Agenda packet — Pismo Beach City Council, July 18, 2023 (part 1 of 2)

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AGENDA
Pismo Beach City Council
Tuesday, July 18, 2023
Time Meeting Type Physical Location Virtual Participation Option 4:30 p.m. Closed Session 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:

These meetings are being conducted in a hybrid format with both in-person and virtual public participation. Ways to watch these meetings 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 Council 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 7-18-2023

Pismo Beach City Council Agenda July 18, 2023

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Special Closed Session—4:30 p.m.

City Hall, 760 Mattie Road, Pismo Beach, CA 93449
Council Member Inman to participate via teleconference from:
1400 Old Spanish Trail, Houston, TX 77054
In accordance with CA Government Code Section 54953(b), this teleconferencing location shall be accessible to the public, this agenda shall be posted at the location, and a public comment period shall be provided.

CALL TO ORDER: Mayor Waage

1.ROLL CALL:

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

2.PUBLIC COMMENT PERIOD – Council Chamber
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 Real Property Negotiators (Government Code §54956.8) Property: APN: 005-076-027, 350 Pismo Avenue, Pismo Beach Agency Negotiator: Jorge Garcia
Negotiating Parties: Joseph Wolosz
Under Negotiation: Price and Terms of Payment
Item 3.B: Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code §54956.9: One potential case
Item 3.C: Conference with Legal Counsel – Anticipated Litigation Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code §54956.9: One potential case

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, July 18, 2023 Council Chamber, City Hall Council Agenda 7-18-2023

Pismo Beach City Council Agenda July 18, 2023

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Regular Meeting—5:30 p.m.

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

Council Member Inman to participate via teleconference from:
1400 Old Spanish Trail, Houston, TX 77054
In accordance with CA Government Code Section 54953(b), this teleconferencing location shall be accessible to the public, this agenda shall be posted at the location, and a public comment period shall be provided.

CALL TO ORDER: Mayor Waage

1. ROLL CALL:

Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, 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 (Newton/Reiss)

2. California Joint Powers Insurance Authority (Reiss)

3. CAPSLO (Reiss)

4. Central Coast Blue Regional Recycled Water Authority (Waage)

5. Central Coast Community Energy Policy Board (Mayor)

6. Chapman Estate Foundation (Liaison) (Reiss)

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

8. Conference and Visitors Bureau / LBID Board (Liaison) (Inman)

9. Friends of Price House Liaison (Waage)

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

11. Homeless Services Oversight Council (Guthrie/Reiss)

12. Integrated Waste Management Authority (Newton/Inman)

13. Mobile Home Rent Stabilization Subcommittee (Inman/Reiss)

14. REACH (Newton)

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

16. Shell Beach Improvement Group Liaison (Inman)

17. SLOCOG (Waage/Reiss)

18. South County Chambers Gov’t Affairs (Guthrie/Inman)

19. Visit SLO CAL Advisory Committee (Inman)

20. Water Resources Advisory Committee, SLO (Guthrie/Inman)

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

Council Agenda 7-18-2023

Pismo Beach City Council Agenda July 18, 2023

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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 February 3, 2023 Special Workshop;

2. Adopt Minutes of the June 5, 2023 Special Joint Meeting;

3. Adopt Minutes of the June 20, 2023 Closed and Regular Meeting.

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

1. Approve the Summary of Payroll Register for June 4, 2023;

2. Approve the Register of Demands for June 2, 2023 and June 9, 2023.

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

No action recommended; for information only.

Item 9.D: Paid Parking Quarterly Update–Fourth Quarter of Fiscal Year 2023 (Downing)
Recommendation:

No action recommended; for information only.

Item 9.E: Amendment #8 to The 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 #8 to the existing Professional Services Agreement with Rincon Consultants, Inc. for Preparation of Environmental Documents for Central Coast Blue in the amount of $10,308.

Item 9.F: Notice of Completion for the North Shell Beach Road Storm Drain Repair Project (Fine)
Recommendation:

1. Accept the North Shell Beach Road Storm Drain Repair Project as complete;

2. Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the Project.

10. ITEMS PULLED FROM CONSENT CALENDAR

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

None.

Council Agenda 7-18-2023

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12. BUSINESS ITEMS - May be reordered and heard prior to Public Hearings Item 12.A: Regional Housing & Infrastructure Plan (Downing) Recommendation:

1. Discuss and consider support for the Regional Housing and Infrastructure Plan, as a recommitment to the 2020 San Luis Obispo Countywide Regional Compact; and

2. Direct staff to continue discussing ways to utilize and implement the Regional Housing and Infrastructure Plan.

Item 12.B: Agreement with F&H Construction for the Design-Build Construction of a Public Safety Facility (Department Heads)
Recommendation:

Adopt a Resolution authorizing the City Manager to enter into an agreement with F&H Construction in the amount of $42,366,450 for construction of a Public Safety Facility.

Item 12.C: Agreement with CLAD Consulting, Inc. for Project Management of Relocation of Emergency Services Related to the Public Safety Facility (Fine)

Recommendation:

Adopt a Resolution authorizing the City Manager to enter into a Professional Services Agreement with CLAD Consulting, Inc. in the amount of $63,250 for Project Management, Coordination, Construction Management and Construction Inspection Services for emergency services temporary facilities.

Item 12.D: Award of Contracts to Brough Construction, Inc. and CLAD Consulting, Inc. for the Palisades and Chumash Parks Playground Project (Fine) Recommendation:

Adopt a Resolution authorizing the City Manager to:

1. Execute a contract with Brough Construction, Inc. for construction of the Palisades and Chumash Parks Playground project in the amount of $1,445,380; and

2. Enter into a Professional Services Agreement with CLAD Consulting, Inc. in the amount of $129,248 for Construction Management, Inspection & Administration Services.

Item 12.E: Direction on Short-Term Rental Ordinance Update (Downing) Recommendation:

Provide direction to staff regarding desired modifications to the City’s short- term rental regulations.

Item 12.F: Emergency Fire Suppression Water Service To Coastal Christian School At 1005 North Oak Park Boulevard (Fine)
Recommendation:

Discuss Coastal Christian School’s request for a direct connection to the City’s water supply infrastructure to supply emergency fire suppression to the Council Agenda 7-18-2023

Pismo Beach City Council Agenda July 18, 2023

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school’s Multipurpose Building’s fire suppression sprinklers only, and provide direction to staff on a modification to the existing agreement between the City and the school, if desired.

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

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
Regular Meeting 5:30 p.m. Tuesday, August 1, 2023 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 July 18, 2023 meeting(s) of the Pismo Beach City Council was posted on July 13, 2023, 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 7-18-2023

PISMO BEACH COUNCIL STAFF REPORT
Agenda Item #9.A
` SUBJECT/TITLE:

ADOPTION OF MEETING MINUTES
RECOMMENDATION:

1.Adopt Minutes of the February 3, 2023 Special Workshop;

2.Adopt Minutes of the June 5, 2023 Special Joint Meeting;

3.Adopt Minutes of the June 20, 2023 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 February 3, 2023 Special Workshop

2.Draft Minutes of the June 5, 2023 Special Joint Meeting

3.Draft Minutes of the June 20, 2023 Closed and Regular Meeting Meeting Date: July 18, 2023 Submitted by: Erica Inderlied, City Clerk Interim City Manager Approval:

9.A-1Council Agenda 7-18-2023
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DRAFT MINUTES
Pismo Beach City Council
Tuesday, February 3, 2023
Special Goal-Setting Workshop—10:00 a.m.
100 Ocean View Avenue, Pismo Beach, CA 93449
The City Council of the City of Pismo Beach met this date in a special session with Mayor Waage presiding.

CALL TO ORDER: 10:00 a.m.

TELECONFERENCE PROCEDURE
Item: Notification by a Legislative Body Member of the Need for Teleconference Meeting Attendance for Just Cause Under Assembly Bill 2449 Mayor Pro Tem Reiss notified the City Council of the need to attend the meeting by teleconference under the provisions of Assembly Billy 2449 for just cause; gave a brief general description of the circumstances giving rise to the need to attend virtually; and disclosed that there were no other adults present at the remote location.

Action: No action.

1.ROLL CALL:

Present: Absent:

Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss (via teleconference)
Council Member Marcia Guthrie
Council Member Stacy Inman
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
Jeff Smith, Chief of Police

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2.PUBLIC COMMENT PERIOD
Call for public comment:

The following commented:

Jeannie Nix, Friends of the Price House
LaDean Talcott, Friends of the Price House
Dave Watson, Friends of the Price House
Supplemental material submitted into the record.

Krista Jeffries, SLO YIMBY

3.AGENDA ITEMS
Item 3.A: Workshop Overview / Governance Practices of Effective Councils (Waage/Lewis)
Recommendation: Receive an overview by the City Manager of Workshop purpose and goals; Discuss governance practices of effective Councils/roles of governing body members.

Presenting staff:

James R. Lewis, City Manager
Action: No action.

Item 3.B: Review of Code of Ethics / Council Norms (Waage Newton) Recommendation: Conduct the annual review of the Code of Ethics for legislative body members; receive a report-out from the Code of Ethics Review Subcommittee; provide direction to staff on any desired updates to the policy.

Presenting staff:

Erica Inderlied, City Clerk
James R. Lewis, City Manager
Action: There was consensus among the Council to:

1.Make no changes to the Code of Ethics at this time.

2.Receive a report at a future meeting from the Code of Ethics Review Subcommittee regarding its findings.

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In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

Item 3.C: Review and Discussion of Current Goals / Financial Overview (Lewis/Feeser)

Recommendation: Review current Major City Goals and Other Important Objectives for Fiscal Year 2022 & 2023; Receive an overview from staff on the City's fiscal condition.

Presenting staff:

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

Action: No action.

Item 3.D: Review and Direction on Current Capital Projects (Lewis/Fine)

Recommendation: Receive an overview from staff on the City's current Capital Projects, including timing, priorities, and funding gaps; Provide direction on priorities if desired.

Presenting staff:

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

Call for public comment: No comment.

Action: Consensus to provide the following direction to staff:

1. In future staff reports relating to capital projects, provide information about how approving a particular project might impact other projects in progress, in terms of staff workload or completion timeframes;

2. Postpone the Wadsworth Avenue underpass lighting project;

3. Bring forward an agenda item allowing the Parks, Recreation and Beautification Commission to consider and render a recommendation to the City Council on an appropriate location for the workout equipment originally proposed as part of the South Palisades Workout/Trail project;

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4.Bring forward an agenda item allowing the appropriate advisory bodies to consider and render a recommendation to the City Council on the potential location and feasibility of a dog park project;

5.Bring forward an agenda item allowing the Parking Advisory Committee to consider and render a recommendation to the City Council on a potential reconfiguration of Price Street parking to incorporate “double- loaded” center diagonal parking.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0
Call for public comment:

Shauna Wills commented.

Krista Jeffries, SLO YIMBY, commented.

Item 3.E: Establish Council Goals for Fiscal Years 2024 & 2025 (Lewis) Recommendation: Staff to facilitate a goal-setting session to identify Major City Goals and Other Important Objectives for the Fiscal Year 2024 & 2025 Budget & Goals Cycle, considering input from the community, Council Member priorities, and the City's fiscal condition.

Presenting staff:

Matt Downing, Community Development Director
Benjamin Fine, Public Works Director/City Engineer
Jorge Garcia, Assistant City Manager
James R. Lewis, City Manager
Jeff Smith, Chief of Police
Call for public comment:

The following commented:

Marilee Hyman
John Stocksdale
Shauna Wills

9.A-5Council Agenda 7-18-2023
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Action: Consensus to adopt the following goals for the Fiscal Year 2024 & Fiscal Year 2025 budget cycle:

1. Maintain a Focus on Public Safety

Goal statement: Focus on providing resources toward ensuring the safety of the community.

Priorities:
• Build a state-of-the-art Public Safety Facility and enhance the Police presence in the downtown area
• Prioritize the recruitment and retention of Police personnel • Support technology investments that enhance public safety

2. Water Supply, Conservation and Central Coast Blue

Goal statement: Sustain the City's water supply by completing Central Coast Blue and pursuing access to new, high-quality and reliable water sources; promoting conservation; and conducting public outreach and education.

Priorities:
• Implement Central Coast Blue, working with partner agencies • Promote water conservation
• Pursue additional water supplies and options for storage • Conduct public outreach and education

3. Community Character, Beautification, and Quality of Life for Residents

Goal statement: Build on the strength of our local community to preserve the City’s “Classic California” charm and ensure an exceptional quality of life for residents.

Priorities:
• Invest in neighborhoods including road, sidewalk, and park improvements
• Continue investments in sports courts and other amenities, including facilitating evening use
• Complete updates to the Local Coastal Plan, General Plan, and Zoning Code
• Implement community beautification strategies
• Deliver exceptional services to the public
• Invest in coastal access and bluff repair

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4. Traffic, Circulation and Parking

Goal statement: Improve traffic flow and parking assets to meet the needs of current and future residents and visitors.

Priorities:
• Continue to work on downtown parking solutions, including acquiring additional parking assets, and adopt strategies outlined in the Parking Management Plan
• Complete and implement the Bicycle and Pedestrian Master Plan, and maintain existing infrastructure
• Complete the acquisition of Dolliver Street from the state and make circulation improvements in accordance with the General Plan Circulation Element

5. Housing and Homelessness

Goal statement: Support regional efforts to address housing needs and homelessness.

Priorities:
• Complete affordable housing projects
• Support and participate in regional efforts in a collaborative manner • Invest in housing and homelessness assistance projects where feasible

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

Action: Consensus to direct staff to return with the appropriate agenda item(s) necessary to implement an “over-hiring” policy for Police Department positions, to permit actual Police Department staffing levels to correspond with the department’s approved number of staffed positions.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

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Item 3.F: Discussion of Various Policies/Programs of Interest

Recommendation: Provide direction to staff on topics of interest to be returned for consideration as part of future meeting agendas if appropriate:

1. Advisory Body Member Appointment Process for 2023 (Inderlied)

2. Appeals Process for Planning Commission Decisions (Newton)

3. Clarification of Sidewalk Development Policies (Newton)

4. Amendments to Traffic Calming Policy (Newton)

5. Discussion of Future Uses of Chapman Estate (Inman)

Presenting staff:

Matt Downing, Community Development Director
Benjamin Fine, Public Works Director/City Engineer
David Fleishman, City Attorney
Erica Inderlied, City Clerk
Paul Lee, Battalion Chief
James R. Lewis, City Manager

Call for public comment:

Marilee Hyman commented.

Advisory Body Member Appointment Process for 2023

Action: Provide the following direction to staff:

1. Conduct 15-minute interviews of Advisory Body applicants for the 2023 application cycle;

2. Give incumbent applicants the option as to whether or not to appear for an interview.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

Appeals Process for Planning Commission Decisions

Action: Consensus to provide the following direction to staff:

1. Add language to the Appeal of Planning Commission Decision form warning prospective appellants that lack of specificity in describing the basis for an appeal may result in dismissal of the appeal at the outset of the hearing;

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2. Explore the feasibility of conducting a sufficiency screening process for appeals of Planning Commission decisions, to determine whether the basis for the appeal is specific enough to warrant scheduling the appeal for full hearing before the City Council.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

Clarification of Sidewalk Development Policies

Action: Consensus to direct staff to return with a “white paper” analyzing the feasibility of sidewalk development in select areas of the city where street width or topography may present challenges, in order to allow the Council to determine whether to direct staff to proceed with a full-scale study of the location of street rights-of-way throughout the city and creation of a potential in-lieu fee applicable to those properties located in areas where sidewalk development is not feasible.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

Amendments to Traffic Calming Policy

Action: Direct staff to increase the level of Police Department speed “sting” operations where feasible in order to help limit excessive speed in residential areas.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

Discussion of Future Uses of Chapman Estate

Action: No action.

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4. CITY COUNCIL COMMENTS AND REQUESTS

Consensus to direct that the Traffic Safety Committee discuss whether additional roadway lighting is warranted on Shell Beach Road.

5. ADJOURNMENT

At 3:36 p.m.

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk

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ACTION MINUTES

ARROYO GRANDE CITY COUNCIL

GROVER BEACH CITY COUNCIL

PISMO BEACH CITY COUNCIL

CENTRAL COAST BLUE REGIONAL RECYCLED WATER AUTHORITY BOARD

SPECIAL JOINT MEETING

MONDAY, JUNE 5, 2023, 6:00 PM

SOUTH COUNTY REGIONAL CENTER
800 W. BRANCH STREET, ARROYO GRANDE, CALIFORNIA

1. CALL TO ORDER
Mayor/Chair Waage called the meeting to order at 6:05 p.m.

2. PLEDGE OF ALLEGIANCE
Mayor Pro Tem/Vice-Chair Ray Russom led the pledge of allegiance.

TELECONFERENCE PROCEDURE

Item: Notification by a Legislative Body Member of the Need for Teleconference Meeting Attendance for Just Cause Under Assembly Bill 2449

Council Member Clint Weirick notified the Councils and Board of the need to attend the meeting by teleconference under the provisions of Assembly Billy 2449 for just cause; gave a brief general description of the circumstances giving rise to the need to attend virtually; and disclosed that there were no other adults present at the remote location.

Action: No action was taken.

3. ROLL CALL

Arroyo Grande: Council Members Lan George, Jim Guthrie, Kate Secrest, Mayor Pro Tem Kristen Barneich, and Mayor Caren Ray Russom were present.

Grover Beach: Council Members Daniel Rushing, Clint Weirick (via teleconference), Zach Zimmerman, Mayor Pro Tem Robert Robert, and Mayor Karen Bright were present.

Pismo Beach: Council Members Marcia Guthrie, Stacy Inman, Scott Newton, and Mayor Ed Waage were present. Mayor Pro Tem Mary Ann Reiss was absent.

CCB RRWA: Board Member Karen Bright, Vice-Chair Caren Ray Russom, and Chair Ed Waage were present. 9.A-11Council Agenda 7-18-2023
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Staff Present: City Managers Whitney McDonald, Matthew Bronson, Jorge Garcia, and James R. Lewis; General Manager Geoff English. City Clerks Jessica Matson, Wendi Sims, and Erica Inderlied; Interim Secretary/Clerk of the Board Kelly Wetmore.

4.WELCOME AND MEETING ORIENTATION
Mayor/Chair Waage provided welcoming comments.

5.CENTRAL COAST BLUE REGIONAL RECYCLED WATER AUTHORITY STATUS

REPORT AND PROJECT UPDATE
Recommendation: Receive update.

Presenting Staff: General Manager English
Guest Presenters:

Justin Pickard, Water Systems Consulting
Matthew Keeling, California Central Coast Regional Water Quality Control Board Executive Officer
Public Comment:

Chair Waage called for public comment. The following members of the public provided comment:
•Jeff Edwards
•Julie Tacker
Action: Received update. No action.

6.LOCAL HIRING ALTERNATIVES FOR CENTRAL COAST BLUE CONSTRUCTION

CONTRACTS
Recommendation: Receive a report on alternatives and considerations to advance local hiring for construction of the Central Coast Blue Project.

Presenting Staff: General Manager English
Guest Presenters:

Justin Pickard, Water Systems Consulting
Joshua Medrano, Tri-Counties Building and Construction Trades Council Eric Christen, Coalition for Fair Employment in Construction Public Comment:

Mayor/Chair Waage called for public comment. The following members of the public provided comment:
•Kurt Markuson
•Devin Light
•Dale Cummings
•Eric Hanuman
•Aidan Basinger
•John Metcalf
•Kyle Cushman
•Mark Simonin
•Manley McNinch

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•Beau Dickinson
•Les Cushman
•Lee Cushman
•Rudy Bachmann
•Autumn Brown
•Rob Down
•Richard V.
•Mitchell Bell
•Jessie Wills
•Sergio Miranda
•Trevor Ranlett
Action: No action was taken.

7.PUBLIC COMMENTS
Mayor/Chair Waage called for public comment on items listed on the Agenda. There were no comments.

8.CLOSING COUNCIL/BOARD COMMENTS
General Manager English provided closing comments.

Council/Board Members provided comments regarding Community Workforce Agreements.

9.ADJOURNMENT
Mayor/Chair Waage adjourned the meeting at 8:22 p.m.
________________________ ________________________
Caren Ray Russom Karen Bright
Mayor, Arroyo Grande Mayor, Grover Beach
ATTEST: ATTEST:
________________________ ________________________
Jessica Matson Wendi Sims,
City Clerk, Arroyo Grande City Clerk, Grover Beach ________________________ ________________________
Ed Waage Ed Waage
Mayor, Pismo Beach Chair, CCBRRWA
ATTEST: ATTEST:
________________________ ________________________
Erica Inderlied Kelly Wetmore
City Clerk, Pismo Beach Interim Clerk, CCBRRWA

9.A-13Council Agenda 7-18-2023
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DRAFT MINUTES
Pismo Beach City Council
Tuesday, June 20, 2023
Special Closed Session—4:30 p.m.

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 4:34 p.m.

1.ROLL CALL:

Present: Absent:

Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Staff Present:

David Fleishman, City Attorney
Jorge Garcia, Interim City Manager

2.PUBLIC COMMENT PERIOD

Call for public comment: The following commented:

April Dury
Julie Tacker

3.ANNOUNCEMENT OF CLOSED SESSION ITEMS
City Attorney Fleishman announced the Closed Session items listed below.

Item 3.A: Conference with Legal Counsel – Existing Litigation (Paragraph (1) of subdivision (d) of Government Code §54956.9) Name of Case: The City of Pismo Beach v. Tetra Tech, Inc.

San Luis Obispo Superior Court Case No. 22CV-0520
Item 3.B: Public Employee Performance Evaluation
Pursuant to Government Code Section 54957(b)
Title: City Attorney

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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 5:27 p.m., to the 5:30 p.m. Regular Meeting.

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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: 5:32 p.m.

1. ROLL CALL:

Present: Absent:

Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton

Staff Present:

Matt Downing, Community Development Director
Benjamin Fine, Public Works Director/City Engineer
David Fleishman, City Attorney
Jorge Garcia, Interim City Manager
Dan Herlihy, Police Commander
Erica Inderlied, City Clerk
Gordon Jackson, Director of Tourism and Events
Paul Lee, Battalion Chief
Jason Takagi, Information Technology Manager
Other staff present as noted below

2. PLEDGE OF ALLEGIANCE

Mayor Waage led the Pledge of Allegiance.

3. ACCEPTANCE OF AGENDA

No requests to reorder the agenda.

4. PRESENTATIONS

Item 4.A: Proclamation: Parks Make Life Better! Month

Presented to Colleen Cashmore-Ghiglia, Recreation Manager, and Ron Rodriguez, Parks, Recreation and Beautification Commission Chair.

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5. PUBLIC COMMENT PERIOD

Call for public comment:

Dave Daguerre commented.

6. CITY MANAGER’S REPORT

Interim City Manager Garcia 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 4:30 p.m. Closed Session.

8. COUNCIL COMMITTEE REPORTS

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

Council Member Inman:

Shell Beach Improvement Group (SBIG)

Council Member Newton:

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

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

Mayor Waage:

Central Coast Blue Regional Recycled Water Authority.

League of California Cities Coastal Cities Group, Sea Level Rise Working Group.

San Luis Obispo County Community Fire Safe Council.

9. CONSENT CALENDAR

Call for public comment: No comment.

Action: Adopt Consent Calendar.

Motion: Guthrie
Second: Newton

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

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

Absent: 0
Abstain: 0
Recused: 0

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

Recommendation:

1. Adopt Minutes of the May 26, 2023 Closed Session;

2. Adopt Minutes of the June 6, 2023 Closed and Regular Meeting.

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

Recommendation:

1. Approve the Summary of Payroll Register for May 21, 2023.

2. Approve the Register of Demands for May 19, 2023 and May 26, 2023.

Item 9.C: Department Activity Reports for May 2023 (All)

Recommendation:

Receive reports as information only.

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

Recommendation:

No action required; information only.

Item 9.E: Update on January 9, 2023 and January 12, 2017 Emergency Proclamations (Inderlied)

Recommendation:

No action recommended; for information only.

Item 9.F: Amendment #1 to the Existing Agreement with Achievement House for Litter Removal Services (Fine)

Recommendation:

Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Achievement House, Inc. for litter removal services from July 1, 2023 through June 30, 2025 in the amount of $164,509.20.

Legislative Record: Resolution R-2023-044 adopted.

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Item 9.G: Amendment #1 to the Agreement with Pavement Engineering, Inc. for Engineering Services During Construction Of The 2022 Paving Project (Fine)

Recommendation:

Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Pavement Engineering, Inc. in the amount of $156,030.50 for Engineering Services During Construction of the 2022 Paving Project.

Legislative Record: Resolution R-2023-045 adopted.

Item 9.H: Authorization of a Local Coastal Program Local Assistance Grant Application to the California Coastal Commission
(Downing)

Recommendation:

Adopt a Resolution authorizing the submission of a grant application for, and receipt of, up to $500,000 in funding to assist in updating the City’s Local Coastal Program from the California Coastal Commission.

Legislative Record: Resolution R-2023-046 adopted.

10. ITEMS PULLED FROM CONSENT

None.

12. BUSINESS ITEMS

This item was reordered.

Item 12.A: Public Safety Facility Façade Option (Garcia)

Recommendation: Provide direction to staff on the preferred façade option for the fire station.

Presenting staff:

Jorge Garcia, Interim City Manager

Supplemental material submitted into the record.

Call for public comment: No comment.

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Action: Consensus among the Council to direct staff to pursue façade Option A, modified to incorporate the fire apparatus bays as depicted in Option C, as shown in staff’s presentation.

In support: 5 Guthrie, Inman, Newton, Reiss, Waage
In opposition: 0

Absent: 0
Abstain: 0
Recused: 0

11. PUBLIC HEARINGS

Item 11.A: Protest Hearing for Declaration of Properties as Non-Compliant for Weed and Rubbish Abatement (Lee)

Recommendation: Conduct a public hearing to hear protests from property owners whose properties have been identified as non-compliant for weed abatement.

Presenting staff:

Jorge Garcia, Interim City Manager
Paul Lee, Battalion Chief

Call for public comment: No comment.

Action: No action.

Item 11.B: Appeal of the Planning Commission Denial of Project No. P22-000004, a Request for a Coastal Development Permit and Variance to Develop a Rainwater Collection and Retention System for an Existing Residence. Location – 3990 Shell Beach Road. The Project is within the Coastal Zone and is Not Appealable to the Coastal Commission. (Downing)

Council Member Inman announced a disqualifying conflict of interest relating to participation as a Planning Commissioner in prior legislative action on the subject project, and left the dais.

Recommendation: Adopt a Resolution denying the appeal and upholding the Planning Commission denial of Project No. P22-000004 and making a determination of exemption under CEQA. Location – 3990 Shell Beach Road. APN 010-154-037.

Presenting staff:

Matt Downing, Community Development Director
David Fleishman, City Attorney
Jorge Garcia, Interim City Manager

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Call for public comment:

The following commented:

Paul Beard, Applicant Representative
Andrew Grow, Applicant
John Steinbeck
Paul Beard, Applicant Representative

Action: Adopt a Resolution denying the appeal and upholding the Planning Commission denial of Project No. P22-000004 and making a determination of exemption under CEQA. Location – 3990 Shell Beach Road. APN 010- 154-037.

Motion: Reiss
Second: Guthrie

Vote: The motion passed on the following vote:

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

Absent: 0
Abstain: 0
Recused: 1 Inman

Legislative Record: Resolution R-2023-047 adopted.

Council Member Inman returned to the dais.

12. BUSINESS ITEMS

Item 12.A: Public Safety Facility Façade Option (Garcia)

This item was reordered and heard prior to Item 11.A.

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

Recommendation: Receive Fire Department briefing.

Presenting staff:

Jorge Garcia, Interim City Manager
Paul Lee, Battalion Chief

Call for public comment: No comment.

Action: No action.

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Item 12.C: Pier Concession License Agreement Extensions (Jackson) Recommendation:

Direct staff to:

1.Execute an extension of the existing License Agreement with Sheldon’s Bait Shack for operation of the Pier bait shack;

2.Execute an extension of the existing License Agreement with Rib Line by the Beach LLC for operation of the Sunsets at the Pier concession stand.

Presenting staff:

Matt Downing, Community Development Director
Jorge Garcia, Interim City Manager
Gordon Jackson, Director of Tourism and Events
Call for public comment:

Brian Appiano commented.

Action: Direct staff to:

1.Execute a two-year extension of the existing License Agreement with Sheldon’s Bait Shack for operation of the Pier bait shack;

2.Execute a two-year extension of the existing License Agreement with Rib Line by the Beach LLC for operation of the Sunsets at the Pier concession stand.

Motion: Newton
Second: Reiss
Vote: The motion passed on the following vote:

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

Absent: 0
Abstain: 0
Recused: 0

13.CITY COUNCIL COMMENTS AND REQUESTS
No requests.

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14. ADJOURNMENT

At 7:05 p.m.

APPROVED: ATTEST:

________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk

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

PAYROLL REGISTER AND REGISTER OF DEMANDS
RECOMMENDATION:

1. Approve the Summary of Payroll Register for June 4, 2023.

2. Approve the Register of Demands for June 2, 2023 and June 9, 2023.

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
Meeting Date: July 18, 2023 Submitted by:

Nadia Feeser, Administrative Services Director / City Treasurer Interim City Manager Approval:

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FOR PERIOD ENDING 06/04/23
CHECKS DATED 06/09/23
PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 556979‐556984 6
ACH 132

EARNINGS
REGULAR 368,668.82
HOLIDAY 4,811.29
OVERTIME (Includes Comp Time Payouts)34,217.77
Administration
Building
Conference & Visitors Bureau
Police Department 22,621.66
Parking
Engineering
Fire 225.09
Recreation
Public Works 6,713.37
Water 2,378.03
Wastewater 2,279.62
Motor Vehicles
Subtotal‐Overtime 34,217.77$
SALARY ADJUSTMENTS ‐
TRAINING / UNIFORM ALLOWANCE 15,750.00
OTHER EARNINGS 17,188.81
$440,636.69
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX 44,511.18
FICA & MEDICARE 33,676.04
STATE INCOME TAX 16,271.11
STATE DISABILITY INSURANCE 3,799.40
GARNISHMENTS 584.76
HEALTH 2,078.03
SUPPLEMENTAL DISABILITY 1,587.60
SECTION 125 2,825.32
PERS 33,207.46
DEFERRED COMPENSATION 11,291.30
ADDITIONAL LIFE INSURANCE 301.92
UNION DUES 2,378.32
PISMO ATHLETIC CLUB 195.00
OTHER
NET PAYROLL $287,929.25
DIRECT DEPOSIT DEDUCTION 282,378.84
NET PAYROLL AFTER ACH DEPOSIT 5,550.41
SUMMARY PAYROLL REGISTER

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City of Pismo Beach
Final Disbursement List Check Date 06/02/2023
US BANK
ACH/ Vendor Check Check
Check# Number Payee Date Amount Description
126146 14544 Jack Armstrong 06/02/2023 16.08$ Reimb: Maintenance Supplies 126147 10818 Bosch Landscape 06/02/2023 1,700.00 Price House Mowing Services 126148 14578 Shelby Bowen 06/02/2023 120.00 Instructor: Fitness Just Do Something 5/16 ‐ 6/1/23 #11109 126149 13591 Ryan Bullock 06/02/2023 394.89 Mileage/M&IE: Waterwise PRO 5/15 ‐ 5/16/23 126150 11757 City of Pismo Beach 06/02/2023 484.75 Final Bill ‐ PG&E Yard/Bello 4/10 ‐ 4/20/23 126151 10667 Complete Paperless Solutions, LLC 06/02/2023 735.70 Laserfiche License 126152 14217 Deltina Coffee Roasters 06/02/2023 62.50 Coffee 126153 12123 Farm Supply 06/02/2023 15.40 Maintenance Supplies 126154 UB*01002 MICHAEL & SHELLEY GIBSON 06/02/2023 275.00 Refund: UB Overpayment on Acct. #015713 126156 11828 Gordon Jackson 06/02/2023 96.19 Uber Reimb: IPW 5/21 ‐ 5/25/23 126157 12096 Lee Wilson Electric Co Inc 06/02/2023 345.00 Signal Light Maintenance ‐ April 2023 126158 10097 Miners Hardware 06/02/2023 64.72 Maintenance Supplies 126159 10039 New Times 06/02/2023 108.00 Legal Ad 5/18/23 & 5/25/18 ‐ Palisades and Chumash RFP 126160 14591 Bernadette Pennetta‐Simpson 06/02/2023 1,223.44 July 4th Beverages 126161 12335 Procare Janitorial Supply Inc 06/02/2023 1,655.44 Janitorial Supplies 126162 14593 Nina Reinacher 06/02/2023 700.00 Instructor: Beginning Guitar 4/18 ‐ 6/6/23 #11201 126163 12171 State Water Resources Control Board 06/02/2023 58,125.64 CWSRF C‐06‐8016‐110 C#D1501027 Five Cities LS 126164 14299 Natalia Stilleson 06/02/2023 27.00 Translation Services 126165 12629 Tetra Tech Inc 06/02/2023 280.00 Map Checking 126166 12461 TJA Advertising 06/02/2023 275,253.85 CVB & LBID Advertising and Promotion Services April 2023 126167 14594 Toucan Terrace Section 1 Homeowners Association 06/02/2023 250.00 Neighborhood Event Deposit Check ‐ Toucan Terrace 6/9/23 126168 12651 Chris Trimble 06/02/2023 404.00 M&IE: SWAT Commander Training 6/4 ‐ 6/9/23 126169 14588 Michael Ibrahim Venia 06/02/2023 800.00 Band ‐ Neighborhood Event 6/23/23 126170 12132 White Flag Pest Control Inc 06/02/2023 135.00 Pest Control ‐ PD 5/23/23 126171 10107 Zee Medical Service Co 06/02/2023 122.91 Medical Supplies 126172 11956 Zorros Cafe & Cantina LLC 06/02/2023 325.31 Zorro's ‐ Senior Dance 5/8/23 Total:343,720.82$

9.B-3Council Agenda 7-18-2023
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City of Pismo Beach
Final Disbursement List Check Date 06/09/2023
US BANK
ACH/ Vendor Check Check
Check# Number Payee Date Amount Description
ACH 10002 Internal Revenue Service 06/09/2023 111,863.26$ Federal Income Tax PD 06/09/23 ACH 11305 Public Employees Retirement System 06/09/2023 68,561.09 PERS Retirement EE & ER PD 06/09/23 ACH 12260 dba: Mission Square ICMA Retirement Trust ‐ 457 06/09/2023 24,368.84 ICMA 457 Deferred Comp EE & ER PD 06/09/23 ACH 12305 Franchise Tax Board 06/09/2023 20,033.39 State Income Tax & SDI PD 06/09/23 ACH 12360 CalPERS 457 Plan 06/09/2023 541.67 PERS Deferred Comp EE & ER PD 06/09/23 ACH 12708 dba: Mission Square ICMA Retirement Trust‐Roth IRA 06/09/2023 550.00 ICMA Roth IRA PD 06/09/23 ACH 12944 Leaf 06/09/2023 91.06 Monthly Copier Lease June 2023 ACH 14547 Quadient, Inc ‐ Postage 06/09/2023 1,000.00 Postage 5/16/2023 126178 10434 Abalone Coast Analytical Inc 06/09/2023 360.00 Water Analysis 3/20/23, 5/22/23, 5/30/23 126179 10118 Adamson Industries Police Products 06/09/2023 3,206.64 PD Equipment 126180 10695 AFLAC 06/09/2023 3,175.07 Supplemental Disability Insurance ‐ May 2023 126181 11882 Alexander's Contract Services Inc 06/09/2023 3,147.07 Water Meter Reading Services June 2023 126182 10630 Laurel J Allen 06/09/2023 576.00 Instructor: Adult Beach Volleyball 5/30 ‐ 6/8/23 #11172 126183 14515 American Enviro Services, Inc. 06/09/2023 142,181.04 North Shell Beach Road Storm Drain Repair 126184 UB*01005 VALERIE & DIRK ANDERSON 06/09/2023 24.19 Refund Check 017321‐000, 134 PALOMAR 126185 11382 Applied Technology Group, Inc. 06/09/2023 1,176.00 Fire Department Radio Maintenance 126186 14544 Jack Armstrong 06/09/2023 229.99 Reimb: American Water College WWII Exam Prep Course 126187 14551 AT&T UEI‐E5FGYCH7UWL6 (PD) 06/09/2023 1,650.00 Phone Tracing 4/1‐4/30/23 126188 UB*01007 MICHAEL ATKINSON (T) 06/09/2023 20.84 Refund Check 018400‐000, 130 BRANCH #132 126189 14597 Richard Aubrey 06/09/2023 500.00 Refund: Deposit PBVH Event 5/27/23 126190 11589 Austin's Wet Pets and Pond Maintenance, Inc 06/09/2023 1,640.00 Chapman Pond Maintenance ‐ May 2023 & Koi Pond Annual Cleaning 126191 UB*01009 NICOLE & BEAU BALDWIN (T) 06/09/2023 41.49 Refund Check 017646‐000, 160 HINDS #202 126192 14119 Boone Printing & Graphics, Inc. 06/09/2023 171.56 Business Cards 126193 14229 Brendler Janitorial Service 06/09/2023 120.00 PBVH Event Rental Cleaning ‐ May 2023 126194 11392 Brenntag Pacific Inc. 06/09/2023 974.18 Sodium Bisulfite 126195 UB*01003 BART LONG BRITTANY LIVINGSKIN (T) 06/09/2023 56.93 Refund Check 018830‐000, 101 KAREN WAY 126196 10626 California Highway Adoption Co 06/09/2023 1,050.00 Highway 101 On/Off Ramp Trash Mitigation 126197 14414 California State Disbursement Unit 06/09/2023 584.76 Tax Withholding Order PD 06/09/23 126198 14349 Callander Associates Landscape Architecture, Inc 06/09/2023 1,186.80 Palisades and Chumash Playgrounds ‐ Apr 2023 126199 11451 Channel Islands Technology Integrators' Group 06/09/2023 7,906.00 VMware Annual Renewal & Sophos Central Phish Threat 126200 14496 Lindsay Christiansen 06/09/2023 229.01 Reimb: Fuel & M&IE: Laserfiche Empower 2023 5/30‐6/1/23 126201 10281 City of Arroyo Grande 06/09/2023 6,024.33 Activity Guide Printing & Postage ‐ Summer 2023 126202 14415 CLAD Consulting, Inc. 06/09/2023 5,187.50 On Call Engineering Services/ Addie St & 478 Hinds Inspections/ Stormwater Support ‐ May 2023 126203 11231 Coastal Peaks Coffee 06/09/2023 126.50 Coffee 126204 11227 Cole Chrysler Dodge 06/09/2023 25.56 Vehicle Maintenance 126205 12156 County Of San Luis Obispo 06/09/2023 1,214.00 Chargeable Report Writing/Correspondence Jan/Feb 2023 126206 12516 County of San Luis Obispo Health Agency 06/09/2023 8,956.00 Q4 FY23 Animal Care & Control Services Agreement 126207 13386 Cuesta Polygraph & Investigations, LLC. 06/09/2023 900.00 Polygraph Services 126208 14313 Culligan/Santa Maria 06/09/2023 619.46 Drinking Water May 126209 12628 Dell Marketing LP 06/09/2023 362.83 Computer Accessories 126210 12224 Delta Dental Of California 06/09/2023 6,664.65 Dental Premiums ‐ June 2023 126211 11794 Dimes Media Corporation 06/09/2023 175.00 Advertising: Pacific Breeze Concerts 2023 126212 13869 Matt Downing 06/09/2023 108.00 M&IE: Cal Cities Enviro. Quality 6/21‐6/22/23 126213 11469 Eikhof Design Group Inc 06/09/2023 2,840.00 Development Review/ Dolphin Bay Storm Drain/ Wadsworth Storm Drain ‐ May 2023 126214 10746 Electricraft Inc. 06/09/2023 498.00 Service Call ‐ 900 Bello 126215 14383 Ellison Schneider Harris & Donlan LLP 06/09/2023 1,112.50 Water Counsel Services ‐ April 2023 126216 13586 Famcon Pipe & Supply Inc. 06/09/2023 484.88 Distribution Maintenance 126217 12123 Farm Supply 06/09/2023 1,085.03 Backflow Valve Repair ‐ Ocean Park 126218 12589 Ferguson Enterprises, Inc. 06/09/2023 378.42 Backflow Repair ‐ Ocean Park 126219 12035 Ben Fine 06/09/2023 380.48 M&IE/Mileage: League Committee Meeting 6/22‐6/23/23 126220 14097 Julia Goodman 06/09/2023 335.96 Hotel Reimb: Laserfiche Empower 2023 5/31‐6/1/23 126221 14592 Donald Gore 06/09/2023 300.00 Toilet Rebate (3) ‐ 305 Seaview 126222 13588 Kenneth John Guge III 06/09/2023 168.00 Instructor: Judo 4/3 ‐ 4/26/23 #11059 126223 11487 Hamner, Jewell And Associates 06/09/2023 990.00 Preliminary Acquisition Services 320 Main Street ‐ May 2023 126224 14043 Health & Human Resource Center, Inc. 06/09/2023 130.05 Employee Assistance Program ‐ June 2023 126225 14465 Ian Huff 06/09/2023 57.00 M&IE: Laserfiche Empower 5/31‐6/1/23 126226 14068 Impax Automation, LLC 06/09/2023 584.00 Collection System Maintenance 126227 12277 Independent Electric Supply Inc 06/09/2023 1,503.09 Electrical Maintenance ‐ PD 126228 13385 IPS Group, Inc. 06/09/2023 76,543.63 Parking Kiosks & Supplies/ IPS Transaction Fees ‐ May 2023 126229 11833 Keylock Security Specialists 06/09/2023 157.57 Office Keylock System ‐ City Hall 126230 10175 Life‐Assist, Inc. 06/09/2023 550.89 Medical Supplies ‐ Fire & Lifeguards 126231 13361 Marborg Industries Santa Barbara 06/09/2023 73.10 ADA Restrooms ‐ Addie Street 5/1 ‐ 5/28/23 126232 13645 MDN Engineering, LLP 06/09/2023 1,375.00 Bello Bridge Habitat Mitigation Monitoring ‐ May 2023 126233 14042 Merjan Enterprises, Inc. 06/09/2023 32,904.96 Camera Equipment & Installation ‐ St. Jude Tunnel/ Preventative Maintenance Service 4/14/23 126234 13892 Mesco Corporation 06/09/2023 720.00 Booster Station Maintenance 126235 10097 Miners Hardware 06/09/2023 1,362.11 Maintenance Supplies 126236 14405 Mission Linen Supply 06/09/2023 759.38 Floor Mats/Uniforms/ Rugs/ Towels ‐ May 2023 126237 14353 Motorola Solutions, Inc. 06/09/2023 16,550.18 Fire ‐ All Band Radios w/Chargers & Programming 126238 10039 New Times 06/09/2023 211.00 Legal Advertising 5/18, 5/25 & 6/1/23 126239 12199 Noble Saw, Inc 06/09/2023 271.12 Equipment Maintenance 126240 14343 ODP Business Solutions, LLC 06/09/2023 1,089.44 Office Supplies 126241 12023 Petty Cash 06/09/2023 175.00 Reimb: Petty Cash Nov 2022 ‐ June 2023 126242 14550 Phillco 06/09/2023 109.90 Soft Water ‐ Station 63 & 64 June 2023 126243 10633 Pismo Beach Athletic Club Inc 06/09/2023 390.00 PBAC Dues collected for June 2023 126244 UB*01010 PISMO BEACH PLAZA LLC 06/09/2023 100.35 Refund Check 018914‐000, 519 FIVE CITIES 126245 12022 Pismo Beach Police Officer's Association 06/09/2023 1,515.30 POA Dues PD 06/09/23 126246 UB*01008 FRED PORTER 06/09/2023 411.95 Refund Check 012783‐000, 1017 LONGVIEW 126247 14574 Primary Arms LLC 06/09/2023 4,797.84 PD Equipment 126248 12335 Procare Janitorial Supply Inc 06/09/2023 2,470.55 Janitorial Supplies 126249 14120 Quincon, Inc. 06/09/2023 119,940.20 Retention Release: City Hall/ Corp Yard 126250 13255 Rib Line 06/09/2023 870.00 Catering: Neighborhood Event 6/9/23 126251 14041 Patrick Rockwood 06/09/2023 174.19 Reimb: Motor Breeches 126252 10452 Richard Rolson 06/09/2023 680.00 Mobile Stage Rental DCP Concert 6/11/23 126253 10788 Safety 1st Seminars 06/09/2023 1,800.00 Instructor: Babysitting course 5/20/23 #11049 & 6/3/23 #11107 126254 14546 Safety Step Td, Inc 06/09/2023 782.77 Safety Ramp 126255 UB*01004 GIANNI SCANGARELLO (T) 06/09/2023 61.63 Refund Check 007397‐000, 303 MORRO 126256 11208 SEIU Local 620 AFL/CIO 06/09/2023 863.02 SEIU Dues PD 06/09/23 126257 10913 Siteone Landscape Supply LLC 06/09/2023 1,079.78 Irrigation Maintenance 126258 10093 SLO County Auditor‐Controller 06/09/2023 9,775.00 Phoenix Parking Surcharges ‐ March 2023

9.B-4Council Agenda 7-18-2023
Attachment 2
Packet Page 27

City of Pismo Beach
Final Disbursement List Check Date 06/09/2023
US BANK
ACH/ Vendor Check Check
Check# Number Payee Date Amount Description
126259 12570 SLO Roasted Coffee 06/09/2023 37.00 Coffee 126260 14387 Jake Smith 06/09/2023 250.00 Reimb: Safety Boots FY23 126261 14361 Sun Ridge Systems, Inc. 06/09/2023 62,895.44 RIMS Software and Training Services 126262 12078 Jason Takagi 06/09/2023 319.00 Mileage/M&IE: Laserfiche Empower 5/31‐6/1/23 126263 14015 The Pape` Group Inc. 06/09/2023 233.88 Equipment Maintenance 126264 13097 The Standard 06/09/2023 1,528.48 Life & Additional Life Insurance Premiums ‐ June 2023 126265 12924 Traffic Management Inc 06/09/2023 3,366.26 Safety Vests/ Street Signs/ Event Crowd Control 126266 12991 TransUnion Risk and Alternative 06/09/2023 150.00 Investigative Services ‐ May 2023 126267 10380 Trinity Cyclery 06/09/2023 245.00 Equipment Maintenance 126268 10971 Giles Clayton Tuckfield 06/09/2023 2,537.50 Water & Wastewater Rate Study May 2023 126269 12228 Turf Star, Inc. 06/09/2023 596.38 Equipment Maintenance 126270 12620 Uline 06/09/2023 63.82 Office Supplies
126271 13073 VSP‐ Vision Service Plan (CA) 06/09/2023 1,633.00 VSP Vision Coverage June 2023 126272 12132 White Flag Pest Control Inc 06/09/2023 330.00 Rodent Service ‐ Price Houses 126273 UB*01006 SUSAN WHITTAKER (T) 06/09/2023 37.16 Refund Check 018074‐000, 950 TAFT Total:791,216.90$

9.B-5Council Agenda 7-18-2023
Attachment 2
Packet Page 28

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

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

No action recommended; for information only.

BACKGROUND:

This report updates the City Council on the City of Pismo Beach’s monthly transactions of the City’s investment portfolio for the month ending May 31, 2023. California State Government Code Section 53607 states that if the authority of the legislative body to invest or reinvest funds for the City is delegated to the City Treasurer, the City Treasurer shall make a monthly report of those transactions to the legislative body.

The attached report includes all transactions of the City’s investments managed by the City, including funds invested in various securities and the City’s pooled funds invested in various financial instruments.
Attachment 1 provides a summary of the City’s cash, investments, and monthly interest earnings based on book value as of May 31, 2023. Attachment 2 provides details on the investment transactions for the General Fund Reserve and City Pooled Funds A (for deferred capital projects), including: purchases or deposits; sales, maturities, calls or withdrawals; and interest earnings. Attachment 3 provides details of the monthly transactions by fund for City Pooled Funds B (for current year expenditures) for the month ending May 31, 2023.

FISCAL IMPACT:

No fiscal impact from the report itself—information only.

ALTERNATIVES:

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

ATTACHMENTS:

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

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

3. For City Pooled Funds B—Summary of monthly transactions by fund Prepared by: Vanessa Garris, Finance Manager Meeting Date: July 18, 2023 Submitted by: Nadia Feeser, Administrative Service Director / City Treasurer Interim City Manager Approval:

Council Agenda 7-18-2023 9.C-1
Packet Page 29

City of Pismo Beach
Investment Name Name of Institution Type of Investment
Current
Earnings
Rate Book Value
Actual Interest
Earned May 2023
Actual Year-to-
Date Interest
Earned Ending
5/31/2023 * Data Sources
General Fund Reserves US Bank CDs/GASs/Corp/
Muni Bonds

2.07% avg 7,903,572.89 15,635$ 136,581$ 1 City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ Muni Bonds/
US Treasury Note

2.61% avg 41,993,857 88,080 510,527 1 Total All Securities 49,897,430$ 103,715$ 647,108$ City Pooled Funds - B US Bank Custody 0.00%-$ 225$ 2,895$ 1 City Pooled Funds - B Local Agency Invest.

Fund
State Investment
Pool

2.74%14,628,763 - 298,507 2
City Pooled Funds - B US Bank Checking 0.00%13,704,470 1,785 10,864 3 City Pooled Funds - B 28,333,233$ 2,011$ 312,266$ City Pooled Funds total A + B 70,327,090$ 90,091$ 822,793$ Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 Pier Project 121,308$ 2$ 427$ 4 Funds Held with Fiscal
Agent
Bond funds:

Wilmington Trust
2017 CREB's
Project
73,557 1 276 4
CalPERS Benefit Trust
OPEB Trust Account CalPERS Benefit
Trust Account
Various managed by
CalPERS
4,707,647$ -$ 162,505$ 5
TOTAL, Cash and Investments at May 31, 2023:83,133,174$ 105,728$ 1,122,582$ TOTAL for City Managed Portfolio, Cash and Investments:78,230,663$ 105,726$ 959,374$ Notes:
* Data Sources for Book Values and Actual Interest Earned:
1 = Monthly Customer Statement from US Bank
2 = Monthly statement from Local Agency Investment Fund 3 = Monthly reconciled bank statement from US Bank
4 = Monthly statement from Wilmington Trust
5 = Monthly statement from CalPERS Benefit Trust Account Attachment 1: Summary Table for All Funds,
including Book Values and Earnings Data for Investments in Other Financial Instruments Council Agenda 7-18-2023 9.C-2
Attachment 1
Packet Page 30

CITY OF PISMO BEACH
Attachment 2: For the General Fund Reserve and City Pooled Funds A Transactions on Investments in Securities
May 31, 2023

INVESTMENT ACTIVITY

PURCHASES OR DEPOSITS
05/01/23 Purchase Minnwest Bank 245,000$
05/01/23 Purchase US Treasury Note 5,902,872
05/24/23 Purchase BMO Harris Bank 245,000
Total 6,392,872$

SALES, MATURITIES, CALLS OR WITHDRAWALS
05/01/23 Matured US Treasury Note 6,045,375$
Total 6,045,375$
ACTIVITY TOTAL 347,497$

INTEREST REVENUE

GENERAL FUND RESERVE INVESTMENTS
Interest Earned on Investments 15,635$

POOLED INVESTMENTS
Interest Earned on Investments 88,080$
TOTAL INTEREST EARNED 103,715$
Data Source: Monthly Download of Transactions from US Bank Council Agenda 7-18-2023 9.C-3
Attachment 2
Packet Page 31

Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:5/31/2023 Bank Account Description Bank ID
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
General Checking US Bank 11,002,970$ 9,442,052$ (6,451,621)$ 201,068$ (490,000)$ 13,704,470$ LAIF LAIF 14,628,763 - - -- 14,628,763
Total all Bank Accounts 25,631,733$ 9,442,052$ (6,451,621)$ 201,068$ (490,000)$ 28,333,233$ Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
General Fund
General Fund 1001-10101 4,509,465 1,132,493 (1,413,606) -- 4,228,352 General Fund-Reserve 1001-10105 41,477 (25,531) - - - 15,947 Half Cent Sales Tax Fund 1002 318,104 6,458 - - - 324,561 Special Revenue Funds
Gas Tax Fund 2001 282,593 26,783 - - - 309,376
LTF - Streets 2002 361,285 69,529 - - - 430,814
PEG Access Fund 2003 79,407 10,342 - - - 89,748
Police Grant Fund 2004 221,210 799 - - - 222,009
Housing In Lieu Fund 2005 1,548,780 12,582 (133,731) -- 1,427,631 LBID Fund 2006 2,151,065 248,937 (117,902) -- 2,282,100 Chapman House 2007 7,610 4,755 (3,191) -- 9,174
Capital Projects Funds
Capital Projects Fund 3001 (228,450) 3,539,895 (3,005,587) -- 305,858 Public Facilities Fund 3002 873 3 - - - 876
Park Development Fund 3003 328,369 8,576 - - - 336,944 Circulation Fund 3101 299,676 4,137 - - - 303,814 Development Impact Fee Fund 3102 496,871 11,394 - - - 508,265 Developer Impact Fee Fund 3103 166,236 616 - - - 166,852 Underground Utility Fund 3201 16,434 61 - - - 16,495 Council Agenda 7-18-2023 9.C-4
Attachment 3
Packet Page 32

Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending: 5/31/2023 Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
Debt Service Funds
Public Finance Authority Fund 4001 -- - - - -
Public Finance Authority Fund 4002 -- - - - -
Freeway Foothills AD Fund 4101 760 3 - - - 763 Spyglass AD Fund 4102 12,659 47 - - - 12,706
Indio-El Portal AD Fund 4112 735 3 - - - 738
Visalia Street AD Fund 4113 527 751 - - - 1,278
Enterprise Funds
Water Enterprise/Tax Fund 6101/6102 1,898,789 1,627,931 (845,734) -- 2,680,985 Water Construction Fund 6103 620,968 11,339 (8,533) -- 623,774 Water Expansion Fund 6104 808,505 12,044 - - - 820,549 Wastewater Enterprise Fund 6201 1,630,201 2,182,216 (352,789) -- 3,459,628 Wastewater Construction Fund 6202 1,346,154 4,991 (83,574) -- 1,267,571 Wastewater Expansion Fund 6203 1,887,442 22,078 - - - 1,909,520 LTF - Transit Fund 6301 28,241 30 - - - 28,271
Pier Operations Fund 6401 21,522 6,461 (10,420) -- 17,564 Parking Fund 6501 2,645,610 309,020 (46,733) -- 2,907,896 Internal Service Funds
Technology Service Fund 7101 17,560 86,978 (120,940) -- (16,402) Motor Vehicle Fund 7201 2,719,423 (246,870) (225,454) -- 2,247,098 Trust & Agency Funds
SLO County TMD 8201 120,213 186,595 (121,506) -- 185,302 Control Funds
Payroll Control Fund 9301 892,736 2,495 65,428 -- 960,659 Interest Control Fund 9302 138,152 (134,896) - - - 3,257 Utility Billing Control Fund 9304 239,982 3,339 (65) -- 243,257 M/R Control Fund 9305 -- - - - -
Total all cash funds 25,631,184 9,126,386 (6,424,337) -- 28,333,233 Council Agenda 7-18-2023 9.C-5
Attachment 3
Packet Page 33

INVESTMENTS
General Fund
General Fund Money Mrkt Csh 1001-10108 0 - - - - 0 General Fund - CD's 1001-10404 5,380,440 - - - - 5,380,440 General Fund - Fed Agency 1001-10405 4,049,000 - - - - 4,049,000 GF - Half Cent Sales Tax CD's 1002-10404 1,225,000 - - - - 1,225,000 GF - Half Cent Sales Tax 1002-10405 500,000 - - - - 500,000 GF - Half Cent Sales Tax Mny Mk 1002-10108 0 - - - - 0 GF Reserve Money Mkt Cash 1001-10109 0 - - - - 0 GF Reserve - CD's 1001-10403 3,043,560 139,000 - - - 3,182,560 GF Reserve - Fed Agency 1001-10402 2,208,000 - - - - 2,208,000 GF Reserve - Building 1001-10406 202,000 - - - - 202,000 GF Reserve - Building - Federal A1001-10146 298,000 - - - - 298,000 GF Reserve - Risk Mgmt - CD's 1001-10407 150,000 - - - - 150,000 GF Reserve - Risk Mgmt - Fed Ag1001-10140 50,000 - - - - 50,000 GF Corp Bond - Pooled 1001-10141 529,143 - - - - 529,143 GF Corp Bond - Reserve 1001-10145 500,000 - - - - 500,000 GF Municipal Bonds Pooled 1001-10142 331,595 - - - - 331,595 GF Municipal Bonds Reserve 1001-10143 1,263,013 - - - - 1,263,013 Risk Mgmt Muni Bonds Reserve 1001-10144 50,000 - - - - 50,000 Half Cent Sales Tax - Pooled 1002-10141 - - - - - - Half Cent Sales Tax - Muni Bond 1002-10142 571,288 - - - - 571,288 GF CREB's Fiscal Agent 1001-10515 (0) - - - - (0) GF Treasury Note 1001-10410 12,945,266 (45,375) - - - 12,899,891 Special Revenue Funds
Housing In Lieu - Mny Mkt Csh 2005-10108 (0) - - - - (0) Housing In Lieu Fund 2005-10404 630,000 - - - - 630,000 Housing In-Lieu Fed Agencies 2005-10405 140,000 - - - - 140,000 Housing In-Lieu Treasury Note 2005-10410 922,266 - - - - 922,266 Capital Projects Funds
Park Develop. Fund Mny Mkt 3003-10108 - - - - - - Park Development Fund 3003-10404 - - - - - -
Park Develop Federal Agencies 3003-10405 - - - - - - Circulation Fees Mny Mkt 3101-10108 - - - - - - Circulation Fees 3101-10404 - - - - - -
Develop. Impact Fee Mny Mkt 3102-10108 0 - - - - 0 Development Impact Fee Fund 3102-10404 245,000 - - - - 245,000 Impact Fees Federal Agencies 3102-10405 - - - - - - Council Agenda 7-18-2023 9.C-6
Attachment 3
Packet Page 34

INVESTMENTS
Debt Service Funds
Public Fin Fiscal Agent-Pier 4002-10510 425 120,883 - - - 121,308 Public Fin Fiscal Agent-CREBs 4002-10515 281 73,276 - -- 73,557 Visalia Street CD's 4113-10404 100,000 - - -- 100,000 Enterprise Funds
Water Fund Money Mrkt Csh 6101-10108 0 - - - - 0 Water Fund CD's 6101-10404 490,000 - - - - 490,000 Wtr Fund Federal Agencies 6101-10405 2,155,000 - - - - 2,155,000 Wtr Fund Corp Bond - Pooled 6101-10141 - - - - - - Water Fund Treasury Note 6101-10410 1,000,000 - - - - 1,000,000 Water Construction Money Mkt 6103-10108 (0) - - - - (0) Water Construction 6103-10404 504,363 - - - - 504,363 Wastewater Fund Money Market C6201-10108 0 - - - - 0 Wastewater Fund CD's 6201-10404 490,000 - - - - 490,000 Wastewater Fund Fed Agencies 6201-10405 2,100,000 - - - - 2,100,000 WWtr Fund Corp Bond - Pooled 6201-10141 1,062,000 - - - - 1,062,000 WWtr Fund Treasury Note 6201-10410 1,000,000 - - - - 1,000,000 Parking Enterprise Money Mrkt 6501-10108 (0) - - - - (0) Parking Fund Corp Bond-Pooled 6501-10141 500,000 - - - - 500,000 Parking Enterprise 6501-10404 980,000 - - - - 980,000 Parking Fund Federal Agencies 6501-10405 1,750,000 - - - - 1,750,000 Parking Fund Treasury Note 6501-10410 1,000,000 (97,128) - - - 902,872 Internal Service Funds
MVR Fund Money Mrkt Csh 7201-10108 0 - - - - 0 MVR Fund CD's 7201-10404 685,000 351,000 - - - 1,036,000 MVR Fund Federal Agencies 7201-10405 500,000 - - - - 500,000 CalPers Benefit Trust
OPEB Trust Account 8101-10408 4,707,647 - - - - 4,707,647 Total all Investments 54,258,286$ 541,656$ -$ -$-$ 54,799,942$ Total all Funds 79,889,470$ 9,668,041$ (6,424,337)$ -$ -$ 83,133,174$ Council Agenda 7-18-2023 9.C-7
Attachment 3
Packet Page 35

PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.D

SUBJECT/TITLE:

PAID PARKING QUARTERLY UPDATE–FOURTH QUARTER OF FISCAL YEAR 2023 RECOMMENDATION:

No action recommended; for information only.

BACKGROUND:

This report provides the City Council and public with information on preliminary actual revenues and expenditures for Fiscal Year (FY) 2023 ending June 30, 2023, and the current balance of the Parking Enterprise Fund. This report also provides an update on parking initiatives.

FY 2023 Financial Update
The following table details the preliminary actual revenues and expenditures for FY 2023 compared to FY 2022.

Table 1: Parking Enterprise Fund Revenues & Expenditures through 4th Quarter FY 2023 4th
Quarter Actuals
FY 2022 4th
Quarter Actuals
Variance FY23
v FY22 ($)
V ariance FY23 v
FY22 (%)
July 1st Beginning Fund Balance 5,409,268$ 3,409,461$ 1,999,807$ 58.7%

REVENUES
Parklet Fee 44,298$ 73,248$ (28,950)$ -39.5%
Parking Citations 519,850 630,134 (110,284) -17.5% Interest Earnings 72,729 15,564 57,165 367.3%
Rents & Leases 3,399 40,788 (37,389) -91.7%
Parking Kiosks/Meters 1,817,018 1,982,542 (165,524) -8.3% Parking Permits 6,335 4,570 1,765 38.6%
Miscellaneous Revenue 6,872 4,957 1,915 38.6%
TOTAL REVENUES 2,470,501$ 2,751,803$ (281,302)$ -10.2%

EXPENDITURES
Salaries & Wages 185,069$ 200,135$ (15,066)$ -7.5% Benefits 57,029 67,501 (10,472) -15.5%
Purchased Professional Services 3,463 3,042 421 13.8% Other Purchased Services 57,739 66,430 (8,691) -13.1% Operations and Maintenance 94,139 89,377 4,762 5.3% Other Expenses 340,208 205,729 134,479 65.4%
TOTAL OPERATING EXPENSES 737,647$ 632,214$ 105,433$ 16.7% NET INCOME / (LOSS) As of June
30, 2023
1,732,854$ 2,119,589$ (386,736)$ -18.2%
One-time Expenditures 282,611$ 4,336$ 278,275$ 6417.6% June 30, 2023 Ending Fund
Balance
6,859,511$ 5,524,714$ 1,334,796$ 24.2%
Carryforward One-time projects 4,043,705$ 3,733,906$ 309,799$ 8.3% June 30, 2023 Available Ending
Fund Balance
2,815,805$ 1,790,808$ 1,024,997$ 57.2%

9.D-1Council Agenda 7-18-2023
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As shown in Table 1, the preliminary estimate of revenues of the Parking Enterprise Fund at the end of the fourth quarter of FY 2023 (ending June 30, 2023) totaled $2,470,501, which is 10.2% less parking revenue compared to the same period in FY 2022.

Operating expenses at the end of this same period, which include personnel costs, operating expenses, and contract services, totaled $737,647, which is 16.7% greater than operating expenditures through the fourth quarter of FY 2022. The projected net operating income (revenues less operating expenses) through the fourth quarter of FY 2023 is $1,732,854. After accounting for one-time expenditures of $282,611, the projected ending balance of the Parking Enterprise Fund at the end of the third quarter is $6,859,511.

In addition to the ongoing expenses, there are one-time budgeted costs of $4,043,705 for one-time projects. These projects include $2,504,596 for the purchase of property to increase the City’s parking inventory, $750,000 for paving the parking lots, $421,689 for the Downtown Police/Parking Substation, $260,884 for additional parking meters, $97,220 for the Addie Street Parking and Access Improvements project, $5,085 for the Parking Management Study, $4,000 for a radio system upgrade and reliability project, and $825 for other projects. After carrying forward the $4,043,705 remaining project balances to the next fiscal year, the projected available fund balance is $2,815,805.

Parking Management Implementation
Work continues on the update to the Parking Management Plan (PMP) being prepared by Walker Consultants. The PMP will incorporate the updated parking meters and will also address alternative topics such as electric bike infrastructure to help ensure the public can enjoy the downtown and the coast. The Parking Advisory Committee has reviewed the PMP and has recommended the City Council approve the document. This is anticipated to be considered by the Council in late summer 2023.

As part of the upcoming paving project, parking meters will be installed on Price Street between Pomeroy and San Luis Avenues and the adjacent stub streets. The City Council authorized the purchase of the parking meters on January 17, 2023. Associated with this work, on February 21, 2023, the City Council directed staff to temporarily restripe Price Street with a “double-loaded” center diagonal parking for the summer. This will allow the community to test the reconfiguration for the season and allow continued business outreach to determine appropriateness for permanent installation. The reconfiguration increases parking inventory on Price Street by approximately 26 spaces. Since the test reconfiguration has been implemented, staff has held three meetings with businesses on Price Street to understand how the system is functioning and any improvements that can be made to a future recommendation for Council consideration.

As the City is in the summer months, parking rates have been adjusted to help accommodate the increased number of vehicles impacting downtown. Staff will continue to monitor and adjust parking rates to encourage parking in less congested areas. The supply of parking downtown has been impacted by the closure of the portion of the Main Street lot known as the Wolosz Lot, removing 76 spaces from the downtown parking supply. Continued monitoring of parking management will be important to ensure vehicular turnover for downtown businesses and coastal access.

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FISCAL IMPACT:

No fiscal impact is anticipated by receipt of this update.

ALTERNATIVES:

1. Direct staff to return with additional information.

ATTACHMENTS:

None.

Submitted by: Meeting Date: July 18, 2023
Matthew Downing, Community Development Director
Interim City Manager Approval:

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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
SUBJECT/TITLE:

AMENDMENT #8 TO THE AGREEMENT WITH RINCON CONSULTANTS, INC. FOR

PROFESSIONAL SERVICES RELATED TO CENTRAL COAST BLUE

ENVIRONMENTAL DOCUMENTS
RECOMMENDATION:

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. To date, seven amendments have been prepared and executed. Five of these were executed under the City Manager’s authority and two were approved by City Council. A list of the executed amendments to date is below.
Amendment #1 – additional work related to archaeological resources services for an Extended Phase 1 study. Executed under the City Manager’s authority on February 11, 2020.
Amendment #2 – cost modification due to additional work required by the selection of the project site for the advanced water treatment facility. Executed under the City Manager’s authority on February 24, 2020.
Amendment #3 – 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 and revisions to the Environmental Impact Report (EIR). Approved by City Council on December 21, 2021. Amendment #4 – additional costs associated with preparing updated technical studies and the Addendum to the 2021 Final EIR. Approved by City Council on December 6, 2022.
Amendment #5 – out of scope costs incurred during the preparation of the updated technical studies and Addendum to the Final EIR. Executed under the City Manager’s authority on February 14, 2023.
Amendment #6 – completion of environmental monitoring services in support of the geotechnical exploration for the Central Coast Blue project. Executed under the City Manager’s authority on March 21, 2023.
Amendment #7 – At staff’s request, attendance at a public meeting during the public review period for the Draft Addendum to the Final EIR. Executed under the City Manager’s authority on April 26, 2023.

The proposed contract Amendment #8 (Attachment 1.A) will cover two out-of-scope tasks – the completion of preliminary hydrogeologic analysis in support of the EIR Council Agenda 7-18-2023 9.E-1
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Addendum and the provision of accessibility compliance for the National Environmental Policy Act documentation.

Conclusion and Recommendation
Staff recommends the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #8 (Attachment 1.A) to the existing Rincon contract to allow Rincon to move forward with the environmental permitting processes for Central Coast Blue.

FISCAL IMPACT:

The fiscal impact of the attached Resolution is $10,308 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 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. Do not approve Amendment #8; provide staff with direction on how to proceed.

ATTACHMENTS:

1. Resolution

1.A Exhibit A to Resolution: Proposed Rincon Amendment #8 Prepared by: Meeting Date: July 18, 2023
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer Interim City Manager Approval:

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RESOLUTION NO. R-2023-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #8

TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH RINCON CONSULTANTS, INC. FOR PREPARATION OF ENVIRONMENTAL DOCUMENTS FOR CENTRAL COAST BLUE IN THE AMOUNT OF $10,308
WHEREAS, in June 2017, the City Council awarded a contract to Rincon Consultants, Inc. (Rincon) for preparation of environmental documents related to Central Coast Blue; and
WHEREAS, to date, seven amendments have been prepared and executed: Amendment #1 executed under the City Manager’s authority on February 11, 2020; Amendment #2 executed under the City Manager’s authority on February 24, 2020; Amendment #3 approved by City Council on December 21, 2021; Amendment #4 approved by City Council on December 6, 2022; Amendment #5 executed under the City Manager’s authority on February 14, 2023; Amendment #6 executed under the City Manager’s authority on March 21, 2023; and Amendment #7 executed under the City Manager’s authority on April 26, 2023; and
WHEREAS, proposed contract Amendment #8 will cover two additional out of scope tasks – the completion of preliminary hydrogeologic analysis in support of the EIR Addendum and the provision of accessibility compliance for the National Environmental Policy Act documentation.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #8 (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 $10,308.

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 18th day of July 2023, 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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AMENDMENT # 8
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 June 13, 2023, 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 ten thousand three hundred eight dollars ($10,308), without prior written approval of the City.

3. The revised fee under the June 20, 2017 contract, plus addenda 1-8, is four hundred sixty thousand five hundred twenty-eight dollars and ninety cents ($460,528.90).

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: Jorge Garcia
Title: Interim City Manager
Dated: ________________________________

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 7-18-2023 9.E-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
June 13, 2023
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 Request for the Central Coast Blue Project, Oceano, California Dear Mr. Fine:

Rincon Consultants, Inc. (Rincon) is presenting this additional services request to cover two out-of-scope tasks – the completion of preliminary hydrogeologic analysis in support of the EIR Addendum and the provision of accessibility compliance for the National Environmental Policy Act documentation – related to Tasks 12 and 16 of our current scope of work for the Central Coast Blue project (PO 0000000352).

Preliminary Hydrogeologic Analysis
In support of the EIR Addendum, Rincon completed preliminary hydrogeologic calculations/modeling related to construction dewatering at the Advanced Water Purification Facility site and its potential effects to surface water bodies. This task required approximately 10 hours of senior and principal staff time for completing the modeling, discussing results with the program management/engineering team, and incorporating management recommendations into the EIR Addendum.

Accessibility Compliance
Since initiation of our current scope of work, United States Bureau of Reclamation staff have indicated the Draft Environmental Assessment and Finding of No Significant Impact will be required to meet the Web Content Accessibility Guidelines (WCAG) standards under Section 508 of the Rehabilitation Act of 1973. Therefore, under this additional scope of work, Rincon’s Accessibility Manager will produce digital PDFs of these two deliverables that meet WCAG standards to achieve Section 508 compliance. This additional scope of work incorporates the following assumptions:
▪The Draft Environmental Assessment will not exceed 100 pages in length (inclusive of appendices). ▪The Finding of No Significant Impact will not exceed six pages in length. ▪No edits will be requested on the deliverables after PDF remediation is completed. If edits are requested, additional scope and budget will be required due to the need to repeat PDF remediation for WCAG compliance.

The total cost for these expenditures is $10,308.00, which would bring our total contract value to $460,528.90.

We look forward to continuing to support this important project.

Council Agenda 7-18-2023 9.E-5
Attachment 1.A
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City of Pismo Beach
Central Coast Blue Project
Sincerely,
Rincon Consultants, Inc.

Annaliese Torres
Senior Environmental Planner
Council Agenda 7-18-2023 9.E-6
Attachment 1.A
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.F
SUBJECT/TITLE:

NOTICE OF COMPLETION FOR THE NORTH SHELL BEACH ROAD STORM DRAIN

REPAIR PROJECT
RECOMMENDATION:

1. Accept the North Shell Beach Road Storm Drain Repair Project as complete;

2. Authorize the City Manager to sign, and the City Clerk to record, a Notice of Completion for the Project.

BACKGROUND:

On January 17, 2023 City Council awarded a contract to American Enviro Services, Inc. (American Enviro) for the North Shell Beach Road Storm Drain Repair Project. The project included repair of a failed storm drain that occurred during the January 2017 winter storms.

On April 25, 2023 City Council authorized a change order for additional work to be completed under a Work Directive on a time and material basis. The work was completed on time and the final cost was $71,824.43 less than the approved not-to-exceed amount.

Conclusion and Recommendation
American Enviro has completed the contracted services and the North Shell Beach Road Storm Drain Repair Project has been completed in accordance with the plans, specifications, and contract documents. Staff recommends that the City Council accept the project as complete and authorize the Notice of Completion (Attachment 1) to be recorded at the County Clerk’s office.

FISCAL IMPACT:

There is no direct fiscal impact associated with this report.

ALTERNATIVES:

1. Since American Enviro has completed its contractual obligation, the only option recommended is for City Council to approve the Notice of Completion.

ATTACHMENTS:

1. Notice of Completion
Prepared by: Meeting Date: January 18, 2023
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer Interim City Manager Approval:

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RECORDING REQUESTED BY:

WHEN RECORDED, RETURN TO:

CITY CLERK

CITY OF PISMO BEACH
760 MATTIE ROAD
PISMO BEACH, CA 93449

NO TRANSFERORS
This document is recorded for the benefit of the City of Pismo Beach, a Municipal Corporation, and is exempt from fee per Government Code Section 27383.

NOTICE OF COMPLETION AND ACCEPTANCE

FOR NORTH SHELL BEACH ROAD STORM DRAIN REPAIR PROJECT
NOTICE IS HEREBY GIVEN by the City of Pismo Beach in the County of San Luis Obispo, State of California, as follows:

1. That on the 18
th of July 2023, the project hereunder described was considered completed and accepted by the City Council of the City of Pismo Beach.

2. That the description of said project is the construction of storm drain repairs, for the City of Pismo Beach.

3. That the name of the political subdivision controlling said project, and the owner of the land upon which the project was constructed, is the City of Pismo Beach, in the County of San Luis Obispo, State of California, whose address is 760 Mattie Road, Pismo Beach, CA 93449.

4. That the name of the owner/contractor on said project is American Enviro Services, Inc., 15513 Chateau Montelena Drive, Bakersfield, CA 93314.

5. The name of the Surety on the project is Travelers Casualty and Surety Company of America, One Tower Square, Hartford, CT 06183.

I certify (or declare) under penalty of perjury that the foregoing is true and correct.

Date:

Jorge E. Garcia, Interim City Manager
Attest:

Erica Inderlied, City Clerk

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

REGIONAL HOUSING & INFRASTRUCTURE PLAN
RECOMMENDATION:

1. Discuss and consider support for the Regional Housing and Infrastructure Plan, as a recommitment to the 2020 San Luis Obispo Countywide Regional Compact; and

2. Direct staff to continue discussing ways to utilize and implement the Regional Housing and Infrastructure Plan.

BACKGROUND:

Meeting the housing needs of the San Luis Obispo region is a challenge shared by all eight local land use jurisdictions (the seven cities and County of San Luis Obispo (County)), San Luis Obispo Council of Governments (SLOCOG), organizations that develop and build housing, as well as local community members. This challenge is larger than any one entity can solve alone and will require the collective actions of all local partners. With this challenge comes an opportunity for regional collaboration, including the need to work collaboratively to solve the critical shortage of infrastructure resources and housing attainability in the region. In 2019, the County allocated resources to launch a new regional collaborative initiative that has a phased approach intended to address three major goals:

1. Foster regional collaboration (action taken in 2020);

2. Align land use planning documents (action taken in 2020); and

3. Create the Housing and Infrastructure Plan (HIP).

The City Council completed the first two actions through the adoption of the Regional Compact (Attachment 1.D) on March 3, 2020, and through the adoption of the 2020- 2028 (6th Cycle) Housing Element Update on November 17, 2020, which contained regional policies consistent with the other land use jurisdictions.

The HIP is the next necessary collaborative action along the region’s path to addressing the growing housing and infrastructure needs. The HIP is intended to help accelerate housing development where it makes the most sense given regional conditions and community readiness. The HIP inventories infrastructure barriers to housing, identifies funding opportunities to implement infrastructure priorities, studies housing affordability in the region, and develops foundational information for the future 2027 Regional Housing Needs Assessment (RHNA) and other future regional programs.

The Draft HIP (Attachment 1) includes seven major components that intertwine and build upon one another. The Draft HIP components include:

HIP Component 1 - Housing Highlights – A communication tool designed to unify the region’s focus on the challenges and successes that local agencies, the

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building and development community, and other stakeholders face related to the housing supply needs (Attachment 1.A).

HIP Component 2 - Data and Project Inventory – A compilation of infrastructure and housing data from across individual agencies, including housing, transportation, water/wastewater, and additional contextual data (Attachment

1.A).

HIP Component 3 - HIP Mapping Tool – The HIP Mapping Tool is an interactive tool, compiling the complex data and inventoried projects from across the region to make it easier to visualize connections between infrastructure and housing, see project priorities, and quickly access more information about each community’s priority projects and housing efficient areas, within a regional context.

HIP Component 4 - Housing Efficiency Analysis – The Housing Efficiency Analysis looks at three efficiency factors: (1) transportation access, (2) water capacity and (3) wastewater capacity. By analyzing these efficiency factors, housing efficient areas were identified as efficient, potential, or limited. Any infrastructure projects located in an area deemed “efficient” or “potential” moved on to the Infrastructure Prioritization element. All projects located in areas deemed “limited” housing efficiency were removed from further analysis.

HIP Component 5 - Infrastructure Prioritization – A ranking of 80 infrastructure projects ranked as high, medium, or low priority based on three factors: (1) if the project is needed for new housing, (2) benefit/cost (i.e., investment cost per additional potential housing units served), and (3) whether there are significant barriers to development.

HIP Component 6 - Funding Strategies Assessment – The Funding Strategies Assessment component is currently underway and seeks to identify funding sources that can reasonably implement water, wastewater, and transportation infrastructure priorities included in the HIP. Although not yet completed, the final assessment will include a project-by-project detailed breakdown covering funding requirements, potential funding sources, projected grant funding, and residual funding gap.

HIP Component 7 - Affordable-by-Design (ABD) Study – The ABD Study is currently underway and will evaluate housing affordability characteristics for the seven cities as well as unincorporated areas. The intent is to identify whether housing units in this region can be built to meet low to moderate income RHNA categories (as rentals or for-purchase) without being income- or rent-restricted.

Initial findings include:
Design helps, but does not guarantee affordability.
Market rate rental housing is close to affordability targets in some areas, but regulatory changes are necessary for most areas of the county.

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Only manufactured housing met target price points for new for-sale housing. Factors that make for-sale housing more affordable in other areas may not translate to this region’s current market.

The ABD Study notes that there are generally four factors that come together in the housing market to produce lower-cost housing, including: (1) simple design with lower-cost materials, (2) lower cost locations, (3) efficient production, and (4) smaller units with higher density. Due to the limited findings of housing affordability, the ABD Study includes development of a simple menu of policy options that could help to incentivize ABD units in the region. The draft study is expected in July 2023; however, preliminary information is included as Attachment 1.C.

It is worth emphasizing that the recommendation to support the HIP recognizes that there is no “one size fits all” when it comes to the region’s planning and that while local agencies plan for housing, they do not build or develop housing. Therefore, nothing in the HIP mandates action by any of the cities or the County. Rather, the HIP offers voluntary opportunities for action that could accelerate the development of needed housing in the region. Implementation relies on each agency’s voluntary actions moving forward, such as:
Agency(ies) may consider pursuing funding opportunities identified for a priority infrastructure project to cover funding gaps.
Agency(ies) may consider implementation of affordable-by-design policies appropriate to each unique community and its needs.
Agency may consider programmatic changes to improve approval process timelines such as directing staff to identify ways to improve response time for housing project approval or coordinating with other agencies to align and streamline processes.
Agency may consider updating its analysis approach to prioritizing the community’s needed infrastructure projects in order to most impactfully increase housing supply.
Agency may consider using the HIP to help justify the benefit of a community’s priority infrastructure project towards increasing the region’s future housing supply, making it more competitive in a number of state and federal funding programs. SLOCOG and agencies may consider using the HIP as a foundation for negotiating where the region’s housing needs are best met (e.g future Regional Housing Needs Allocation (RHNA) cycle allocations).

As stated above, the housing, infrastructure and economic challenges that the region faces are larger than any one entity can solve alone and will require the collective actions of all local partners. The HIP is the first of its kind, and it is intended to be a living document. The HIP’s future implementation and use are wholly dependent on the voluntary actions of many – the seven cities, County, SLOCOG, organizations that develop and build housing, as well as local community members.

Pending adoption of the HIP, SLOCOG is committed to updating the data in the HIP Mapping Tool in sync with the Regional Transportation Plan/Sustainable Community

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Strategies development’s public processes, using the HIP as a factor in future grant programming cycles, and leveraging the HIP as a foundational tool during the next RHNA cycle. City staff remains committed to engaging with partners including county departments, the seven cities, SLOCOG, and key stakeholders to finalize the HIP and carry out the goals set forth in the Regional Compact.

Conclusion and Recommendation
Staff recommends the City Council support the Regional Housing and Infrastructure Plan as a recommitment to the 2020 San Luis Obispo Countywide Regional Compact and direct staff to continue discussing ways to utilize and implement the Regional Housing and Infrastructure Plan.

FISCAL IMPACT:

There is no fiscal impact from the recommended action. The HIP does not require the City to take any additional action or expend any funds. However, the HIP is anticipated to have a substantial effect on future regional infrastructure funding decisions.

ALTERNATIVES:

1. Do not support the Regional Housing and Infrastructure Plan.

2. Provide alternative direction to staff.

ATTACHMENTS:

1. Draft Regional Housing & Infrastructure Plan

1.A. Housing Needs and Highlights

1.B. Appendix A: Draft List of HIP Infrastructure Priorities

1.C. Appendix B: Affordable-by-Design Study Preliminary Information

1.D. Appendix D: Regional Compact & Housing Element Regional Chapter Submitted by: Meeting Date: July 18, 2023
Matthew Downing, Community Development Director
Interim City Manager Approval:

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Attachment 1

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1| HIP

ACKNOWLEDGEMENTS PAGE
Attachment 1

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2| HIP

CONTENTS
HIP Summary.................................................................................................................................................... 4 Data and Project Inventory ........................................................................................................................... 6 Housing ..................................................................................................................................................... 7 Water & Wastewater .............................................................................................................................. 7 Transportation......................................................................................................................................... 7 Bonus Layers............................................................................................................................................ 8 Housing Efficiency Analysis............................................................................................................................ 8 Infrastructure Prioritization........................................................................................................................... 8 Findings........................................................................................................................................................10 Future Data Considerations................................................................................................................12 HIP Mapping Tool..........................................................................................................................................14 Affordable-By-Design Study........................................................................................................................15 Rental Preliminary Findings ................................................................................................................16 For-Sale Preliminary Findings.............................................................................................................18 Market Conditions.................................................................................................................................19 Funding Strategies Assessment.................................................................................................................20 Housing Highlights........................................................................................................................................21 Stakeholder Engagement Strategy........................................................................................................21 Regional Housing Success Stories.........................................................................................................23 Next Steps.......................................................................................................................................................23 Appendix..........................................................................................................................................................23 Appendix A: Draft List of HIP Infrastructure Priorities........................................................................23 Appendix B: Affordable-by-Design Study Preliminary Information................................................23 Appendix C: Funding Strategies Assessment Preliminary Information ........................................23 Appendix D: Regional Compact & Housing Element Regional Chapter .......................................23 Appendix E: Additional Housing Data July 2023 .................................................................................23 Attachment 1

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3| HIP

FIGURES
Figure 1: HIP Elements................................................................................................................................... 5 Figure 2: Draft HIP Priority Projects Summary.......................................................................................... 5 Figure 3: Data Inventory Sources................................................................................................................. 6 Figure 4: HIP Mapping Process .................................................................................................................... 8 Figure 5: HIP Analysis Process...................................................................................................................... 9 Figure 6: Draft HIP List Summary...............................................................................................................10 Figure 7: Priority Projects by Community.................................................................................................11 Figure 8: Multijurisdictional Projects by Priority.....................................................................................11 Figure 9: Priority Projects by Subregion...................................................................................................12 Figure 10: Future Data Considerations by Community........................................................................13 Figure 11: Future Data Considerations by Subregion...........................................................................13 Figure 12: San Luis Obispo County’s Rent and Sale Price Limits (May 2022)..................................15 Figure 13: Feasibility of Rental Prototypes by Subregion.....................................................................17 Figure 14: Key Takeaways from Financial Feasibility Analysis (Rental) ..............................................17 Figure 15: Market Conditions for Lower-Cost Housing........................................................................19 Figure 16: Public Sector and ABD Market Conditions............................................................................20 Figure 17: HIP Stakeholder Process...........................................................................................................22 Attachment 1

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4| HIP

HIP SUMMARY
The Regional Housing & Infrastructure Plan (HIP) is a collaborative action plan between nine local jurisdictions in response to the San Luis Obispo region’s growing housing and infrastructure shortage. The HIP is intended to help accelerate housing development where it makes the most sense given regional conditions and readiness. The HIP inventories infrastructure barriers to housing, identifies funding to implement infrastructure needs, and develops foundational information for the future 2027 Regional Housing Needs Assessment (RHNA).

In 2018, the County of San Luis Obispo recognized the need to work regionally in solving the critical shortage of infrastructure resources and housing attainability in San Luis Obispo County. This challenge is larger than any one jurisdiction can solve alone. In January 2019 the County Board of Supervisors approved the kick off of this effort. Since inception, the HIP has always been a phased approach with the goals of regional collaboration, strategic action planning, and aligning land use planning documents.

The Regional Compact (April 2020)
The County, seven Cities, and San Luis Obispo Council of Governments (SLOCOG) approved the first major milestone of the HIP - the San Luis Obispo Countywide Regional Compact. The Regional Compact is an aspirational document that sets the tone and goals for future recommended plans and actions among the local agencies. It establishes a united regional framework to unlock the potential to develop an adequate supply of housing and resilient infrastructure that support our economic prosperity. It recognizes that people, water, transportation, connectivity, and housing form the foundation of the San Luis Obispo region’s healthy, livable communities and thriving economic opportunity.

Housing Element Alignment (June 2020)
The County and the seven Cities were each required to update their jurisdiction's Housing Elements to reflect how local communities are planning for the State’s 6th Cycle Regional Housing Needs Allocations through 2028. The Housing Elements were submitted to the Housing and Community Development (HCD) in December 2020. As part of the Housing Element update process, the regional approach section was developed to showcase the ongoing commitment of each agency to the HIP collaboration. This section presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. It was the first time all seven jurisdictions included a regional approach chapter in their required housing elements.

Regional Housing and Infrastructure Plan (2022-2023)
Put on hold during the Pandemic, the HIP was revived in June 2022 with the establishment of a Memorandum of Understanding between the County of San Luis Obispo and SLOCOG.

SLOCOG became the project manager of the effort. With Senate Bill 2 funding sunsetting in September 2023, the HIP began moving at an accelerated pace. There are seven elements of Attachment 1

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5| HIP
the HIP and they are listed in Figure 1: HIP Elements. These elements intertwine and build upon one another.

Figure 1: HIP Elements
HIP Element Informs
Data and Project Inventory Infrastructure barriers to housing Housing Efficiency Analysis Housing Efficient Areas in HIP Infrastructure Prioritization Region’s highest priority projects to unlock housing HIP Mapping Tool Living strategic analysis tool used to show the interrelation between housing and infrastructure
Affordable-by-Design Study Menu of possible policies to increase housing attainability Funding Strategies Assessment Funding the region could pursue for priority infrastructure Housing Highlights Communication tool: Understanding the need for housing, affordability, and opportunities
There were 430 infrastructure projects collected as part of the data inventory. Of those, 18% (78 projects) were located within Housing Efficient Areas. The 78 projects were ranked using a three-tiered prioritization process based on potential new housing units served. The estimated cost for all 78 HIP projects is a little under one billion dollars. About one third of the projects are water related with the remaining being transportation improvements. The estimates for each prioritized category are relatively similar around $300 million.

Figure 2: Draft HIP Priority Projects Summary
Estimate
($ Millions)Projects
Estimate for all HIP Projects $ 919 78
High $ 323 53
Medium $ 315 9
Low $ 281 16
HIP 2023+
The HIP is the first of its kind, and it is intended to be a living document. For the last five years, collaboration has continued to build, and these incremental steps have allowed the region to make progress in addressing the monumental challenges of the housing and infrastructure shortage.Next steps to follow stakeholder guidance during Summer 2023 Outreach.

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DATA AND PROJECT INVENTORY
The HIP analyzes the transportation, water, and wastewater infrastructure barriers to housing development. Figure 3: Data Inventory Sources, provides the source details on the data used in the HIP analysis.

Figure 3: Data Inventory Sources
DDataa IInputss
TTransportation
HHousing
WWaterr &
WWastewater
FFloodd Risk
SSensitivee Habitatt
OOpenn Space
PPrimee Farmland
FFiree Risk
7 Cities & County Planning Staff (Land Use
Model, 2022 Transportation Efficiency Analysis
(TEA), 2020 Housing Elements, Developer
Updates
DDataa SSources
44 water & wastewater entities surveyed,
Community Improvement Plans reviewed
7 Cities & County Public Works Staff, 2023 RTP
Projects List, 2022 TEA
Federal Emergency Management Agency’s
“Flood Insurance Rate” map
California Department of Fish and Wildlife
“Biogeographic Information Observation
System (BIOS)”
California Protected Areas Database and the
California Conservation Easement Database,
2023
Farmland Mapping and Monitoring Program
(FMMP) 2018
CALFIRE High Fire Hazard Severity Zones
(2023), Local Jurisdictions GIS teams
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HHousingg
Proposed residential developments within the seven cities and unincorporated county were collected from planning staff in 2021. This data includes specific plans, proposed residential and mixed-use projects projected for to be built between now and 2045. Residential development that has been completed or near completion was removed from the HIP analysis.

Waterr && Wastewaterr
In early January 2023, SLOCOG staff contacted the 44 water and wastewater agencies found in the 2021 Regional Water Infrastructure Resiliency Plan. Five initial questions were asked to the agencies:

1. Is your agency fulfilling its water/wastewater service demand?

2. Do you have capacity to serve additional housing units?

3. Is your agency experiencing any infrastructure limitations or does it have any infrastructure needs?

4. Have they been planned for?

5. Is there a cost estimate for these improvements?
The data collected includes the findings of the 2021 Regional Water Infrastructure Resiliency Plan, agency responses, local capital improvement project lists, and information from the County of San Luis Obispo’s Water Team. Water and wastewater service districts were used as water boundaries. Detailed GIS based data from these agencies is limited and water capacity data will be informed by the County’s Master Water Report Update. However, infrastructure projects, estimated costs, and timing were all collected. In 2023, forty-five water and wastewater projects were collected from the agencies.

Transportationn
Transportation infrastructure was studied in the Transportation Efficiency Analysis (TEA) which the SLOCOG Board approved in April 2022. The TEA identified transportation barriers to housing production which resulted in a list of transportation projects that were prioritized as either land use necessitated or land use beneficial. Land use necessitated projects were transportation projects required for new housing development. These projects are considered TEA priority projects because they are needed to accelerate housing development. Land use beneficial projects are transportation projects that are not required for housing development but improve the transportation efficiency of an area. Of the 350+ transportation investments contained within in the 2023 Regional Transportation Plan (RTP), 64 transportation investments were identified as TEA projects. The San Luis Obispo Regional Transit Authority (RTA) provided details on transit projects and additional improvements needed to best serve additional housing development. The transportation infrastructure list was further refined in the HIP analysis and prioritized differently.

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BBonuss Layerss
The HIP analysis provides the data that connects infrastructure and housing on a regional scale for the first-time. The 2023 effort is also the first phase of the analysis. When planning for housing, land conditions carefully considered. To provide a fuller picture, flood risk, sensitive habitat, open space, prime farmland, and fire risk were all included as additional reference information. These were not used to remove infrastructure projects from the HIP list but are there to provide additional context.

HOUSING EFFICIENCY ANALYSIS
The HIP Infrastructure Analysis looks at three efficiency factors: transportation access, water capacity, and wastewater capacity. By combining the three efficiency factors, housing efficient areas were identified. This is graphically represented in Figure 4: HIP Mapping Process. Any infrastructure projects located in the “efficient” or “potential” mapped areas moved on to the prioritization phase. All areas and projects that were considered “limited” were removed from further analysis. The Communities of Shandon, Avila Beach, and Cambria were removed from HIP analysis since they did not meet the efficiency criteria.

Figure 4: HIP Mapping Process
There were 430 infrastructure projects collected as part of the data inventory. Of those, 18% (78 projects) were located within a Housing Efficient Area. The 78 projects moved on to the prioritization phase. The flow of the analysis can be seen in Figure 5: HIP Analysis Process

INFRASTRUCTURE PRIORITIZATION
After stakeholder outreach in February and March 2023, a three-tiered approach was selected to prioritize projects. Projects were labeled as high, medium, or low depending on three factors: if the project supports new housing, the benefit/cost (project cost per total potential Attachment 1

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housing units within community), and barriers to development. Barriers to development include instances such as a building moratorium. These barriers are outside the controls of the HIP and slow housing development. The entire analysis and prioritization process can be seen in Figure 5.

Figure 5: HIP Analysis Process

LLIMITED
Missing 2 of the 3
efficiency factors –
limited capacity for
housing acceleration
Located in Job Cluster
Include any Infrastructure
Needs in HIP
FFuturee Add--iins::
x Job clusters data
x Master Water Report data
x Transportation
Access Factors:
x 1 mile from
interchange
x ½ mile from a bike way
x ½ mile from bus stop
x Has water capacity
x Has wastewater
i

EEFFICIENTT PPOTENTIAL
FFuturee Add--iins::
x Job clusters data
x Master Water Report
data
Missing 1 of the 3
efficiency factors
High Medium
Needed to support
new housing
Limited barriers to
development
Low
Outside barriers to
development that
would likely delay or
prohibit
development
Low Benefit/Cost
Needed to support
new housing
Limited barriers to
development
Located in Jobs Cluster
HHousing Efficient Areas (HEA) Analysis
Considers 3 efficiency factors: (1) transportation access, (2) water capacity, (3) wastewater capacity High Benefit/Cost Moderate Benefit/Cost
Needed to support
new housing
Combine HIP Projects from Efficient & Potential HEA
into one list and prioritize
HIP Project Prioritization
Considers: (1) if project is needed for new housing, (2) Benefit/Cost (investment cost per additional potential housing units served), (3) barriers to development Include any
infrastructure needs
that would help make
area efficient
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WWATER
$$296M

TTRANSPORTATION
$$618M
Infrastructure projects were divided into two lists, water and transportation, and then prioritized. It was concluded that transportation projects, in general, could be built at various stages of housing development. Whereas, housing cannot be built without adequate water distribution and collection infrastructure. Each list was sorted by highest benefit/cost. The total funding need for the list was divided by three to categorize projects as high, medium, or low.

The premise of the HIP is to help accelerate housing development, so the current prioritization factors relate solely to the total amount of proposed housing. In the future, other factors like jobs-housing balance factors and proposed housing unit type could be considered.

Findings
The draft HIP list contains 78 infrastructure projects with an estimated cost of nearly one billion dollars in need. As seen in Figure 6: Draft HIP List Summary, about one third of the needed infrastructure investments are water-related (supply & wastewater) and two-thirds are transportation-related. Interestingly, each priority category (high, medium, low) are relatively similar at around $300 million. However, the cost of nine medium ranked projects is equivalent to 53 high priority projects.

Figure 6: Draft HIP List Summary
Figure 7: Priority Projects by Community breaks down the total number of HIP priority projects, the total investment needed for each proposed housing unit, and the total estimate investment needed by community. Within the 78 total projects, three are listed as multijurisdictional projects including Central Coast Blue, the Regional Transit Authority Cashless Fare System Conversion, and the North County Transit Charging Facility. In Figure 7, these are listed as a separate row and are not included individually in the "HIP Projects" column for each community. However, multijurisdictional project costs are included in the community's total investment needed. The number of multijurisdictional projects by priority can be seen in Figure 8.

Estimate
($ millions)Projects
Total Estimate $ 919 78
High $ 323 53
Medium $ 315 9
Low $ 281 16
WATER $ 301 19
TRANSPORTATION $ 618 59
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Figure 7: Priority Projects by Community
Community
Total
Proposed
Dwelling
Units
HIP
Projects High Medium Low
Total Investment
needed per
proposed unit
Total Estimated
Investment
Needed ($
millions)
Multijurisdictional*3 2 1 $ 95
Arroyo Grande 600 1 1 $ 227,254 $ 136 Atascadero 722 2 1 1 $ 23,734 $ 17 Grover Beach 624 4 3 1 $ 85,920 $ 54 Morro Bay 120 1 1 $ 183,368 $ 22 Paso Robles 4,959 17 16 1 $ 37,055 $ 184 Pismo Beach 297 $ 61,179 $ 18 San Luis Obispo 6,171 26 23 3 $ 43,197 $ 267 County 2,221 22 6 3 13 $ 77,286 $ 172 Cayucos 7 2 1 1 $ 1,185,714 $ 8 Los Osos -3 3 $ -$ 15 Nipomo 1,351 6 4 1 1 $ 25,171 $ 34 Oceano 4 1 1 $ 950,000 $ 4 San Miguel 152 1 1 $ 269,737 $ 41 Santa
Margarita 514 1 1 $ 2,918 $ 2 Templeton 193 7 1 1 5 $ 341,647 $ 66 Cal Poly 2,780 2 2 $ 17,986 $ 50 Total Projects 15,714 78 53 9 16 $ 58,547 $ 920 Priority Category Total Cost Estimate ($
millions)$ 323 $ 315 $ 281
Figure 8: Multijurisdictional Projects by Priority
Community Multijurisdictional HIP
Projects High Medium Low
Arroyo Grande1,2 2 1 1
Atascadero2,3 2 2
Grover Beach1,2 2 1 1
Morro Bay2 1 1
Paso Robles2,3 2 2
Pismo Beach1,2 2 1 2
San Luis Obispo2 1 1
County2,3 2 2
The 3 multijurisdictional projects include the following:Central Coast Blue1, Cashless Fare System Conversion 2, North
County Charging Facility3
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Ninety-nine percent of the region’s population lives in four out of five subregions: North County, Central County, North Coast, and South County. Both North and Central County have 29 HIP projects. Even though projects in these two regions make up the majority of the HIP list, North County and Central County combined make up 81% of the proposed new housing units in the region.

Figure 9: Priority Projects by Subregion
Subregion Total Proposed
Dwelling Units
HIP
Projects High Medium Low
Total Investment
needed per
proposed unit
Total
Estimated
Investment
Needed
($ millions)
North County 6,540 29 20 3 6 $ 47,401 $ 310 Central County 6,171 29 25 3 1 $ 51,693 $ 319 North Coast 127 6 0 1 5 $ 354,331 $ 45 South County 2,876 13 7 2 4 $ 85,535 $ 246 The draft list can be viewed in Appendix A: HIP Project List.

FFuturee Dataa Considerationss
Creating balanced communities is one of the six 2020 Regional Housing Compact goals. The 2023 Sustainable Communities Strategy defines a jobs-housing balanced community as A community where residents can both live and work. With jobs and housing in close proximity, vehicle trips and commute times reduce and active transportation and transit use increase. These balanced communities also provide a broad mix of housing options to accommodate households with a range of incomes.

As a proactive measure, the jobs-housing balance of communities was analyzed using live/work percentages. A live/work percentage is the total number of employees living and working in the city or community boundaries divided by the total workers living in that boundary. In future iterations of the HIP, jobs-housing balance could be integrated through the live/work percentage and additional job cluster data as mentioned in Figure 5: HIP Analysis Process. The data displayed in
Figure 10 and Figure 11 was not used to prioritize projects in the 2023 HIP. The information is for reference purposes only. This information is included since it relates to goals found in the 2020 Regional Housing Compact, HIP stakeholder interest, and or relates to the 2023 Affordable-by-Design Study. The 2023 Affordable-By-Design Study has shown that units within the multi-family category are more aligned units in the low- and moderately-priced income Attachment 1

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categories. Understanding the proposed multi-family percentage of each community provides better insight on how the region will fulfill the needs of working households.

Figure 10: Future Data Considerations by Community
Community
Number of Total
Proposed
Dwelling Units
% of Multi-
family units
proposed
Live Work
Percentage
Arroyo Grande 600 18%14%
Atascadero 722 75%21%
Grover Beach 624 81%9%
Morro Bay 120 47%21%
Paso Robles 4,959 42%28%
Pismo Beach 297 30%12%
San Luis Obispo 6,171 58%41%
County 2,221 25%
Cayucos 7 0%13%
Los Osos - 0%11%
Nipomo 1,351 34%9%
Oceano 4 100%4%
San Miguel 152 0%3%
Santa Margarita 514 10%2%
Templeton 193 19%12%
Total 15,714
Source: Longitudinal Employer-Household Dynamics (LEHD) 2019, SLOCOG GIS Figure 11: Future Data Considerations by Subregion
Subregion
Number of Total
Proposed
Dwelling Units
% of Multi-family
units proposed
Live Work
Percentage
North County 6,540 42%40%
Central County 6,171 58%44%
North Coast 127 44%27%
South County 2,876 41%27%
Source: Longitudinal Employer-Household Dynamics (LEHD) 2019, SLOCOG GIS Attachment 1

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HIP MAPPING TOOL
The HIP Mapping Tool was created to display GIS analysis and foster future collaboration. The tool was created using ArcGIS Experience Builder, ArcGIS Online, and ArcGIS Storymaps. Users have the ability to pan around the map in the "Explore" tab and turn map layers on and off.

The "Project List" tab allows the user to browse through HIP projects categorized by transportation or water projects and is color coded by priority category. When a project is selected on the list, the map will zoom to the project. The user may also click on projects from the map to view a pop-up showing the name, description, and estimated cost. The "Story" tab of the tool gives a summary of the HIP and provides the four-step process of how the analysis was carried out in GIS. Individual layers are shown along with project tables.

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AFFORDABLE-BY-DESIGN STUDY
The Affordable-by-Design (ABD) Study evaluates housing affordability characteristics for the seven incorporated Cities and unincorporated San Luis Obispo County. The intention of the ABD study is to show certain units (built without financial assistance or deed restrictions) as either low- or moderate-income units in annual Housing and Community Development RHNA reports. For purposes of the ABD Study, “affordable by design” (ABD) is defined as new housing that is not income- or rent-restricted, but where typical market rents or sales prices would be affordable to low or moderate-income households (earning 50-120% of Area Median Income).

The San Luis Obispo County’s published rent and sale price limits by income level define the rent and price range affordable at this income level as seen in Figure 12.

Figure 12: San Luis Obispo County’s Rent and Sale Price Limits (May 2022) Attachment 1

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The ABD Study includes the following approach:

1. Identify common physical characteristics for ABD housing

2. Interviews with local housing developers

3. Consider whether ABD housing examples from other regions could meet ABD criteria in SLO County’s market

4. Financial feasibility analysis of illustrative “prototypical” development examples

5. Identify regulatory barriers to development to ABD housing

6. Highlight potential policy measures to support ABD housing EcoNorthwest used development “prototypes” to highlight characteristics of housing that could potentially meet the Study’s ABD definition. These are prototypical developments informed by (or extrapolated from) actual development. Each development prototype is a specific combination of key characteristics, such as number of units and configuration (e.g., detached, attached side-by- side, stacked), Lot size / density, height, unit size and parking. In May 2023, preliminary findings were presented to five stakeholder groups. The following information provides a brief summary and more preliminary information can be viewed in Appendix B: Affordable-by-Design Study Preliminary Information. The final report will be completed in July for SLOCOG Board consideration in August.

RRentall Preliminaryy Findingss
On the rental side of new development (within the last 5 years), some new apartments are affordable at a moderate-income level. This may include some mixed-income buildings but 1- bedroom units are most likely to be affordable whereas no 3-bedroom units are categorized as affordable. Design helps but does not guarantee affordability. Most of the buildings that fit within the ABD definition are 3-story, they have a smaller average unit sizes, but not all small units are affordable to moderate-income households.

EcoNorthwest looked at examples from other housing markets within California, Washington, and Oregon to add a few possibilities to a financial feasibility analysis. These protypes included:

A. 3-story walk-up apartments—standard
x Larger units (~880 sf average)
x Typical density, parking ratio, and landscaping
B. 3-story walk-up apartments—compact
x Smaller units (~620 sf average)
x Higher density, lower parking ratio, less landscaping C. 4-story micro-unit apartments
x Very small units (~300 sf, shared kitchens, individual kitchenettes) x Very high density, no parking, no landscaping
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Figure 13: Feasibility of Rental Prototypes by Subregion The financial feasibility analysis uses a metric called “return on cost” (ROC), which reflects the income potential of the completed development0F
1 divided by the total cost of development.

This ratio is often used as an initial indicator of development feasibility for rental developments, as it provides a preliminary indication of whether the completed property will provide competitive financial returns that could attract investors and meet loan underwriting requirements. More data on the Market Assumptions can be found in Appendix B: Affordable- by-Design Study Preliminary Information.

Figure 14: Key Takeaways from Financial Feasibility Analysis (Rental)

1 Net Operating Income (NOI), the revenue after accounting for vacancy and operating expenses.

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FFor-Salee Preliminaryy Findingss
In the last five years, only manufactured housing in manufactured home parks met target price points for new for-sale housing using County calculations. This does not factor in the lot cost associated with manufactured home parks. There are few small detached homes that came close and could potentially meet the City of San Luis Obispo’s affordability standards since they calculate income limits differently. Looking at examples from other housing markets:

A. Small detached units
x ~350-800 square feet units
x Shared yards with clustered parking
x Smallest units may be affordable at close to 120% of AMI in that market x Affordability:: Comparable Units in SLO region exceed target price B. Small condo units
x ~325-600 square feet units
x Little or no on-site parking
x Can be affordable to Moderate Income households in portions of some high- cost regions
x Feasibility:May not be viable in SLO region’s market
C. Simple condo development
x ~600-1000 square feet units
x Little or no on-site parking with few shared amenities x Can be affordable to Moderate Income households in portions of some high- cost regions.
x Feasibility:May not be viable in SLO region’s market
D. Smaller townhouse units
x ~1,000-1,600 square feet units
x Can be affordable to Moderate Income households in portions of some high- cost regions
x Affordability:Comparable units in SLO region exceed target price E. Smaller single-detached homes
x 3BR, ~1200-1500 square feet units
x Can be affordable to moderate-income households in moderate-cost areas (e.g., Central Valley)
x Affordability:Comparable units in SLO region exceed target price San Luis Obispo’s regional market conditions do not support new for-sale housing at prices affordable to moderate-income households, with the possible exception of manufactured homes in housing parks. A few developments have attempted to produce ABD for-sale housing, but even with very small homes, prices are still too high for the moderate-income target price range. Factors that make for-sale housing more affordable in other areas may not translate to the SLO County market (lower land cost, no parking, few amenities, micro units).

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MMarkett Conditionss
In summary, the rental market is close and regulatory change could help with smaller units in cost-effective developments. The market is not close in the for-sale side and a longer-term approach is needed. Increasing the housing production overall can help bring supply and demand into balance and make ABD achievable over the longer term. These preliminary findings are not surprising but sobering. Looking at a wide-angle view, ECONorthwest looked at what conditions make for lower-cost housing.

Figure 15: Market Conditions for Lower-Cost Housing
As seen in Figure 15: Market Conditions for Lower-Cost Housing, there are four factors that have to come together in the housing market to product lower-cost housing including simple design with lower-cost materials, lower cost locations, efficient production, and smaller units with a higher density.

A primary deliverable for the ABD Study is to create a menu of policy change options that will incentivize ABD units in the region. Figure 16 depicts how the public sector impacts the conditions for ABD. ECONorthwest interviewed six developers that work within the San Luis Obispo Region. Those interviews provided four market barrier themes to ABD Development including land cost, demand for high-end housing, construction costs, and demand for parking.

They also identified six regulatory barrier themes to ABD development including: discretionary review, density caps, minimum unit sizes, parking requirements that exceed market demand, impact fees and inclusionary zoning, and required infrastructure improvements. More of these details will be made available in July.

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Figure 16: Public Sector and ABD Market Conditions
In coordination with HIP stakeholders, ECONorthwest identified potential policies and incentives that local governments in the region could implement to support ABD housing development. In the next few months, the consultant will identify relevant case studies from jurisdictions that have implemented programs or policies similar to the relevant incentives, and, where possible, the impact they have had on housing production for ABD housing.

FUNDING STRATEGIES ASSESSMENT
The Funding Strategies Assessment seeks to identify funding and financing sources that can reasonably implement the water, wastewater, and transportation infrastructure needs of the HIP. BKF Engineering has drafted a grant inventory that connects each specific HIP project to various public sources of funding. They also include a grant glossary with factors such as eligibility requirements, deadlines, funding amounts available. These draft pieces can be reviewed in Appendix C: Funding Strategies Assessment Preliminary Information.

A Gap Analysis is currently being conducted which aims to determine the difference between the required funding for the projects and the potential funding that can be secured through grants and other funding sources. The Gap Analysis approach includes:

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1. Assessing the Projects & Determining Funding Requirements:

2. Identifying Potential Funding Sources

3. Estimating Potential Grant Funding

4. Calculating the Funding Gap

5. Proposing Strategies to Bridge the Funding Gap
The Funding Strategies Assessment will include a detailed breakdown on a project-by-project basis, covering funding requirements, corresponding funding sources, projected grant funding, and the residual funding gap, including shortfalls and match requirements. An actionable timeline and a roadmap, along with recommendations for implementing the proposed strategies aimed to maximize the probability of securing the requisite funds for HIP projects.

The complete Funding Strategies Assessment will be available in July/August.

HOUSING HIGHLIGHTS
Stakeholder Engagement Strategy
The HIP engagement strategy established four outreach objectives:
x Foster ongoing collaboration and buy-in among private and public stakeholders. x Remind government/elected officials of the Regional Compact and the motives behind it to lay groundwork for their commitment to the 2023 regional HIP. x Build public sentiment in support of solutions and regional planning efforts related to HIP.
x Support effective coordination with and communication among SLOCOG, HIP consultants and the Comprehensive Economic Development Strategy (CEDS) teams.

The San Luis Obispo region has strategic goals for the future of housing and infrastructure, but they can only be achieved through the decisions and actions of organizations and stakeholders.

The stakeholder meetings are designed to have honest conversations about what each organization can and needs to do to realize those goals.The December 2022 Regional Managers Retreat guided the stakeholder engagement process which is depicted in Figure 17: HIP Stakeholder Process.

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Figure 17: HIP Stakeholder Process
The following list are the key stakeholder groups engaged – totaling approximately 100 individuals that participated during the HIP development process in January - June 2023:

Regional Managers/ Key Staff: A key driving force behind developing this plan has been regional leadership, including eight City Managers, County Administrative Officer, SLOCOG Executive Director (and key directors from their organizations).

Elected Officials: Two City Council Members with knowledge of regional differences bring the various perspectives and concerns voiced by their respective constituents for this Steering Committee. The full 40 elected officials within the region will have an opportunity to hear about the plan through public updates to SLOCOG Board as well as through presentations of the recommended HIP to their Councils and Boards in Summer 2023.

Building & Development Cluster: Leaders in the building and development industry that convene quarterly with the goal of regional coordination focused on aligning housing and infrastructure needs to create a strong local economy.

Housing Advocacy Group: Organizations and individuals that have significant influence in the community, with representation from the non-profit builders, local chambers of commerce and various advocate organizations.

Housing Action Team: Existing work group made up of planning/ community development staff from Cities, County, and SLOCOG.

Community Stakeholders: The broader community will be engaged in partnership with the SLO Chamber of Commerce Housing Summit in Spring 2023. Feedback from this event will be brought to the HIP Steering Committee to discuss and adjust the communications plan accordingly.

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HIP Steering Committee: Formed to oversee the vision for the HIP Outreach Strategy and to bring leaders in each of these areas together, aligning and integrating the various interests that will lead to action on the region’s priorities.

A HIP Steering Committee was selected to represent broader interests and to allow for cross- sector collaboration and cohesion. It is a small group of representatives with a balance of public and private backgrounds and a variety of expertise in issues related to development around the region. The HIP Steering Committee guided the development of a balanced plan, and helped to identify paths for the plan’s successful adoption and implementation. The HIP Steering Committee includes Matthew Bronson (Grover Beach), Mayor Heather Moreno (Atascadero), Councilmember Andy Pease (SLO City), Trevor Keith (County of SLO), Aaryn Abbott (Abbott | Reed), Lenny Grant (RRM), Jeff Eckles (SLOCHTF), Courtney Howard (SLO Flood Control & Water Conservation District), Anthony Palazzo (Cal Poly), and Jorge Aguilar (Wallace Group).

Regional Housing Success Stories
Available following Summer 2023 Outreach

NEXT STEPS
Available following Summer 2023 Outreach

APPENDIX
Appendix A: Draft List of HIP Infrastructure Priorities Appendix B: Affordable-by-Design Study Preliminary Information Appendix C: Funding Strategies Assessment Preliminary
Information
Appendix D: Regional Compact & Housing Element Regional Chapter
Appendix E: Additional Housing Data July 2023
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Housing Needs and Highlights
July 2023
Prepared for: San Luis Obispo Council of Governments
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SETTING THE STAGE FOR NEW PROGRESS
San Luis Obispo County has long been prized for its quality of life, but the perception is increasingly overshadowed by high, often out-of-reach housing costs.

It’s an issue that ripples throughout the community, and one that holds our collective future.

What’s at stake is whether SLO County becomes a place where our children, friends and neighbors are forced to move elsewhere in search of housing they can afford, where our local businesses are stunted because they can’t find or keep employees — or whether we work collaboratively to build a housing stock sufficient to achieve balanced communities.

There have been bright spots of success: thoughtful projects developed with engagement from the community, progress in streamlining processes and allowing new types of housing. There’s been increased collaboration between cities as well as between public and private partners.

Through these collaborations, projects are shifting to balance community character and ranges of affordability. These are positive steps. Meeting the scale of the need, however, requires a strategic, coordinated approach.

The seven Cities, SLO County and SLOCOG lit the path with the 2020 Regional Compact, a shared commitment to developing the housing and infrastructure needed to support vibrant communities and economic prosperity. The Regional Housing and Infrastructure Plan folds in the strategic framework and private-sector engagement to operationalize that commitment.

To supplement those components, here’s a quick look at what’s driving the effort, some highlights of progress, and the opportunities ahead.

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THE CASE FOR ACTION

1. Sufficient housing is a vital element of a healthy
community and economy.

This encompasses a diversity of housing types across
income types.

2. Housing production on the Central Coast has not
kept pace with community needs.

Like many communities, the Central Coast has a severe
housing shortage that has fueled an affordability crisis.

3. Planned well, new construction can mitigate
impacts of growth.

Increasing housing availability near jobs can reduce traffic, emissions, and other environmental impacts.

4. Action is needed from a spectrum of public and
private sector players.

Each is needed to play their part in a functioning housing ecosystem.

5. A united framework is the key to progress.

With the 2020 Regional Compact as a solid foundation, we can collectively accelerate housing production in a way that makes sense for the region.

Council Agenda 7-18-2023 12.A-31
Packet Page 77

1. SUFFICIENT HOUSING IS A VITAL ELEMENT OF A
HEALTHY COMMUNITY AND ECONOMY.

At its core, housing is about supporting
people’s basic needs. It’s a cornerstone of
a community’s quality of life.

Housing plays an outsized role in individual
and community outcomes, from health
and education to productivity and
prosperity.

For businesses, housing is a key factor in
attracting and retaining local employees,
which in turn influences location and
expansion decisions and ultimately, the
community’s economic resilience.

A healthy housing supply includes a
diversity of housing types across income types.

A diversity of housing options is needed to adequately serve all residents of a community, from growing families needing more space, seniors looking to downsize and workers looking for housing near jobs.

This continuum can also be viewed as a ladder, providing opportunity to move up the rungs.

When rungs are missing or broken, friends and colleagues are forced to move away or set aside dreams of attaining home ownership, which widens the gap for those below to move up, while the number of unsheltered residents swells.

Canada Mortgage and Housing Corporation
Council Agenda 7-18-2023 12.A-32
Packet Page 78

2. HOUSING PRODUCTION HAS NOT
KEPT PACE WITH COMMUNITY NEEDS.

The contributing factors are many and the problem is not unique to SLO County, but the bottom line is our region has not produced enough housing to support our residents and jobs.

This gap has fueled an affordability crisis that reaches into every corner of our community, from young families looking to grow to seniors looking to downsize affordably.

The many impacts span longer commutes as workers seek more affordable housing, parents unable to find childcare,
classroom overcrowding from lack of teachers, and up to year- long waits for rescheduled doctor visits.

Cumulatively, the undersupply of housing is the region’s biggest drag on individual and community prosperity and job creation.

High housing prices widen the income disparity and push jobs that were traditionally middle class, such as nursing, teaching and public safety, down the economic ladder.

Employers struggle to attract and retain workers while workers struggle to find housing near jobs. That’s led to a 6- to 8-month recruitment timeline for public safety positions and local businesses cutting back services or deciding to expand
elsewhere.
“The lack of affordable housing along the
coast is the primary constraint holding back
job expansion.”
—Taner Osman
Research Manager at Beacon Economics and the UCR
Center for Economic Forecasting
Council Agenda 7-18-2023 12.A-33
Packet Page 79

3. PLANNED WELL, NEW HOUSING CAN MITIGATE
IMPACTS OF GROWTH.

Planned and sited strategically, new housing can reduce the strains of growth rather than compound them – building more thriving and sustainable communities. This can be accomplished by building housing close to jobs in areas with the transportation, water and wastewater infrastructure to support them.

Building in housing-efficient areas
closer to jobs:
reduces air pollution from
greenhouse gas emissions
reduces road congestion and
time spent sitting in traffic
reduces sprawl and preserves
agricultural land and open
space
Plus, new units are almost always
more energy- and water-efficient than
existing housing.

The region has long worked to strike a
balance between growth and
preserving our natural amenities. This
has led to projects that enhance our
sense of place by connecting our
commercial corridors, integrating
walking paths through public spaces,
and matching architectural lines with
the shapes of the surrounding hills.

Continuing to grow in a way that makes sense for our region calls for robust analysis of existing infrastructure and resources as well as targeted investment in new infrastructure projects that can pave the way for efficient growth.

Council Agenda 7-18-2023 12.A-34
Packet Page 80

4. ACTION IS NEEDED FROM A SPECTRUM OF PUBLIC AND

PRIVATE SECTOR PLAYERS
An ecosystem of stakeholders contribute to the housing landscape, from the government agencies that set policy and approve projects to the developers and builders who construct them.

It follows that no single agency, jurisdiction or organization can solve our region’s housing and infrastructure challenges alone. Each is needed to play its part in overcoming barriers, streamlining processes and ramping up production.

Source: REACH
Our public and private sectors have worked together on many successful projects and hold the potential to make meaningful progress on our housing shortage. To navigate that road, we must resist pointing fingers and deflecting responsibility and instead rise to the challenges of optimizing our particular role and collaborating toward a shared vision. Collective interests must rise above independent ones in pursuit of outcomes that lift the region as a whole.

Council Agenda 7-18-2023 12.A-35
Packet Page 81

5. A UNITED FRAMEWORK IS THE KEY TO PROGRESS.

A systems-level approach is needed to make headway on such a complex and entrenched challenge.

The 2020 Regional Compact laid the foundation, with a shared regional commitment to accelerate housing production in alignment with values around quality of life, natural resources and inclusivity.

The Regional Housing and Infrastructure Plan provides the tools to put that commitment into action, including pinpointing the most efficient areas for growth, a robust analysis of infrastructure needs, affordable-by-design strategies, and potential funding sources.

These tools enable the region to direct infrastructure and housing development where it makes sense, in harmony with community plans and the need for jobs-housing balance.

The work to align resources, policies and actions lies ahead, but with the signatories committed to acting as partners, this framework holds the promise for SLO County to become a statewide leader in sustaining vibrant communities.

Shared Goals of the Regional Compact
Council Agenda 7-18-2023 12.A-36
Packet Page 82

PROGRESS HIGHLIGHTS
Progress can be seen across the county, from regional leadership and collaboration on housing to growing political and community support. Planners are embracing density and reducing barriers, and new projects are getting built. Here are some highlights.

SLO County
To be added
To be added
To be added
Arroyo Grande
63 affordable units coming to Oak Park
Adopted an ordinance to allow tiny homes
on wheels
Pursuing multiple water projects to meet
current and future needs
Streamlined permitting and reviews to
provide some certainty for developers
Council Agenda 7-18-2023 12.A-37
Packet Page 83

Atascadero
Infill sites and mixed use projects in
commercial zones added density where it
makes sense
Led the County in making stock plans for
ADUs available at no charge
Small ABD cottage home community
project currently in development
Currently drafting a program that will
defer the payment of impact fees for low
and very low housing units
Grover Beach
Rezoned “opportunity sites” for the
potential development of affordable
housing within the city
$48 million invested in improvements to
local streets from Measure K-14
Developing Objective Design Standards for
all new residential and mixed-use projects
Approved projects resulting in 104 units
added to the community
Council Agenda 7-18-2023 12.A-38
Packet Page 84

Morro Bay
Partnership between HASLO and the City
of Morro Bay fully funded a major
affordable housing project
35-unit low income rental project at one of
the primary city entryways
Streamlined review process by increasing
ministerial approvals and adding clarity in
the requirements for applications and
design review
Paso Robles
Oak Park project doubled density while
providing much needed affordable
housing
Creston Corridor Project and Niblick
Corridor Project will help both existing
and future housing added over the next
two decades
Strong history of meeting RHNA numbers
Community voted to approve a ½ percent
sales tax measure (Measure K) and funds to be used for sidewalk and road maintenance
Council Agenda 7-18-2023 12.A-39
Packet Page 85

Pismo Beach
50-unit affordable housing project on 4th
Street and senior affordable housing
project on Shell Beach Road
Adopted a Residential Very-High Density
overlay that allows 50 units per acre for
appropriately zone sites
Adopted ADU regulations that balanced
ADU aims with the Coastal Act
San Luis Obispo City
Preserved 68 residential units for very low
income levels through creative funding
and partnerships
Pro-housing culture in council and staff
SLO Water Resource Recovery Facility
(WRRF) upgrade allows recovery of
resources traditionally classified as waste
214 affordable units under construction
and another 257 affordable units entitled
Streamlined discretionary review
Council Agenda 7-18-2023 12.A-40
Packet Page 86

THE ROAD AHEAD: CHALLENGES AND OPPORTUNITIES.

SLO County’s housing shortage will not be solved overnight. Change will take dedicated focus over years to come. But the scale of the challenge facing our residents and prosperity requires concerted action.

Challenges come in many forms, including: government
workflows/process/procedures, state regulations, CEQA requirements, local ordinances or restrictions, lack of funding, lack of water resiliency or capacity to support growth, and labor costs.

But so do opportunities, from sharing and adopting best practices to collaborating on water supplies or ordinance templates.

The primary opportunities for HIP is to continue as a living strategic planning tool that helps to focus regional effort and offers tools for your agency and your community to consider in the future. More conversations will happen in the future regarding what implementation looks like but it will be important for each agency's continued commitment to making positive progress to address the challenges this county faces.

Council Agenda 7-18-2023 12.A-41
Packet Page 87

Draft Regional Housing Infrastructure Plan Appendix A
Community Total Proposed
Dwelling Units
HIP
Projects High Medium Low Total Investment needed
per proposed unit
Total Estimated
Investment Needed
($ millions)
Multijurisdictional*3 2 1 95$
Arroyo Grande 600 1 1 227,254$ 136$
Atascadero 722 4 2 2 155,313$ 112$
Grover Beach 624 4 3 1 85,920$ 54$
Morro Bay 120 1 1 183,368$ 22$
Paso Robles 4,959 17 16 1 37,055$ 184$
Pismo Beach 297 61,179$ 18$
San Luis Obispo 6,171 26 23 3 43,197$ 267$
County 2,221 22 6 3 13 77,286$ 172$
Cayucos 7 2 1 1 1,185,714$ 8$
Los Osos - 3 3 -$ 15$
Nipomo 1,351 6 4 1 1 25,171$ 34$
Oceano 4 1 1 950,000$ 4$
San Miguel 152 1 1 269,737$ 41$
Santa Margarita 514 1 1 2,918$ 2$
Templeton 193 7 1 1 5 341,647$ 66$
Cal Poly 2,780 2 2 17,986$ 50$
Total Projects 15,714 80 54 10 16 64,592$ 1,015$
323$ 315$ 281$
Subregion Total Proposed
Dwelling Units
HIP
Projects High Medium Low Total Investment needed
per proposed unit
Total Estimated
Investment Needed
($ millions)
North County 6,540 31 21 4 6 61,927$ 405$
Central County 6,171 29 25 3 1 51,693$ 319$
North Coast 127 6 0 1 5 354,331$ 45$
South County 2,876 13 7 2 4 85,535$ 246$
1,015$
Priority Category Total Cost Estimate ($ millions)
*Multijurisdictional projects are listed as a separate row and are not included individually in the "HIP Projects" Column for each community. However, multijurisdictional project costs are included in the community's total investment need. The number of multijurisdictional projects by priority can be seen below.

Page 1 of 9 ends

Attachment 1.B

12.A-42Council Agenda 7-18-2023
Packet Page 88

Draft Regional Housing Infrastructure Plan Appendix A
Community Multijurisdictional
HIP Projects High Medium Low Low
Arroyo Grande1,2 2 1 1
Atascadero2,3 2 2
Grover Beach1,2 2 1 1
Morro Bay2 1 1
Paso Robles2,3 2 2
Pismo Beach1,2 2 1 2
San Luis Obispo2 1 1
County2,3 2 2
The 3 multijurisdictional projects include the following:

Central Coast Blue 1
Cashless Fare System Conversion 2
North County Charging Facility 3

Page 2 of 9 ends

Attachment 1.B

12.A-43Council Agenda 7-18-2023
Packet Page 89

Draft Regional Housing Infrastructure Plan Appendix A
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
High Y 74$ 1,351 Wastewater Nipomo CSA 1 Nipomo Capital Improvement Projects 100,000$ next 5 years High Y 2,083$ 2,780 Water
/Wastewater San Luis Obispo Cal Poly
Increase water storage capacity for
campus domestic use and fire suppression 15,000,000$ by 2026 High Y 2,884$ 4,959 Wastewater Paso Robles Paso Robles City wastewater There are some areas of the City’s
wastewater collection (sewer) system that
must be upsized in conjunction with new
development
14,300,000$ next 10 years
High Y 2,884$ 4,959 Water Paso Robles Paso Robles City water some portions of water system
experiencing infrastructure constraints 14,300,000$ next 10 years High Y 2,917$ 6,171 Water
/Wastewater San Luis Obispo
San Luis Obispo (City)
capacity constraints on sewer conveyance
network, additional water storage tanks
and water transmission main needed
18,000,000$ n/a
High Y 2,918$ 514 Water Santa Margarita CSA 23- Santa Margarita undersized pipelines, pipeline loops 1,500,000$ n/a High Y 4,861$ 7,200 Water
/Wastewater San Luis Obispo Cal Poly
plans to build on-campus Water
Reclamation Facility 35,000,000$ by 2026
High Y 13,850$ 722 Water Atascadero Atascadero Mutual Water Company treatment facility to remove PFAS
(planning stages)10,000,000$ next 2 years
High Y 34,626$ 722 Wastewater Atascadero
Wastewater Upgrade
Wastewater upgrade to address some
Regional Water Quality Control Board
water quality permitting standards.
25,000,000$ 5-7 years
High Y 1$ 624 Transit Grover Beach Grover Beach Service Addition South County Transit provide service to Urban Reserve (Strawberry Field)
High Y 1$ 1,351 Transit Nipomo Nipomo Service Addition RTA provide service to Dana Reserve *working with developer
High Y 1$ 4,959 Transit Paso Robles Paso Robles Service Addition Paso Express provide service to Beechwood development
High Y 1$ 4,959 Transit Paso Robles Paso Robles Service Addition Paso Express provide service to Olsen/South Chandler development
High Y 1$ 6,171 Transit San Luis Obispo San Luis Obispo Service Addition SLO Transit provide an additional stop along Board or Tank Farm
High Y 1$ 6,171 Transit San Luis Obispo San Luis Obispo Service Addition SLO Transit provide access between
Broad and South Higuera in the Margarita
Area
High Y 35$ 15,714 Transit Countywide Cashless Fare System Conversion (further study is required)550,000$
High Y 72$ 624 Active TransportationGrover Beach S. 4th St. bike lanes: Grand Ave. to city limits
Restripe to provide Class II/Class IV bike
lanes 45,000$ Unconstrained
High Y 149$ 624 Active TransportationGrover Beach The Pike Complete Street Improvements striping, bike lanes 93,225$ By 2035
*When working with development
early, stop can be added with
minimal cost.
*When working with development
early, stop can be added with
*When working with development
early, stop can be added with
*When working with development
early, stop can be added with
*When working with development
early, stop can be added with
*When working with development
early, stop can be added with
Draft- July 5, 2023 Page 3 of 9
Attachment 1.B

12.A-44Council Agenda 7-18-2023
Packet Page 90

Draft Regional Housing Infrastructure Plan Appendix A
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
High Y 151$ 6,171 Active TransportationSan Luis Obispo Froom Ranch Frontage & Streetscape Improvements
Install sidewalks on west side and median
between Irish Hill Plaza and Calle Joaquin.932,250$ By 2028 High Y 153$ 6,540 Transit North County North County Charging Facility Charging facility at 1735 Paso Robles St., Paso Robles 1,000,000$
High Y 162$ 6,171 Non-Highway San Luis Obispo Los Osos Valley Rd/Auto Park Wy Intersection Improvements
Install traffic signal, median refuges, hi-vis
crosswalks and bicycle protected
intersection element
1,000,000$ By 2028
High Y 248$ 6,171 Active TransportationSan Luis Obispo Tank Farm Road Complete Street Convert from 5-lane to 3-lane, add Class
IV bikeways, landscaped medians, and
pedestrian crossings
1,533,000$ By 2045
High Y 302$ 6,171 Active TransportationSan Luis Obispo Madonna Rd. - Class IV - Madonna Inn to Higuera Ave.

On Madonna Ave. install Class IV from
Madonna Inn to Higuera Ave.1,864,500$ By 2035
High Y 322$ 6,171 Non-Highway San Luis Obispo Buckley Rd. widening: Thread Ln. to Buttonwood Wy.

Widen Buckley Rd. to provide paved
shoulders, center left turn lane and to
flatten existing horizontal curve
1,988,800$ By 2035
High Y 343$ 4,959 Transit Paso Robles Paso Robles New Route Paso Express provide service to North
Chandler Ranch* $700,000 yearly
operating
1,700,000$
High Y 373$ 6,171 Non-Highway San Luis Obispo Broad St/Tank Farm Rd Intersection Improvements
Add NB right turn lane, WB right turn lane,
and ped/bike crossing enhancements.2,299,500$ By 2045 High Y 496$ 6,171 Non-Highway San Luis Obispo Orcutt Rd. widening: Johnson Ave. to Tank Farm Rd. (Phase 1)
Widen road to three lanes with Class II
bike lanes and sidewalks 3,057,780$ By 2035
High Y 497$ 6,171 Non-Highway San Luis Obispo Johnson Ave/Orcutt Rd Roundabout Install roundabout 3,066,000$ After 2045 High Y 501$ 4,959 Non-Highway Paso Robles South River Rd. / Charolais Rd. roundabout Construct roundabout 2,486,000$ By 2035
High Y 514$ 6,171 Active TransportationSan Luis Obispo Broad St. Median Improvements Install landscaped medians on Broad St. north of Tank Farm Rd.3,169,650$ By 2035
High Y 514$ 6,171 Active TransportationSan Luis Obispo Railroad Safety Trail (Phase 7): Bike connection south of Tank Farm Rd.

Construct Class I bike path and ped/bike
bridge over Tank Farm 3,169,650$ By 2035
High Y 608$ 6,171 Active TransportationSan Luis Obispo Los Osos Valley Road Protected Bike Lanes
Install Class IV bike lanes along LOVR
between Diablo and S. Higuera 3,750,250$ By 2028
High Y 618$ 4,959 Non-Highway Paso Robles Airport Road extension North Chandler Ranch
Extend Airport Road as 2-lane arterial
from Linne Rd. to Union Rd.3,066,000$ by 2045
High Y 619$ 6,171 Non-Highway San Luis Obispo Santa Fe Rd. extension: Santa Fe Rd. to Tank Farm Rd.

Extend Santa Fe Rd north w/ new bridge
over creek and roundabout intersection at
Tank Farm/Santa Fe
3,822,225$ By 2035
High Y 633$ 6,171 Active TransportationSan Luis Obispo Railroad Safety Trail: bike bridge crossing at Industrial Way
Construct bike bridge across UPRR tracks
at Industrial Wy. to the RRST 3,909,150$ By 2045
High Y 648$ 4,959 Active TransportationPaso Robles N. River Rd.Class I trail multi-use paved trail from 13th St. to SR46 along river trail 3,214,500$ By 2028
Draft- July 5, 2023 Page 4 of 9
Attachment 1.B

12.A-45Council Agenda 7-18-2023
Packet Page 91

Draft Regional Housing Infrastructure Plan Appendix A
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
High Y 726$ 4,959 Active TransportationPaso Robles Creekside Bike Path: Phase 1 and 2 Construct path: Nicklaus to Old S. River Rd.3,600,000$ Unconstrained
High Y 745$ 6,171 Active TransportationSan Luis Obispo South of Broad St. and Santa Barbara Ave. Protected Bike Lanes
Install Class IV bikeway on Santa Barbara
(Upham to Broad) and Broad from Santa
Barbara to Farmhouse
4,599,000$ By 2045
High Y 870$ 4,959 Non-Highway Paso Robles Creston Rd.: Niblick Rd. to Meadowlark Dr. (Phase 3)
Install traffic-calming and intersection
improvements- roadway diet and signals 4,313,210$ By 2035 High Y 1,242$ 6,171 Non-Highway San Luis Obispo Horizon Lane Extension Extend Horizon Ln between Buckley and
Tank Farm as commercial collector w/
roundabout at Tank Farm
7,665,000$ by 2045
High Y 1,429$ 6,171 Active TransportationSan Luis Obispo Higuera Protected Bike Lanes Install Class IV bikeways along Higuera from Marsh to southern City Limits 8,817,000$ By 2045 High Y 1,577$ 4,959 Active TransportationPaso Robles Huer Huero Creek Trail Construct Class II bike lanes 7,818,300$ by 2045 High Y 1,615$ 6,171 Non-Highway San Luis Obispo Buckley Rd. widening: Vachell Ln. to Broad St.

Widen to three lanes between Hoover St.
and Broad St.9,964,500$ By 2045
High Y 1,945$ 6,171 Non-Highway San Luis Obispo Prado Rd. Bridge Replacement & Multimodal Corridor Enhancements
Replace SLO Creek bridge w/ 6-lane
bridge (2 each direction + turn lanes),
sidewalks, Class IV bike lanes & construct
2nd NB turn lane from S. Higuera to Prado
and a bicycle protected intersection
12,000,000$ By 2028
High Y 2,014$ 6,171 Highway San Luis Obispo US 101 / Prado Rd. I/C Improvements (Phase 2)
Construct SB off ramp and on ramp; SB
auxiliary lane btw Madonna Rd. to Prado
Rd.
12,430,000$ By 2035
High Y 2,017$ 4,959 Non-Highway Paso Robles Creston Rd.: South River Rd. to Niblick Rd.

Streetscape enhancements and pedestrian
crossing improvements 10,000,000$ By 2028
High Y 2,024$ 1,351 Highway Nipomo Interchange Improvements at Willow Rd US 101 NB & SB ramp signalization 2,734,600$ By 2035 High Y 2,256$ 4,959 Active TransportationPaso Robles Paso Robles Eastside Grand Loop Complete gaps in the Grand Loop Bikeway
Route on the eastside of town, not already
completed by Olsen, Chandler,
Beachwood, North River Rd., and Huer
Huero Creek to complete a connected
orbital Class I network.
11,187,000$ By 2035
High Y 2,484$ 6,171 Non-Highway San Luis Obispo Santa Fe Rd. extension: south of Tank Farm Rd.

Realign and extend Santa Fe Rd. from
Hoover Ave. to Tank Farm 15,330,000$ by 2045
High Y 2,837$ 1,351 Non-Highway Nipomo Roadway Extension of Hetrick Rd Extend Hetrick Rd from Glenhaven Place
to Pomeroy Rd to two travel lanes and 8'
shoulder
3,832,500$ After 2045
High Y 3,091$ 4,959 Highway Paso Robles SR 46E / Union Rd. improvements (Phase 2)
Construct Phase 2 improvements: new
interchange 15,330,000$ by 2045
Draft- July 5, 2023 Page 5 of 9
Attachment 1.B

12.A-46Council Agenda 7-18-2023
Packet Page 92

Draft Regional Housing Infrastructure Plan Appendix A
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
High Y 3,480$ 4,959 Active TransportationPaso Robles
Niblick Rd. Corridor enhancements,
operational improvements, Complete
Streets
Transportation demand management
improvements 17,257,000$ By 2035
High Y 4,186$ 193 Non-Highway Templeton Las Tablas Rd. at Florence St.

Improvements
Traffic signal, ADA ramps, and left-turn
lane at Las Tablas Rd. at Florence St.807,950$ By 2035 High Y 4,386$ 4,959 Highway Paso Robles US 101 / SR 46W I/C construct two roundabouts
Operational improvements: modify
interchange, EB and WB roundabouts
(Phase 3)
21,752,500$ By 2035
Medium Y 41,451$ 193 Water/WastewaterTempleton
Templeton Community Services
District
new sewer force main needed; water
supply availability is a limitation and a
Nacimiento Recharge and Retrieval
Project is needed to add water to the
District water system (will include a new
pipeline turnout, recharge basin, water
filtration and two new wells)
8,000,000$ 2027 or later
Medium Y 42,857$ 7 Wastewater Cayucos Cayucos Sanitary District (wastewater)Capital Improvement Projects 300,000$ 1 year Medium Y 61,144$ 1,521 Water/WastewaterArroyo Grande, Grover Beach, Pismo Beach
Central Coast Blue: GB, AG, PB
Water Supply & Sewer Main
Regional Recycled water project (PB,
GB, AG); Phase 1-pipe treated
wastewater from Pismo Beach’s
Wastewater Treatment Plant (WWTP) to
a new advanced treatment facility
located in Grover Beach. Phase 2 -
expand to treat wastewater from South
San Luis Obispo County Sanitation
District’s WWTP.
93,000,000$ next 5 years
Medium Y 96,953$ 722 Wastewater Atascadero Wastewater Treatment Plant Expansion
Expand the capacity of our wastewater
treatment plant.70,000,000$ Next 2-4 years
Medium Y 4,583$ 6,171 Non-Highway San Luis Obispo Tank Farm Rd. widening: Higuera St. to Broad St.

Widen to five lanes with Class II bike lanes
& Class I paths between Horizon and
Santa Fe
28,283,850$ After 2045
Medium Y 7,360$ 1,351 Non-Highway Nipomo Roadway Extension of North Frontage Rd
Extend North Frontage from Sandydale Dr
to Willow Rd 9,944,000$ By 2035
Medium Y 8,418$ 6,171 Non-Highway San Luis Obispo Prado Rd. extension: South Higuera St. to Broad St.

Construct extension as 4-lane road (plus
median/LT lane), Class I shared-use
paths, and new intersection at Broad St. &
Prado Rd.
51,948,771$ By 2045
Medium Y 9,695$ 722 Highway Atascadero US 101 / Del Rio Rd. I/C modifications
Construct interchange improvements in
association with developments 7,000,000$ By 2028
Draft- July 5, 2023 Page 6 of 9
Attachment 1.B

12.A-47Council Agenda 7-18-2023
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Draft Regional Housing Infrastructure Plan Appendix A
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
Medium Y 10,331$ 6,171 Highway San Luis Obispo US 101 / Prado Rd. I/C and NB auxiliary lane (Phase 1)
Construct Prado Rd. overcrossing; NB
auxiliary lane. Extend Prado Rd. east to
Froom Ranch Way; construct bike lanes,
sidewalks.
63,750,000$ By 2028
Medium Y 10,587$ 4,959 Highway Paso Robles SR 46E / Union Rd. improvements (Phase 1)
Construct overcrossing; realignment,
vertical sight distance improvements,
channelization & bike lanes/sidewalks on
Union Road from Ardmore Road to Barney
Schwartz Park
52,500,000$ by 2028
Low Y 183,333$ 120 Water/WastewaterMorro Bay Morro Bay (City)Fire flow limitations; aging infrastructure 22,000,000$ next 10 years Low Y 269,737$ 152 Water/WastewaterSan Miguel
San Miguel CSD
water pumping capacity, wastewater sewer
treatment capacity, and water water
treatment plant expansion
41,000,000$ 1 to 10 years
Low Y 950,000$ 4 Water/WastewaterOceano
Oceano CSD
Water Resource Reliability Program
(capital improvements), and upgrade of
water mains
3,800,000$ next 10 years
Low Y 1,142,857$ 7 Water Cayucos CSA 10/10A- Cayucos (Cayucos Water Treatment Plant)water line loops and replacements 8,000,000$ next 5 years Low Y -- Building MoratoriumWater Los Osos
S&T Mutual Water Company
pipeline to secure a secondary water
source, which would run between their
water system and the Los Osos CSD,
Shared Bike path Easement
2,900,000$ next 5 years
Low Y -- Building MoratoriumWater Los Osos S&T Mutual Water Company North Water Tank 2,500,000$ next 5 years Low Y -- Building MoratoriumWater/WastewaterLos Osos Los Osos CSD infrastructure to import supplemental water 10,000,000$ next 5 years
Low Y -- Wastewater San Luis Obispo County CSA 18 Los Ranchos Sewer Rehabilitation 1,500,000$ next 10years Low Y 12,875$ 1,351 Non-Highway Nipomo
North Frontage Rd. extension:

Sandydale Rd. to Summit Station
Rd.

Extend North Frontage Rd. from
Sandydale Rd. to Summit Station Rd.17,394,568$ By 2045 Low Y 15,855$ 193 Active TransportationTempleton Las Tablas Rd. Class II bike lanes:

US 101 to Old County Rd.Construct Class II bike lanes 3,060,000$ Unconstrained Low Y 16,101$ 193 Highway Templeton Las Tablas Rd Interchange Improvements
On Las Tablas Rd from Bennett Way to
US 101, widen US 101 SB off-ramp and
add westbound lane
3,107,500$ By 2035
Low Y 24,519$ 624 Active TransportationGrover Beach Beach Cities Trail: Boardwalk Dune Trail Construct bike/ped trail 15,300,000$ Unconstrained Low Y 28,982$ 193 Non-Highway Templeton
Bennett Way connection/ frontage
road: Templeton Hills Rd. to
Vineyard Dr.

Connect Bennett Way between Templeton
Hills Road and Vineyard Drive 5,593,500$ By 2035
Low Y 115,927$ 193 Highway Templeton US 101 / Main St. I/C improvements Reconstruct interchange and widen Main St. from US 101 to Creekside Ranch Rd.22,374,000$ By 2035 Draft- July 5, 2023 Page 7 of 9
Attachment 1.B

12.A-48Council Agenda 7-18-2023
Packet Page 94

Draft Regional Housing Infrastructure Plan Appendix A
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time Horizon
Low Y 119,145$ 193 Highway Templeton Interchange Improvements at Las Tablas Rd
Phase 3 Widening to 5 lanes (Bridge
Removal and replacement) or
Roundabouts
22,995,000$ By 2045
Low Y 166,075$ 600 Highway Arroyo Grande US 101 Traffic Way/El Campo Interchange
Closure of SB Fair Oaks off-ramp & Traffic
Way NB & SB ramps, and all at-grade
access points between Traffic Way and
Los Berros Road and construct new
interchange in the vicinity of El
Campo/Traffic Way.
99,645,000$ By 2045
Estimate Projects
Estimate for all HIP Projects 1,014,252,229$ 80
High 348,000,000$ 54
Medium 385,000,000$ 10
Low 281,000,000$ 16
Water/Wastewater 396,000,000$ 21
Transportation 618,000,000$ 59
Total Purposed Units 15,714
Total Investment needed per purposed unit 64,544$
Total HIP Projects 80
Estimate ($ Millions)Projects
Estimate for all HIP Projects 1,014$ 80
High 348$ 54
Medium 385$ 10
Low 281$ 16
Draft- July 5, 2023 Page 8 of 9
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Draft Regional Housing Infrastructure Plan Appendix A
Pismo Beach Priority Projects
Priority
Supports
new
housing
Benefit/Cost
Proposed
Units within
Community
Outside
Barriers Project Type Community Project Name Project Description 2019 RTP
Time
Horizon
2021 Cost
Estimate
2023 Cost
Estimate
2023 Time
Horizon
Y $ 64,144 297 Water/Waste Pismo Beach Central Coast Blue Regional Recycled water project $ 18,159,763 next 5 years High Y $ 35 297 Transit Pismo Beach Cashless Fare System Conversion (further study is required)$ 10,395
$ 18,170,158
$ 61,178.98
-
TOTAL
Total Investment needed
per proposed unit
Community Specific
Projects
* Multijurisdictional Project Cost Estimate = Total
Benefit/Cost per unit * number of proposed units within community
Draft- July 5, 2023 Page 9 of 9
Medium
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Working With the Market:

Understanding and Supporting
Affordable-by-Design Housing
in San Luis Obispo County
June 26, 2023
Prepared for: San Luis Obispo Council of Governments
Draft Report
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Acknowledgements
ECONorthwest prepared this report for the San Luis Obispo Council of Governments (SLOCOG).

ECONorthwest and SLOCOG thank those who helped develop the Affordable-by-Design Study.

HHousingg Actionn Team
x Andrew Perez, Arroyo Grande
x Ani Garibyan, County of SLO
x Cory Hanh, Pismo Beach
x Darcy Delgado, Paso Robles
x Katie Banister, Paso Robles
x Kelly Gleason, Atascadero
x Kyle Bell, City of SLO
x Megan Martin, Grover Beach
x Nancy Hubbard, Morro Bay
x Phil Dunsmore, Atascadero
x Rafael Castillo, Grover Beach
x Teresa McClish, City of SLO
LLocall Housingg Industryy Expertss thatt providedd inputt x Abbott | Reed Inc.
x Z Villages Management and Development
x Coastal Community Builders
x Ambient Communities
x Midland Pacific Homes
x Peoples' Self-Help Housing
x Housing Authority of SLO (HASLO)
x Paso Robles Housing Authority
x North San Luis Obispo County Association of
Realtors
x California Association of Realtors Region 31
x Compass Real Estate
x San Luis Obispo County Housing Trust Fund
x Habitat for Humanity
x Home Builders Association
x YIMBY
x SLO Chamber of Commerce
x South County Chamber of Commerce
x Morro Bay Chamber of Commerce
x Paso Robles Chamber of Commerce
x League of Women Voters
x Kovesdi Consulting
x Covelop
x Specialty Construction
x Wallace Group
x The HRM Corp.
x Ten Over Studio
x People's Self-Help Housing
x RRM Design Group
x Vivian Hanover Ventures Real Estate
x California Polytechnic University
x First American Title Company, San Luis Obispo
x Omni Design Group
x Midland Pacific Homes
x NKT Commercial
x San Luis Obispo County Housing Trust Fund

SSLOCOG
x Sara Sanders
CConsultingg Teamm (ECONorthwest))
x Becky Hewitt
x Emmanuel Lopez
x Rasik Hussain
x Jamil Ditter
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Table of Contents
Executive Summary .............................................................................................................................................1 Introduction ..........................................................................................................................................................1 Part 1: Understanding ABD Housing in SLO County ...........................................................................................2 Part 2: Supporting ABD Housing in SLO County ...............................................................................................17 Recommendations for Affordable-By-Design Policies in San Luis Obispo County ............EError!! Bookmarkk nott defined.

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1 EXECUTIVE SUMMARY
We will add this to the final version, following initial review Attachment 1.C

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1 INTRODUCTION
The intention of the Affordable-by-Design (ABD) Study is to determine whether certain types of market-rate housing units are likely to be affordable to low- or moderate-income households in San Luis Obispo County “by design”, and what jurisdictions in the San Luis Obispo Council of Governments (SLOCOG) can do to support this type of housing. Identifying physical characteristics that are commonly associated with the targeted level(s) of affordability could allow the jurisdictions to count these developments towards RHNA requirements in annual reports to Housing and Community Development (HCD) and align local policies to support this type of housing production.

For purposes of this study, “affordable by design” is defined as new housing that is not income- or rent- restricted, but where typical market rents or sales prices would be affordable to low or moderate-income households (earning 50-120% of San Luis Obispo County’s Area Median Income or AMI). The study encompasses the seven incorporated Cities and unincorporated San Luis Obispo (SLO) County.

The study included the following components:

Part 1: Understanding ABD Housing in San Luis Obispo County ▪Identify common physical characteristics for ABD housing based on a review of market data and development examples from SLO County as well as other regions. ▪Market and financial feasibility analysis to determine whether housing built with the identified physical characteristics would meet ABD criteria and be financially feasible for a market-rate developer to build in the different parts of the county.

Part 2: Supporting ABD housing in San Luis Obispo County ▪Identification of a barriers to ABD development and a range of potential policy measures that could help support ABD housing based on interviews with local housing developers and ECONorthwest’s analysis.
▪Stakeholder feedback on the study’s findings and on priorities for policy measures to explore further through this study, resulting in selection of six policy measures for further evaluation. ▪Additional analysis of the selected policy measures, including a survey of current planning practices among the SLOCOG jurisdictions related to these policies and research on how other jurisdictions outside SLOCOG have implemented the selected policy measures. ▪Draft recommendations for SLOCOG jurisdictions to consider in support ABD housing.

The balance of this report summarized the results of this analysis and the recommended policy measures for consideration.

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2 PART 1: UNDERSTANDING ABD HOUSING IN SLO COUNTY
Identifying Examples and Characteristics of ABD Housing RRent and Sales Price Limits for ABD Housing in SLO County San Luis Obispo County’s published rent and sale price limits by income level define the rent and price range affordable at this income level (see Figure 1).1
Figure 1: San Luis Obispo County’s Rent and Sale Price Limits (May 2022) Source: San Luis Obispo County Department of Planning and Building, Affordable Housing Standards, May 20222 1 The City of San Luis Obispo has its own way of calculating maximum sale prices for its inclusionary housing program, which results in somewhat higher maximum sales prices. However, for consistency across the County, this analysis uses the County’s price limits. 2 “Affordable Housing Standards.” San Luis Obispo County Department of Planning and Building, June 1, 2022. https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-and-Documents/Informational- Documents/Affordable-Housing-Standard-(Post-2009).pdf.

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3 EExampless off ABDD Rentall Housingg
Rental Housing Examples from SLO County
ECONorthwest used data from CoStar, a proprietary market data service, to identify recently -constructed market-rate multifamily rental housing in SLO County where rents appear to meet the rent limits shown in Figure 1by unit type (number of bedrooms).This search yielded five properties where at least some unit sizes appear to meet moderate-income rent limits.3 These example properties are shown in Figure 2below, and their characteristics are summarized in
Figure 3.

Figure 2: Examples of ABD Rental Housing in SLO County
Source: CoStar
3 Note that CoStar reports rents on average by unit type and does not separate rents for affordable units from those for market -rate units within mixed-income buildings.

Connect SLO La Plaza
Ramona Gardens Laurel Lane
The Junction
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4 Figure 3: Characteristics of ABD Housing Examples in SLO County Source: ECONorthwest analysis of CoStar data, February 2023.

Connect SLO La Plaza Laurel Lane Ramona
Gardens The Junction
Jurisdiction San Luis Obispo Atascadero San Luis Obispo Grover Beach San Luis Obispo Land Area (AC)Not Available 1.83 Not Available 0.51 1.58 # Units 78 42 22 19 69
# Stories 3 3 3 3 3
Studio
Affordability Above Moderate Moderate N/A Moderate Above Moderate Studio Unit Size 477 sf 534 sf N/A 400 sf 531 sf
1 BR Affordability Moderate*Moderate Low/ Moderate*Moderate Moderate* 1 BR Unit Size 664 sf 721 sf 514 sf 800 sf 568 sf
2 BR Affordability Above Moderate Above
Moderate Moderate*Moderate Above Moderate
2 BR Unit Size 1,032 sf 1,537 sf 877 sf 800 sf 799 sf
3 BR Affordability N/A Above
Moderate Above Moderate N/A N/A
3 BR Unit Size N/A 2,808 sf 1,288 sf N/A N/A
*CoStar does not isolate market rents in mixed-income buildings. Reported average rents may be artificially low due to some units being below market rate, particularly where inclusionary housing regulations apply.

This analysis suggests that some new apartments are affordable at Moderate Income rents in at least some parts of the County, but this may be skewed by mixed-income buildings. Among these examples, one- bedroom units were most likely to be affordable, and no three-bedroom units met affordability criteria.

A review of the physical characteristics of these developments shows that design plays a role in making them affordable, but it does not guarantee affordability. Most of the examples are three story buildings, and most have small average unit sizes; however, many other apartments built in the County are also three stories, and not all small units are affordable to Moderate Income households.

ABD Rental Housing from Other Regions
ECONorthwest looked at examples of other types of rental housing recently developed in other housing markets for housing types that could potentially meet ABD criteria if built in SLO County. The primary type of housing that consistently achieved moderate-income affordability (or below) in similar housing markets is Micro Units. These typically have:

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5 ▪Unit sizes between 150-350 sf with individual kitchenettes and shared kitchens4 ▪No vehicle parking but on-site bike storage
▪Generally, four or more stories, high density, with minimal setbacks/landscaping ▪Highly walkable and desirable locations
Figure 4: Examples of Micro Unit Developments
Image credits: Alcove PDX ( https://pdxalcove.com); Stenberg Hart ( https://www.steinberghart.com/design/projects/mccadden-place-micro-units/) EExamples of ABD For-Sale Housing
ABD For-Sale Housing Examples from SLO County
ECONorthwest used sales transaction data from Redfin to identify sales within the last year of recently constructed housing units that sold for less than the sales price threshold listed in Figure 1. Only manufactured housing in manufactured home parks met these target price points (see examples in Figure 5).5
4 Because of the shared kitchens, groups of four to eight micro-units are often regulated as a single dwelling unit under the zoning codes where these developments have been permitted.
5 Because these manufactured homes must pay space rent for the manufactured home park, when this space rent is accounted for, even these units may not be affordable for moderate income households.

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6 Figure 5: Examples of ABD For-Sale Housing in SLO County Source: Redfin
A few small detached homes (such as the examples shown in Figure 6) came close to meeting the County’s affordability standards, and would meet the County’s Workforce housing price limits, but exceeded the County’s Moderate Income sales price limits.

Figure 6: Examples of Small Detached Homes Close to ABD Sales Limits Source: Redfin
ABD For-Sale Housing from Other Regions
Looking at examples from other regions, ECONorthwest identified three types of for-sale housing that tended to offer the lowest price-points in other relatively high-cost housing markets. These included:
▪VVery small detached units (roughly 350-800 sf) with shared yards, and clustered parking. The smallest units may be affordable at close to 120% of AMI in that market, but the most comparable units in SLO County exceed the target price. It is possible that the smallest detached units (e.g., under 800 sf) could meet the affordability targets in some cases.

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7 Figure 7: Examples of Very Small Detached Units from Other Markets Image credits: Redfin6; Connect Architecture7; South Park Cottages8 ▪SSmall condo units (roughly 325-600 sf) with little or no on-site parking. These can be afforHdable to Moderate Income households in portions of some high-cost regions, but may not be viable in SLO County’s market given the small size and lack of parking.

Figure 8: Examples of Small Condo Units from Other Markets Image Credits: Portland’s Best Real Estate9; Redfin10
▪Simple condo development with simple design, medium-sized units (roughly 600-1000 sf), little or no on-site parking, and few shared amenities. These units can be affordable to Moderate Income households in portions of some high-cost regions, but may not be viable in SLO County’s market given high development costs.
6 https://www.redfin.com/OR/Bend/61301-Benham-Rd-97702/unit-1/home/167021238 7 https://www.connectarchitecture.us/posh-pockets
8 https://southparkcottages.com/
9 https://www.portlandsbestrealestate.com/division-43-studio-condo 10 https://www.redfin.com/OR/Portland/7360-N-Atlantic-Ave-97217/unit-3/home/185141446 Attachment 1.C

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8 Figure 9: Examples of Simple Condo Developments from Other Markets Image Credits: Redfin11
▪SSmall townhouse units (roughly 1,000-1,600 sf). These can be affordable to Moderate Income households in portions of some high-cost regions, but comparable units in SLO County exceed the target price.

Figure 10: Examples of Small Townhouse Units from Other Markets Image Credits: Redfin12
▪Smaller single-detached homes (“starter homes”) that are typically three-bedroom units roughly 1200-1500 sf. These can be affordable to moderate-income households in moderate-cost areas (e.g., California’s Central Valley), but comparable units in SLO County exceed the target price. 11 https://www.redfin.com/CO/Federal-Heights/1401-W-85th-Ave-80260/unit-B101/home/176995897; https://www.redfin.com/OR/Portland/1801-N-Rosa-Parks-Way-97217/unit-303/home/172577477; https://www.redfin.com/OR/Portland/5025-N-Minnesota-Ave-97217/unit-102/home/185246763 12 https://www.redfin.com/CO/Denver/2206-E-38th-Ave-80205/home/185222737; https://www.redfin.com/OR/Portland/7308-NE- 11th-Ave-97211/home/185109359
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9 Figure 11: Examples of Small Single-Detached Homes from Other Markets Image Credits: Redfin13
Based on developer interviews and review of market data from SLO County, none of these models from other regions seemed likely to be viable as a way to deliver ABD for-sale housing in SLO County, and they were not further evaluated.

Overall, the data suggests that SLO County market conditions are unlikely to support new for-sale housing at prices affordable to moderate-income households, with the possible exception of manufactured housing in parks. A few developments have attempted to produce ABD for-sale housing, but even with very small homes, prices are still too high for the moderate-income target price range. In addition, even if jurisdictions were to change policies, factors that make for-sale housing more affordable in other areas may not translate to the SLO County market (e.g., lower land cost, no parking, few amenities, micro units).

Market and Development Feasibility Analysis
PPotential ABD Housing Types Selected for Analysis
Based on the review of ABD examples from SLO County and other market areas, ECONorthwest selected three development “prototypes” that typify the physical characteristics that showed potential viability and affordability to moderate income households in the San Luis Obispo market:
▪A 3-story walk-up apartment with typical unit sizes and site layout for the region ▪A more compact 3-story walk-up apartment with smaller unit sizes, less parking, and less landscaping / setbacks
▪A 4-story micro-units development with very small units and no parking Additional characteristics and physical features assumed for these prototypes are listed in Figure 12.

Figure 12: ABD Prototype Assumptions
Source: ECONorthwest
Description 3-story walkup
-standard
3-story walkup -
compact
4-story micro
units
Site Size (sf) 65,340 65,340 8,000
# of Units 51 91 71
13 https://www.redfin.com/CA/King-City/611-Cecily-St-93930/home/167240703; https://www.redfin.com/CA/Shafter/9710- Amberdale-Way-93263/home/178358767
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10 Density (DU/Ac) 34.0 60.7 386.6
Parking location surface surface none
Parking ratio 1.54 1.00 0.00
Unit Mix (% of units)
Studio 5% 30% 100%
1-bed 40% 40% 0%
2-bed 50% 30% 0%
3-bed 10% 0% 0%
Unit Size (net sf)
Studio 500 425 300
1-bed 675 575
2-bed 1,000 875
3-bed 1,350
Average Unit Size 880 620 300
Note: This analysis treats each micro-unit as its own unit, although under many codes they would not be considered stand-alone units because of their shared kitchens.

MMarket Conditions
While the affordability targets and AMI are set countywide, the market conditions vary across the county.

The analysis addresses this by dividing the county into different market areas for purposes of the analysis (see Figure 13). The analysis focuses on four market areas:
North Coast
North County
South County
Central County
East County is not included in the analysis because there is little development or development opportunity in that area.

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11 Figure 13: SLO County Market Areas
ECONorthwest estimated the market rents in each market area for each prototype based on the most comparable developments and adjusted to reflect differences between market areas and prototypes. The estimated market rents for each area are listed in Figure 14, along with the relevant moderate income rent limit by unit type.

Figure 14: Estimated Market Rents by Market Area and Prototype Source: ECONorthwest analysis based on CoStar data; San Luis Obispo County Department of Planning and Building, Affordable Housing Standards, May 202214
Region -
Bedroom Size
3-story walkup -
standard
3-story walkup
-compact
4-story
micro units
Moderate-Income
Rent Limit
Central County $2,750 $2,327 $1,470 $0
Studio $2,250 $2,083 $1,470 $2,047
1-bed $2,430 $2,156 - $2,329
2-bed $2,950 $2,800 - $2,597
3-bed $3,375 - - $2,877
14 https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-and- Documents/Informational-Documents/Affordable-Housing-Standard-(Post-2009).pdf Attachment 1.C

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12 Region -
Bedroom Size
3-story walkup -
standard
3-story walkup
-compact
4-story
micro units
Moderate-Income
Rent Limit
North Coast $1,925 $1,513 $956 $0
Studio $1,575 $1,354 $956 $2,047
1-bed $1,701 $1,402 - $2,329
2-bed $2,065 $1,820 - $2,597
3-bed $2,363 - - $2,877
North County $2,465 $1,972 $1,176 $0
Studio $1,800 $1,594 $1,176 $2,047
1-bed $2,147 $1,898 - $2,329
2-bed $2,650 $2,450 - $2,597
3-bed $3,240 - - $2,877
South County $2,289 $1,747 $956 $0
Studio $1,450 $1,275 $956 $2,047
1-bed $1,856 $1,639 - $2,329
2-bed $2,600 $2,363 - $2,597
3-bed $3,038 - - $2,877
Note: market rents reflect 2023 market conditions with an estimated 3% annual escalation prior to opening.

These rents are shown graphically in comparison to the moderate-income threshold in Figure 15.

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13 Figure 15: Estimated Market Rents by Market Area and Prototype Compared to Moderate-Income Rent Limit
Source: ECONorthwest analysis based on CoStar data; San Luis Obispo County Department of Planning and Building, Affordable Housing Standards, May 202215
This highlights that while many of the prototypes are estimated to offer market rents below the moderate- income threshold, this may not be the case for all prototypes / unit sizes in all market areas.

DDevelopment Feasibility Analysis
ECONorthwest’s financial feasibility analysis uses a metric called “return on cost” (ROC), which reflects the income potential of the completed development16 divided by the total cost of development. This ratio is often used as an initial indicator of development feasibility for rental developments, as it provides a preliminary indication of whether the completed property will provide competitive financial returns that could attract investors and meet loan underwriting requirements. Because both lenders and investors will expect higher returns for riskier investments, market areas that have stronger demand fundamentals will likely have a lower threshold for ROC to make development viable. Thus, the target ROC is assumed to be higher in smaller markets (North County and South County) than in Central County (North County is estimated to fall between these book-ends).

ECONorthwest used cost information calibrated based on interviews with local developers and research on average local fee amounts in SLO County to estimate development costs by prototype. 15 https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-and- Documents/Informational-Documents/Affordable-Housing-Standard-(Post-2009).pdf 16 Net Operating Income (NOI), the revenue after accounting for vacancy and operating expenses. $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
St
u
d
i
o
1-
b
e
d
2-
b
e
d
3-
b
e
d
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1-
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Central County North Coast North County South County
Mo
n
t
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l
y

R
e
n
t

p
e
r

U
n
i
t
3-story walkup - standard 3-story walkup - compact
4-story micro units Moderate-Income Rent Limit
Central County North Coast North County South County
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14 Figure 16: Estimated Return on Cost by Prototype and Market Area Source: ECONorthwest analysis
Because costs and market conditions can vary substantially between sites even within the same market area and for the same prototype, these results should be taken as a general indication of the relative feasibility of different prototypes, and not an absolute indication that a given prototype will consistently be feasible or infeasible in a given area. To account for the inherent uncertainties associated with this type of generalized analysis, ECONorthwest summarized the results based on how likely they indicate a given prototype is to meet affordability and feasibility criteria. This is shown in Figure 17. 0%
1%
2%
3%
4%
5%
6%
7%
8%

ABCABCABCABC
3-story
walkup -
standard
3-story
walkup -
compact
4-story
micro units
3-story
walkup -
standard
3-story
walkup -
compact
4-story
micro units
3-story
walkup -
standard
3-story
walkup -
compact
4-story
micro units
3-story
walkup -
standard
3-story
walkup -
compact
4-story
micro units
Central County North Coast North County South County
Re
t
u
r
n

o
n

C
o
s
t

Estimated Return on Cost Target Return on Cost
Central County North Coast North County South County
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15 Figure 17: Summary of Affordability and Feasibility Results by Prototype and Market Area Source: ECONorthwest analysis
Conclusions on Market and Development Conditions for ABD Housing in SLO County
The key take-aways from this analysis are summarized below by market area .

Overall, it appears that the rental market is close to being able to achieve ABD housing production in at least some parts of the County, and is likely within a range where regulatory changes could make a Central
Countyyyyyy
•Smaller units
help achieve
affordability
•Market likely
to suppor t
feasibility
North Coast
•Market rents
provide
affordability
• Feasibility is
difficult
North County
•Market rents
likely
affordable
except for
largest units
•Market likely
to support,
except for
the smallest
South County
•Market rents
likely
affordable
except for
largest units
•Market
support is
borderline
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16 difference. While ABD housing may not require subsidy, it may not be able to absorb inclusionary zoning requirements at the targeted moderate-income rents. Affordability through smaller unit sizes may not meet needs of larger households, and market rents may not stay within target affordability range over time, but delivering more lower-cost units to the market can help maintain the affordability of market-rate housing over time, and smaller households may benefit from greater availability of small units .

In the for-sale housing market, prices are too far above Moderate-Income affordability level for the market to deliver new ABD for-sale housing with regulatory changes alone. Increasing housing production overall can help bring supply and demand into balance and potentially make ABD achievable over the longer term.

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17 PART 2: SUPPORTING ABD HOUSING IN SLO COUNTY
Barriers to ABD Housing
To understand how to support ABD housing, it is essential to understand what makes it possible for the market to produce lower-cost housing, and how the public-sector can influence this. These factors are illustrated in Figure 18 and Figure 19.

Figure 18: Factors that Allow the Market to Produce Lower-Cost Housing Source: ECONorthwest
Figure 19: Public Sector Influence on Market's Ability to Produce Lower-Cost Housing Source: ECONorthwest
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18 In sum, it takes a confluence of multiple factors for the market to produce lower-cost housing, and local regulations and fees can have an impact on the market’s ability to achieve those factors.

Looking specifically at SLO County, ECONorthwest’s interviews with local housing developers, market research, and development feasibility analysis suggested the following barriers to ABD housing:

Market Barriers
▪Land Cost
▪Demand for high-end housing
▪Construction costs
▪Demand for parking
Regulatory Barriers
▪Discretionary review
▪Density caps
▪Minimum unit sizes
▪Parking requirements that exceed market demand
▪Impact fees, inclusionary zoning
▪Required infrastructure improvements
Potential Policy Measures to Support ABD Housing
OOverview
ECONorthwest identified a range of potential policy measures jurisdictions could consider to support development of ABD housing. These generally fall under the following categories:
▪Streamline development review and permitting
▪Align development standards to support ABD housing
▪Allow ABD housing in cost-effective locations
▪Adjust impact fee rates and policies to incentivize ABD housing Based on feedback from multiple different stakeholder groups, including home builders and market-rate housing developers, affordable housing providers, other housing advocates, and local planners, SLOCOG and ECONorthwest identified the following six measures for additional research and evaluation:

1. Objective Design Standards

2. Ministerial Approvals and Streamlined Approval Processes

3. Density Limits

4. Zoning Vacant Land for Multifamily Housing

5. Aligning Infrastructure Investments with Land for Multifamily Housing

6. Adjusting Impact Fee Policies or Rate Structures to Incentivize ABD Housing Having identified these measures as priorities, ECONorthwest distributed a survey to the planning departments of the 8 jurisdictions in SLOCOG: Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, City of San Luis Obispo, and County of San Luis Obispo to gather information on how they currently address these topics. The results of the survey are incorporated into the sections that follow.

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19 Finally, to illustrate how other jurisdictions have approached some of the policy measures highlighted to support ABD housing, ECONorthwest collected information on practices by jurisdictions in California that were recognized as “pro housing” as well as jurisdictions in other states. These examples are also integrated into the following sections.

SState Housing Laws and ABD Housing
Many state housing laws aim to remove barriers to developing affordable housing; however, these do not necessarily apply to ABD housing. This section summarizes how key state laws and recent bills relate to ABD housing as defined for this study.

Legislation Relevant Eligibility Criteria
(ABD Eligible?)
Benefits for Qualifying
Housing Developments
SB 35 (2018)
ABD not eligible
x At least 10% or 50% of units must be affordable
depending on which income categories
jurisdictions have failed to produce
x Affordable units must be for less than 80% AMI
only, requires lasting affordability restrictions
x Jurisdictions that have not met RHNA targets
(applies to most SLOCOG jurisdictions)
x Ministerial approvals
x Objective design standards
(ODS)
SB 330
(2019) and
the Housing
Accountability
Act (HAA)
ABD ppotentially eligible
x Housing for Very Low, Low-, or Moderate-Income
Households qualifies for additional protections
x One option is if 100% of units are affordable to
moderate (80-120% of AMI) or middle (<150% of
AMI) income households; units for moderate
income households must be affordable at 100%
of AMI.
x Lasting affordability requirements apply only to
units for very low or low-income households
x Locks in regulations and
fees when a preliminary
application is submitted
x Burden of proof is on the
jurisdiction if denying the
application; limited basis
for denial if application
complies with objective
standards
x Maximum review timelines
AB 2345
(2020) and
the Density
Bonus Law
ABD not eligible
x Multiple affordability criteria; for-sale housing can qualify if at least 10% of units are affordable to
moderate-income (80-120% of AMI) households
x Requires lasting affordability restrictions (at least 45 years)
x Increased density, reduced
setbacks, other zoning
modifications
In sum, ABD housing may be eligible for increased protections from being denied or having density reduced under the HAA if it meets the requirements for moderate income housing, but it would not qualify for ministerial approvals, ODS, or zoning concessions under SB 35 or the Density Bonus law.

Objective Design Standards
Description
Objective design standards (ODS) are defined in California State Law as standards which “involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark.”
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20 considering compatibility with surrounding structures or otherwise leaving room for interpretation of whether a development has met the requirements through ambiguous language. ODS are often related to building design elements, such as window size and location, roof lines, building articulation, etc. Having objective design standards can streamline the process of getting planning approvals by establishing a common set of expectations for developers and allowing development to avoid lengthy discretionary review processes.

While, as noted above, SB 35 does not apply to ABD housing, jurisdictions could potentially offer ABD housing the option to use the same ODS applicable to SB 35-eligible development. HCD published an objective design standards toolkit for California jurisdictions in 2021 with guidance and examples.17 Current Practice for SLOCOG Jurisdictions
Only the City of San Luis Obispo and Grover Beach have adopted specific ODS . In the limited time since these standards were adopted, they have been used a few times in Grover Beach, but have not yet been used successfully in the City of San Luis Obispo. Grover Beach allows "modification to standards" for minor modifications to respond site conditions, which may make it easier for development to comply with most of the standards while seeking flexibility where needed. (San Luis Obispo County uses only objective basic development and site design standards and does not have building design standards , therefore all development uses objective development standards.) Three additional jurisdictions are in the process of developing standards.

Jurisdiction ODS Status Eligibility for
ODS Topics Addressed Usage
of ODS
Atascadero In progress
All multi-family
and mixed-use
developments

TBD N/A
City of San
Luis Obispo
Adopted
(2021)
SB-35 projects
only
Specific building & site design
standards (materials, window
trim, building length, window
placement, roof design,
articulation, landscaping)
None to
date
County of San
Luis Obispo Adopted Not limited
Basic development & site design
standards (no building design
standards)
All
projects
Pismo Beach Not Available N/A N/A N/A
Paso Robles In progress TBD TBD N/A
Morro Bay In progress TBD TBD N/A
Arroyo Grande Not Available N/A N/A N/A
Grover Beach Adopted
(2022)
All single
family, multi-
family, and
mixed-use
developments
Site & structure design (façade
articulation, entrances, ground
floor height, transparency,
building orientation, blank walls,
building materials, upper story
A few
high-
density
projects
17 California HCD, “Approaches and Considerations for Objective Design Standards,” January 2021, https://hcdcagov.app.box.com/s/baznxdyweq6a8txcrb22li0gogqodzz6 Attachment 1.C

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21 Jurisdiction ODS Status Eligibility for
ODS Topics Addressed Usage
of ODS
windows, parking and access,
pedestrian circulation, etc.)
Modifications to standards
allowed
Other Examples
Sacramento, CA
Sacramento, CA received the first Pro-Housing Designation from the California Department of Housing and Community Development in February 2022 for its housing reform efforts. These include establishing objective design standards for infill development of projects with two units or more including additional dwelling units attached to single unit housing.

Citrus Heights, CA
Citrus Heights was awarded a pro housing designation from the State of CA for their use of objective design standards to spur development in their city. The designation was awarded for the city’s efforts to develop the Sunrise Tomorrow Specific Plan, a plan to convert a 100-acre mall property to a mixed-use residential property.18 The plan zoned for new uses on the site, including multifamily residential, retail, and hotels, tripling the amount of development allowed on the site and providing the opportunity for 2,200 new units in a city that is 98% built out. The plan also introduced objective design standards for the Sunrise Tomorrow Specific Plan area, which will streamline future development.19 The city is currently experiencing challenges encouraging development on the site because it is owned by six different companies, b ut it is continuing to work with developers and the community to improve the site.

Oregon Model Development Codes
In Oregon, all “needed housing” (effectively all housing development that is designed to fulfill a housing need rather than a resort or short-term rental purpose) must have the option to be reviewed against only clear and objective standards. Oregon’s Department of Land Conservation and Development (DLCD) publishes a model development code for small cities to facilitate compliance with this and other state requirements and smart growth principles. The model code includes “Community Design Standards” that address building orientation and design as well as site design factors such as access and circulation, parking, landscaping. The Residential Building design standards provide clear and objective standards to address building orientation, articulation, inclusion of certain design features (using a menu approach), and an option to require house plan variety in new subdivisions. While the Model Code was last updated in 2012, it 18 Murillo, Alicia. “Six California Cities Earn State Prohousing Designation.” hcd.ca.gov. California Department of Housing and Community Development, December 15, 2022. https://www.hcd.ca.gov/about-hcd/newsroom/six-california-cities-earn-state- prohousing-designation.
19 citrusheights.net. “Sunrise Mall Specific Plan.” City of Citrus Heights, CA. Accessed June 20, 2023. https://www.citrusheights.net/1009/Sunrise-Mall-Specific-Plan .

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22 may provide a useful example for smaller cities considering ODS.20 Oregon’s middle housing model codes, published in 2020, also include clear and objective design standards applicable to middle housing.21 Eugene, OR
A study of multifamily development in Eugene, Oregon evaluated whether public opposition expressed in a discretionary review process had an impact on development outcomes. It found that although the City allows most multifamily development by-right, 12% of multifamily development projects during the period analyzed (2010-2016) required a land use application. The land use applications ranged from minor adjustments to site plan reviews to planned development applications. Applications most commonly sought adjustments to building orientation and entrance standards, parking standards, building massing and façade standards, and access/circulation standards. While opponents of the projects raised concerns including traffic increases, pedestrian safety, and neighborhood chara cter, there was no evidence that these concerns resulted in changes to the development or design for the projects evaluated in the study. The study concluded that offering more flexibility on the standards that most commonly caused challenges could reduce the need for land use applications.22
Preliminary Recommendations
▪AAdopt simple ODS: Avoid overly detailed requirements when adopting ODS, and provide flexibility where possible (e.g., through a menu-based approach).
▪Simplify minor adjustments: Offer a process for minor deviations from the ODS that can still be reviewed by staff.

Ministerial Approvals and Streamlined Approval Processes Description
Ministerial approvals refer to non-discretionary staff-level approval of development projects. Robust ministerial approval processes provide a faster process and lower fees for development review. California’s SB 35 requires cities and counties which have failed to meet their RHNA obligations to allow developments that include a certain percentage of affordable units and meet other criteria23 to proceed through a ministerial review process.
20 Oregon Department of Land Conservation and Development, Oregon Model Development Code and User's Guide for Small Cities, 3rd Edition (2012), https://www.oregon.gov/lcd/tgm/pages/model-code.aspx 21 Oregon Department of Land Conservation and Development, Large Cities Middle Housing Model Code, December 2020, https://www.oregon.gov/lcd/UP/Documents/OAR660046%20EXHIBIT%20B%20- %20Large%20Cities%20Middle%20Housing%20Model%20Code%2020201209.pdf 22 Seth Thompson, “Public Opposition to Increased Housing Density in Eugene, Oregon: How Opposition to Multifamily Housing Impacts the Built Environment,” University of Oregon Department of Planning, Public Policy, and Management, Masters of Community and Regional Planning, 2018 Professional Project, June 2018. https://scholarsbank.uoregon.edu/xmlui/bitstream/handle/1794/25087/SThompson_ExitProj_Final.pdf?sequence=1&isAllowed=y 23 At least 50% of the proposed residential units should be affordable to households at 80% of AMI.

The project must net two or more new residential units.

The project must be zoned in the proper parcel and two-thirds of the project must be residential.

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23 Current Practice for SLOCOG Jurisdictions
Most of the cities offered some form of ministerial approval for developers; two offered SB 35 ministerial approvals. The criteria or maximum number of units eligible for ministerial approvals in each jurisdiction are summarized below.

Jurisdiction What is the maximum number of units that can receive ministerial approvals outside of SB 35 provisions?
Atascadero 11 (unless on a designated site in the housing element) City of San Luis Obispo No max threshold
County of San Luis Obispo 38
Pismo Beach No Response
Paso Robles 1 outside of State intervention; 3 when including ADUs and JADUs; 4 utilizing SB9
Morro Bay 2 dwelling units and Multi-family projects of 6000 sf or less, Single family homes under 2500 sf
Arroyo Grande No Response
Grover Beach No cap per year, or within the jurisdiction. SB 35 unit limits are based on land use density controls.

The jurisdictions differ on processing times for ministerial approvals. The cities of San Luis Obispo, Paso Robles, and Grover Beach gave the shortest timelines. All three gave initial reviews timelines of maximum up to a month while the County gave a minimum time period of 6 months. For non-ministerial approvals the estimates differed widely but they ranged from 3 months to 18 months.

Other Examples
Sacramento, CA
As noted previously, the City of Sacramento received recognition by the state for its housing reform efforts, which included several measures related to streamlining approvals, including allowing projects of up to 150 units to bypass the requirement for a public hearing and qualify for ministerial approval. The city set a 90- The location of the project may not be within a coastal zone, prime farmland, wetlands, a high fire hazard severity zone, hazardous waste site, a delineated earthquake fault zone, a floodplain, a floodway, a community conservation plan area, a habitat for protected species, or under a conservation easement.

The project does not demolish a historic building, a building where housing units have been occupied for the last 10 year s, or a building subject to rent control.

The project must meet all objective design standards.

If the project is a private development project, it must pay prevailing wage and if it is more than 50 units it must use a skilled and trained workforce.

The project must not involve the subdivision of a parcel that is subject to the California Subdivision Map Act, unless the project pays prevailing wage and receives a low-income housing tax credit or uses a skilled and trained workforce.

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24 day timeline for ministerial approval of these projects.24 It also allowed single-unit, duplex, and multi-unit dwelling to be built by-right.25
Oakland, CA
The city of Oakland introduced a “one stop shop” for permits that coordinates between three permitting departments to streamline and simplify procedures for developers. The departments are Fire Prevention Services, Planning & Building, and Transportation. Oakland introdu ced the “one stop shop” in September 2021.26
Grand Rapids, MI
According to a study by the Terner Center, zoning reforms in Grand Rapids, MI, which included up-zoning, allowing a wider range of housing types by right, and other changes, found a balance between opportunities for community input and streamlined project approvals. “If projects conform to zoning and design guidelines, the project is approved within approximately six weeks. Moreover, it is nearly unheard of for the city to deny a project application, largely because complying with the city’s land use regulations has proven to be straightforward for developers. City officials noted that the predictability of their approval process has resulted in more interest in development in their community.” Preliminary Recommendations
▪EExpand eligibility for Ministerial Approvals: For jurisdictions that currently limit availability of ministerial approvals based on the number of units, this threshold could be increased (e.g., to 150 units) or eliminated for multifamily developments in medium and high-density residential zones. ▪Have staff review projects using ODS: Even if the review is not considered truly ministerial, avoiding having a body accustomed to doing discretionary reviews serve as the approval body f or projects subject to ODS can help streamline the process and avoid raising concerns that cannot be addressed.

Density Limits and Parking Requirements
Description
If an area is zoned to allow multifamily but the maximum density is too low, it can preclude efficient multifamily development. As noted above, while California jurisdictions are required to allow density bonuses and other regulatory concessions for qualifying affordable housing developments, this does not apply to ABD housing where units are market-rate but offer affordability for moderate-income households.

Some jurisdictions use “fractional density” in which small units are counted as a fraction of a unit for purposes of density calculations. This approach is more aligned with ABD housing. Other jurisdictions 24 Herriges, Daniel. “Did Sacramento Just Approve the Best Local Housing Reform Yet?” Strong Towns, January 21, 2021. https://www.strongtowns.org/journal/2021/1/21/did-sacramento-just-approve-the-best-local-housing-reform-yet . 25 “Sacramento Becomes First California Jurisdiction to Earn State Prohousing Designation.” California Department of Housing and Community Development, February 24, 2022. https://www.hcd.ca.gov/about-hcd/newsroom/sacramento-becomes-first-california- jurisdiction-to-earn-state-prohousing-designation.
26 “One-Stop Permit Center: In-Person & Expanded Digital Services,” City of Oakland, accessed June 26, 2023, https://www.oaklandca.gov/resources/one-stop-permit-center .

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25 simply increase (or even remove) their maximum density standards for all housing to prioritize housing production.

Reducing or eliminating minimum parking requirements can also be a tool to encourage ABD development and can be an important complement to higher density limits, because achieving higher densities sometimes requires lower parking ratios (e.g., for the micro-units and compact walk-up apartment prototypes analyzed in Part 1). Reducing parking requirements also eliminates a mandatory cost for developers and can lower rental costs for households in some cases. However, in areas where there is strong market demand for parking, developers may choose to build parking even if it is not required, or build more than is required to meet market demand.

Current Practice for SLOCOG Jurisdictions
The survey asked the departments to list their jurisdictions highest density zones and the maximum by -right density in those zones.

Jurisdiction
Which zones in your jurisdiction allow the highest residential density? What is your maximum by-right density in these zones? Atascadero RMF-24 - 24 units per acre
City of San
Luis Obispo
C-D - 36DU/acre, C-C 36DU/acre
County of San
Luis Obispo
Residential Multi-Family (density not specified)
Pismo Beach Our Residential Very-High Density overlay zone. Once a property is rezoned with the overlay, it is 50 units per acre
Paso Robles T4-N, T4-F, T4-NC, TC-1, TC-2, and RSC all allow up to 30 units/acre Morro Bay RH (Residential High Density). Currently 2 units by right or Multi-family projects with total SF of 6000 or less.

Arroyo Grande Multi-Family Very High Density and mixed use zones allow up to 25 du/acre Grover Beach No Response
The City of San Luis Obispo also utilizes fractional density for all zones outside the AG, C/OS, R-1 zones. The City of Paso Robles also allows fractional density in some of its zones. The details are included in the table below.

Jurisdiction Housing Type Fractional Density
City of San Luis
Obispo
Studio and one-bedroom dwellings less than 600 sq. ft. .5 One-bedroom dwellings between 601–1,000 sq. ft. .66
Two-bedroom dwelling 1
Three-bedroom dwelling 1.5
Dwellings with four or more bedrooms 2
Paso Robles
Studio and one-bedroom dwellings less than 600 sq. ft. .5 One-bedroom dwellings 600–1,000 sq. ft. .66
Dwellings with two or more units 1
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26 Other Examples
San Diego, CA
The City of San Diego introduced several changes to its density bonus program in 2018. The new program language included several provisions that offer bonuses for smaller units:27 ▪A 10 percent density bonus for developments that do not go beyond the maximum permitted building footprint.
▪A 100 percent density bonus for micro-unit production for developments that do not go beyond the permitted building footprint.

Cottage Grove, Oregon
The small city of Cottage Grove, Oregon, recently eliminated maximum density limits in its residential zones. Minimum lot size standards apply, but do not scale with the number of units, meaning that they are primarily a constraint on density for single-unit detached development. Multifamily development is limited only by height and building coverage standards.28
San Jose, CA
The city of San Jose eliminated their parking minimum requirements in December 2022. It is one of a number of cities in California that have reduced or eliminated their parking requirements, including Sacramento, San Diego, and San Francisco. In the same ordinance that repealed the parking minimums the city council also included requirements for bicycle parking to encourage other forms of transportation.29 Preliminary Recommendations
▪AAdjust density limits in high-density residential and mixed-use zones: This could take several different forms:
▪For density limits expressed in dwelling units per acre, increase the maximum density allowed by-right. Allowing at least 35 units per acre will generally allow for three-story walk-up apartment development, which may meet ABD criteria.
▪Use Floor Area Ratio (FAR) or other physical form limits (e.g., height) to regulate the amount of development. This can serve as an incentive for buil ding smaller units.

Zoning Vacant Land for Multifamily Housing
Description
Many jurisdictions seek to focus higher-density development in core areas, downtown, or near transit.

However, these areas are often largely developed already, and redevelopment means higher land costs along with demolition and sometimes environmental remediation costs. Zoning vacant land for multifamily housing can offer a lower-cost development opportunity, particularly if the land has or is in close proximity 27 “City of San Diego Density Bonus Regulations for Affordable Housing,” San Diego Housing Commission, accessed June 20, 2023, https://www.sdhc.org/doing-business-with-us/developers/density-bonus/ . 28 City of Cottage Grove Municipal Code, Chapter 14.22 Residential Districts:
https://www.codepublishing.com/OR/CottageGrove/#!/CottageGrove14/CottageGrove1422.html#14.22.120 29 Kamisher, Eliyahu. “Bye-Bye Parking Requirements: San Jose Becomes Largest City in U.S. to Abolish Minimum Parking.” The Mercury News, December 7, 2022. https://www.mercurynews.com/2022/12/07/bye-bye-parking-requirements-san-jose-becomes- largest-city-to-abolish-minimum-parking/.

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27 to the necessary infrastructure to support development. This makes it easier for ABD multifamily housing projects to be economically viable.

Current Practice for SLOCOG Jurisdictions
All but two jurisdictions noted that they had vacant sites listed on their Housing Element in their most dense zones. Atascadero noted the vacant sites are very small and Arroyo Grande and County of San Luis Obispo did not list any vacant sites. The table below lists all the responses.

Jurisdiction
Are there vacant sites listed on your Housing
Element in your highest density zones?
Atascadero yes....with a caveat that they are small since the original colony subdivided in 1913
City of San Luis Obispo Yes
County of San Luis Obispo None listed
Pismo Beach Yes
Paso Robles Yes
Morro Bay Yes
Arroyo Grande No
Grover Beach Yes
Other Examples
Study on Up-Zoning in Portland, OR
A recent study on the impact of up-zoning and higher-density zoning on development and housing production in Portland, OR found that “both upzoning and higher density zoning led to significantly greater development probabilities, higher development densities, and more housing supply,” suggesting that “Upzoning could be an effective policy tool for increasing housing supply, particularly when it is applied to vacant and underutilized parcels.”30
Preliminary Recommendations
▪Zone vacant buildable sites large enough to accommodate multifamily developm ent to allow it by- right at an appropriate density. Ideally, this would include sites over an acre with access to infrastructure.

AAligning Infrastructure Investments
Description
The cost of extending or upgrading infrastructure (e.g., roads, sewer and water lines) to serve a site can be cost-prohibitive for ABD housing. It also adds significant time and uncertainty to the development process.

To the extent that jurisdictions can invest in the infrastructure upgrades and extensions needed to make ABD housing development possible, this will can mean substantial cost savings and a major increase to development feasibility.
30 Hongwei Dong, “Exploring the Impacts of Zoning and Upzoning on Housing Development: A Quasi-experimental Analysis at the Parcel Level,” Journal of Planning Education and Research. February 1, 2021. https://doi.org/10.1177/0739456X21990728 Attachment 1.C

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28 Current Practice for Local Jurisdictions
The Regional Housing & Infrastructure Plan (HIP) is a collaborative action plan between the seven Cities, County of San Luis Obispo, and SLOCOG in response to the San Luis Obispo region’s growing housing and infrastructure shortage. The HIP is intended to help accelerate housing development where it makes the most sense given regional conditions and readiness. The HIP inventories infrastructure barriers to housing, identifies funding to implement infrastructure needs, and develops foundational information for the future 2027 Regional Housing Needs Assessment (RHNA). The 2023 HIP identified 80 water, wastewater, and transportation infrastructure projects and possible grant funding sources.

Other Examples
Bend, OR
The City of Bend, Oregon conducted a study in 2018 to evaluate infrastructure and planning needs to make land development-ready in various areas of the city, including areas on the edge that had been recently authorized for development with complete communities including a range of housing types and commercial services and infill/redevelopment “opportunity areas”. The study analyzed the type and amount of development that each area was expected to yield (including affordable housing); the cost of providing needed water, sewer, and/or transportation improvements; other factors that could inhibit development; and estimated revenues from impact fees and property taxes from each area. The analysis informed decisions about where to focus staff time, political will, planning energy, and infrastructure investments .31 Preliminary Recommendations
▪Use the on-going HIP process to prioritize infrastructure investments that can unlock multifamily development in appropriate areas.

AAdjusting Impact Fee Policies or Rate Structures
Description
While impact fees are a vital source of funding for local infrastructure needs, they tend to disproportionately affect the feasibility of building smaller and lower-cost housing units.32 This is particularly true when the fee structures do not account for differences in impact based on unit size or location-efficient developments.

While many localities in California waive impact fees for affordable housing, this does not apply to ABD housing. A full waiver of impact fees is not necessarily an appropriate policy measure for ABD housing; however, there are other adjustments that jurisdictions can make to reduce the effects of impact fees on ABD housing. For example, impact fees can be deferred until later in the construction process or financed over a period of years. Rate structures can also be adjusted to account for reduced demand from smaller units while keeping the overall average rates constant to minimize the impact to revenue collections. 31Bend Growth Management Department in collaboration with Angelo Planning Group, ECONorthwest, Cascadia Partners, DKS Associates, and MURRAYSMITH, “Bend Urban Growth Boundary Implementation Return on Investment Analysis and Next Steps,” April 26, 2018. https://www.bendoregon.gov/home/showpublisheddocument/36542/636637940683270000 32 ECONorthwest on behalf of Oregon Housing and Community Services, “Oregon System Development Charges Study: Why SDCs Matter and How They Affect Housing,” December 2022.
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29 Current Practice for SLOCOG Jurisdictions
Impact fee policies vary across the jurisdictions. Three jurisdictions, Morro Bay, Arroyo Grande, and Grover Beach do not offer any impact fee deferrals. Most other jurisdictions allow deferral or exemptions for affordable housing projects. Atascadero indicated that all impact fees are deferred for all developments.

All of the jurisdictions indicate that their impact fees vary by housing type/unit size. Some vary by unit type, lot size, or zoning. Some are lower for affordable units. Others vary based on square footage. Specific answers are listed below.

JJurisdiction
If your impact fees vary by housing type and/or unit size, please describe which fees and what the variables are (e.g., housing type / ITE code, square footage, number of bedrooms, etc.).

Atascadero Vary by lot size, zoning
City of San Luis
Obispo
Transportation, water, wastewater, are reduced for smaller units (based on square-footage).

County of San Luis
Obispo
Certain building types may qualify for fees based on square footage of project
Pismo Beach By unit type, yes. Not by unit size.

Paso Robles They vary by "Transportation Area" within the City and the fee can vary by size/sf
Morro Bay Size and cost of project.

Arroyo Grande Fees are lower for low and very-low income units Grover Beach Housing type, square footage, etc.

Other Examples
Fontana, CA
The city of Fontana, CA reduced its impact fees for infill development by 50% as part of their Housing Element update in June 2021. City officials defined infill development as development in the central third of Fontana.33 Projects located in that zone were eligible for this impact fee reduction. Impact fees can range from “approximately 9.3% to 10.3% of the direct cost of development for a single -family residential project and 4.3% to 4.4% for a multi-family residential project” which can represent a significant cost for the developer.34
Preliminary Recommendations
▪Scale by unit size: Wherever reasonable, adjust impact fees by unit size to reflect lower impacts from smaller units. This could also mean increasing fees for larger units so that the change is revenue-neutral.
▪Defer collection: Allow deferrals for multifamily development regardless of whether it includes affordable units.
33 “City of Fontana 2021-2029 6th Cycle Housing Element” (City of Fontana, CA, June 25, 2021), 4–6, https://www.hcd.ca.gov/housing-elements/docs/fontana-6th-draft062521.pdf . 34 “City of Fontana 2021-2029 6th Cycle Housing Element,” 3–27.

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30 ▪AAdjust for infill locations: Set fee rates lower where infrastructure needs are lower due to proximity to existing facilities. This can off-set some of the higher cost of building in closer-in, more developed areas.

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2023 HIP Appendix D
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Regional Vision for Housing
In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to establish a united regional framework to unlock our potential to develop an adequate supply of housing and infrastructure that support our economic prosperity.

1.Overview
San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous unincorporated communities that depend on collaborative relationships between and among government agencies, community organizations, and residents to solve the region’s significant issues including inadequate supply of affordable housing and resilient water, wastewater, and transportation infrastructure and resources.

The County and all seven Cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed this chapter to showcase the ongoing commitment of each agency to this collaborative effort. This Chapter presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure.

2.Alignment with Regional Compact
This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact). The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs:

Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways.

Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests.

Goal 3. Create Balanced Communities – We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region, providing more opportunities to residents to live and work in the same community. 2023 HIP Appendix E
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Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural resources, open space, and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected.

Goal 5. Support Equitable Opportunities – We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels.

Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact.

3.Policies
It will take regional collaboration and local actions to realize the vision and goals outlined in the Regional Compact. Below is an initial list of aspirational regional policies that further the Regional Compact vision, in addition to local policies. By listing these below, it does not mandate any individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG, and other partners can consider moving forward, together. In addition, and consistent with each Housing Element cycle, each of the seven cities and the County has the opportunity to choose to implement local policies and programs that help to support their achievement of its RHNA, and if an agency chooses to, can also support the Regional Compact vision and goals in a way that works for its jurisdiction and community. See Section B for local programs and policies for Atascadero’s anticipated actions during this Housing Element cycle.

R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by utilizing community engagement, and consistent and transparent communication.

R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the Region.

R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure.

R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure development throughout the Region.

R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference.

R-6: Encourage rental units be prioritized for long term residents rather than short term users or vacation rentals.
2023 HIP Appendix E
Attachment 1.D

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R-7: Support housing development that is located within existing communities and strategically planned areas.

R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.).

4. Moving Forward
The County, cities, SLOCOG, and other partners engaged in housing and infrastructure development will continue to collaborate on efforts moving forward – recognizing the benefits of working together to achieve an enduring quality of life among the region’s people, sectors and interests. This ongoing collaboration will include learning from each other and sharing possible tools, policies and actions that can allow the collective region to move towards our adopted Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan, anticipated to be complete in 2021, and related regional efforts will live outside of each individual agency’s Housing Element. 2023 HIP Appendix E
Attachment 1.D

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PISMO BEACH COUNCIL STAFF REPORT
Agenda Item #12.B
SUBJECT/TITLE:

AGREEMENT WITH F&H CONSTRUCTION FOR THE DESIGN-BUILD

CONSTRUCTION OF A PUBLIC SAFETY FACILITY
RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to enter into an agreement with F&H Construction in the amount of $42,366,450 for construction of a Public Safety Facility.

BACKGROUND:

The City Council set a goal to have a modern Public Safety Facility to replace the current Fire Station on Bello Street, Station 64, and to expand the Police Station to meet the modern needs for the City’s public safety professionals. The proposed project seeks to achieve multiple goals, including honoring the sites’ history by incorporating the façade of the City’s original elementary school into the new design, reducing fire response time by more than one minute, and constructing a new Police Station.

To deliver the project in an expeditious manner, staff proposed the use of Design-Build procurement, as allowable under California Public Contract Code Section 22160. Design- Build method of delivery allows for using “best value” procurement to reduce project costs, expedited project completion, and design features that are not achievable through the traditional design-bid-build method. “Best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance.

The City hired Vanir Construction Management to serve as its owner’s representative, and Mary McGrath Architects to develop bridging and criteria documents. Following a thorough Request for Qualifications and Request for Proposals process, the City received two proposals from qualified firms.

The Design-Build team of F&H Construction and LDA Architects was selected as the top- ranked proposal. Staff conducted a value engineering negotiation process to further refine the scope of the project to meet the City’s needs and budgetary requirements.

The proposed agreement with F&H Construction has a construction cost of $42,366,450, inclusive of complete planning, design and engineering services, management services, complete permitted plan sets, construction services, project completion and building and systems commissioning services, and turnover of a complete, functional, and legally operable project. Construction is estimated to begin in May 2024, following the issuance of necessary permits and entitlements. Project completion is scheduled for December 2025. A cost proposal excerpt is provided as Attachment 1.A, and the complete Council Agenda 7-18-2023 12.B-1
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agreement is provided online-only in the Access Pismo1 public records portal due to file size, as Attachment 2.

Conclusion and Recommendation
Staff recommends that Council adopt a Resolution (Attachment 1) authorizing the City Manager to approve an agreement (cost excerpt provided as Attachment 1.A) with F&H Construction to construct a Public Safety Facility.

FISCAL IMPACT:

The fiscal impact of awarding F&H Construction the design-build construction agreement for the Public Safety project is $42,366,450. Based on the estimated soft costs of $7,750,000, staff projects a total estimated project cost of $50,116,450 as reflected in the following table.

Staff presented a funding plan for Council review and consideration on May 2, 2023. This funding plan includes supporting the Public Safety Facility with a mix of available funding sources for pay-as-you-go (PAYG) or cash-funded resources and financed with lease revenue bonds. PAYG resources includes allocating a portion of the General Fund Reserve, using General Fund set-aside of TOT 1%, Development Impact Fees, and Parking Enterprise Fund net available fund balance (net position). The remaining would be financed with lease revenue bonds. The funding plan to support the debt service payments would be supported primarily by the General Fund, with support in the first 20 years from the Parking Enterprise Fund.

In addition to the estimated project costs, there will be relocation costs associated with moving and placing staff, equipment, and infrastructure in various existing and proposed new facilities throughout the City in preparation for and during the construction of the new Facility. The FY 2024 Capital Projects Fund Public Safety Facility budget already includes $1,253,000 that is available to support the relocation costs and the initial portion of the project.
1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=482262&dbid=0&repo=Laserfiche Estimated Project Cost
Soft Costs
Contingency 3,000,000$
Permitting Connection Fees 1,500,000
Construction Management 1,000,000
IT Equipment 750,000
Hazmat/Survey/Abatement 250,000
Plan Check 250,000
Inspection/Special Inspection 1,000,000
Total Soft Costs 7,750,000$
Construction Cost 42,366,450
Total Estimated Project cost 50,116,450$
Council Agenda 7-18-2023 12.B-2
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Staff will come back to Council to modify the City’s Municipal Code Paid Parking Ordinance to allow the use of the Parking Enterprise Fund net revenues to support a portion of the Public Safety Facility. Finally, before the construction of the facility begins, staff will come back to Council with an updated funding plan reflecting pay-as-you-go (or cash) funding, the amount that would be financed with bond proceeds, and proposed debt service schedules.

ALTERNATIVES:

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

ATTACHMENTS:

1. Resolution

1.A. Exhibit A to Resolution: Cost Proposal Excerpt

2.Complete Agreement (online attachment only2)
Submitted by: Meeting Date: July 18, 2023
Pismo Beach Department Head Team
Interim City Manager Approval:
2 Full URL
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=482262&dbid=0&repo=Laserfiche Council Agenda 7-18-2023 12.B-3
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RESOLUTION NO. R-2023-XXX

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

CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH F&H CONSTRUCTION IN THE AMOUNT OF $42,366,450 FOR

CONSTRUCTION OF A PUBLIC SAFETY FACILITY
WHEREAS, the City of Pismo Beach desires to complete design and construction of a Public Safety Facility to enhance public safety service to the community, and has determined that a design-build procurement would best serve the community need; and WHEREAS, the City undertook a two-step process, consisting of a Request for Qualification and Request for Proposals process, to find the most qualified construction and design team; and
WHEREAS, two proposals were submitted to the City by qualified design-build teams; and
WHEREAS, the design-build team of F&H Construction and LDA Architects’ proposal was selected as the best value to the City, meeting and exceeding the minimum requirements for proposals, having completed similar public safety facility projects; and WHEREAS, the cost of project will be supported by a combination of pay-as-you-go resources, including a portion of the General Fund Reserve, General Fund set-aside of TOT 1%, Development Impact Fees, and Parking Enterprise Fund net available fund balance (net position), and proposed lease revenue bond proceeds, which are proposed to be supported by the 1% Transient Occupancy Tax passed by voters in November 2020 for general purposes including a public safety facility, and General Fund and Parking Enterprise Fund net revenues.

WHEREAS, staff intends to return to the Council at a later date to modify the City’s Municipal Code Paid Parking Ordinance in order to allow the use of Parking Enterprise Fund net revenues to support a portion of the Public Safety Facility.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby awards a contract to F&H Construction for construction of a Public Safety Facility Project in the amount of $42,366,450 in a form substantially similar to that provided in staff’s report to the Council of July 18, 2023 (cost proposal excerpt 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 18th day of July 2023, by the following vote:

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AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
1 Exhibit ‘A’ – Scope Clarifications
Please find below the assumptions, clarifications, exclusions to Thoma Electric’s scope of work related to power, voice/data, IT, Telecommunications, Audio/Video, Security, etc. References to “we” or “our” refer to Thoma Electric, and assumptions or clarifications stated below are those that form the basis upon which Thoma Electric has provided our scope/fee proposal. Refer to the below list:

1. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Electrical Service” we assume that the requirement of a new electrical service applies to the project as a whole and that utility metering may be separate for each building, however, implementation of the electrical distribution on-site is at the discretion of the Thoma Electric.

2. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Electrical Service” we assume that maintaining the existing electrical service is at the option and discretion of Thoma Electric, therefore any requirement for upsizing is at the discretion of the Thoma Electric.

3. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Distribution” we assume that the indoor rated enclosures requirement pertains to branch panelboards only since the phrase uses the word “Panels”. Some larger distribution equipment may not be sized to fit interior to the building, which shall be at the discretion of Thoma Electric.

4. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Emergency Power” we note that in Section 3(b)(i)(1)(f) of the Technology Design Specifications that a 10-15kVA UPS has been listed, however, in reviewing the anticipated loads within the IT space listed for backup requirements, Thoma Electric believes that no more than 60kW of load may need to be backed up by the MDF UPS equipment rather than the 10-15kVA listed in this section. We therefore assume that the 60kW we have included will be sufficient to backup any current and future anticipated loads as required within this RFP. Additional loads beyond the 60kW as provided in this proposed scope of work shall be considered at added expense.

5. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” we assume that any and all requirements for site services and low voltage systems that have been outlined by the Owner’s retained consultant ClientFirst, have been provided in the “Technology Design Specifications” with an issue date of November 10, 2022 as provided with the RFP documentation. The scope of work provided in this proposal exclude future requirements or determinations regarding design decisions by ClientFirst.

6. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” we assume that requirements for the size of rooms and spaces for Radio, IT and LV systems have been determined to be adequate as outlined in the RFP documents through the room data sheets.

7. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” references to “aim for 200’ maximum cabling distance” directly contradict other references within the “Technology Design Specifications” with an issue date of November 10, 2022 as provided with the RFP documentation. The Technology Design Specifications allow for up to 250-feet between serving Telecommunications Rooms (refer to Section 3(b)(i)(3)(a)(iii)) before requiring additional serving telecommunications infrastructure.

Therefore, in accordance with allowable best practices, BICSI standards, and EIA/TIA standards, Council Agenda 7-18-2023 12.B-19
Attachment 1.A
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
2 Thoma Electric has designed to the maximum code allowed 90-meters for cabling distance and placement of IDF/MDF rooms as required by Section 3(b)(i)(3)(a)(iii).

8. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” the reference for “Cabling to have 2 pathways for redundancy. One entrance facility is acceptable” is considered to only apply to the serving utility provider’s MPOE (Minimum Point Of Entry) and serving utility conductors. Thoma Electric’s assumption in this manner is consistent and supported by Section 4(e) entitled “Telecommunications Entrance Facilities” within the “Technology Design Specifications” with an issue date of November 10, 2022 as provided with the RFP documentation. Therefore, all telecommunications data infrastructure within the building, including, but not limited to workarea outlets, wireless access points, access control devices, dispatch console outlets, etc. are served from a single, non-redundant pathway interior to the building.

9. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” the reference to “MDF/IDF facilities to include fire suppression system” is considered to have been met by providing a dry-pipe type fire suppression system as specifically allowed in Section 3(b)(i)(1)(i) and Section 3(b)(i)(3)(i) each of which are entitled “Fire suppression in room” within the “Technology Design Specifications” with an issue date of November 10, 2022 as provided with the RFP documentation. No gaseous fire suppression is included.

10. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” the reference to “Security Camera Locations and type of system sketch provided by Architect” does not have a corresponding “sketch” included within the RFP documentation which outlines the camera locations and types. Therefore, we assume that the requirement for camera coverage is considered to have been met by coordinating with the Owner’s pre-selected security vendor (SOV) for camera locations within the project. Camera locations, video recorders, servers, licensing, etc. added after review by Owner will be considered at added cost.

11. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” the bullet point to “Review with owner for City standards with regards to: Fire Department Controls for Dispatch and emergency calls” does not outline a specific project requirement at time of proposal. Therefore, we assume that this requirement is met by providing a Fire Station Alerting System.

12. Regarding the Electrical Systems and Equipment Narrative as issued in RFI#3 – under “Information Technology / Low Voltage” the reference to the Uninterruptable power supply for critical Low Voltage Systems calls for the need to coordinate “between Low Voltage design and Electrical distribution design … to provide complete resiliency per the City’s standards.” The City’s standards as provided in Section 3(b)(i)(1)(f) of the “Technology Design Specifications” with an issue date of November 10, 2022, state the requirement for a 10-15kVA UPS, however, in reviewing the anticipated loads within the IT space listed for backup requirements, Thoma Electric believes that no more than 60kW of load may need to be backed up by the MDF UPS equipment rather than the 10-15kVA listed in this section. We therefore assume that the 60kW we have included will be sufficient to backup any current and future anticipated loads as required within this RFP. Additional loads beyond the 60kW as provided in this proposed scope of work shall be considered at added expense.

Council Agenda 7-18-2023 12.B-20
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
3 13. Regarding Section 3(a)(i) of the Technology Design Specifications – we assume patch cables required are as specified in Section 3(f)(xi). No other patching length/style options will be provided beyond that listed in Section 3(f)(xi).

14. Regarding Section 3(a)(v) of the Technology Design Specifications – we assume that acceptable cabling pathway as listed in this section will not preclude the use of J-hooks as is allowed in Section 3(f)(vii) allowing J-Hook supports for cabling.

15. Regarding Section 3(a)(vii)(1) of the Technology Design Specifications – no size for conduits between vehicle storage and the Police Department MDF is specified, therefore we assume that conduit sizing is deferred to Thoma Electric’s judgement and code requirement.

16. Regarding Section 3(a)(viii) of the Technology Design Specifications – we assume that no patching will be performed by Thoma Electric, all patch cables procured will be provided to Owner for Owner’s staffing to make final connections of all structured cabling.

17. Regarding Section 3(a)(xv) of the Technology Design Specifications – we assume that firestopping is only required where a conduit/raceway is penetrating a rated wall/floor, we exclude fire stopping at each penetration if the wall/floor assembly does not require a rating.

18. Regarding Section 3(a)(xvi)(1)(c) of the Technology Design Specifications – we assume that 1”C is sufficient for (6) Cat6a cables, assumes conduit sized larger is only necessary when specific installation conditions require more than (6) cables in a single raceway.

19. Regarding Section 3(a)(xvi)(2) of the Technology Design Specifications – we assume that conduits as required by this section may be used for structured cabling installation and are not reserved as spare or in any other way in-excess to those which may be required for installed structured cabling for low voltage systems. We assume that firestopping of these penetrations is only necessary where conduits are passing through a fire rated assembly. We assume that the comment in this section of the RFP referring to “conduit grouted to a wall” is referring to a conduit being “grouted through a wall.” Where wall is not present between rooms or partitions (in some locations a full height wall may not be present) we assume a sleeve is not required. We assume that the installation of conduit sleeves to “all rooms” as required this section apply only to rooms which have accessible ceiling (because conduit sleeves to a location without accessible ceiling do not benefit the Owner). Additionally, we assume that conduit sleeves may allow cable to pass through from room to room if adjacency of rooms permit, and therefore installed sleeves do not need to route through an adjacent room in order to establish one continuous pathway from room to cable-tray.

20. Regarding Section 3(a)(xvi)(6) of the Technology Design Specifications – We assume that “oversized neutral” is applicable only to branch-panelboard serving feeder. Excludes oversizing of bussing of applicable branch panelboard, oversizing of feeder from upstream distribution panelboard or any upstream infrastructure, and assumes that oversizing of neutral shall be 200% oversized for feeder only. Assumes that for oversizing of neutral in branch circuits feeding data outlets, neutral upsize is to next standard wire size (for example, if standard is #12 AWG, then upsized neutral would become #10 AWG).

21. Regarding Section 3(a)(xvi)(8) of the Technology Design Specifications – We assume that conduits as required in Section 3(a)(xvi)(2) are sufficient for low-voltage systems required in this RFP, and that any additional conduit is required if and only if the raceway required of Section 3(a)(xvi)(2) is full.

22. Regarding Section 3(b)(i)(1)(f) of the Technology Design Specifications – in reviewing the anticipated loads within the IT space listed for backup requirements, Thoma Electric believes that no more than 60kW of load may need to be backed up by the MDF UPS equipment rather than Council Agenda 7-18-2023 12.B-21
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F+H Construction
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Thoma Electric, Inc.
4 the 10-15kVA listed in this section. We therefore assume that the 60kW we have included will be sufficient to backup any current and future anticipated loads as required within this RFP.

Additional loads beyond the 60kW as provided in this proposed scope of work shall be considered at added expense.

23. Regarding Section 3(b)(i)(1)(g)(v) of the Technology Design Specifications – We assume that testing of bonding differential as required in this section shall be limited to a reasonable and representative test sampling (10% or less) in order to fulfill this requirement, excludes testing of ALL equipment with two-point testing.

24. Regarding Section 3(b)(i)(1)(j) of the Technology Design Specifications – 4-foot clearance referenced in this Section may conflict with the room sizing as listed in the room data sheets for MDF, the room dimensions listed in Section 3(b)(i)(1)(a), and the Data Rack size requirements in Section 3(b)(i)(1)(k). The sizing listed in the above may be in conflict in order to provide 4’-0” clearance as required of this section. We assume that room dimensions listed in the room data sheets for the MDF are satisfactory. Thoma Electric will work with Owner’s IT representative to resolve conflicts in a manner that does not impose cost onto Thoma Electric.

25. Regarding Section 3(b)(i)(1)(k)(ii), (iii), and (iv) of the Technology Design Specifications – no component part numbers are provided, assumes components are at the discretion of Thoma Electric.

26. Regarding Section 3(b)(i)(1)(l) – no component part numbers are provided, assumes components are at the discretion of Thoma Electric.

27. Regarding Section 3(b)(i)(3)(j) of the Technology Design Specifications – 4-foot clearance referenced in this Section may conflict with the room sizing as listed in the room data sheets for the IDF, the room dimensions listed in Section 3(b)(i)(3)(b), and Data Rack size requirements in Section 3(b)(i)(3)(k). The sizing listed in the above may be in conflict in order to provide 4’-0” clearance as required of this section. We assume that room dimensions listed in the room data sheets for the IDF are satisfactory. Thoma Electric will work with Owner’s IT representative to resolve conflicts in a manner that does not impost cost onto Thoma Electric.

28. Regarding Section 3(b)(i)(3)(k)(ii) and (iii) of the Technology Design Specifications – no component part numbers are provided, assumes components are at the discretion of Thoma Electric.

29. Regarding Section 3(b)(i)(3)(l) of the Technology Design Specifications – no component part numbers are provided, assumes components are at the discretion of Thoma Electric.

30. Regarding Section 3(d)(5) of the Technology Design Specifications – assumes in underground applications no seismic expansion joint is necessary. Additionally, we assume that the listing for (3) 4” conduits applies only to the routing between the MDF (in the PD building) and the IDF (in the FD building), the scope proposal does not include (3) 4” conduits to the existing fire station apparatus bay because no IDF is located there.

31. Regarding Section 3(d)(6) of the Technology Design Specifications – assumes that requirement for not exceeding 270-degrees of bend applies to routing between site pull-boxes, and that if total bend exceeds 270-degrees within any single conduit run that another pull-box may be added to allow for freedom of routing on-site.

32.Regarding Section 3(e)(i) through 3(e)(xiv) of the Technology Design Specifications – assumes that the term “location” means one data cable and therefore one jack position (as is explicitly described in Section 3(e)(ii)). In applying that definition to all sections (i) through (xiv) we assumes that “1 pair of 2 data locations” represents a single workarea outlet with a single faceplate and two jack positions total, with two cables total, within the same single faceplate.

Council Agenda 7-18-2023 12.B-22
Attachment 1.A
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
5 33. Regarding Section 3(e)(x) of the Technology Design Specifications – we exclude voice/data outlets at each Access Control door. Access Control system as specified by Owner’s pre-selected vendor (SOV) operates on non Cat6A twisted-pair cabling and therefore we assume that access control doors do not require voice/data outlets at each door.

34. Regarding Section 3(e)(vii) of the Technology Design Specifications – clocks are not referenced in the narratives, specifications, or the low voltage technical specifications, therefore we assume that no clocks are required and therefore no infrastructure for clocks are provided.

35. Regarding Section 3(f)(vii) of the Technology Design Specifications – note that J-Hooks are allowed in accessible ceilings per this section.

36. Regarding Section 3(f)(ix) of the Technology Design Specifications – we assume that firestopping is only required where a sleeve passes through a fire-rated assembly, otherwise we exclude firestopping in non-rated assemblies.

37. Regarding Section 3(f)(xi) of the Technology Design Specifications – we assume that patch cable lengths are to be provided as specified in items (1) and (2) in this section, lengths or types required by Owner different than those listed are excluded.

38. Regarding Section 3(f)(xii) of the Technology Design Specifications – we assume that the labeling for the workstation refers to the faceplate only, not patch cable ends.

39. Regarding Section 3(f)(xv) of the Technology Design Specifications – we assume that firestopping at openings only applies to walls/floors that have a fire rated assembly, we exclude firestopping on conduits penetrating non-rated assemblies.

40. Regarding Section 4(a) of the Technology Design Specifications – we assume that all telephone handsets, servers, software, software licensing, routers, call managers, switches, PoE injectors, etc. associated with Voice over IP (VoIP) systems are provided and installed by the Owner. No costs are included in this proposal for procurement, installation, commissioning, or setup of these systems.

41. Regarding Section 4(e)(4) of the Technology Design Specifications – we assume that Owner has made provisions for any rack space required for Dispatch telephone equipment in the bridging documents space planning as provided in the MDF room Data sheets provided in the RFP. No additional locked cabinet is provided in this proposal.

42. Regarding Section 6(f) of the Technology Design Specifications – we assume that Owner will provide the necessary software and/or networking requirements to provide secure wireless. We assume that the requirement for “secure wireless for staff” is not a function of structured cabling, therefore no costs for making wireless secure are included in this scope/fee proposal.

43. Regarding Section 7(a)(iii) of the Technology Design Specifications – the required size of the projector screen as listed in this specifications section may not meet that of ANSI. Pre-bid RFI’s answered by the Owner allow for the implementation of screen sizing based on ANSI recommended viewing distances, therefore projector screen sizes are provided in this proposal based on ANSI recommendations.

44. Regarding Section 8(b)(i)(7) of the Technology Design Specifications – we assume that plenum rated cabling shall only be required where cabling is routed through plenum rated spaces. Thoma Electric excludes providing plenum rated cable through non-plenum spaces. Plenum spaces are not indicated and therefore Thoma Electric is not providing plenum rated cabling.

45. Regarding Section 8(b)(i)(7) of the Technology Design Specifications – we assume that the definition of “Blank Module” as listed in this requirement is defined as a second jack-position for a future cable, and future modular jack to be placed. “Blank Module” is assumed to mean that no cable, no jack, and therefore no termination is required of this second jack position.

Council Agenda 7-18-2023 12.B-23
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
6 46. Regarding Section 8(b)(i)(10) of the Technology Design Specifications – we assume that pathways required for installation of cabling of Video Surveillance systems may be shared and are fundamentally the same as those defined in other sections of the RFP Technical Design Specifications (for example, in Section 3(a)(xvi)(2)). Therefore, we assume that pathway may be shared or otherwise utilized as defined in other sections of this specification.

47. Regarding Section 8(b)(i)(11) of the Technology Design Specifications – we assume that firestopping is only required where a conduit/raceway is penetrating a rated wall/floor, we exclude fire stopping at each penetration if the wall/floor assembly does not require a rating.

48. Regarding Section 8(c)(ii) of the Technology Design Specifications – we assume that pathways required for installation of cabling of Access Control systems may be shared and are fundamentally the same as those defined in other sections of the RFP Technical Design Specifications (for example, in Section 3(a)(xvi)(2)). Therefore, we assume that pathway may be shared or otherwise utilized as defined in other sections of this specification.

49. Regarding Section 8(c)(iv)(3) of the Technology Design Specifications – For the Fire Department, we have been instructed by the City’s IT department to not include a Fire Department Access Control System within the Access Control scope of work because of the nature of Cal Fire employees not being City employees. Instead, mechanical locks with levers and key-cores have been requested to be provided in the future by a vendor of the Owner’s choosing. Therefore, we have excluded an access control system within the Fire Department including any power, readers, networking, cabling, infrastructure, conduit, etc. for powered access control locations.

50. Regarding Section 8(c)(iv) of the Technology Design Specifications – Zones as provided in the RFP response have been directed by City’s pre-selected vendor (SOV) and as such constitute the requirements for access-control locations placed on the DBE. Additional doors as directed by the City may be considered at added cost.

51. Regarding Section 8(d)(i)(2)(c) of the Technology Design Specifications – There may be instances where Intercom cabling cannot be provided with a 1-foot of separation from AC sources, therefore we assume that where crossing at a 90-degree angle, separation of conductors will be acceptable at any distance, and running more than 12-feet in length in any single route, while in parallel to a 120V source, less than 1-foot of separation will be prohibited.

52. Regarding Section 9(a)(i) of the Technology Design Specifications – Supports for the antenna structures are provided at the parapet walls or mechanical screen walls independent of apparatus as referenced in this section, as has been discussed with City’s recommended radio vendor (ATG). Therefore, no additional penetrations or supports have been included as the support apparatus is similarly not included.

53. Regarding Section 9(b)(i)(1) of the Technology Design Specifications – we assume that firestopping is only required where a conduit/raceway is penetrating a rated wall/floor, we exclude fire stopping at each penetration if the wall/floor assembly does not require a rating.

54. Regarding Section 9(d)(i) of the Technology Design Specifications – As required in Section 9(d)(i)(1)(a) and (b) the radio surveys only for bi-directional antenna are provided, therefore per 9(d)(i) Thoma Electric excludes any additional raceway, wiring, switching, power, controls, electronics, licensing, etc. to provide a bi-directional amplifier for either the PD or FD facility.

55. Regarding Section 9(d)(ii) of the Technology Design Specifications – the RFP clearly does not require a small-cell network for cellular coverage system to be installed, therefore Thoma Electric assumes it will not be required and is therefore excluded from the scope of work in this proposal.

Assumes that if major loss of signal is identified during surveying work required under this Council Agenda 7-18-2023 12.B-24
Attachment 1.A
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
7 section, then costs of all work related to addition of interior small cell network for cellular will be identified as additional to the base scope of work and added to Thoma Electric’s contract.

56. We assume that the City of Pismo Beach IT will provide analog audio sources as inputs for the Police Station Public Address system.

57. Assumes Owner will take ownership of all software licensing and/or operations agreements upon Owner’s occupancy, Software terms, usage terms, and any required licensing are passed through to end user as-is upon Owner’s occupancy. Software licensing or yearly subscriptions of low voltage systems is valid for the following durations (proposal excludes any software licensing or subscriptions for any systems that are not explicitly listed below):
a. Access Control – 1-year
b. Fire Station Alerting System – 1-year

58. Assumes that any licensing agreement or authorization for radio systems installed under this project with local, state, federal, or any other jurisdiction, including any payment of fees, is separately provided by Owner direct to licensing agencies. No costs are included in this proposal for radio licensing or authorization to transmit.

59. Assumes that Owner already has an existing AMAG SSA (service agreement with existing Access Control Server equipment) located at City Hall in Pismo Beach. We assume that costs for adding access control doors and credentials under this proposal will constitute an addition to the existing service agreement with a 1-year term only. Agreement terms and conditions to be separately negotiated by Owner.

60. Assumes that upon establishing new Utility point of demarcation of serving low-voltage utilities (Charter/Spectrum and AT&T) that City of Pismo Beach IT services will coordinate with all other non-DBE provided equipment and services vendors or contractors for incorporation of their equipment, commissioning, licensing, setup, migration, etc. as required for fully functional dispatch operations. Thoma Electric excludes project management time, labor, equipment, materials, etc. to coordinate with Owner’s separately retained vendors or contractors for low- voltage services unless explicitly included in this proposal.

61. Assumes that the Owner will provide all necessary points of connection with analog or IP based input/output for integration with low voltage systems such as, but not limited to, the Fire Station Alerting System, Paging, etc. Such input/output equipment/jacks/locations/etc. are assumed to be provided at MDF by the Owner.

62. Assumes Owner has arranged any and all provisions for power, utility, or low-voltage service for temporary relocation of any and all fire and police operations. Excludes all design and construction services for setup/teardown/relocation of existing or new temporary services off-site or on-site for any power or low-voltage services that may be required for police or fire operations to continue after Owner vacates the site for construction activities.

63. Assumes that Owner has separately procured the Computer Aided Dispatch (CAD) systems, if necessary for this project. As no CAD system is required by the RFP, none is provided, and therefore we assume that any servers, workstations, monitors, peripherals, hardware, software licensing, recurring usage fees, etc. required to operate a CAD system shall be provided and installed by Owner.

64. Assumes that Fire Alarm monitoring service will be transferred to Owner immediately upon Owner occupancy, and that any recurring fees, licensing, etc. associated with monitoring of Fire Alarm system shall be transferred to Owner.

Council Agenda 7-18-2023 12.B-25
Attachment 1.A
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
8 Scope of Work Breakdown for Communications Systems:

As a result of the Owner desiring to include some of the low-voltage systems in the FF&E budget (as requested in the RFP), the following are our assumptions regarding scope/cost allocation to Thoma Electric, to the FF&E budget (which is the Owner’s responsibility and not included in Thoma Electric’s cost of construction), and to the Owner:

1. The following scopes of work are included within Thoma Electric’s scope/cost:
a. Underground communications conduits from AT&T and Charter points of connection on- site (carrier to install service conductors, Owner to pay all utility fees and establish carrier services associated).
b. Voice/data cabling in-building and associated patch cables per the RFP. c. UPS for MDF and IDFs, refer to technical narrative for rough sizing. d. Testing only for reception levels of small-cell carriers for future in-building cellular distributed antenna system (installation of system not included, testing is included). e. Move of the dispatch logging recorder currently located in the police station to City Hall. f. 4-post cabinets for radio network systems in MDF and IDFs, and associated PDU’s. g. Overhead cable-tray “ladder rack” (in MDF and IDFs) and station workarea outlet/field device pathway for dispatch workstations.
h. Rough-in to roof and antenna support structure for roof-mounted police dispatch antennas.
i. Testing only for reception levels of local emergency radio carriers for future in-building bi-directional antenna system (installation of system not included, testing is included). j. Antenna grounding, rough-in for GND bus bar at MDF and main electrical service. k. Rough-in of electrical raceway for audio/video systems. l. CableTV in-building cable distribution system.
m. Rough-in and head-end equipment for both Fire Station Alerting System and PA system in police department and fire department.
n. Rough-in for Electronic Security Systems including cabling and power for surveillance cameras, access-control locations, and intercom locations. Note that Fire Department does not have electronic access control, as it is not required.

2. The following scopes of work are included in the FF&E scope/cost (and is not included in Thoma Electric’s base contract scope/cost):
a. Dispatch workstations, including console furniture, Avtec consoles, radio headsets, foot- switches, microphones, PC’s, monitors, printers, and peripherals. b. City of Pismo Beach police dispatch radio systems and WAN radio. c. Antenna mounting to roof, including cable termination of coaxial cables and bonding of antenna system, dispatch consoles, etc.
d. Permanently installed audio/video systems, speakers, equipment racks, wall mounted control panels, meeting room displays for non-dispatch related audio/video systems or otherwise not listed as Owner provided.
e. Workstation for intercom system, including standard monitor and peripherals. f. Workstation for video surveillance system, including standard monitor and standard peripherals.
g. Workstation for access-control badging and Controls, including standard monitor, dual sided card printer, and standard peripherals.

Council Agenda 7-18-2023 12.B-26
Attachment 1.A
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F+H Construction
Pismo Beach Public Safety Facility
Thoma Electric, Inc.
9 h. Touchscreen for Access Control (map for unlocking doors/gates) at Dispatch locations – total of (5) locations with mounts.
i. Video surveillance system including cameras, NVR recording system, and PoE ethernet switches.
j. Access Control system including card readers, access control panels, and software licensing (1-year), and access control credentials (cards). k. Interview room recording systems – integrated with video surveillance systems (note that the ability to switch on/off recording interior to interview room is not included). l. Intercom door hardware (integrated camera/speaker/microphone) local to select doors.

3. The following scopes of work are excluded from Thoma Electric’s scope/cost to procure or install (and therefore excluded from Thoma Electric’s scope/cost):
a. Network switches, servers, firewall, router, telephone, VoIP systems and handsets, any other business/phone switches, public safety telephone, and 911 specialty telephone equipment.
b. Desks, personal computers, scanners, multifunction copiers, monitor’s, mice, keyboards, printers, peripherals for non-dispatch workstations.
c. Wireless Access Points (owner furnished, contractor installed) d. Any and all network switches, routers, firewall for dispatch for non-dispatch functions. e. Any other City of Pismo Beach Radio systems not listed in the RFP. f. Dispatch audio/video systems including displays, monitors/televisions not requiring integration with wall mounted controls.
g. CableTV set-top boxes.
h. Computer Aided Dispatch (CAD) system in its entirety. i. Access Control System Server (assumes existing server at City Hall is sufficient to serve new PD/FD locations).
(1'2)'2&80(17
Council Agenda 7-18-2023 12.B-27
Attachment 1.A
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.C

SUBJECT/TITLE:

AGREEMENT WITH CLAD CONSULTING, INC. FOR PROJECT MANAGEMENT OF

RELOCATION OF EMERGENCY SERVICES RELATED TO THE PUBLIC SAFETY

FACILITY
RECOMMENDATION:

BACKGROUND:

The City of Pismo Beach desires to complete design and construction of a Public Safety Facility as part of the Council’s goal to enhance public safety service to the community.

Completion of the project will require relocation of existing services and facilities, review of construction design, inspection of construction progress, and coordination of required IT systems in both temporary and permanent installations.

Relocation of Emergency Services Project Management
Staff solicited quotes from consultants for project management, coordination, construction management and construction inspection services for the emergency services temporary facilities. This includes the demolition of the existing buildings at 330 Main Street, replacement with modular buildings, preparation of Suite A-1 at City Hall and Fire day use room at the Pismo Beach Veterans’ Hall. Staff received a quote from CLAD Consulting, Inc. (CLAD) on June 15, 2023 (cost proposal provided as Attachment 1.A) and recommends that the City Council adopt a Resolution awarding the contract.

Plan Review & Inspection
Staff issued a Request for Proposals (RFP) for Plan Review & Inspection Services for the construction of the Public Safety Facility, due to the scale of the project and the specialized nature of the design-build process. Four proposals were received and were evaluated by a panel based on the following:
Understanding of the scope of work to be performed
Methods, schedule, and procedures to be used
Management, personnel and experience
Consultation and coordination with the City of Pismo Beach Following review and evaluation of the cost proposals, additional information was requested of the applicants to ensure services offered were comparable. Staff will return to the Council on August 1, 2023, to recommend award of the contract.

12.C-1Council Agenda 7-18-2023
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IT Project Management Services
Staff issued an RFP for Public Safety information Technology Project Management Services for the migration of Police and Fire and construction of the Public Safety Facility.

Two proposals were received and were evaluated by a review committee. NewTel Consulting LLC was selected to perform the work based on the following:
Understanding the scope of work to be performed
Methods, schedule, and procedures to be used
Availability of essential personnel
History and performance of firm/project team on similar projects Based on the most recent construction schedule, a review of the scope of work needs to be completed before the award of the contract. Staff will return to the Council on August 1, 2023, to recommend award of the contract.

Conclusion and Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) with CLAD Consulting Inc. in the amount of $63,250 for Project Management, Coordination, Construction Management and Construction Inspection Services for emergency services temporary facilities associated with the Public Safety Facility Project.

FISCAL IMPACT:

The fiscal impact of adopting the Resolution is $63,250 for CLAD consulting services.

The FY 2024 Capital Projects Fund Public Safety Facility project budget includes sufficient funds to support this project.

ALTERNATIVES:

1. Do not authorize the proposed agreement; provide direction to staff.

ATTACHMENTS:

1. Resolution

1.A Exhibit A to Resolution: CLAD Cost Proposal

2. Vendor Agreement
Prepared by: Meeting Date: July 18, 2023
Ian Livingston, Building Official
Erin Olsen, Management Analyst
Jason Takagi, Information Technology Manager
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer Interim City Manager Approval:

12.C-2Council Agenda 7-18-2023
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RESOLUTION NO. R-2023-XXX

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

CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH CLAD CONSULTING, INC. IN THE AMOUNT OF $63,250 FOR PROJECT MANAGEMENT, COORDINATION,

CONSTRUCTION MANAGEMENT AND CONSTRUCTION INSPECTION SERVICES

FOR EMERGENCY SERVICES TEMPORARY FACILITIES
WHEREAS, during construction of the Public Safety Facility it is necessary to relocate emergency services into temporary facilities for the duration of the project; and WHEREAS, staff solicited quotes from consultants for project management, coordination, construction management and construction inspection services for the emergency services temporary facilities; and
WHEREAS, work includes the demolition of the existing buildings at 330 Main Street, replacement with modular buildings, preparation of Suite A-4 at City Hall and Fire day use room at the Pismo Beach Veterans’ Hall; and
WHEREAS, staff received a quote from CLAD Consulting, Inc. on June 15, 2023.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into a Professional Services Agreement with CLAD Consulting, Inc. in the amount of $63,250 for Project Management, Coordination, Construction Management and Construction Inspection Services for the emergency services temporary facilities (cost proposal 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 18th day of July 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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

12.C-3Council Agenda 7-18-2023
Attachment 1
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workwithclad.com
PO Box 1069, Grover Beach, CA 93483
June 15, 2023
Eric Eldridge, PE
Senior Engineer
City of Pismo Beach
760 Mattie Road
Pismo Beach, CA 93449
Project Name: Temporary Emergency Services Facilities
Dear Eric,
CLAD Consulting, Inc. is pleased to submit the following proposal for the scope of work noted below.

We understand that the City has an upcoming project to prepare temporary emergency services facilities. The temporary facilities will be located at various locations throughout the City, including but not limited to City Hall, 330 Main Street, and the Veterans Memorial Hall. CLAD proposes its services for project management and coordination of the temporary facilities’ construction.

If this proposal meets your requirements, please return the signed Acceptance of Proposal which will serve as our notice to proceed.

Sincerely,
L. Alberto Lopez, RCE, QSD/P
CLAD Consulting, Inc.

Principal
INI: lal
2023-035

12.C-4Council Agenda 7-18-2023
Attachment 1.A
Packet Page 165

workwithclad.com
PO Box 1069, Grover Beach, CA 93483
SCOPE OF WORK:

CLAD will provide the project management, coordination, construction management, and construction inspection services for the emergency services temporary facilities. This includes the demolition of the existing buildings at 330 Main Street, replacement with modular buildings, preparation of Suite A-4 at City Hall, and Fire day use room at the Vets Hall. We will work closely with the various City departments to complete a functional and code compliant facility.

Deliverables

1. Demolition permits

2. Demolition of existing structure

3. Abandonment of utilities (temp and/or permanent)

4. Finalize modular building acquisition

5. Coordinate planning and building permits

6. Modular building installation

7. Utility hook ups

8. IT coordination

9. Tasks as necessary for the completion and move in of the Police Department, Fire Department, and other affected Departments.

Time and Materials with Estimate:

Based on the inspection items listed above, we estimate a total of 500 hours for project management, project coordination, and construction inspections.

Project Manager $140/hr
Construction Inspections $125/hr
Project Coordinator $105/hr
Estimated Total $63,250*
*Fees are valid for 60 days from the proposal date.

12.C-5Council Agenda 7-18-2023
Attachment 1.A
Packet Page 166

workwithclad.com
PO Box 1069, Grover Beach, CA 93483
Thank you for the opportunity to be of service. If you have any questions, please contact me at (805) 440-0885.

Sincerely,
CLAD Consulting, Inc.

L. Alberto Lopez, RCE, QSD/P (C 67602)
Principal
This proposal dated June 15, 2023 has been read and accepted by the undersigned party responsible for payment.

Signature -Date -
Name (Print) -Company -
Title -

12.C-6Council Agenda 7-18-2023
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 CLAD Consulting, 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:

Project Management, Coordination, Construction Management and Construction Inspection Services for emergency services temporary facilities
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 December 31, 2024. 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 sixty three thousand two hundred fifty dollars ($63,250), unless otherwise first approved in writing by CITY. Should this 2 of 12
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AGREEMENT 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.

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Vendor Agreement (Rev. 2/2/2018)
VII. CITY REPRESENTATIVE

The Engineering Manager 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

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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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Vendor Agreement (Rev. 2/2/2018)
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

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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

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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.

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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

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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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Vendor Agreement (Rev. 2/2/2018)
VENDOR:

CLAD Consulting, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice (See Section XVIII):
______________________________________
______________________________________
Email address for official communications:
______________________________________
Vendor Representative (See Section VIII):

Name/Title: ____________________________
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: JRUJH*DUFLD
Title: ,QWHULPCity 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
Attachments:

Exhibit A: Scope of Service
Exhibit B: Compensation Schedule

12.C-12Council Agenda 7-18-2023
Attachment 2
Packet Page 173

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June 15, 2023
Eric Eldridge, PE
Senior Engineer
City of Pismo Beach
760 Mattie Road
Pismo Beach, CA 93449
Project Name: Temporary Emergency Services Facilities
Dear Eric,
CLAD Consulting, Inc. is pleased to submit the following proposal for the scope of work noted below.

If this proposal meets your requirements, please return the signed Acceptance of Proposal which will serve as our notice to proceed.

Sincerely,
L. Alberto Lopez, RCE, QSD/P
CLAD Consulting, Inc.

Principal
INI: lal
2023-035
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SCOPE OF WORK:

Deliverables

1. Demolition permits

2. Demolition of existing structure

3. Abandonment of utilities (temp and/or permanent)

4. Finalize modular building acquisition

5. Coordinate planning and building permits

6. Modular building installation

7. Utility hook ups

8. IT coordination

9. Tasks as necessary for the completion and move in of the Police Department, Fire Department, and other affected Departments.

Time and Materials with Estimate:

Based on the inspection items listed above, we estimate a total of 500 hours for project management, project coordination, and construction inspections.

Project Manager $140/hr
Construction Inspections $125/hr
Project Coordinator $105/hr
Estimated Total $63,250*
*Fees are valid for 60 days from the proposal date.

12.C-13Council Agenda 7-18-2023
Attachment 2
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.D

SUBJECT/TITLE:

AWARD OF CONTRACTS TO BROUGH CONSTRUCTION, INC. AND CLAD CONSULTING, INC. FOR THE PALISADES AND CHUMASH PARKS PLAYGROUND

PROJECT
RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to:

1. Execute a contract with Brough Construction, Inc. for construction of the Palisades and Chumash Parks Playground project in the amount of $1,445,380; and

2. Enter into a Professional Services Agreement with CLAD Consulting, Inc. in the amount of $129,248 for Construction Management, Inspection & Administration Services.

BACKGROUND:

One of the City Council’s top goals is to “build on the strength of our local community to preserve the City’s ‘Classic California’ charm and ensure an exceptional quality of life for residents.” To achieve this goal, the Fiscal Year 2024 budget includes the Palisades and Chumash Parks Playground Project. The project includes the purchase and installation of new play equipment at both Palisades Park and Chumash Park along with related site improvements.

Construction
The project was advertised for construction bids on April 20, 2023. A single bid was received on May 18, 2023 in the amount of $1,445,380 from Brough Construction, Inc. (Brough). Staff has verified Brough’s references and qualifications, and recommends the Council adopt a Resolution (Attachment 1) awarding a contract (Attachment 2) to Brough in the amount of $1,445,380 (bid schedule provided at Attachment 1.A) to complete construction of the project.

Construction Management
On May 18, 2023 staff issued a formal Request for Proposals (RFP) for Construction Management, Inspection and Administration Services. One proposal was received on June 1, 2023 from CLAD Consulting, Inc. (CLAD). The proposal was evaluated by a review panel based on the following:
Understanding the scope of work to be performed
Methods, schedule and procedures to be used
Management, personnel and experience
Consultation and coordination with the City of Pismo Beach CLAD’s cost proposal for construction management, inspection and administration services is provided at Attachment 1.B. Adoption of the Resolution provided as Attachment 1 will also award a contract (Attachment 3) to CLAD for these services.

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Conclusion and Recommendation
Staff recommends the Council adopt the Resolution provided as Attachment 1 authorizing the City Manager to enter into a contract with Brough in the amount of $1,445,380 for construction of the Palisades and Chumash Parks Playground Project and a Professional Services Agreement with CLAD in the amount of $129,248 for Construction Management, Inspection & Administration Services.

FISCAL IMPACT:

The fiscal impact of adopting the subject Resolution is a total estimated project cost of $1,753,380 to construct the project. The total estimated cost also includes construction management, certified playground inspections, archeological monitoring and a 10% contingency. The Fiscal Year (FY) 2024 Capital Projects Fund budget includes $1,800,000 for completion of the project.

Current Project Funding
Palisades and Chumash Parks Project Budget $1,800,000
Estimated Project Cost
Construction Costs (Brough) $1,445,380
Construction Management (CLAD) $129,248
Certified Playground Inspection $4,650
Archeological Monitoring $14,500
10% Contingency $159,377
Total Estimated Project Cost $1,753,155
Budget Surplus $46,845
ALTERNATIVES:

1. Do not authorize all or a portion of the recommended items; provide direction to staff.

ATTACHMENTS:

1. Resolution

1.A Exhibit A to Resolution: Brough Bid Schedule

1.B Exhibit B to Resolution: CLAD Cost Proposal

2. Brough Construction Agreement

3. CLAD Vendor Agreement
Prepared by: Meeting Date: July 18, 2023
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer Interim City Manager Approval:

12.D-2Council Agenda 7-18-2023
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RESOLUTION NO. R-2023-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO:

1. EXECUTE A CONTRACT WITH BROUGH CONSTRUCTION, INC. FOR

CONSTRUCTION OF THE PALISADES AND CHUMASH PARKS PLAYGROUND PROJECT IN THE AMOUNT OF $1,445,380; AND

2. ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH CLAD CONSULTING, INC. IN THE AMOUNT OF $129,248 FOR CONSTRUCTION

MANAGEMENT, INSPECTION & ADMINISTRATION SERVICES
WHEREAS, the Palisades and Chumash Parks Playground Project includes the purchase and installation of new play equipment at both Palisades Park and Chumash Park along with related site improvements; and
WHEREAS, the project was advertised for construction bids and a single bid was received from Brough Construction, Inc.; and
WHEREAS, staff has verified Brough’s references and qualifications; and WHEREAS, staff issued a formal Request for Proposals for Construction Management, Inspection and Administration Services and received one proposal from CLAD Consulting, Inc.; and
WHEREAS, the proposal was evaluated by a review panel based on the following:
Understanding the scope of work to be performed
Methods, schedule and procedures to be used
Management, personnel and experience
Consultation and coordination with the City of Pismo Beach; and WHEREAS, the Fiscal Year (FY) 2024 Capital Projects Fund includes sufficient funds for the Palisades and Chumash Parks Playground Project.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute a contract with Brough Construction, Inc. for construction of the Palisades and Chumash Parks Playground project in the amount of $1,445,380 in FY 2024 (Exhibit A).

BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into a Professional Services Agreement with CLAD Consulting, Inc. in the amount of $129,248 for Construction Management, Inspection & Administration Services in FY 2024 (Exhibit B).

12.D-3Council Agenda 7-18-2023
Attachment 1
Packet Page 177

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 18th day of July 2023, 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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12.D-5Council Agenda 7-18-2023
Attachment 1.A
Packet Page 179

12.D-6Council Agenda 7-18-2023
Attachment 1.A
Packet Page 180

12.D-7Council Agenda 7-18-2023
Attachment 1.A
Packet Page 181

CM for Palisades & Chumash Parks
June 1, 2023
Eric Eldridge, P.E.

City of Pismo Beach
760 Mattie Road
Pismo Beach, CA 93449
Project Name: Construction Management, Inspection & Administration Services for the Palisades and Chumash Parks Playground Project - Fee
Dear Eric,
Below is our proposed time and materials, not to exceed fee for this work. Enclosed is our fee breakdown detailing tasks, estimated hours, employee rates, and the fee totals. Should any revisions to the cost estimate (project duration, tasks, etc.) be requested before contract execution, you will find CLAD to be extremely responsive in fulfilling the City’s requests.

Time and Materials, Not to Exceed Fee: $129,248
We thank you again for the opportunity to propose on this project and look forward to working with you.

Sincerely,
CLAD Consulting, Inc.

L. Alberto Lopez, RCE, QSD/P
Principal
805-440-0885

12.D-8Council Agenda 7-18-2023
Attachment 1.B
Packet Page 182

Date: 6/1/2023 CM for Palisades & Chumash Parks Playground Project 2023 Rates 150 140 105 120
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HRS HRS HRS HRS $$Man-Days Day Day
Construction Management, Inspections $129,248 100%
Project set up, submittals 8 24 8 $5,400
Onsite Construction (4 months)85 510 85 4 $93,555
Project Close Out 8 24 8 $5,400
$0
Geotechnical Inspections 22630 $24,893
$0
$0
$0
$0
$0
$0
Geotechnical Inspections $0 0%
$0
$0
Task 3 $0 0%
$0
$0
$0
$0
$0
$0
$0
Task 4 $0 0%
$0
$0
$0
$0
$0
$0
$0
$0
$0
Task 5 $0 0%
$0
$0
Task 6 $0 0%
$0
$0
$0
Total 101 558 101 4 22630
$129,248

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CITY OF PISMO BEACH

CONSTRUCTION SERVICES AGREEMENT
This Construction Services Agreement (“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 Brough Construction, Inc., a corporation ("CONTRACTOR"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

I. SCOPE OF WORK
CONTRACTOR shall perform within the time set forth in Article 2 of this AGREEMENT and shall furnish at its own cost all labor, materials, equipment, tools, utility services, and transportation and perform and complete all work required in connection with the construction of new play equipment and related site improvements for the Palisades and Chumash Parks Playground Project (hereinafter “Project”).

By entering into this AGREEMENT, CONTRACTOR acknowledges that there may be other contractors on the site whose work will be coordinated with that of its own. CONTRACTOR expressly warrants and agrees that it will cooperate with other contractors and will do nothing to delay, hinder, or interfere with the work of other separate contractors, CITY, the Project Manager, the Public Works Director/City Engineer, or utilities. CONTRACTOR also expressly agrees that, in the event its work is hindered, delayed, interfered with, or otherwise affected by a separate contractor, its sole remedy will be a direct action against the separate contractor. To the extent allowed by law, CONTRACTOR will have no remedy, and hereby expressly waives any remedy against CITY, the Project Manager, or the Public Works Director/City Engineer on account of delay, hindrance, interference or other events caused by a separate contractor.

II. TIME FOR PROJECT COMPLETION
All of CONTRACTOR’s work on the Project shall be completed within durations established for the individual activities as set forth in the Project Construction Schedule. All work shall commence fifteen (15) calendar days after receiving a written Notice to Proceed from CITY or Project Manager, if a Project Manager is employed by CITY on the Project. CONTRACTOR shall refer to the invitations for bids, and Project Plans and Specifications, all of which, as set forth below, are incorporated herein by reference, for contractual obligations regarding individual activity durations. The aggregate sum total work of all individual Prime Contractors to CITY comprises the entire “Project” and shall be commenced and completed in conformance with the Project Construction Schedule. The entire Project shall be completed within 80 consecutive working days (“Contract Time”).

III. THE CONTRACT SUM
CITY shall pay to CONTRACTOR for the performance of this AGREEMENT, subject to any additions and deductions provided in the Project documents, the sum of one million four hundred forty-five thousand three hundred eighty dollars ($1,445,380).

IV. PROGRESS PAYMENTS
Based upon Applications for Payment submitted to the Public Works Director/City Engineer by CONTRACTOR and Certificates for Payment issued by the Public Works Director/City Engineer, CITY shall make progress payments on account of the Contract Sum to CONTRACTOR as provided in the General Conditions.
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This AGREEMENT is subject to the provisions of Article 1.7 (commencing at Section 20104.50) of Division 2, Part 3 of the Public Contract Code regarding prompt payment of contractors by local governments. Article 1.7 mandates certain procedures for the payment of undisputed and properly submitted payment requests within 30 days after receipt, for the review of payment requests, for notice to CONTRACTOR of improper payment requests, and provides for the payment of interest on progress payment requests which are not timely made in accordance with that Article. This AGREEMENT hereby incorporates the provisions of Article 1.7 as though fully set forth herein.

This AGREEMENT is also subject to the provisions of Public Contract Code Section 9204, which provides for the submission and resolution of specified claims by CONTRACTOR, including provisions governing the type of claims that may be submitted, the time to respond to such claims, and alternative dispute resolution procedures. The provisions of Section 9204 are incorporated herein by reference, and to the extent CONTRACTOR asserts a claim specified by Section 9204, CONTRACTOR shall comply with all provisions set forth in Section 9204 in submitting a claim to CITY.

V. RETENTION OF SECURITIES
Public Contract Code Section 22300 permits the substitution of securities for any monies withheld by CITY to ensure performance under a contract, at the request and expense of CONTRACTOR.

Substitution of securities shall not be required in contracts in which there will be financing provided by the Farmers Home Administration of the United States Department of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. Sec. 1921 et seq.), and where federal regulations or policies, or both, do not allows the substitution of securities. Alternatively, CONTRACTOR may request that CITY make payment of retention earned directly to an escrow agent at the expense of CONTRACTOR. At the expense of CONTRACTOR, CONTRACTOR may direct the investment of the payments into securities and CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this section for securities deposited by CONTRACTOR. Upon satisfactory completion of the contract, CONTRACTOR shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from CITY, pursuant to the terms of this section.

The escrow agreement entered into pursuant to this section must be substantially similar to the form included in Public Contract Code Section 22300(e). CONTRACTOR shall obtain the written consent of its surety to such escrow agreement. Securities eligible for investment under this section shall include those listed in Section 16430 of the Government Code, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed to by CONTRACTOR and CITY.

In accordance with Public Contract Code Section 22300(d)(1), if CONTRACTOR elects to receive interest on moneys withheld in retention by CITY, CONTRACTOR shall, at the request of any subcontractor performing more than five percent of CONTRACTOR’s total bid, make that option available to the subcontractor regarding any moneys withheld in retention by CONTRACTOR from the subcontractor.

VI. INDEMNITY, DEFENSE AND HOLD HARMLESS AGREEMENT
To the fullest extent permitted by law, CONTRACTOR 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 CONTRACTOR’s performance or CONTRACTOR’s failure to perform its obligations under this

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AGREEMENT or out of the operations conducted by CONTRACTOR, 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 CONTRACTOR’s performance of this AGREEMENT, CONTRACTOR 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.

Payment by CITY is not a condition precedent to enforcement of the indemnities in this section. In the event of any dispute between CONTRACTOR and CITY, as to whether liability arises from the active negligence, sole negligence, or willful misconduct of CITY or its officers, employees, or agents, CONTRACTOR 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. CONTRACTOR will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorneys' fees, expert fees, and costs of litigation. The provisions of this Section VI shall survive completion of CONTRACTOR’s services or the termination of this AGREEMENT.

VII. PREVAILING WAGES
A. Wage rates for this Project shall be in accordance with the General Wage Determination Made by the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1, for San Luis Obispo County. Wage rates shall conform with those posted at 760 Mattie Road, Pismo Beach, and the Project site.

B. The following Labor Code sections are hereby referenced and made a part of this AGREEMENT:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

2. Section 1777.4 - Apprenticeship Requirements.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1775 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

VIII. RECORD AUDIT
In accordance with Government Code, Section 8546.7, records of both CITY and CONTRACTOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

IX. CERTIFICATIONS
In addition to certification and licensing requirements identified elsewhere in this agreement, CONTRACTOR shall maintain the following certifications for the duration of this AGREEMENT:

A. None
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X. FINAL PAYMENT
Final payment, constituting the entire unpaid balance of the Agreement Sum, shall be paid by CITY to CONTRACTOR no sooner than thirty-five (35) days after a Notice of Completion has been recorded, unless otherwise stipulated in the Notice of Completion, provided the work has then been completed, the AGREEMENT fully performed, and a final Certificate for Payment has been issued by the Public Works Director/City Engineer.

XI. CONTRACTOR'S FAILURE TO PROCURE COMPLETION OF PROJECT In the event CONTRACTOR fails to furnish tools, equipment, or labor in the necessary quantity or quality, or fails to prosecute the work or any part thereof contemplated by this AGREEMENT in a diligent and workmanlike manner, and if CONTRACTOR for a period of three (3) calendar days after receipt of written demand from CITY or its designated representative to do so, fails to furnish tools, equipment, or labor in the necessary quantity or quality, and to prosecute its work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within said three (3) calendar days, fails to continue to do so; then CITY may exclude CONTRACTOR from the premises, or any portion thereof, and take possession of said premises or any portion thereof, together with all material and equipment thereon, and may complete the work contemplated by this AGREEMENT or any portion of said work, either by furnishing the tools, equipment, labor or material necessary, or by letting the unfinished portion of said work, or the portion taken over by CITY to another contractor or by a combination of such methods. In any event, the procuring of the completion of said work, or the portion thereof taken over by CITY, shall be a charge against CONTRACTOR, and may be deducted from any money due or becoming due to CONTRACTOR from CITY, or CONTRACTOR shall pay CITY the amount of said charge, or the portion thereof unsatisfied. The sureties, provided for under this AGREEMENT shall become liable for payment should CONTRACTOR fail to pay in full any said cost incurred by CITY.

XII. INSURANCE
A. Prior to the beginning of and throughout the duration of the Project, CONTRACTOR and its subcontractors shall maintain insurance in conformance with the requirements set forth below.

CONTRACTOR may use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so.

CONTRACTOR acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to CONTRACTOR or its subcontractors in excess of the limits and coverage identified in this AGREEMENT and which is applicable to a given loss, claim or demand, will be equally available to CITY.

CONTRACTOR shall provide the following types and amounts of insurance:

1. General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office 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, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard Insurance Services Office (ISO) “insured contract” language will not be accepted.

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2. Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 (06/92) covering bodily injury and property damage for all activities of CONTRACTOR arising out of or in connection with the Project, 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. Umbrella or excess liability insurance. CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
i. A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;
ii. Pay on behalf of wording as opposed to reimbursement; iii. Concurrency of effective dates with primary policies; iv. Policies shall “follow form” to the underlying primary policies; and v. Insureds under primary policies shall also be insureds under the umbrella or excess policies.

4. Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code et seq. In addition, CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees.

5. CONTRACTOR 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.

6. Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a CONTRACTOR’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this AGREEMENT shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non- owned disposal sites.

7. Products/completed operations coverage. Coverage shall extend a minimum of three (3) years after project completion and shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage.

Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.

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8. Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only CITY has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below.

i. The named insureds shall be CONTRACTOR and CITY, including its officers, officials, employees, and agents. All Subcontractors (excluding those solely responsible for design work) of any tier and suppliers shall be included as additional insureds as their interests may appear. CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY. The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to CITY. ii. Policy shall be provided for replacement value on an "all risk" basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the site or any staging area. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sublimits and shall be submitted to CITY prior to commencement of construction.

B. Other provisions or requirements:

1. Proof of insurance. CONTRACTOR 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.

CITY’s Risk Manager or City Attorney may waive the requirement of any insurance policy set forth herein if he/she determines that such a policy is not commercially available to CONTRACTOR, or if the risk to CITY is sufficiently minimal to render such insurance unnecessary. If such a policy is commercially available, additional cost to CONTRACTOR in obtaining such a policy shall not be a basis upon which the insurance requirement will be waived. Current certification of insurance shall be kept on file with CITY at all times during the term of AGREEMENT. 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. CONTRACTOR 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 Project hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors. CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations

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claims. CITY and its officers, elected officials, employees, and agents shall continue as additional insureds under such policies.

3. Primary/noncontributing. Coverage provided by CONTRACTOR 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 requirements 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 CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments. In the alternative, CITY may terminate this AGREEMENT.

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 officers, agents, officials, employees, and volunteers or shall specifically allow CONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONTRACTOR 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). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on CITY nor does it waive any rights hereunder.

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 CONTRACTOR maintains higher limits than the minimums shown above, CITY requires and shall be entitled to coverage for the higher limits maintained by CONTRACTOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

9. Notice of cancellation. CONTRACTOR 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 CONTRACTOR’S policy of insurance cannot be endorsed to provide this notice of cancellation, CONTACTOR shall provide CITY notice 8 of 11
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of such cancellation, in writing, not later than 24 hours following the effective time of such cancellation.

10. Additional insured status. General liability and automobile insurance policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers 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."

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 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 CONTRACTOR’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. CONTRACTOR agrees to ensure that its subconsultants, subcontractors, and any other party providing any work on the Project under the direction of CONTRACTOR, provide the same minimum insurance coverage and endorsements required of CONTRACTOR. CONTRACTOR 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.

CONTRACTOR agrees that upon request, all agreements with consultants, subcontractors, and others engaged in performing work on the Project will be submitted to CITY for review.

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

15. Self-insured retentions. Any deductibles or self-insured retention must be declared to and approved by CITY. At the option of CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects CITY, its elected and appointed officials, employees and volunteers, or CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Self-insurance will not be considered to comply with this paragraph unless approved by CITY.

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

17. Additional insurance. CONTRACTOR 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 Project.

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XIII. CONTRACTOR'S LICENSE
CONTRACTOR must possess at the time of commencing work and throughout the Project duration, a Contractor's License, issued by the State of California, which is current and in good standing.

CONTRACTOR shall ensure that any subcontractor working on the Project possesses at the time of commencing work and throughout the Project duration, a Contractor's License, issued by the State of California, which is current and in good standing.

XIV. REGISTRATION REQUIREMENTS
Pursuant to Section 1771.1(a) of the Labor Code:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.” CONTRACTOR must be registered with the Department of Industrial Relations (DIR) of the State of California in order to be eligible to work on public works projects. CONTRACTOR must ensure registration with the DIR that is active and in good standing.

Except as otherwise provided in Labor Code Section 1771.1(a), no contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

XV. CORPORATION IN GOOD STANDING
If CONTRACTOR is a corporation, the undersigned hereby represents and warrants that the corporation is duly incorporated and in good standing in the State of California, and that the undersigned is authorized to act for and bind the corporation.

XVI. PROVISIONS REQUIRED BY LAW
Each and every provision of law and clause required by law to be inserted in this AGREEMENT shall be deemed to be inserted herein and the AGREEMENT shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either party the AGREEMENT shall forthwith be physically amended to make such insertion or correction.
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XVII. SUBSURFACE HAZARDOUS MATERIALS
A. Pursuant to Public Contract Code Section 7104, in the event the Project includes trenches or other excavations extend deeper than four (4) feet below the surface, CONTRACTOR shall promptly, and before the following conditions are disturbed, notify CITY in writing of any:

1. Material that CONTRACTOR believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II or Class III disposal site in accordance with the provisions of existing law;

2. Subsurface or latent physical conditions at the site differing from those indicated in the Project specifications;

3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in the Project or the character provided for in the CONTRACT.

B. Upon receipt of said notification CITY will investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in CONTRACTOR's cost of or the time required for performance of any part of the Project, CITY will issue a change order under the procedures described in the General Conditions.

C. In the event that a dispute arises between CITY and CONTRACTOR whether the conditions materially differ, or involve hazardous waste or cause a decrease or increase in CONTRACTOR's cost of or time required for performance of any part of the Project, CONTRACTOR shall not be excused from any scheduled completion date provided for by the AGREEMENT, but shall proceed with all work to be performed under the AGREEMENT.

CONTRACTOR shall retain any and all rights provided either by AGREEMENT or by law which pertain to the resolution of disputes and protests between the contracting parties.

XVIII. COMPONENT PARTS OF THE CONTRACT
This AGREEMENT entered into consists of the following CONTRACT DOCUMENTS, all of which are component parts of the AGREEMENT as if herein set out in full or attached hereto:

In addition, all Change Orders and Work Directive Changes authorizing additions, deletions, or modifications, and all appendices, bulletins and addenda as prepared prior to the date of opening Bids setting forth any modifications or corrections or interpretations of any of said documents. In the event of any conflict between the provisions thereof, the terms of said documents shall control over each other in the following order:

1. Agreement

2. Change Orders and Work Directive Changes

3. Addenda

4. Notice to Bidders

5. Contract Proposal

6. Special Provisions

7. Technical Provisions

8. Contract Plans

9. City of Pismo Beach Standard Specifications and Drawings

10. Standard Specifications for Public Works Construction, “Greenbook,” 2015 edition, or the latest edition thereof

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11. Standard Plans for Public Works Construction, “Greenbook,” 2015 edition, or the latest edition thereof

12. California State Department of Transportation Standard Specifications, latest edition, when specifically referenced in the plans.

All of the above named CONTRACT DOCUMENTS are intended to be complementary. Work required by one of the above named CONTRACT DOCUMENTS and not by others shall be done as if required by all.

XIX. ENTIRE CONTRACT
This AGREEMENT constitutes the entire contract of the parties. No other agreements or contracts, whether oral or written, pertaining to the work to be performed, exists between the parties. This AGREEMENT can be modified only by an amendment 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.

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: Jorge Garcia
Title: Interim 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
CONTRACTOR:

Brough Construction, Inc.

Signed:

Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
______________________________________
______________________________________
Email address for official communications:
______________________________________
Vendor Representative:

Name/Title: ____________________________

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Vendor Agreement (Rev. 2/2/2018)

CITY OF PISMO BEACH

RECITALS:

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

Palisades and Chumash Parks Playground Project – Construction Management, Inspection and Administration Services
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.

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, 2024. 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-nine thousand two hundred forty-eight dollars ($129,248), unless otherwise first approved in writing by CITY.

Should this AGREEMENT be extended pursuant to Section II, VENDOR’s fee may be 2 of 12
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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.

12.D-16Council Agenda 7-18-2023
Attachment 3
Packet Page 190

3 of 12
Vendor Agreement (Rev. 2/2/2018)
VII. CITY REPRESENTATIVE

VIII. VENDOR REPRESENTATIVE(S)

IX. INDEPENDENT CONTRACTOR

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

XIII. INDEMNIFICATION

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

B. Non-design, construction Professional Services:

12.D-17Council Agenda 7-18-2023
Attachment 3
Packet Page 191

5 of 12
Vendor Agreement (Rev. 2/2/2018)
C. Design Professional Services:

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.

B. Other provisions or requirements:

12.D-18Council Agenda 7-18-2023
Attachment 3
Packet Page 192

7 of 12
Vendor Agreement (Rev. 2/2/2018)
CITY will withhold amounts sufficient to pay premium from VENDOR payments. In the alternative, CITY may terminate this AGREEMENT as provided in paragraph IV.

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
Vendor Agreement (Rev. 2/2/2018)
of any kind that has not been first submitted to CITY and approved of in writing by CITY’s Risk Manager or City Attorney.

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.

12.D-19Council Agenda 7-18-2023
Attachment 3
Packet Page 193

9 of 12
Vendor Agreement (Rev. 2/2/2018)
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.

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.

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

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

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.
10 of 12
Vendor Agreement (Rev. 2/2/2018)
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.

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

12.D-20Council Agenda 7-18-2023
Attachment 3
Packet Page 194

XXVII. EXHIBITS

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

XXVIII. VENDOR’S AUTHORITY TO EXECUTE

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

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.

12 of 12
Vendor Agreement (Rev. 2/2/2018)
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: Jorge Garcia
Title: Interim 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:

CLAD Consulting, 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

12.D-21Council Agenda 7-18-2023
Attachment 3
Packet Page 195

Statement of Understanding & Scope of Work
CLAD understands that the City of Pismo Beach (City) will be removing existing play equipment, installing new play equipment, and conducting related site improvements at Chumash and Palisades Parks. CLAD intends to help the City with their goal of ensuring an exceptional quality of life for all its residents.

We will provide a Construction Manager (CM), L. Alberto Lopez, to coordinate project matters between the contractors, City, and Engineer of Record. Prior to construction, the CM will thoroughly familiarize himself with the project plans and specifications. The CM will then oversee all construction support activities and reporting on behalf of the City. We understand the importance of effective and timely construction in order to stay on track with the project budget and minimize the impact of construction on the surrounding community. We also understand the importance of a timely response to a contractor’s request, and that is why we have multiple people on the team to address and questions, concerns, and inspection in a timely manner. The CM will conduct weekly meetings with all relevant parties as necessary to maintain the project schedule and mitigate any potential obstacles or unforeseen conditions.

CLAD has observed that there will be limited access and tight conditions at Chumash Park, as well as a high-pressure gas main at the project site that will require location and an investigation into its depth. We understand that for any park project, equipment must be placed exactly as planned so that each play structure zone limit does not overlap and cause a hazard. The size of the playground and location of the structures must be precisely correct to ensure safety. Also, the site must be kept secure and safe at all times to avoid residents – especially children – from wandering into the work site and getting hurt.

Having ample experience with construction management projects within Pismo Beach and other local agencies, our CM will adhere to quality control standards, permit compliance, reporting protocols, and other applicable procedures set in place by the City in addition to State and Federal standards. All contractor documentation, including payroll, RFIs, payment applications, and closeout documents will be revised by the CM in accordance with the project schedule and construction progress. CLAD’s CM will act as a liaison between the City and the contractors, engineer, and any other government agencies involved with the project.

CLAD will provide daily onsite inspection services for the construction of improvements to both Chumash Park and Palisades Park. The CM will ensure that the project adheres to the engineer’s plans and specifications, as well as all safety and permitting requirements. We will maintain communication with residents and businesses impacted by construction as needed throughout the life of the project and relay all pertinent information to the City. The CM will review all submittals and required documentation throughout the life of the project. 14CM for Palisades & Chumash Parks
&YIJCJU"Statement of Understanding & Scope of Work
The geotechnical engineer will work under the direction of the CLAD CM. They will perform compaction testing at both parks, as well as subgrade inspection for the retaining wall at Palisades Park.

We understand the importance of the health of the trees for this project. CLAD will bring in a specialist to examine the six (6) loquats prior to their installation, and again at the end of the maintenance period.

Our team will utilize Procore as provided by the contractor to document, process, and submit all documentation received from the contractors, including submittals, RFIs, schedule changes, PCOs and COs, incident reports, payment applications, and close-out documents.

By the end of the project, CLAD will submit a master project file to the City in compliance with its recordkeeping standards.

City Responsibilities
Per the RFP document, CLAD expects the City to: designate a City staff member as the main point of contact for this project; act as a liaison with City Council and any other appropriate government body involved in the project; conduct plan checking and approvals in a timely manner so as not to impede the construction schedule; and handle all public construction progress updates.
15CM for Palisades & Chumash Parks

12.D-22Council Agenda 7-18-2023
Attachment 3
Packet Page 196

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Time and Materials, Not to Exceed Fee: $129,248
We thank you again for the opportunity to propose on this project and look forward to working with you.

Sincerely,
CLAD Consulting, Inc.

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805-440-0885
&YIJCJU#

12.D-23Council Agenda 7-18-2023
Attachment 3
Packet Page 197

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12.D-24Council Agenda 7-18-2023
Attachment 3
Packet Page 198

PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.E

SUBJECT/TITLE:

DIRECTION ON SHORT-TERM RENTAL ORDINANCE UPDATE

RECOMMENDATION:

Provide direction to staff regarding desired modifications to the City’s short-term rental regulations.

BACKGROUND:

On May 2, 2023, the City Council considered an Ordinance amending Title 5 of the Pismo Beach Municipal Code relating to administrative regulations of short-term rentals (STRs) (staff report provided as Attachment 1). Included in the draft Ordinance were new and clarified requirements for property ownership for two years prior to being eligible for an STR license, annual license expirations and renewal requirements, Homeowner Association authorization requirements, codification of Good Neighbor Policy regulations, and provisions that addressed corporate managed/operated fractional ownership units.

At that time, the City Council did not introduce the draft Ordinance and instead directed staff to conduct further research regarding four aspects of the STR regulations (minutes provided as Attachment 2). Following that direction, the City Council on June 6, 2023, adopted an Urgency Ordinance extending the existing moratorium on the issuance of new STR licenses through June 20, 2024, to allow time for the development of additional regulations of STRs.

The items below are structured to identify the item directed by Council to be researched, discuss options staff can pursue to address Council direction, and evaluate the potential for the regulation to obtain certification by the Coastal Commission. It is important to note that due to the need for Council direction on each of these items, staff has not had discussions with Coastal Commission staff regarding the potential regulations but is basing the potential for certification on previous conversations and review of other coastal cities’ regulations to better understand Coastal Commission trends. It is also important to note that additional discussion by Council on topics relating to STRs, such as enforcement, is welcomed and is not limited to the items included below.

Numerical Cap/Proximity-Based Limitation
The first item that the Council directed staff to research is a limit to the number of STRs allowed to be licensed within the city. During the May 2, 2023 meeting, the Council discussed a desire for either a flat numerical cap on STR licenses, a cap by street, a cap by neighborhood, or a proximity-based limitation. Pismo Beach currently has 28 licensed STRs throughout the city, with the majority concentrated in Shell Beach. However, staff has received several inquiries regarding the issuance of new STR licenses since the initial moratorium was implemented, which indicates that there remains interest by property owners desiring to obtain an STR license. Should the Council desire a numerical cap, staff recommends pursuing either a flat numerical cap or a proximity-based limitation.

Street and neighborhood-based limitations are not recommended as staff anticipates

12.E-1Council Agenda 7-18-2023
Packet Page 199

street-based limitations to be viewed as arbitrary by the Coastal Commission, while the definition of “neighborhood” may vary by person. However, should the Council desire either a street-based or neighborhood-based limitation, staff will conduct additional research and analysis.

A numerical cap on STR licenses would help to address the overall impact of STRs on the city but may not address the concentration of STRs in a particular area of town.

Additionally, should the Council desire a numerical cap, staff would recommend it be set as a percentage of the City’s overall housing inventory to be a more defensible regulation for certification. The 6th Cycle Housing Element (2020) identifies that Pismo Beach has approximately 5,800 housing units. Accordingly, staff would recommend a numerical cap of either 1% or 0.5% of the housing stock, which would limit the total number of STR licenses to approximately 60 or 30 STR licenses, respectively. Communication of this numerical cap to the public would be accomplished via the City’s STR webpage, where licensed STRs are listed. Under this cap, staff would maintain an interest list for new licenses should they become available, which is a strategy employed by other cities with numerical caps.

Alternatively, the Council could consider a proximity-based limitation that would prohibit new STR licenses being issued within an identified distance of an existing licensed STR.

These limitations would help to ensure a concentration of STRs does not occur and could be set at a Council-defined distance to ensure different neighborhoods are less impacted by the adverse effects of STRs. If desired, staff would recommend either a 300- or 500- foot limitation. It should be noted that the larger the radius, the higher the impact on areas such as the Shell Beach Village, as streets and lots are generally smaller, and a greater number of streets are included at 500 feet. Additionally, several STRs are currently located within 300 feet of each other, while even more are located within 500 feet of another STR. A proximity-based limitation would not impact currently licensed STRs because there is no annual license renewal requirement under the City’s current regulations. However, should the City Council elect to impose an annual license renewal and a proximity-based limitation, currently permitted STRs would need to comply with any proximity-based limitation upon license renewal, which could result in some current STRs not being eligible for renewal based on proximity to another STR.

Either a numerical cap or a proximity-based limitation would require qualitative data to support the certification by the Coastal Commission. Based on the current housing crisis, staff anticipates a numerical cap established as a percent of housing units to be agreeable and would additionally need to be supported by data on existing accommodations within the city, including hotels, RV spaces, and tent camping facilities. Proximity-based limitations could be supported because of impacts to coastal resources, including parking, due to increasing legislation that reduces onsite parking requirements for certain housing projects, although this may not gain as much support from Coastal staff.

Adjacent Property Notification
Another item the City Council directed staff to research is the notification of adjacent properties prior to the approval of an STR license. To date, the Coastal Commission has

12.E-2Council Agenda 7-18-2023
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been more supportive of regulations that make STR licensing processes ministerial rather than discretionary. However, in response to this direction by the City Council, staff would propose including modifications to the current STR regulations that would mirror the notification requirements for administrative land use permits. Pismo Beach Municipal Code Subsection 17.124.090.C. outlines the notice procedures for non-appealable developments when no public hearing is required, and requires a notice of pending development approval to be mailed to all property owners and residents within 300 feet of the development. This allows the public to discuss the project with City staff and raise concerns related to the proposed development that might not have been considered.

Adapting these noticing requirements to STRs would allow neighbors to be aware of an impending STR license approval and provide an opportunity for the neighborhood to provide testimony on factors in the approval of STR licenses, including whether or not the STR is a primary residence.

While Coastal Commission staff have previously not supported advanced notification of STR license approval due to the potential to create a de facto prohibition based on community feedback, they have been supportive of the City’s attempts to close loopholes in the STR regulations. Successful Coastal Commission certification of a notification regulation would likely hinge on the regulation being utilized to ensure the ministerial requirements of the STR license are accurate prior to approval, rather than a means of precluding STRs without an actual prohibition.

Prohibition Outside of Coastal Zone
One idea for increased regulation of STRs in the City is the prohibition of these rentals throughout the City, which the Council directed staff to research. In the past, an STR prohibition in the Coastal Zone was viewed as not being possible to receive Coastal Commission certification, as STRs are seen as a type of overnight accommodation, sometimes even an affordable accommodation, for visitors to the coast. Accordingly, the Council expressed interest in a prohibition outside of the Coastal Zone, with the potential to “grandfather” existing licenses. During the May 2, 2023 Council meeting, the issue of grandfathering was raised due to the proposal for an annual renewal requirement of the STR licenses. A requirement for STR licenses to be renewed annually would preclude the ability to grandfather existing licenses as each year the existing license would expire, and a new license would be prohibited from being issued. Accordingly, should the Council desire to prohibit STRs outside the Coastal Zone, staff would need direction as to whether the Council desires to grandfather existing licenses, which would very likely necessitate the removal of an annual license renewal requirement from proposed regulations.

However, should the Council prefer an annual license renewal and a prohibition outside the Coastal Zone, staff would work to alert existing licensed STRs as to the future expiration of the license.

Over the last year, several individuals have provided comment that the City should prohibit STRs within the Coastal Zone or prohibit “non-hosted” STRs within the Coastal Zone, with the latter only allowing STR operation while the owner is on site. Two cities, Santa Monica and Malibu, have frequently been cited as having proposed similar regulations. Staff has reviewed the history of these two cities and notes that Santa

12.E-3Council Agenda 7-18-2023
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Monica’s requirement of an onsite host within the rented dwelling unit is in a non-land use section of their Municipal Code. Additionally, Coastal staff notes that they have not received any coastal development permit application nor any LCP amendment for regulating STRs in Santa Monica, and therefore are evaluating potential enforcement actions. Therefore, those regulations should not be considered an example of regulations that the Coastal Commission would allow. The City of Malibu attempted to utilize the Santa Monica example as a component of its strict regulation of STRs; however, Malibu’s LCP amendment was denied in August 2022 due in part to the lack of overnight accommodations in Malibu.

A concern staff previously expressed regarding the prohibition of STRs outside the Coastal Zone was that this could lead to confusion by property owners because of the separate coastal and non-coastal zoning codes. This is an issue frequently encountered by staff and property owners with other regulations. To address the potential for confusion, the Council could consider directing staff to proceed with prohibiting STRs throughout the city. Considering the Malibu denial, staff anticipates pursuing a city-wide prohibition would require a discussion with Coastal Commission staff about the City’s existing overnight accommodations, including over 2,100 hotel rooms, nearly 600 RV spaces, and almost 100 camping spaces (Attachment 3), as well as the allowance of Vacation Rentals in the downtown area and that therefore STRs are not necessary to provide overnight accommodation to visitors. There is a risk that a prohibition may not be certified by the Coastal Commission, as a City prohibition was previously denied by the Coastal Commission in 2011. However, it is an option for the Council to consider.

Coordination with Airbnb
The final item the City Council directed was for staff to investigate an arrangement with Airbnb and other similar platforms for the sharing of booking data in furtherance of ordinance enforcement. Since the May 2, 2023 Council meeting, staff has corresponded with staff from the City of San Luis Obispo, which has an existing agreement with Airbnb.

Through that correspondence, staff learned that Airbnb does not share booking data of individual listings; rather, Airbnb simply remits transient occupancy tax (TOT) in an anonymized manner. Additionally, City staff previously attempted to establish an agreement with Airbnb, but the attempt was abandoned due to the significant staff time necessary to establish the agreement, the limited data received, the remittance of TOT quarterly rather than in accordance with the City’s monthly requirements, and because Airbnb is one of dozens of online platforms hosting rental listings. At this time, staff does not recommend pursuit of a formal arrangement with Airbnb.

However, staff has been in discussions with Airbnb staff regarding opportunities to address the enforcement of the City’s regulations. These discussions have revealed that Airbnb is willing to work with the City on tools to enforce the City’s rules, including a Notice and Takedown process where staff can flag noncompliant listings for removal, Host Communications where the City’s rules are communicated to operators by Airbnb, and enabling a permit field that requires a license number for listings requiring a license.

Depending on Council interest, staff will continue to work with Airbnb regarding these and other enforcement tools.

12.E-4Council Agenda 7-18-2023
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While the recent progress with Airbnb is encouraging, staff believes there are still limitations to the data and information that will be provided by this and other entities, as well as limitations as to what local governments can do while still providing due process.

Additionally, Airbnb continues to be a single entity and while it appears to be the most popular, STR operators do utilize other services to advertise and manage their rentals.

Additional research will be necessary to determine arrangements cities have with other online platforms to help enforce local regulations should the City Council desire this effort.

Conclusion and Recommendation
The regulation of STRs remains an important item for the City. Staff recommends the City Council provide direction on additional regulations desired to address STRs in Pismo Beach.

FISCAL IMPACT:

There is no immediate fiscal impact associated with Council providing direction to staff on this item. However, depending on the direction received, impacts to TOT received from STRs could be impacted.

ALTERNATIVES:

1. Direct staff to make no changes to the STR regulations.

2. Provide alternate direction to staff.

ATTACHMENTS:

1. May 2, 2023 Staff Report

2. May 2, 2023 Minutes

3. Maps of Overnight Accommodations
Meeting Date: July 18, 2023 Submitted by:

Matthew Downing, Community Development Director
Interim City Manager Approval:

12.E-5Council Agenda 7-18-2023
Packet Page 203

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

INTRODUCTION (FIRST READING) OF AN ORDINANCE MODIFYING CHAPTER 5.22 OF TITLE 5 OF THE PISMO BEACH MUNICIPAL CODE REGARDING SHORT-TERM

RENTALS
RECOMMENDATION:

Introduce an Ordinance amending Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code relating to administrative regulations of short-term rentals and homestays.

BACKGROUND:

On June 21, 2022, the City Council adopted Urgency Ordinance O-2022-005 imposing a moratorium on the issuance of short-term rental (STR) licenses to allow time for the development of regulations to address neighborhood complaints resulting from the operation of STRs in Pismo Beach. On August 2, 2022, the City Council adopted Urgency Ordinance O-2022-007, extending the moratorium until June 20, 2023 in accordance with Government Code provisions relating to urgency land use ordinances. The City’s existing STR regulations were industry leading for coastal cities at the time of adoption in 2018.

Since that time, the STR environment has evolved, consistent neighborhood complaints have been voiced, and loopholes in the regulations have been identified that necessitate revisions to the regulations. The proposed Ordinance (Attachment 1), which addresses the administrative portion of the STR regulations contained in Municipal Code Title 5, is a component of addressing the concerns expressed by the City Council and the Pismo Beach community.

In addition, it is anticipated that the City Council will consider revisions to Municipal Code Title 17 (1983 and 1998 Zoning Codes) at its May 16, 2023 meeting, following the Planning Commission’s review on April 25, 2023, at which time the Commission recommended adoption of the ordinances as presented.

Consistent with the STR ordinance development process previously employed, the City Manager formed a task force to review STR impacts and provide recommendations and feedback for revisions to the regulations. The Advisory Task Force was chaired by the City Manager and Community Development Director and comprised an array of stakeholders, including residents operating permitted STRs, residents concerned with the current regulations and negative impacts of STRs, representatives from the hotel industry, and two Council Members. The Advisory Task Force met four times, and while individual members of the task force had some varying perspectives, the task force was generally supportive of the recommended revisions to the STR regulations.

Ownership Requirements
One of the hallmarks of the City’s STR regulations is the requirement that the structure be the primary residence of the operator. This means a dwelling where the owner lives more than fifty percent of the year. The intent of this regulation was to preclude investment Council Agenda 5-2-2023 12.A-1
May 2, 2023 Staff Report
Attachment 1

12.E-6Council Agenda 7-18-2023
Packet Page 204

groups and speculators from purchasing residential properties for the sole purpose of operating as an STR. Since the STR regulations were implemented, the City has received input that the current process makes it too easy for an individual to acquire a property and immediately be eligible to operate an STR without becoming part of the neighborhood. In response to this concern, the primary residency requirements are proposed to be modified to require the property be owned by the applicant for a minimum of two years prior to license application and issuance. This will allow the new owners the opportunity to establish themselves in the neighborhood prior to application for an STR license, as well as keeping those attempting to skirt the primary residency requirements from so doing. Additionally, the definition of “primary residence” is proposed to be modified to clarify that the measurement of this time is on a rolling 365-day basis. This is intended to preclude operators from renting the STR, for example, from July to December of one year and again from January to June the following year, thereby further helping to ensure the home is the primary residence of the operator.

License Expiration
One of the most impactful changes to the STR regulations is the implementation of an annual licensing period. Currently, an STR license is valid indefinitely once it is issued.

Under the proposed regulations, STR licenses would expire on September 30 of each year, including all currently licensed STRs. This expiration timing is consistent with the expiration of City business licenses and it is anticipated that renewal information would be mailed to operators on a schedule consistent with business license renewals, to aid in ease of administration. Should the Council adopt the proposed revised regulations, staff proposes a robust outreach effort to current license holders on a monthly basis, both in email and standard mail, to alert current license holders that their STR license will expire consistent with the new regulations. Additionally, should the Council adopt the revised regulations, staff will return to the Council at the next appropriate juncture to establish a renewal fee that covers staff time necessary to renew the licenses.

Probationary Inspection
Another proposed addition to the STR regulations is the requirement for annual rental inspections for the first three annual licensing terms. During this “probationary inspection” period, staff would schedule time with STR operators to inspect the site, ensure life safety measures are maintained, and confirm that the STR is being operated in a manner consistent with the regulations. Additionally, as recommended by the STR Advisory Task Force, the proposed regulations include provisions that licensed STRs receiving one or more confirmed violations within the previous twelve months may receive additional annual inspections for the twelve-month period following each confirmed violation. The intent of this regulation is to ensure that STRs continue to be operated in a manner that minimizes impacts on the surrounding neighborhood.

Similar to fees necessary for annual renewal of STR licenses, should the Council adopt these revised regulations, staff will return to the Council to establish a renewal fee that covers staff time necessary to perform these inspections.

Council Agenda 5-2-2023 12.A-2
May 2, 2023 Staff Report
Attachment 1

12.E-7Council Agenda 7-18-2023
Packet Page 205

Homeowner Association Authorization
Comments have been received from Homeowner Associations (HOAs) regarding the subject of approval of STR licenses in areas where the HOA has taken steps to further regulate these uses through their Covenants, Conditions, and Restrictions (CC&Rs). The City does not enforce CC&Rs; however, the City does cooperate with HOAs on matters such as architectural review prior to building permit application. Accordingly, the STR regulations are proposed to include language requiring HOA authorization prior to application submittal to the City for properties within active HOAs.

Good Neighbor Policy Regulations
When the City Council adopted the existing STR regulations, a list of “standards” for STR operators to follow was developed to further minimize the impact of STRs on residential neighborhoods (Attachment 2). However, as these “standards” are not codified into law, they represent guidelines rather than rules. As part of the updated regulations, two of these items are proposed to be codified. The first requires overnight STR occupants to park in the on-site parking spaces designated through the licensing process. This would further address neighborhood concerns of impacts to street parking because of STR operation.

The second item to be included in the revised STR regulations is the requirement for STRs to place their trash bins out for collection no sooner than 5:00 p.m. the day before collection and brought in no later than 8:00 p.m. on collection day. It is important to note that this requirement will not apply to all residences in the city. Applying this requirement to STRs will help keep STRs from becoming unsightly with trash being left in public view for extended periods, and will help protect the ocean and other waterways from trash dispersed by wind or animal extraction.

Corporate Managed/Operated Fractional Ownership
Finally, a newer phenomenon in the short-term rental landscape deals with corporately managed and operated fractional ownership units. These uses operate like timeshares but are being implemented in single-family residences rather than higher-density or resort-oriented areas. In keeping with the intent of the City’s existing regulations to protect residential neighborhoods, the STR regulations are proposed to be modified to include the existing definition of “Vacation Rental” and updated to include these corporate managed/operated fractional ownership units in such a way that this type of ownership would be prohibited under the City’s STR regulations. This is important, as vacation rentals are prohibited in the residential districts and would not be permitted. However, this would not preclude other fractional ownership situations, such as family members co- owning property, from occurring.

Regulations Not Proposed
During development of the proposed regulations, several regulations were discussed that staff did not recommend for inclusion. The first is the requirement for notice of pending STR licenses to be provided to neighbors for a comment period prior to action by the City.

The reason for not including this provision is due to the Coastal Commission previously Council Agenda 5-2-2023 12.A-3
May 2, 2023 Staff Report
Attachment 1

12.E-8Council Agenda 7-18-2023
Packet Page 206

viewing this type of action as a regulatory hurdle to the establishment of accommodations in the Coastal Zone.

Another regulation considered but not proposed for implementation is a numerical cap on the total number of STR licenses issued within the city. Larger cities, such as San Diego, have implemented numerical caps on STRs within their jurisdictions based on documented impacts to housing supply. The City currently has 28 licensed STRs, which is less than 1% of the total housing stock and does not appear to rise to the level of needing a cap. If this number drastically changes in the future, staff will return to request direction on potentially updating the regulations to include a numerical cap.

The last regulation considered but not recommended is a prohibition on STRs outside of the Coastal Zone. This was a point of discussion among the STR Advisory Task Force, and it was determined that it would preclude four existing STR licenses from being renewed. For this reason, the Advisory Task Force and staff did not recommend that prohibition be carried forward.

Environmental Review
In accordance with the California Environmental Quality Act (CEQA), it has been determined that the project is exempt pursuant to Section 15060(b)(3) of the CEQA Guidelines for projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Public Notification
A public notice regarding the proposed ordinance was posted at City Hall, on the City’s website, and published in the New Times on April 20, 2023. Additionally, the public notice was sent to all licensed STR operators on April 25, 2023. The meeting agenda was posted at City Hall and on the City’s website in accordance with Government Code section 54954.2. As of the writing of this report, no comments have been received.

Conclusion and Recommendation
The short-term rental environment has evolved since the City implemented regulations in 2018. Accordingly, the City Council has directed staff to revise the regulations to address neighborhood concerns. For that reason, staff recommends the City Council introduce an ordinance (Attachment 1) modifying Chapter 5.22 of Title 5 of the Pismo Beach Municipal Code regarding short-term rentals. This regular ordinance, if introduced at this juncture, will be returned for second reading at the next available meeting and would become effective 30 days thereafter.

FISCAL IMPACT:

The fiscal impact of approving the ordinance could result in the need to establish additional STR license renewal fees to cover City resources used to support this program.

As stated above, should the City Council adopt the revised regulations, staff will return at a future date to set appropriate fees for STR license renewals and probationary inspections to cover staff time necessary to perform these services.

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ALTERNATIVES:

1. Modify and introduce the ordinance; or

2. Provide alternative direction to staff.

ATTACHMENTS:

1. Ordinance

2. Good Neighbor Policy
Submitted by: Meeting Date: May 2, 2023
Matthew Downing, Community Development Director
City Manager Approval:

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ORDINANCE NO. O-2023-XXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AMENDING CHAPTER 5.22 OF TITLE 5 OF THE PISMO BEACH

MUNICIPAL CODE RELATING TO ADMINISTRATIVE REGULATIONS OF SHORT-

TERM RENTALS AND HOMESTAYS
WHEREAS, during the past two decades, Pismo Beach has experienced a significant increase in the popularity of single-family homes being used as short-term rentals (STRs) for periods of less than 30 days;
WHEREAS, in 2018 the City adopted Short-Term Rental ordinances to establish a permitting process and standards in order to minimize the negative impacts resulting from a proliferation of STRs; and
WHEREAS, these impacts include, but are not limited to noise, parking, trash, loss of neighborhood character, reduction in long-term housing stock, and loss of Transient Occupancy Taxes (TOT); and
WHEREAS, the purpose of the amendments established hereby is to add additional regulations to the existing ordinance in order to enhance preservation of neighborhood integrity, encourage maintenance of the City’s long-term housing stock, further minimize impacts to coastal resources, continue to provide for the reasonable use of property, and ensure that STRs are consistent with the General Plan, Zoning Code, and other applicable sections of the Municipal Code; and
WHEREAS, additional regulations relating to the administration of short-term rental and homestay licenses are established in Title 17 of the Municipal Code.

NOW, THEREFORE, the City Council of the City of Pismo Beach does ordain as follows:

SECTION 1.

The foregoing recitals are adopted as findings of fact in support of this ordinance.

SECTION 2.

Chapter 5.22 of the Pismo Beach Municipal Code is revised to read as follows:

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Article I. Vacation Rental Regulation

5.22.010 Definitions.

For the purposes of this chapter, certain words and phrases shall be construed as set forth in this section, unless it is apparent from the context that a different meaning is intended.
"Transient" shall have the same meaning as set forth in Section 3.20.020 of this code.
“Vacation rental” shall mean any structure, as defined in the building code adopted in Title 15 of this code, which exists, is constructed, or which is maintained or used upon any premises for the purpose of transient lodging which consists of four or fewer separate transient rental units. This includes corporate managed/operated fractional ownership units.

5.22.020 Application process.

A. Persons wishing to use a structure as a vacation rental shall do all of the following:

1. Complete a vacation rental certificate request form, which form shall be provided by the Community Development Director or designee.

2. Submit the following information in support of a vacation rental certificate:
a. The name, address, and telephone number of the property owner and a contact person/entity that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the vacation rental. The contact person/entity shall reside or maintain a physical business address within twenty-five (25) miles of the vacation rental. A post office box or private mail drop address shall not be deemed to comply with the
requirement of maintaining a residence or physical business address. An owner of a vacation rental who resides within a twenty-five (25) mile radius of the vacation rental unit may designate themselves as the contact person. Any change in the contact person's address or telephone number shall be promptly furnished to the City.
b. A site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and parking
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locations and dimensions, and photographs showing the
interior of each bedroom and showing each parking location. c. A copy of the proposed notices required by Section

5.22.040.E. of this code to be posted inside the vacation rental unit.
d. Proof of written notification to all property owners and residents within one hundred (100) feet of any point on the property containing the vacation rental, describing the proposed vacation rental use, including the number of
separate vacation rental units, the number of on-site parking spaces and the telephone number of the contact person/entity set forth in subsection (A)(2)(a).
e. Acknowledgment that the owner and contact person/entity, if any, have read this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.
f. Such other information as the Community Development
Director or designee deems reasonably necessary to
administer this chapter.

3. Submit to an inspection of the vacation rental by City staff if staff deems an inspection to be required prior to issuance of certificate.

4. Obtain a valid business license for a vacation rental unit.

B. Once the vacation rental is approved by the Community Development Director or designee and a valid business license is on file for the vacation rental, the tax administrator will issue a transient occupancy registration certificate for the vacation rental pursuant to Section 3.20.060 of this code.

C. Vacation rental certificates shall be personal property of the vacation rental unit operator and shall not run with the land. Upon sale of a property operated as a vacation rental, the vacation rental certificate shall expire as of the date of sale, and the new owner shall comply with the provisions of this chapter prior to operation of the vacation rental unit.

5.22.030 Vacation rental standards.

A. Except as otherwise permitted by the Community Development Director or designee upon presentation of extenuating circumstances, each vacation rental shall have a minimum of two (2) parking spaces available onsite at all times.

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B. Each vacation rental shall provide for garbage removal as required by Chapter 8.12 of this code.

5.22.040 On-going requirements for vacation rental operation.

A. The operator of the vacation rental shall, at all times while the property is being used as a vacation rental, maintain a contact person/entity that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the vacation rental. The contact person shall respond, either in person, or by return telephone call, within three (3) hours of a complaint, and the contact person shall provide the complaining party a proposed resolution to the complaint.

B. The operator or contact person/entity shall use best efforts to ensure that the occupants and/or guests of the vacation rental do not create unlawful noise or disturbances, engage in disorderly conduct, or violate provisions of this code or any state law pertaining to noise or disorderly conduct, by notifying the occupants of the rules regarding vacation rentals and responding in person when notified that occupants are violating laws regarding their occupancy. Notwithstanding the retention of a separate contact person/entity, the owner of the vacation rental is responsible for compliance with the provisions of this chapter and the failure of an agent, representative, or contact person to comply with this chapter shall be deemed noncompliance by the owner.

C. The operator of the vacation rental shall annually, not later than December 31 of each year, notify in writing all property owners and residents within one hundred (100) feet of any point on the property containing the vacation rental, that the property will be used as a vacation rental.

D. The operator of the vacation rental shall annually, not later than December 31 of each year, provide in writing to all property owners and residents within one hundred (100) feet of any point on the property containing the vacation rental the name, address and telephone number of the contact person required in subsection (A) of this section.

E. A written notice shall be conspicuously posted inside each vacation rental unit setting forth the name, address and telephone number of the contact person required in subsection (A) of this section. The notice shall also set forth the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and the day(s) established for garbage collection. The notice shall also provide the non-emergency telephone number of the City Police Department.

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F. Any advertising of the vacation rental shall include the vacation rental permit number provided by the City.

5.22.050 Violations and enforcement.

A. It shall be unlawful and a misdemeanor for any person to construct for vacation rental use, to convert to vacation rental use, to offer to another for vacation rental use, to advertise for vacation rental use, or to occupy as a vacation rental use any portion of any structure or facility without full compliance with this chapter.

B. In addition to, or in lieu of criminal sanctions set forth in subsection (A) of this section, administrative penalties, including a notice of violation, shall be imposed, and permits shall be revoked, in the manner provided in this subsection (B).

1. The City Building Official or designee shall conduct an investigation whenever there is reason to believe that an owner has failed to comply with the provisions of this chapter. Should the investigation reveal that a violation occurred, the City Building Official or designee shall issue written notice of the violation and intention to impose a penalty and/or revoke the permit. The written notice shall be served on the owner and operator or agent and shall specify the facts which, in the opinion of the City Building Official, constitute grounds for imposition of the penalties and/or revocation, and specify that the penalties will be imposed and/or that the permit will be revoked within fifteen (15) days from the date the notice is given unless the owner and/or operator files with the City Clerk the amount of any fine imposed, and a request for a hearing. The penalties for violations specified in subsection (B) of this section shall be as follows:

a. For the first violation within any twelve (12) month period, the penalty shall be a fine not to exceed one hundred dollars ($100), and/or suspension of the permit for a period not to exceed three (3) months.

b. For a second violation within any twelve (12) month period, the penalty shall be a fine not to exceed two hundred fifty dollars ($250), and/or suspension of the permit for a period not to exceed six (6) months.

c. For a third violation within any twelve (12) month period, the penalty shall be a fine not to exceed five hundred dollars ($500), and/or suspension of the permit for a period not to exceed one (1) year.

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2. If the owner requests a hearing within the time specified in subsection (1) of this section, the City Clerk shall serve written notice on the owner and operator, by mail, of the date, time and place for the hearing which shall be scheduled not less than fifteen (15) days, nor more than forty-five (45) days after receipt of request for a hearing. The Community Development Director may preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the Community Development Director. The Community Development Director shall impose the penalties or revoke the permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or revocation is consistent with the provisions of this chapter. The Community Development Director shall render a decision within thirty (30) days of the hearing and the decision shall be final.

C. The Community Development Director or designee shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions of the permit or the provisions of this chapter.

Article II. Short-Term Rental Regulation

5.22.100 Definitions.

For the purposes of this chapter, certain terms are hereby defined. The words "shall" and "will" are mandatory; the word "may" is discretionary.

A. "Bedroom" shall mean a room that is primarily used for sleeping. A bedroom shall be no less than seventy (70) square feet in size, with a minimum horizontal dimension of no less than seven (7) feet on any side. A bedroom offered for rent within a Short-Term Rental or Homestay shall meet all applicable California Building Code life safety requirements.

B. "Homestay" shall mean an owner-occupied, detached single-family residence where bedrooms are rented for compensation for less than thirty (30) consecutive days.

C. "Primary residence" shall mean the dwelling owned and occupied as the property owner's principal place of residence, where the owner lives more than fifty percent (50%) of the year, defined herein as one hundred eighty- three (183) days or more per year on a rolling 365-day basis. For purposes of Short-Term Rental or Homestay licensing, a person can only have one Primary Residence at any time.

D. "Proof of Primary Residence." In addition to the requirement that the licensed property be the property owner's Primary Residence as defined Attachment 1
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herein, the City shall also review documentation deemed acceptable by the City showing the dwelling is the owner's principal residence.

E. “Responsible party” shall mean a person, over the age of eighteen (18), who shall be legally responsible for compliance of all renters and visitors of the STR or Homestay with all applicable provisions of the Pismo Beach Municipal Code. The Responsible Party shall sign the Good Neighbor Policy and is designated as the point of contact for the STR or Homestay.

The Responsible Party shall assure the maintenance of the licensed property in compliance with this and other applicable regulations, and shall be responsible for the conduct and acts of said renters and visitors to the extent provided herein. The Responsible Party's contact information shall be provided to all short-term renters and neighbors within three hundred (300) feet of the STR or Homestay in the manner prescribed in Chapter

5.22. F. "Short-term rental" or "STR" shall mean the rental of a detached single- family residence or accessory dwelling unit for less than thirty (30) consecutive days where the primary residence is not being concurrently occupied by the owner.

G. "Long-term rental" shall mean a rental for thirty (30) consecutive days or more. Any rental agreement that allows a sublet or sublease to multiple parties for any terms less than thirty (30) days, or early cancellation with or without penalty that allows multiple rentals within a thirty (30) day period, shall be considered a Short-Term Rental and be subject to the terms of a Short-Term Rental license as provided in this code.

5.22.110 License required.

A. No owner or owners of a Short-Term Rental or Homestay shall rent, offer to rent, or advertise for rent the Short-Term Rental or Homestay to another person without a license approved and issued in the manner provided for by this chapter.

B. Applicants must show proof of property ownership for two (2) consecutive years from the date of purchase prior to license application and issuance.

5.22.120 Application process.

A. A property owner wishing to use a detached single-family residence as a Short-Term Rental or Homestay shall do all of the following. Applications will not be deemed complete nor processed until all required information is provided and fees are paid:

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1. Complete a Short-Term Rental application. Submit the following information at the time of application:

a. The name, address, and telephone number of the property owner, or authorized Responsible Party, that can be reached via telephone twenty-four (24) hours a day, seven (7) days a week, to respond to complaints regarding the use of the STR or Homestay. Any change in the contact information for either the property owner or Responsible Party shall be promptly furnished to the City.

b. A site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and parking
locations and dimensions, and photographs showing the
interior of each bedroom and showing each parking location.

c. Notification materials containing information that allows the City to produce mailing labels, including both Owner and Occupant lists. The information should be provided in
Microsoft Excel or equivalent editable spreadsheet format.

The information should include the following fields for all properties within a five-hundred (500) foot radius of the site:

Assessor Parcel Number, property address, first and last name of owner, owner mailing address, owner city, owner state, and owner zip code. A receipt or letter from the title company or person who completes notification labels,
certifying that the labels are correct, to the best ability of the preparer, must also be included.

d. Such other information as the Director of Community
Development or designee deems reasonably necessary to
administer this chapter.

e. Acknowledgment that the owner and contact person/entity, if any, have read all this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.

f. Submit an affidavit signed under penalty of perjury by property owner that the home is their primary residence. Failure to sign the affidavit shall be grounds for denial of an STR or
Homestay license.

g. For properties that are part of a Homeowner Association (HOA), written authorization from HOA Board of Directors to Attachment 1
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use the property as a Short-Term Rental shall be required prior to action on the license by the City.

2. Submit to an inspection of the rental by City staff prior to issuance of the certificate. Prior to issuance of an STR or Homestay license, the City shall conduct an inspection of subject property to confirm bedroom count, on-site parking, and applicable safety standards. If complaints are received about STR or Homestay operations, the City shall have the right to re-inspect the property. In the event such re- inspection requires access to the interior of a dwelling unit, the property owner shall provide the City access to the premises upon forty-eight (48) hours’ advance notice.

3. Review and initial the Good Neighbor Policy.

4. Pay the Short-Term Rental license application fee, as established by resolution of the City Council.

5. Obtain a valid business license for a short-term rental property.

B. Once the Short-Term Rental license is issued by the Community Development Department and a valid business license is on file for the Short-Term Rental or Homestay, the tax administrator will issue a valid transient occupancy registration certificate for the Short-Term Rental or Homestay pursuant to Section 3.20.060 of this code.

C. Short-term rental and Homestay licenses shall be personal property of the property owner and shall not run with the land. Upon sale of a property operated as a Short-Term Rental or Homestay, the certificate shall be deemed void without further action by the City.

5.22.130 Short-term rental standards.

A. The STR or Homestay shall be operated consistent with the standards and regulations contained within the zoning codes of the Pismo Beach municipal code, including but not limited to Chapters 17.09 and 17.113.

B. Each STR or Homestay shall provide for garbage removal as required by Chapter 8.12 of this code.

C. A written notice shall be conspicuously posted inside each STR or Homestay setting forth the name, address, and telephone number of the contact person required in Section 5.22.120(A)(1)(a). The notice shall also set forth the maximum number of occupants permitted to stay overnight in the unit, the maximum number of vehicles allowed to be parked on-site, and Attachment 1
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the day(s) established for garbage collection. The notice shall also provide the non-emergency telephone number of the City Police Department.

D. Any advertising of the STR or Homestay shall include the STR or Homestay license number provided by the City.

5.22.140 Annual license requirements.

A. Short-Term Rental or Homestay licenses are valid from the date of issuance through September 30 of each year. Any licenses in effect as of the effective date of the ordinance establishing this section shall be deemed to be extended to September 30 in the same year or the year following the effective date of the ordinance, whichever is sooner, and thereafter such licenses shall be subject to the annual renewal requirements of this section.

Short-Term Rental or Homestay operators are responsible for obtaining renewal of the license each year.

B. An operator wishing to renew their Short-Term Rental or Homestay license for the annual period shall do all of the following. Applications will not be deemed complete nor processed until all required information is provided and fees are paid:

1. Complete a Short-Term Rental application. Submit the following information at the time of application:

b. Acknowledgment that the owner and contact person/entity, if any, have read all this chapter, and acknowledgment of their responsibility to assist in enforcement for payment of transient occupancy taxes.

c. An affidavit signed under penalty of perjury by property owner that the home is their primary residence. Failure to sign the affidavit shall be grounds for denial of an STR or Homestay license.

d. For properties that are part of a Homeowner Association (HOA), written authorization from HOA Board of Directors to Attachment 1
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use the property as a Short-Term Rental shall be required prior to action on the license by the City.

e. If the layout of the licensed site and/or structure had changed, an updated site and floor plan including unit square footage, bedroom and bathroom locations and dimensions, and
parking locations and dimensions, and photographs showing the interior of each bedroom and showing each parking
location.

f. If deemed necessary by the Community Development
Director or designee, updated notification materials containing information that allows the City to produce mailing labels, including both Owner and Occupant lists, in compliance with Section 5.22.120(A)(1)(c) of this code.

g. Such other information as the Director of Community
Development or designee deems reasonably necessary to
administer this chapter.

2. Submit to inspection of the property as outlined in Section (C) below.

3. Review and initial the Good Neighbor Policy.

4. Pay the Short-Term Rental license application fee, as established by resolution of the City Council.

5. Obtain a valid business license for a short-term rental property.

C. During the first three (3) annual licensing periods for a particular property, the property shall be inspected by the City during the renewal period for life safety purposes to ensure proper safety and operation of the STR or Homestay.

1. Following this three (3) year period, annual inspections shall not be required as part of the license renewal process, unless one or more violations of the applicable regulations in this code are confirmed within the previous twelve (12) month period. In such a case, annual inspections may be reinstated for twelve (12) months following each confirmed violation, at the discretion of the Community Development Director or designee.

5.22.150 Violations and enforcement.

A. It shall be unlawful and a misdemeanor for any person to construct for Short-Term Rental or Homestay use, to convert to Short-Term Rental or Attachment 1
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Homestay use, to offer to another for Short-Term Rental or Homestay use, to advertise for Short-Term Rental or Homestay use, or to occupy as a Short-Term Rental or Homestay use, any portion of any structure or facility without full compliance with this chapter.

B. In addition to, or in lieu of. criminal sanctions set forth in subsection

5.22.140(A), administrative penalties, including a notice of violation, shall be imposed, and licenses shall be revoked, in the manner provided in this subsection B.

1. The Community Development Director or designee shall cause an investigation to be conducted whenever there is reason to believe that an owner has failed to comply with the provisions of this chapter.

Should the investigation reveal that a violation occurred, the Community Development Director or designee shall issue written notice of the violation and intention to impose a penalty and/or revoke the license. The written notice shall be served on the owner and operator or agent and shall specify the facts which, in the opinion of the Community Development Director, constitute grounds for imposition of the penalties and/or revocation, and specify that the penalties will be imposed and/or that the license will be revoked within fifteen (15) days from the date the notice is given unless the owner and/or operator files with the City Clerk the amount of any fine imposed, and a request for a hearing.
a. The penalties for violations specified in subsection B. of this section shall be as follows: Notwithstanding anything to the contrary in Section 1.24.080 of this code, the initial fine shall be, at a minimum, seven hundred and fifty dollars ($750) for an administrative violation of this chapter and shall be, at a minimum, one thousand dollars ($1,000) for each subsequent violation. Each separate day or rental night in which a violation exists may be considered a separate violation. Any attempt to rent an unlicensed residence as an STR or Homestay by
advertising said property for Short-Term Rental or Homestay purposes shall be deemed a violation of this chapter. The City shall not issue an STR or Homestay license for a particular residence for a minimum of twelve (12) months after a
violation for marketing or renting said residence without a valid license.
b. Failure to sign an affidavit stating that the residence is the property owner’s primary residence will result in an initial fine of seven hundred and fifty dollars ($750) and license
revocation. Additionally, should it be determined that the residence is not the property owner’s primary residence, Attachment 1
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based on a preponderance of the evidence, the license shall be revoked.

c. Licensees failing to submit, or submitting late, two (2) or more Transient Occupancy Tax (TOT) submittals in a twelve (12) month period, shall not have their license renewed following the expiration of that period.

2. If the owner requests a hearing within the time specified in subsection (1) of this section, the City Clerk shall serve written notice on the owner and operator, by mail, of the date, time and place for the hearing which shall be scheduled not less than fifteen (15) days, nor more than forty-five (45) days after receipt of request for a hearing. The Community Development Director may preside over the hearing or may designate a hearing officer to take evidence and submit proposed findings and recommendations to the Community Development Director. The Community Development Director shall impose the penalties or revoke the license only upon a finding that a violation has been proven by a preponderance of the evidence, and that the penalty or revocation is consistent with the provisions of this chapter. The Community Development Director shall render a decision within thirty (30) days of the hearing and the decision shall be final.

C. The Community Development Director or designee shall have the authority to impose additional conditions on any license in the event of any violation of the conditions of the license or the provisions of this chapter.

5.22.160 Cessation of use of a property as short-term rental.

Where the owner of property licensed as a Short-Term Rental or Homestay pursuant to this chapter ceases such use, the property owner shall promptly inform the tax administrator of the cessation of use of the property as a short-term rental or Homestay and shall surrender the STR or Homestay license.

5.22.170 License suspension, modification, or revocation.

In addition to any other remedy provided by this chapter, a license issued pursuant to this chapter may be suspended, modified or revoked for violations of this chapter, for violation of any other law on the premises of the Short-Term Rental or Homestay, or for the maintenance of such other conditions as may be shown to be injurious to the public health and safety. Revocation proceedings may be initiated by the community development director and shall be conducted pursuant to the procedures set forth in Section 5.22.150(B).

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SECTION 3.

Under the provisions of the California Environmental Quality Act (CEQA) Guidelines Section 15061 (b) (3), this ordinance is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, such as the adoption the regulations contained herein, the activity is not subject to CEQA.

SECTION 4.

This ordinance shall not be interpreted in any manner to conflict with controlling provisions of state or federal law, including, without limitation, the Constitution of the State of California. If any section, subsection, or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. If this ordinance, or any section, subsection or clause of this ordinance shall be deemed unconstitutional or invalid as applied to a particular appeal, the validity of this ordinance and its sections, subsections, and clauses in regard to other contracts shall not be affected.

SECTION 5.

This ordinance shall become effective on the thirtieth (30th) day following passage and adoption hereof.

SECTION 6.

The City Clerk shall certify to the passage and adoption of this Ordinance, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted.

Before the expiration of fifteen (15) days after the passage of this Ordinance, the City Clerk shall cause the same to be posted in three public places within the City of Pismo Beach, to wit: 1) City Hall, 760 Mattie Road, Pismo Beach, 2) U.S. Post Office, Shell Beach Road, Pismo Beach, 3) U.S. Post Office, Crest Drive, Pismo Beach.

INTRODUCED at a regular meeting of the City Council held this 2nd day of May, 2023, on motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

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Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
ADOPTED at a regular meeting of the City Council held this th day of , 2023, on motion of Council Member , seconded by Council Member , and on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:

Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
APPROVED AS TO FORM:
______________________________
David M. Fleishman, City Attorney
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2 D. Pismo Beach Short-Term Rental/Homestay Good Neighbor Policy dŚĞŝƚǇŽĨWŝƐŵŽĞĂĐŚ^ŚŽƌƚ-dĞƌŵZĞŶƚĂů;^dZͿƌĞŐƵůĂƟŽŶƐĂƌĞŝŶƚĞŶĚĞĚƚŽŵŝŶŝŵŝǌĞƚŚĞŝŵƉĂĐƚƐŽĨ^dZƐŽŶ ƌĞƐŝĚĞŶƟĂůŶĞŝŐŚďŽƌŚŽŽĚƐ͘ŽŶƐĞƋƵĞŶƚůǇ͕ƚŚĞŝƚǇƌĞƋƵŝƌĞƐƚŚĂƚĂůůŽĐĐƵƉĂŶƚƐŽĨ^dZƐĂĚŚĞƌĞƚŽƚŚĞ'ŽŽĚ EĞŝŐŚďŽƌWŽůŝĐǇĂƐŽƵƚůŝŶĞĚďĞůŽǁ͗
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Ϯ͘ ΗZĞƐƉŽŶƐŝďůĞƉĂƌƚǇΗƐŚĂůůŵĞĂŶĂƉĞƌƐŽŶ͕ŽǀĞƌƚŚĞĂŐĞŽĨĞŝŐŚƚĞĞŶ͕ǁŚŽƐŚĂůůďĞůĞŐĂůůǇƌĞƐƉŽŶƐŝďůĞĨŽƌ ĐŽŵƉůŝĂŶĐĞŽĨĂůůƌĞŶƚĞƌƐĂŶĚǀŝƐŝƚŽƌƐŽĨƚŚĞ^dZŽƌŚŽŵĞƐƚĂǇǁŝƚŚĂůůĂƉƉůŝĐĂďůĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞWŝƐŵŽ ĞĂĐŚŵƵŶŝĐŝƉĂůĐŽĚĞ͘dŚĞƌĞƐƉŽŶƐŝďůĞƉĂƌƚǇƐŚĂůůƐŝŐŶƚŚĞŐŽŽĚŶĞŝŐŚďŽƌƉŽůŝĐǇĂŶĚŝƐĚĞƐŝŐŶĂƚĞĚĂƐƚŚĞ ƉŽŝŶƚŽĨĐŽŶƚĂĐƚĨŽƌƚŚĞƐŚŽƌƚ-ƚĞƌŵƌĞŶƚĂůŽƌŚŽŵĞƐƚĂǇ͘ ϯ͘ dŚĞƌĞƐƉŽŶƐŝďůĞƉĂƌƚǇƐŚĂůůĂƐƐƵƌĞƚŚĞŵĂŝŶƚĞŶĂŶĐĞŽĨƚŚĞůŝĐĞŶƐĞĚƉƌŽƉĞƌƚǇŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚŝƐĂŶĚ ŽƚŚĞƌĂƉƉůŝĐĂďůĞƌĞŐƵůĂƟŽŶƐĂŶĚ ƐŚĂůůďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞĐŽŶĚƵĐƚĂŶĚĂĐƚƐŽĨƐĂŝĚƌĞŶƚĞƌƐĂŶĚǀŝƐŝƚŽƌƐƚŽ ƚŚĞĞǆƚĞŶƚƉƌŽǀŝĚĞĚŚĞƌĞŝŶ͘dŚĞƌĞƐƉŽŶƐŝďůĞƉĂƌƚǇΖƐĐŽŶƚĂĐƚŝŶĨŽƌŵĂƟŽŶƐŚĂůůďĞƉƌŽǀŝĚĞĚƚŽĂůůƐŚŽƌƚ-ƚĞƌŵ ƌĞŶƚĞƌƐĂŶĚŶĞŝŐŚďŽƌƐǁŝƚŚŝŶƚŚƌĞĞŚƵŶĚƌĞĚĨĞĞƚŽĨƚŚĞ^dZŽƌŚŽŵĞƐƚĂǇŝŶƚŚĞŵĂŶŶĞƌƉƌĞƐĐƌŝďĞĚŝŶ ŚĂƉƚĞƌϱ͘ϮϮ͘
ϰ͘ dŚĞŽǁŶĞƌͬƌĞƐƉŽŶƐŝďůĞƉĂƌƚǇ ƐŚĂůůƌĞƐƉŽŶĚƚŽĂĐŽŵƉůĂŝŶƚǁŝƚŚŝŶϯϬŵŝŶƵƚĞƐ͘ ϱ͘Parking – WĂƌŬŝŶŐƐŚĂůůďĞƉƌŽǀŝĚĞĚŝŶĂŐĂƌĂŐĞŽƌŽŶĂĚƌŝǀĞǁĂǇ͘^dZŽĐĐƵƉĂŶƚƐƐŚĂůůƵƐĞƚŚĞŽī-ƐƚƌĞĞƚ ƉĂƌŬŝŶŐƚŚĂƚŝƐƉƌŽǀŝĚĞĚĨŽƌƚŚĞƌĞŶƚĂů͘
ϲ͘Noise – dŚĞ^dZƌĞŶƚĞƌƐĂŶĚǀŝƐŝƚŽƌƐƐŚĂůůŶŽƚŐĞŶĞƌĂƚĞŶŽŝƐĞƚŽĂŶĞǆƚĞŶƚƚŚĂƚƵŶƌĞĂƐŽŶĂďůǇŝŶƚĞƌĨĞƌĞƐǁŝƚŚ ƚŚĞƋƵŝĞƚƵƐĞĂŶĚĞŶũŽǇŵĞŶƚŽĨŶĞŝŐŚďŽƌŝŶŐƉƌŽƉĞƌƟĞƐ͘ŶǇŶŽŝƐĞŽĐĐƵƌƌŝŶŐĂŌĞƌϭϬƉ͘ŵ͘ĂŶĚďĞĨŽƌĞϳ͗ϬϬ Ă͘ŵ͘ƐŚĂůůďĞĐŽŶƚĂŝŶĞĚǁŝƚŚŝŶƚŚĞ^dZͬ,ŽŵĞƐƚĂǇ͘
ϳ͘Trash – dƌĂƐŚƐŚĂůůŶŽƚďĞůĞŌƐƚŽƌĞĚǁŝƚŚŝŶƉƵďůŝĐǀŝĞǁ͕ĞǆĐĞƉƚŝŶƉƌŽƉĞƌĐŽŶƚĂŝŶĞƌƐĨŽƌƉƵƌƉŽƐĞƐŽĨ ĐŽůůĞĐƟŽŶ͘dŚĞƌĞƐŚĂůůďĞŶŽĂĐĐƵŵƵůĂƟŽŶŽĨƐƚŽƌĂŐĞŽĨƚƌĂƐŚĂŶĚͬŽƌĚĞďƌŝƐŽŶƚŚĞƐŝƚĞŽƌǁŝƚŚŝŶƚŚĞ ^dZͬ,ŽŵĞƐƚĂǇ͘
ϴ͘dƌĂĸĐ – sĞŚŝĐůĞƐƵƐĞĚĂŶĚƚƌĂĸĐŐĞŶĞƌĂƚĞĚďǇƚŚĞ^dZŽƌŚŽŵĞƐƚĂǇƐŚĂůůŶŽƚĞǆĐĞĞĚŶŽƌŵĂůƌĞƐŝĚĞŶƟĂů ůĞǀĞůƐŽƌƵŶƌĞĂƐŽŶĂďůǇŝŶƚĞƌĨĞƌĞǁŝƚŚƚŚĞƋƵŝĞƚƵƐĞĂŶĚĞŶũŽǇŵĞŶƚŽĨĂŶǇŽƚŚĞƌƌĞƐŝĚĞŶĐĞƐŽƌďƵƐŝŶĞƐƐĞƐŝŶ ƚŚĞĂƌĞĂ͘tŚĂƚŝƐƌĞĂƐŽŶĂďůĞŝŶƚĞƌŵƐŽĨƚƌĂĸĐŐĞŶĞƌĂƚĞĚƐŚĂůůďĞĚĞƚĞƌŵŝŶĞĚƵŶĚĞƌĞǆŝƐƟŶŐůĞŐĂůƐƚĂŶĚĂƌĚƐ ĂƉƉůŝĐĂďůĞƚŽĞǀĂůƵĂƟŶŐĂůůĞŐĞĚŶƵŝƐĂŶĐĞƐ͘
ϵ͘Maximum Occupancy – DĂǆŝŵƵŵŽǀĞƌŶŝŐŚƚŽĐĐƵƉĂŶĐǇŽĨĂŶ^dZŽƌŚŽŵĞƐƚĂǇƐŚĂůůďĞůŝŵŝƚĞĚƚŽƚǁŽ ƉĞŽƉůĞƉĞƌďĞĚƌŽŽŵ͕ƉůƵƐƚǁŽĂĚĚŝƟŽŶĂůƉĞŽƉůĞ͘&ŽƌĞǆĂŵƉůĞ͕ĂƚǁŽ-ďĞĚƌŽŽŵ^dZŵĂǇŚĂǀĞƵƉƚŽƐŝǆ ŽĐĐƵƉĂŶƚƐŽǀĞƌŶŝŐŚƚ͘dŚŝƐĐĂůĐƵůĂƟŽŶƐŚĂůůďĞŝŶĐůƵƐŝǀĞŽĨĐŚŝůĚƌĞŶ͘ ϭϬ͘Visitors – dŚĞŶƵŵďĞƌŽĨǀŝƐŝƚŽƌƐƚŽĂŶ^dZŽƌŚŽŵĞƐƚĂǇƐŚĂůůŶŽƚĞǆĐĞĞĚĂŶƵŵďĞƌĞƋƵĂůƚŽƚŚĞĂůůŽǁĂďůĞ ŽĐĐƵƉĂŶĐǇŽĨƚŚĞ^dZŽƌŚŽŵĞƐƚĂǇĂƚĂŶǇƟŵĞ͘sŝƐŝƚŽƌƐĂƌĞŶŽƚĂůůŽǁĞĚŝŶƚŚĞ^dZŽƌŚŽŵĞƐƚĂǇďĞƚǁĞĞŶ ϭϭ͗ϬϬƉ͘ŵ͘ĂŶĚϳ͗ϬϬĂ͘ŵ͘ĂŶĚƐŚĂůůŶŽƚƐƚĂǇŽǀĞƌŶŝŐŚƚŽŶƚŚĞƉƌĞŵŝƐĞƐ͘ ǇŝŶŝƟĂůŝŶŐďĞůŽǁ͕/ĂŵĐŽŶĮƌŵŝŶŐƚŚĂƚ/ƵŶĚĞƌƐƚĂŶĚĂŶĚĂŐƌĞĞƚŚĂƚŝƚŝƐƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚǇŽĨƚŚĞŽǁŶĞƌͬƌĞƐƉŽŶƐŝďůĞ ƉĂƌƚǇĐŽŶƚĂĐƚƚŽĞŶƐƵƌĞƚŚĂƚĂůů^dZͬ,ŽŵĞƐƚĂǇƌƵůĞƐĂŶĚƌĞŐƵůĂƟŽŶƐĂƌĞĂĐŬŶŽǁůĞĚŐĞĚĂŶĚĂĚŚĞƌĞĚƚŽďǇƚŚĞ^dZ ƌĞŶƚĞƌƐĂŶĚǀŝƐŝƚŽƌƐ͘
KǁŶĞƌ/ŶŝƟĂůƐͺͺͺͺͺͺͺͺͺ ZĞƐƉŽŶƐŝďůĞWĂƌƚǇ/ŶŝƟĂůƐͺͺͺͺͺͺͺͺͺ Council Agenda 5-2-2023 12.A-21
Attachment 2
May 2, 2023 Staff Report
Attachment 1

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Attachment 2

12.E-27Council Agenda 7-18-2023
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Attachment 2

12.E-28Council Agenda 7-18-2023
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Attachment 3

12.E-29Council Agenda 7-18-2023
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Attachment 3

12.E-30Council Agenda 7-18-2023
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Attachment 3

12.E-31Council Agenda 7-18-2023
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12.E-32Council Agenda 7-18-2023
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12.E-34Council Agenda 7-18-2023
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.F

SUBJECT/TITLE:

EMERGENCY FIRE SUPPRESSION WATER SERVICE TO COASTAL CHRISTIAN SCHOOL AT 1005 NORTH OAK PARK BOULEVARD
RECOMMENDATION:

Discuss Coastal Christian School’s request for a direct connection to the City’s water supply infrastructure to supply emergency fire suppression to the school’s Multipurpose Building’s fire suppression sprinklers only, and provide direction to staff on a modification to the existing agreement between the City and the school, if desired.

BACKGROUND:

On November 16, 2021, the City Council considered and approved a request from Coastal Christian School (CCS) for the City of Pismo Beach to provide emergency fire suppression water to the school’s campus at 1005 North Oak Park Boulevard. The City executed an Extra-Territorial Service and Offsite Infrastructure Agreement with CCS subject to approval of the proposal by the San Luis Obispo Local Agency Formation Commission (LAFCO), as the campus is located outside city limits but within its sphere of influence. Further background information is provided in staff’s November 16, 2021 report to Council, which is available in the Access Pismo public records portal at www.pismobeach.org/accesspismo.1
Since that time, CCS has conducted further analysis of the arrangement and has requested that the City consider revising the Agreement. At the June 20, 2023 meeting, the City Council directed staff to review an alternative concept for fire suppression service to the school and return with an item allowing the City Council to re-evaluate the existing agreement.

Current Water System and City Agreement
The current water system for the campus consists of five 5,000-gallon tanks which supply 25,000 gallons for fire suppression and a separate tank for domestic water use. To meet fire suppression requirements for Phase II of the campus development, the fire system must be able to provide 1,500 gallons per minute (gpm) for two hours. The onsite well can only provide a maximum of 70 gpm, which means the school’s current water system would require a 180,000-gallon reservoir for fire suppression storage. However, on November 16, 2021, the City Council approved an Extra-territorial Service and Offsite Infrastructure Agreement between CCS and the City of Pismo Beach (included in Attachment 1) to allow the school to utilize the City’s water system to fill the fire suppression reservoir should the reservoir’s water level fall below a set limit. With this configuration it was estimated that fire suppression needs could be achieved with two additional 5,000-gallon tanks, which would have considerable cost savings to the school. 1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=362772&dbid=0&repo=Laserfiche Council Agenda 7-18-2023 12.F-1
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The City’s water supply would be controlled by a float valve as shown in Figure 2, on the next page.

Figure 1: Coastal Christian School Campus
Figure 2: Typical Float Valve
Further Analysis and Revised Proposal
After a further in-depth analysis of the proposed emergency water supply connection as well as coordination with CalFire and City staff, Coastal Christian School is now requesting a direct connection to City’s water system only for the Multipurpose Building fire sprinkler system. All domestic water and onsite fire hydrants would still be supplied by CCS’s onsite water system. This connection would provide CCS with the following benefits:

Council Agenda 7-18-2023 12.F-2
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 Reduced complexity of the fire water system
 Reduced maintenance costs
 Reduces the potential City supplied water from 903 gpm for four hours to 450 gpm for one hour
 Provides CCS’s fire water system with enhanced reliability  Eliminates the need for pumps in CCS’s fire suppression sprinkler system

When first approached with the concept of a direct connection to the City’s water supply system the staff had the following concerns:
 Water theft through fire hydrants
 Equity to the City’s rate payers
 Safety of the City’s water supply
 The ability of the water system to provide fire suppression to CCS while still meeting domestic water and/or fire suppression needs of City

CCS addressed these concerns by offering the following:
 Revising their plans to rely on the City’s water supply for only the fire sprinkler system
 Agreeing to pay water service fees in excess of the typical costs to cover the City’s additional administrative expenses for billing and infrastructure planning  Installing a double detector check valve to prevent backflow and contamination of the City’s water supply/infrastructure
 Hiring a consultant to ensure that the emergency connection would not negatively impact:
o The City’s ability to provide domestic water to its residents and businesses o The City’s own fire suppression needs

Should the City Council choose to allow a direct connection to the City’s water system to only supply water to the MPB fire suppression sprinkler system the following steps would need to be accomplished by CCS and City staff:
 Revision of the existing Extra-Territorial Service and Offsite Infrastructure Agreement between Coast Christian School and the City of Pismo Beach (Agreement) to reflect the revised project description
 Adoption of a City Council resolution approving the revised agreement and project description
 Gain LAFCO’s approval of the revised Agreement and revised project description

Conclusion and Recommendation
CCS has addressed staff’s concerns with a direct connection to the City’s water supply infrastructure and therefore staff supports this concept as long as the modeling shows there is adequate pressure and flow to meet the City’s domestic and fire suppression needs in the event of a draw on the system by the CCS fire suppression sprinkler system.

Staff recommends that the City Council discuss CCS’s request (Attachment 1) and provide staff with direction on how to proceed. Should the Council direct staff to proceed with CCS’s proposal, staff would return to the Council at the next available meeting with Council Agenda 7-18-2023 12.F-3
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a revised agreement for the Council’s consideration, after which the proposal would proceed to LAFCO.

FISCAL IMPACT:

There is no direct fiscal impact associated with Council providing direction to City staff.

There would be a fiscal impact to provide these additional services to Coastal Christian School, which the City would seek to recover from CCS through additional service charges. Additionally, the City may choose to have staff evaluate a private fire hydrant service charge. This charge could be a bi-monthly fixed fee based on meter size that covers a portion of the fixed costs of operating the water system. Such fixed costs include maintenance of the water system and facilities, customer service, administration, and staffing, plus an additional cost to provide services outside of the City’s limits. If the proposal moves forward, staff would evaluate these costs.

ALTERNATIVES:

None.

ATTACHMENTS:

1. Memorandum from Oasis Associates on behalf of Coastal Christian School, which includes:

A. Resolution No. R-2021-092
B. LAFCO Final Notice of Completion for the Outside User Agreement between the City of Pismo Beach and Coastal Christian School C. LAFCO Resolution No 2022-04
D. Recorded copy of the Extra-Territorial Service and Offsite Infrastructure Agreement Between Coastal Christian School and City of Pismo Beach E. Sphere of Influence Exhibit
Meeting Date: July 18, 2023 Prepared by and Submitted by:

Benjamin A. Fine, P.E.

Director of Public Works/City Engineer
Interim City Manager Approval:

Council Agenda 7-18-2023 12.F-4
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3427 Miguelito Court San Luis Obispo, CA 93401 805.541.4509 p 805.546.0525 f www.oasisassoc.com
mmemorandum
DATE:16 June 2023
TO:HONORABLE CITY COUNCIL MEMBERS – CITY OF PISMO BEACH, CA FROM:C.M. Florence, AICP, Agent for Coastal Chrisian School RE: REQUEST TO REVISIT THE EXTRA TERRITORIAL SERVICE AND

OFFSITE INFRASTRUCTURE AGREEMENT BETWEEN COASTAL
CHRISTIAN SCHOOL (CCS) AND CITY OF PISMO BEACH for FIRE

SUPPRESSION WATER
I. OVERVIEW
On November 16, 2021, the City Council generously approved Resolution No. R-2021-092 approving a request by CCS to provide emergency fire suppression water to the school’s campus.

In March 2022, the Local Agency Formation Commission (LAFCO) reviewed and approved an Outside User Agreement for the City of Pismo Beach. On April 15, 2022, the Extra Territorial Service and Offsite Infrastructure Agreement Between Coastal Christian School and City of Pismo Beach was recorded. Since that time, CCS has been diligently pursuing the preparation of building plans and related specification for the ultimate construction of its multi-purpose building (MPB) and related amenities.

II. BASIS OF DESIGN –WHAT WE KNEW AT THE TIME
At the time of the noted approvals, CCS had conducted a very preliminary analysis of the proposed fire suppression system requirements, as described below

1. ….to meet the fire suppression requirements for the campus’s Phase II, the fire system must be able to provide a 1,500 gallons per minute (gpm) for two hours, which means the school’s current water system would require a 180,000-gallon reservoir for fire suppression storage; however, if the school is able to utilize the City’s water system, it would only need to construct two additional 5,000-gallon tanks for fire suppression.

In essence, should CCS’ private water system fail to provide sufficient fire flow duration, City water would be automatically supplied into the school’s fire suppression tanks, allowing them to continue to feed the new building’s sprinkler system and fire hydrants in an emergency. As described, this is a very complicated and expensive design to pursue, based upon the following components:
Tie-in and additional piping to carry City water for fire suppression up to the existing tank farm, on as-needed basis;
1 Excerpt from adopted City Council Resolution No. R-2021-092, November 16, 2021.

Attachment 1
Council Agenda 7-18-2023 12.F-5
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OASIS ASSOCIATES, INC.

COASTAL CHRISTIAN SCHOOL + CITY OF PISMO BEACH
16 June 2023

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Pismo Beach City CouncilJuly 18, 2023

Pismo Beach City Council
July 18, 2023