
Administration 46.99
Building
Conference & Visitors Bureau
Police Department 9,853.71
Parking
Engineering
Fire
Recreation
Public Works 616.84
Water 1,193.68
Wastewater 865.31
Motor Vehicles
Subtotal‐Overtime 12,576.53$
SALARY ADJUSTMENTS ‐
TRAINING / UNIFORM ALLOWANCE 210.00
OTHER EARNINGS 15,452.65
$392,606.94
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX 37,928.23
FICA & MEDICARE 25,773.70
STATE INCOME TAX 13,766.89
STATE DISABILITY INSURANCE 3,344.50
GARNISHMENTS 461.53
HEALTH 1,817.42
SUPPLEMENTAL DISABILITY 1,480.48
SECTION 125 2,110.65
PERS 32,088.43
DEFERRED COMPENSATION 11,852.22
ADDITIONAL LIFE INSURANCE 296.17
UNION DUES 2,502.55
PISMO ATHLETIC CLUB 207.50
OTHER
NET PAYROLL $258,976.67
DIRECT DEPOSIT DEDUCTION 257,139.99
NET PAYROLL AFTER ACH DEPOSIT 1,836.68
SUMMARY PAYROLL REGISTER
Council Agenda 12-6-2022 9.B-3
Attachment 1
Packet Page 18

City of Pismo Beach
Final Disbursement List Check Date 10/28/2022

US BANK
ACH/Vendor Check Check
Check#Number Payee Date Amount Description
ACH 10002 Internal Revenue Service 10/28/2022 96,607.50$ Federal Income Tax PD 10/28/22 ACH 10371 Visit SLO County 10/28/2022 243,891.10 TMD Payments Aug 2022 ACH 11224 Richards, Watson, Gershon Attorneys At Law 10/28/2022 38,114.99 Legal Services Aug 2022 ACH 11305 Public Employees Retirement System 10/28/2022 69,618.61 PERS Retirement EE & ER PD 10/28/22 ACH 12305 Franchise Tax Board 10/28/2022 18,306.22 SDI & State Income Tax PD 10/28/22 ACH 12360 CalPERS 457 Plan 10/28/2022 291.67 PERS 457 Deferred Comp PD 10/28/22 ACH 12708 dba: Mission Square ICMA Retirement Trust-Roth IRA 10/28/2022 510.00 ICMA Roth IRA PD 10/28/22 ACH 12944 Leaf 10/28/2022 1,231.19 Monthly Copier Lease Oct 2022 ACH 12260 dba: Mission Square ICMA Retirement Trust - 457 10/28/2022 23,071.80 ICMA 457 Deferred Comp PD 10/28/22 ACH 14257 Igoe Administrative Services 10/28/2022 5,684.09 IGOE FSA & DDS Reimbursement Oct 2022 123948 10446 Achievement House, Inc. 10/28/2022 13,625.00 Sidewalk Cleaning Services - July & August 2022 123949 14123 Amazon Business 10/28/2022 212.94 Office Supplies 123950 13460 AT&T Mobility 287284035974 10/28/2022 1,161.72 Cell Phone Services - September 2022 123951 14363 AT&T Mobility 287314925891 10/28/2022 80.48 iPad Service- September 2022 123952 11589 Austin's Wet Pets and Pond Maintenance, Inc 10/28/2022 140.00 Pond Maintenance Chapman - September 2022 123953 10295 B & B Steel & Supply 10/28/2022 218.52 PD - Maintenance 123954 14448 David Blanchard 10/28/2022 238.00 M&IE: Internal Affairs Training 10/31-11/3/22 123955 10028 Brisco Mill & Lumber Yard 10/28/2022 554.95 Maintenance Supplies 123956 13269 Bianka Buchanan 10/28/2022 279.25 M&IE: JPIA Risk MGMT Conference 10/5/22-10/7/22 123957 14402 Carol A. Burner 10/28/2022 866.66 900 Bello Lease - Nov 2022 123958 10947 California Code Check 10/28/2022 70.00 Business License # 12591 Renewal Refund 123959 11523 California Fresh Market 10/28/2022 95.00 Business License # 15926 Renewal Refund 123960 14414 California State Disbursement Unit 10/28/2022 461.53 Garnishment Flat DCSS PD 10/28/22 123961 11451 Channel Islands Technology Integrators' Group 10/28/2022 7,708.34 IT Subscriptions Sept 2022 123962 11373 Cherry Lane Nursery 10/28/2022 184.04 Plants - Parks Maintenance 123963 14382 CleanStreet, LLC 10/28/2022 27,325.24 Street Sweeping Services - August & September 2022 123964 11231 Coastal Peaks Coffee 10/28/2022 78.00 Coffee Supplies 123965 12156 County Of San Luis Obispo 10/28/2022 874.00 Chargeable Report Writing & Correspondence July/Aug 2022 123966 11986 Culligan/Central Coast Water 10/28/2022 311.00 Car Wash Filtration 9/19/22 123967 14442 Kerri Donis 10/28/2022 3,000.00 Landscape Bond Refund B21-000256 123968 12541 Engel & Gray Inc 10/28/2022 7,209.17 Composting Biosolids - Sept 2022 123969 12589 Ferguson Enterprises, Inc. 10/28/2022 3,329.49 Air/Vac Replacements for Shell Beach Force Main 123970 11868 FGL Environmental 10/28/2022 63.00 Inorganic Analysis & Misc Analysis 9/6/22 123971 12700 Russ Fleming 10/28/2022 308.00 M&IE/Mileage: CRWA Water Treatment Cert. Review 10/26-10/27/22 123972 13874 Full Spectrum Powder Coating 10/28/2022 110.00 Chapman Estate Maintenance 123973 10922 Galls LLC 10/28/2022 6,544.01 PD Shields
123974 13371 GHD Inc. 10/28/2022 32,048.25 Public Safety Center - Turning Radius Study 123975 14449 Zachary Holback 10/28/2022 250.00 Deposit Refund: DCP Event 9/23/22 123976 13628 Horizon West Auto Glass 10/28/2022 231.36 PK031 Windshield Service 123977 14246 Hunter Smith Architecture 10/28/2022 10,948.00 City Hall/, Corp Yard & Chapman Estate Remodel Projects CM Sept 2022 123978 13276 InfoSend, Inc. 10/28/2022 1,107.13 Data Processing-Printing-Mailing City's Utility Bills Sept 2022 123979 13385 IPS Group, Inc. 10/28/2022 2,061.55 IPS Transaction Fees - Sept 2022 123980 UB*00946 JJ CLARK ENTERPRISES 10/28/2022 1.00 Refund Check 010064-000, 519 FIVE CITIES 123981 10612 Andrew Jones 10/28/2022 350.00 3rd Qtr 2022 PC Meeting Attendance Stipend 123982 UB*00947 MIRANDA & MICHAEL JOSEPH (T) 10/28/2022 67.92 Refund Check 017685-000, 327 ESPARTO 123983 10474 Joseph Wolosz 10/28/2022 6,500.00 Wolosz Parking Lot Lease - Nov 2022 123984 11833 Keylock Security Specialists 10/28/2022 1,244.37 Maintenance Supplies 123985 12032 Kimball Midwest 10/28/2022 614.18 Shop Tools 123986 12694 Landscape Structures Inc. 10/28/2022 20,556.37 Three Bay Arch Swing Set Frames 123987 13416 Phoenix Resolutions, Inc Mail Plus 10/28/2022 18.72 Shipping 123988 14401 Barbara L. Maraist 10/28/2022 866.67 900 Bello Lease - Nov 2022 123989 14042 Merjan Enterprises, Inc. 10/28/2022 70,982.10 Security and Community Camera Equipment and Services 123990 13836 Mesa Energy Systems, Inc 10/28/2022 550.00 Services for City Hall First Floor Cooling System 123991 13565 Miller Event Management, Inc 10/28/2022 304.00 Security - PBVH Event 10/22/22 123992 10097 Miners Hardware 10/28/2022 1,518.71 Maintenance Supplies 123993 UB*00945 NICK MOTIL (T) 10/28/2022 57.37 Refund Check 008742-000, 397 FRANKLIN 123994 14269 Municipal Maintenance Equipment, Inc 10/28/2022 79,987.18 Electric Utility Vehicle for Parking Department 123995 14446 Elizabeth Nielsen 10/28/2022 250.00 Deposit Refund: DCP Event 10/09/22 123996 14343 ODP Business Solutions, LLC 10/28/2022 385.91 Office Supplies 123997 12070 Michelle Pearson 10/28/2022 390.69 M&IE/Mileage: AFSS Quarterly Meeting 9/22/22-9/23/22 123998 12022 Pismo Beach Police Officer's Association 10/28/2022 1,629.16 POA Dues PD 10/28/22 123999 14403 Betty J. Pratt 10/28/2022 866.67 900 Bello Lease - Nov 2022 124000 14079 Clare Malone Prichard 10/28/2022 350.00 3rd Qtr 2022 PC Meeting Attendance Stipend 124001 12335 Procare Janitorial Supply Inc 10/28/2022 2,136.24 Janitorial Supplies 124002 10817 PRP Co Dba PRP Companies 10/28/2022 1,918.74 Balance - Annual Shirt/Sweatshirt Order 124003 UB*00948 RYAN & KAREN RICHMOND 10/28/2022 82.27 Refund Check 018889-000, 711 BELLO 124004 11266 San Luis Auto Parts Inc 10/28/2022 791.42 Vehicle Maintenance 124005 11208 SEIU Local 620 AFL/CIO 10/28/2022 845.46 SEIU Dues PD 10/28/22 124006 11133 Dominique Simonian 10/28/2022 200.00 Cash for Grass - 319 Morro 124007 10913 Siteone Landscape Supply LLC 10/28/2022 147.43 Supplies - Parks 124008 10096 SLO County Auditor-Controller Treasurer 10/28/2022 1,132.14 2022/2023 Property Tax 124009 10533 SLO County Sheriff Department 10/28/2022 4,600.00 Annual Bomb Task Force Contribution FY 22/23 124010 13782 Spectre Security Inc. 10/28/2022 4,880.00 Clam Festival Security 2022 124011 12031 Stanley Convergent Security Solutions 10/28/2022 778.78 Monthly Security & Fire Monitoring Nov 2022 124012 12629 Tetra Tech Inc 10/28/2022 1,052.50 Map Checking - June 2022 124013 12321 The Gas Company 10/28/2022 1,761.83 Gas Service 09/20/22 - 10/19/22 124014 12301 TK Elevator 10/28/2022 444.09 Elevator Servicing - City Hall 10/01/22 - 12/31/22 Council Agenda 12-6-2022 9.B-4
Attachment 2
Packet Page 19

City of Pismo Beach
Final Disbursement List Check Date 10/28/2022

US BANK
ACH/Vendor Check Check
Check#Number Payee Date Amount Description
124015 13905 Tripepi, Smith and Associates, Inc 10/28/2022 1,260.00 General Public Outreach and Education Sept 2022 124016 10971 Tuckfield & Associates 10/28/2022 6,037.50 Water and Wastewater Rate Study - Sept 2022 124017 12620 Uline 10/28/2022 2,860.74 Industrial Racks for New Corp Yard 124018 14095 Reed Van Rozeboom 10/28/2022 300.00 3rd Qtr 2022 PC Meeting Attendance Stipend 124019 14034 Vital Records Holdings, LLC 10/28/2022 119.95 Document Storage Oct 2022 124020 12527 Water Systems Consulting Inc 10/28/2022 622.50 Level 1 Water Validation - Sept 2022 124021 14273 Shauna Wills 10/28/2022 250.00 3rd Qtr 2022 PC Meeting Attendance Stipend 124023 10014 United States Postal Service 10/28/2022 1,000.00 Postage for permit #BR 22-001 Total 839,734.41
Council Agenda 12-6-2022 9.B-5
Attachment 2
Packet Page 20

City of Pismo Beach
Final Disbursement List Check Date 11/04/2022

US BANK
ACH/Vendor Check Check
Check#Number Payee Date Amount Description
124024 10434 Abalone Coast Analytical Inc 11/04/2022 540.00$ Water Analysis 124025 12275 Airgas West Inc 11/04/2022 195.91 Water Supplies - Santa Fe Valves 124026 11882 Alexander's Contract Services Inc 11/04/2022 3,795.85 Water Meter Reading Services Oct 2022 124027 12433 Alpha Electrical Service Inc 11/04/2022 1,397.50 Electrical Repairs Service Call 124028 11382 Applied Technology Group, Inc. 11/04/2022 531.43 WT151 Replacement VHF Analog/Digital Radio 124029 10147 Arrowhead Scientific, Inc 11/04/2022 340.27 Evidence Supplies 124030 12282 ASCE Membership 11/04/2022 310.00 ASCE Annual Membership - B. Fine 124031 14443 Asphalt Armour Materials, LLC 11/04/2022 3,383.34 Blinker Sign & Mounting Kit - James Way & Highland 124032 12261 B & B Overhead Door Co., Inc. 11/04/2022 992.50 Station 63 Roll Up Garage Door Service 124033 10295 B & B Steel & Supply 11/04/2022 694.99 Stainless Steel Plate - Santa Fe Trench 124034 13315 Fiona Jane Bessette 11/04/2022 250.00 Band Review Judge 2022 124035 13314 Ronald Walter Bessette 11/04/2022 250.00 Band Review Judge 2022 124036 14453 Cindy Blankenburg 11/04/2022 250.00 Refund for Clam Festival Booth 124037 14119 Boone Printing & Graphics, Inc. 11/04/2022 802.29 Pismo Voice Brochures 124038 14454 John P. Bremis III 11/04/2022 250.00 Band Review Judge 2022 124039 10074 Burdine Printing 11/04/2022 236.18 Printing Services - Rec 124040 12098 Burke & Pace Lumber of Arroyo Grande 11/04/2022 80.17 Framing Supplies - 330 Main 124041 13325 Fred Cadiente 11/04/2022 250.00 Band Review Judge 2022 124042 10389 CALEA 11/04/2022 7,590.00 LE & Communications Annual Continuation Fees 124043 10269 Carquest Auto Parts 11/04/2022 357.82 Vehicle Maintenance Supplies 124044 11542 CCI Central Inc 11/04/2022 185.35 Ink Cartridge for Postage Machine 124045 11451 Channel Islands Technology Integrators' Grou 11/04/2022 18,148.33 Monthly Help Desk Oct 2022 124046 13893 Charles P. Crowley Company, Inc 11/04/2022 498.52 Odor Control 124047 11231 Coastal Peaks Coffee 11/04/2022 152.50 Coffee Supplies 124048 14146 Pamela Ann Coslick 11/04/2022 64.00 Instructor: Tae Kwon Do 10/5 - 10/26/2022 #11018 124049 14202 Crisp Imaging 11/04/2022 143.67 Palisades Park Sign 124050 13386 Cuesta Polygraph & Investigations, LLC. 11/04/2022 2,970.00 Pre Employment Background/Polygraph Tests 124051 11986 Culligan/Central Coast Water 11/04/2022 216.00 Car Wash Filtration 10/17/22 124052 12307 Department Of Justice 11/04/2022 879.00 Livescan Services - Aug & Sept 2022 124053 11469 Eikhof Design Group Inc 11/04/2022 920.00 Development Review - Sept 2022 124054 14383 Ellison Schneider Harris & Donlan LLP 11/04/2022 1,555.00 Water Counsel Services for September 2022 124055 11059 Emergency Vehicle Group Inc 11/04/2022 251.65 FDE63 Hose Reel Air Valve 124056 13586 Famcon Pipe & Supply Inc. 11/04/2022 2,269.61 Maintenance Supplies - Heights II Booster 124057 12123 Farm Supply 11/04/2022 151.67 Parks Maintenance - Supplies 124058 12587 FedEx 11/04/2022 98.00 Shipping
124059 11868 FGL Environmental 11/04/2022 690.00 Organic Analysis & Misc Field Testing 10/4/22 124060 11917 First American Title 11/04/2022 750.00 Title Report - 581 & 585 Dolliver 124061 13669 Frontal Security Services of California 11/04/2022 175.00 Security - PBVH Event 10/16/22 124062 13310 Rachel L Grant Kiley 11/04/2022 250.00 Band Review Judge 2022 124063 10751 Haaker Equipment Company 11/04/2022 1,538.92 Brush Set for Pier Plaza Scrubber 124064 11977 Dan Hall 11/04/2022 459.20 Instructor: Yoga 9/26 - 10/31/2022 #11032 124065 11412 Harvey's Honey Huts 11/04/2022 4,150.16 Portable Toilets - Chapman Sept & Oct 2022 124066 13311 Arthur J. Jr. Holton 11/04/2022 250.00 Band Review Judge 2022 124067 13312 Kathy M Holton 11/04/2022 250.00 Band Review Judge 2022 124068 13679 KC Partners Corp 11/04/2022 131.65 Diesel Fuel Tank Service 124069 14419 Catherine Lemoine 11/04/2022 360.00 Instructor: Acrylic Painting 10/27/2022 #10998 124070 12019 James Lewis 11/04/2022 303.09 Reimb: Hotel CA City Mgmt Meeting 10/20/22-10/21/22 124071 10175 Life-Assist, Inc. 11/04/2022 837.63 Medical Supplies - Fire 124072 10656 LN Curtis & Sons 11/04/2022 2,063.91 Annual Service - Breathing Air Compressor 124073 12279 McMaster Carr 11/04/2022 590.11 WWTP Supplies 124074 14427 Rubio Medina 11/04/2022 5,290.07 Design Services for the Police Annex Sept 2022 124075 12960 Med-Stops Medical Clinic Inc 11/04/2022 200.00 DMV/DOT Physical 124076 13576 Michael K. Selleck 11/04/2022 250.00 Band Review Judge 2022 124077 13565 Miller Event Management, Inc 11/04/2022 399.00 Security - Pumpkin Event 10/28 & 10/29/22 124078 10097 Miners Hardware 11/04/2022 1,381.23 Maintenance Supplies 124079 13322 Anne Moorefield 11/04/2022 250.00 Band Review Judge 2022 124080 13321 Bob Moorefield 11/04/2022 300.00 Band Review Judge 2022 124081 11172 Mullahey Ford 11/04/2022 222.52 Vehicle Maintenance 124082 14343 ODP Business Solutions, LLC 11/04/2022 1,126.50 Office Supplies 124083 10728 Oilfield Environmental & Compliance, Inc. 11/04/2022 2,685.73 Lab Analysis Sept 2022 124084 10241 Original Watermen, Inc. 11/04/2022 1,572.31 Rash Guards for Firefighters Council Agenda 12-6-2022 9.B-6
Attachment 2
Packet Page 21

City of Pismo Beach
Final Disbursement List Check Date 11/04/2022

US BANK
ACH/Vendor Check Check
Check#Number Payee Date Amount Description
124085 12315 Pacific Gas & Electric Company 11/04/2022 29,530.02 Electricity 9/8/22 - 10/06/22 - Annual True-Up Stmt 124086 10697 Parker Graphic Design 11/04/2022 125.00 Printing Services - Rec 124087 11337 Perry's Electric Motor & Controls, Inc. 11/04/2022 4,024.76 Water Dept Motor Repairs 124088 12335 Procare Janitorial Supply Inc 11/04/2022 345.96 Janitorial Supplies 124089 14201 Procare Medical Supplies 11/04/2022 1,195.00 Safety Supplies 124090 10817 PRP Co Dba PRP Companies 11/04/2022 1,497.07 PD Printing Services 124091 13201 Rincon Consultants, Inc. 11/04/2022 1,201.25 CCB EIR - 5/1/22 - 9/30/22 124092 11266 San Luis Auto Parts Inc 11/04/2022 1,042.67 Vehicle Maintenance Supplies 124093 12516 San Luis Obispo Co. Health Agency 11/04/2022 10,141.00 Animal Shelter Construction Costs 124094 11796 San Luis Powerhouse, Inc. 11/04/2022 766.71 Equipment Maintenance 124095 13994 SBRK Finance Holdings, Inc. 11/04/2022 544.50 CivicPay IVR Transaction Fees Sept 2022 124096 11168 Sherwin-Williams 11/04/2022 906.49 Paint Supplies 124097 13913 Silvas Oil Co., Inc 11/04/2022 9,398.93 Diesel & Unleaded Fuel Delivery 10/6/22 124098 10093 SLO County Auditor-Controller 11/04/2022 10,962.50 Phoenix Parking Surcharges Aug 2022 124099 10533 SLO County Sheriff Department 11/04/2022 750.00 Annual Range Fee FY 22/23 124100 10730 South Coast Emergency Vehicle 11/04/2022 4,623.64 FDE264 Annual Service and Repairs 124101 11722 SP Maintenance Services Inc 11/04/2022 400.00 Outdoor Supply Hardware Water Leak - Sweeping Services 124102 12031 Stanley Convergent Security Solutions 11/04/2022 298.92 Security & Fire Monitoring 11/1/22 - 1/31/2023 124103 11323 Streator Pipe & Supply 11/04/2022 114.71 WWTP Supplies 124104 13319 Danny E Talbert 11/04/2022 250.00 Band Review Judge 2022 124105 13489 Teaman, Ramirez & Smith, Inc. 11/04/2022 4,000.00 Final Billing - Audit 20/21 Single Audit Services 124106 13708 Tenera Environmental 11/04/2022 2,864.89 NPDES Permit Renewal Support Sept 2022 124107 12583 Texas Refinery Corp. 11/04/2022 586.70 MVR Shop Grease Tubes 124108 13442 Thorn Run Partners 11/04/2022 4,000.00 Federal Lobbying Services Oct 2022 124109 12461 TJA Advertising 11/04/2022 88,274.42 CVB & LBID Advertising and Promotion Services Sept 2022 124110 12860 Townsend Public Affairs 11/04/2022 3,500.00 State Lobbying Services Oct 2022 124111 12982 Ultrex Business Products 11/04/2022 30.00 Shipping Charges - Toner 124112 13392 Urban Planning Concepts 11/04/2022 9,546.76 In-house Planning Services Sept 2022 124113 12622 USA Bluebook Acct: 82507 11/04/2022 1,032.58 WW Lab Supplies 124114 14115 Vanir Construction Mgmt, Inc. 11/04/2022 9,128.00 Public Safety Building Sept 2022 124115 13567 Terry James Veal 11/04/2022 250.00 Band Review Judge 2022 124116 10243 WateReuse Association 11/04/2022 1,050.00 Annual Membership 2023 124117 14456 Hilary Watson 11/04/2022 600.00 Live Performance - Boosinger Park Event 10/7/2022 124118 13548 Jodi Weimer 11/04/2022 238.00 M&IE: Basic Peer Support 11/14-11/17/22 Total 280,699.06
Council Agenda 12-6-2022 9.B-7
Attachment 2
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.C

SUBJECT/TITLE:

FISCAL YEAR 2023 FIRST QUARTER FINANCIAL STATUS REPORT

RECOMMENDATION:

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

EXECUTIVE SUMMARY:

This report updates the City Council on the status of Fiscal Year (FY) 2022-23 ending on June 30, 2023, or FY 2023, financial status based on actual revenues and expenditures during the first three months of the fiscal year.

Overall, the City of Pismo Beach’s funds are projected to be financially stable, with sufficient fund balances. The FY 2023 ending General Fund unassigned fund balance is projected to be $10.59 million, which is $4.12 million greater than the FY 2022 ending unassigned fund balance. This increase is largely due to the $4.65 million projected net operating surplus in FY 2023, which contributes to the ending unassigned fund balance.

For most of the City’s other funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2023 Adopted Budget ending fund balances. In all the funds, there are sufficient fund balances and projected revenues to cover projected expenditures.

It should be noted that the FY 2022 actual revenues and expenditures are not yet final as staff continues to confirm those amounts in the process of completing the City’s FY 2022 financial statements. As such, the FY 2023 projected beginning fund balances in this report are not yet final and may change in future reports to reflect the final minor adjustments.

The following sections provide details of the General Fund financial picture, followed by a summary and highlights of the City’s other funds.

I. General Fund Budget Summary
In summary, based on early projections from the first three months of the fiscal year, the General Fund is projected to end FY 2023 with a $10.59 million unassigned fund balance.

The FY 2023 projected $10.59 million unassigned fund balance is $57 thousand less than the FY 2022 Revised Budget. This decrease is attributable to $124 thousand greater projected operating revenues compared to the Revised Budget, offset by a $67 thousand contributions to Reserves.

The unassigned fund balance is used to pay for future one-time investments included in the FY 2023 budget and in the 10-year Capital Improvement Plan. Also, a portion of the unassigned fund balance could be used to help pay for a portion of the Public Safety Facility to help reduce ongoing borrowing costs.

Council Agenda 12-6-2022 9.C-1
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In addition to the General Fund unassigned fund balance, the General Fund includes the Budget Stabilization Reserve set-aside of $2.00 million.

The following table is a summary of the FY 2022 preliminary actuals and the FY 2023 General Fund revised budget, projected actuals, and a variance comparing the budget to projected actuals.

Table 1: FY 2023 General Fund Budget Summary

II. General Fund Beginning Fund Balance
The General Fund beginning fund balance is comprised of two different components:

 the unassigned fund balance, which are funds that are not committed for any specific purpose and could be used for various one-time projects, and  the committed or carryforward fund balance, which are funds that are committed for a specific budgeted use.

As illustrated in the following table, the FY 2022 Adopted Budget General Fund beginning fund balance was projected to be $9.19 million. Based on changes during FY 2022 and carrying forward fund balance to cover previously budgeted but not-yet-spent expenditures, the preliminary estimated fund balance is revised to $25.73 million. This includes $8.47 million of unassigned fund balance and $17.26 million of carryforward fund balances.

A B C D = C - B
($ thousands)
FY 2022
Actuals
FY 2023
Revised
Budget
FY 2023 Year-
End Projected
Actuals
Variance
(Actuals-
Budget)
Unassigned Fund Balance 14,225$ 8,469$ 8,469$ -$ Committed Fund Balance 3,976 17,259 17,259 - Beginning Fund Balance 18,200 25,727 25,727 - Operating Revenues 32,491 32,335 32,460 124 Operating Expenditures 23,404 27,811 27,811 - Net Operating Surplus/(Deficit) 9,087 4,524 4,648 124 One-time Revenues 1,250 281 281 - One-time/Capital Expenditures 3,054 17,998 12,266 (5,732) Ending Fund Balance 25,483$ 12,534$ 18,390$ 5,856$ Unassigned Fund Balance 6,469$ 10,534$ 10,591$ 57$ Committed Fund Balance 17,259 - 5,732 5,732 Contribution to Reserves (245) - 67 67 Budget Stabilitation Set-Aside 2,000 2,000 2,000 - Council Agenda 12-6-2022 9.C-2
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Table 2: FY 2023 General Fund, Beginning Fund Balance
(Preliminary Estimate)

III. General Fund Reserve
The City maintains various General Fund reserves totaling $7.64 million for emergency operations, building depreciation, and risk management. These reserves are crucial in order to avoid disrupting the City’s operations following unanticipated events. The reserves are shown in the table below, followed by a summary of each reserve.

Table 3: General Fund Reserves

Reserve Amount ($ thousands)
General Fund 25% Reserve $6,886
City Building Reserve 500
Risk Management Reserve 250
Total $7,636

General Fund 25% Reserve
The City has adopted a fiscal policy to fund a General Fund Reserve of 25% of General Fund budgeted annual operating expenditures for FY 2023. The General Fund reserve should be equal to $6.953 million, which is 25% of the total FY 2023 budgeted annual operating expenditures of $27.81 million. Currently, the General Fund Reserve is $6.89 million, of which $6.58 is invested in various securities and $308 thousand is pending investment. This reserve allows the City to maintain its operations for a couple of months in the event that an emergency or disaster impacts the City’s finances. The City Treasurer will be investing an additional $67 thousand to meet the 25% operating expenditure budget during FY 2023.

City Building Reserve
The Council created a City Building Reserve of $500 thousand, for the maintenance and upkeep of City facilities and buildings, particularly if funds are not available. This amount is equal to five years of annual depreciation on City-owned buildings.

($ thousands)
Adopted
Budget
Budget
Revisions Actuals
Unassigned Fund Balance 9,185$ (717)$ 8,469$
Capital Funds Carryforward 16,246 16,246
Purchase Orders Carryforward 963 963
Prepayment Carryforward 50 50
Total Fund Balance 9,185$ 16,542$ 25,727$
$17,259
Carryforward
Council Agenda 12-6-2022 9.C-3
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Risk Management Reserve
The City Council established a Risk Management Reserve, contributing $50 thousand each year to budget for unanticipated risk management costs. This reserve has a balance of $250 thousand, which is the maximum contribution level.

IV. General Fund Revenues
The FY 2023 Revised Budget revenues total $32.62 million. FY 2023 projected actual revenues are $32.74 million, or $124 thousand greater than budget. Compared to the previous year, FY 2023 projected actual revenues are $1.00 million, or 3.0% less than FY 2022. This decrease over the prior year is largely due to the one-time revenue of the American Rescue Plan Act of 2021 revenues that were received in FY 2022 in the amount of $976,980 and not projected to be received in FY 2023. The table below summarizes the General Fund revenue budget and projected actual revenues for FY 2023, which is followed by a brief discussion of the top three FY 2023 projected actual sources of revenues.

Table 4: FY 2023 General Fund Revenue Budget and Projected Actuals

 Transient Occupancy Tax (TOT) revenues are projected to be $226 thousand less than budget and are projected to be $226 thousand, or 1.5%, less than the previous year’s TOT revenues. TOT revenues are equal to 11% of the rent charged by all lodging businesses for a person exercising occupancy for 30 consecutive calendar days or less. This decrease in TOT revenues reflects a decrease in TOT revenues received in the first quarter and a projected 1.5% decrease for the year in FY 2023 compared to FY 2022. The following table illustrates the actual TOT revenues A B C D = C - B E = C - A F = C/A-1
($ thousands)
Revenue Category
FY 2022
Actuals
FY 2023
Revised
Budget
FY 2023
Projected
Actuals
Variance
(Projected
Actuals -
Revised
Bdgt)
Variance
(FY23 Proj
Act - FY22
Actuals)
% Variance
(FY23 Proj
Act v FY22
Actuals)
Proj
Actual
% of
Total
Transient Occupancy Tax 17,011$ 16,990$ 16,764$ (226)$ (247)$ -1.5% 51.2% Property Related Taxes 6,480 6,588 6,588 - 108 1.7% 20.1% Sales and Use Tax 4,089 3,650 3,966 316 (123) -3.0% 12.1% Other revenues 1,454 1,853 1,853 - 399 27.4% 5.7% Permits 1,356 1,256 1,204 (53) (153) -11.3% 3.7% Departmental Revenues 625 760 760 - 135 21.6% 2.3% Franchise Taxes 688 631 688 57 - 0.0% 2.1% Business Tax 241 211 241 30 - 0.0% 0.7% Transfers In 140 140 140 - - 0.0% 0.4% Other Finan Sources 47 92 92 - 44 0.0% 0.3% Other Taxes 218 78 78 - (140) -64.2% 0.2% Intergovernmental Revenue 97 48 48 - (49) -50.1% 0.1% Grants 44 38 38 - (6) -14.2% 0.1% Total Operating Revenues 32,491$ 32,335$ 32,460$ 124$ (31)$ -0.1% 99.1% One-time Revenues 1,250 281 281 - (970) -77.6% 0.9% Total Revenues 33,741$ 32,616$ 32,740$ 124$ (1,001)$ -3.0% 100.0% Council Agenda 12-6-2022 9.C-4
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received by month in FY 2023 and FY 2022, showing a decrease of 3.2% compared to the previous year.

Table 5: TOT Revenues for the First Three Months of FY 2023 and FY 2022

Based on data obtained from Smith Travel Research Inc., a provider of competitive benchmarking, information services, and research to the hotel industry, the increase in TOT revenues is primarily due to an increase in room revenue. The average daily rate decreased by 4.4% on average during the first three months of FY 2023 compared to the same period in the prior fiscal year. Occupancy rates during the first three months of FY 2023 remained flat with a slight increase of 0.2% compared to the same period in the prior fiscal year.

Staff projects TOT revenues to reach $16.76 million, which is $247 thousand less than budget and are projected to be $226 thousand, or 1.5%, less than the previous year’s TOT revenues.

 Property related tax revenues are projected to be equal to budget and $108 thousand, or 1.7%, greater than previous year’s property tax related revenues . There are two sources of property related tax revenues:
o Property Tax Assessed Value revenues: equivalent to 1% of assessed values o Property Tax In Lieu of Vehicle License Fees: 1% tax on the market value of a registered vehicle.

Assessed value cannot increase by more than 2.0% per year per Section 2 of Article XIIIA of the California Constitution. However, the San Luis Obispo County Auditor- Controller’s office is projecting assessed values to increase by 4.0%. This reflects supplemental assessments (new construction and change in ownership) and the recovery of Proposition 8 reductions which can increase assessed values over the

2.0% per year rate. About half of the Proposition 8 reductions remain to be recovered, which means property tax revenues should continue to increase above the 2.0% per year rate if property values continue to rise at their current pace.

 Sales and Use Tax revenues are projected to be $316 thousand greater than budget and $123 thousand, or 3.0%, less than the prior year. Sales and use tax revenues are made up of two sources:
o Bradley-Burns uniform sales and use tax, which is a 1.0% tax on taxable sales within the City.
($ thousands)
Month FY 2023 FY 2022 Variance % Change
July 2,289$ 2,354$ (65)$ -2.7% August 1,824 1,886 (61) -3.2% September 1,496 1,553 (57) -3.7% Total 5,610$ 5,792$ -183 -3.2%
Council Agenda 12-6-2022 9.C-5
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o Public safety tax, which is a 0.5% tax on taxable sales for specified public safety purposes.

The Bradley-Burns uniform sales and use tax is expected to be $1 thousand greater than the prior year due to a slight increase in projected sales. Staff will continue to monitor these revenues that may be impacted by a slight economic decline.

The public safety sales tax revenues are budgeted at $106 thousand in FY 2023 and are anticipated to be on budget. This FY 2023 projected amount is $18 thousand less than the FY 2022 public safety sales tax revenues.

In summary, sales and use tax revenues are projected to be $316 thousand greater than budget and $123 thousand, or 3.0%, less than the prior year.

V. General Fund Expenditures
The FY 2023 Revised Budget expenditures total $45.81 million. Operating expenditures are projected to be equal to the Revised Budget based on first quarter expenditures. One- time capital costs are projected to be $5.7 million less than the Revised Budget to reflect the timing of the two-year construction period of the FY 2022 Paving Project.

Total operating expenditures for the first quarter total should be about 25% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 22% of the operating budget has been spent in the first quarter, while only 3% of the one- time capital expenditure budget has been spent in the first quarter. These one-time costs are dependent on the timing of construction of these projects. The table below provides details of actuals as a percentage of budget by expenditure category, followed by explanations of the large variances from the 25% mark.

Table 6: FY 2023 General Fund Expenditure Budget and Projected Actuals

A B C D = C/B E F = B - E
($ thousands)
Expenditure Category
FY 2022
Actuals
FY 2023
Revised
Budget
FY 2023
First Quarter
Actuals
First Quarter
Actuals % of
Budget
FY 2023
Projected
Actuals
Variance
(Revised
Bdgt -
Projected
Actuals)
Proj
Actual
% of
Total
Salaries & Wages 7,685$ 9,186$ 1,966$ 21%9,186$ -$ 22.9% Benefits 5,726 5,776 2,244 39%5,776 - 14.4% Professional Services 3,566 4,631 167 4%4,631 - 11.6% Contract Services 2,533 3,115 1,023 33%3,115 - 7.8% Operations & Maintenance 1,583 1,483 231 16%1,483 - 3.7% Other Expenses 788 1,046 214 20%1,046 - 2.6% Other Financing Uses 125 1,010 109 11%1,010 - 2.5% Transfers Out 503 611 117 19%611 - 1.5% Retiree Medical Insurance 450 475 61 13%475 - 1.2% Debt Service 434 432 - 0%432 - 1.1% Capital Projects 11 46 5 0%46 - 0.1% Total Operating Expenditures 23,404$ 27,811$ 6,138$ 22% 27,811$ -$ 69.4% One-time Capital Costs 3,054 17,998 488 3%12,266 5,732 30.6% Total Expenditures 26,458$ 45,810$ 6,626$ 14% 40,078$ 5,732$ 100.0% Council Agenda 12-6-2022 9.C-6
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Some operating costs that do not reflect consistent monthly spending include:
 Benefits, which includes retirement, health, and other benefits for employees. In order to take advantage of a 3% savings in CalPERS pension costs, the City prepaid the full year of its projected normal CalPERS pension costs. As such, the Benefits expenditure category reflects that 39% of the budget spent in the first quarter.  Contract Services, which reflects that 33% was spent in the first quarter. These costs reflect the prepayment of insurance costs in the first quarter.  Professional Services, which reflects that 4% was spent in the first quarter. These costs are based on the timing of work performed and are not set amounts per month.  Other Financing Uses, which includes a $1.00 million general contingency budget and reflects that only 11% of the budget has been spent in the first quarter. This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures.
 Retiree Medical Insurance costs, which reflects that 13% of budget was spent in the first quarter. The monthly costs are payments to Retirees, but the majority of these payments are contributions to CalPERS for the actuarially determined contribution and are paid toward the end of the fiscal year.

VI. General Fund Contingency Budgets

General Contingency
The FY 2023 Adopted Budget included $1.00 million in the General Fund general contingency account that may be used for various one-time items that come up during the year. Of this amount, $126 thousand of this appropriation was allocated, leaving $874 thousand remaining. Details of the allocation is provided in the following table.

Table 7: FY 2022 General Fund General Contingency Budget

Council Contingency
The FY 2023 Adopted Budget also includes a $5 thousand City Council contingency appropriation that may be used for various one-time items that come up during the year.

None of this contingency has been allocated in the first quarter of FY 2023.

Beginning Balance July 1, 2022 1,000,000$
Appropriations
Janitorial Services (59,984)
Fireworks Waiver July 4, 2022 (5,449)
Street Sweeping agreement (60,488)
Total Appropriations (125,921)
Ending Balance as of September 30, 2022 874,079$
Council Agenda 12-6-2022 9.C-7
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VII. Next Level Budget
The FY 2023 Adopted Budget includes $400 thousand in the General Fund non- department contract services account that may be used for various “next-level” contract services. Of this amount, $396 thousand of this appropriation is allocated, leaving $4 thousand remaining. Details of the allocation is provided in the following table.

Table 8: FY 2023 Next Level Budget

Beginning Balance July 1, 2021 400,000$
Appropriations
Records scanning for Community Development (36,000)
Public Interactive Digital Budget Book and Budget In
Brief (10,000)
Price House Landscaping (35,000)
Pothole repairs (40,000)
Two Maintenance Workers and EV Utility Truck (225,000)
Community Drinking Fountains (50,000)
Total Appropriations (396,000)
Ending Balance as of September 30, 2022 4,000$
Council Agenda 12-6-2022 9.C-8
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VIII. Other Funds
The following table reflects fund balance, projected revenue, and projected expenditure activity in the City’s other funds. For most funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2023 Adopted Budget beginning fund balances.

Table 9: Other Funds

A B C D = B - C E = A + D F G = E - F
Fund
Type Fund Fund Title
Beginning
Fund Balance
Projected
Actual Revenue
Projected Actual
Expenditure Net Rev - Exp
Projected
Ending Fund
Balance Carryforward
Unrestricted
Fund Balance
General Operating Funds
1001 General Fund 25,727,499 32,740,098 40,077,541 (7,337,443) 18,390,056 5,732,119 12,657,937 1002 Half-Cent Sales Tax Fund 4,734,649 1,566,600 5,614,285 (4,047,685) 686,964 - 686,964 Special Revenue Funds
2001 Gas Tax Fund 201,445 382,889 205,231 177,658 379,103 - 379,103 2002 Local Transportation 403,644 206,483 173,323 33,160 436,804 - 436,804 2003 PEG Fund 166,492 37,000 161,978 (124,978) 41,514 - 41,514 2004 Grants-NonCapital 327,701 153,300 454,872 (301,572) 26,129 - 26,129 2005 Housing In Lieu Fee 3,404,394 80,000 2,528,823 (2,448,823) 955,572 - 955,572 2006 LBID Operations 841,855 1,548,480 1,724,176 (175,696) 666,159 - 666,159 2006 LBID Improvements (545,976) 1,548,480 346,664 1,201,816 655,840 - 655,840 2007 Chapman Estate 30,913 970,103 1,092,509 (122,406) (91,493) - (91,493) Capital Project Funds
3001 Capital Projects (462,718) 45,217,871 43,355,615 1,862,256 1,399,538 1,399,538 - 3002 Public Facilities Fund 849 - - - 849 - 849 3003 Park Development Fund 289,688 33,200 248,947 (215,747) 73,941 - 73,941 3101 Circulation Fees 603,344 6,700 301,000 (294,300) 309,044 - 309,044 3102 Impact Fees 609,328 16,100 1,418 14,682 624,010 - 624,010 3103 Developer Impact Fee 57,259 1,000 - 1,000 58,259 - 58,259 3201 Underground Utility Fnd 15,979 - - - 15,979 - 15,979 Debt Service Funds
4001 PFA Debt Service - 392,863 392,863 - - - - 4002 PF Agency Debt 57 707,555 676,948 30,607 30,664 - 30,664 4101 Reass 92-1 Fwy Fthlls 739 - - - 739 - 739 4102 Spyglass 92-4 12,308 - - - 12,308 - 12,308 Enterprise Funds
6101 Water Enterprise 5,642,675 8,280,452 11,036,814 (2,756,362) 2,886,314 2,886,314 - 6102 Water Tax (Lopez/State) 966,510 3,098,000 2,778,933 319,067 1,285,577 1,285,577 - 6103 Water Construction Fund 1,006,865 1,864,134 1,915,897 (51,763) 955,102 955,102 - 6104 Water Expansion Fund 1,173,350 5,600 - 5,600 1,178,950 1,178,950 - Water Enterprise Funds 8,789,400 13,248,187 15,731,644 (2,483,457) 6,305,942 6,305,942 - 6201 Wastewater Treatment 7,817,870 7,545,866 12,699,618 (5,153,751) 2,664,118 2,664,118 - 6202 Wastewater Capital Proj 1,047,972 4,077,256 3,880,042 197,213 1,245,185 1,245,185 - 6203 Wastewater Expansion 1,916,087 28,800 497 28,303 1,944,390 1,944,390 - Wastewater Enterprise Funds 10,781,928 11,651,922 16,580,157 (4,928,235) 5,853,693 5,853,693 - 6301 Local Trans Transit 28,188 - 2,900 (2,900) 25,288 25,288 - 6401 Pier Enterprise 85,844 94,767 116,032 (21,264) 64,580 64,580 - 6501 Parking Enterprise 5,409,268 2,340,743 4,986,789 (2,646,046) 2,763,222 2,763,222 - Internal Service Funds
7101 Technology Service Fund 479,061 1,504,551 1,535,708 (31,158) 447,903 - 447,903 7201 Motor Vehicle Fund 3,438,893 1,192,031 3,013,352 (1,821,322) 1,617,571 - 1,617,571 Council Agenda 12-6-2022 9.C-9
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Highlights of Other Funds

Half-Cent Sales Tax Fund (1002)
The Half-Cent Sales Tax Fund is part of the General Fund which includes a 0.50% transaction sales and use tax. This tax was approved by Pismo Beach voters in June 2008, effective October 1, 2008, and renewed in November 2014, which extends the tax to March 31, 2027. The tax proceeds are used exclusively for infrastructure projects. This fund started the year with a $4.73 million beginning fund balance (after including carryforward fund balances). Projected actual revenues are $1.57 million. Projected actual expenditures are $5.61 million. Based on the projected revenues and expenditures for the current year, there is a $687 thousand projected ending fund balance in this fund.

The following table lists the budgeted projects in this fund for FY 2023.

Table 10: Half-Cent Sales Tax Fund FY 2023 Budgeted Projects

Gas Tax Fund (2001)
The Gas Tax Fund is a Special Revenue Fund whose revenues include State gas tax funds based on the State’s apportionment formula. These funds are used for City street light costs, City traffic signal maintenance costs, and street repairs and/or capital improvements. This fund started the year with a $201 thousand beginning fund balance (after including carryforward fund balances). Projected actual revenues are $383 thousand and projected actual expenditures are $205 thousand for the FY 2022 Paving project. Based on the projected revenues and expenditures for the current year, there is a $379 thousand projected ending fund balance in this fund.

Local Transportation Fund (2002)
The Local Transportation Fund is a Special Revenue Fund whose funds are used for construction and maintenance of streets, bluff protection, and beach access. Revenues for this fund consist of State Transportation Development Act funds, which remain after funds are allocated for regional transit, local transit, and Ride-on services. Projected actual revenues are $206 thousand and $173 thousand of expenditures are budgeted for the FY 2022 Paving Project. Based on the projected revenues and expenditures for the current year, there is $437 thousand projected ending fund balance for this fund.

Projects FY 2023 Budget
2022 Paving Project $ 4,885,098
Signalize Bello/Price Canyon Rd 389,000
Tennis Bball Court relocation 302,891
City Hall Parking Lot 25,000
Storm Drains Project 12,296
Total $ 5,614,285
Council Agenda 12-6-2022 9.C-10
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Public Education Government Fund (2003)
The Public, Educational, and Governmental (PEG) Access Fee Fund includes revenues from a PEG Access Fee collected from cable television providers (i.e. Charter Communications) with franchise operations within city limits. Expenditures include capital costs related to governmental cable broadcasting and equipment. Based on projected revenues of $37 thousand and projected expenditures of $162 thousand, the PEG Fund is expected to end the year with a $42 thousand fund balance.

Housing In Lieu Fund (2005)
The Housing In Lieu Fund is a Special Revenue Fund with revenues from a development impact fee paid to the City as an alternative to the production of affordable housing (housing in-lieu fee). These funds are used for the acquisition, construction, or rehabilitation of affordable housing. The fund is projected to have $956 thousand of funds available by the end of the year for this purpose.

Lodging Business Improvement District Fund (2006) Operations The Pismo Beach Lodging Business Improvement District (LBID) Fund for operations reflects a 1% assessment on transient rents at transient lodging providers as revenues and budgeted expenditures to promote Pismo Beach lodging businesses. The LBID Fund started the year with a $841 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.55 million . Operating expenditures are projected to be equal to budget. The fund is expected to end the year with a $666 thousand ending unrestricted fund balance.

LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment for physical improvements, in particular the Pier Plaza project. The LBID Fund started the year with a negative $546 thousand beginning fund balance after including a $2.32 million remaining balance on the interfund loan payable to the Motor Vehicle Replacement (MVR) Fund and pre-funding the Pier Plaza project in FY 2020 and FY 2021. City staff projects that LBID assessment revenues and interest earnings will be $1.55 million. Expenditures include $300 thousand for the Spyglass Sidewalk under the US 101 as part of the FY 2022 Paving Project, $36 thousand for the beach swing replacements at Main and Addie Streets, which is currently on order, and $11 thousand for interest costs on the interfund loan. The third and final interfund loan payment is expected to be $1,077,042. The fund is expected to end the year with a positive $656 thousand ending unrestricted fund balance.

Chapman Estate Fund (2007)
The Chapman Estate Fund reflects donations or other contributions for the Chapman Estate as revenues and ongoing maintenance and one-time infrastructure improvements to the Chapman Estate as expenditures. The fund started the year with $31 thousand and is expected to receive $970 thousand of revenues, including $965 thousand from the General Fund for Chapman Estate improvements and the Chapman Inventory projects.

Proposed private event revenues are not anticipated at this time until the accessible restrooms are built. Projected actual expenditures are $1.09 million, including $938 thousand for the Chapman Estate improvements project, $127 thousand for operating Council Agenda 12-6-2022 9.C-11
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costs of the home and grounds and monthly maintenance costs for utilities and gardening, and $24 thousand for an inventory project. The remaining projected ending balance of this fund is negative $91 thousand. Due to this negative ending fund balance, staff recommends that Council appropriate a transfer of $110 thousand from the General Fund to the Chapman Estate Fund to support the operations until the Estate is able to hold private events. Staff will come back to Council at the Mid-Year Budget in December 2022 to reflect this recommendation. Note that in FY 2022, the Chapman Estate used $382 thousand of the Chapman Trust on the most recent Chapman roofing project as well as on Chapman Estate operating costs.

Park Development Fund (3003)
The Park Development Fund is a Capital Project Fund with Quimby Act (park development in-lieu) fees and Impact Fees as funding sources to support construction costs of new parks and park lands, and the enhancement of existing parks to serve new development. The fund started the year with $290 thousand and is projected to receive $33 thousand in impact fee and permit revenues. Projected actual expenditures total $246 thousand and include the following projects.

Table 11: Park Development Fund FY 2023 Budgeted Projects

The fund is expected to end the year with $74 thousand ending fund balance.

Water Enterprise Fund (6101)
The Water Enterprise Fund is an Enterprise Fund consisting of revenues from water billings and expenditures for: contract meter reading; direct water services and supplies; on-going inspection, repair, and maintenance of the City’s wells, tanks, booster stations, hydro-pneumatic system, and water distribution system components; water conservation efforts; and ensuring that a safe, drinkable supply of water is provided to Pismo Beach.

Water revenues are projected to be $8.28 million, including $2.96 million in one-time revenues for the Central Coast Blue project and expenditures are projected to be $11.04 million.

The projected ending fund balance for the Water Enterprise Fund is $2.89 million, which is allocated for future water system capital costs, including the Central Coast Blue project.

Note that the Water Enterprise Fund also includes the Water Tax, Water Construction, and Water Expansion Funds and the ending fund balance across all these funds is $6.31 million.

Projects
FY 2023
Budget
Price Historic Park/ Meherin House 94,087$
Palisades and Chumash Park Improvements 86,925
South Palisades Outdoor fitness equipment/trail 60,000
Overhead costs 4,943
Total 245,955$
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Wastewater Treatment Fund (6201)
The Wastewater Treatment Fund is an Enterprise Fund consisting of revenues from wastewater billings and expenditures for direct services and supplies; operation and maintenance of the City’s wastewater treatment plant and the wastewater collection facilities including pumps and pipelines; and ensuring the City’s treatment and collection system operations meet City, federal, and state laws and requirements. The ending fund balance is $2.66 million which is already allocated for other wastewater capital projects.

Note that the Wastewater Treatment Funds also include the Wastewater Capital Fund and the Wastewater Expansion Fund. The total combined ending fund balance across all these funds is $5.85 million.

Pier Enterprise Fund (6401)
The Pier Enterprise Fund includes revenues from a concession lease on the Pier and expenditures for repair and maintenance of the Pier, Promenade, and nearby facilities.

The beginning fund balance is $86 thousand and projected revenues are $95 thousand, of which $75 thousand is from revenues from the Pier Airstreams and $20 thousand is from the General Fund. Projected expenditures include $116 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $65 thousand ending fund balance.

Parking Enterprise Fund (6501)
The Parking Enterprise Fund is an Enterprise Fund consisting of revenues from parking kiosks, parking citations, and parking permits to support a Parking Supervisor and Parking Enforcement Officer implement the goals of the Pismo Beach Parking Management Plan to administer existing parking more efficiently, provide more downtown parking, improve enforcement and parking management, and provide funds for future parking structures.

Revenues are projected to reach $2.34 million to fund operating expenditures of $916 thousand.

In addition to operating expenditures, the budget includes $4.07 million for one-time projects, including $2.51 for the purchase of property to increase the City’s parking inventory, $750 thousand for paving the parking lots, $500 thousand for the Police and Parking Substation, $101 thousand for the Secure Communication Radio project, $100 thousand for Addie Street Parking and Access Improvements, $70 thousand for additional parking meters, $35 thousand for the Parking Management Study, $4 thousand for a radio system upgrade and reliability project, and $824 for other projects. The FY 2023 projected ending fund balance is $2.76 million.

Motor Vehicle Replacement Fund (7201)
The Motor Vehicle Replacement (MVR) Fund is an Internal Service Fund that funds the City’s motor vehicle operations and maintenance and motor vehicle replacements for various City departments. These costs are funded by accumulated fund balance, transfers from other funds, and motor vehicle rental charges to other funds. In FY 2020, the MVR Fund is provided a $3.28 million interfund loan from its cash balance to the LBID Fund for the Pier Plaza project. Consequently, the MVR Fund has a $3.44 million beginning fund balance. The interfund loan is anticipated to be paid overtime during FY Council Agenda 12-6-2022 9.C-13
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2021 through FY 2023. The FY 2023 projected ending fund balance is $1.62 million, which are accumulated funds necessary to fund future replacements.

FISCAL IMPACT:

There is no fiscal impact from receiving this report as it is information only.

ALTERNATIVES:

1. Request additional information from staff.

ATTACHMENTS:

None
Submitted by: Meeting Date: December 6, 2022
Nadia Feeser, Administrative Services Director
City Manager Approval:

Council Agenda 12-6-2022 9.C-14
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.D

SUBJECT/TITLE:

ANNUAL PUBLIC REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR 2022

RECOMMENDATION:

1. Receive the Annual Public Report on Development Impact Fees for Fiscal Year 2022;

2. Adopt a Resolution approving the Annual Public Report on Development Impact Fees for Fiscal Year 2022.

BACKGROUND:

Chapter 15.10 of the Pismo Beach Municipal Code provides for the establishment of development impact fees under the laws of the state of California. Government Code Section 66000–66025, the "Mitigation Fee Act," provides the legal requirements for enactment of a development impact fee program. Per Government Code 66006(b), the City is required to keep track of each separate account or fund established for the development impact fee and to provide an Annual Public Report within 180 days of the last day of each fiscal year (FY).

Impact Fees are updated annually, based on the Consumer Price Index (CPI-LA), a Caltrans index for traffic-related fees, and 5.0% for State Water fees. The CPI rate effective January 1, 2022 was 13.48% which applies to all projects except Traffic and Circulation and State Water Fees; the Caltrans index rate was -17.97% which applies to all Traffic and Circulation Projects; and the rate of 5.0% for State Water Fees applies to State Water Impact Fees.

In FY 2022, the City collected $1,412,691 of various impact fees. This is compared to $1,190,427 of impact fees collected in FY 2021, an increase of 18.67%. Table 1 summarizes the total impact fees collected in FY 2022 compared to FY 2021.

Table 1: FY 2022 Development Impact Fees Collected

Impact Fee Description FY 2022 FY 2021 % Change
Impact Fees 263,997$ 202,322$ 30.48%
Circulation Impact Fees 150,440 104,086 44.54% Park Development and Quimby Fees 191,044 141,615 34.90% Wastewater Impact Fees 343,472 201,865 70.15% Water Impact Fees 212,852 141,731 50.18%
State Water Impact Fees 250,885 127,811 96.29% Housing In Lieu Fees - 270,998 -100.00% Total Impact Fees Collected 1,412,691$ 1,190,427$ 18.67% Council Agenda 12-6-2022 9.D-1
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Annual Public Report
The Annual Public Report on Development Impact Fees for FY 2022 (Attachment 1.A) meets the Mitigation Fee Act reporting requirements. The report summarizes the projects in categories by Fund Type. The Development Impact Fee report is preceded by a Table of Contents of all these fees, in their appropriate categories, which are: Traffic and Circulation Improvement Projects; Wastewater System Projects; Water System Projects; Fire Protection Facilities; Administrative Facilities; Police Protection Facilities; Park and Recreation Improvements and other fees.

Conclusion and Recommendation
Staff recommends that Council receive the Annual Public Report on Development Impact Fees for FY 2022 and adopt a Resolution (Attachment 1) approving the Report.

FISCAL IMPACT:

There is no fiscal impact from approving the attached Resolution. The Resolution approves the Annual Public Report on Development Impact Fees for FY 2022.

ALTERNATIVES:

1. Do not accept the Annual Public Report; request additional information.

2. Do not adopt the Resolution.

ATTACHMENTS:

1. Resolution

1.A. Exhibit A to Resolution: Development Impact Fee Report for FY 2022 Submitted by: Meeting Date: December 6, 2022
Nadia Feeser, Administrative Services Director
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 ADOPTING THE ANNUAL PUBLIC REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR 2022

WHEREAS, the City Council of the City of Pismo Beach, on February 2, 1993, adopted Ordinance #O-93-01 providing for the establishment of development impact fees under Section 66001 of the California Government Code, called the Mitigation Fee Act, the purpose of which is to provide for additional facilities needed to serve additional population; and

WHEREAS, some of the fees adopted were to reimburse for projects already completed; and

WHEREAS, the impact fees collected by the City pursuant to Chapter 15.10 of the Pismo Beach Municipal Code are collected for the purposes set forth Section 15.10.020 of the Pismo Beach Municipal Code; and

WHEREAS, the reasonable relationship between the development impact fees and the purpose for which these fees are charged are set forth in Pismo Beach Municipal Code Chapter 15.10, as well as in the development impact fee study update report prepared by Willdan Financial Services, dated February 2019; and

WHEREAS, the sources and amounts of funding anticipated to complete the financing of incomplete public improvements are set forth in Exhibit A, the Annual Public Report on Development Impact Fees for FY 2021-22, to this resolution; and

WHEREAS, the approximate dates by which any funding anticipated to complete the financing of incomplete public improvements are set forth in Exhibit A to this resolution.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach adopts as findings the recitals set forth above, and adopts the Development Impact Fee Annual Report for Fiscal Year 2021-22 provided as Exhibit A.

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 6 th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Council Agenda 12-6-2022 9.D-3
Attachment 1
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Approved: Attest:

________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 12-6-2022 9.D-4
Attachment 1
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1 Development Impact Fee
Annual Report
Fiscal Year 2022

Council Agenda 12-6-2022 9.D-5
Attachment 1.A
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2 CITY OF PISMO BEACH, CA

ANNUAL COMPLIANCE REPORT FOR FEES LEVIED UNDER
CALIFORNIA GOVERNMENT CODE SECTION 66006(b)

MITIGATION FEE ACT
"IMPACT FEE REPORT"
FISCAL YEAR ENDING JUNE 30, 2022
For the purpose of compliance with Government Code Section 66006, the following information regarding AB 1600 impact fees is presented.

Table of Contents

I. Reporting Requirements for Impact Fees ........................................................................... 3 II. Description of Development Impact Fees .......................................................................... 3 A. TRAFFIC AND CIRCULATION IMPROVEMENT PROJECTS ................................. 3 B. WASTEWATER SYSTEM PROJECTS ................................................................... 4 C. WATER SYSTEM PROJECTS .............................................................................. 4 D. FIRE PROTECTION FACILITIES .......................................................................... 4 E. GENERAL GOVERNMENT/ADMINISTRATIVE FACILITIES.................................. 4 F. POLICE PROTECTION FACILITIES ...................................................................... 4 G. PARK AND RECREATION IMPROVEMENTS ...................................................... 5 H. OTHER FEES ..................................................................................................... 5 III. Amount of Impact Fee, Fund Balance, and Project Names ................................................ 5 A. Governmental/Administrative/Police/Fire/Traffic Circulation Development Impact Fees ............................................................................................................. 6 B. Water Enterprise Fund Development Impact Fees ......................................... 8 C. Wastewater Enterprise Fund Development Impact Fee .............................. 10 D. Other Impact Fee Funds ................................................................................ 12 IV. List of all Impact Fees ........................................................................................................ 14

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Attachment 1.A
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3 Overview

This report contains information on the City of Pismo Beach's development impact fees for the fiscal year (FY) beginning July 1, 2021 and ending June 30, 2022 (FY 2021-22). The information presented is to comply with the annual reporting requirements contained in Government Code sections 66000 et seq., "Fees for Development Projects," frequently identified as AB 1600. Note that this Annual report is not a budget document, but rather is published to meet reporting requirements. It is not intended to present a full picture of currently planned projects as it only reports revenues and expenditures for the fiscal year that began July 1, 2021.

The City of Pismo Beach has eight types of development impact fees. They are:

 Traffic and Circulation Improvement Projects
 Wastewater System Projects
 Water System Projects
 Fire Protection Facilities
 General Government/Administrative Facilities
 Police Protection Facilities
 Park and Recreation Improvements
 Other Fees

I. Reporting Requirements for Impact Fees

For each development impact fee, the following information is provided for the fiscal year 2021-22:

1. A brief description of the development impact fee.

2. The amount of the fee.

3. The beginning fund balance of each development impact fee account.

4. The amount of fees collected.

5. The amount of interest earned.

6. The ending fund balance of each development impact fee account.

7. A list of each project on which the fees were expended.

8. The total amounts of project funding from development impact fees.

9. The total percentage of the project that has been funded with development impact fees.

10. The total amounts of the development impact fee expended on each project.

II. Description of Development Impact Fees

TRAFFIC AND CIRCULATION IMPROVEMENT PROJECTS
The Traffic and Circulation Impact Fees are assessed on new development for its proportionate share of the costs of traffic and circulation improvements attributable to increased trips generated by new development and projects as determined by City staff.

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4 WASTEWATER SYSTEM PROJECTS
Impact fees for wastewater system improvements, including both the treatment plant and the collection system are based on improvement needs and costs identified for future development.

WATER SYSTEM PROJECTS

1. Impact Fees for City Water System Storage and Distribution Improvements The impact fees for City Water system storage and distribution improvements calculated are based on improvement needs and costs identified for future development.

2. State Water Supply
The impact fees for Water also include a share of the cost of the State Water supply provided by the State Water Project extension, which has been completed, but still has the capacity to serve additional development. The State Water Supply project fees include accrued interest on bonds used to finance construction.

3. Recycled Water Facility
Estimated cost of the project is $29,708,000. On April 21, 2015, the City Council adopted Resolution No. R-2015-031 directing staff to proceed with the recycled water project alternative known as Full Advanced Treatment with Direct Ground Water Recharge Inland Injection (hereinafter referred to as "Recycled Water Facility") to produce sustainable, reliable, long-term, drought-resistant water supply for the City of Pismo Beach. The Recycled Water Facility includes a process to annually transport 930 acre feet of fully advanced treated wastewater to well injection sites and inject it into the ground water basin.

FIRE PROTECTION FACILITIES
The Fire Protection Facilities Impact Fees are assessed on new residential and commercial development to pay for its proportionate share of land, equipment, and construction costs for existing and new fire stations that will be needed to provide adequate fire protection and emergency services for new development.

GENERAL GOVERNMENT/ADMINISTRATIVE FACILITIES
Impact Fees for administrative facilities assume that the existing City Hall Building is at capacity and additional space will be needed as the City continues to grow. Service population is used as the measure of development impacts for administrative facilities, and the existing ratio of building area to service population is used to project future expansion needs.

POLICE PROTECTION FACILITIES
The Police Protection Facilities Impact Fees are assessed on new residential and commercial development to pay for its proportionate share of and equipment and Council Agenda 12-6-2022 9.D-8
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5 construction costs for existing and new police stations that will be needed to provide adequate fire protection and emergency services for new development.

PARK AND RECREATION IMPROVEMENTS
The Quimby Act authorizes cities and counties in California to require dedication of park land or payment of fees in-lieu of dedication as a condition of approval of residential subdivisions. Although the Quimby Act allows in-lieu fees to be spent for either land acquisition or park development, the amount of the fee may be based only on either land acquisition or park development, the amount of the fee may be based only on the cost of land. The City of Pismo Beach has established a separate impact fee to cover the cost of park improvements. The two fees are complementary. Although in-lieu fees imposed under the Quimby Act apply only to residential subdivisions, an equivalent fee may be imposed as an impact fee on non-subdivision projects for the purpose of acquiring additional park land. Impact fees for park improvements may be imposed on any development project approved by the City that impacts the needs for parks. Since many of the City's recreational facilities are heavily used by visitors, the impact fee applies to both residential and hotel/motel development.

OTHER FEES

1. Housing In-Lieu Fee
Housing In-Lieu Fees are required of new development when housing units affordable to low to moderate income persons are not created within the new development. The fee is submitted to the City in lieu of providing housing units.

These fees are utilized for future low to moderate income housing. The amount of the fee is 5% of the assessed valuation of the Building Permit.

2. Sand Supply Fee
The California Coastal Commission requires a mitigation fee for a project impacting beach areas. The fee is to be used towards future coastal access improvements upon consultation with the California Coastal Commission. The amount of the fee is $25 per cubic yard of sand impacted.

III. Amount of Impact Fee, Fund Balance, and Project Names

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6 A. Governmental/Administrative/Police/Fire/Traffic Circulation Development Impact Fees

Governmental Fund Development Impact Fees (Fund 3102)
FY 21-22 Beginning Fund Balance 901,409$
Fees Collected 263,997
Interest Earned 8,983
Expenditures/Transfers (690,313)
FY 21-22 Ending Fund Balance 484,076$
Impact Fee Description Estimated Cost
Beginning
Balance Fees Collected
Balance before
Interest
Interest
Earned Expenditures Transfers Ending Balance
Cumulative Rev.
+ Int. % Funded Total Expended
RECOVERY-IMPACT FEE STUDY 110,000.00$ 25,168$ 27,926$ 53,094$ 409$ 53,503$ 123,579$ 112% (70,076)$ 4th STREET BRIDGE 854,000.00 (718) - (718) (6) (724) 964,335 113% (965,026) 4TH/JAMES WAY SIGNAL 113,000.00 39 - 39 0 39 100,569 89% (100,530) JAMES WAY EXTENSION-Old 887,835.00 (1) - (1) (0) (1) 418,800 47% (418,802) PRICE CANYON BRIDGE 620,000.00 6,369 - 6,369 49 (2,067) 4,351 574,077 93% (539,726) SB OFFRAMP-PRICE/DOLLIVER 235,000.00 2,405 - 2,405 19 (2,406) 17 140,750 60% (140,733) SB OFFRAMP-SB/PRICE 140,000.00 1,423 - 1,423 11 (1,424) 10 132,355 95% (132,345) SIGNAL: DOLLIVER/WADSWORTH 84,000.00 859 - 859 7 866 50,767 60% (49,901) PRICE ST/WADSWORTH AVE 84,000.00 861 - 861 7 868 41,237 49% (40,369) HINDS-POMEROY COUPLET 20,000.00 205 - 205 2 207 9,680 48% (9,473) FIRE STATION II-REMODEL 1,111,338.00 158,965 - 158,965 1,225 (160,838) (647) 213,577 19% (214,224) FIRE STATION THREE 5,110,000.00 299,159 - 299,159 2,306 (302,684) (1,219) 1,346,164 26% (1,347,382) FIRE STATION #3 EQUIP 400,000.00 48,723 - 48,723 376 (42,297) 6,802 49,099 12% (42,297) FIRE STATION #1 BLDING 552,383.00 67,283 - 67,283 519 (68,076) (274) 67,802 12% (68,076) FIRE VEHICLES 438,794.00 17,084 - 17,084 132 (17,285) (69) 50,667 12% (50,736) PUBLIC SAFETY CENTER-FIRE 10,957,057.00 73,939 86,342 160,281 1,236 (24,887) 136,629 161,516 1% (24,887) CIVIC CENTER-Old 1,724,140.00 44,156 - 44,156 340 44,497 659,785 38% (615,289) POLICE VEHICLES/EQUIPMENT-Old 232,315.00 (5) - (5) (0) (5) 91,366 39% (91,371) PLANNING/BLDG VEHICLES-Old 18,000.00 (1) - (1) (0) (1) 7,748 43% (7,748) ENG/BLDG MAINT VEHICLES-Old 17,500.00 (1) - (1) (0) (1) 7,863 45% (7,864) STREET/PARKS MAINT VEHICLES-Old 84,000.00 (1) - (1) (0) (1) 31,218 37% (31,219) MARKED PATROL CARS 210,000.00 1,129 - 1,129 9 1,138 113,989 54% (112,851) 4WD SUPERVISOR VEHICLE 40,000.00 216 - 216 2 218 6,910 17% (6,692) DETECTIVE, ADMIN 175,000.00 942 - 942 7 949 85,785 49% (84,836) Council Agenda 12-6-2022 9.D-10
Attachment 1.A
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7 Governmental Fund Development Impact Fees (Fund 3102) Impact Fee Description Estimated Cost
Beginning
Balance Fees Collected
Balance before
Interest
Interest
Earned Expenditures Transfers Ending Balance
Cumulative Rev.
+ Int. % Funded Total Expended
MOTORCYCLES 20,000.00 108 - 108 1 109 3,447 17% (3,339) ATV'S-BEACH PATROL 15,000.00 81 - 81 1 82 2,677 18% (2,595) STATE SAND SUPPLY FEE (3) - (3) (0) (3) 14,152 (14,155) SPHERE INFL STUDY-Old 75,000.00 - - - - - - 0%- PARK DEVELOPMENT FEE (3,580) - (3,580) (28) (3,607) 35 - MISC EXPENSES-OVERHEAD (2,527) (2,527) (19) (1,350) (3,896) 47,958 (2,636) CITY COUNCIL UPGRADES 47,000.00 1,348 1,448 2,796 22 2,818 2,818 6%- CITY TELEPHONE/COMM SYSTEM 5,000.00 143 152 295 2 298 298 6%- COMPUTER MAINTENANCE MGMT SYSTEM 100,000.00 2,867 3,066 5,933 46 5,979 5,979 6%- CONST CORP YARD ADMIN BUILD 1,000,000.00 28,667 30,817 59,483 459 59,942 59,942 6%- CORP YARD STORAGE 250,000.00 7,167 7,704 14,871 115 14,985 14,985 6%- COR YARD BUILDING DESIGN 151,700.00 4,348 4,663 9,011 69 9,081 9,081 6%- CORP YARD FUEL TANK 60,000.00 1,720 1,826 3,546 27 3,574 3,574 6%- COPR YARD MASTER PLAN 11,880.00 341 367 708 5 713 713 6%- DATA CENTER AC/BENT IMPROVEMENTS 75,000.00 2,149 2,319 4,468 34 4,503 4,503 6%- FACILITIES CABLING UPGRADE 100,000.00 2,867 3,066 5,933 46 5,979 5,979 6%- GIS IMPROVEMENTS 25,000.00 716 790 1,506 12 1,518 1,518 6%- IT ASSESS & STRATEGIC PLAN 80,000.00 2,293 2,471 4,764 37 4,801 4,801 6%- IT SECURITY ASSESSMENT 35,860.00 1,028 1,096 2,124 16 2,141 2,141 6%- LAB TESTING SOFTWARE SYSTEM 25,000.00 716 790 1,506 12 1,518 1,518 6%- RECORDS MANAGEMENT & ONLINE SVCS 42,300.00 1,213 1,306 2,519 19 2,539 2,539 6%- OLD CITY HALL BUILDING 250,000.00 7,167 7,704 14,871 115 14,985 14,985 6%- PUBLIC FACILITIES MASTER PLAN 100,000.00 2,867 3,066 5,933 46 5,979 5,979 6%- SKID STEER BOB CAT 37,500.00 1,076 1,163 2,239 17 2,256 2,256 6%- PUBLIC ART IN LIEU FEE - 42,629 23,620 66,249 511 (66,999) (239) 66,760 (66,999) COMMUNITY CAMERA PROGRAM 50,000.00 1,434 1,529 2,963 23 2,986 2,986 6%- COMP TRAFFIC SAFETY PROGRAM 18,000.00 515 574 1,089 8 1,098 1,098 6%- POLICE BODY CAMERAS 60,000.00 1,721 1,827 3,547 27 3,575 3,575 6%- POLICE STATION ANNEX 80,000.00 2,294 2,472 4,765 37 4,802 4,802 6%- PUBLIC SAFETY RADIO IMPROVEMENTS 100,000.00 2,868 3,066 5,934 46 5,980 5,980 6%- PUBLIC SAFETY CENTER-POLICE 1,391,084.00 38,973 42,827 81,800 631 82,430 83,346 6%(916) 28,423,686.00$ 901,409$ 263,997$ 1,165,406$ 8,983$ (1,350)$ (688,963)$ 484,076$ 5,830,062$ (5,263,092)$ Note: Transfers may be adjusted for actual balances available.

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8 B. Water Enterprise Fund Development Impact Fees

Water Fund Development Impact Fees (Fund 6104)
FY 21-22 Beginning Fund Balance 3,226,430$
Fees Collected 212,852
Interest Earned (34,111)
Expenditures/Transfers -
FY 21-22 Ending Fund Balance 3,405,171$
Impact Fee Description Estimated Cost Beginning Balance Fees Collected Balance before
Interest
Interest
Earned Expenditures Transfers Ending Balance
Cumulative
Rev. + Int. % Funded Total Expended
PRICE ST WATERLINE/BOOSTER-Old 789,000$ 295,202$ 295,202$ (2,928)$ 292,275$ 292,275$ 37% (295,202)$ WATER DEPT VEHICLES-Old 37,140 17,735 17,735 (176) 17,559 17,559 47% (17,736) DOWNTOWN WATER LINES-Old 660,480 145,561 145,561 (1,444) 144,117 144,117 22% (145,561) PISMO HEIGHTS RESERVOIR-Old 83,200 40,625 40,625 (403) 40,222 40,222 48% (40,627) DECOMMISSION HTS 3 RES 29,400 10,775 - 10,775 (107) 10,669 10,669 36% (10,601) 4TH STREET ADDITION 258,300 62,603 - 62,603 (621) 61,982 61,982 24% (61,093) SPYGLASS DRIVE PRV 12,600 4,681 - 4,681 (46) 4,635 4,635 37% (4,608) SHELL BEACH ROAD UPGR 279,900 102,596 - 102,596 (1,018) 101,578 101,578 36% (100,959) BELLO/CHARLES RES STUDY 6,000 2,229 - 2,229 (22) 2,207 2,207 37% (2,194) BELLO RESV DECOMMISSION 19,500 7,245 - 7,245 (72) 7,173 7,173 37% (7,131) OAKPARK WATER DEVEL-Old 250,000 105,487 105,487 (1,046) 104,441 104,441 42% (105,487) OCEAN VIEW/101 UPGRADE 106,500 41,043 1,298 42,341 (420) 41,921 41,921 39% (38,949) WADSWORTH/BELLO UPGR 78,000 28,580 - 28,580 (283) 28,296 28,296 36% (28,124) SHELL BEACH 1 RES 368,400 23,296 9,023 32,319 (321) 31,998 31,998 9% (12,985) PRIORITY 3 PROJECTS 148,200 55,066 - 55,066 (546) 54,520 54,520 37% (54,200)

2.5MG SHELL BEACH 1 RS 759,450 278,370 - 278,370 (2,761) 275,609 275,609 36% (273,930) BAY/DOLLIVER UPGRADE 2,100 780 - 780 (8) 772 772 37%(768) DECOMM CHARLES RESV 370,600 21,700 9,213 30,913 (307) 30,606 30,606 8% (11,191) DECOMMISSION BAY BOOST 13,200 4,837 - 4,837 (48) 4,789 4,789 36% (4,760) MATTIE RD 12" MAIN 180,600 66,174 - 66,174 (656) 65,518 65,518 36% (65,118) WELL PIPING UPGRADES 291,000 108,128 - 108,128 (1,072) 107,055 107,055 37% (106,426) RECYCLED WATER 11,572,000 1,722,012 120,524 1,842,536 (18,274) 1,824,262 1,824,262 16% (1,405,288) Council Agenda 12-6-2022 9.D-12
Attachment 1.A
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9 Water Fund Development Impact Fees (Fund 6104)
Impact Fee Description Estimated Cost Beginning Balance Fees Collected Balance before
Interest
Interest
Earned Expenditures Transfers Ending Balance
Cumulative
Rev. + Int. % Funded Total Expended

BACKUP GENERATOR REPLACEMENT - - - - - - - - BOOSTER STATION VFD'S 6,600 200 179 379 (4) 375 375 6%-

HUBER WELL REPLACEMENT - - - - - - - - WELL 23 REPAIRS - - - - - - - - CORP YARD BUILDING ADDITION 112,100 3,407 3,027 6,433 (64) 6,369 6,369 6%- CORP YARD FUEL TANK 7,300 221 186 408 (4) 404 404 6%- PISMO HEIGHTS GENERATOR ENCL.10,200 309 268 577 (6) 572 572 6%- PAC EST 1 RESERVOIR REPLACEMENT 340,000 10,330 9,213 19,543 (194) 19,349 19,349 6%- FIVE CITIES DRIVE WATERLINE 18,200 554 505 1,059 (11) 1,048 1,048 6%- 4TH STREET WATERLINE 166,600 5,063 4,491 9,554 (95) 9,459 9,459 6%- NEW PRODUCTION WELL 605,000 18,381 16,374 34,755 (345) 34,411 34,411 6%- CYPRESS WATERLINE UPGRADE 48,400 1,471 1,298 2,769 (27) 2,741 2,741 6%-

REMOTE READ SYSTEM & METER CHANGE - - - - - - - - MASTER PLAN UPDATE 9,100 277 249 526 (5) 520 520 6%- PAC EST 2 RESERVOIR MAINTENANCE - - - - - - - -

PISMO OAKS RESERVOIR MAINTENANCE - - - - - - - -

RESERVOIR MAINTENANCE - - - - - - - -

WATERLINE REPLACEMENT - - - - - - - - URBAN WATER MASTER PLAN 19,400 589 518 1,108 (11) 1,097 1,097 6%-

PROPOSED ASSET REPLACEMENT - - - - - - - - CORPORATION YARD MASTER PLAN 11,900 362 337 699 (7) 692 692 6%- INT FROM DEBT SERVICE TO 2040 1,334,300 40,540 36,150 76,690 (761) 75,929 75,929 6%- Totals 19,004,670$ 3,226,430$ 212,852$ 3,439,282$ (34,111)$ -$ -$ 3,405,171$ 3,405,171$ (2,792,938)$ Note: Transfers may be adjusted for actual balances available.

Council Agenda 12-6-2022 9.D-13
Attachment 1.A
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10 C. Wastewater Enterprise Fund Development Impact Fee

Wastewater Fund Development Impact Fees (Fund 6203)
FY 21-22 Beginning Fund Balance 337,416.41$
Fees Collected 343,472.21$
Interest Earned (55,452.04)$
Expenditures/Transfers (473.04)$
FY 21-22 Ending Fund Balance 624,963.54$
Impact Fee Description Estimated Cost
Beginning
Balance Fees Collected
Balance before
Interest
Interest
Earned Expenditures Transfers
Ending
Balance
Cumulative
Rev. + Int. % Funded Total Expended
WASTEWATER HYDRUALICS-Old 50,000$ 0$ 0$ (0)$ 0$ 40,008$ 80% (40,008)$ ADDIE ST FORCE MAIN 312,900 1,451 - 1,451 (118) 1,332 204,203 65% (202,870) VISTA DEL MAR MAIN/LIFT-Old 311,000 2,188 1,004 3,192 (260) 2,932 107,443 35% (104,510) SPYGLASS MAIN LIFT-Old 92,000 - - - - 30,378 33% (30,378) FIVE CITIES LIFT STATION-Old 783,076 17,710 27,080 44,790 (3,648) 41,143 170,714 22% (135,720) PISMO OAKS LIFT STATION 290,677 12,859 1,224 14,083 (1,147) 12,936 201,991 69% (182,479) ST ANDREWS LIFT STATION-Old 76,000 - - - - 9,444 12% (9,444) WWTP UPGRADE/EXPANSION 3,146,784 68,774 34,666 103,441 (8,424) 95,017 1,139,056 36% (1,022,782) SHELL BEACH FORCE MAIN 620,325 - - - - - 247,981 40% (269,239) PISMO HTS I/I ELIMIN 53,500 - - - - - 23,314 44% (23,743) PARK/CYPRESS INTER REP 49,284 304 427 731 (60) 672 13,745 28% (19,617) FREEWAY FOOTHILL LIFT ST 24,000 22 - 22 (2) 20 9,875 41% (9,855) PG&E LIFT STATION GEN 12,000 - - - - - 5,928 49% (5,990) SUNSET PALISADES L.S.9,600 45 - 45 (4) 42 3,958 41% (3,917) VISTA DEL MAR GRAVITY SY 22,600 846 788 1,634 (133) 1,501 5,584 25% (4,020) PISMO OAKS GRAVITY SYS 300,000 586 - 586 (48) 538 110,427 37% (103,345) MISC EXPENSES-OVERHEAD - (5,768) (5,768) 470 (473) (5,771) 45,750 (51,521) NEW CHLORINE SYSTEM 2,900 101 83 184 (15) 169 169 6%- SLUDGE DEWATERING 434,800 15,241 15,062 30,303 (2,468) 27,835 27,835 6%- ENERGY EFFICIENT PROJECT 350,000 12,269 12,124 24,393 (1,987) 22,407 22,407 6%- ST. ANDREWS LIFT STATION 9,400 329 344 673 (55) 618 618 7%- CORPORATION YARD FUEL TANK 7,000 245 223 468 (38) 430 430 6%- CORPORATION YARD ADDITION 100,000 3,505 3,455 6,960 (567) 6,393 6,393 6%- Council Agenda 12-6-2022 9.D-14
Attachment 1.A
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11 Wastewater Fund Development Impact Fees (Fund 6203)
Impact Fee Description Estimated Cost
Beginning
Balance Fees Collected
Balance before
Interest
Interest
Earned Expenditures Transfers
Ending
Balance
Cumulative
Rev. + Int.% Funded Total Expended

OXIDATION DITCH MAINTENANCE - - - - - - - - SEWER SYSTEM MANAGEMENT PLAN 26,700 937 928 1,865 (152) 1,713 1,713 6%- INFILTRATION/INFLOW 23,200 813 795 1,608 (131) 1,477 1,477 6%- SYSTEM IMPROVEMENTS-GRIT REMOVAL 26,700 411 420 831 (68) 764 764 3%-

TRESTLE REHABILITATION - - - - - - - - BYPASS PUMP 17,400 610 585 1,195 (97) 1,098 1,098 6%-

EQUIPMENT REPLACEMENT - - - - - - - -

FERROUS TANK REPLACEMENT - - - - - - - -

CLARIFIER REPLACEMENT - - - - - - - -

PUMP REPLACEMENT - - - - - - - - CORPORATION YARD MASTER PLAN 1,400 50 59 109 (9) 100 100 7%- INT FROM SLUDE DEWATERING DS 62,551 2,193 2,161 4,354 (355) 3,999 3,999 6%- RECYCLED WATER - WASTEWATER 23,700,000 201,695 242,044 443,739 (36,138) 407,600 407,600 2%- Totals 30,915,797$ 337,416$ 343,472$ 680,889$ (55,452)$ (473)$ -$ 624,964$ 2,844,402$ (2,219,438)$ Note: Transfers may be adjusted for actual balances available.

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12 D. Circulation Fee Fund Development Impact Fees

Circulation Fee Fund Development Impact Fees (Fund 3101) FY 21-22 Beginning Fund Balance 162,752$
Fees Collected 150,440
Interest Earned (11,917)
Expenditures/Transfers (115,270)
FY 21-22 Ending Fund Balance 186,006$
Impact Fee Description Estimated Cost Beginning Balance Fees Collected Balance before
Interest
Interest
Earned Expenditures Transfers
Ending
Balance
Cumulative
Rev. + Int. % Funded
Total
Expended
Bello Bridge Replacement 650,000$ 17,814$ 16,614$ 34,428$ (1,310)$ 33,119$ 15,304$ 2%-$ Bike Racks 2,846 78 80 159 (6) 153 74 3%- Cypress Bridge dome lighting 65,000 1,782 1,646 3,428 (130) 3,298 1,516 2%- Cypress/Pomeroy Intersection Pedestrian Scramble 21,060 628 542 1,169 (44) 1,125 497 2%- Downtown Sidewalk Pavers 130,000 3,563 3,343 6,906 (263) 6,644 3,080 2%- Parking Garage 1,950,000 53,441 49,792 103,233 (3,928) (71,167) 28,138 45,864 2% (71,167) Price Street Beautification & Improvements 533,000 14,607 13,619 28,227 (1,074) 27,153 12,545 2%- Price Street Dolliver Shell Beach Multi-Use Trail 260,000 7,125 6,636 13,760 (524) 13,237 6,112 2%- Price and Dolliver Roundabout 520,000 14,251 13,271 27,522 (1,047) 26,475 12,224 2%- Realign Frady Lane 195,000 5,344 4,989 10,334 (393) 9,941 4,596 2%- Shell Beach Road Sidewalk 68,250 1,871 1,737 3,608 (137) (3,668) (197) 1,600 2% (3,668) Shell Beach Road Streetscape 1,430,380 39,200 36,524 75,724 (2,881) (40,435) 32,408 33,643 2% (40,435) Sidewalk Underpass 65,000 3,047 1,646 4,694 (179) 4,515 1,468 2% 1,266 Totals 5,890,536$ 162,752$ 150,440$ 313,192$ (11,917)$ -$ (115,270)$ 186,006$ 138,524$ (114,004)$ Note: Transfers may be adjusted for actual balances available.

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Attachment 1.A
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13 E. Other Impact Fee Funds

Other Impact Fee Funds
FY 21-22 Beginning Fund Balance 6,854,383$
Fees Collected 2,209,705$
Interest Earned (137,634)$
Expenditures/Transfers (2,486,013)$
FY 21-22 Ending Fund Balance 6,440,441$
Impact Fee Description
Beginning
Balance Fees Collected Interest Earned Expenditures Transfers Ending Balance Housing In Lieu Fee Fund 4,232,088$ -$ (45,960)$ (12,107)$ 4,174,021$ Park Development Fund 594,249 191,044 (12,229) (483,376) 289,688 State Water Impact Fee 250,885 (250,885) - Water Tax Fund 996,425 1,733,749 (24,020) (1,739,645) 966,510 Wastewater Expansion Fund 1,031,620 34,026 (55,424) - 1,010,222 Totals 6,854,383$ 2,209,705$ (137,634)$ (2,486,013)$ -$ 6,440,441$ Council Agenda 12-6-2022 9.D-17
Attachment 1.A
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14 IV. List of all Impact Fees
January 1, 2022 through July 31, 2022 Development Impact Fees

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15 Council Agenda 12-6-2022 9.D-19
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16 July 1, 2021 through December 31, 2021 Development Impact Fees

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17 Council Agenda 12-6-2022 9.D-21
Attachment 1.A
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.E

SUBJECT/TITLE:
2023 CITY COUNCIL REGULAR MEETING SCHEDULE
RECOMMENDATION:

Adopt a Resolution establishing the 2023 City Council Regular Meeting schedule.

BACKGROUND:

Pismo Beach Municipal Code Section 2.04.080 provides that the City Council shall hold meetings as established by Council resolution. City Council Resolution R-2009-014 establishes that the Council shall hold its regular meetings on the first and third Tuesday of every month. The Council may enact further resolutions amending its meeting schedule, and staff typically presents an item to the Council at the end of each calendar year to set the regular meeting schedule for the following year, including any projected cancellations.

For calendar year 2023, staff recommends the cancellation of the meetings of January 3, 2023, July 4, 2023, August 1, 2023, and November 21, 2023. Due to New Year’s Day occurring on a Sunday, the holiday will be observed by the City on Monday, January 2, 2023, and staff recommends the cancellation of the January 3, 2023 meeting due to its proximity to this holiday closure, which would preclude the opportunity to fully prepare for the meeting. Staff also recommends the cancellation of the July 4, 2023 meeting due to it coinciding with the closure of City offices in observance of the Fourth of July holiday.

Staff recommends the cancellation of the August 1, 2023 meeting, in keeping with the recent historical precedent of at least one summer meeting being cancelled to allow staff and Council to take vacation and to focus on other work. Finally, staff recommends the cancellation of the November 21, 2023 meeting due to its close proximity to the Thanksgiving holiday.

The Council may act now, or at a future juncture, to cancel additional meeting dates as it deems fit. Further, special meetings and closed sessions will continue to be scheduled as needed.

Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) setting the Council's 2023 regular meeting schedule, and cancelling the meeting dates of January 3, 2023, July 4, 2023, August 1, 2023, and November 21, 2023.

FISCAL IMPACT:

There is no budget impact as a result of cancellation of meetings; there is however a cost savings in the low hundreds of dollars associated with each meeting that is not held.

ALTERNATIVES:

1. Adopt a modified Resolution cancelling or scheduling alternative meeting date(s).

9.E-1Council Agenda 12-6-2022
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2.Decline to adopt a Resolution altering the Council's default 2023 meeting schedule.

ATTACHMENTS:

1. Resolution establishing meeting schedule
Submitted by: Erica Inderlied, City Clerk Meeting Date: December 6, 2022 City Manager Approval:

9.E-2Council Agenda 12-6-2022
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RESOLUTION NO. R-2022-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA ESTABLISHING THE 2023 CITY COUNCIL REGULAR MEETING

SCHEDULE
WHEREAS, Pismo Beach Municipal Code 2.04.080 provides that the City Council shall hold meetings as established by Resolution; and
WHEREAS, City Council Resolution R-2009-014 establishes that the City Council shall hold its regular meetings on the first and third Tuesday of every calendar month, and the Council may adopt further policy resolutions amending its regular meeting schedule; and WHEREAS, staff recommends that certain regular meetings of the City Council be cancelled due to proximity to holidays and other factors; and WHEREAS, the Council may still act to cancel additional regular meetings, or schedule additional special meetings, at a future juncture if it deems it necessary or desirable.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby cancels its regular meetings of January 3, 2023, July 4, 2023, August 1, 2023, and November 21, 2023.

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 6th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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

9.E-3Council Agenda 12-6-2022
Attachment 1
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.F

SUBJECT/TITLE:

CONTRACT WITH BUREAU VERITAS FOR BUILDING PERMIT PLAN CHECK AND

INSPECTION SERVICES

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to execute a contract with Bureau Veritas North America, Inc. for professional Building Division services in Fiscal Year 2023.

BACKGROUND:

Bureau Veritas, formerly California Code Check, has been providing plan check services to the City since 2007, and building inspection services since 2015. Established in 1967, the company has extensive experience providing Building Division services and their staff is familiar with the City’s processes, procedures, and the local building code.

Current contracts with Bureau Veritas have expired and a new contract is desired.

Approval of the contract will ensure that building permits and inspections will continue to be processed in a timely manner. Current staffing levels are designed to support the Building Division’s functions, with the City’s Building Official conducting the vast majority of plan check services and the Building Inspector performing inspection services.

However, there are times when inspection coverage is needed due to vacations or plan check services are necessary due to the scope of large projects that would otherwise monopolize the Building Official’s time.

The Council-approved fee structure supports the City’s full cost to provide these services, which are reflected in the budget, and $120,000 has been allocated in the Fiscal Year (FY) 2023 budget. A scope and fee schedule is provided as Attachment 1.A. The City expects the demand for building permit plan review and and inspection coverage to remain at the level experienced in recent fiscal years. Therefore, additional budget is not necessary at this time.

Conclusion and Recommendation
The services provided by Bureau Veritas are meeting expectations of the City. Therefore, staff recommends that the City Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute a contract (Attachment 2) with Bureau Veritas to cover required Building Division services for FY 2023.

FISCAL IMPACT:

The fiscal impact of approving the Resolution is $120,000, which is already budgeted in the FY 2023 General Fund Community Development Department Building Division budget.

The City’s Purchasing Policy requires City Council approval of contracts over $50,000.

Staff has selected Bureau Veritas as a sole source procurement as they have been Council Agenda 12-6-2022 9.F-1
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providing these services to the City of Pismo Beach since 2007. The company has extensive experience providing Building Division services specifically tailored to the City and its needs.

ALTERNATIVES:

1. Deny the request or a portion of the request.

2. Direct staff to explore other options.

ATTACHMENTS:

1. Resolution

1.A. Exhibit A to Resolution: SOQ and Fee Schedule

2. Bureau Veritas Contract
Submitted by: Meeting Date: December 6, 2022
Matthew Downing, Community Development Director
City Manager Approval:

Council Agenda 12-6-2022 9.F-2
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RESOLUTION NO. R-2022-XXX

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

CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH BUREAU VERITAS NORTH AMERICA, INC. FOR PROFESSIONAL BUILDING DIVISION SERVICES IN FISCAL YEAR 2023
WHEREAS, the City expects the demand for building permit plan reviews and required building inspections to remain at the level experienced in recent fiscal years; and WHEREAS, the Council-approved fee structure supports the City’s full cost to provide development review services, which are reflected in the General Fund budget; and WHEREAS, current staffing levels are designed to support the basic need for these services supplemented by contract services when needed; and WHEREAS, Bureau Veritas has been providing personnel with a high level of skill and experience for construction plan check and inspection services to the City of Pismo Beach and the City seeks to continue to utilize these services; and WHEREAS, current contracts with Bureau Veritas have expired and a new contract is desired; and
WHEREAS, the City Council previously appropriated $120,000 to cover contract costs to support these services; and
WHEREAS, staff has selected Bureau Veritas as a sole source procurement as the company has been providing these services to the City of Pismo Beach since 2007 and has extensive experience providing Building Division services specifically tailored to the City and its needs.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute an agreement with Bureau Veritas for building permit plan check review and building inspection services in the amount of $120,000 for Fiscal Year (FY) 2023, in accordance with the scope and fee schedule set forth in Exhibit A.

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 6 th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Council Agenda 12-6-2022 9.F-3
Attachment 1
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RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 12-6-2022 9.F-4
Attachment 1
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Attachment 1.A
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Vendor Agreement (Rev. 2/2/2018)

CITY OF PISMO BEACH

VENDOR AGREEMENT FOR PROFESSIONAL SERVICES

This Vendor Agreement for Professional Services (“AGREEMENT”) is made and entered into as of the date the AGREEMENT is fully executed by all parties (the “Effective Date”), by and between the City of Pismo Beach, a municipal corporation (“CITY”), and Bureau Veritas North America, Inc. (“VENDOR”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

RECITALS:

CITY wishes to retain the services of an experienced and qualified VENDOR to provide the following services:

Professional Building Division Services for Fiscal Year 2023.

VENDOR represents and warrants that it is qualified to perform those services.

AGREEMENT:

I. SERVICES TO BE PERFORMED BY VENDOR

VENDOR will provide the services listed in the Scope of Services attached hereto as Exhibit A.

VENDOR warrants that all work and services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner. Extra work beyond that described in the Scope of Services is not authorized without the express written approval of CITY. VENDOR shall request and receive written approval prior to performing any extra work. Any work beyond that reflected in the approved Scope of Services shall not be compensated by CITY unless prior written approval was provided under this paragraph. CITY’s City Manager may approve additional work not to exceed thirty thousand dollars ($30,000.00). Any additional work in excess of this amount shall be approved by the City Council. To the extent that Exhibit A is a proposal from VENDOR, such proposal is incorporated only for the description of the Scope of Services and no other terms and conditions from any such proposal shall apply to this AGREEMENT unless specifically agreed to by CITY in writing.

II. TERM

Unless earlier terminated in accordance with Section IV below, or unless the Scope of Services are substantially completed, the AGREEMENT will continue in full force and effect from the Effective Date through June 30, 2023. Upon mutual written agreement, the term of this AGREEMENT can be extended annually under the same terms for an additional one (1) year period, or longer as the parties agree in writing.

III. COMPENSATION

A. VENDOR’s Fee

For services rendered pursuant to this AGREEMENT, VENDOR will be paid in accordance with the Compensation Schedule attached hereto as Exhibit B. However, in no event will the total amount of money paid VENDOR, for services initially contemplated by this AGREEMENT and associated expenses, exceed the sum of one hundred twenty thousand dollars ($120,000.00), unless otherwise first approved in writing by CITY. Should this AGREEMENT 2 of 12
Vendor Agreement (Rev. 2/2/2018)
be extended pursuant to Section II, VENDOR’s fee may be adjusted upon the written agreement of the parties, in the form of an amendment to this AGREEMENT.

B. Schedule of Payment

VENDOR will submit invoices monthly for actual services performed and associated expenses.

Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If CITY disputes any of VENDOR’s fees it shall give written notice to VENDOR within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this AGREEMENT shall be made within forty-five (45) days of receipt of an invoice therefor.

IV. TERMINATION OF AGREEMENT

A. CITY may at any time, for any reason, with or without cause, suspend or terminate this AGREEMENT, or any portion hereof, by serving upon VENDOR at least ten (10) days' prior written notice. Upon receipt of said notice, VENDOR shall immediately cease all work under this AGREEMENT, unless the notice provides otherwise. If CITY suspends or terminates a portion of this AGREEMENT, such suspension or termination shall not make void or invalidate the remainder of this AGREEMENT.

B. In the event this AGREEMENT is terminated pursuant to this Section, CITY shall pay to VENDOR the actual value of the work performed up to the time of termination, provided that the work performed is of value to CITY. Upon termination of the AGREEMENT pursuant to this Section, VENDOR will submit an invoice to CITY pursuant to Section III.

V. FORCE MAJEURE

If any party fails to perform its obligations because of strikes, lockouts, labor disputes, embargoes, "acts of God," inability to obtain labor or materials or reasonable substitutes for labor or materials, governmental restrictions, governmental regulations, governmental control, judicial orders, enemy or hostile governmental action, civil commotion, fire or other casualty, or other causes beyond the reasonable control of the party obligated to perform, then that party’s performance shall be excused for a period equal to the period of such cause for failure to perform.

VI. RETENTION OF FUNDS

VENDOR authorizes CITY to deduct from any amount payable to VENDOR (whether or not arising out of this AGREEMENT) any amounts the payment of which may be in dispute or that are necessary to compensate CITY for any losses, costs, liabilities, or damages suffered by CITY, and all amounts for which CITY may be liable to third parties, by reason of VENDOR’s acts or omissions in performing or failing to perform VENDOR’s obligations under this AGREEMENT. In the event that any claim is made by a third party, the amount or validity of which is disputed by VENDOR, or any indebtedness exists that appears to be the basis for a claim of lien, CITY may withhold from any payment due, without liability for interest because of the withholding, an amount sufficient to cover the claim. The failure of CITY to exercise the right to deduct or to withhold will not, however, affect the obligations of VENDOR to insure, indemnify, and protect CITY as elsewhere provided in this AGREEMENT.

Council Agenda 12-6-2022 9.F-18
Attachment 2
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VII. CITY REPRESENTATIVE

The Building Official is designated as the “City Representative,” authorized to act in its behalf with respect to the work and services specified in this AGREEMENT and to make all decisions in connection with this AGREEMENT. Whenever approval, directions, or other actions are required by CITY under this AGREEMENT, those actions will be taken by CITY Representative, unless otherwise stated. CITY’s City Manager has the right to designate another CITY Representative at any time, by providing notice to VENDOR.

VIII. VENDOR REPRESENTATIVE(S)

The person(s) employed by VENDOR whose name(s) are set forth immediately following the signatures of the parties executing this AGREEMENT are designated as being the representative(s) of VENDOR authorized to act on its behalf with respect to the work specified in this AGREEMENT and make all decisions in connection with this AGREEMENT.

IX. INDEPENDENT CONTRACTOR

VENDOR is, and at all times will remain as to CITY, a wholly independent contractor. Neither CITY nor any of its elected officials, officers, employees or agents will have control over the conduct of VENDOR or any of VENDOR’s employees, except as otherwise set forth in this AGREEMENT and then only as to the results to be accomplished and not the method by which VENDOR provides the Scope of Services. VENDOR may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of CITY.

X. BUSINESS LICENSE

VENDOR must obtain a CITY business license prior to the start of work under this AGREEMENT, unless VENDOR is qualified for an exemption.

XI. OTHER LICENSES AND PERMITS

VENDOR warrants that it has all professional, contracting and other permits and licenses required to undertake the work contemplated by this AGREEMENT.

XII. VENDOR’S ACCOUNTING RECORDS; OTHER PROJECT RECORDS

A. VENDOR shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by CITY that relate to the performance of services under this AGREEMENT. VENDOR shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services.

B. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. VENDOR shall provide free access to the representatives of CITY or its designees at reasonable times to such books and records; shall give CITY the right to examine and audit said books and records; shall permit CITY to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this AGREEMENT. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. Upon completion of, or in the event of termination or suspension of this AGREEMENT, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the 4 of 12
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services to be performed pursuant to this AGREEMENT shall become the sole property of CITY and may be used, reused, or otherwise disposed of by CITY without the permission of VENDOR. With respect to computer files, VENDOR shall make available to CITY, at VENDOR's office and upon reasonable written request by CITY, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. VENDOR hereby grants to CITY all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by VENDOR in the course of providing the services under this AGREEMENT.

C. All plans, studies, sketches, drawings, reports, and specifications as herein required are the property of CITY, whether the work for which they are made be executed or not. In the event this AGREEMENT is terminated, and at the end of the term of this AGREEMENT, all such plans, studies, sketches, drawings, electronic documentation, reports, and specifications shall be delivered immediately to CITY. VENDOR may retain one copy of each document for VENDOR’S records, but shall have no proprietary rights to them. CITY agrees to indemnify VENDOR against any damages caused by the unauthorized re-use of said documents.

XIII. INDEMNIFICATION

A. Non-design, non-construction Professional Services:

To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), VENDOR shall indemnify, defend, and hold harmless CITY, and its elected officials, officers, employees, volunteers, and agents (“CITY Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of VENDOR’s performance or VENDOR’s failure to perform its obligations under this AGREEMENT or out of the operations conducted by VENDOR, including CITY’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of CITY. In the event CITY Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from VENDOR’s performance of this AGREEMENT, VENDOR shall provide a defense to CITY Indemnitees or at CITY’s option, reimburse CITY Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

B. Non-design, construction Professional Services:

To the extent the Scope of Services involve a “construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), VENDOR shall indemnify, defend, and hold harmless the CITY, and its elected officials, officers, employees, volunteers, and agents (“CITY Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of VENDOR’s performance or VENDOR’s failure to perform its obligations under this AGREEMENT or out of the operations conducted by VENDOR, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of CITY. In the event CITY Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from VENDOR’s performance of this AGREEMENT, VENDOR shall provide a defense to CITY Indemnitees or at CITY’s option, reimburse CITY Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

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C. Design Professional Services:

In the event VENDOR is a "design professional," and the Scope of Services require VENDOR to provide “design professional services” as those phrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8) VENDOR shall indemnify, defend and hold harmless CITY and its elected officials, officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of VENDOR, except to the extent caused by the sole negligence, active negligence or willful misconduct of CITY. Negligence, recklessness or willful misconduct of any subcontractor employed by VENDOR shall be conclusively deemed to be the negligence, recklessness or willful misconduct of VENDOR unless adequately corrected by VENDOR. In the event CITY Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from VENDOR’s performance of this AGREEMENT, VENDOR shall provide a defense to CITY Indemnitees or at CITY’s option, reimburse CITY Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to VENDOR under this paragraph exceed VENDOR’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, VENDOR shall meet and confer with other parties regarding unpaid defense costs.

D. Payment by CITY is not a condition precedent to enforcement of the indemnities in paragraph A, B, or C. In the event of any dispute between VENDOR and CITY, as to whether liability arises from the active negligence, sole negligence or willful misconduct of CITY or its officers, employees, or agents, VENDOR will be obligated to pay for CITY’s defense until such time as a final judgment has been entered adjudicating CITY as having been actively negligent, solely negligent or as having engaged in willful misconduct. Except as otherwise required by Civil Code Section 2782.8, VENDOR will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. The provisions of this Section 13 shall survive completion of VENDOR’s services or the termination of this AGREEMENT.

XIV. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES

No elected official, officer, employee, or agent of CITY will be personally liable to VENDOR, in the event of any default or breach by CITY or for any amount that may become due to VENDOR.

XV. INSURANCE

A. Without limiting VENDOR’s indemnification of CITY, and prior to commencement of the Scope of Services, VENDOR shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form that is satisfactory to CITY.

1. General liability insurance. VENDOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 6 of 12
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2. Automobile liability insurance. If VENDOR owns vehicles used in performing the Scope of Services in any manner, VENDOR shall maintain automobile insurance at least as broad as Insurance Services Office (ISO) form CA 00 01 covering bodily injury and property damage for all activities of VENDOR arising out of or in connection with any work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

3. Workers’ compensation insurance. VENDOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000), as required by law.

4. VENDOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees, and volunteers.

5. Errors and Omissions/Professional Liability. VENDOR shall maintain a policy of professional liability insurance written on a claims-made basis in an amount not less than $1,000,000. VENDOR shall also procure and pay for appropriate tail coverage for a minimum of three years following completion of the Scope of Services to cover any errors or omissions occurring during the Term. In the alternative, VENDOR may elect to obtain equivalent coverage on an occurrence basis. CITY’s Risk Manager or City Attorney may waive the requirement of professional liability insurance if he/she determines that such a policy is not commercially available to VENDOR. If such a policy is commercially available, additional cost to VENDOR in obtaining such a policy shall not be a basis upon which the insurance requirement will be waived.

B. Other provisions or requirements:

1. Proof of insurance. VENDOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior to commencement of performance.

Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements to such policies, at any time.

2. Duration of coverage. VENDOR shall procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by VENDOR, its agents, representatives, employees, or subconsultants.

3. Primary/noncontributing. Coverage provided by VENDOR shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.

4. CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by VENDOR or Council Agenda 12-6-2022 9.F-20
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CITY will withhold amounts sufficient to pay premium from VENDOR payments. In the alternative, CITY may terminate this AGREEMENT as provided in paragraph IV.

5. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by CITY’s Risk Manager.

6. Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officials, agents, officers, employees, and volunteers or shall specifically allow VENDOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. VENDOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

7. Enforcement of contract provisions (non-estoppel). VENDOR acknowledges and agrees that any actual or alleged failure on the part of CITY to inform VENDOR of non- compliance with any requirement imposes no additional obligations on CITY nor does it waive any rights hereunder.

8. Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If VENDOR maintains higher limits than the minimums shown above, CITY requires and shall be entitled to coverage for the higher limits maintained by VENDOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

9. Notice of cancellation. VENDOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. In the event VENDOR’s policy of insurance cannot be endorsed to provide this notice of cancellation, VENDOR shall provide CITY notice of such cancellation, in writing, not later than 24 hours following the effective time of such cancellation.

10. Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Each such insurance policy shall contain language substantially similar to the following clause:
"The City of Pismo Beach, its elected and appointed officials, officers, employees, and agents are named as additional insureds as respects operations of the named insured performed under contract with the City of Pismo Beach." CITY need not be named as an additional insured on professional liability insurance policies.

11. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement 8 of 12
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of any kind that has not been first submitted to CITY and approved of in writing by CITY’s Risk Manager or City Attorney.

12. Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that VENDOR’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

13. Pass-through clause. VENDOR agrees to ensure that its sub-consultants, sub- contractors, and any other party providing any work under the Scope of Services under the direction of VENDOR, provide the same minimum insurance coverage and endorsements required of VENDOR. VENDOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. VENDOR agrees that upon request, all AGREEMENTS with consultants, subcontractors, and others engaged in performing work under the Scope of Services will be submitted to CITY for review.

14. CITY’s right to revise specifications. CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving VENDOR ninety (90) days' advance written notice of such change. If such change results in substantial additional cost to VENDOR, CITY and VENDOR may renegotiate VENDOR’s compensation.

15. Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by CITY.

16. Timely notice of claims. VENDOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from VENDOR’s performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.

17. Additional insurance. VENDOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Scope of Services.

XVI. SUBCONTRACTORS

Before VENDOR retains or hires a subcontractor to provide any work, labor, or services relative to this AGREEMENT, VENDOR must:

A. Present the name and identifying information of the subcontractor that will provide any work, labor, or services to CITY;

B. Present to CITY the form of subcontract that will be used with the subcontractor for CITY’s approval, which approval will not be unreasonably withheld. Such subcontract agreement must include an indemnity agreement that is generally in accord with the indemnity obligations contained in paragraph XII of this AGREEMENT and must specifically name CITY as an indemnified party; and

C. Secure from the subcontractor evidence of insurance coverage that meets with this AGREEMENT including naming CITY as an additional insured as required by this AGREEMENT, unless such requirement is waived in writing by CITY's Risk Manager as provided in paragraph XXV below.

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XVII. CONFLICT OF INTEREST

No officer or employee of CITY may have any financial interest, direct or indirect, in this AGREEMENT, nor may any officer or employee participate in any decision relating to the AGREEMENT that affects the officer or employee’s financial interest or the financial interest of any corporation, partnership, or association in which the officer or employee is directly or indirectly interested, in violation of any law, rule or regulation.

No person may offer, give, or agree to give any officer or employee or former officer or employee, nor may any officer or employee solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.

XVIII. NOTICE

All notices, requests, demands, or other communications under this AGREEMENT will be in writing.

Notice will be sufficiently given for all purposes as follows:

A. Personal delivery. When personally delivered to the recipient; notice is effective on delivery.

B. First Class mail. When mailed first class to the last address of the recipient known to the party giving notice; notice is effective three mail delivery days after deposit in a United States Postal Service office or mailbox.

C. Certified mail. When mailed certified mail, return receipt requested; notice is effective on receipt, if delivery is confirmed by a return receipt.

D. Overnight delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender’s account; notice is effective on delivery, if delivery is confirmed by the delivery service.

E. Facsimile transmission. When sent by fax to the last fax number of the recipient known to the party giving notice; notice is effective on receipt. Any notice given by fax will be deemed received on the next business day if it is received after 5:00 p.m. (recipient’s time) or on a non- business day.

Addresses for purpose of giving notice are as set forth immediately following the signatures of the parties executing this AGREEMENT.

F. Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified, will be deemed effective as of the first date the notice was refused, unclaimed or deemed undeliverable by the postal authorities, messenger or overnight delivery service.

G. Either party may change its address or fax number by giving the other party notice of the change in any manner permitted by this AGREEMENT. Any change in address or fax number that is not provided to the other party will not void delivery of any notice under this AGREEMENT, and delivery to the last known address or fax number shall be deemed sufficient for notice under this AGREEMENT.
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XIX. PROHIBITION AGAINST ASSIGNMENT AND SUBCONTRACTING

This AGREEMENT and all exhibits are binding on the heirs, successors, and assigns of the parties.

The AGREEMENT may not be assigned or subcontracted by either CITY or VENDOR without the prior written consent of the other.

XX. INTERPRETATION

The terms of this AGREEMENT shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this AGREEMENT or any other rule of construction that might otherwise apply.

XXI. SEVERABILITY

If any part of this AGREEMENT is found to be in conflict with applicable laws, that part will be inoperative, null and void insofar as it is in conflict with any applicable laws, but the remainder of the AGREEMENT will remain in full force and effect.

XXII. TIME OF ESSENCE

Time is of the essence in the performance of this AGREEMENT.

XXIII. GOVERNING LAW; JURISDICTION

This AGREEMENT will be administered and interpreted under the laws of the State of California.

Jurisdiction of and venue for any litigation arising from the AGREEMENT will be in the Superior Court of the San Luis Obispo County, or in the United States District Court for the Central District of California.

XXIV. COMPLIANCE WITH STATUTES AND REGULATIONS

VENDOR will be knowledgeable of and will comply with all applicable federal, state, county and city statutes, rules, regulations, ordinances and orders. VENDOR and its subcontractor(s) shall not discriminate against any person in the performance of this AGREEMENT on the basis of race, religion, national origin, color, age, sex, sexual orientation, AIDS, HIV status, disability, or any other basis protected by state or federal law, and shall comply with applicable federal and state equal employment opportunity laws, ordinances, rules and regulations.

XXV. WAIVER OF BREACH

No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default will impair the right or remedy or be construed as a waiver. A party’s consent or approval of any act by the other party requiring the party’s consent or approval will not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and will not be a waiver of any other default concerning the same or any other provision of this AGREEMENT.

XXVI. ATTORNEY’S FEES

Except as provided for in paragraph XV, in any dispute, litigation, arbitration, or other proceeding by which one party either seeks to enforce its rights under this AGREEMENT (whether in contract, tort or both) or seeks a declaration of any rights or obligations under this AGREEMENT, the prevailing party Council Agenda 12-6-2022 9.F-22
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will be awarded reasonable attorney’s fees, together with any costs and expenses, to resolve the dispute and to enforce any judgment, including post judgment attorney’s fees costs and expenses and any attorneys’ fees or costs incurred on appeal of any judgment.

XXVII. EXHIBITS

All exhibits identified in this AGREEMENT are incorporated into the AGREEMENT by this reference.

In the event of any conflict between the terms of this AGREEMENT and the terms of an exhibit, the terms of this AGREEMENT shall control. Notwithstanding the foregoing sentence, the provisions of Section XIII of this AGREEMENT shall not be altered, amended, limited or otherwise affected in any manner by any language included in an exhibit to this AGREEMENT, even if such exhibit purports to affect the provisions of Section XIII.

XXVIII. VENDOR’S AUTHORITY TO EXECUTE

The persons executing this AGREEMENT on behalf of the VENDOR warrant that:

A. the VENDOR is duly organized and existing under the appropriate State laws; B. they are duly authorized to execute this AGREEMENT on behalf of the VENDOR; C. by so executing this AGREEMENT, the VENDOR is formally bound to the provisions of this AGREEMENT; and
D. entering into this AGREEMENT does not violate any provision of any other AGREEMENT to which the VENDOR is bound.

XXIX. INTEGRATION; AMENDMENT

This AGREEMENT represents the entire understanding of CITY and VENDOR as to those matters contained in it. No prior oral or written understanding will be of any force or effect with respect to the terms of this AGREEMENT. The AGREEMENT may not be modified or altered except in writing signed by both parties.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year last written below.

Signatures begin on next page.

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CITY:

City of Pismo Beach, a Municipal Corporation

Signed:

Name: Matthew J. Downing
Title: Community Development Director
Dated: ________________________________

Signed:

Name: James R. Lewis
Title: City Manager
Dated: ________________________________

Address for giving notice (See Section XVIII):
760 Mattie Road, Pismo Beach, CA 93449

ATTEST:

Signed:

Name: Erica Inderlied
Title: City Clerk

APPROVED AS TO FORM:

Signed:

Name: David M. Fleishman
Title: City Attorney
VENDOR:

Bureau Veritas North America, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________

Address for giving notice (See Section XVIII):
______________________________________
______________________________________

Email address for official communications:
______________________________________

Vendor Representative (See Section VIII):

Name/Title: ____________________________

Attachments:

Exhibit A: Scope of Service
Exhibit B: Compensation Schedule
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.G
SUBJECT/TITLE:

SIDE LETTER AGREEMENT TO MEMORANDUM OF UNDERSTANDING WITH

PISMO BEACH POLICE OFFICERS ASSOCIATION
RECOMMENDATION:

Adopt a Resolution approving a Side Letter Agreement to the Memorandum of Understanding with the Pismo Beach Police Officers Association ("POA").

EXECUTIVE SUMMARY:

On May 17, 2022, the City Council adopted Resolution R-2022-039 approving a three- year Memorandum of Understanding (MOU) with the Pismo Beach Police Officers Association bargaining team for the period of July 1, 2022, through June 30, 2025 (Fiscal Years (FY) 2023, 2024, and 2025). Since approval of that MOU, the POA identified an item that was inadvertently left out of the negotiation process.

The City and the POA negotiated in good faith and completed labor negotiations in one day, which led to the oversight. The Specialty Pay for Detective Assignment, which will be established by approval of this side letter, will keep the City competitive in overall compensation, which benefits retention and attraction of qualified law enforcement professionals. This Side Letter would not become precedential.

Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) approving the Side Letter Agreement (Attachment 1.A) to the Memorandum of Understanding with POA.

FISCAL IMPACT:

The fiscal impact of adopting the Resolution is estimated to be $4,800 in FY 2023; $5,400 in FY 2024, and $6,000 in FY 2024 in the General Fund Police Department personnel budget. Based on currently estimated salary savings due to vacancies in the Police Department, there is sufficient budget available to support the cost in FY 2023, while future year costs will be incorporated into the City’s next two-year budget.

ALTERNATIVES:

1. Provide staff with other direction.

ATTACHMENTS:

1. Resolution

1.A. Exhibit A to Resolution: Side Letter Agreement to MOU with SEIU Prepared by: Meeting Date: December 6, 2022
Jorge Garcia, Assistant City Manager
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 APPROVING A SIDE LETTER AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING WITH THE POLICE OFFICERS ASSOCIATION (“POA")

WHEREAS, the Memorandum of Understanding (MOU) is the collective bargaining agreement between the City of Pismo Beach and the POA; and

WHEREAS, on May 17, 2022, the City Council adopted Resolution R-2022-039 approving a three-year MOU with the Pismo Beach Police Officers Association for the period of July 1, 2022, through June 30, 2025 (Fiscal Years 2023, 2024, and 2025); and

WHEREAS, a Side Letter Agreement is proposed to address an inadvertent omission of a Special Duty Assignment during the negotiation process; and

WHEREAS, the City Council believes that providing broadly competitive salaries and benefits retains and attracts quality employees to serve the Pismo Beach community including its residents, businesses, and taxpayers.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves the Side Letter Agreement for Specialty Pay for Detective Assignment, which is attached hereto as Exhibit A.

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 6 th day of December 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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SIDE LETTER AGREEMENT BETWEEN

THE CITY OF PISMO BEACH,

CALIFORNIA
(HEREINAFTER CALLED “CITY”)

AND

PISMO BEACH POLICE OFFICERS ASSOCIATION
(HEREINAFTER CALLED “POA”)

WHEREAS, the City and POA have an existing Memorandum of Understanding from July 1, 2022 through June 30, 2025; and
WHEREAS, the City and POA negotiated in good faith and through an oversight in the negotiation process the POA inadvertently left out a request for Special Duty Assignment; and WHEREAS, the City and POA mutually acknowledge that this Side Letter and the process for remedying the oversight shall be non-precedential.

NOW THEREFORE, City and POA hereby agree to modify the following section of the Memorandum of Understanding (MOU):

ARTICLE 11 EXTRA COMPENSATION
C.1. Certification Pay
[the following paragraph to be added]
ARTICLE 11. EXTRA COMPENSATION
B. Special Duty Assignments

9. Detective Duty
Purpose
Unit employees assigned to detective investigate complex cases which require additional training and expertise, which are unique to the detective duty assignment.

Compensation
Effective the first full pay period in July 2022, unit employees who are assigned to detective duty will receive extra compensation in the amount of $200 per month above the base salary. Effective the first full pay period in July 2023, this compensation shall be increased to $225 per month above the base salary.

Effective the first full pay period in July 2024, this compensation shall be increased to $250 per month above the base salary.

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This extra compensation is granted in recognition of the assigned duties and responsibilities of the detective duty assignment.

This Side Letter Agreement identifies those articles, sections, and subsections of the Memorandum of Understanding between the City and the POA that the parties have mutually agree to revise. All other terms of the Memorandum of Understanding remain in full force and effect.

CITY OF PISMO BEACH Representative PISMO BEACH POLICE OFFICERS ASSOCIATION Representative

_______________________________ __________________________________ Date: ___________ Date: ___________

Council Agenda 12-6-2022 9.G-4
Attachment 1.A
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.H

SUBJECT/TITLE:

AMENDMENT #4 TO AGREEMENT WITH RINCON CONSULTANTS, INC. FOR

PROFESSIONAL SERVICES RELATED TO CENTRAL COAST BLUE

ENVIRONMENTAL DOCUMENTS

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to execute Amendment #4 to the existing Professional Services Agreement with Rincon Consultants, Inc. for Preparation of Environmental Documents for Central Coast Blue in the amount of $66,273.

BACKGROUND:

In June 2017, the City Council awarded a contract to Rincon Consultants, Inc. (Rincon) for preparation of environmental documents related to Central Coast Blue, which at the time was known as the Regional Groundwater Sustainability Program or RGSP.

Amendment #1 was prepared and executed under the City Manager’s authority and covered additional work related to archaeological resources services for an Extended Phase 1 study. Amendment #2 was also executed under the City Manager’s authority and covered a cost modification due to additional work required by the selection of the project site for the advanced water treatment facility. Both amendments were executed in February of 2020. Amendment #3 was approved by City Council on December 21, 2022, and addressed out of scope services that resulted from initial project delays and changes to the project description that occurred between 2017 and 2019 such as the location of the Advanced Treatment Facility, a move from a programmatic level review to a project level review, and revisions to the Environmental Impact Report (EIR) due to updates in CEQA Guidelines.

Rincon is continuing to work on completion of the environmental permitting, which was included in the original scope of work for Phase 1 of Central Coast Blue. Since preparation of the technical studies and certification of the 2021 EIR for the project, several changes to the layout of project components have occurred, including re-location of three injection wells and nine monitoring wells along with reconfiguration of the proposed pipeline alignments. To address these changes, Rincon has determined that an Addendum is the appropriate level of documentation for the project to achieve compliance with the California Environmental Quality Act (CEQA).

The proposed contract Amendment #4 (Attachment 1.A) will cover the costs associated with preparing the updated technical studies and the Addendum to the 2021 Final Environmental Impact Report. It is anticipated that the Addendum will be approved by the City of Grover Beach through the processing of permits for the Advanced Treatment Facility.

Council Agenda 12-6-2022 9.H-1
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Conclusion and Recommendation
Staff recommends the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #4 (Attachment 1.A) to the existing Rincon contract to allow Rincon to move forward with the environmental and land use permitting processes for Central Coast Blue.

FISCAL IMPACT:

The fiscal impact of the attached Resolution is $66,273 in additional expenditures and corresponding reimbursements for a net fiscal impact of $0 for the Central Coast Blue project. The City of Pismo Beach has entered into cost sharing agreements with the Cities of Arroyo Grande and Grover Beach for these agencies to cover these additional Central Coast Blue costs, each supporting 50% of the costs of this contract amendment, as part of the cost-sharing for the project. The agreements call for the City of Pismo Beach to pay for the project using the City’s existing budget in the Water and Wastewater Enterprise Funds, and that the Cities of Arroyo Grande and Grover Beach would promptly reimburse the City for the related costs of this contract amendment.

ALTERNATIVES:

1.Decline approval of Amendment #4 and provide staff with direction on how to proceed.

ATTACHMENTS:

1. Resolution

1.A Exhibit A to Resolution: Proposed Rincon Contract Amendment #4 Prepared by: Meeting Date: December 6, 2022
Erin Olsen, Management Analyst, Public Works/Engineering Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:

Council Agenda 12-6-2022 9.H-2
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RESOLUTION NO. R-2022-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #4

TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH RINCON CONSULTANTS, INC. FOR PREPARATION OF ENVIRONMENTAL DOCUMENTS FOR CENTRAL COAST BLUE IN THE AMOUNT OF $66,273

WHEREAS, in June of 2017, the City Council awarded a contract to Rincon Consultants, Inc. (Rincon) for preparation of environmental documents related to Central Coast Blue, which at the time was known as the Regional Groundwater Sustainability Program or RGSP; and

WHEREAS, Amendments #1 and #2 were prepared and executed under the City Manager’s authority per the purchasing policy in February 2020 and Amendment #3 was approved by the City Council on December 21, 2021; and

WHEREAS, Amendment #4 will cover preparation of updated technical studies and the Addendum to the 2021 Final Environmental Impact Report Central Coast Blue needed to achieve compliance with the California Environmental Quality Act (CEQA); and

WHEREAS, the City of Pismo Beach has entered into cost-sharing agreements with the Cities of Arroyo Grande and Grover Beach for these agencies to cover these additional Central Coast Blue costs, each supporting 50% of the costs of this contract amendment, as part of the cost-sharing for the project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #4 (Exhibit A) to the existing Professional Services Agreement with Rincon Consultants, Inc. for Preparation of Environmental Documents for Central Coast Blue in the amount of $66,273.

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 6th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:

________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 12-6-2022 9.H-3
Attachment 1
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AMENDMENT # 4
to the
JUNE 20, 2017 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND RINCON CONSULTANTS, INC.

Pursuant to the June 20, 2017 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Rincon Consultants, Inc., hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:

1. Additional services shall be performed as set forth in the proposal dated November 2, 2022, which is attached hereto and by this reference made a part hereof.

2. Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of sixty-six thousand two hundred seventy-three dollars ($66,273), without prior written approval of the City.

3. The revised fee under the June 20, 2017 contract, plus addendums 1-4, is four hundred thirty-one thousand four hundred thirty dollars ($431,430).

4. All other provisions of the Preparation of Environmental Documents agreement between City and Vendor shall remain in full force and effect.

CITY:

City of Pismo Beach, a Municipal Corporation

Signed:

Name: Benjamin A. Fine, P.E.

Title: Director of Public Works/City Engineer
Dated: ________________________________

Signed:

Name: James R. Lewis
Title: City Manager
Dated: ________________________________

ATTEST:

Signed:

Name: Erica Inderlied
Title: City Clerk

APPROVED AS TO FORM:

Signed:

Name: David M. Fleishman
Title: City Attorney
VENDOR:

Rincon Consultants, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________

Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________

Email address for official communications:
(if changed from prior agreement)
______________________________________

Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________

Attachment: Scope/Cost Proposal
Council Agenda 12-6-2022 9.H-4
Attachment 1.A
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Rincon Consultants, Inc.
1530 Monterey Street, Suite D
San Luis Obispo, California 93401
805 547 0900
[email protected]
www.rinconconsultants.com
E n v i r o n m e n t a l S c i e n t i s t s P l a n n e r s E n g i n e e r s November 2, 2022
Project No: 15-01882
City of Pismo Beach
Attn: Benjamin Fine, Public Works Director
760 Mattie Road
Pismo Beach, CA 93449
Via email: [email protected]
Subject: Additional Services Proposal to Prepare Updated Technical Studies and Addendum to the 2021 Final Environmental Impact Report for the Central Coast Blue Project, Oceano, California
Dear Mr. Fine:

Rincon Consultants, Inc. (Rincon) is presenting this additional services proposal to prepare updated technical studies and an Addendum to the 2021 Final Environmental Impact Report (2021 EIR; SCH# 2019120560) for the Central Coast Blue project (Original Project). Since preparation of the technical studies and certification of the 2021 EIR for the Original Project, several changes to the layout of project components have occurred, including re-location of three injection wells and nine monitoring wells along with reconfiguration of the proposed pipeline alignments (Modified Project). Based on our review of these project design changes, we anticipate an Addendum is the appropriate level of documentation for the Modified Project to achieve compliance with the California Environmental Quality Act (CEQA). An Addendum is the appropriate document to prepare when some changes or additions to a previously certified EIR are necessary but none of the conditions requiring preparation of a Subsequent EIR are met.1 Preparation of the updated technical studies and an Addendum to the 2021 EIR is necessary to complete the coastal development permitting process for the project, move forward with the United States Bureau of Reclamation National Environmental Policy Act (NEPA) process associated with the maintain the project for other potential funding
opportunities, such as the State Water Resources Control Board (SWRCB) State Revolving Fund (SRF) program. The following sections present our detailed scope of work, cost estimate, and schedule to prepare the updated technical studies and Addendum to the 2021 EIR for the Modified Project. For tracking purposes, task numbering has been continued from our existing scope of work, which includes Tasks 1 through 14.
1 Conditions triggering preparation of a Subsequent EIR include new significant environmental effects or a substantial increase in the severity of previously identified significant effects due to substantial project changes, substantial changes in the project circumstances, or new information of substantial importance which was not known or could not have been known at the time the previous EIR was certified Council Agenda 12-6-2022 9.H-5
Attachment 1.A
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City of Pismo Beach
Central Coast Blue Project

Scope of Work
Task 15 Updated Technical Studies
In 2020 and 2021, several technical studies were prepared to evaluate the environmental impacts of the Original Project, including a Biological Resources Assessment, Cultural Resources Assessment, and Paleontological Resources Assessment. Due to project design changes, updates to these technical studies are necessary to adequately assess the impacts of the Modified Project to biological, cultural, and paleontol
Task 15.1 Updated Biological Resources Assessment
Rincon will update the 2021 Biological Resources Assessment to assess the potential for the Modified Project to impact biological resources. Revisions will be focused primarily on the project description, existing conditions, impact analysis, mapping, site photographs, and the floral and faunal compendium.

In support of this update, Rincon will complete a biological resources reconnaissance survey of the revised locations of project components and will request an updated official query of the United States No updates will be made to
agricultural irrigation pipelines).

Task 15.2 Updated Cultural Resources Assessment
Rincon will update the 2020 Cultural Resources Assessment to assess the potential for the Modified Project to impact historic and archaeological resources. Revisions will be focused primarily on the project description, impact analysis, mapping, and site photographs. In support of this update, Rincon will complete a Phase 1 cultural resources survey of the new locations of project components and Extended Phase I testing at the location of IW-3 because it is located within the boundaries of a known archaeological deposit. Due to the length of time that has passed since the 2020 Cultural Resources Assessment was prepared, new cultural resources records and Sacred Lands File searches as well as follow-up outreach to Native American Tribes and local interested parties will be conducted. Rincon will also assist
efforts should the City choose to conduct follow-up outreach. No updates will be made to the discussion pipelines).

Task 15.3 Updated Paleontological Resources Assessment
Rincon will update the 2020 Paleontological Resources Assessment to assess the potential for the Modified Project to impact paleontological resources. Revisions will be focused primarily on the project description, impact analysis, and mapping.
production well and potential agricultural irrigation pipelines).

Task 16 Addendum to the 2021 EIR
The Addendum to the 2021 EIR will compare the impacts of the Modified Project to those evaluated in the 2021 EIR for the Original Project. It is presumed the analysis will find the Modified Project would not have new significant environmental effects and would not increase the severity of previously identified Council Agenda 12-6-2022 9.H-6
Attachment 1.A
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City of Pismo Beach
Central Coast Blue Project

significant environmental effects outlined in the 2021 EIR. If this turns out not to be the case, we will notify the City immediately to discuss an appropriate course of action.

The Addendum will include an Introduction, which will contain a brief description of the Central Coast Blue Project and the 2021 EIR and explain the relationship of this document to previous analyses as well as a description of the required contents and applicability of preparing an Addendum. A Project Description for the Modified Project will be drafted based on materials and project mapping provided by Water Systems Consulting. An analysis of CEQA checklist issue areas will be provided, describing the difference in impacts between those identified in the 2021 EIR for the Original Project and those anticipated for the Modified Project and comparing impacts to applicable thresholds of significance. This analysis will focus primarily on the impact areas for which the 2021 EIR includes standalone chapters air quality, biological resources, cultural resources, energy, environmental justice, greenhouse gas emissions, hazards and hazardous materials, hydrology and water quality, land use, noise, and transportation. The air quality, energy, and greenhouse gas analyses will include updates to the quantitative modeling, if determined to necessary upon receipt of construction parameters for the Modified Project. A brief discussion will also be provided for the impact areas covered in the Effects Found Not to Be Significant section of the 2021 EIR. The analysis will discuss the applicability of the mitigation measures identified in the 2021 EIR to the Modified Project. Rincon will respond to up to two rounds of consolidated comments on the Draft Addendum, to be provided in editable electronic format (i.e., as tracked changes in Word) (assumed to be Water Systems Consulting [WSC]/the City for the first round and the relevant coastal development permitting agencies for the second round), and incorporate revisions as needed.

The Addendum is not required to be circulated for public review under CEQA, but public review is required to satisfy SWRCB requirements for the SRF program. Therefore, Rincon will prepare a Notice of Intent to Adopt the Addendum for submittal to the San Luis Obispo County Clerk-Recorder and State Clearinghouse. Rincon will also provide an electronic version (PDF) of the Addendum for posting on the websites of the City and the State Clearinghouse. Rincon assumes the City will file the Notice of Intent with the San Luis Obispo County Clerk-Recorder, and Rincon will file the Notice of Intent with the State Clearinghouse. Rincon will publish the Notice of Intent in a newspaper of general circulation and will mail the Notice of Intent to a list of interested parties (assumed to be the parties who were provided with the Notice of Availability for the Draft EIR and those who submitted comments on the Draft EIR).

Responsible and trustee agencies will either be notified electronically via the State Clearinghouse (for state agencies) or via certified mail (for up to 10 federal, regional, and local agencies). All other interested parties (up to 50) will receive the Notice of Intent via regular mail.

As required by SWRCB for the SRF program, upon receipt of public comments on the Draft Addendum, Rincon will prepare and submit an electronic copy of the draft responses to comments for review by WSC and the City, including any added or substantially revised sections of the Draft Addendum that may be necessary. This scope of work assumes up to three brief (under five pages) comment letters will be received, which can be adequately responded to in a maximum of 20 professional staff hours. The actual level of effort required to respond will depend on the length, detail, and sophistication of the comments, in addition to the number of letters received. We reserve the right to reevaluate the effort level and request a scope amendment upon close of the public comment period.

The Final Addendum will include the mitigation monitoring and reporting program prepared for the Original Project, with updates to mitigation measures and implementation requirements, if necessary.

Council Agenda 12-6-2022 9.H-7
Attachment 1.A
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City of Pismo Beach
Central Coast Blue Project

Rincon will provide an electronic version (PDF) of the Final Addendum to the City; no hard copies will be provided.

If determined to be necessary by City legal counsel, Rincon will also complete a Notice of Determination (NOD) form for filing with the San Luis Obispo County Clerk-Recorder and State Clearinghouse upon adoption of the Addendum and issuance of a project-related discretionary approval. Rincon will file the NOD with the State Clearinghouse within five days of the project-related discretionary approval, and we assume the public agency issuing the approval will file the NOD with the County Clerk-Recorder. This scope does not include payment of any filing fees.

Task 17 CEQA Project Management
Under Task 17, Rincon will provide project management and coordination for the updated technical studies and the Addendum to the EIR. It is anticipated that up to two additional coordination calls (estimated at one hour each) with WSC and the City will occur to ensure regular communication and status updates.

Schedule
The following schedule was developed to identify the projected timeline for each task under this scope of work.
-off meeting within one week of authorization to
proceed.

Rincon will submit a draft Project Description for the Modified Project within two weeks of receipt of a KMZ of the maximum estimated footprint of disturbance.

Rincon will submit the first Administrative Draft Addendum and updated technical studies to WSC and the City within eight weeks of receipt of approval of the Project Description, assuming the Sacred Lands File search results are received within six weeks.

Rincon will submit the second Administrative Draft Addendum and updated technical studies to the coastal development permitting agencies within two weeks of receipt of comments from WSC and the City.

Rincon will submit the Public Review Draft Addendum to WSC and the City within two weeks of receipt of comments from the coastal development permitting agencies.

The Public Review Draft Addendum will be distributed for the required 30-day public and agency review period.

Within two weeks of the close of the public and agency review period, Rincon will submit the Final Addendum for City and WSC review.

Within five working days of the project-related discretionary approval, Rincon will file the NOD with the State Clearinghouse, if determined to be necessary by City legal counsel.

Cost
Our proposed budget for Tasks 15 through 17 is $66,273.00, which includes a $3,000 contingency budget that can be utilized if the level of effort for responses to comments on the Draft Addendum Council Agenda 12-6-2022 9.H-8
Attachment 1.A
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City of Pismo Beach
Central Coast Blue Project

exceeds our estimated level of effort for this scope of work.The contingency budget will only be utilized upon receipt of written authorization from the City. The table on the following page shows a breakdown of costs by task. The following assumptions are included in this cost estimate:

WSC will provide sufficient information, including a KMZ of the maximum estimated footprint of disturbance, that adequately depicts all proposed work on site prior to the initiation of our scope of work. No changes to the project footprint will occur after it is provided to Rincon.

No access issues will be encountered during site visits, and access permission will be provided in writing prior to fieldwork.

Rincon is not responsible for delays due to weather, site conditions (e.g., prohibited access, flooding, The identification of potential special-status species habitat will be based on a suitability analysis level only; the biological resources reconnaissance survey does not include definitive surveys for the presence or absence of a species.

No listed species will be observed during the biological resources reconnaissance survey.

No additional cultural resources other than the archaeological deposit at IW-3 will be identified as part of the cultural resources fieldwork.

Direct expenses for the cultural resources records search will not exceed $900. Turnaround times associated with the cultural resources records and Sacred Lands File searches, which are outside of six to 10 weeks.

No updated fossil locality search, paleontological field survey, or noise measurements will be conducted.

Publication of the Notice of Intent in the San Luis Obispo Tribune will not exceed a direct cost of $600.

The Notice of Intent will be mailed via certified mail to up to 10 recipients and via regular mail to up to 50 recipients.

Responses to comments received on the Draft Addendum can be responded to in a maximum of 20 professional staff hours.

All deliverables will be provided in electronic (Microsoft Word or PDF) version. No hard copies of deliverables will be provided.

This scope of work does not include accessibility compliance for deliverables. If desired, deliverables can be made compliant with digital accessibility standards for additional cost.

We will respond to one round of comments from WSC and the City on each project deliverable (unless otherwise indicated in the scope of work), and comments will be provided as a consolidated set in editable electronic format (i.e., as tracked changes in Word).

The City will be responsible for payment of all CEQA filing fees. materials basis, if requested.

All the terms of this proposal are fully negotiable to meet the needs of the City. Work would be conducted in accordance with our existing contract dated June 20, 2017. This proposal is valid for a period of 30 days during such time all questions may be directed to Annaliese Torres, Senior Council Agenda 12-6-2022 9.H-9
Attachment 1.A
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City of Pismo Beach
Central Coast Blue Project

Environmental Planner. We look forward to the opportunity to continue to support this important project.

Sincerely,
Rincon Consultants, Inc.

Annaliese Torres Jennifer Haddow, PhD
Senior Environmental Planner Principal Environmental Scientist Cost Estimate
Hours Labor Budget Direct Expenses Total Budget
Task 15 Updated Technical Studies
Task 15.1 Updated Biological Resources
Assessment
74 $13,768.00 $195.00 $13,963 .00
Task 15.2 Updated Cultural Resources
Assessment
118 $20,639.00 $1,705.00 $22,34 4.00
Task 15.3 Updated Paleontological
Resources Assessment
14 $2,366.00 $0.00 $2,366.00
Task 16 Addendum to the 2021 EIR 106 $18,266.00 $840.00 $19,106.00 Task 17 CEQA Project Management 28 $5,494.00 $0.00 $5,494.00 Contingency Budget $3,000.00 $0.00 $3,000.00
TOTAL 340 $63,533.00 $2,740.00
$66,273 .00
Direct Expenses Summary Amount
Vehicle Costs $535.00
Standard Field Equipment Package $330.00
NOI Certified Mailings $100.00
NOI Regular Mailings $50.00
Newspaper Publication Fee $690.00
Direct Expenses Subtotal $2,740.00
Professional Services This cost estimate is based on Rincon's standard fee schedule and labor classifications. The above is provided as an estimate of Rincon's effort per task. Rincon may reallocate budget between staff and tasks, as long as the total contract price is not exceeded.

Annual Escalation Standard rates subject to escalation annually.

Council Agenda 12-6-2022 9.H-10
Attachment 1.A
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.I

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: December 6, 2022
Erica Inderlied, City Clerk
City Manager Approval:

9.I-3Council Agenda 12-6-2022
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #11.A

SUBJECT/TITLE:

PUBLIC HEARING TO RECEIVE COMMUNITY INPUT AND REQUESTS FOR USE OF

COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS

RECOMMENDATION:

1. Conduct a public hearing to receive input on the disbursement of the City’s allocation of Community Development Block Grant funds for the 2023 Action Plan Year;

2. Adopt a Resolution identifying draft recommendations to the County of San Luis Obispo for inclusion in the 2023 Community Development Block Grant Action Plan.

BACKGROUND:

The City of Pismo Beach and other cities in San Luis Obispo County are part of the San Luis Obispo Urban County group to receive Community Development Block Grant (CDBG) funds from the Department of Housing and Urban Development (HUD) for Fiscal Years 2021–2023 (Cooperation Agreement with County of San Luis Obispo). A total of $34,922 in CDBG funds is estimated to be allocated to the City for low-income housing and community service needs. These funds include $4,540 for County administrative costs and $2,444 for City administrative costs. The net amount available after excluding the County administrative costs is estimated to be $30,382 (including the City’s administrative costs). Pursuant to the agreement between the City and the County, the County acts as the applicant for CDBG funds and is responsible for administering the CDBG funding awarded by HUD. It is estimated that funds would be available for project work in the second half of 2023.

Two valid applications for CDBG funds have been received during the public review period, including applications from 5 Cities Homeless Coalition (5CHC) and Community Action Partnership San Luis Obispo (CAPSLO) for Minor Home Repair. 5CHC has requested for the entirety of the City’s Public Services funds, which are capped at 15% of the City’s total CDBG allocations, or $5,238. CAPSLO has requested funds ($22,700) to support CDBG Housing funds, which are not capped. Tonight’s action is focused on a recommendation to the Board of Supervisors regarding the two applications received.

5 Cities Homeless Coalition
The 5CHC Rapid Re-Housing program connects families and individuals experiencing homelessness to permanent housing through a tailored package of time-limited financial assistance and targeted supportive services. The Rapid Re-Housing program involves intensive and specialized case management targeted at identifying displaced clients’ most pertinent needs and connecting them to community resources.

Homeless Prevention Services will be provided to those at imminent risk of homelessness based on need and qualification. Clients receive targeted case management services per their individual circumstance, in addition to direct financial assistance to enable them to

11.A-1Council Agenda 12-6-2022
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remain in their housing, or deposit assistance needed to re-house them to prevent homelessness. Services may include financial literacy, job and income counseling, benefits advocacy (for unearned income support, as appropriate), and housing search support.

The 5CHC proposal is requesting a total of $5,238 from the City’s allocation. The program is intended to be augmented by other services also provided by 5CHC. 5CHC is requesting a combined total of $92,333 from Pismo Beach and other County jurisdictions.

The summary of the proposal, provided as Attachment 2, would assist participants to secure long-term stable housing that they can afford and retain. As noted in the application:

“Rapid rehousing is a primary solution for ending homelessness. It has been demonstrated to be effective in getting people experiencing homelessness into permanent housing and keeping them there. By connecting people with a home, they are in a better position to address other challenges that may have led to their homelessness, such as obtaining employment or addressing substance abuse issues. Rapid re-housing is also less expensive than other homeless interventions, such as shelter or transitional housing. The program also provides immediate assistance to participants who are homeless or at risk. Program outcomes track length of time homeless; length of time homeless from program enrollment; income changes and housing retention rates.”

CAPSLO
By way of background, CAPSLO contracted with the Pismo Beach Redevelopment Agency (RDA) and operated a Home Improvement Program from 2008–2012 for minor home improvements and other more major repairs like new roofs and plumbing replacement. 140 very-low- to moderate-income Pismo Beach households, primarily in the city’s three mobile home parks, were served until early 2012 when the City’s RDA was disbanded by state mandate. Typical costs for improvements per coach with severe deficiencies and structural problems ran $7,000–$18,000.

Since 2012, CAPSLO has operated smaller programs with other funding sources to continue to serve the City’s low-income homeowners. CAPSLO’s Senior Home Repair Program has assisted families with improvements like installation of grab bars, fixing leaking faucets, and other minor repairs. CAPSLO’s Weatherization Program served 69 Pismo Beach households with 12 water heater replacements, 10 furnace replacements and assistance to 163 elderly and/or disabled households with utility assistance (once-a year payment for a gas or electric bill).

For the upcoming 2023 CDBG Action Plan cycle, CAPSLO is requesting $22,700 to support the Minor Home Repair program. The program provides a variety of repairs and removal of architectural barriers that restrict accessibility; an individuals’ ability to move in, around, and remain in their home. The goal of the program is to increase self-

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sufficiency and prevent homelessness or placing individuals in the difficult position of deciding to move into a facility because their home is no longer accessible.

The summary of the proposal (Attachment 3) would enable a variety of home repairs for lower income families, seniors, and disabled individuals. As noted in the application:

“Minor Home Repair provides necessary home repair and access-improvement services for low- and very low-income, elderly and disabled individuals residing in single-family homes, mobile homes, and multi-family units to allow them to remain independent and in permanent, stable housing.”

Discussion
CDBG funds designated for Pismo Beach are for low-income housing and community service needs. Following multiple public hearings by the County over the past several months, seeking public input on use of the CDBG funds, the application period for funding concluded in November 2022. Participating agencies have been asked to forward recommendations from their legislative bodies regarding disbursement of the funds. Once the recommendations are made, the County will develop a Draft 2023 Action Plan (required by HUD) that identifies how CDBG funds will be used. Staff will return to Council in spring 2023 with the Draft 2023 Action Plan for review.

5CHC is requesting Public Services funds only, which are capped at 15% of the Urban County’s total CDBG allocations. The County advises against individual cities recommending greater than 15% for their respective allocations to Public Services applications to ensure jurisdictions are not recommending cumulative allocations greater than this limit. 5CHC has come to rely on the City’s Public Services funds for its programs.

As such, staff recommends the full 15% allocation of Public Services funds ($5,238) be recommended for 5CHC. While the amount the City can contribute to 5CHC does not meet the minimum $8,000 required by the 2021–2023 Cooperative Agreement, 5CHC has been successful in obtaining additional funds from the urban county group as homelessness services is a priority to meet this threshold.

CAPSLO is requesting Housing funds, which are not capped by the CDBG allocations.

Similar to 5CHC, CAPSLO has become reliant upon the City’s CDBG funding for its services. Staff recommends the remaining CDBG funds, including the City’s administrative funds, be allocated to CAPSLO, for a total allocation of $29,684. This is above the amount requested by CAPSLO, but is consistent with previous Council action.

Conclusion and Recommendation
Staff recommends the City Council develop a recommendation on the use of CDBG funds that will be forwarded to the County for use in development of the Draft 2023 Action Plan.

For the last five years, the City Council recommended that the City’s administration portion of the grant be applied to the programs. The primary reason was that other than the cost to prepare and advertise this item, there are no direct City costs associated with the administration of the program.

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Staff recommends that the Council discuss the two requests received, as well as any additional requests for funds brought to the Council during this public hearing, and develop its recommendation.

Attachment 1 to this report is a Resolution that, if adopted, will identify the City Council’s recommendation for use of Pismo Beach’s allocation of 2023 CDBG funds.

Recommended allocation amounts are included in the Resolution; however, the Council may choose to modify the funding amounts and the Resolution will be finalized accordingly.

FISCAL IMPACT:

There is a zero-dollar net fiscal impact to the General Fund. Since revenues and expenditures would be equal, there would be a net zero impact to the General Fund.

ALTERNATIVES:

1. Revis staff’s recommended funding amounts, then adopt the Resolution.

ATTACHMENTS:

1. Resolution

2. 5CHC application for funding (summary only; detailed exhibits available upon request from the City Clerk’s Office)

3. CAPSLO application for funding (summary only; detailed exhibits available upon request from the City Clerk’s Office)
Prepared by: Meeting Date: December 6, 2022
Megan Martin, Planning Manager
Submitted by: Matthew Downing, Community Development Director 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 IDENTIFYING DRAFT RECOMMENDATIONS TO THE COUNTY OF SAN LUIS OBISPO FOR INCLUSION IN THE 2023 COMMUNITY DEVELOPMENT

BLOCK GRANT ACTION PLAN
WHEREAS, on July 7, 2020, the City of Pismo Beach entered into a Cooperative Agreement with San Luis Obispo County to implement the Housing and Community Development Act of 1974 federal legislation relating to housing and community development activities administered by the Department of Housing and Urban Development; and
WHEREAS, on December 6, 2022, the City Council of the City of Pismo Beach in a duly- noticed public hearing considered testimony for the allocation of Community Development Block Grant Funds for inclusion in the San Luis Obispo County Draft 2023 Action Plan.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby recommends the County of San Luis Obispo include the following program(s) for funding in the Draft 2023 Action Plan:

1. 5 Cities Homeless Coalition Subsistence Payments Program: $5,238

2. Community Action Partnership San Luis Obispo: $29,684 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 6 th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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

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Application A: Community/Supportive Services and Infrastructure Activities Funding sources available: CDBG, ESG, PLHA, GFS

1.APPLICANT INFORMATION
•Entity Name 5Cities Homeless Coalition
•Ultimate Borrower, if applicable Click or tap here to enter text. •Application Contact (Name and Title) Janna Nichols, Executive Director •Contact Phone Number 805-471-7404 Cell; 805-574-1638 Office •Entity Address, City and Zip Code 100 S. 4th Street, Grover Beach, CA 93433 •Mailing Address (if different from above) P.O. Box 558, Grover Beach, CA 93483 •Applicant’s Website 5chc.org
•Unique Entity Identification (UEI) Number KR8JGGKBKEP9 •Type of Agency (501(c)(3), For Profit, Gov’t/Public, CHDO, Other) 501(c)(3) •Date of Incorporation March 3, 2009
•Project Management
o Project Lead Name Janna Nichols
o Title Executive Director
o Phone 805-471-7404 C, 805-574-1638
o Email [email protected]

2.PROJECT SUMMARY
•Project Title San Luis Obispo County Rapid Re-Housing/Homeless Prevention •Project Address 100 S. 4th Street, Grover Beach, CA 93433 •APN #, if applicable Click or tap here to enter text.
•Description of the Project
Provide a project description that captures the maximum anticipated scope of the application. It should include all contemplated actions which logically are, either geographically or functionally, a composite part of the project, regardless of the source of funding. Describe all physical aspects of the project, such as plans for multiple phases of development, size and number of buildings, and activities to be undertaken. Include details of the physical impacts of the project, including whether there will be ground disturbance. If applicable, indicate whether the project site will require acquisition or if the sponsor already has ownership. 5CHC seeks funds from multiple sources through this application to continue its countywide Rapid Re-Housing and Homeless Prevention program, serving communities throughout San Luis Obispo County – with the exception of Grover Beach (served through other funding sources). 5CHC's Housing Program braids available funding sources and with multiple sources of funds, 5CHC is able to target funds with differing eligibility criteria in order to maximize their use to serve those with the highest needs and greatest number possible. 5CHC’s housing and stabilization services including landlord cultivation, case management support, and subsistence payments for rent, application fees and deposits to individuals and families based on income and anticipated need, following a coordinated entry assessment and progressive engagement model. With these activities we will work to ensure services are low- barrier and easily accessible; help participants quickly identify and resolve barriers to obtaining and maintaining housing; assist to resolve the housing crisis before focusing on other non- housing related services; allow participants to choose the services and housing that meets their needs; connect participants to appropriate support and services available in the community that foster long-term housing stability; and offer financial assistance and supportive services in a manner which offers a minimum amount of assistance initially, adding more assistance over

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time if needed to quickly resolve the housing crisis by either ending homelessness, or avoiding an immediate return to literal homelessness or the imminent risk of literal homelessness

3. BUDGET
• Funds Requested (Amount and Source) ESG $151,945; PLHA $149,978; CBBG – AG $13,095, Atas $$4,667, MB $3,500, PR, $16,333, PB $5,238, SLO $20,333, County $29,167
• Total Project/ Program Cost (Identify funding to be used to support the project throughout affordability period, if applicable) $394.256 • Identify leveraged funds (Committed, Match, Not Yet Committed) 5CHC Match $151,945; $48,055 Additional Local Grants & Contributions • Identify additional rental assistance in project, if applicable $177,600 in direct financial assistance included in total.
• Indicate how the match requirement will be met (include sources and source documentation), if applicable. Private Contributions & Grants $200,000

4. PURPOSE & NEED
• Purpose of the Proposed Project. Describe the project by addressing each of the following:
o What activities will be undertaken? Rapid re-housing connects families and individuals experiencing homelessness to permanent housing through a tailored package of time- limited financial assistance and targeted supportive services. Rapid Re-Housing involves intensive and specialized case management targeted at identifying displaced clients’ most pertinent needs; connect them to community resources. The case manager then works with the household to create a budget; identify income opportunities; determine eligibility for entitlement programs (such as SSI and SSDI); research housing options, and create and carryout case plans. All activities are on-going throughout the year, based on referral and prioritization protocols, following each participant’s case plan. Homeless Prevention – Services will be provided to those at imminent risk of homelessness based on need and qualification. Clients receive targeted case management services per their individual circumstance, in addition to direct financial assistance to enable them to remain in their housing, or deposit assistance needed to re-house them to prevent homelessness.

Services may include financial literacy, job and income counseling, benefits advocacy (for unearned income support as appropriate), housing search supports. o What are the project goals and objectives? The goal of the program is to assist participants to secure long-term stable housing that they can afford to retain. Rapid re- housing is a primary solution for ending homelessness. It has been demonstrated to be effective in getting people experiencing homelessness into permanent housing and keeping them there. By connecting people with a home, they are in a better position to address other challenges that may have led to their homelessness, such as obtaining employment or addressing substance abuse issues. The intervention has also been effective for people traditionally perceived to be more difficult to serve, including people with limited or no income and survivors of domestic violence. Research demonstrates that those who receive rapid re-housing assistance are homeless for shorter periods of time than those assisted with shelter or transitional housing. Rapid re-housing is also less expensive than other homeless interventions, such as shelter or transitional housing. The program also provides immediate assistance to participants who are homeless or at risk.

Program outcomes track length of time homeless; length of time homeless from program enrollment; income changes and housing retention rates. o Explain the need being addressed by this project. Housing costs continue to rise year over year here in San Luis Obispo County, with more than a 20% increase in just the past year. Given the tight housing market, most available units comes from private landlords,

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with an increasing trend to charge double-deposits, 5CHC is spending an average of $4,500 to move families into housing (deposit and first month’s rent). Just since July 1, 2022 we’ve seen rents increase on average by $200-$400 per month, with a high amount of property turnover. This has affected those living in the units who are often displaced due to income limits, or those who struggle to retain housing and find themselves at imminent risk of homeelessness. These continued increases in deposits and monthly rents has had a direct effect on the number of households projected to be served by this grant, and why we are requesting expanded funds through additional funding sources. o Explain how the need was identified. The County’s recently adopted Strategic Plan to address homelessness calls for a need assist an additional 160 persons to find housing by adding resources for Rapid Re-Housing activities (Line of Effort 1.d) and to prevent homelessness for an additional 50 people each year through HP and Diversion (Line of Effort 2.d)
o Who are the beneficiaries? How will eligibility be determined? 5CHC's Housing Program targets financial assistance and services to individuals and families based on income and anticipated need, following a coordinated entry assessment and progressive engagement model. Those who receive emergency grants for subsistence payments (rental assistance, 05Q) or for deposit assistance (05T Assistance will be provided to benefit a clientele who are generally presumed by HUD to be principally L/M income persons - those who are homeless. This population is among those who are currently presumed by HUD to be made up principally of L/M income persons: Reference:
§570.208(a)(2)(i)(A). Additionally, as some assistance will be provided to those of imminent threat of homelessness, 5CHC's program additionally requires information on family size and income so that it is evident that at least 51% of the clientele are persons whose family income does not exceed the L/M income limit. Reference: §570.208(a)(2)(i)(B) and (C) o Is there community and/or political support? Explain. 5CHC receives financial support for this program with each of its local government parnters annually, in addition to the recent augmentation of funds through ARPA and other local means. 5CHC is recognized for its RRP and HP work; and is currently receiving strong support to expand services in other areas on the continuum (including shelter). In addition, individual community members and local businesses continue to support 5CHC (mostly with unrestricted dollars) with more than $400,000 in contributions annually.
o Describe how the impact will be sustained once this round of funding ends. The RRH and HP program has on-going needs that have only increased in recent years, and housing prices continue to skyrocket. Without this continued funding this program will not be sustained. In the current fiscal year (2022-23) 5CHC is on track to serve more than 500 families through RRH and an additional 500 families through Homeless Prevention efforts. In 2021-22 5CHC expended more than $500,000 in direct financial assistance this program; and is currently on pace to spend more than $900,000 in this fiscal year in direct financial assistance. Funding awards from annual grant funds for ESG and CDBG have been reduced each of the last several years. Currently nearly all of the funds being dedicated to Rapid Re-Housing and Homeless Prevention activities in the county, are through CARES Act CV ESG and CDBG Funds - most of which will be exhausted within the first quarter of this grant application’s funding cycle. Other one-time monies that have come available (such as ARPA) have not been targeted to RRH or HP activities, but instead expanded area shelter activities. Thus, without these funds for 2023- 24, the program will be severely reduced.
• Organizational Capacity. Summarize the organization's background/capacity to carry out the proposed project. Address the following points:

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o Has the organization carried out this type of project previously? Explain. 5Cities Homeless Coalition has successfully provided rapid re-housing and homeless prevention programs since 2015. As noted above, through CARES Act CV funds, 5chc will invest more than $900,000 this fiscal year in RRP and HP activities. Currently 5CHC is under contract or has been awarded 10 local, state and federal grants to provide RRH and HP services. o What makes the organization a preferred provider of this service? 5CHC has been the leading provider of these services for several years. 5CHC seeks to ensure that its services are both culturally and professionally competent; and accessible regardless of race or ethnicity or other condition. 5CHC staff represent a broad cross section including those of color, Latinx; those with lived experience. Currenlty, 5CHC employs 8 who are bilingual/bicultural speaking both English and Spanish; additionally, the agency has access to support those who are mono-lingual Mixteco. 5CHC staff have extensive training and relationships with those in the LBTGQ community. 5CHC works to train staff to ensure services are welcoming and provided without discrimination or judgment, that we approach our work through a trauma-informed perspective, and are attentive to specific circumstances (such as those who have experienced sex-trafficking or sexual violence).Collaboration 5CHC Homeless Services program is integrated in the local Continuum of Care, focusing on collaboration and strategic action. 5CHC is a key participant in the Coordinated Entry System receiving referrals community partners throughout the compendium of services. Additionally, 5CHC staff participate in HSOC at all levels and regularly participate in evidence-based trainings (Mental Health First Aid, etc.) 5CHC also has a program of providing staff trainings monthly with other service professionals and partner agencies.

5. ELIGIBILITY
• Indicate the eligible activity category for this project. Rapid Re-Housing: Short-Term Rent and Housing Stabilization Services including deposit, application fees, case management.; Homeless Prevention: Short-term rental assistance; homeless prevention deposit assistance; HMIS: staff and expenses necessary to deliver the activity.

6. SCHEDULE
• Provide a detailed project timeline, include milestones with units of measure. July 1, 2023-June 30, 2024. All activities will be conducted through the 12-month timeline.

Households and number of persons served will be tracked through HMIS. • Describe agency’s record keep system with relevance to the proposed project and how reporting requirements will be met. 5CHC employs a dedicated HMIS Data Manager to ensure quality compliance and track client outcomes. This position is supported with three finance employees, including one charged with Grants Management for accountability of expenses and fulfillment of grant commitments. The agency's Associate Director is responsible for authorizing all funding requests and reporting on program outcomes. With each program activity case managers report to a Program Manager for supervision and oversight; including client eligibility and case file review . The agency's Executive Director is directly engaged in initial program development, and efforts to provide services on a regional basis.

7. ADDITIONAL INFORMATION
• Has site control been obtained? If so, how is site control held? Attach documentation of site control. Click or tap here to enter text.
• Zoning. Is the current project location zoned for the proposed activity? If not, describe steps to be taken to ensure zoning requirements are met. Click or tap here to enter text.

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• If applicable, indicate the application due date for tax credits. Click or tap here to enter text.
• Identity all permits necessary for the project. Include estimated dates of application and approval. Click or tap here to enter text.
• Does this Project require Relocation? If so, attach Relocation Plan. Click or tap here to enter text.
• Indicate Housing Type (Permanent Homeowner Housing, Rental Housing, Transitional Housing). Click or tap here to enter text. • Does the Project intend to target special populations (such as seniors, persons with disabilities, children in foster care, etc.)? Click or tap here to enter text. • Will the Applicant be providing services? If so, please provide a brief explanation.

Click or tap here to enter text.

8. ENVIRONMENTAL REVIEW
• Indicate level of environmental review required for proposed project. Click or tap here to enter text.
• Indicate environmental review steps completed to date. Click or tap here to enter text.

9. SECTION 3 AND MINORITY AND WOMEN BUSINESS ENTERPRISES (AS

APPLICABLE)
• Section 3: Please explain how Section 3 benchmarks will be met. Click or tap here to enter text.
• MBE/WBE: Please explain how your project will be marketed towards MBE/WBEs.

Click or tap here to enter text.

10. ADDITIONAL REQUIRED DOCUMENTS – attached as identified below a) Articles of Incorporation
b) Bylaws
c) Non-profit Determination
d) List of the Board of Directors
e) Authorization to Request Funds
f) Designation of Authorized Official
g) Organizational Chart
h) Most Recent Financial Audit
i) Policies and Procedures
j) SAM Search

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Application A: Community/Supportive Services and Infrastructure Activities Funding sources available: CDBG, ESG, PLHA, GFS

1. APPLICANT INFORMATION
• Entity Name Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) • Ultimate Borrower, if applicable N/A
• Application Contact (Name and Title) Elizabeth “Biz” Steinberg, CEO • Contact Phone Number 805-544-4355
• Entity Address, City and Zip Code 1030 Southwood Drive, San Luis Obispo, CA 93401 • Mailing Address (if different from above) N/A
• Applicant’s Website www.capslo.org
• Unique Entity Identification (UEI) Number 95-2410253
• Type of Agency (501(c)(3), For Profit, Gov’t/Public, CHDO, Other) 501(c)(3) • Date of Incorporation 12-9-1965
• Project Management
o Project Lead Name Jim McNamara
o Title Energy Director
o Phone 805.431.4306
o Email [email protected]

2. PROJECT SUMMARY
• Project Title Minor Home Repair
• Project Address 3970 Short Street, Suite 110, San Luis Obispo, CA 93401 • APN #, if applicable N/A
• Description of the Project
Provide a project description that captures the maximum anticipated scope of the application. It should include all contemplated actions which logically are, either geographically or functionally, a composite part of the project, regardless of the source of funding. Describe all physical aspects of the project, such as plans for multiple phases of development, size and number of buildings, and activities to be undertaken. Include details of the physical impacts of the project, including whether there will be ground disturbance. If applicable, indicate whether the project site will require acquisition or if the sponsor already has ownership.

Community Action Partnership of San Luis Obispo County (CAPSLO) Minor Home Repair provides necessary home repair and access-improvement services for low- and very low-income, elderly and disabled individuals residing in single-family homes, mobile homes, and multi-family units to allow them to remain independent and in permanent, stable housing.

3. BUDGET
• Funds Requested (Amount and Source) CDBG: $97,700 ($22,700 from City of Pismo Beach; $75,000 from County of SLO)
• Total Project/ Program Cost (Identify funding to be used to support the project throughout affordability period, if applicable)
• Identify leveraged funds (Committed, Match, Not (Yet Committed) Leveraged resources include LIHEAP, Area Agency on Aging Title IIIB and ARP • Identify additional rental assistance in project, if applicable N/A • Indicate how the match requirement will be met (include sources and source documentation), if applicable. Leveraged funds will be used to provide additional benefit to the construction projects and program operations.

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4. PURPOSE & NEED
• Purpose of the Proposed Project. Describe the project by addressing each of the following:
o What activities will be undertaken?
Minor Home Repair provides a variety of repairs and removal of architectural barriers that restrict individuals' ability to move in, around, and remain in their homes.

The program has several phases for each individual project. These include outreach to locate and identify needy and eligible households, enrollment to complete an application and provide income documentation and proof of ownership, assessment to determine the scope of repairs and develop individual project budgets, permit applications (if required), submittal of individual projects to City staff for review and approval, completion of construction work, invoicing and reporting to the County.

The completed projects may include some of the following types of work:
• wheelchair ramps
• wheelchair lifts
• accessible showers (removal of bathtubs/installation of accessible showers)
• reconfiguration of bathrooms for access
• widening doorways
• handrails, grab bars
• repairs to stairs, wooden porches
• general carpentry
• water heater and furnace replacement
• minor plumbing and electrical work

Completing home repairs is more cost-effective and compassionate than trying to meet housing needs for individuals that have to give up their homes, and instead, rely on governmental assistance or institutional living.

What are the project goals and objectives?
The goal of Minor Home Repair is to increase self-sufficiency among low-income seniors and disabled individuals by enabling them to remain in their homes as they age or cope with disabilities, improving their health and safety in the home and allowing independence for vulnerable members of the community. Together, this helps prevent homelessness or placing people in the difficult position of deciding to move into a facility because their home is no longer accessible.

The objective is to provide minor home repairs, barrier removals, and access improvements.

o Explain the need being addressed by this project.

Throughout the country, we are faced with an aging population and many elderly seniors have limited financial resources. As people age in their homes, there is a growing need for support to deal with disability and limitations that arise. Likewise,

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there are also many disabled individuals who suffer from inaccessible homes and unusable bathrooms. Low income individuals and families often do not have sufficient resources to be able to pay for needed repairs in their homes. The Minor Home Repair Program seeks to assist the elderly, disabled and low-income households by providing an essential service at no cost.

Affordable housing remains a critical need for San Luis Obispo County's low- income, elderly, and disabled population. Many of these individuals reside in housing that is substandard and in need of repairs. Additionally, both affordable housing and residential care for seniors is very limited in San Luis Obispo County, especially for very low- and low-income individuals. Because demand consistently exceeds available funding, there is a waiting list for these services. The average cost of repairs per household is $5,200, with a maximum expenditure of $6,500.

The consequences of not receiving funded are low- and very low-income, elderly, and disabled individuals would not receive the necessary health and safety-related accommodations that allow them to remain living independently.

o Explain how the need was identified.

Clients for this program come from two sources – the first being referrals from social services agencies such as in-home service providers, hospitals and caregivers. The second source is CAPSLO outreach workers who canvas low- income neighborhoods, mobile home parks, senior centers and other sites where they are likely to encounter community members who may need assistance from this program.

There is no other Minor Home Repair program for low-income seniors and disabled individuals of all ages, of which CDBG funds are the primary source of funding.

The Area Agency on Aging provides CAPSLO funding for a Minor Home Repair for seniors only, limited to small repairs with $250 or less in material expenses and only seniors (60 and older) are eligible. Minor Home Repair program households may also receive weatherization assistance though CAPSLO's LIHEAP Program and So Cal Gas and PG&E Energy Savings Assistance programs.

Who are the beneficiaries? How will eligibility be determined? Approximately 22 households will be served with CDBG funding. We project to serve the following client population groups:

Elderly (ages 55-85+) - 91%
Hispanic - 24%
Non-Hispanic - 76%
Low-income - 8%
Very low-income - 92%
Disabled - 62%

The program is targeted at very low and low-income households residing in the City of Pismo Beach and the County of San Luis Obispo. More specifically, the program will seek to enroll clients who are disabled and have unmet needs for home modifications, handicapped access improvements and removal of architectural barriers. (A printout of the Client Intake Form that comprises the

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digital Client Intake screen is attached.) Income verification for CDBG/ESG beneficiaries is provided in accordance with 24 CFR Part 5.

o Is there community and/or political support? Explain.

CAPSLO’s Energy Services works closely with other partner agencies which provide supplemental services, including Tri-Counties Regional Center, Department of Social Services, Independent Living Resource Center, Salvation Army, Catholic Charities, Loaves and Fishes, SLO Housing Authority, local VA Service Center, and local churches. Clients of Minor Home Repair are also referred to other CAPSLO programs for which they are eligible.

o Describe how the impact will be sustained once this round of funding ends.

This program is dependent on funding from CDBG and the Area Agency on Aging.

With reduced funding, fewer families will be served.

• Organizational Capacity. Summarize the organization's background/capacity to carry out the proposed project. Address the following points:
o Has the organization carried out this type of project previously? Explain.

CAPSLO has been serving as San Luis Obispo County's federally designated community action agency since 1965. CAPSLO is a private, public benefit nonprofit with 53 years of experience serving the county's low-income community. Across all programs, CAPSLO has over 225 grants and awards valued at over $80 million, and serves over 24,000 individuals in 10 California counties. In June 2016, CAPSLO received the Award for Excellence, part of the National Community Action Partnership's organizational capacity building initiative. Only seven out of 1,100 community action agencies have received this award.

CAPSLO's Energy Services Division, has provided weatherization, and energy conservation programs for the county since 1978, with Minor Home Repair added in 1995. CAPSLO is a licensed general contractor (#623259). Work provided under this contract will be performed by staff who have experience in various phases of construction using existing vehicles, tools, equipment, and storage space for materials.

The Minor Home Repair program continually strives to increase outreach in order to reach more low-income individuals.

o What makes the organization a preferred provider of this service? The Minor Home Repair program is managed by Jim McNamara, who is responsible for all areas of the energy conservation, weatherization and home repair programs, including staff supervision, budgeting and financial management, program administration, research and new program development, technical support and construction management. Mr. McNamara is the Responsible Managing Employee (RME) for CAPSLO’s general contractors license (# 623259) and has worked for CAPSLO for 30 years.

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In addition to its highly qualified key staff, CAPSLO has the necessary infrastructure to successfully implement and monitor complex grants and contracts. Currently CAPSLO has over 250 different contracts and participates in multiple federal and state financial audits, and has never had a finding.

CAPSLO’s Finance Department handles budget management and payment requests for this grant, ensuring contract and reporting compliance. In addition, CAPSLO undergoes an agency-wide, rigorous audit process annually by the firm of Brown Armstrong Certified Public Accountants. The process includes inquiry and observation to understand and evaluate CAPSLO’s internal controls, confirmations, interim testing and compliance audits, and substantive procedural analysis. Critical audit areas include compliance with federal and state awards, expenses for program and support services, accounts payable and accrued liabilities, program revenue and unearned deferred revenue, cash, property and equipment, and long-term debt. A summary of the audit is formally presented by Brown Armstrong to both the Audit and Finance Committees of the Board, as well as the full Board of Directors and senior management. CAPSLO has had no findings in any audit over the past two decades. Additionally, CAPSLO Homeless Services participates in County of San Luis Obispo CDBG and other HUD program reviews and desk audits as required.

5. ELIGIBILITY
• Indicate the eligible activity category for this project.

The eligibility category for this CDBG project is Public Services. The proposed project meets the CDBG National Objective because 100% of the beneficiaries of the proposed activities will be Low/Moderate income persons. The specific group of persons the proposed project will serve are seniors and disabled individuals. CAPSLO requests documentation of family/individual income for clients of the Minor Home Repair program.

6. SCHEDULE
• Provide a detailed project timeline, include milestones with units of measure.

1. July 1-September 30, 2023: Perform outreach in communities and with other service providers, complete intake applications and job estimates, and submit projects for approval.

2. October 1, 2023-May 31, 2024: Obtain building permits if needed on individual projects. Start and complete all construction activities.

3. May 1-June 30, 2024: Submit invoices and project details for reimbursement.

• Describe agency’s record keep system with relevance to the proposed project and how reporting requirements will be met.

Client income is verified by collecting copies of income documentation, which may include proof of social security payments, SSI, TANF, unemployment insurance, disability payments, and/or documentation of salary and wages. Copies of client household data are maintained in individual client files and recorded on the agency's

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data base with Hancock Software. Quarterly and annual reports will be submitted by the program manager to the County.

The agency-wide ClientTrack database is also used so the agency may thoroughly and efficiently cross-refer eligible clients to other CAPSLO programs.

7. ADDITIONAL INFORMATION
• Has site control been obtained? If so, how is site control held? Attach documentation of site control. N/A
• Zoning. Is the current project location zoned for the proposed activity? If not, describe steps to be taken to ensure zoning requirements are met. N/A • If applicable, indicate the application due date for tax credits. N/A • Identity all permits necessary for the project. Include estimated dates of application and approval. Building permits will be requested from the San Luis Obispo County Planning Department, City of Pismo Beach, and/or from the State Department of Housing and Community Development, when indicated.
• Does this Project require Relocation? If so, attach Relocation Plan. N/A • Indicate Housing Type (Permanent Homeowner Housing, Rental Housing, Transitional Housing). N/A
• Does the Project intend to target special populations (such as seniors, persons with disabilities, children in foster care, etc.)? The special population the project will target are seniors and disabled individuals of all ages.
• Will the Applicant be providing services? If so, please provide a brief explanation.

CAPSLO provides all services associated with Minor Home Repair. CAPSLO is a licensed general contractor (#623259). Work provided under this contract will be performed by staff who have experience in various phases of construction using existing vehicles, tools, equipment, and storage space for materials.

8. ENVIRONMENTAL REVIEW
• Indicate level of environmental review required for proposed project. N/A • Indicate environmental review steps completed to date. N/A

9. SECTION 3 AND MINORITY AND WOMEN BUSINESS ENTERPRISES (AS

APPLICABLE)
• Section 3: Please explain how Section 3 benchmarks will be met. N/A

• MBE/WBE: Please explain how your project will be marketed towards MBE/WBEs.

CAPSLO will take all necessary, affirmative steps to assure that small and minority businesses, women’s business enterprises, and labor area surplus firms are used when possible, in accordance with 2 C.F.R. § 200.321(a).

10. ADDITIONAL REQUIRED DOCUMENTS
• Articles of Incorporation/Bylaws
• Non-profit Determination
• List of the Board of Directors
• Authorization to Request Funds
• Designation of Authorized Official

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• Organizational Chart
• Most Recent Financial Audit
• Policies and Procedures
• SAM Search
• Intake Form
• Program Budget 23-24

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

QUARTERLY UPDATE FOR THE PUBLIC SAFETY FACILITY DESIGN-BUILD

PROJECT
RECOMMENDATION:

Receive a quarterly update for the Public Safety Facility Project.

BACKGROUND:

At the direction of the City Council, staff will be providing quarterly updates on the status of the Public Safety Facility.

Project Update
Following direction from the City Council, staff has released the Request for Proposals (RFP) to the three prequalified Design-Build Entity teams. The City Council selected “Option D,” which proposes to build a new two-story police station at the site of Old City Hall/Elementary School, and to convert the existing police station to be the living space and apparatus support for the fire station along with the construction of two new apparatus bays.

RFP responses will be due to the City on February 16, 2023. An evaluation committee consisting of the Police Chief, Fire Chief, Public Works Director, Community Development Director, Assistant City Manager, and Senior Engineer, will score and rank the proposals.

Prior to a recommended contract, the City Council will receive presentations from the three firms, as well as the score rankings for consideration before selecting a firm to enter into final contract negotiations. At this meeting, staff will provide a presentation that will outline the RFP process.

Recommendation and Next Steps
Staff recommends that the City Council receive a quarterly update on the Public Safety Facility Project.

FISCAL IMPACT:

There is no direct fiscal impact related to this report.

ATTACHMENTS:

None.

Submitted by: Meeting Date: December 6, 2022
Jorge Garcia, Assistant City Manager
City Manager Approval:

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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.B

SUBJECT/TITLE:

AMENDED LOAN AGREEMENTS FOR HOUSING AUTHORITY OF SAN LUIS OBISPO FOR THE FUNDING OF A 25-UNIT AFFORDABLE SENIOR HOUSING PROJECT AT 2655 SHELL BEACH ROAD

RECOMMENDATION:

Adopt a Resolution authorizing amended loan agreements with the Housing Authority of San Luis Obispo for design, funding, construction, and management of a 25-unit affordable senior housing project at 2655 Shell Beach Road.

BACKGROUND:

On March 16, 2021, the City Council adopted Resolution No. R-2021-023 authorizing the City Manager to execute a loan agreement to the Housing Authority of San Luis Obispo (HASLO) for $1.0 million, deferral of City Development Impact Fees related to the project not to exceed $223,676, and additional regulatory documents. Since that time, HASLO has been working toward project funding and maintained necessary project entitlements.

As a result of inflation, increasing interest rates, and decreased demand for tax credit investments, HASLO has requested modifications to the City’s deferred fee amount from $223,676 to a total of $443,676 (Attachment 2). The City’s applicable Development Impact Fees total approximately $677,806 and the requested increase in fee deferral totals approximately 66% of this total compared to the 33% previously approved. Based on the community need for affordable housing, staff supports this increase in fee deferral.

Additionally, the City’s previously approved financial commitments were provided without interest paid to the City. Due to the nature of Tax Credit Financing that HASLO is securing for the Shell Beach Road project, they are requesting to increase this interest from 0% to 4%. This increase results in improved buying power of the Tax Credits and is also supported by staff.

A revised loan agreement (Attachment 3) specifies the City Take a note and deed of trust (Attachments 4, 5, and 6) consistent with the Council’s previous action regarding this project and consistent with the affordable housing regulatory agreement (Attachment 7).

Conclusion and Recommendation
Development of affordable housing is an important step toward addressing the City’s Regional Housing Needs Allocation. The City’s financial assistance will help HASLO successfully develop the project at 2655 Shell Beach Road. Staff recommends the Council adopt a Resolution (Attachment 1) approving the revised loan of Housing In- Lieu Fee interest and Development Impact Fee waivers and the associated legal instruments.

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FISCAL IMPACT:

The fiscal impact of approving the attached Resolution and corresponding documents is a loan of $1,443,676 in Fiscal Year (FY) 2023 to be paid back to the City in 55 years with 4% interest per year, consistent with the obligation for tax credit financing requirements for a term of 55 years. Of the total $1,443,676, $1,000,000 are loan proceeds from the Housing In-Lieu Fee Fund and $443,676 is a deferred payment of approximately 66% of the City’s development impact fees that are deposited in six impact fee funds.

Budget
There is already $1.00 million budgeted in the Housing In-Lieu Fee Fund for the 2655 Shell Beach Road affordable senior housing project. This will leave an estimated $955 thousand available for other affordable housing project costs.

Development Impact Fees
The City’s development impact fees for this project are approximately $677,806, of which HASLO will pay $234,130 upfront, and the remaining $443,676 will be deferred for 55 years. If Council adopts the Resolution per staff’s recommendation, staff will set up a note receivable and deferred revenues for the promissory note in the amount of $443,676.

ALTERNATIVES:

1. Do not adopt the Resolution; provide direction to staff.

ATTACHMENTS:

1. Resolution

2. HASLO Funding Request

3. Loan Agreement

4. Promissory Note – Housing In-Lieu Fee Funds

5. Promissory Note – Deferred Impact Fees

6. Deed of Trust

7. Affordable Housing Regulatory Agreement
Submitted by: Meeting Date: December 6, 2022
Matthew Downing, Community Development Director
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 A REVISED LOAN AGREEMENT AND ASSOCIATED

DOCUMENTS WITH THE HOUSING AUTHORITY OF SAN LUIS OBISPO FOR FUNDING, CONSTRUCTION, AND MANAGEMENT OF A 25-UNIT AFFORDABLE SENIOR HOUSING PROJECT AT 2655 SHELL BEACH ROAD
WHEREAS, the City Council previously approved a loan agreement and associated documents with the Housing Authority of San Luis Obispo (HASLO) in support of the development of a 25-unit affordable senior housing project at 2655 Shell Beach Road; and
WHEREAS, as a result of inflation, increasing interest rates, and decreased demand for tax credit investments, HASLO has requested modifications to the City’s deferred fee amount to a total of $443,676; and
WHEREAS, HASLO is additionally requesting to increase the interest rates for City funding from 0% to 4%; and
WHEREAS, City Development Impact Fees can be deferred to further assist with project funding.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby approves and authorizes the City Manager to execute a loan agreement to the Housing Authority of San Luis Obispo for $1.0 million, a regulatory agreement, note, and deed of trust, and deferral of City Development Impact Fees related to project development not to exceed $443,676, in substantially the form attached to the December 6, 2022, report to the Council.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby sets up notes receivable and deferred revenues for the promissory note in the amount of $443,676, including any related accounting adjustments.

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 6th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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

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1 LOAN AGREEMENT
THIS LOAN AGREEMENT (“Agreement”) is made and entered into on _________________________, 2022 by SHELL BEACH SENIOR, L.P., a California limited partnership (hereinafter referred to as the “Owner”), and the CITY OF PISMO BEACH, a California general law city (hereinafter referred to as the “City”).

WITNESSETH:

WHEREAS, the City operates a revolving loan fund for the purpose of increasing the supply of affordable housing for very low, low, and moderate income residents of the City; WHEREAS, the Loan (defined below) will be funded using the City’s affordable housing funds; WHEREAS, City has agreed to provide Owner a loan in the aggregate amount of ONE MILLION

FOUR HUNDRED FORTY-THREE THOUSAND SIX HUNDRED SEVENTY-SIX DOLLARS AND NO CENTS ($1,443,676) (the “Loan”) consisting of the following two tranches: (i) $1,000,000 in cash (the “Loan Proceeds”) and (ii) $443,676 in deferred payment of fees (the “Deferred Fees”) to finance the development of real property located at 2655 Shell Beach Road, Pismo Beach, California, 93449, in the County of San Luis Obispo, as more particularly described in Exhibit A (the “Property”) as a housing project for low income households in the City of Pismo Beach; WHEREAS, the Owner will construct a residential project with twenty-six (26) multi-family rental apartment units including the manager’s unit consisting of twelve (12) units affordable to households earning less than 80% area median income (“AMI”), plus one unrestricted manager’s unit (the “Project”) on the Property;
WHEREAS, the Loan Proceeds will be disbursed upon the date of this Agreement for the development of the Property (the “Funding Date”);
WHEREAS, in addition to this Agreement, the Loan will be evidenced by two promissory notes of even date herewith, secured by a deed of trust and include a regulatory agreement recorded against the Property, (all of which documents collectively are the “Loan Documents”); NOW, therefore, in consideration of the mutual promises, recitals, and other provisions hereof, the parties agree as follows:

1.Scope of Activities.
a.Within twenty-four (24) months after execution of this Agreement, subject to force majeure delays, the Owner shall complete construction of the Project and obtain final permit approval allowing occupancy of all twenty-six (26) rental apartment units including the manager’s unit (the “Completion Date”). The Project shall be constructed in material compliance with the approved development permit and construction permits.
b.This completion schedule may be amended upon written agreement between the parties. The date on which construction is completed and final approval has been granted for occupancy of the 26th rental apartment unit shall be the Completion Date. There shall be no default for construction delays beyond the reasonable control of Owner, provided that such delays do not exceed one hundred eighty (180) days, or such longer period of time as may be specified in the Loan Documents.

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2 c.During the term of this Agreement, the Owner shall retain leasehold interest in the Property and a fee interest in the Project and of all rights, royalties, profits, and proceeds generated or caused by the residential units of the Project, except that the Owner may transfer the Property and/or Project as permitted in the Deed of Trust.
d.Owner hereby covenants and agrees to maintain a minimum of twelve (12) units in the Project as affordable rental units, in accordance with the Affordability Schedule attached as Exhibit B hereto.

2.Term of Agreement. The term of this Agreement shall commence on the date first above written and shall terminate fifty-five (55) years from the Completion Date, unless sooner terminated as hereinafter provided.

3.Loan. Subject to the terms and conditions of this Agreement, the City shall fund the Loan Proceeds on the Funding Date. The Owner shall not obligate or expend the funds for any purpose other than for the Project. The Owner shall execute two promissory notes in the amount of (i) $1,000,000.00 (the “Loan Proceeds Note”); and (ii) $443,676.00 (the “Deferred Fees Note” and, together with the Loan Proceeds Note, the “Note”), a deed of trust and a regulatory agreement in favor of the City. Prior to the City funding the Loan Proceeds to the Owner, (i) the Note shall be executed and delivered to City, and each of the deed of trust and regulatory agreement shall be executed and recorded, and (ii) the title insurance company shall provide City with an ALTA lender’s policy of title insurance insuring City’s lien, with a liability amount equal to the amount of the Loan, at Owner’s cost and expense. The City agrees to subordinate its lien position to any commercial construction financing obtained by Owner in connection with the development of the Project, including but not limited to that certain [Construction Loan From Pacific Western Bank, N.A.].

4.Termination of Agreement for Cause. If the City reasonably determines that the Owner has incurred obligations or made expenditures for purposes which are not permitted or are prohibited under the terms and provisions of this Agreement, or if the City reasonably determines that the Owner has failed to fulfill its obligations under this Agreement in a timely and professional manner, or if the Owner is in violation of any of the terms or provisions of the Loan Documents, or if the Owner should be adjudged to be bankrupt, or if the Owner makes a general assignment for the benefit of the Owner's creditors, or if a receiver should be appointed in the event of the Owner's insolvency, or if an event of default has occurred under the Loan Documents or any other deed of trust or regulatory agreement evidencing or securing a loan to the Owner and has continued beyond expiration of applicable notice and cure periods, then the City shall have the right to terminate this Agreement upon giving written notice thereof to the Owner and to Owner’s limited partner, and giving thirty (30) days to cure such default and such additional time if the default cannot reasonably be cured in thirty (30) days provided the Owner has commenced to cure during the 30 day cure and is pursuing the cure to completion. A cure by the limited partner of Owner will be deemed a cure by the Owner. Owner’s Limited Partner may remove and replace Owner’s general partner(s) in furtherance of a cure and shall have a reasonable period of time thereafter to effect a cure. Termination shall have no effect upon the rights and obligations of the parties arising out of any transaction occurring prior to effective date of such termination. If the City's termination of Agreement for cause is defective for any reason, including but not limited to the City's reliance on erroneous facts concerning the Owner’s performance, or any defect in the notice thereof, the City's maximum liability shall not exceed the amount payable to the Owner under paragraph 3 of this Agreement.

5.Employment Status. The Owner shall, during the entire term of this Agreement, be construed as a contractor, and nothing in this Agreement is intended nor shall be construed to create an employer-employee relationship or a joint venture relationship. Neither the Owner nor any of the Owner's

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3 agents, employees, or contractors are or shall be considered to be agents or employees of the City in connection with the performance of the Owner's obligations under this Agreement.

6. Inspections/Signs. The City reserves the right to inspect any work performed hereunder to ensure that the Project is being and has been constructed, managed and operated in accordance with the applicable federal, state and/or local requirements, and this Agreement at all reasonable times and upon reasonable notice. The Owner agrees that all work found by such inspections not to materially conform to the applicable requirements shall be corrected promptly. The City’s failure to inspect any work performed hereunder shall not be construed as a waiver of its right to require corrections to defective work or to enforce any other provisions of this Agreement. If assistance is provided as a secured development loan, any signs placed on the property during construction which identifies the Project, or lenders to, the Project shall include the City as one of the entities providing financing to the Project. During the construction period, the City may place one or more signs on the property stating that it is providing financing for the Project.

7.Records. All records, accounts, documentation, and all other materials relevant to a fiscal audit or examination shall be retained by the Owner for a period of not less than three (3) years from the date of Owner’s final payment under this Agreement.

8. Audit. All records, accounts, documentation, and other materials deemed to be relevant to the Project by the City shall be accessible at any time to the authorized representatives of the City on reasonable prior notice, for the purpose of examination or audit. The Owner agrees that it shall provide City with copies of all annual audits, performance and/or occupancy reports that it submits to the California Tax Credit Allocation Committee.

9. Indemnification. The Owner agrees to accept responsibility for loss or damage to any person or entity, and shall defend, indemnify and hold harmless the City, its officers, employees, volunteers and agents from any and all claims and demands, damages, costs, expenses, judgments, reasonable attorney fees, or liability that may be asserted by any person or entity, including the Owner, to the extent arising out of or in connection with the performance by the Owner hereunder. The obligation to indemnify shall be effective and shall extend to all such claims and losses, in their entirety, even when such claims or losses are brought about in part by the comparative passive negligence of the City, its officers and employees.

However, this indemnity will not extend to any claims or losses arising out of the sole negligence or willful misconduct of the City, its officers, employees, volunteers, and agents.

The preceding paragraph applies to any theory of recovery relating to said act or omission, including, but not limited to the following:
a.Violation of statute, ordinance, or regulation.
b.Professional malpractice.
c.Willful, intentional, or other wrongful act(s), or failures to act. d.Negligence or recklessness.
e.Furnishing of defective or dangerous products.
f.Premises liability.
g.Strict Liability.
h.Inverse condemnation.
i.Violation of civil rights.
j.Violation of any federal or state statute, regulation, or ruling resulting in a determination by the Internal Revenue Service, California Franchise Tax Board, or any other California public entity responsible for collecting payroll taxes, when the Owner is not an independent contractor.

It is the intent of the parties to provide the City the fullest indemnification, defense, and “hold

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4 harmless” rights allowed under the law. If any word(s) contained herein are deemed by a court to be in contravention of applicable law, said word(s) shall be severed from this contract and the remaining language shall be given full force and effect.

10. Insurance. The Owner, at its sole cost, shall purchase and maintain the insurance policies set forth below on all of its operations under this Agreement. All of the insurance companies providing insurance for Owner shall have, and provide evidence of, an A.M. Best & Co. rating of A:VII or above, unless exception is granted by the City’s Risk Manager. Furthermore, all policies shall be maintained for the full term of this Agreement and related warranty period if applicable. Any failure to comply with reporting provision(s) of the policies referred to above shall not affect coverage provided to the City, its officers, employees, volunteers, and agents. For purposes of the insurance policies required hereunder, the term “City” shall include officers, employees, volunteers, and agents of the City of Pismo Beach, individually or collectively.
a.Scope and Limits of Required Insurance Policies. The following policies shall be maintained with insurers authorized to do business in the State of California and shall be issued under forms of policies satisfactory to the City:
i.Commercial General Liability: Policy shall include coverage at least as broad as set forth in Insurance Services Office Commercial General Liability Coverage (CG 0001) with policy limits of not less than $1 million combined single limit per occurrence. Policy shall be endorsed with the following specific language or contain equivalent language in the policy:

1.The City of Pismo Beach, its officers, employees, volunteers, and agents are named as an additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.

2.The insurance provided herein shall be considered primary coverage to the City with respect to any insurance or self-insured retention maintained by the City. Further, the City’s insurance shall be considered excess insurance only and shall not be called upon to contribute to this insurance.

3.The policy shall not be cancelled or materially changed without first giving thirty (30) days’ prior written notice to the City.
ii.Business Automobile Liability: Policy shall include coverage at least as broad as set forth in the liability section of Insurance Services Office Business Auto Coverage (CA 0001) with policy limits of no less than $1 million combined single limit for each occurrence. Said insurance shall include coverage for owned, non- owned, and hired vehicles. Policy shall be endorsed with the following specific language or contain equivalent language in the policy:

1.The City, its officers, employees, volunteers, and agents are named as an additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.

2.The policy shall not be cancelled or materially changed without first giving thirty (30)’ days prior written notice to the City.
iii.Workers’ Compensation/Employer’s Liability Insurance: Workers’ Compensation: policy shall provide statutory limits as required by State of California. Policy shall be endorsed with the following specific language or contain equivalent language in the policy:

1.Owner and its insurer shall waive all rights of subrogation against the City,

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5 its officers, employees, volunteers, and agents for workers’ compensation losses arising out of this Agreement.

2.The policy shall not be cancelled or materially changed without first giving thirty (30) days’ prior written notice to the City.
iv.Employer’s Liability: Policy shall provide $1 million per accident for bodily injury or disease.
b.Deductibles and Self-Insurance Retentions: All deductibles and/or self-insured retentions which apply to any of the insurance policies required herein shall be declared in writing by the Owner and approved by the City prior to commencement of this Agreement. c.Documentation: Prior to commencement of work under this Agreement and annually thereafter for the term of this Agreement, the Owner will provide to the City properly executed certificates of insurance clearly evidencing the coverage, limits, and endorsements specified in this Agreement. Further, at the City’s request, the Owner shall provide certified copies of the insurance policies within thirty (30) days of request. The certificate(s) of insurance and coverage verification and all other notices related to cancellation or non-renewal shall be mailed to:

City of Pismo Beach
760 Mattie Road
Pismo Beach, California, 93449
Attn: Management Services Director
No cancellation or non-renewal of any required insurance policy, or reduction of coverage afforded under the policy, shall be effective until written notice has been given at least thirty (30) days prior to the effective date of such reduction or cancellation to City. d.Absence of Insurance Coverage: City may direct the Owner to immediately cease all activities with respect to this Agreement if it determines that the Owner fails to carry, in full force and effect, all insurance policies with coverage levels at or above the limits specified in this Agreement. Any delays or expense caused due to stopping of work and change of insurance shall be considered the Owner’s delay and expense. At the City's discretion, under conditions of lapse, the City may purchase appropriate insurance and charge all costs related to such policy to the Owner.

11.Hazardous Materials.
a.Owner shall comply with all environmental laws applicable to the Property. Owner shall not cause or permit any of the following (each, a “Prohibited Activity or Condition”): (i) the presence, use, generation, release, treatment, processing, storage handling, or disposal of any Hazardous Materials on or under the Property; (ii) the transportation of any Hazardous Materials to, from, or across the Property; (iii) any occurrence or condition on the Property, which occurrence or condition is or may be in violation of applicable environmental laws; or (iv) the imposition of any environmental lien against the Property.

Owner shall pay the cost of any investigation, site monitoring, containment, clean-up, restoration or other remedial work necessary to comply with or cure a violation of any environmental law or order of any governmental authority that has or acquires jurisdiction over the Property or the use, operation or improvement of the Property, or is otherwise reasonably required by City as a consequence of any Prohibited Activity or Condition or to prevent the occurrence of a Prohibited Activity or Condition. “Hazardous Materials” means petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and oil; explosives; flammable materials; radioactive materials; polychlorinated biphenyls (“PCBs”) and compounds containing them; lead and lead-based paint; asbestos

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6 or asbestos-containing materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any substance; radon; mold; toxic or mycotoxin spores; any substance the presence of which on the Property is prohibited by any federal, state or local authority; any substance that requires special handling; and any other material or substance (whether or not naturally occurring) now or in the future that (x) is defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic pollutant,” “solid waste,” “pesticide,” “contaminant,” or “pollutant,” or otherwise classified as hazardous or toxic by or within the meaning of any environmental law, or (y) is regulated in any way by or within the meaning of any environmental law. The term “Hazardous Materials” shall exclude those materials commonly used in the construction, operation, and maintenance of residential apartment buildings.
b.Owner shall indemnify, hold harmless and defend City and its officers, employees, volunteers and agents (collectively, the “Indemnitees”) from and against all losses, proceedings, claims, damages, penalties, and costs (whether initiated or sought by governmental authorities or private parties), including, without limitation, reasonable fees and out-of-pocket expenses of attorneys and expert witnesses, engineering fees, environmental consultant fees, investigatory fees, and remediation costs, and any other liabilities of whatever kind and whatever nature, whether incurred in connection with any judicial or administrative process or otherwise, arising directly or indirectly from any of the following:
i.any breach of any representation or warranty of Owner in this Section 11; ii.any failure by Owner to perform any of its obligations under this Section 11;
iii.the existence or alleged existence of any Prohibited Activity or Condition; iv.the presence or alleged presence of Hazardous Materials on or under the Property (whether as a result of activities on the Property or on surrounding properties) or in any of the improvements; or v. the actual or alleged violation of any applicable environmental law.

Notwithstanding anything herein to the contrary, (i) Owner shall have no obligation hereunder to indemnify any Indemnitee for any liability under this Section 11 to the extent that the Prohibited Activity or Condition giving rise to such liability resulted solely from the gross negligence or willful misconduct of such Indemnitee, and (ii) Owner’s liability under this Section 11 shall not extend to cover the violation of any environmental laws or Prohibited Conditions that first arise, commence or occur as a result of actions of City, its successors, assigns or designees, after the satisfaction, discharge, release, assignment, termination, or cancellation of the Loan following the payment in full of the Note and all other sums payable under the Loan Documents or after the actual dispossession from the Property of Owner and all entities which control, are controlled by, or are under common control with Owner following foreclosure of the Deed of Trust or acquisition of the Property by a deed in lieu of foreclosure.

12.Equal Employment Opportunity. During the performance of this Agreement, the Owner agrees that it will not discriminate against any employee or applicant for employment because of race, religion, sex, national origin, disability, or familial status (i.e., family size), or on any other basis protected under California or federal law.

13.Casualty, Condemnation. In the event of any fire or other casualty to the Project or eminent domain proceedings resulting in condemnation of the Project or any part thereof, Owner shall have the right to rebuild the Project, and to use all available insurance or condemnation proceeds therefor, provided that

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no material default then exists under the Loan Documents.

14.Compliance with Laws and Regulations. The Owner agrees to comply with all applicable county, state and federal laws and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity and all other matters applicable to the Owner, its subcontractors, the Property and/or the Project. Owner and City acknowledge that the Loan, in and of itself, will not cause the Project to become subject to either state prevailing wage laws or Davis-Bacon wages.

15.Reserved.

16.Permitted Transfers and Assignments. Owner may not cause or permit any voluntary transfer, assignment, or encumbrance of its interest in the Property or Project or of any ownership interests in Owner, or lease or permit a sublease on all or any part of the Project, other than: (a) leases, subleases, or occupancy agreements to occupants of Units in the Project; or (b) security interests for the benefit of lenders securing loans for the Project as approved by the City on terms and in amounts as approved by City in its reasonable discretion; (c) transfers from Owner to a limited partnership formed for the tax credit syndication of the Project, where Owner or an affiliated nonprofit public benefit corporation is the sole general partner or manager of that entity or is the manager of a limited liability company that is the sole general partner or manager of that entity; (d) transfers of the general partnership or manager's interest in Owner to a nonprofit public benefit corporation approved in advance by the City; (e) transfers of any limited partnership interest in Owner to an investor pursuant to the tax credit syndication of the Project; or (f) the grant or exercise of an option agreement between a successor limited partnership as Owner and such limited partnership's general partner or any of its affiliates in connection with the tax credit syndication of the Project; or (g) to remove or replace the General Partner in accordance with the terms of any City-approved partnership agreement, a transfer of any general partnership interest to a new general partner approved in advance by the City. Any other transfer, assignment, encumbrance, or lease without the City's prior written consent will be voidable and, at the City's election, constitute an Event of Default under this Agreement. The City's consent to any specific assignment, encumbrance, lease, or other transfer will not constitute its consent to any subsequent transfer or a waiver of any of the City's rights under this Agreement. In the event of a conflict between this Loan Agreement and the Deed of Trust, the Deed of Trust shall control.

17.Law Governing and Forum Selection. This Agreement has been executed and delivered in the State of California, and the validity, enforceability, and interpretation of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. All duties and obligations of the parties created hereunder are performable in San Luis Obispo County, and a state court in the State of California and in the County shall be that forum for any action, or proceeding that may be brought, or arise out of this Agreement, or be in connection with or be caused by reason of this Agreement.

18.Severability. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

19.Binding on Successors in Interest. All provisions of this Agreement shall be binding on the parties and their heirs, assigns, and successors in interest.

20.Effect of Waiver. City's waiver or breach of any one term, covenant, or other provision of this Agreement shall not be a waiver of a subsequent breach of the same term, covenant, or provision of this Agreement or of the breach of any other term, covenant or, provision of this Agreement.

21.Notices. Unless otherwise provided, all notices herein required shall be in writing, and delivered in person or sent by United States first class mail, postage prepaid. Notices required to be given

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to City shall be addressed as follows: City of Pismo Beach, 760 Mattie Road, Pismo Beach, California, 93449. Notices required to be given to the Owner shall be addressed as follows:

Shell Beach Senior, L.P.
487 Leff Street
San Luis Obispo, CA 93401
Provided that any party may change such address by notice in writing to the other parties and thereafter notices shall be transmitted to the new address. Provided further, that City agrees to provide notice to any future limited partner of limited partnership formed for the tax credit syndication of the Project, where Owner or an affiliated nonprofit public benefit corporation is the sole general partner or manager of that entity or is the manager of a limited liability company that is the sole general partner or manager of that entity.

22.Partial Subordination to CTCAC Regulatory Agreement. City acknowledges that Owner and the California Tax Credit Allocation Committee have entered, or intend to enter, into a separate regulatory agreement, which constitutes the extended low-income housing commitment described in Section 42(h)(6)(B) of the Internal Revenue Code, as amended (the “Code”). City acknowledges and agrees that, in the event of a foreclosure of its interest under the Deed of Trust or delivery by the Partnership of a deed in lieu thereof (collectively, a “Foreclosure”), the following rule contained in Section 42(h)(6)(E)(ii) of the Code shall apply: For a period of three (3) years from the date of Foreclosure, with respect to any unit that had been regulated by the regulatory agreement with CTCAC, (i) none of the eligible tenants occupying those units at the time of Foreclosure may be evicted or their tenancy terminated (other than for good cause, including but not limited to, the tenants’ ineligibility pursuant to Section 42 of the Code), (ii) nor may any rent be increased except as otherwise permitted under Section 42 of the Code.

23.Non-Recourse Obligation. The Owner's obligation to pay principal and interest on the sums advanced hereunder shall be a non-recourse obligation, and the sole recourse of City for repayment shall be the exercise of City’s rights against the Property covered by the Deed of Trust.

24.Entire Agreement and Modification. This Agreement sets forth the full and entire understanding of the parties regarding the matter set forth herein, and any other prior or existing understandings or agreement by the parties, whether formal or informal, regarding any matters are hereby superseded or terminated in their entirety. No changes, amendments, or alterations shall be effective unless in writing and signed by all parties hereto. The Owner specifically acknowledges that in entering into and executing this Agreement, the Owner relies solely upon the provisions contained in this Agreement and no others.
[Remainder of Page Left Intentionally Blank.]

12.B-13Council Agenda 12-6-2022
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

Owner:

SHELL BEACH SENIOR, L.P.,
a California limited partnership
By: San Luis Obispo Nonprofit Housing Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By:

Michelle Pedigo,
Deputy Chief Financial Officer
By: Pacific SPT LLC,
a California limited liability company,
its co-general partner
By:

Joseph Michael,
Manager
City:

City of Pismo Beach,
a California general law city
By: ______________________________________
James R. Lewis,
City Manager
Date: __________________________

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EXHIBIT “A”

LEGAL DESCRIPTION
Real property in the City of Pismo Beach, County of San Luis Obispo, State of California, described as follows:

THAT PORTION OF LOT 5 OF THE SUBDIVISIONS OF THE RANCHOS EL PISMO AND SAN

MIGUELITO, AS SHOWN ON MAP FILED IN THE CITY OF PISMO BEACH, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, BOOK A PAGE 157 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT THE EASTERLY TERMINUS OF THE COURSE RECITED AS THENCE (7) FROM TANGENT THAT BEARS NORTH 68 DEGREES 46' 16" WEST, ALONG A CURVE TO THE RIGHT, WITH A RADIUS OF 1000 FEET, THROUGH AN ANGLE OF 18 DEGREES 24' 28" FOR A DISTANCE OF 321.28' IN PARCEL 2 OF THE NOTICE OF ACTION ENTERED IN SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 27806 A COPY OF WHICH WAS RECORDED OCTOBER 18, 1962 IN BOOK 1207, PAGE 3, OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHERLY LINE OF THE LAND DESCRIBED IN SAID PARCEL 2, SOUTH 66 DEGREES 56' 23" EAST TO THE EASTERLY LINE OF SAID LOT 5 BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID SOUTHERLY LINE, NORTH 66 DEGREES 56' 23" WEST 155 FEET; THENCE AT RIGHT ANGLES, SOUTH 23 DEGREES 03' 37" WEST 150 FEET; THENCE AT RIGHT ANGLES, SOUTH 66 DEGREES 56' 23" EAST TO THE EASTERLY LINE OF SAID LOT 5; THENCE NORTHERLY ALONG SAID EASTERLY LINE TO THE TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM AN UNDIVIDED ONE-HALF INTEREST OF ALL THE OIL, GAS,

CASINGHEAD GAS, AND OTHER HYDROCARBONS, IN UNDER OR UPON SAID LAND, AS RESERVED BY RUTH ORTON LAIRD IN DEED RECORDED APRIL 6, 1950 IN BOOK 559 PAGE 257 OF OFFICIAL RECORDS.

BY AN INSTRUMENT DATED MAY 25, 1964 EXECUTED BY RUTH ORTON LAIRD, A MARRIED WOMAN, AND WILLIAM E. BURNETT AND MARGARET F. BURNETT, HIS WIFE, AND WILLIAM E. MOORE AND AUDREY R. MOORE, HIS WIFE, SAID RUTH ORTON LAIRD

RELINQUISHED ALL HER RIGHTS TO ENTER UPON, POSSESS OR USE ANY PART OF THE

SURFACE OF SAID LAND, OR ANY PART OF THE SUBSURFACE THEREOF TO A DEPTH OF THREE HUNDRED FIFTY (350) FEET BENEATH THE SURFACE THEREOF, RECORDED JUNE 12, 1964 IN BOOK 1301 PAGE 582 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THE REMAINING ONE-HALF INTEREST OF ALL OIL, GAS,

CASINGHEAD GAS AND OTHER HYDROCARBON SUBSTANCES IN, UNDER OR UPON THE

LAND HEREINAFTER DESCRIBED, HOWEVER, WITHOUT ANY RIGHTS TO THE SURFACE OF SAID LAND OR THE SUBSURFACE THEREOF EXCEPT BELOW A DEPTH OF 350.00 FEET

BELOW SAID SURFACE OF SAID LAND, AS GRANTED IN THE DEED TO RUTH ORTON LAIRD, A MARRIED WOMAN, RECORDED JUNE 12, 1964 IN BOOK 1301 PAGE 588 OF OFFICIAL RECORDS.

APN: 010-042-042

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EXHIBIT “B”

AFFORDABILITY SCHEDULE
Owner agrees to maintain the following affordability schedule pursuant to this agreement throughout the Term of this Agreement:

Number of Units Affordability Level
12 Up to 80% of AMI
1 Unrestricted Manager’s Unit
The parties to this Agreement acknowledge that upon entering the regulatory agreement with the California Tax Credit Allocation Committee, a total of twelve (12) dwelling units in the Project will be deed restricted by the Owner to be affordable to and occupied by households with the following income levels for at least 55 years:

Number of Units Affordability Level
12 Up to 80% of AMI
1 Unrestricted Manager’s Unit

12.B-16Council Agenda 12-6-2022
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Promissory Note
Secured by Deed of Trust
(Loan Proceeds Note)
Principal Amount: $1,000,000 _____________________, 2022 FOR VALUE RECEIVED, Shell Beach Senior, L.P., a California limited partnership (“Maker”) promises to pay The City of Pismo Beach, a California general law city (“Holder”) the amount of One Million and no/100 Dollars ($1,000,000) (the “Loan Proceeds”). The Loan Proceeds may be referred to herein as the Loan.

1.SECURITY. This Note shall be secured by a deed of trust (the “Deed of Trust”) recorded against Maker’s leasehold interest in that certain real property located in Pismo Beach, California, as more particularly described in the Deed of Trust (the “Property”).

2.MATURITY DATE. The maturity date for the Loan Proceeds shall be the date which is fifty-five (55)years from the Completion Date, as defined in the Loan Agreement between Maker and Holder (the “Maturity Date”).

3.REPAYMENT OF LOAN PROCEEDS. This Note shall be repaid with interest as follows:
(a) Interest. The outstanding principal balance of the Loan shall bear interest in the amount of four percent (4%) annually.
(b) Payments – Construction Period. All principal and interest payments will be deferred during the Construction Period.
(c) Payments – Permanent Period. Commencing on the one-year anniversary from date that Maker converts from construction to permanent financing (the “Conversion Date”), and on each anniversary of such date thereafter, Maker shall submit an annual payment on this Note to Holder in an amount equal to the City’s proportionate share of 50% of the Residual Receipts as defined below. The entire outstanding principal balance plus interest accrued thereon shall be due and payable on the Maturity Date. “Residual Receipts” is defined as the excess (if any) of (a) all rental income actually received by Maker during the calendar year immediately prior to the applicable payment date in connection with the operation of the Project, over (b) the sum of (i) all fees, costs and expenses incurred by Maker during such calendar year in connection with the ownership, operation, leasing, management, maintenance, repair and replacement of the Project, including but not limited to fees and expenses associated with property management, resident services, and social service reimbursement fees, if any; (ii) all debt payments and other amounts payable by Maker during such calendar year by Maker under the Senior Loan, (iii) all amounts deposited by Maker during such calendar year into reserve accounts for the Project as required by lenders and/or Maker's limited partner, if any, (iv) all deferred developer fees, (v) all partnership management fees and limited partner asset management fees paid by Maker during such calendar year, in an amount not to exceed $25,000 in the aggregate, increasing each year by 3%, and (vi) all operating deficit loan payments and all payments made by Maker during such calendar year on all loans received by Maker from the Maker’s limited partner.

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(d)Payment of Principal upon Event of Default or Sale. In the event the Property is sold (except as permitted under the terms of the Loan Documents (as defined herein)) or upon an Event of Default, which continues beyond expiration of applicable notice and cure periods, payment of the outstanding principal balance of the Loan and accrued interest shall be due and payable. (e)The indebtedness evidenced by this Note may be subordinated in right of payment to the prior payment in full of all amounts then due and payable (including, but not limited to, all amounts due and payable by virtue of any default or acceleration or upon maturity) with respect to any construction loan made by a commercial lender (“Senior Lender”) to the extent and in the manner provided in any subordination agreements entered into in connection therewith (the “Subordination Agreement”). The rights and remedies of the payee and each subsequent holder of this Note shall be deemed, by virtue of such holder’s acquisition of this Note, to have agreed to perform and observe all of the terms, covenants and conditions to be performed or observed by the “Subordinate Lender” under the Subordination Agreement. (f) Prepayment. This Note may be prepaid in whole or part at any time and from time to time without penalty, fee or premium.
(g)Place of Payment. Any payment required under this Note shall be made payable to The City of Pismo Beach, 760 Mattie Road, Pismo Beach, California, 93449. The place of payment may be changed from time to time as Holder may from time to time designate in writing. Payments shall be in lawful money of the United States of America.

4.COLLECTION. This Note evidences the Loan and is secured by the Deed of Trust recorded against the Property. The terms of the Deed of Trust are incorporated herein by this reference. Maker agrees to pay all the collection and enforcement costs, expenses and reasonable attorneys’ fees paid or incurred by the holder of this Note or adjudged by a court in any litigation or controversy connected with this Note, or security for it, including but not limited to actions for declaratory relief that any such holder is required to prosecute or defend and actions for relief based on rescission, or actions to cancel this Note that any such holder is required to defend.

5.DEFAULT.
(a)The occurrence of any of the following shall constitute an “Event of Default” under this Note: (i) Maker fails to pay to Holder any amount due hereunder within ten (10) days of notice from Holder that such payments is due; (ii) any default by Maker of any other covenant under this Note; (iii) any default by Maker under the Deed of Trust or any other document evidencing or securing the Loan; (iv) Maker fails to pay any taxes or assessments due on the Property when due (subject to Maker’s right to contest the same in good faith); or (v) Maker’s bankruptcy, whether voluntary or involuntary that is not dismissed within ninety (90) days.
(b)Upon the occurrence of any Event of Default which continues beyond expiration of applicable notice and cure periods, or at any time thereafter, at the option of Holder hereof and without notice, the entire unpaid principal and interest owing on this Note shall become immediately due and payable. This option may be exercised at any time following any such event, and the acceptance of one or more installments thereafter shall not constitute a waiver of Holder’s option. Holder’s failure to exercise such option shall not constitute a waiver of such option with respect to any subsequent event. Holder’s failure in the exercise of any other right or remedy hereunder or under any agreement which secures the indebtedness or is related thereto shall not affect any right or remedy and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof.

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(c)Notwithstanding anything to the contrary in this Note, that certain Affordable Housing Regulatory Agreement or the Deed of Trust (collectively, the “Loan Documents”) and except with respect to any obligation to make payments to Holder, Maker shall have the right to cure any defaults under the Loan Documents and Holder agrees to accept cures tendered by Maker within thirty (30) days of written notice to Maker of such default, plus such additional time as is reasonably necessary to cure the default provided Maker has commenced the cure within such thirty (30) day period and is diligently prosecuting the cure to completion.
(d)Notwithstanding anything to the contrary in the Loan Documents, the limited partner(s) of Maker (collectively, the “Limited Partner”) shall have the right, but not the obligation, to cure any defaults of Maker hereunder, and Holder agrees to accept cures tendered by the Limited Partner on behalf of Maker within the cure periods described in this Section 5. The Limited Partner may replace Borrower’s general partner(s) in furtherance of a cure and shall have a reasonable period of time thereafter to effect a cure. (e)The Note is a nonrecourse obligation of Maker and its partners. Neither Maker nor any of its partners nor any other party shall have any personal liability for repayment of this Note. The sole recourse of the Holder under the Loan Documents for repayment of the Note shall be the exercise of its rights against the Property.

6.WAIVER. Maker and any endorsers hereof and all others who may become liable for all or any part of this obligation, severally waive presentment for payment, demand and protest and notice of protest, and of dishonor and nonpayment of this Note, and expressly consent to any extension of the time of payment hereof or of any installment hereof, to the release of any party liable for this obligation, and any such extension or release may be made without notice to any of said parties and without any way affecting or discharging this liability.

7.ATTORNEY FEES. Maker agrees to pay immediately upon demand all costs and expenses of Holder, including reasonable attorneys’ fees, (i) after an Event of Default this Note be placed in the hands of an attorney or attorneys for collection, (ii) if after an Event of Default hereunder or under the Deed of Trust, Holder finds it necessary or desirable to secure the services or advice of one or more attorneys with regard to collection of this Note against Maker, any guarantor or any other party liable therefore or to the protection of its rights under the Loan Documents, or (iii) if Holder seeks to have the Property abandoned by or reclaimed from any estate in bankruptcy, or attempts to have any stay or injunction prohibiting the enforcement or collection of the Note or prohibiting the enforcement of the Loan Documents or any other agreement evidencing or securing this Note lifted by any bankruptcy or other courts.

8.INTEGRATION. This Note, the Deed of Trust and the other loan documents relating to this Note, embody the agreement between Holder and Maker for the Loan and its terms and conditions.

9.AMENDMENTS. This Note may not be modified or amended except by an instrument in writing executed by the parties sought to be bound thereby.

10.GOVERNING LAW. This Note shall be governed by and construed in accordance with the laws of the State of California.
[SIGNATURE ON FOLLOWING PAGE]

12.B-19Council Agenda 12-6-2022
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Executed as of the date first written above.

SHELL BEACH SENIOR, L.P.,
a California limited partnership
By: San Luis Obispo Nonprofit Housing Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By:

Michelle Pedigo,
Deputy Chief Financial Officer
By: Pacific SPT LLC,
a California limited liability company,
its co-general partner
By:

Joseph Michael,
Manager

12.B-20Council Agenda 12-6-2022
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Promissory Note
Secured by Deed of Trust
(Deferred Fees Proceeds Note)
Principal Amount: $443,676.00 _____________________, 2022 FOR VALUE RECEIVED, Shell Beach Senior, L.P., a California limited partnership (“Maker”) promises to pay the City of Pismo Beach (“Holder”) the amount of Four Hundred Forty-Three Thousand, Six Hundred Seventy-Six and no/100 Dollars ($443,676) (the “Deferred Fee Proceeds”). The Deferred Fee Proceeds may be referred to herein as the Loan.

1.SECURITY. This Note shall be secured by a deed of trust (the “Deed of Trust”) recorded against Maker’s leasehold interest in that certain real property located in Pismo Beach, California, as more particularly described in the Deed of Trust (the “Property”).

2.MATURITY DATE. The maturity date for the Deferred Fee Proceeds shall be the date which is fifty-five (55) years from the Completion Date, as defined in the Loan Agreement between Maker and Holder (the “Maturity Date”).

3.REPAYMENT OF LOAN PROCEEDS. This Note shall be repaid with interest as follows:
(a) Interest. The outstanding principal balance of the Loan shall bear interest in the amount of four percent (4%) annually.
(b) Payments – Permanent Period. All payments will be deferred between the Funding Date and the Maturity Date.
(c)Payment of Principal upon Event of Default or Sale. Notwithstanding anything to the contrary contained herein, in the event the Property is sold (except as permitted under the terms of the Loan Documents (as defined herein)) or upon an Event of Default, which continues beyond expiration of applicable notice and cure periods, payment of the outstanding principal balance of the Loan shall be due and payable.
(d)The indebtedness evidenced by this Note may be subordinated in right of payment to the prior payment in full of all amounts then due and payable (including, but not limited to, all amounts due and payable by virtue of any default or acceleration or upon maturity) with respect to any construction loan made by a commercial lender (“Senior Lender”) to the extent and in the manner provided in any subordination agreements entered into in connection therewith (the “Subordination Agreement”). The rights and remedies of the payee and each subsequent holder of this Note shall be deemed, by virtue of such holder’s acquisition of this Note, to have agreed to perform and observe all of the terms, covenants and conditions to be performed or observed by the “Subordinate Lender” under the Subordination Agreement. (e) Prepayment. This Note may be prepaid in whole or part at any time and from time to time without penalty, fee, or premium.

12.B-21Council Agenda 12-6-2022
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(f)Place of Payment. Any payment required under this Note shall be made payable to The City of Pismo Beach, 760 Mattie Road, Pismo Beach, California, 93449. The place of payment may be changed from time to time as Holder may from time to time designate in writing. Payments shall be in lawful money of the United States of America.

4.COLLECTION. This Note evidences the Loan and is secured by the Deed of Trust recorded against the Property. The terms of the Deed of Trust are incorporated herein by this reference. Maker agrees to pay all the collection and enforcement costs, expenses, and reasonable attorneys’ fees paid or incurred by the holder of this Note or adjudged by a court in any litigation or controversy connected with this Note, or security for it, including but not limited to actions for declaratory relief that any such holder is required to prosecute or defend and actions for relief based on rescission, or actions to cancel this Note that any such holder is required to defend.

5.DEFAULT.
(a)The occurrence of any of the following shall constitute an “Event of Default” under this Note: (i) Maker fails to pay to Holder any amount due hereunder within ten (10) days of notice from Holder that such payments is due; (ii) any default by Maker of any other covenant under this Note; (iii) any default by Maker under the Deed of Trust or any other document evidencing or securing the Loan; (iv) Maker fails to pay any taxes or assessments due on the Property when due (subject to Maker’s right to contest the same in good faith); or (v) Maker’s bankruptcy, whether voluntary or involuntary that is not dismissed within ninety (90) days.
(b)Upon the occurrence of any Event of Default which continues beyond expiration of applicable notice and cure periods, or at any time thereafter, at the option of Holder hereof and without notice, the entire unpaid principal and interest owing on this Note shall become immediately due and payable. This option may be exercised at any time following any such event, and the acceptance of one or more installments thereafter shall not constitute a waiver of Holder’s option. Holder’s failure to exercise such option shall not constitute a waiver of such option with respect to any subsequent event. Holder’s failure in the exercise of any other right or remedy hereunder or under any agreement which secures the indebtedness or is related thereto shall not affect any right or remedy and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof. (c)Notwithstanding anything to the contrary in this Note, that certain Affordable Housing Regulatory Agreement or the Deed of Trust (collectively, the “Loan Documents”) and except with respect to any obligation to make payments to Holder, Maker shall have the right to cure any defaults under the Loan Documents and Holder agrees to accept cures tendered by Maker within thirty (30) days of written notice to Maker of such default, plus such additional time as is reasonably necessary to cure the default provided Maker has commenced the cure within such thirty (30) day period and is diligently prosecuting the cure to completion.
(d)Notwithstanding anything to the contrary in the Loan Documents, the limited partner(s) of Maker (collectively, the “Limited Partner”) shall have the right, but not the obligation, to cure any defaults of Maker hereunder, and Holder agrees to accept cures tendered by the Limited Partner on behalf of Maker within the cure periods described in this Section 5. The Limited Partner may replace Borrower’s general partner(s) in furtherance of a cure and shall have a reasonable period of time thereafter to effect a cure. (e)The Note is a nonrecourse obligation of Maker and its partners. Neither Maker nor any of its partners nor any other party shall have any personal liability for repayment of this Note. The sole recourse of the Holder under the Loan Documents for repayment of the Note shall be the exercise of its rights against the Property.

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6.WAIVER. Maker and any endorsers hereof and all others who may become liable for all or any part of this obligation, severally waive presentment for payment, demand and protest and notice of protest, and of dishonor and nonpayment of this Note, and expressly consent to any extension of the time of payment hereof or of any installment hereof, to the release of any party liable for this obligation, and any such extension or release may be made without notice to any of said parties and without any way affecting or discharging this liability.

7.ATTORNEY FEES. Maker agrees to pay immediately upon demand all costs and expenses of Holder, including reasonable attorneys’ fees, (i) after an Event of Default this Note be placed in the hands of an attorney or attorneys for collection, (ii) if after an Event of Default hereunder or under the Deed of Trust, Holder finds it necessary or desirable to secure the services or advice of one or more attorneys with regard to collection of this Note against Maker, any guarantor or any other party liable therefore or to the protection of its rights under the Loan Documents, or (iii) if Holder seeks to have the Property abandoned by or reclaimed from any estate in bankruptcy, or attempts to have any stay or injunction prohibiting the enforcement or collection of the Note or prohibiting the enforcement of the Loan Documents or any other agreement evidencing or securing this Note lifted by any bankruptcy or other courts.

8.INTEGRATION. This Note, the Deed of Trust and the other loan documents relating to this Note, embody the agreement between Holder and Maker for the Loan and its terms and conditions.

9.AMENDMENTS. This Note may not be modified or amended except by an instrument in writing executed by the parties sought to be bound thereby.

10.GOVERNING LAW. This Note shall be governed by and construed in accordance with the laws of the State of California.
[SIGNATURE ON FOLLOWING PAGE]

12.B-23Council Agenda 12-6-2022
Attachment 5
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Executed as of the date first written above.

SHELL BEACH SENIOR, L.P.,
a California limited partnership
By: San Luis Obispo Nonprofit Housing Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By:

Michelle Pedigo,
Deputy Chief Financial Officer
By: Pacific SPT LLC,
a California limited liability company,
its co-general partner
By:

Joseph Michael,
Manager

12.B-24Council Agenda 12-6-2022
Attachment 5
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When recorded mail to:

City of Pismo Beach
760 Mattie Road
Pismo Beach, California, 93449

LEASEHOLD DEED OF TRUST WITH ASSIGNMENT OF RENTS
This LEASEHOLD DEED OF TRUST WITH ASSIGNMENT OF RENTS, made as of the ____ day of __________________, 2022, between
Shell Beach Senior, L.P., a California limited partnership, herein called “TRUSTOR”, whose address is 487 Leff Street, San Luis Obispo, California 93401, and First American Title Company, herein called “TRUSTEE”, and City of Pismo Beach, a California Municipal Corporation, herein called “BENEFICIARY” Trustor irrevocably grants, transfers, and assigns to Trustee in Trust, with Power of Sale that property in the City of Pismo Beach, County of SAN LUIS OBISPO, State of CALIFORNIA, described as follows:

SEE EXHIBIT A ATTACHED
Together with the rents, issues, and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits.

FOR THE PURPOSE OF SECURING (1) payment of the sum of ONE MILLION FOUR

HUNDRED FORTY-THREE THOUSAND SIX HUNDRED SEVENTY-SIX DOLLARS AND NO CENTS ($1,443,676) with interest thereon according to the terms of a promissory note or notes of even date herewith made by TRUSTOR, payable to order of BENEFICIARY, and extensions or renewals thereof; (2) the performance of each agreement of TRUSTOR incorporated by reference or contained herein or reciting it is so secured; (3) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his or her successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust.

To protect the security of this Deed of Trust, and with respect to the property above described, Trustor agrees:
(1)To keep said property in good condition and repair, ordinary wear and tear excepted; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor (or to bond over any liens to Beneficiary’s reasonable satisfaction); to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon; not to commit or permit waste

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thereof; not to commit, suffer or permit any act upon said property in violation of the law; to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general.
(2)To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Notwithstanding the foregoing, in the event Beneficiary determines in its reasonable discretion that its lien is not impaired, it shall release any insurance amounts to Trustor for restoration. (3)To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
(4)To pay: at least ten (10) days before delinquency all taxes and assessments affecting said property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may:
make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest, or compromise any encumbrance, charge, or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his or her reasonable fees.
(5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby, any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded.
(6)That any award of damages in connection with any condemnation for public use of or injury to said property or any part thereof is hereby assigned and shall be paid to Beneficiary who may apply or release such moneys received by him or her in the same manner and with the same effect as above provided for disposition or proceeds of fire or other insurance. (7) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his or her right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay.

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(8)That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability or any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof.
(9)That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention or other disposition as Trustee in its sole discretion may choose and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The Grantee in such reconveyance may be described as the person or persons legally entitled thereto. (10)That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said property or any part thereof, in his or her own name sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney’s fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues, and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (11)That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder beyond any applicable notice or cure period, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby.

After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof.

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Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.

After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto.
(12)Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor of successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee.
(13)That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or the neuter, and the singular number includes the plural. Personal liability for the indebtedness secured hereby shall be limited as set forth in the other documents evidencing and/or securing such indebtedness.
(14)The Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obliged to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge thereof does not exceed the maximum allowed by law.
(15)This Deed of Trust will subordinate in lien priority to any commercial lender’s deed of trust or deed in lieu provided as security for a construction loan for the development of the Project. (16) Notwithstanding anything to the contrary contained herein, the following transfers shall be permitted without Beneficiary consent:
(a)The admission of one or more limited partners of Trustor (each, a “Limited Partner”) for the purposes of syndicating the low income housing tax credits for the project.
(b)Future transfers of the Limited Partner interest in accordance with the terms of Trustor’s partnership agreement.
(c)In the event the general partner of Trustor is removed by a Limited Partner of Trustor for cause following default under Trustor’s partnership agreement,

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Beneficiary hereby approves the removal, and in addition, approves the transfer of the general partner interest to the Limited Partner of Trustor, or an affiliate thereof, or to a nonprofit corporation that is exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, or a limited liability company, whose sole member is a nonprofit corporation exempt from federal income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code, selected by the Limited Partner of Trustor.
(d) The grant of an option and/or right of first refusal to the general partner of Trustor, or an affiliate thereof, pursuant to the terms of Trustor’s partnership documents, and the subsequent exercise of such option and/or right of first refusal by the optionee.
(17)Beneficiary acknowledges that Trustor and the California Tax Credit Allocation Committee (CTCAC) intend to enter into an extended use agreement, which constitutes the extended low-income housing commitment described in Section 42(h)(6)(B) of the Internal Revenue Code (IRC), as amended. As of the date hereof, IRC Section 42(h)(6)(E)(ii) does not permit the eviction or termination of tenancy (other than for good cause) of an existing tenant of any low-income unit or any increase in the gross rent with respect to such unit not otherwise permitted under Section 42 for a period of three (3) years after the date the building is acquired by foreclosure or instrument in lieu of foreclosure. In the event the regulatory agreement required by CTCAC is recorded against the Property, the Beneficiary agrees to comply with the provisions set forth in IRC Section 42(h)(6)(E)(ii).
[Signature Pages Follow]

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The undersigned Trustor requests that a copy of any notice of default and any notice of sale hereunder be mailed to him or her at his or her address hereinbefore set forth.

Trustor:

SHELL BEACH SENIOR, L.P.,
a California limited partnership
By: San Luis Obispo Nonprofit Housing Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By:

Michelle Pedigo,
Deputy Chief Financial Officer
By: Pacific SPT LLC,
a California limited liability company,
its co-general partner
By:

Joseph Michael,
Manager
Date: __________________________

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EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
Real property in the County of San Luis Obispo, State of California, described as follows:

THAT PORTION OF LOT 5 OF THE SUBDIVISIONS OF THE RANCHOS EL PISMO AND SAN

MIGUELITO, AS SHOWN ON MAP FILED IN THE CITY OF PISMO BEACH, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, BOOK A PAGE 157 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT THE EASTERLY TERMINUS OF THE COURSE RECITED AS THENCE (7) FROM TANGENT THAT BEARS NORTH 68 DEGREES 46' 16" WEST, ALONG A CURVE TO THE RIGHT, WITH A RADIUS OF 1000 FEET, THROUGH AN ANGLE OF 18 DEGREES 24' 28" FOR A DISTANCE OF 321.28' IN PARCEL 2 OF THE NOTICE OF ACTION ENTERED IN SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 27806 A COPY OF WHICH WAS RECORDED OCTOBER 18, 1962 IN BOOK 1207, PAGE 3, OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHERLY LINE OF THE LAND DESCRIBED IN SAID PARCEL 2, SOUTH 66 DEGREES 56' 23" EAST TO THE EASTERLY LINE OF SAID LOT 5 BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID SOUTHERLY LINE, NORTH 66 DEGREES 56' 23" WEST 155 FEET; THENCE AT RIGHT ANGLES, SOUTH 23 DEGREES 03' 37" WEST 150 FEET; THENCE AT RIGHT ANGLES, SOUTH 66 DEGREES 56' 23" EAST TO THE EASTERLY LINE OF SAID LOT 5; THENCE NORTHERLY ALONG SAID EASTERLY LINE TO THE TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM AN UNDIVIDED ONE-HALF INTEREST OF ALL THE OIL, GAS,

CASINGHEAD GAS, AND OTHER HYDROCARBONS, IN UNDER OR UPON SAID LAND, AS RESERVED BY RUTH ORTON LAIRD IN DEED RECORDED APRIL 6, 1950 IN BOOK 559 PAGE 257 OF OFFICIAL RECORDS.

BY AN INSTRUMENT DATED MAY 25, 1964 EXECUTED BY RUTH ORTON LAIRD, A MARRIED WOMAN, AND WILLIAM E. BURNETT AND MARGARET F. BURNETT, HIS WIFE, AND WILLIAM E. MOORE AND AUDREY R. MOORE, HIS WIFE, SAID RUTH ORTON LAIRD

RELINQUISHED ALL HER RIGHTS TO ENTER UPON, POSSESS OR USE ANY PART OF THE

SURFACE OF SAID LAND, OR ANY PART OF THE SUBSURFACE THEREOF TO A DEPTH OF THREE HUNDRED FIFTY (350) FEET BENEATH THE SURFACE THEREOF, RECORDED JUNE 12, 1964 IN BOOK 1301 PAGE 582 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THE REMAINING ONE-HALF INTEREST OF ALL OIL, GAS,

CASINGHEAD GAS AND OTHER HYDROCARBON SUBSTANCES IN, UNDER OR UPON THE

LAND HEREINAFTER DESCRIBED, HOWEVER, WITHOUT ANY RIGHTS TO THE SURFACE OF SAID LAND OR THE SUBSURFACE THEREOF EXCEPT BELOW A DEPTH OF 350.00 FEET

BELOW SAID SURFACE OF SAID LAND, AS GRANTED IN THE DEED TO RUTH ORTON LAIRD, A MARRIED WOMAN, RECORDED JUNE 12, 1964 IN BOOK 1301 PAGE 588 OF OFFICIAL RECORDS.

APN: 010-042-042

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

ACKNOWLEDGMENT

State of California
County of _____________________________)

On ________________________ before me, _______________________________________________ personally appeared __________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________

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RECORDING REQUESTED BY:

WHEN RECORDED MAIL TO:

City of Pismo Beach 760 Mattie Road Pismo Beach, California, 93449 APN: 010-042-042 (Space above for Recorder’s use only)

AFFORDABLE HOUSING REGULATORY AGREEMENT
This Affordable Housing Regulatory Agreement (the “Agreement”) is made this _____ day of _____________________, 2022, by and between the City of Pismo Beach, a California general law city (the “Lender”), and Shell Beach Senior, L.P., a California limited partnership (the “Owner”).

RECITALS
A.The Owner is acquiring a leasehold interest in real property in the city of Pismo Beach, in the County of San Luis Obispo, as more particularly described in Exhibit A (the “Property”).

B.The Owner intends to operate the Property as an affordable housing project for low income households.

C.Lender has agreed to provide Owner a loan in the amount of ONE MILLION and No/100 Dollars ($1,000,000.00) (the “Loan Proceeds”) and to defer payment of certain development fees in the amount of FOUR HUNDRED FORTY-THREE THOUSAND SIX HUNDRED SEVENTY-SIX AND No/100 dollars ($443,676.00) (the “Deferred Fees” and together with the Loan Proceeds, the “Loan”) to finance the construction of a twenty-six (26) unit housing project (the “Project”) consisting of twelve (12) units for Low Income Households, located on the Property to benefit low income households in the City of Pismo Beach.

D.As consideration for Lender’s agreement to fund the Loan, Owner has agreed to operate the Property and the Project as affordable housing to low income tenants for a minimum of fifty-five (55) years, subject to the restrictions contained herein.

E.As further consideration for Lender’s agreement to provide the Loan, and to further the interests of the Lender, the Owner has agreed to enter into and record this Agreement. The purpose of this Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and management of the Property and the Project for affordable housing and related uses. The covenants in this Agreement are intended to run with the land and be binding on the Owner and its successors and assigns in the Property.

NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and representations, and in further consideration for the aforementioned funding of the Loan, the Owner and the Lender hereby agree as follows:

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DEFINITIONS
The following terms have the meanings and content set forth in this section wherever used in this Agreement or attached exhibits.
“AFFORDABLE RENT” means the total charges for rent and utilities to each Qualifying Household as allowed based on household size, income level, and unit size pursuant to Fair Market Rents and Income Limits published annually by HUD.
“DEED OF TRUST” means that certain Deed of Trust with Assignment of Rents recorded on the Property as security for the Loan, with the Owner as Trustor and the Lender as Beneficiary, as well as any amendments to, modifications of, and restatements of, said Deed of Trust. “DEFERRED FEE NOTE” means the promissory note executed by the Owner in favor of the Lender in the amount of FOUR HUNDRED FORTY-THREE THOUSAND SIX HUNDRED SEVENTY-SIX AND No/100 dollars ($443,676.00) to evidence the Loan, which is secured by the Deed of Trust, as well as any amendments to, modifications of, or restatements of said promissory note. “EXTREMELY LOW INCOME HOUSEHOLD” means a household whose annual income does not exceed thirty percent (30%) of the Area Median Income for the San Luis Obispo Metropolitan Statistical Area as determined annually by HUD and adjusted for household size. “HUD” means the Federal Department of Housing and Urban Development. “LENDER” is the City of Pismo Beach, a California general law city incorporated under the laws of the State of California, and its officers, officials, directors, employees, agents, and authorized representatives. “LOAN” means the Loan made by the Lender to the Owner for development of the Project pursuant to the Loan Agreement and the Deferred Fee Note and Loan Proceeds Note. “LOAN AGREEMENT” is the Development Loan Agreement executed by and between the Owner and the Lender, setting forth the terms and conditions governing the Loan. “LOAN DOCUMENTS” are collectively the Loan Agreement, the Notes evidencing the Loan, the Deed of Trust securing the Note, and this Agreement as they may be amended, modified, or restated from time to time, along with all exhibits and attachments to these documents. “LOW INCOME HOUSEHOLD” means a household whose annual income does not exceed eighty percent (80%) of the Area Median Income for the San Luis Obispo Metropolitan Statistical Area as determined annually by HUD and adjusted for household size. Low Income Household includes Extremely Low Income Households.
“LOAN PROCEEDS NOTE” means the promissory note executed by the Owner in favor of the Lender in the amount of ONE MILLION AND NO/100 DOLLARS ($1,000,000) to evidence the Loan, which is secured by the Deed of Trust, as well as any amendments to, modifications of, or restatements of said promissory note.
“OWNER” means Shell Beach Senior, L.P., a California limited partnership. “PROJECT” means the Units on the Property and any supportive services and programs provided to tenants of the Property.
“PROPERTY” means the real property described in Exhibit A attached hereto and incorporated herein, including all parking, landscaping, and other improvements appurtenant thereto.

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“QUALIFYING HOUSEHOLD” means a household that qualifies as either a Low Income Household or Extremely Low Income Household.
“TERM” means the term of this Agreement described herein. “UNIT” means any one of the units in the Project.

THE OWNER'S OBLIGATIONS

1.COMPLIANCE WITH LOAN DOCUMENTS. The Owner's actions with respect to the Property and the use of funds from the Loan shall at all times be in full conformity with all of the requirements of the Loan Documents, including but not limited to the insurance requirements contained therein.

2.USE FOR AFFORDABLE HOUSING. The Owner agrees that, at all times during the Term of this Agreement, a minimum of twelve (12) units in the Project will be used as affordable housing for Low Income Households. Owner shall not convert the residential units in the Project to condominium or cooperative ownership or sell condominium or cooperative rights to the Project or any part thereof during the term of this Agreement.

3.TERM OF AGREEMENT. This Agreement shall commence upon completion of construction of the Project and conversion to a permanent loan and shall remain in full force and effect for a period of fifty-five (55) years.

OCCUPANCY AND RENTS

4.OCCUPANCY OF UNITS. During the term of this Agreement, twelve (12) units in the Project will be used as affordable housing for Low Income Households.

5.TENANT SELECTION. The Owner shall adopt written tenant selection policies for at least the assisted units that: (a) are reasonably related to program eligibility and the applicant’s ability to perform the obligations of the lease; (b) are consistent with the purpose of providing housing for Low Income Households and Extremely Low Income Households; and (c) give prompt written notification to any rejected applicant of the grounds for rejection.

6.NONDISCRIMINATION. The Owner shall not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of any units in the Project on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS-related conditions (ARC), or any other arbitrary basis or basis protected by applicable law.

The Owner shall include a statement in all advertisements, notices, and signs for the availability of units for rent to the effect that the Owner is an Equal Housing Opportunity Provider.

7.INCOME CERTIFICATION AND INCREASES IN TENANT INCOME. The Owner shall certify the incomes of all prospective tenants in the Project prior to their initial occupancy of a unit and shall recertify their incomes annually. If upon recertification, a tenant’s income exceeds the maximum designated for a Low Income Household, the Owner may increase the monthly rent for such tenants to no more than one-twelfth of 30% of the tenant’s annual income and the tenant may be permitted to continue to occupy a unit in the Project. Owner shall rent the next available unit to a tenant whose household income does not exceed the income of a Low Income Household in order to achieve the affordability requirements of this Agreement. Owner shall provide Lender an annual report on the income recertification evidencing that Project occupants meet the requirements of qualified households. To the Extent of a conflict between this Agreement and the requirements of the California Tax Credit Allocation Committee (“TCAC”), TCAC’s requirements shall control.

8.RENTAL CHARGES. Total charges for rent, utilities, and related services for each unit in the Project

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shall not exceed the Affordable Rent for that unit. If upon recertification, a tenant’s income exceeds the Low Income Household limit, Owner may increase the rent for such tenants to no more than 30% of the tenant’s income.

PROPERTY MANAGEMENT

9.MANAGEMENT RESPONSIBILITIES. The Owner is responsible for all management functions with respect to the Project, including without limitation the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The Lender shall have no responsibility over management of the Property or the Project. Throughout the term of this Agreement, Owner shall at its own expense, maintain the Property and the Project in good physical condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions in conformity with all applicable state, federal, and local laws, ordinances, codes, and regulations, ordinary wear and tear excepted. Without limiting the foregoing, Owner agrees to maintain the Project and the Property (including without limitation, the residential units, common areas, meeting rooms, landscaping, driveways, parking areas, and walkways) in a condition free of all waste, nuisance, debris, unmaintained landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take all reasonable steps to prevent the same from occurring on the Property or at the Project. Owner shall prevent and/or rectify any physical deterioration of the Property and the Project and shall make all repairs, renewals, and replacements necessary to keep the Property and the improvements located thereon in good condition and repair.

Owner shall provide adequate security services for occupants of the Project. In the event that Owner breaches any of the covenants regarding maintenance and landscaping in this Section 9, and such default continues for a period of ten (10) days after written notice from Lender (with respect to graffiti, debris, and waste material) or thirty (30) days after written notice from Lender (with respect to landscaping, building improvements and general maintenance), then Lender, in addition to any other remedy it may have under this Agreement or at law or in equity, shall have the right, but not the obligation, to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and the landscaped areas on the Property. All reasonable costs expended by Lender in connection with the foregoing, shall constitute an indebtedness secured by the Deed of Trust, and shall be paid by Owner to Lender upon demand. All such sums remaining unpaid thirty (30) days following delivery of Lender’s invoice therefor shall bear interest at the lesser of 10% per annum or the highest rate permitted by applicable law.

10.REVIEW OF MANAGEMENT POLICIES. The Owner shall submit its written management policies with respect to the Project and Program to the Lender for its review, and shall amend such policies in any way necessary to insure that such policies comply with the provisions of this Agreement and the requirements of all lenders providing financing for the Property and/or the Project.

11.INSPECTION AND RECORDS. The Owner shall maintain records that clearly document the Owner's performance of its obligations to operate the Property under the terms of this Agreement.

The Owner shall submit any records to the Lender within ten (10) business days of the Lender's request. The Owner shall permit the Lender to enter and inspect the Project for compliance with obligations under this Agreement upon twenty-four (24) hours advance notice of such visit, at all reasonable times, by the Lender to the Owner or the Owner's management agent and to tenants of any Units.

12.ANNUAL REPORT. The Owner shall submit to the Lender each year, on or prior to the date such report is required to be submitted to the California Tax Credit Allocation Committee (“TCAC”), a report for the preceding calendar year showing the necessary information to allow the Lender to determine the Owner's compliance with this Agreement, and within thirty (30) days after receipt of a written request, any other information or completed forms requested by the Lender in order to comply with reporting requirements of the Lender.

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13.FEES, TAXES, AND OTHER LEVIES. Owner shall be responsible for payment of all fees, assessments, taxes, charges, liens, and levies applicable to the Property or the Project, including without limitation possessory interest taxes, if applicable, imposed by any public entity, and shall pay such charges prior to delinquency. However, Owner shall not be required to pay any such charge so long as (a) Owner is contesting such charge in good faith and by appropriate proceedings, (b) Owner maintains reserves adequate to pay any contested liabilities, and (c) on final determination of the proceeding or contest, Owner immediately pays or discharges any decision or judgment rendered against it, together with all costs, charges and interest. Nothing in this Section 13 is intended to prohibit Owner from applying for any exemption from property taxes and fees that may be available to the owners of low-income housing.

GENERAL PROVISIONS

14. SUBORDINATION. This Agreement shall be subordinated in priority to the lien to any commercial lender’s deed of trust, deed in lieu or other security agreements to be made by Owner, provided that the instruments effecting such subordination include reasonable protections to the Lender in the event of default, including without limitation, extended notice and cure rights. Owner agrees to use best efforts to ensure that all deeds of trust or other security instruments and any applicable subordination agreement recorded against the Property, the Project or part thereof for the benefit of a lender other than City (“Third-Party Lender”) shall contain each of the following provisions: (i) Third-Party Lender shall use its best efforts to provide to Lender a copy of any notice of default issued to Owner concurrently with provision of such notice to Owner; (ii) Lender shall have the reasonable right, but not the obligation, to cure any default by Owner within the same period of time provided to Owner for such cure; and (iii) following the tax credit compliance period, Lender shall have the right to transfer the Project without acceleration of Third-Party Lender’s debt to a nonprofit corporation or other entity which shall own and operate the Project as an affordable rental housing Project, subject to the prior written consent of the Third-Party Lender. Owner agrees to provide to Lender a copy of any notice of default Owner receives from any Third-Party Lender within three (3) business days following Owner’s receipt thereof.

15.DAMAGE/INSURANCE. If any part of the Project is damaged or destroyed, Owner shall repair or restore the same, consistent with the occupancy and rent restriction requirements set forth in this Agreement. Such work shall be commenced as soon as reasonably practicable after the damage or loss occurs and shall be completed within one year thereafter or as soon as reasonably practicable, provided that insurance proceeds are available to be applied to such repairs or restoration within such period and the repair or restoration is financially feasible. During such time that lenders or low- income housing tax credit investors providing financing for the Project impose requirements that differ from the requirements of this Section the requirements of such lenders and investors shall prevail. Throughout the term of this Agreement Owner shall comply with the insurance requirements set forth in the Loan Agreement and shall, at Owner’s expense, maintain in full force and effect such insurance coverage.

16.DEFAULT AND REMEDIES. In the event of any breach of any agreement or obligation under this Agreement by the Owner, the Lender shall provide written notice to the Owner of such breach. The Owner shall have an opportunity to cure such breach within thirty (30) days from the Owner's receipt of such written notice or such longer period of time as the Lender determines is necessary to cure the breach if the Owner diligently undertakes to cure such breach. If the Owner fails to perform a timely cure of the specified breach, the Lender may (i) proceed with any remedy provided under the Loan Agreement, (ii) bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief, (iii) accelerate and declare the balance of the Notes and interest accrued thereon immediately due and payable and proceed with foreclosure under the Deed of Trust, (iv) for violations of obligations with respect to affordable rents for Units, impose as

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liquidated damages a charge in an amount equal to the actual amount collected in excess of the Affordable Rent, or (v) pursue any other remedy allowed by law to enforce the terms and conditions of this Agreement. A cure by Owner’s limited partners shall be accepted or rejected on the same basis as if made or tendered by Owner.

17.NON-LIABILITY OF OFFICIALS, EMPLOYEES, AND AGENTS. No officers, directors, employees, and agents of the Lender shall be personally liable to the Owner for any obligation created under the terms of this Agreement.

18.INDEMNITY. The Owner shall defend, indemnify and hold the Lender free and harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) which the Lender may incur as a direct or indirect consequence of the Owner's failure to perform any obligations as and when required by this Agreement. This indemnity obligation shall not extend to any claim arising solely from the gross negligence or willful misconduct of the Lender, its agents, and its employees. The Owner's duty to indemnify the Lender shall survive the term of this Agreement. It is further agreed that Lender does not and shall not waive any rights against Owner that it may have by reason of this indemnity and hold harmless agreement because of the acceptance by Lender, or the deposit with Lender by Owner, of any of the insurance policies described in this Agreement or the Loan Agreement.

19. GOVERNING LAW. This Agreement shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law.

20.AGREEMENT CONTROLS. Notwithstanding any provisions of the Loan Agreement, in the event that any provisions of this Agreement and any Loan Document irreconcilably conflict, the terms of this Agreement shall control.

21.ATTORNEYS' FEES AND COSTS. In the event that any legal or administrative action or proceeding is commenced between the parties hereto to interpret or to enforce the terms of this Agreement, the prevailing party in any such action shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action.

22.CONSENTS AND APPROVALS. Any consent or approval of the Lender required under this Agreement shall not be unreasonably withheld. Any approval must be in writing and executed by an authorized representative of the Lender.

23.NOTICES, DEMANDS, AND COMMUNICATIONS. Formal notices, demands and communications between the Owner and the Lender shall be sufficiently given and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the principal offices of the Owner and the Lender as follows:

Lender:

City of Pismo Beach
760 Mattie Road
Pismo Beach, CA, 93449
Attention: City Manager
Owner:

Shell Beach Senior, L.P.
487 Leff Street
San Luis Obispo, California 93401
Attention: Chief Financial Officer

24.BINDING UPON SUCCESSORS. All provisions of this Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors-in-interest, transferee, and assigns of the Owner, and the Lender, and shall run with the land for the full term of this Agreement, regardless of any assignment, payment, prepayment, expiration, extinguishment of the Loan or Note, any reconveyance of the Deed of Trust, or any conveyance or transfer of the Property or portion thereof.

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25.RELATIONSHIP OF PARTIES. The relationship of the Owner and the Lender during the term of this Agreement is solely that of lender and owner shall not be construed as a joint venture, equity venture, or partnership.

26.WAIVER. Any waiver by the Lender of any obligation in this Agreement must be in writing. No waiver will be implied from any delay or failure by the Lender to take action on any breach or default of the Owner or to pursue any remedy allowed under this Agreement, the Loan Documents, or applicable law. Any extension of time granted to the Owner to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement.

Consent by the Lender to any act or omission by the Owner shall not be construed to be consent to any other or subsequent act or omission or to waive the requirement for the Lender's written consent to future waivers.

27.INTEGRATION/AMENDMENTS AND MODIFICATIONS. This Agreement, together with the Loan Agreement, the Notes, the Deed of Trust, and the other Loan Documents contains the entire agreement of Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. Any amendments or modifications to this Agreement must be in writing, and shall be made only if executed by both the Owner and the Lender.

This Agreement and any amendments or modifications may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

28.SEVERABILITY. Every provision of this Agreement is intended to be severable. If any provision of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired.

IN WITNESS WHEREOF, Lender and Owner have caused this Regulatory Agreement to be executed by their duly authorized representatives.

Lender:

City of Pismo Beach,
a California general law city
By: ____________________________
James R. Lewis
City Manager
Date: __________________________
Owner:

SHELL BEACH SENIOR, L.P.,
a California limited partnership
By: San Luis Obispo Nonprofit Housing
Corporation,
a California nonprofit public benefit corporation,
its managing general partner
By:

Michelle Pedigo,
Deputy Chief Financial Officer
By: Pacific SPT LLC,
a California limited liability company,
its co-general partner
By:

Joseph Michael, Manager

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

ACKNOWLEDGMENT
State of California
County of _____________________________)
On ________________________ before me, _______________________________________________ personally appeared __________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

ACKNOWLEDGMENT
State of California
County of _____________________________)
On ________________________ before me, _______________________________________________ personally appeared __________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________

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EXHIBIT “A”
Legal Description
Real property in the County of San Luis Obispo, State of California, described as follows:

THAT PORTION OF LOT 5 OF THE SUBDIVISIONS OF THE RANCHOS EL PISMO AND SAN

MIGUELITO, AS SHOWN ON MAP FILED IN THE CITY OF PISMO BEACH, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, BOOK A PAGE 157 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:

BEGINNING AT THE EASTERLY TERMINUS OF THE COURSE RECITED AS THENCE (7) FROM TANGENT THAT BEARS NORTH 68 DEGREES 46' 16" WEST, ALONG A CURVE TO THE RIGHT, WITH A RADIUS OF 1000 FEET, THROUGH AN ANGLE OF 18 DEGREES 24' 28" FOR A DISTANCE OF 321.28' IN PARCEL 2 OF THE NOTICE OF ACTION ENTERED IN SAN LUIS OBISPO SUPERIOR COURT, CASE NO. 27806 A COPY OF WHICH WAS RECORDED OCTOBER 18, 1962 IN BOOK 1207, PAGE 3, OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY; THENCE ALONG THE SOUTHERLY LINE OF THE LAND DESCRIBED IN SAID PARCEL 2, SOUTH 66 DEGREES 56' 23" EAST TO THE EASTERLY LINE OF SAID LOT 5 BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID SOUTHERLY LINE, NORTH 66 DEGREES 56' 23" WEST 155 FEET; THENCE AT RIGHT ANGLES, SOUTH 23 DEGREES 03' 37" WEST 150 FEET; THENCE AT RIGHT ANGLES, SOUTH 66 DEGREES 56' 23" EAST TO THE EASTERLY LINE OF SAID LOT 5; THENCE NORTHERLY ALONG SAID EASTERLY LINE TO THE TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM AN UNDIVIDED ONE-HALF INTEREST OF ALL THE OIL, GAS,

CASINGHEAD GAS, AND OTHER HYDROCARBONS, IN UNDER OR UPON SAID LAND, AS RESERVED BY RUTH ORTON LAIRD IN DEED RECORDED APRIL 6, 1950 IN BOOK 559 PAGE 257 OF OFFICIAL RECORDS.

BY AN INSTRUMENT DATED MAY 25, 1964 EXECUTED BY RUTH ORTON LAIRD, A MARRIED WOMAN, AND WILLIAM E. BURNETT AND MARGARET F. BURNETT, HIS WIFE, AND WILLIAM E. MOORE AND AUDREY R. MOORE, HIS WIFE, SAID RUTH ORTON LAIRD

RELINQUISHED ALL HER RIGHTS TO ENTER UPON, POSSESS OR USE ANY PART OF THE

SURFACE OF SAID LAND, OR ANY PART OF THE SUBSURFACE THEREOF TO A DEPTH OF THREE HUNDRED FIFTY (350) FEET BENEATH THE SURFACE THEREOF, RECORDED JUNE 12, 1964 IN BOOK 1301 PAGE 582 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THE REMAINING ONE-HALF INTEREST OF ALL OIL, GAS,

CASINGHEAD GAS AND OTHER HYDROCARBON SUBSTANCES IN, UNDER OR UPON THE

LAND HEREINAFTER DESCRIBED, HOWEVER, WITHOUT ANY RIGHTS TO THE SURFACE OF SAID LAND OR THE SUBSURFACE THEREOF EXCEPT BELOW A DEPTH OF 350.00 FEET

BELOW SAID SURFACE OF SAID LAND, AS GRANTED IN THE DEED TO RUTH ORTON LAIRD, A MARRIED WOMAN, RECORDED JUNE 12, 1964 IN BOOK 1301 PAGE 588 OF OFFICIAL RECORDS.

APN: 010-042-042

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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.C

SUBJECT/TITLE:

INTEGRATED REGIONAL WATER MANAGEMENT (IRWM) PLAN AND GRANT;

DETERMINATION OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT

RECOMMENDATION:

1. Adopt a Resolution adopting the 2019 San Luis Obispo County Integrated Regional Water Management Plan and adopting Statutory Exemption No. 2022- 030.

2. Adopt a Resolution designating the Director of Public Works/City Engineer as the authorized representative to file applications and execute agreements for the 2022 Proposition 1 IRWM Implementation Grant Program.

BACKGROUND:

Senate Bill 1672 established the Integrated Regional Water Management (IRWM) Act in 2002, intended to promote collaborative, integrated management of water resources.

California voters passed a series of propositions, thereby establishing and funding efforts under the State’s IRWM Program. These propositions authorized the Legislature to appropriate grant funds for IRWM plans and projects, and to establish eligibility requirements. The IRWM Program is administered by the State’s Department of Water Resources (DWR).

As a regional collaboration, local IRWM efforts are conducted under the auspices of a Memorandum of Understanding (MOU) with 29 local agencies (Attachment 2.A), including the San Luis Obispo County Flood Control and Water Conservation District (District), the Cities, the Community Services Districts, the Resource Conservation Districts, and Non-Governmental Organizations (NGO’s), who support multiple water resource efforts. The District is the lead agency under the MOU, and collectively, the agencies are referred to as the Regional Water Management Group (RWMG). The District is also responsible for development and implementation of San Luis Obispo County Region’s IRWM Plan (Plan). The Plan was initially developed and adopted by multiple agencies in the county in 2005 and updated in 2007 and then again in 2014. The Pismo Beach City Council last adopted the Plan on August 19, 2014. Table 1 shows the grants that have been awarded to the SLO County Region since the adoption of the initial plan in 2005.

Table 1: Grants Awarded in SLO County Since 2005

Grant Funding
Source Funded Projects
Grant
Funding
Allocation
Year
Awarded
Prop 50 Planning Four (4) Planning Studies $500,000 2005

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Prop 84
Implementation
Los Osos Wastewater Project
Flood Control Zone 1/1A
Nipomo Supplemental Water Project
$10,401,000 2011
Prop 1E
Implementation
Flood Control Zone 1/1A –Waterway Management
Program $2,800,000 2011
Prop 84 Planning IRWMP Update
Five (5) Planning Studies $1,000,000 2012
Prop 84 Expedited
Drought
CSA 23-AMWC-Garden Farms Emergency
Intertie
Emergency Turnout
Emergency Water Supply
$6,323,610 2014
Prop 84
Implementation
Upper Salinas River Basin Conjunctive Use
Well Head Treatment
Water Resources Reliability Program, Planning
$3,702,762 2015
Prop 1 Planning IRWM Update & Region-Wide Stormwater
Resource Plan $204,183 2016
Prop 1
Disadvantaged
Community (DAC)
Involvement
DAC Needs Assessment
Water Resource Reliability Program, Phase 2
Turnout Pump Station Design and Water Master
Plan Update
Wastewater Plant Upgrade Study and Recharge
Basin Study
$877,563 2017
Prop 1 Round 1
Implementation
One Water SLO, MBR/UV Upgrade
Nipomo Supplemental Water Project, Final Phase
8th Street Well Construction
Water Resource Reliability Projects 1-1 and 1-9
$2,782,130 2020
Prop 1 Round 2
Implementation (Application in process) $3,782,129 2023* Total IRWM Grant Successes in SLO County IRWM Region $29,091,248

To comply with the Proposition 1 IRWM Implementation Grant requirements and to meet DWR eligibility requirements, the 2014 IRWM Plan needed to be updated to meet current State standards. The plan update is now complete.

Process Requirements
One of the eligibility requirements of the IRWM Program is that an IRWM Plan be formally accepted, as evidenced by a resolution or other written documentation, by the governing bodies of each agency that is part of the RWMG responsible for the development of the Plan and have responsibility for implementation of the Plan (California Water Code Section 10543). Therefore, staff recommends that the City Council adopt the attached resolutions adopting the 2019 San Luis Obispo County IRWM Plan for the Flood Control District and the County. The MOU for the RWMG is attached to the resolutions since the IRWM Plan needs to demonstrate the governance under which the SLO County regional efforts are conducted.

IRWM Plan Content
The IRWM Plan has been developed in accordance with state standards and with extensive participation from the RWMG, the WRAC and the general public. The IRWM

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Plan is on file with the County Clerk’s office, and available at www.slocounty.ca.gov/IRWM by clicking on the IRWM Plan link.

Through its governance, goals, and objectives and project review process sections, the IRWM Plan provides a united framework among SLO County Region stakeholders for sustainable water resource management. The IRWM Plan also provides a “one stop shop” for information on the water resources of the county, and related planning and project efforts. The IRWM Plan is intended to be a “living” document, with the ability to update information and the project list within it as needed. A detailed discussion of IRWM Plan implementation and update efforts are described in Section 8 (Plan Performance and Monitoring) and Section 2.5 (Plan Implementation).

Prop 1 Round 2 Grant Application
Adoption of the 2019 IRWM plan will meet one of the eligibility requirements to receive IRWM grant funds, including the Prop 1 Round 2 Implementation Grant, whose application is expected to be submitted in January 2023 and includes approximately $1,000,000 for Central Coast Blue as one of the selected projects. In anticipation of the final application submittal, the District has requested local agencies adopt a Resolution (Attachment 2) designating an authorized representative and verifying support of the project.

Environmental Review
In accordance with the California Environmental Quality Act (CEQA), it has been determined that the 2019 IRWM Plan is statutorily exempt pursuant to Section 15262 of the CEQA Guidelines regarding a study which identifies potential projects and polices for possible future actions subject to future approval. A copy of the Statutory Exemption has been included as Attachment 3.

Conclusion and Recommendation
Staff recommends Council adopt the Resolution (Attachment 1) adopting the 2019 IRWM Plan in order to substantially advance cooperative integrated water resource planning in the region. Additionally, adopting this Plan will maintain eligibility for future IRWM grants, stormwater grants and others. Staff also recommends Council adopt the Resolution (Attachment 2) designating the City’s authorized representative to file an application and execute agreements for the 2022 Proposition 1 IRWM Implementation Grant Program in support of Central Coast Blue.

FISCAL IMPACT:

There is no direct fiscal impact associated with the attached Resolutions. There may be an associated fiscal impact to implement actions consistent with participating in the IRWM plan. Those costs are unknown at this time, however any costs would be offset by the award of the grant funding.

ALTERNATIVES:

1. Do not adopt one or both Resolutions, provide direction to staff.

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ATTACHMENTS:

1. Resolution – 2019 IRWM Plan

2. Resolution – Prop 1 Grant Authorized Representative

2.A – Exhibit to Resolution: MOU

2.B – Exhibit to Resolution: list of projects

3. Statutory Exemption 2022-030
Prepared by: Meeting Date: December 6, 2022
Erin Olsen, Management Analyst
Submitted by: 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 ADOPTING THE 2019 SAN LUIS OBISPO COUNTY

INTEGRATED REGIONAL WATER MANAGEMENT PLAN AND
ADOPTING STATUTORY EXEMPTION NO. 2022-030
WHEREAS, the State of California has established an Integrated Regional Water Management grant program pursuant to the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (Water Code Section 79700 et seq.) (also known as “Proposition 1”); and
WHEREAS, a Memorandum of Understanding, which has been signed by the agencies who constitute the Regional Water Management Group for the San Luis Obispo County Region as of the date of this Resolution, designates the San Luis Obispo County Flood Control and Water Conservation District as the lead agency responsible for plan development and adoption but also provides for the adoption of the plan by each member of the Regional Water Management Group; and
WHEREAS, the concepts, direction and approach to water resources management embodied in the State’s Integrated Regional Water Management program guidelines closely match those of the San Luis Obispo County Region; and WHEREAS, previous versions of/updates to the San Luis Obispo County Integrated Regional Water Management Plan were developed and adopted by multiple agencies in the County, in coordination with the San Luis Obispo County Flood Control and Water Conservation District, in 2005, 2007 and 2014 prior to development of the version known as 2019 San Luis Obispo County Integrated Regional Water Management Plan; and WHEREAS, the updates reflected in the 2019 San Luis Obispo County Integrated Regional Water Management Plan are needed in order to effectively and efficiently integrate the region’s water resources management planning objectives and implementation strategies in the following five key areas: Water Supply, Groundwater Monitoring and Management, Flood Management, Ecosystems and Watershed, and Water Resources Management and Communications; and
WHEREAS, similar to prior versions, the 2019 San Luis Obispo County Integrated Regional Water Management Plan has been developed in coordination with the Regional Water Management Group and in accordance with current (2016) State standards; and WHEREAS, the 2019 San Luis Obispo County Integrated Regional Water Management Plan identifies goals, objectives, strategies and projects designed to improve regional water supply reliability, water recycling, water conservation, water quality improvement, stormwater capture and management, flood management, recreation and access,

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wetland enhancement and creation, and environmental and habitat protection and improvement; and
WHEREAS, the 2019 San Luis Obispo County Integrated Regional Water Management Plan is statutorily exempt from California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.) because it involves only a planning study, as defined in Section 15262 of the State CEQA Guidelines.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby adopts the 2019 San Luis Obispo County Integrated Regional Water Management Plan for the San Luis Obispo County Region and the Director of Public Works/City Engineer, or designee, of the City of Pismo Beach is hereby authorized and directed to implement actions consistent with updating the Plan on a five-year cycle as described within the Plan.

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby adopts Statutory Exemption 2022-030 under the provisions of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.).

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 6 th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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

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RESOLUTION NO. R-2022-XXX

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

CALIFORNIA DESIGNATING THE DIRECTOR OF PUBLIC WORKS/CITY

ENGINEER AS THE AUTHORIZED REPRESENTATIVE TO FILE APPLICATIONS AND EXECUTE AGREEMENTS FOR THE 2022 PROPOSITION 1 IRWM

IMPLEMENTATION GRANT PROGRAM
WHEREAS, the State of California has established an Integrated Regional Water Management (IRWM) grant program pursuant the Water Quality, Supply, and Infrastructure Improvement Act of 2014 (also known as Proposition 1); and WHEREAS, the City of Pismo Beach signed onto a Memorandum of Understanding (Exhibit A) which established the City of Pismo Beach as a member of the Regional Water Management Group for the San Luis Obispo County Region, and which also designates the San Luis Obispo County Flood Control and Water Conservation District (the “Flood Control District”) as the lead agency to submit Integrated Regional Water Management grants; and
WHEREAS, the Director of Public Works/City Engineer, or Designee, is especially suited to ensure the grant application materials submitted by and on behalf of the City are prepared in a complete, efficient, and adequate manner; and WHEREAS, the Director of Public Works/City Engineer has the authority to ensure that projects are carried out in full compliance with the applicable permits and agreements; and
WHEREAS, the Director of Public Works/City Engineer submitted the Central Coast Blue project for inclusion in the San Luis Obispo County Region’s 2022 Proposition 1 Round 2 IRWM grant program application; and
WHEREAS, the Central Coast Blue project was recommended by the Regional Water Management Group and the San Luis Obispo County Water Resources Advisory Committee; and
WHEREAS, Exhibit B includes a list of all the local projects endorsed to be in the Region’s application to the California Department of Water Resources; and WHEREAS, in anticipation of the final application submittal, Flood Control District staff has requested that local agencies adopt a resolution verifying support for the project, authorization to proceed with the IRWM grant application, and authorization to enter into reimbursement agreement to fund a share of the Flood Control District’s costs.

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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby:

1. The City of Pismo Beach City Council supports the Central Coast Blue project as described in Exhibit B, and that the application be made to the California Department of Water Resources to obtain a 2022 Proposition 1 Round 2 Integrated Regional Water Management Implementation Grant pursuant to the Water Quality, Supply, and Infrastructure Improvement Act of 2014 in coordination with the Flood Control District and the Regional Water Management Group.

2. The Director of Public Works/City Engineer, or Designee, of the City of Pismo Beach is hereby authorized and directed to prepare the necessary data, conduct investigations, file such application required for grant funding, and to execute a grant agreement (which must first be approved as to form by City of Pismo Beach Legal Counsel) with the San Luis Obispo County Flood Control and Water Conservation District.

3. The Director of Public Works/City Engineer, or Designee, of the City of Pismo Beach is hereby authorized to enter into a reimbursement agreement to pay for Pismo Beach’s share of the Flood Control District application costs 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 6 th day of December 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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

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Memorandum of Understanding Signatories for
San Luis Obispo County Region IRWM Participants
Agency or Organization
San Luis Obispo County Flood Control and Water Conservation District
County of San Luis Obispo
Avila Beach Community Services District
California Men's Colony
Cambria Community Services District
Cayucos Sanitary District
Central Coast Salmon Enhancement
City of Arroyo Grande
City of Grover Beach
City of Morro Bay
City of Paso Robles
City of Pismo Beach
City of San Luis Obispo
Coastal San Luis Resource Conservation District
Estrella-El Pomar-Creston Water District
Heritage Ranch Community Services District
The Land Conservancy of San Luis Obispo County
Los Osos Community Services District
Morro Bay National Estuary Program
Nipomo Community Services District
Oceano Community Services District
Templeton Community Services District
San Miguel Community Services District
San Miguelito Mutual Water Company
San Simeon Community Services District
Shandon-San Juan Water District
South San Luis Obispo County Sanitation District
S&T Mutual Water Company
Upper Salinas - Las Tablas Resource Conservation District

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Attachment 2. Summary of Selected Projects
Project 1: Indirect Potable Reuse
Project Proponent: City of Morro Bay (City)
To develop a more reliable and resilient water supply portfolio, the City is constructing a Water Reclamation Facility (WRF) which incorporates advanced treatment for indirect potable reuse (IPR). Specifically, the IPR component includes injection wells and recycled water pipelines to recharge the Morro groundwater basin (Morro Basin) with advanced purified water. The WRF’s IPR facilities will have the capacity to produce up to 825 acre-feet per year (AFY) of advanced purified recycled water, which will be injected into the Morro Basin. By augmenting recharge in the Morro Basin, the City will protect the basin water quality (from seawater intrusion and nitrate contamination) and be able to extract up to 80 percent of their average water demands or approximately 880 AFY when imported SWP water supplies are limited and/or unavailable.

This project provides the City with a new, reliable and drought resilient water supply source, thereby diversifying the City’s water portfolio and providing the necessary protection against climate change drought impacts, natural disasters and infrastructure failures.

Project 2: Central Coast Blue, Phase 1
Project Proponent: City of Pismo Beach
Central Coast Blue (Project) is a regional, indirect potable reuse project developed in response to recent droughts that highlighted vulnerabilities in the Central Cost Blue Partners’ (cities of Arroyo Grande, Grover Beach, and Pismo Beach) water supply portfolios and the seawater intrusion risks faced by the groundwater basin. The Project will improve the reliability of the community’s water supply portfolio by capturing wastewater flows from the Pismo Beach Wastewater Treatment Plant (WWTP), purifying the water, and injecting it into the Northern Cities Management Area of the Santa Maria Groundwater Basin that is an important component of the water supply portfolios for the Central Coast Blue Partners.

Project 3: Oceano Water Resource Reliability Project
Project Proponent: Oceano Community Services District (OCSD) The Oceano Water Resource Reliability Project replaces non-standard obsolete/aged pipes that are leaking and contributing to water losses. Pipe replacement will support water use and operational efficiency for a State Water Project sub-contractor. The project will also address water reliability by improving system pressures and flows for fires and other emergencies with the installation of new larger pipes.

Continued on next page.

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Project 4: Master Water Report and Information System
Project Proponent: San Luis Obispo County Flood Control & Water Conservation District The Public Works Department, in coordination with the Planning Department, is developing a tool to improve the District’s and County’s approach to the collection, storage, analysis and reporting of data and information needed for water-related planning efforts. This Decision Support Tool will facilitate a comprehensive update to the Master Water Report (MWR). This project would develop the data and information management and reporting tools needed to facilitate this and future updates to the MWR as well as other analysis needs determined in coordination with other County departments.

Project 5: Water Reliability Projects
Project Proponent: San Miguel Community Services District (SMCSD) A District Master Plan was finalized in 2020. Three high priority projects identified including: (1) replace aging and undersized pipelines, (2) replace undersized and poor condition tank with a new 25,000 gallon tank, and (3) construct a new booster pump station to improve inadequate pressure and fire flow. The pipeline replacement project addresses existing 4-inch cast-iron and 3-inch asbestos cement pipelines to be replaced with a new 8-inch PVC pipeline located within the right-of-way. This project will improve deficient pressure and fire flows to approximately 20 residences, reduce operating costs by reducing system losses, and reduce water losses from the existing pipelines in the event that they fail. Only pipeline replacement project would be included in this grant application

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CITY OF PISMO BEACH

NOTICE OF EXEMPTION

To: County Clerk-Recorder’s Office From: City of Pismo Beach County of San Luis Obispo 760 Mattie Road
1055 Monterey Street, Suite D120 Pismo Beach, CA 93449-2056 San Luis Obispo, CA 93408

Project Title / CEQA No.: Integrated Regional Water Management (IRWM) Plan

Project Applicant / Email / Phone: City of Pismo Beach/[email protected]/805-773-4656

Project Location – Address: Citywide

Project Location – City: Pismo Beach

Description of Nature, Purpose and Beneficiaries of Project:

Name of Public Agency Approving Project: City of Pismo Beach

Name of Person or Agency Carrying Out Project: Benjamin A. Fine, Director of Public Works/City Engineer

Exempt Status (check one): ☐ Ministerial (Section 21080(b)(1); 15268) ☐ Declared Emergency (Section 21080(b)(3); 15269(a)) ☐ Emergency Project (Section 21080(b)(4); 15269(b)(c)) ☐ Categorical Exemption. State type and section number: 15303 (a) ☒ Statutory Exemptions. State code number: 15262

Reasons why project is exempt:

Lead Agency Contact Person: Matthew Downing, AICP
Contact: (805) 773-4658
Email: [email protected]

If filed by applicant:
• Attached certified document of exemption finding.
• Has a notice of exemption been filed by the Public Agency approving the project? ☒ yes ☐ no

Signature: Title: Planning Director Date:

☒ Signed by Lead Agency | ☐ Signed by Applicant
The IRWM Plan provides a united framework for sustainable water resource management and a one stop shop for information on water resources and related planning and project efforts.

Exempt regarding studies which identify potential projects and policies for possible future actions subject to future approval.

12.C-20Council Agenda 12-6-2022
Attachment 3
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.D
SUBJECT/TITLE:

FIRE DEPARTMENT SEMI-ANNUAL REPORT
RECOMMENDATION:

Receive Fire Department briefing.

BACKGROUND:

Battalion Chief Paul Lee will deliver a report of Fire Department activities since the last report, which was provided in June 2022.

FISCAL IMPACT:

This report is for informational purposes only and has no fiscal impact.

ALTERNATIVES:

1.Receive briefing and ask questions of staff.

2.Receive briefing and give direction to Fire staff for items to be presented at next briefing.

ATTACHMENTS:

1. December 6, 2022 Fire Department Semi Annual Report
Prepared by: Meeting Date: December 6, 2022
Michelle Pearson, Administrative Assistant
Submitted by: Paul Lee, Battalion Chief
City Manager Approval:

12.D-1Council Agenda 12-6-2022
Packet Page 180

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

Emergency Response

1. Emergency Response by Type

2. Year Incident Review

Lifeguard Program

1. Lifeguard Stats

2. Early Recruitment

3. Lead Lifeguard Academy

Junior Lifeguard Program

1. 49 participants-Session 1, 37 participants-Session 2

2. New Format for 2022 Program

Prevention

1. Special Events

2. Surf Events

3. Sidewalk CPR

4. Weed Abatement Program

Equipment

1. New Engine

2. SCBAs

3. Lifeguard Tower

4. Lifeguard Truck

5. Going Green

Vegetation Management Program (VMP)

1. CAL FIRE Fuels Projects

2. 1000 Hills
December 2022 Fire Department Semi Annual Report
John Owens, Acting Unit Chief

12.D-2Council Agenda 12-6-2022
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3. Long Canyon

4. Lighthouse Unit 2

5. Cave/Bluffs/Ontario Communication Site

Grants

1. Fire Safe Council

2. OHV

3. OTS

12.D-3Council Agenda 12-6-2022
Attachment 1
Packet Page 182

PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.E

SUBJECT/TITLE:

RESIDENTIAL SIDEWALK DEVELOPMENT POLICY

RECOMMENDATION:

Provide staff with direction on potential modifications to the current residential sidewalk development policy as directed on November 1, 2022.

BACKGROUND:

On October 4, 2022, the City Council directed staff to return with an agenda item allowing the Council to provide direction on the City’s policies for requiring residential development project applicants to develop sidewalks as part of their projects.

November 1, 2022 Direction to Staff
The agenda item was brought to the Council on November 1, 2022, and the City Council provided the following unanimous direction to staff:

1. Return during goal-setting for the Fiscal Year 2024 & 2025 budget cycle with a workplan to fund a study to evaluate right-of-way width and sidewalk feasibility for residential streets citywide.

2. Until such time that a study is conducted and/or further Council policy is enacted, implement the following direction:

A. Require the project applicant to develop sidewalk, constructed to City standards, along the street frontage of a parcel for development projects involving:
i. New residential construction requiring a building permit, including tear-down and rebuilds.
ii. The cumulative remodel and/or addition of 50% or more of the floor area of a residential structure.

B. Exclude Accessory Dwelling Units (ADUs) from the definition of new construction, and exclude ADUs when calculating the percentage of remodel or addition work being performed, for purposes of determining whether sidewalk is required.

C. Do not require such sidewalk development where the street width does not permit the development of sidewalk.

The staff report for the November 1, 2022 agenda item is provided as Attachment 1.

Council Agenda 12-6-2022 12.E-1
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November 15, 2022 Direction to Staff
On November 15, 2022, following review and approval of the November 1, 2022 meeting minutes, a majority of the City Council directed staff to return with an agenda item that would allow the Council to consider revising its November 1, 2022 policy direction as it pertains to residential development on streets with no existing sidewalk.

Conclusion and Recommendation
In accordance with the direction of the Council on November 15, 2022, staff recommends that the City Council provide any desired revisions to its November 1, 2022 policy direction regarding the development of sidewalk by residential project applicants.

FISCAL IMPACT:

There is no fiscal impact associated with this policy direction.

ALTERNATIVES:

1.Do not provide further direction. The policy direction given on November 1, 2022, will remain in effect until such time that it is superseded.

ATTACHMENTS:

1. November 1, 2022 Staff Report
Prepared by: Meeting Date: December 6, 2022
Erica Inderlied, City Clerk
Submitted by: James R. Lewis, City Manager
City Manager Approval:

Council Agenda 12-6-2022 12.E-2
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PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #12.C
SUBJECT/TITLE:

RESIDENTIAL SIDEWALK DEVELOPMENT POLICY
RECOMMENDATION:

Provide staff with direction on potential modifications to the current residential sidewalk development policy.

BACKGROUND:

The City Council has been dedicated to the walkability of the City and has demonstrated this commitment with the construction of the Shell Beach Streetscape Multimodal Path, the adoption of the Bicycle and Pedestrian Master Plan, the Ocean Boulevard Coastal Access Improvement Project, the funding of the non-residential Hinds Avenue-to-Ocean View Avenue sidewalk adjacent to the US 101, and through the 2022 Paving Project, currently under construction, which will build a sidewalk under the US 101 Freeway at Spyglass Drive and across the median at Ventana Drive along James Way.

Consistent with a desire to make the community more walkable, staff has required the construction of sidewalks in conjunction with some residential projects in an effort to continue to improve the walkability of the city and to meet one of the City Council’s top goals of ensuring an exceptional quality of life for residents.

Public improvements, including curbs, gutters, sidewalks, streets, and other infrastructure are typically installed by developers when housing tracts are developed. These costs are factored into the selling price of the houses and, therefore, ultimately paid for by the future homeowner. California Streets and Highways Code Section 5610 places the maintenance of sidewalks on the adjacent property owner in residential neighborhoods. It has long been the City’s position that the City does not install residential sidewalks and that it is the homeowner’s responsibility to build missing sidewalks throughout the City when a parcel is developed, redeveloped, or a major modification has been made to an existing house.

The last residential sidewalk constructed by the City was approved on October 7, 2014, in conjunction with the Council’s award of the 2014/15 Paving Project. At that time, the Council reinforced its policy that the City does not install residential sidewalks; however, in the case of Longview Avenue and Wadsworth Avenue it was a “Safe Routes to School” project providing a safer path of travel for Judkins Middle School students, and not a residential sidewalk project.

The Council has also made clear that it is the City’s position that encroachments into the right-of-way should be limited, and reinforced this position at the September 7, 2021, Council meeting regarding a project on Palomar Avenue that changed scope through construction.

12.C-1Council Agenda 11-1-2022
November 1, 2022 Staff Report
Council Agenda 12-6-2022 12.E-3
Attachment 1
Packet Page 185

Since the September 2021 Council meeting, staff has been requiring property owners to install sidewalks in all parts of the city, including Pismo Heights, on dead end streets, in Shell Beach where the right-of-way is limited and there are very few existing sidewalks, and all other residential neighborhoods.

Most recently, at the October 4, 2022 City Council meeting, the Council inquired about a landscaping project that was thought to have been required to install a sidewalk. Staff concluded that no such condition was required on a landscaping project in Shell Beach or any other part of the city. Instead, staff was attempting to inform the property owner of the limitation of placing a garden wall in the right-of-way. However, for this type of project, staff would require appropriate drainage improvements, which may include curb and gutter and/or a concrete drainage swale depending on the existing conditions and neighborhood characteristics, if those drainage improvements were not existing.

Currently, staff has been requiring sidewalks as a condition of approval for development permits in the following conditions:

Relocation of existing curb and gutter
Relocation of existing driveway approach
Substantial reconfiguration of an existing home
Addition and minor reconfiguration of an existing home
Substantial addition of an existing home
While sidewalks are generally being required in the above circumstances, staff also understands that there are certain streets in the city that are not wide enough for sidewalks to be installed or that may have other conditions where sidewalks would not be advisable, and staff ultimately bases its final decision on the characteristics of the street.

Staff has reached out to other agencies through the League of California Cities and has compiled the following list of items that trigger the requirement for the installation of sidewalks in other agencies throughout the state:

Addition of any room other than a bathroom
Construction of any detached structure larger than 120 square feet Conversion of 25% or more unconditioned space (garage, shed, etc.) to conditioned space
Addition of 50% or more to a structure that is 999 square feet or less or the addition of 500 square feet to structures 1,000 square feet or larger Addition of 40% or more of the existing habitable square footage or 500 square feet, whichever is greater
Any addition of 100 square feet or more
Significant remodel modifying 35% or more of a structure, whether or not square footage is added
Remodel where alterations remove or modify 50% or more of exterior walls or remove or modify more than 50% of the roof framing

12.C-2Council Agenda 11-1-2022
November 1, 2022 Staff Report
Council Agenda 12-6-2022 12.E-4
Attachment 1
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Conclusion and Recommendation
The requirement to install sidewalks does place a greater financial burden on property owners and it does create several pockets of isolated sidewalks in neighborhoods.

Nonetheless, the installation of sidewalks enhances neighborhoods and will, over time, make them more walkable. Staff understands that there is some concern being raised about this policy in the community and seeks direction from Council on the City’s policy for requiring the construction of sidewalks in existing residential neighborhoods.

FISCAL IMPACT:

There is no direct fiscal impact associated with this report, however, requiring developers to install sidewalks will keep the financial responsibility of sidewalk installation in neighborhoods with the homeowner.

ALTERNATIVES:

1. Do not provide direction at this time.

ATTACHMENTS:

None
Submitted by: Meeting Date: November 1, 2022
Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:

12.C-3Council Agenda 11-1-2022
November 1, 2022 Staff Report
Council Agenda 12-6-2022 12.E-5
Attachment 1
Packet Page 187