Agenda packet — San Luis Obispo City Council, August 16, 2022 (part 1 of 3)

City Council
AGENDA

Tuesday, August 16, 2022, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
The City of San Luis Obispo has returned to in-person meetings. Zoom participation will not be supported. For those attending in-person, the Council Chamber will be at limited capacity and masks are strongly recommended. Council meetings may be viewed remotely on Channel 20 and the City's YouTube Channel: http://youtube.slo.city
INSTRUCTIONS FOR PUBLIC COMMENT:

Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):

Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401.

Email - Submit Public Comments via email to [email protected]. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting.

Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline will not be processed until the following day.

Public Comment during the meeting:

Meetings have returned to an in-person format. To provide public comment during the meeting, you must be present in the Council Chambers.

Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation are encouraged to provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at [email protected] or (805) 781-7100.

Pages

1. CLOSED SESSION: STARTS AT 5:00 PM

1.a. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
Agency Negotiators:

Nickole Domini, Britani Roltgen, Che Johnson, Derek Johnson, J.

Christine Dietrick, Shelly Stanwyck
Represented Employee Organizations:

San Luis Obispo City Employee’s Association (SLOCEA)
San Luis Obispo Police Officer’s Association (POA)
San Luis Obispo Police Staff Officer’s Association (SLOPSOA) International Association of Firefighters Local 3523
Unrepresented Employees:

Unrepresented Management Employees
Unrepresented Confidential Employees

1.b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code §54956.8
Property:

APN 002-435-023
Agency Negotiators:

Derek Johnson, City Manager; Christine Dietrick, City Attorney; Markie Kersten, Assistant City Attorney; Shelly Stanwyck, Assistant City Manager; Greg Hermann, Deputy City Manager; Matt Horn, Director of Public Works; Brian Nelson, City Engineer; Shelsie Moore, Supervising Civil Engineer; Wyatt Banker-Hix, Engineer III
Negotiating Parties:

Thomas Michael Maino and Gena Estelle Maino, Trustees of the Maino Family Revocable Trust
Under Negotiation:

Price and terms of payment

1.c. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. No. of potential cases: One.

A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency. The existing facts and circumstances exposing the City to litigation include the following:

The City has received a litigation threat from the Maino Family Trust arising from the City’s alleged encroachments of the City’s Marsh Street Bridge project onto private property. Correspondence regarding these issues is available for review in the City Clerk’s Office located at 990 Palm Street.

1.d. ADJOURN CLOSED SESSION
Adjourn to the Regular Meeting of the City Council scheduled for Tuesday, August 16, 2022 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

2. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.

Note: On July 5, 2022, the City Council adopted Ordinance No. 1715 (2022 Series), which amended the start time of Regular Meetings from 6:00 p.m. to 5:30 p.m. This change goes into effect for the August 16, 2022 Council Meeting and will continue for all future meetings of the City Council. Please review the Staff Report for more details on this amendment.

3. PLEDGE OF ALLEGIANCE
Council Member Andy Pease will lead the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a. CITY MANAGER REPORT
Receive a brief report from City Manager Derek Johnson.

5. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Not to exceed 15 minutes. The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items.

6. CONSENT AGENDA
Not to exceed 15 minutes. Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit.

Recommendation:

To approve Consent Calendar Items 5a to 5k.

6.a. WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

6.b. MINUTES REVIEW - JULY 19, 2022 AND JULY 26, 2022 COUNCIL

MINUTES
13 Recommendation:

Approve the following minutes of the City Council:
• July 19, 2022 - Regular Meeting Minutes
• July 26, 2022 - Special Closed Session Minutes

6.c. SECOND READING AND ADOPTION OF ORDINANCE NO. 1719,

UPDATING THE INCLUSIONARY HOUSING ORDINANCE, AND
ORDINANCE NO. 1720, ESTABLISHING A COMMERCIAL LINKAGE
FEE
25 Recommendation:

Adopt Ordinance No. 1719 (2022 Series) entitled, “An
Ordinance of the City Council of the City of San Luis Obispo, California, approving an update to the City’s Inclusionary Housing Ordinance of the Municipal Code (Chapter 17.138) with an exemption from Environmental Review (CEQA)”; and

1. Adopt Ordinance No. 1720 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 4 of the City of San Luis Obispo Municipal Code to add Chapter 4.60 to establish a Commercial Linkage Fee with an exemption from Environmental Review (CEQA)”.

2. 6.d. AUTHORIZE ADVERTISEMENT OF WASTEWATER COLLECTION

INFRASTRUCTURE RENEWAL STRATEGY REPORT AND FLOW

STUDY UPDATE
49 Recommendation:

Approve the request for proposals for the Infrastructure Renewal Strategy (IRS) Report Update and associated Flow Study (Project), Specification No. 91736; and

1. Authorize staff to advertise the Project for proposals and bids; and

2. Authorize the City Manager to award the contract for the Project if the lowest responsible bid is within available project funding of $430,000; and

3. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Sewer Fund Unassigned Working Capital for preparation of the Infrastructure Renewal Strategy Report Update and associated Flow Study, Specification No. 91736” in the amount of $180,000.

4. 6.e. AUTHORIZATION TO ADVERTISE REQUEST FOR PROPOSALS

FOR CONSULTANT SERVICES TO PROVIDE SPECIALIZED

SERVICES FOR THE PRADO ROAD INTERCHANGE PROJECT
91 Recommendation:

Authorize advertisement of a Request for Proposals for Value Analysis (VA) services for the Prado Road Interchange Project; and

1. Authorize advertisement of a Request for Proposals for design services in the Project Approval/Environmental Document (PA/ED) phase of work in a form agreed on by the City
Engineer and City Attorney; and

2. Authorize advertisement of a Request for Proposals for design services in the Plans, Specifications, and Estimate (PS&E) Phase of work in a form agreed on by the City Engineer and City Attorney; and

3. Authorize the City Manager to execute an agreement with the selected consultant in each case; and

4. Authorize the City Engineer to execute and amend the Purchase Order for selected consultants if within the available project budget.

5. 6.f. APPROVE AN AMENDMENT TO THE FUNDING AGREEMENT WITH

THE COUNTY OF SAN LUIS OBISPO FOR THE PRADO ROAD

INTERCHANGE
129
Recommendation:

Approve Amendment No. 1 to the Funding Agreement with the County of San Luis Obispo for its contribution of $1,435,260 towards construction of the Prado Road Interchange to extend the term of the Agreement and authorize the City Manager to execute the Amendment.

6.g. AUTHORIZATION TO APPLY FOR FUELS REDUCTION PROJECT GRANT FUNDING THROUGH THE READY, SET, GO! PROGRAM
137
Recommendation:

Authorize the Fire Department to apply to the Ready, Set, Go! Program’s Fuels Reduction Project Grant Funding for a grant in the amount of $10,000 to conduct fuel reduction work along the East Fork of the San Luis Obispo Creek; and

1. Authorize the City Manager, or their designee, to execute the grant documents and approve the budget changes necessary to appropriate the grant amount upon notification that the grant has been awarded.

2. 6.h. FIRE MUTUAL AID REIMBURSEMENT RESOLUTION AMENDMENT 141 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, identifying the terms and conditions for Fire Department response away from their official duty station and assigned to an emergency incident” to expand the City’s ability to seek full reimbursement for eligible mutual aid responses to fires and other disasters by adding two new Fire Department positions to the list of eligible employees and repealing the previous Resolution No. 11234 (2021 Series).

6.i. APPROVE AN ON-CALL TECHNOLOGY PROJECT MANAGEMENT

CONSULTANT SERVICES CONTRACT WITH ARCHER STREET, LLC
195
Recommendation:

Authorize the City Manager to execute an agreement with the selected on-call consulting firm; and

1. Authorize the Finance Director to execute and amend purchase orders in an amount not-to-exceed the authorized project budget; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the 2022-23 Budget Allocation” to appropriate $52,000 of the City’s Information Technology Replacement Unassigned Fund balance to the Community Development
operating budget for Technology Project Management
Consultant Services.

3. 6.j. ANNUAL SPECIAL TAX LEVY REPORT FOR THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (SAN LUIS RANCH)
235
Recommendation:

Receive and file the Annual Special Tax Levy Report for the City of San Luis Obispo Community Facilities No. 2019-1 (San Luis Ranch).

6.k. ANNUAL SPECIAL TAX LEVY REPORT FOR THE CITY OF SAN LUIS OBISPO COMMUNITY FACILITIES DISTRICT NO. 2017-1 (AVILA
RANCH)
277
Recommendation:

Receive and file the Annual Special Tax Levy Report for the City of San Luis Obispo Community Facilities No. 2017-1 (Avila Ranch).

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a. IMPLEMENTATION OF GOVERNOR’S EMERGENCY DROUGHT
MANDATES (Estimated Time: 30 minutes)
317
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City of San Luis Obispo, California, declaring that the City enter into Stage 2, the “Warning Stage”, of its 2020 Water Shortage Contingency Plan;” and

1. Authorize staff to implement water demand reducing measures outlined within Stages one and two, the “Warning” and “Watch” stages, of its Water Shortage Contingency Plan.

2. 7.b. POLICE DEPARTMENT 2020/2021 CRIME COMPARISON AND UPDATE (Estimated Time: 60 minutes)
325
Recommendation:

Receive and file the 2020/2021 Police Department Crime Report.

8. STUDY SESSION

8.a. STUDY SESSION: TRANSIT PROGRAM ANALYSIS (Estimated Time:
60 minutes)
373
Recommendation:

Receive a report updating Council on SLO Transit and the Transit Program Analysis, which was recently completed by IBI Group.

9. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on conferences or other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2)

10. ADJOURNMENT
The next Regular Meeting of the City Council will be held on September 6, 2022 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.

The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410.

City Council meetings are televised live on Charter Channel 20 and the City's YouTube Chanel: http://youtube.slo.city. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website
https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7100.
1 Council Minutes
July 19, 2022, 5:00 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
Council Members

Present:

Council Member Jan Marx, Council Member Andy Pease,
Council Member Michelle Shoresman, Vice Mayor Carlyn
Christianson, Mayor Erica A. Stewart
City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CLOSED SESSION
City Attorney Christine Dietrick provided the listed action on the Closed Session:

1.a CONFERENCE WITH LABOR NEGOTIATORS – No Reportable Action

1.b CONFERENCE WITH LEGAL COUNSEL, ANTICIPATED LITIGATION – No Reportable Action

1.c CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(APN 002-482-017) – City Council provided direction on price and terms

2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on July 19, 2022 at 6:00 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart, with Council Members Marx and Pease participating remotely.

3. PLEDGE OF ALLEGIANCE
Vice Mayor Christianson led the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a INTRODUCTIONS - NEW / PROMOTED FIRE DEPARTMENT STAFF Fire Chief Keith Aggson introduced new members of the Fire Department's Mobile Crisis Unit.

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2 4.b CITY MANAGER REPORT
City Manager Derek Johnson provided a report on upcoming projects.

5. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Public Comment:

Fitz Kelly
Jeffery Specht
--End of Public Comment--

6. CONSENT AGENDA
Council Member Pease indicated she would recuse herself from Item 6d.

Mayor Stewart requested that Item 6i be pulled from the Consent Agenda.

Public Comments:
6d – Lindy Hatcher
6f – Joe Benson
---End of Public Comment---
Motion By Council Member Pease
Second By Vice Mayor Christianson
To approve Consent Calendar Items 6a to 6h.

Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
CARRIED (5 to 0)

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - JULY 5, 2022 COUNCIL MINUTES
Approve the minutes of the City Council meeting held on July 5, 2022.

6.c SECOND READING OF ORDINANCE NO. 1716 (2022 SERIES)

AMENDING THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE TITLE 5, TO AMEND CHAPTER 5.50 (SIDEWALK CAFES) AND ADD
CHAPTER 5.51 (PARKLETS)
Adopt Ordinance No. 1716 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 5 (Licenses, Permits, and Regulations) of the Municipal Code to amend Chapter 5.50 (Sidewalk Cafés) and add Chapter 5.51 (Parklets).”

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3 6.d SECOND READING OF ORDINANCE NO. 1717 AND 1718 (2022 SERIES) ADDING CHAPTER 8.10 TO THE MUNICIPAL CODE TO
REQUIRE ALL-ELECTRIC NEW BUILDINGS AND TO AMEND TITLE 17

TO PROVIDE LIMITED TERM REGULATORY FLEXIBILITY
Council Member Pease indicated she would be recusing herself from this item as the FPPC is still reviewing a complaint regarding her ability to vote on this subject due to the nature of her work as a consultant.

1. Adopt Ordinance No. 1717 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 8 (Health and Safety) of the San Luis Obispo Municipal Code by adding Chapter 8.10 requiring all-electric new buildings”; and

2. Adopt Ordinance No. 1718 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 17 (Zoning Regulations) of the Municipal Code supporting the Clean Energy for New Buildings Program (PL-CODE-0286-2022)” to provide regulatory flexibility through December 31, 2025 in support of the Clean Energy for New Buildings Incentive Program.

6.e APPROVE A MILLS ACT HISTORICAL PROPERTY CONTRACT FOR 211 CHORRO STREET (THE MULLER-NOGGLE HOUSE AND GARAGE)
Adopt Resolution No. 11345 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owners of the Muller-Noggle House and Garage at 211 Chorro Street (Application No. HIST-0174-2022).”

6.f APPROVE A TRANSIT SERVICE AGREEMENT BETWEEN THE CITY

OF SAN LUIS OBISPO AND CAL POLY
Authorize the City Manager to enter into a Transit Service Agreement with California State Polytechnic University to provide Transit Service for Fiscal Years 2022-23 and 2023-24.

6.g AUTHORIZATION TO ADVERTISE CHENG PARK REVITALIZATION PROJECT, SPECIFICATION NO. 91385-10

1. Approve the project plans and special provisions for the Cheng Park Revitalization, Specification 91385-10; and

2. Authorize staff to advertise for bids; and

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4 3. Authorize the City Manager to award the Construction Contract for the bid total if the lowest responsible bid is within the Engineer’s Estimate of $400,000; and

4. Authorize the City Engineer to approve Contract Change Orders up to the available project budget; and

5. Authorize an appropriation up to $200,000 in Capital Reserve Funds to support completion of the project; and

6. Authorize the Finance Director to return unspent Capital Reserve funding to the Capital Reserve Fund balance after project completion; and

7. Adopt Resolution No. 11346 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Capital Projects Reserve Fund to support Cheng Park Revitalization, Specification Number 91385-10”.

6.h DEPLOYMENT OF PUBLIC ELECTRIC VEHICLE CHARGING

INFRASTRUCTURE ON CITY PROPERTY

1. Authorize the City Manager to enter into an Agreement with ChargePoint to develop the project scope, conduct site assessments, and prepare design packages in order to develop no-cost deployment of public electric vehicle chargers and related infrastructure on City Property, in a form satisfactory to the City Attorney; and

2. Direct staff to negotiate terms for a no-cost lease or license agreement with the City’s chosen owner and operator for ChargePoint electric vehicle charging infrastructure; and

3. Authorize the City Manager to enter into a no-cost lease or license agreement with the City’s chosen owner and operator of ChargePoint electric vehicle charging infrastructure, in a form satisfactory to the City Attorney.

6.i AUTHORIZATION TO ADVERTISE 2022 PEDESTRIAN CROSSING IMPROVEMENTS PROJECT, SPECIFICATION NO. 1000069
Mayor Stewart requested that Item 6i be pulled from the Consent Agenda.

Transportation Manager Luke Schwartz and Transportation Planner / Engineer Justin Wong provided a brief staff report and responded to Council questions.

Public Comments:

Karen Christian
Amaya Weddle
Robb Moss
Lea Brooks
Helene Finger
---End of Public Comment---

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5 Motion By Council Member Shoresman
Second By Mayor Stewart

1. Approve the project plans and specifications for the 2022 Pedestrian Crossing Improvements Project, Specification Number 1000069; and

2. Authorize staff to advertise for bids; and

3. Authorize the City Manager to award the Construction Contract pursuant to Section 3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the publicly disclosed funding amount of $776,250; and

4. Authorize the City Engineer to approve Contract Change Orders up to the available project budget.

Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
CARRIED (5 to 0)

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a APPROVE THE NAMING OF THE CERRO SAN LUIS NEIGHBORHOOD

GREENWAY AND AUTHORIZE STAFF TO ADVERTISE THE PROJECT
FOR BIDS, SPECIFICATION NO. 1000036
Transportation Manager Luke Schwartz and Transportation Planner Jennifer Rice provided an in-depth staff report and responded to Council questions.

Public Comments:

Barry Rands
Anne Hodges
T. Keith Gurnee
Bob Shanbrom
Lea Brooks
---End of Public Comment---

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6 Motion By Vice Mayor Christianson
Second By Council Member Shoresman

1. Approve the project plans and specifications for the approved North Chorro Neighborhood Greenway, Specification Number 1000036; and

2. Authorize staff to advertise for bids; and

4. Authorize the City Engineer to approve Contract Change Orders in excess of $200,000 and up to the available project budget; and

5. Approve sole source purchases for a decorative art fence and mural and authorize the Public Works Director to award contracts related to design and installation of the public art features up to the available project budget; and

6. Adopt Resolution No. 11347 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Capital Projects Reserve Fund and Infrastructure Investment Fund to support the North Chorro Neighborhood Greenway Project, Specification No. 1000036”, and appropriate $1,000,000 from the Capital Projects Reserve Fund and $1,223,000 from the Infrastructure Investment Fund to the Project Account 1000036.

Ayes (4): Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
Noes (1): Council Member Marx
CARRIED (4 to 1)
Motion By Council Member Shoresman
Second By Vice Mayor Christianson

1. Approve the renaming of the former Anholm Neighborhood Greenway to the North Chorro Neighborhood Greenway; and

2. Adopt Resolution No. 11348 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, renaming the ‘Anholm Neighborhood Greenway’ to the ’North Chorro Neighborhood Greenway’”.

Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
CARRIED (5 to 0)

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7 7.b INTRODUCE TWO ORDINANCES TO 1) REPEAL AND REPLACE CHAPTER 17.138 (INCLUSIONARY HOUSING REQUIREMENTS) AND 2) AMEND TITLE 4 TO ADD CHAPTER 4.60 (COMMERCIAL LINKAGE FEE) Community Development Director Michael Codron, Senior Planner Rachel Cohen, and Housing Policy and Program Manager Teresa McClish provided an in-depth staff report and responded to Council questions.

Public Comments:

Joe Benson
Lindy Hatcher
Damien Mavis
Jim Dantona
Aaryn Abbott
Tayler Simpson
Jocelyn Brennan
Kimmie Nguyen
Ken Trigueiro
Lea Brooks
Anne Wyatt
---End of Public Comment---
Motion By Vice Mayor Christianson
Second By Council Member Shoresman

1. Introduce Ordinance 1719 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving the repeal and replacement of the City of San Luis Obispo’s Municipal Code Chapter 17.138 (Inclusionary Housing Requirements) to update regulations for consistency with the 6th Cycle Housing Element with an exemption from Environmental Review (CEQA); and

2. Introduce Ordinance No. 1720 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 4 of the City of San Luis Obispo Municipal Code to add Chapter

4.60 to establish a Commercial Linkage Fee with an exemption from Environmental Review (CEQA)”; and

3. Adopt Resolution No. 11349 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending Inclusionary Housing In-Lieu Fees in accordance with Chapter 17.138 of Title 17 and establishing the amounts of Commercial Linkage Fees in accordance with Chapter 4.60 of Title 4 of the San Luis Obispo Municipal Code and amending the Comprehensive Fee Schedule”; and

4. Direct staff to develop new incentives for housing developers to ensure the success of Housing Element Programs such as Flexible Density Downtown, Missing Middle Housing, and SB9/Subdivision Regulations Update; and

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8 5. Direct staff to investigate grants and other options for funding of additional affordable housing programs, such as a First-Time Homebuyers Program.

With the following changes:
 Adding JADU exemptions
 Adding fractional unit language as presented at the meeting.  Administrative changes to incorporate the changes
Ayes (4): Council Member Marx, Council Member Pease, Council Member Shoresman, and Vice Mayor Christianson
Noes (1): Mayor Stewart
CARRIED (4 to 1)

7.c DIRECTION ON TERMS OF A COMMUNITY WORKFORCE AGREEMENT

FOR THE CULTURAL ARTS DISTRICT PARKING STRUCTURE
Public Works Director Matt Horn, Deputy Director of Public Works Brian Nelson and Justin Pickard, Consultant provided an in-depth staff report and responded to Council questions.

Public Comments:

Richard Van Humbeck
Joe Benson
Autumn Brown
Pedro Toscano
Manley McNinch
---End of Public Comment---
Motion By Mayor Stewart
Second By Vice Mayor Christianson

1. Based on the substantive differences, on three issues of significance, and the time constraints surrounding the bidding and contracting associated with the Cultural Arts District Parking Structure, acknowledge that a Community Workforce Agreement “CWA” shall not apply to the Cultural Arts District Parking Structure; and

2. Direct staff to continue to dialogue with the Trades for the Prado Road Interchange and Public Safety Center projects to determine if progress can be made on the open issues.

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9 Ayes (4): Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
Absent (1): Council Member Marx
CARRIED (4 to 0)

8. LIAISON REPORTS AND COMMUNICATIONS
No reports.

9. ADJOURNMENT
The meeting was adjourned at 11:19 p.m. The next Regular City Council Meeting is scheduled for August 16, 2022 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. The Regular Meeting of August 2, 2022 will be cancelled, as approved on November 2, 2021 during the Council's annual calendar review.

APPROVED BY COUNCIL: XX/XX/2022

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1 Council Minutes
July 26, 2022, 11:30 a.m.

Council Hearing Room, 990 Palm Street, San Luis Obispo
Council Members

Present:

Council Member Jan Marx, Council Member Michelle
Shoresman, Mayor Erica A. Stewart
Council Members

Absent:

Council Member Andy Pease, Vice Mayor Carlyn Christianson City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CALL TO ORDER
A Special Closed Session Meeting of the San Luis Obispo City Council was called to order on July 26, 2022 at 11:35 a.m. at in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA ONLY
Public Comment:

None
--End of Public Comment--

3. CLOSED SESSION ITEM

3.a THREAT TO PUBLIC SERVICES OR FACILITIES
ACTION: City Attorney Christine Dietrick indicated that there was no reportable action.

4. ADJOURNMENT
The meeting was adjourned at 12:46 p.m. The next Regular Meeting of the City Council will be held on August 16, 2022 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/2022

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Item 6c
Department: Community Development
Cost Center: 4003
For Agenda of: 8/16/2022
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Senior Planner
SUBJECT: ADOPTION OF AN ORDINANCE REPEALING AND REPLACING THE CITY OF SAN LUIS OBISPO’S MUNICIPAL CODE CHAPTER 17.138 (INCLUSIONARY HOUSING REQUIREMENTS) TO UPDATE
REGULATIONS FOR CONSISTENCY WITH THE 6TH CYCLE HOUSING
ELEMENT, AMEND TITLE 4 OF THE CITY OF SAN LUI

RECOMMENDATION

1. Adopt Ordinance No. 1719 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving an update to the City’s Inclusionary Housing Ordinance of the Municipal Code (Chapter 17.138) with an exemption from Environmental Review (CEQA)”; and

2. Adopt Ordinance No. 1720 (2022 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 4 of the City of San Luis Obispo Municipal Code to add Chapter 4.60 to establish a Commercial Linkage Fee with an exemption from Environmental Review (CEQA)”.

POLICY CONTEXT
As discussed in the Council Agenda Report dated July 19, 2022, the project is consistent with the policies and programs outlined in the 6
th Cycle Housing Element (adopted by
Council on November 17, 2020) and supports the Major City Goal for Housing and Homelessness.

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Item 6c

DISCUSSION
On July 19, 2022, the City Council voted 4 - 1 to introduce Ordinance No. 1719 (2022 Series) (Attachment A), which repeals and replaces Municipal Code Title 17 Chapter

17.138 and Ordinance No. 1720 (2022 Series) (Attachment B), which amends Municipal Code Title 4 and adds Chapter 4.60.

Ordinance No. 1719 reflects the further amendments made at the meeting and are highlighted below.

1. JADUs Exemption: As the Council majority directed, the Ordinance has been amended to include exemptions of JADUs and reads as follows:

17.138.020 – Applicability and Exclusions

2. The addition or inclusion of Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs) associated with an existing or proposed residential or mixed-use development;

2. Fractional Numbers: As the Council majority directed the Ordinance has been amended to allow all projects that result in a fractional unit to pay in-lieu fee for the fractional unit, provide an affordable unit, or a mix of the two and reads as follows.

17.138.080 – Procedures
A. Fractional Numbers. In determining the number of dwellings that are required to be built pursuant to Section 17.138.040.B, if the number of required inclusionary dwellings results in a fractional unit, an applicant may pay the in-lieu fee for the fractional unit or provide an additional affordable unit in the project (based on the unit affordability for the type of project). The In-lieu fee for fractional units shall be calculated as described in Table 8-1 (Fractional Inclusionary Requirement Scenarios):

Table 8-1: Fractional Inclusionary Requirement Scenarios Example
Project:
25 Units (i.e.
1,000 sq. ft. per
unit)
Inclusionary
Housing
Requirement
Option 1 Option 2 Option 3
For-Sale (10%)1 2.5 units1
2 Moderate
1 Low
Pay in-lieu
fee3
1 Moderate
1 Low
Pay fractional
in-lieu fee4
For-Rent (6%)2 1.5 units2
1 Low
1 Very-low
Pay in-lieu
fee3
1 Low
Pay fractional
in-lieu fee4

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Item 6c
Notes

1. Five percent for low-income households (rounded down to the next whole number) and five percent for moderate-income households (rounded up).

2. Three percent for very low-income households (rounded down) and three percent for low-income households (rounded up).

3. In-lieu fee is calculated by the habitable area of the project multiplied by the in-lieu fee as established by the City’s Comprehensive Fee Schedule.

4. Fractional in-lieu fee amount is calculated by the remaining factional inclusionary requirement (i.e. 0.5) multiplied by the in-lieu fee cost per square foot, and then multiplied by the habitable area of the project (excluding the area of any inclusionary units that are provided in the project). [For-Sale Example: (0.5 x In-lieu fee) x 23,000 sq. ft. = Fractional In-lieu fee amount]
Background
The City Council has tasked the Community Development Department with updating the Inclusionary Housing Ordinance (IHO) as part of the 2021-23 Major City Goal work program to increase the production of affordable housing. The IHO requires a specified percentage of deed restricted, moderate- and lower-income housing units to be provided in new residential developments and establishes a commercial linkage fee so that commercial development can contribute to addressing the related housing demand.

The City is required to accommodate 3,354 residential units as a part of its 6th Cycle Regional Housing Needs Allocation (RHNA). By 2021, the City met 100 percent of its total allocation for “Above Moderate” housing units (1,411 units), but only has met 11 percent (208 units) of the total number of needed affordable units. The housing market is not producing housing that is affordable to moderate- and lower-income households, and as a result, the City’s IHO is being updated to increase affordable housing in the community to help achieve quantified objectives related to affordable housing.

Previous Council or Advisory Body Action
April 21, 2020: City Council Nexus Study Overview (Meeting Minutes) March 1, 2022: City Council Study Session (Meeting Minutes) June 8, 2022: Planning Commission (Meeting Minutes)
July 19, 2022: City Council (Action Update)
Public Engagement
The City conducted a thorough engagement process, consistent with the currently adopted Public Engagement Manual, that began in 2020 with the presentation of the Nexus Study and continued with the 6th Cycle Housing Element update, the Feasibility Analysis in 2021 and the release of the draft IHO in May 2022. Details of the various presentations and outreach events are provided in the July 19, 2022 Staff Report.

Summaries of the Ordinances were prepared and published in the New Times, a local newspaper, five days prior to the second reading. The amendment will become effective thirty (30) days after final passage of the Ordinance.

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Item 6c

CONCURRENCE
Staff from the Housing and Homelessness Division of Community Development concur with the proposed changes to the Inclusionary Housing Ordinance.

ENVIRONMENTAL REVIEW
The proposed amendments to the Municipal Code Title have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the state CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed actions will have no possibility of a significant effect on the environment and will not cause impacts as all projects subject to the Inclusionary Housing Ordinance will be required to comply with all relevant City standards, codes, and regulations, including environmental review.

FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $ $ $
State
Federal
Fees
Other:

Total $ $ $ $
The implementation of Housing Element Programs was adopted as a part of the 2021 - 2023 Financial Plan. Funding was provided as a part of the Community Development Department budget appropriation for staff resources to implement Housing Element programs such as Program 2.13.

The City’s applicable fee schedule will be updated according to City Council action and incorporate the fees as approved.

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Item 6c

ALTERNATIVES
Modify the proposed ordinance. The City Council may make minor, non-substantive changes to the proposed Ordinance for the staff to incorporate in the final documents.

Any material changed to the Final Ordinance would require further review by staff and the Planning Commission followed by re-introduction of the Ordinance by the Council.

ATTACHMENTS
A - Ordinance No. 1719 (2022 Series)
B - Ordinance No. 1720 (2022 Series)

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O 1719
ORDINANCE NO. 1719 (2022 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN UPDATE TO THE CITY’S

INCLUSIONARY HOUSING ORDINANCE OF THE MUNICIPAL CODE
(CHAPTER 17.138) WITH AN EXEMPTION FROM ENVIRONMENTAL

REVIEW (CEQA)
WHEREAS, on January 5,1999, The City adopted its first Inclusionary Housing Ordinance contained in Ordinance No. 1346; and
WHEREAS, on June 13, 2007, and update was made to the Inclusionary Housing Ordinance regarding resident selection process for inclusionary housing contained in Ordinance No. 1508; and
WHEREAS, a Nexus Study was reviewed by Council on April 21,2020 to determine the feasibility of increasing the required amount of affordable housing in housing projects and implementing that into the City’s Inclusionary Housing Ordinance; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a webbased public hearing via teleconference on November 17, 2020, for the purpose of final adoption of the sixth cycle update to the General Plan Housing Element that included Program 2.13 that states, “Update the Inclusionary Housing Ordinance, including Table 2A, based on findings and recommendations in the 2020 Affordable Housing Nexus Study and conduct further feasibility analysis in order to evaluate the City’s ability to provide affordable housing in the proportions shown in the Regional Housing Needs Allocation, per Policy 2.4”; and
WHEREAS, in April 2021, the City hired Economic & Planning Systems, Inc. (EPS) to conduct a feasibility analysis based on the findings and recommendations included in the Nexus Study and current market information and provide preliminary recommendations for updates to the City’s existing Inclusionary Housing Ordinance; and WHEREAS, the State of California Office of Housing and Community Development, on September 3, 2021, certified the City of San Luis Obispo’s 6th Cycle General Plan Housing Element as in full compliance with State Law; and WHEREAS, a Study Session was held by City Council on March 1, 2022, to review the preliminary recommendations of the feasibility analysis; and WHEREAS, on May 11, 2022, the City published a draft of the proposed amendments to Municipal Code Chapter 17.138 for public review; and

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Ordinance No. 1719 (2022 Series) Page 2
O 1719
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on June 8, 2022, for the purpose of recommending amendments to implement programs of the 6th Cycle Housing Element by updating the Inclusionary Housing Ordinance; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on July 19, 2022, for the purpose of introducing an ordinance to repeal and replace Chapter 17.138 (Inclusionary Housing Requirements); and WHEREAS, notices of said public hearing were made at the time and in the manner required by law.

WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing.

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:

1. The proposed amendments to Title 17 of the Municipal Code are consistent with the 6th Cycle Housing Element Program 2.13 which states, “Update the Inclusionary Housing Ordinance, including Table 2A, based on findings and recommendations in the 2020 Affordable Housing Nexus Study and conduct further feasibility analysis in order to evaluate the City’s ability to provide affordable housing in the proportions shown in the Regional Housing Needs Allocation, per Policy 2.4.”

2. The proposed amendments to Title 17 of the Municipal Code are consistent with the 6th Cycle Housing Element Program 4.6 which states, “Amend the City’s Inclusionary Housing Ordinance to require that affordable units in a development be of similar size, number of bedrooms, character and basic quality as the non-restricted units in locations that avoid segregation of such units, including equivalent ways to satisfy the requirement. Also evaluate adjusting the City’s allowable sales prices for deed-restricted affordable units per a variety of unit types.”

3. The repeal and replacement of Chapter 17.138 of the Municipal Code for qualifying development projects will not alter the character of the City or cause health safety or welfare concerns because the amendment is consistent with the General Plan and directly implements City goals and policies.

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SECTION 2. Environmental Determination. The proposed amendments to the Municipal Code Title have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the state CEQA Guidelines, and the environmental regulations of the City. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed actions will have no possibility of a significant effect on the environment and will not cause impacts. In this case, the proposed repeal and replacement of the Inclusionary Housing Ordinance is consistent with State Law and the City’s 6th Cycle Housing Element and will not have an significant effect and project specific environmental review will be required.

SECTION 3. Action. The City Council hereby repeals and replaces, in its entirety, Chapter 17.138, entitled “Inclusionary Housing Requirements”, of the San Luis Obispo Municipal Code as set forth and incorporated herein (existing tables labeled Table 8-1 through Table 8-5 as referenced in Article 8 of Title 17, shall be relabeled as Table 8-2 through Table 8-6, respectfully).

Chapter 17.138: Inclusionary Housing Requirements
Sections:

17.138.010 – Purpose

17.138.020 – Applicability and Exclusions

17.138.030 – Definitions

17.138.040 – Inclusionary Housing Requirements

17.138.050 – Standards for Inclusionary Units

17.138.060 – In-Lieu Housing Fee

17.138.070 – Inclusionary Housing Proposal

17.138.080 – Procedures

17.138.090 – Eligibility Requirements

17.138.100 – Shared Equity Purchase Program

17.138.110 – Administration, Management, and Monitoring

17.138.120 – Enforcement

17.138.010 – Purpose
The purpose and intent of this Chapter are: 1) to promote the public welfare by increasing the production and availability of affordable housing units; 2) to establish an inclusionary housing requirement which implements General Plan policies guiding land use and housing development; and 3) to ensure that affordable housing units established pursuant to the provisions of this Chapter are located in a manner that provides for their integration with market rate units.

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17.138.020 – Applicability and Exclusions
A. This Chapter shall apply to all residential development projects, except the following types of residential development projects are exempt:

1. Residential additions, repairs, or remodels, provided that such work does not increase the number of existing dwellings;

2. The addition or inclusion of Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs) associated with an existing or proposed residential or mixed-use development;

3. Affordable housing projects in which 100 percent of the dwellings to be built will be sold or rented in conformance with the City’s Affordable Housing Standards (excluding any on-site manager unit);

4. Housing projects that include a density bonus.

5. Emergency projects or projects which the Council determines are necessary to protect public health and safety;

6. Development projects which the Director determines are essentially noncommercial or nonresidential in nature, which provide educational, social, or related services to the community and which are proposed by public agencies, nonprofit agencies, foundations, and other similar organizations;

7. Projects which replace or restore a structure damaged or destroyed by fire, flood, earthquake, or other disaster within three years prior to the application for the new structure(s) (see Chapter 17.92 Nonconforming Structure);

17.138.030 – Definitions
For the purposes of this Chapter, the following words and phrases shall have the meaning set forth below. For all other definitions, the provisions of Article 9 (Definitions) of this Title shall apply.

A. “Administrator” means Below Market Rate Program Administrator which may either be the City itself or a third-party administrator acting as an agent for the City in connection with all aspects of the operation of the City's Below Market Rate program pursuant to an Agreement entered into between the City and the Administrator, as such agreement may be amended or replaced from time to time.

B. “Affordable” means housing which can be purchased or rented by a household with very low-, low-, or moderate- income, as described in the City’s affordable housing standards.

C. “Below Market Rate (BMR)” means that the affordability level of an inclusionary unit is below the cost of what a current market rate unit would be and is affordable to extremely low-, very low-, low-, or moderate-income households.

D. “Borrower” shall be defined as one who meets the eligibility requirements for purchasing an inclusionary affordable unit.

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E. “Commercial Linkage Fee” means the fee paid by the applicant of commercial development projects to mitigate the impacts that such developments have on the demand for affordable housing in the City (see Municipal Code Chapter 4.60).

F. “Density bonus” means a density increase over the maximum density otherwise allowable under the Zoning Regulations, Chapter 17.140.

G. “Early resale” shall mean the sale, lease, or transfer of property within seven years of the initial close of escrow for Equity Share Inclusionary Units.

H. “Equity Share” shall mean the shared equity of appreciation between the City and the Borrower on inclusionary units when agreements specifically allow for affordable units to be sold at market-rate after a 7-year period.

I. “Fee Schedule” means fees that for-sale and for-rent units are subject to and are paid to either the City or the Administrator for associated costs related to but not limited to eligibility screening, income verification, marketing of affordable units, and the close of escrow or completion of new lease agreements for affordable units.

J. “Inclusionary housing unit” means a dwelling unit required under the provisions of this Chapter, and which meets the City’s affordable housing standards.

K. “Low-” or “lower-income households” shall have the meaning set forth in Health and Safety Code Section 50079.5; provided the income of such persons and families shall not exceed 80 percent of the median income within the City as published and periodically updated by the State Department of Housing and Community Development.

L. “Market rate” shall mean the highest price a willing buyer would pay and a willing seller would accept, both being fully informed and in an open market, as determined by an appraiser.

M. “Moderate-income households” shall have the meaning set forth in Health and Safety Code Section 50079.5; provided the income of such persons and families exceed 80 percent but are less than or equal to 120 percent of the median income within the City as published and periodically updated by the State Department of Housing and Community Development.

N. “Commercial development project” shall mean development projects which result in the construction or conversion of structures for the purpose of conducting business, including but not limited to retail sales, restaurants, offices, gas stations, manufacturing, etc.

O. “Residential development project” shall mean development projects which result in the construction or conversion of structures, including, but not limited to, single-unit attached or detached homes, apartments, condominiums, live/work units, mixeduse, mobile homes, transitional housing or supportive housing, and group housing.

P. “Very low-income” shall have the meaning set forth in Health and Safety Code Section 50079.5; provided the income of such persons and families shall not exceed 50 percent of the median income within the City as published and periodically updated by the State Department of Housing and Community Development.

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17.138.040 – Inclusionary Housing Requirements
A. General Requirements. All non-exempt residential development projects shall include inclusionary units as required by this chapter. If the calculated number of units results in a fraction, the number shall be rounded as described in Section

17.138.080(A).

1. Construct the required number of inclusionary units for Residential or Mixed-Use projects;

2. Pay an in-lieu fee for Residential or Mixed-Use projects; or

3. Pay a commercial linkage fee (see Municipal Code Chapter 4.60) for new NonResidential or Non-Residential portions of Mixed-Use project(s).

B. Residential Requirements

1. Ownership Dwelling Units. Ten (10) percent of the dwelling units (see Section

17.138.080.A) shall be made available for sale to eligible households with five (5) percent for low-income households (fractional units may be rounded down to the next whole number) and five (5) percent for moderate-income households (fractional units may be rounded up to the next whole number). See Section

17.138.080.A for more information regarding fractional numbers.

2. Rental Dwelling Units. Six (6) percent of the dwelling units (see Section

17.138.080.A: Fractional Numbers) shall be made available for rent to eligible households with three (3) percent for very low-income households (fractional units may be rounded down to the next whole number) and three (3) percent for low-income households (fractional units may be rounded up to the next whole number).

3. In-Lieu Housing Fees. An applicant may pay in-lieu fees to the City rather than construct inclusionary units on site for residential projects (see Section

17.138.060: In-Lieu Housing Fee).

C. Non-Residential Requirements

1. Commercial, Office, Service, Hotel, Retail, Industrial, and Institutional Uses. An applicant shall pay a commercial linkage fee based on the gross square footage of the non-residential space in accordance with Municipal Code Chapter 4.60.

D. Mixed-Use Development Requirements

1. Dwelling Units & Commercial Space. For mixed-use development, the inclusionary housing requirement is determined in accordance with subsection B of this Section for all dwelling units in addition to subsection C of this Section for all new commercial square footage within the development project. For example, a for-rent mixed-use project includes twenty (20) residential units and 5,000 square feet of commercial space: the inclusionary requirement would be two (2) affordable units (20 x 6% = 1.2 rounded to 2) and a commercial linkage fee would be applied to the 5,000 square feet of commercial space.

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17.138.050 – Standards for Inclusionary Units
A. Standards. Inclusionary units must meet the following standards:

1. Inclusionary units shall be dispersed throughout the residential development projects to prevent a concentration of affordable units within the development project.

2. Inclusionary units shall be consistent with the design of market rate units in terms of exterior appearance, materials, and finished quality.

3. The applicant may reduce square footage of inclusionary units as compared to the market rate units as long as the minimum square footage of the affordable units are no less than seventy-five percent of the average size of all market rate units in the residential development project with the same bedroom count. For the purpose of this subsection, the “average size” of a unit with a certain bedroom count equals the total square footage of all market rate units with that bedroom count in the residential development project divided by the total number of market rate units with the same bedroom count in the residential development project.

4. For residential development projects with multiple market rate unit types containing differing numbers of bedrooms, inclusionary units shall be representative of the market rate unit mix. For example, a for sale, residential project includes fifty (50) dwelling units; ten (10) three-bedroom units, twenty (20) two-bedroom units, and twenty (20) one-bedroom units. To represent the units within the residential project, the five (5) required inclusionary units would be one (1) three-bedroom, two (2) two-bedrooms and two (2) one-bedrooms.

5. The required inclusionary units shall be constructed concurrently with market rate units, unless an alternative development schedule is otherwise stipulated by the applicable Review Authority of the residential development project.

6. Inclusionary units shall be subject to the City’s and/or the Administrator’s Fee Schedule in accordance with Section 17.138.110.

17.138.060 – In-Lieu Housing Fee
A. Payment of In-Lieu Fee. The developer may, at their discretion, choose to pay a fee, as established by a resolution of the City Council, to the City in lieu of constructing affordable units to meet their inclusionary housing requirement.

B. In-Lieu Fee Calculation. In-lieu fees shall be calculated using the new, habitable square footage, as defined by California Building Code, included within the residential development project.

C. Affordable Housing Fund. All in-lieu fees collected shall be deposited into the Affordable Housing Fund. The fund shall be administered by the Finance Director and shall be used exclusively to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the Council.

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D. Timing. In-lieu fees shall be paid prior to building permit issuance. For projects constructed in phases, in-lieu fees shall be paid in the proportion that the phase bears to the overall project.

17.138.070 – Inclusionary Housing Plan
A. Application Requirements. An applicant proposing a project for which inclusionary housing is required shall submit a statement with their planning application or building permit (whichever applies), describing the project’s inclusionary housing plan. The statement shall include:

1. A project description that includes details regarding the proposed residential development project such as, but not limited to total number of dwelling units, number of bedrooms per dwelling unit, square footage of all units (both residential and commercial), type of project (rental or ownership), etc.;

2. A description of the inclusionary housing plan for each construction phase, including the method chosen to meet the inclusionary housing requirement and including all of the following information including but not limited to:
a. Whether the unit is for sale or rental;
b. The number, location, unit type, tenure, number of bedrooms and baths, floor plan, construction schedule of all inclusionary units;
c. Preliminary calculation of in-lieu fees or commercial linkage fee as applicable;
d. Other information which the Director determines necessary to adequately evaluate the proposal.

Table 8-1: Fractional Inclusionary Requirement Scenarios Example
Project:
25 Units (i.e.
1,000 sq. ft. per
unit)
Inclusionary
Housing
Requirement
Option 1 Option 2 Option 3

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Ordinance No. 1719 (2022 Series) Page 9
O 1719
For-Sale (10%)1 2.5 units1 2 Moderate
1 Low
Pay in-lieu
fee3
1 Moderate
1 Low
Pay fractional
in-lieu fee4
For-Rent (6%)2 1.5 units2 1 Low
1 Very-low
Pay in-lieu
fee3
1 Low
Pay fractional
in-lieu fee4
Notes

1. Five percent for low-income households (rounded down to the next whole number) and five percent for moderate-income households (rounded up).

2. Three percent for very low-income households (rounded down) and three percent for low-income households (rounded up).

3. In-lieu fee is calculated by the habitable area of the project multiplied by the in-lieu fee as established by the City’s Comprehensive Fee Schedule.

1. Submittal of an Affordable Housing Agreement. Applicants of residential development projects subject to this Chapter shall submit an affordable housing agreement on forms provided by the City and pay a processing and recordation fee.

2. Timing. All building permits for inclusionary units in a residential development project shall be issued concurrently with, or prior to, issuance of building permits for the market rate units.

3. Construction Schedule. The inclusionary units shall be constructed concurrently with, or prior to, construction of the market rate units, unless otherwise stipulated by the applicable Review Authority of the residential development project. Occupancy permits and final inspections for inclusionary units in a residential development shall be approved concurrently with, or prior to, approval of occupancy permits and final inspections for the market rate units.

4. Review and Approval. The draft agreement shall be reviewed by the Director and City Attorney for compliance with project approvals, City policies and standards, and applicable codes. Following approval and signing of the agreement by the parties, the final agreement shall be recorded, and relevant terms and conditions shall be recorded as a deed restriction on those lots or affordable units subject to affordability requirements. The affordable housing agreement shall be binding to all future owners and successors in interest.

5. Term. The affordable housing agreement shall ensure that affordability is maintained for the longest period allowed or required by State law, but not less than 45 years for ownership and 55 years for rental.

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6. Exemption for In-Lieu Fee Payment. An affordable housing agreement shall not be required for projects which meet their inclusionary housing requirement through the payment of in-lieu fees.

17.138.090 – Eligibility Requirements
A. Program Requirement. Only households qualifying as extremely low-, very low-, low, or moderate income, pursuant to the affordable housing standards, shall be eligible to rent, purchase, or occupy inclusionary units developed or funded in compliance with this requirement. For-sale inclusionary housing units shall be owner-occupied for the term of the affordable housing agreement.

B. Eligibility Screening. The City or an Administrator designated by the City shall screen prospective renters or buyers of affordable units. Buyers of affordable units shall enter into an agreement with the City. Occupants must be selected by means of an open, public process which ensures that individuals of a group of interested participants are selected in accordance with the City’s BMR Ownership and Rental Housing Guidelines. Private selection of individuals by project owners is not permitted for any affordable units.

17.138.100 – Shared Equity Purchase Program
When a residential development project includes affordable housing units for sale in excess of the inclusionary housing requirement for the project, the additional units may be offered under the Shared Equity Purchase Program.

A. Under this program, the qualified buyer of a designated affordable dwelling unit shall enter into a shared equity agreement with the City. Said agreement shall be recorded as a lien against the purchased property, at no interest, securing and stating the City’s equity share in the property. The City’s equity share shall be calculated by the Director, and shall be the decimal percentage of the property’s value resulting from:

1. The difference between the property’s market value and the actual price paid by the homeowner, divided by the market value; and/or, when applicable

2. The amount of subsidy provided by the City to the homeowner to purchase the property, divided by the
property’s market value.

B. Upon sale, the City’s equity share shall be repaid to the City from the proceeds of the sale, less the City’s percentage share of title insurance, escrow fees, and documentary transfer taxes, at the close of escrow. The proceeds from the sale shall be deposited into the City’s Affordable Housing Fund and shall be used for the purposes set forth in Health and Safety Code § 33334.2(e).

C. In the event of “early resale,” owners of properties subject to the Shared Equity Purchase Program shall either: (1) pay an equity recapture fee to the City as described in the schedule below, in addition to the City’s equity share, or (2) sell the property to another eligible household.

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If the owner chooses to pay the equity recapture fee, the recapture fee shall be paid to the City upon resale at close of escrow, based on the following schedule:

Table 8-1: Percent of Equity Build-up Recaptured
Year % of Equity Build-up Recaptured
0 – 3 100%
4 75% + City’s Equity Share
5 50% + City’s Equity Share
6 25% + City’s Equity Share
7 and after 0% + City’s Equity Share
The recapture amount shall be determined prior to the calculation of escrow closing costs.

17.138.110 – Administration, Management, and Monitoring Inclusionary rental and owner units shall be managed and operated by the property owner, or the owner’s agent, for the term of the affordable housing agreement. Sufficient documentation shall be submitted to ensure compliance with this Chapter, to the satisfaction of the Director.

A. Duties of Program Administrator. The City may either handle in-house or contract for administration of the BMR Ownership Housing Program and monitoring compliance with the requirements of this Chapter to a program Administrator pursuant to an agreement executed between the City and the Administrator in accordance with the approved fee schedule. At a minimum, the Administrator shall perform the following services:

1. Maintain and administer the City’s BMR Ownership and Rental Housing Guidelines and Affordable Housing Standards.

2. Screen and select qualified buyers and renters according to the City’s Ownership and Rental Housing Guidelines and Affordable Housing Standards and maintain qualified owner and renter eligibility list;

3. Maintain a list of eligible mortgage lenders for financing the purchase of inclusionary units in accordance with the BMR Ownership Housing Guidelines;

4. Market new and vacant BMR for-sale and rental units within the City’s affordable housing inventory.

5. Monitoring compliance with terms and conditions of the occupancy and sale restrictions;

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17.138.120 – Enforcement
A. Enforcement. No building permit shall be issued, nor shall any other development entitlement be granted for a residential development project subject to this Chapter that does not meet these requirements. No inclusionary unit shall be rented or sold except in accordance with these requirements and the affordable housing standards.

SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. The Ordinance shall be effective thirty (30) days after its final passage.

INTRODUCED on the 19th day of July 2022, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ________, 2022, on the following vote:

AYES:

NOES:

ABSENT:
__________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. __________________________
Teresa Purrington, City Clerk

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O 1720
ORDINANCE NO. 1720 (2022 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING AMEND TITLE 4 OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE TO ADD CHAPTER 4.60 TO

ESTABLISH A COMMERCIAL LINKAGE FEE WITH AN EXEMPTION

FROM ENVIRONMENTAL REVIEW (CEQA)
WHEREAS, the City of San Luis Obispo (“City”) aims to provide sufficient levels of affordable housing for its residents; and
WHEREAS, development of new commercial projects encourages new residents to move to the City, and some of the employees needed to meet the needs of new commercial development earn incomes only adequate to pay for affordable housing; and WHEREAS, because there is a need for additional affordable housing within the City, these employees might otherwise be forced to live in less-than-adequate housing within the City, pay a disproportionate share of their incomes to live in adequate housing within the City, or commute ever-increasing distances to their jobs from housing located outside of the City, thereby harming the City’s ability to attain goals articulated in the City’s General Plan; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a webbased public hearing via teleconference on November 17, 2020, for the purpose of final adoption of the sixth cycle update to the General Plan Housing Element that included Program 2.13, which provides, “Update the Inclusionary Housing Ordinance, including Table 2A, based on findings and recommendations in the 2020 Affordable Housing Nexus Study and conduct further feasibility analysis in order to evaluate the City’s ability to provide affordable housing in the proportions shown in the Regional Housing Needs Allocation, per Policy 2.4”; and
WHEREAS, on April 21, 2020, City Council reviewed a Nexus Study prepared by David Paul Rosen and Associates (DRA) which confirmed that both market-rate residential and commercial development are creating demand for affordable housing that is not being met by the current housing market; and
WHEREAS, pursuant to Government Code Section 66001, the Nexus Study establishes that there is a reasonable relationship between the commercial linkage fees and the commercial development on which it is imposed and between the need for affordable housing and the commercial development projects against which the fee is charged; and
WHEREAS, in April 2021, the City hired Economic & Planning Systems, Inc. (EPS) to conduct a feasibility analysis of the City’s inclusionary housing requirements based on the findings and recommendations included in the Nexus Study; and

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Ordinance No. 1720 (2022 Series) Page 2
O 1720
WHEREAS, the City may adopt and impose commercial linkage fees to mitigate the impact of commercial development projects on available affordable housing in the City under the authority of Sections 66000 et seq. of the California Government Code (“Mitigation Fee Act”); and
WHEREAS, the commercial linkage fees will be placed in the City’s Affordable Housing Fund and the fees will be used solely to increase the supply of housing affordable to extremely low, very low, low, and moderate-income residents; and WHEREAS, the State of California Office of Housing and Community Development, on September 3, 2021, certified the City of San Luis Obispo’s 6th Cycle General Plan Housing Element as in full compliance with State Law; and WHEREAS, a Study Session was held by City Council on March 1, 2022, to review staff’s recommended amendments to Chapter 17.138, that were derived from the Nexus Study and the EPS financial analysis; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on July 19, 2022, for the purpose of introducing an ordinance to implement commercial linkage fees; and
WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff.

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following finding:

1. All recitals are true and correct and are incorporated herein by reference.

2. The proposed amendments to Title 4 are also consistent with the 6th Cycle Housing Element and implements program 2.13.

SECTION 2. Environmental Determination. The proposed amendments to the Municipal Code Title have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the state CEQA Guidelines, and the environmental regulations of the City. Specifically, approval of fees and/or charges is not a “project” for the purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4); and even if considered a “project” under CEQA, would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed ordinance will have no possibility of a significant effect on the environment and will not cause impacts.

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Ordinance No. 1720 (2022 Series) Page 3
O 1720
SECTION 3. Action. The City Council hereby adds Chapter 4.60, entitled “Commercial Linkage Fees”, to the San Luis Obispo Municipal Code as set forth and incorporated herein.

Chapter 4.60: Commercial Linkage Fees
Sections:

4.60.010 – Purpose.

4.60-020 – Definitions.

4.60.030 – Fees to be set by resolution.

4.60.040 – Payment of fees.

4.60.050 – Exemptions.

4.60.060 – Disposition and use of fees.

5.60.070 - Enforcement

4.60.010 – Purpose
A. Encourage the development and availability of housing affordable to a broad range of households with varying income levels within the city as mandated by State law, California Government Code Section 65580 and following.

B. Offset the demand for affordable housing that is created by new development and mitigate environmental and other impacts that accompany new commercial development by protecting the economic diversity of the City’s housing stock; reducing traffic, transit and related air quality impacts by allowing more residents to live near their workplace; promoting jobs/housing balance; and reducing the demands placed on transportation infrastructure in the region.

C. Promote the City’s policy to provide an adequate number of affordable housing units to the City’s housing stock in proportion to the existing or projected need in the community, as identified by the Housing Element.

D. Support the Housing Element goal of assisting in the development of new housing that is affordable at all income levels and the policies and actions that support this goal.

E. Encourage the production of the very low, low, and moderate income units planned for in the Housing Element of the General Plan.

4.60.020 - Definitions
For the purposes of this Chapter, the following words and phrases shall have the meaning set forth below.

A. “Administrator” means Below Market Rate Program Administrator which may either be the City itself or a third party administrator acting as an agent for the City in connection with all aspects of the operation of the City's Below Market Rate program pursuant to an Agreement entered into between the City and the Administrator, as such agreement may be amended or replaced from time to time.

B. “Affordable housing agreement” means a written agreement between a builder and the City as provided by Section 17.138.080.B.

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Ordinance No. 1720 (2022 Series) Page 4
O 1720
C. “Below Market Rate (BMR)” means that the affordability level of an inclusionary unit is below the cost of what a current market rate unit would be and is affordable to extremely low-, very low-, low-, or moderate-income households.

D. “Commercial development project” shall mean development projects which result in the subdivision of land and/or the construction or conversion of structures for the purpose of conducting business, including but not limited to hotels, retail sales, restaurants, offices, gas stations, research and development uses and manufacturing.

E. “Commercial linkage fee” means the fee paid by applicant of commercial development projects to mitigate the impacts that such developments have on the demand for affordable housing in the City.

F. “First approval” means the first discretionary approval to occur with respect to a commercial development project or, for commercial projects not requiring a discretionary approval, the issuance of a building permit.

G. “Inclusionary housing plan” means a plan for a residential development project submitted by an applicant as provided by Section 17.138.070.

H. “Planning permit” means any discretionary approval of a residential or mixed use project, including but not limited to a comprehensive or specific plan adoption or amendment, rezoning, tentative map, parcel map, conditional use permit, variances, or architectural review.

4.60.030 – Fees to be Set by Resolution
The amount of commercial linkage fee imposed on applicants of commercial development projects shall be determined by resolution adopted by the City Council and may be adjusted annually by the percentage change in the Consumer Price Index for all Urban Consumers (CPI-U) Los Angeles area. Commercial linkage fees shall not exceed the cost of mitigating the impact of the commercial development projects on the availability of affordable housing in the city.

4.60.040 – Payment of Fees
A. A commercial linkage shall be applied to commercial development projects involving new construction and additional gross square footage to existing commercial buildings. If a development is exempt from the fee at initial construction, but later converts to a commercial development project, the converted square footage will be subject to the fee.

B. Any commercial linkage fee shall be paid in full prior to the issuance of the first building permit for the commercial development project subject to the fee or at a time otherwise specified by Council Resolution. If no building permit is required, the fee shall be paid before a conversion of use may take place. The fee shall be calculated based on the fee schedule in effect at the time the building permit is issued as adopted by the City Council.

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Ordinance No. 1720 (2022 Series) Page 5
O 1720

4.60.050 – Exemptions
A. The following commercial projects are exempt from the provisions of this chapter.

1. City buildings and facilities and those public facilities entitled to an exemption under state law.

2. Schools, places of public assembly, cultural institutions, childcare facilities, nursing homes, residential care facilities, and skilled nursing facilities.

3. Projects which replace or restore a structure damaged or destroyed by fire, flood, earthquake, or other disaster within three years prior to the application for the new structure(s) (see Chapter 17.92 Nonconforming Structure).

4.60.060 – Disposition and Use of Fees
Commercial linkage fees collected shall be deposited into the Affordable Housing Fund.

The fund shall be administered by the Finance Director and shall be used exclusively to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the Council.

4.60.070 – Enforcement
A. Payment of the commercial linkage fee is the obligation of the builder of a commercial development project. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance herewith, including, but not limited to, actions to revoke, deny, or suspend any permit or development approval.

B. The City Attorney and Community Development Director shall be authorized to enforce the provisions of this chapter and all affordable housing agreements, regulatory agreements, by civil action and any other proceeding or method permitted by law.

C. Failure of any official or agency to fulfill the requirements of this chapter shall not excuse any builder or owner from the requirements of this chapter. No permit, license, map, or other approval or entitlement for a commercial development project shall be issued, including without limitation a final inspection or certificate of occupancy, until all applicable requirements of this chapter have been satisfied.

D. The remedies provided for in this chapter shall be cumulative and not exclusive and shall not preclude the City from any other remedy or relieve to which it otherwise would be entitled under law or equity.

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Ordinance No. 1720 (2022 Series) Page 6
O 1720
SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. The Ordinance shall be effective thirty (30) days after its final passage.

INTRODUCED on the 19th day of July 2022, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ________, 2022, on the following vote:

AYES:

NOES:

ABSENT:
__________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington,
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. __________________________
Teresa Purrington,
City Clerk

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Item 6d
Department: Utilities
Cost Center: 6101
For Agenda of: 8/16/2022
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Chris Lehman, Utilities Deputy Director - Wastewater Miguel Barcenas, Utilities Deputy Director - Engineering and Planning Shawna Scott, Utilities Special Projects Manager
SUBJECT: AUTHORIZE ADVERTISEMENT OF WASTEWATER COLLECTION

INFRASTRUCTURE RENEWAL STRATEGY REPORT AND FLOW STUDY
UPDATE

RECOMMENDATION

1. Approve the request for proposals for the Infrastructure Renewal Strategy (IRS) Report Update and associated Flow Study (Project), Specification No. 91736; and

2. Authorize staff to advertise the Project for proposals and bids; and

3. Authorize the City Manager to award the contract for the Project if the lowest responsible bid is within available project funding of $430,000; and

4. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Sewer Fund Unassigned Working Capital for preparation of the Infrastructure Renewal Strategy Report Update and associated Flow Study, Specification No. 91736” in the amount of $180,000.

POLICY CONTEXT
The Project supports Major City Goals including Economic Recovery, Resiliency, and Fiscal Sustainability and Climate Action, Open Space, and Sustainable Transportation because it will provide the analysis, data, and recommendations supporting ongoing and future investments in critical infrastructure (wastewater collection) capacity and resiliency.

The Project is consistent with the City’s adopted General Plan. Water and Wastewater Element (WWE) Policy B.2.2.2 (Service Capacity) states that “the City's wastewater collection system and Water Resource Recovery Facility shall support population and related service demands consistent with the General Plan”, and Program B.2.3.1 calls for the City to expand capacity in the collection system in support of projected wastewater flows. The Project supports this policy and program, and consistent with the WWE will provide the information and recommendations necessary to: 1) manage the collection system and ensure that flow does not exceed design capacity (Policy B.4.2.1); 2) continue, modify, and identify programs that will minimize stormwater and groundwater infiltration and inflow into the sewer system (Policy B.4.2.2); and 3) investigate and carry out cost-effective methods for reducing infiltration and inflow I/I into the collection system (Program B.4.3.1).

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Item 6d

DISCUSSION
Background
The City’s wastewater collection system is comprised of over 138 miles of gravity sewer line, 3.4 miles of force main, nine lift stations, 3,080 manholes, 800 clean outs, and various other assets. Approximately 80 percent of the system is comprised of six-inch (6”) and eight-inch (8’) pipes. The sewer lines are made of a variety of materials, including terra cotta salt glazed pipe, vitrified clay pipe (VCP), polyvinyl chloride (PVC), high density polyethylene (HDPE), steel, cast iron, and asbestos concrete. Portions of the sewer system are over 100 years old.

The collection system serves residential, commercial, and industrial uses. Sewer service is provided only to properties within the City limits with the exception of the San Luis Obispo campus of California Polytechnic State University (Cal Poly) and the County of San Luis Obispo Regional Airport. The number of service connections/laterals is estimated at approximately 12,000. In the City, the entire sewer lateral to the service connection in the street (or easement) is owned by the property owner (Municipal Code Section 13.08.395.B.

Ownership, Maintenance, and Repair).

There are nine lift stations in the City's wastewater collection system, including the Buckley Lift Station within the Avila Ranch Development, which will come online in 2022. The Prefumo and Tank Farm lift stations were installed in 2003 and 2009 respectively.

Replacement of the Laguna lift station occurred in 2013, replacement of the Margarita lift station occurred in 2019, and replacement of the Calle Joaquin lift station is currently underway. The five remaining lift stations are Smith & Loveless pre-manufactured steel structures with a dry well/wet well design put into service in the 1960s and early 1970s, all at or nearing the end of their useful service life. Replacement of each lift station is costly; having an updated Infrastructure Renewal Strategy will help guide the City’s prioritization of large capital improvement projects.

The City’s Utilities Department Wastewater Collection staff has developed a detailed database on the components of the collection system over the past 30 years. It includes detail on all gravity lines, force mains, flow basins, lift stations and their service areas. The database is utilized and updated daily by Wastewater Collection staff as part of their work (work order development/history, standardization of record-keeping, organization, communication with the public, development/prioritization of future system upgrades). This database is connected to the City’s geographic information system. The City has up-to-date documented video inspection of approximately 75 to 80 percent of the publicly-owned collection system (2013 to present).

The City’s wastewater collection system and the Water Resource Recovery Facility (WRRF) have long experienced problems associated with excessive wet weather (rain event) infiltration and inflow (I/I). Dry weather flows at the WRRF currently average 3.1 million gallons per day (MGD). Wet weather flows to the WRRF during a rain event can exceed 15 MGD, evidence of a significant I/I problem. Because all water entering the WRRF must be treated as wastewater, I/I has a significant impact on operating expenses and drives the need for capital expenditures. In addition, I/I overloads the collection system during heavy rains and can result in sewage spills.

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Item 6d
In 2009, the City retained a consultant to conduct multi-year flow monitoring, resulting in a Sanitary Sewer Flow Monitoring and Inflow / Infiltration Study (V&A, March 2012). The 2012 Study addressed lateral replacement as an integral part of reducing overall I/I in the City.

In 2016, in collaboration with a consultant, the City completed the Wastewater Collection System Infrastructure Renewal Strategy (IRS) (WSC, December 2015), which included a hydraulic model of the City’s wastewater collection system and prioritization of system improvements and replacements. The 2015 IRS report recommended lateral replacement program options for consideration by the City, noting that comprehensive rehabilitation of sewer mains and private laterals is required to address the City’s I/I problem.

Based on the results of the 2015 IRS, the City Council: 1) adopted Water and Wastewater Element amendments, including the current Capacity Constrained Areas Map in May 2018; and 2) approved the Wastewater Flow Offset Program to accommodate new or intensified development in capacity constrained areas by replacing laterals in poor condition in September 2019. Capacity constrained areas are areas where the existing sewer system infrastructure cannot accommodate additional wastewater flow due to I/I during peak wet weather events. The Council’s approval included associated Municipal Code amendments (Section 13.08.396, Wastewater Flow Offset). Since adoption of the Wastewater Flow Offset Program, approximately 300 private sewer laterals have been replaced. In addition, the results of the 2015 IRS informed necessary improvements to support build-out of the City’s General Plan, including Downtown projects and expansion and special focus areas such as Avila Ranch, San Luis Ranch, Froom Ranch, and the Orcutt Area.

Project
Periodic updates of the flow study and IRS are necessary to support continued development and address capacity constrained areas within the City. The analysis and recommendations provide the data to guide capital improvement projects and maintenance of existing infrastructure and provide a clear nexus for the City to require wastewater infrastructure improvements in association with approved subdivision and development projects. The updated flow study will include analysis of existing system conditions, future build-out including infill development, and increased densities in the City pursuant to the City’s General Plan. The flow study and IRS update will evaluate the success of the ongoing Wastewater Flow Offset Program and may refine the boundaries of the Capacity Constrained Area Map.

This effort will support desired economic activity and the creation of additional in-fill housing and development by building off available data and staff knowledge of currently constrained areas. The City’s hydraulic model will be updated and used to analyze the City’s wastewater collection system and identify existing and future system deficiencies and develop a prioritized replacement program that addresses these deficiencies. In light of the drought, and in anticipation of irregular rain events, the analysis will identify locations where permanent flow monitoring should be conducted and/or smart meters should be placed for the course of the flow study and in the future in order to capture a good picture of I/I impacts on the collection system. In addition, the scope of the Project includes system-wide mapping to identify corrosive conditions that could worsen with additional water conservation and lower flows in the collection system.

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Item 6d
Staff completed a Request for Proposal (RFP) for the Project (Attachment A) and recommends the City Council authorize advertisement of the Project for implementation.

Previous Council or Advisory Body Action
In March 2013, the City Council authorized a Request for Proposals and contract award for the previous IRS and hydraulic model. As noted above, the results of the IRS and model guided subsequent actions in May 2018 and September 2019, including adoption of the Wastewater Flow Offset Program and General Plan and Municipal Code Amendments. The 2021-23 Financial Plan includes $350,000 for two consecutive years of flow monitoring and field work (Flow Study, 2022-23 and 2023-24) and $80,000 for the IRS Update (2024-25).

Public Engagement
The City will share the IRS Update document on the Utilities Department website when complete.

CONCURRENCE
The Project will support ongoing implementation of the City’s General Plan; therefore, the Community Development Director concurs with the recommendations in this report.

ENVIRONMENTAL REVIEW
The City prepared a Notice of Exemption (Attachment B) for the Project in accordance with the California Environmental Quality Act (CEQA). The Project is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262 (Feasibility and Planning Studies) and categorically exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Existing Facilities).

FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

The Project will consist of a multi-year effort. The 2021-23 Financial Plan includes $350,000 for two consecutive years of flow monitoring and field work (2022-23 and 2023-24) and $80,000 for the IRS Update in 2024-25 (Sewer Fund Capital Improvement Plan, IRS Report Update and Flow Study, Project Number 91736). The initial $250,000 is appropriated for Fiscal Year 2022-23, and additional appropriations were anticipated as identified in the Financial Plan ($100,000 for 2023-24 and $80,000 for 2024-25) as the Project was initially envisioned to be completed by multiple consultants under separate agreements over a three-year period. As the Project is now proposed to be completed by one consultant, staff is requesting funding for the full contract amount ($430,000) at this time, which will be expended over multiple years. Therefore, an additional $180,000 is needed from the Sewer Fund to fully fund the Project (Attachment C). The approximate current balance in Sewer Fund unassigned working capital is $20.5 million. This action will advance the funding originally spread over three years and not increase the overall total cost anticipated.

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Item 6d
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Sewer Fund
CIP 91736
$250,000 $250,000 $0 $0
Unassigned
Working
Capital
$20,587,861 $180,000 $20,407,861
Total $20,837,861 $430,000 $20,407,861 $0

ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval to advertise this project. Staff does not recommend this alternative as the Project is needed to evaluate the wastewater collection system and identify any recommendations for improvements and modifications.

ATTACHMENTS
A - Wastewater Collection System Infrastructure Renewal Strategy Report Update and Flow Study Request for Proposals, Specification 91736
B - Wastewater Collection System Infrastructure Renewal Strategy Report Update and Flow Study Notice of Exemption
C - Draft Resolution authorizing funding for the Wastewater Collection System Infrastructure Renewal Strategy Report Update and Flow Study Project

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The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.

Telecommunications Device for the Deaf (805) 781-7410.

DRAFT
Notice Requesting Proposals for the Wastewater Collection Infrastructure Renewal Strategy and Flow Study for the Public Utilities Department
The City of San Luis Obispo is requesting sealed proposals for the Wastewater Collection Infrastructure Renewal Strategy Flow Study.

All firms interested in receiving further correspondence regarding this Request for Proposals will be required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-appweb/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of Finance at or before [DATE] when they will be opened publicly in the City Hall Conference Hearing Room, 990 Palm Street, San Luis Obispo, CA 93401.

A pre-proposal conference will be held at the following location, date, and time to answer any questions that the prospective proposers may have regarding the City's request for proposals:

Council Hearing Room
990 Palm Street, San Luis Obispo
[DATE][TIME]
1-888-204-5987, Code: 8618289
Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. All questions shall be submitted on or before XX, XX and XX PM. Responses to received questions will be posted on BidSync by XX, XX PM.

For technical help with BidSync please contact BidSync tech support at 800-990-9339.

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TABLE OF CONTENTS
SECTION A. INTRODUCTION.......................................................................................................................... 1 SECTION B. SCOPE OF WORK ........................................................................................................................ 5 SECTION C. PROJECT SCHEDULE ................................................................................................................... 8 SECTION D. PROJECT BUDGET....................................................................................................................... 8 SECTION E. GENERAL TERMS AND CONDITIONS ......................................................................................... 9 PROPOSAL REQUIREMENTS ......................................................................................................................... 9 CONTRACT AWARD AND EXECUTION........................................................................................................ 10 CONTRACT PERFORMANCE........................................................................................................................ 10 SECTION F. INSURANCE REQUIREMENTS.................................................................................................... 16 EXHIBIT A : FORM OF AGREEMENT............................................................................................................. 22

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-1-
SECTION A. INTRODUCTION
The City of San Luis Obispo (City) wishes to obtain the services of a professional firm (Consultant) for the Wastewater Collection Infrastructure Renewal Strategy and Flow Study (Project).

Background
The City’s wastewater collection system is
comprised of over 138 miles of gravity sewer
line, 3.4 miles of force main, nine lift stations,
3,080 manholes, 800 clean outs, and various
other assets. Approximately 80 percent of the
system is comprised of 6-inch and 8-inch pipes.

The sewer lines are made of a variety of
materials, including terra cotta salt glazed
pipe, vitrified clay pipe (VCP), polyvinyl
chloride (PVC), high density polyethylene
(HDPE), steel, cast iron, and asbestos concrete.

Portions of the sewer system are over 100
years old.

The collection system serves residential,
commercial, and industrial uses . Sewer service
is provided only to properties within the city
limits with the exception of the San Luis
Obispo campus of California Polytechnic State
University (Cal Poly) and the County of San Luis
Obispo Regional Airport. The number of
service connections/laterals is estimated at
approximately 12,000. In the city, the entire
sewer lateral to the service connection in the
street (or easement) is owned by the property
owner.

The City' s terrain is marked by hills, creeks,
highways, and railroad tracks that have
influenced the layout and expansion of the
collection system. The system includes
approximately 13,860 feet (2.6 miles) of sewer
lines that cross creeks, 18 sewer lines that
cross railroad tracks, approximately 7,900 feet
(1.5 miles) of pipe within Caltrans jurisdiction,
and 83,000 feet (approximately 16 miles) of
sewer lines in easements.

Gravity Sewer Lines
Pipe
Size
(in)
Length
(feet)
Length
(miles)
Pipe Type Percentage
of System
6 324,468 61.5 VCP/PVC/HDPE 44.3 %
8 267,769 50.7 VCP/PVC/HDPE 36.5 %
10 47,320 9.0 VCP/PVC 6.5 %
12 24,341 4.6 VCP/PVC/HDPE 3.3 %
15 21,859 4.1 VCP/PVC 3.0 %
16 2,569 0.5 VCP/PVC 0.4 %
18 20,339 3.9 VCP/PVC/HDPE 2.8 %
20 267 0.1 HDPE 0.0 %
21 3,301 0.6 VCP/PVC 0.5 %
24 6,244 1.2 VCP/PVC 0.9 %
27 2,098 0.4 PVC 0.3 %
30 5,687 1.1 PVC 0.8 %
36 5,182 1.0 PVC 0.7 %
48 1,600 0.3 PVC 0.2 %
Total 715,564 138 100 %
Sewer Force Mains
Pipe
Size
(in)
Length
(feet)
Pipe Type Lift Station
16 2,232 PVC Laguna
14 3,772 Ductile Iron Tank Farm
8 4,269 PVC/HDPE Calle Joaquin
8 839 Ductile Iron Airport
6 764 Transite, Asbestos
Concrete
Silver City
6 231 HDPE Margarita
4 440 Cast Iron Foothill
4 595 Ductile Iron Prefumo
8 5,280 HDPE Buckley
Total 18,422
Table 1. Collection System Components
Source: City of San Luis Obispo Sewer System Management Plan Update, 2019

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-2-
There are nine lift stations in the City' s wastewater collection system, including the Buckley Lift Station within the Avila Ranch Development, which will come online in 2022. The Prefumo and Tank Farm lift stations were installed in 2003 and 2009 respectively. Replacement of the Laguna lift station occurred in 2013, replacement of the Margarita lift station occurred in 2019, and replacement of the Calle Joaquin lift station is currently underway.

The five remaining lift stations are Smith & Loveless pre-manufactured steel structures with a dry well/wet well design put into service in the 1960s and early 1970s, all at or nearing the end of their useful service life.

Table 2. Lift Station Summary
Lift Station # Pumps / Pump Capacity
(gallons per minute) /
Total Dynamic Head (feet) /
Horsepower (hp)
Notes
Foothill 2 pumps / 300 gpm / 65 feet / 15 hp Installed in 1986. Planned for a future upgrade.

Calle Joaquin 2 pumps / 570 gpm / 53 feet / 15 hp Installed in 1967; expellers were installed in 2007, new force main
was installed in 2013. Lift station,
freeway crossing, and siphon are
planned for a future upgrade
beginning in 2022
Laguna 3 pumps / 1500 gpm / 45 feet / 40
hp
The lift station was replaced in
2013 with a new wet well and
Wemco Hidrostal pumps. It is the
largest of the collection system’s
pumping stations (Silver City, Calle
Joaquin and Prefumo pump to it
and it receives gravity flow from
the City’s Laguna Lake area).

Margarita 2 pumps / 400 gpm / 31 feet / 5 hp Replaced in 2019 with a new wet well and Wemco Hidrostal pumps.

Includes on-site backup generator.

Silver City 2 pumps/ 450 gpm / 43 feet / 15/

18.5 hp
Installed in 1971 within the
adjacent mobile home park.

Station needs back up controllers
or an auxiliary power system. It
will serve future annexation areas.

Planned for a future upgrade.

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Lift Station # Pumps / Pump Capacity
(gallons per minute) /
Total Dynamic Head (feet) /
Horsepower (hp)
Notes
Tank Farm 4 pumps / 2,000 gpm / NA / 13/ 35
hp
Installed in 2009. The lift station is
planned to serve development in
the Airport, Orcutt, Margarita, and
Avila Ranch Specific Plan Areas.

Includes on-site backup generator.

Prefumo 2 pumps / 35 gpm / NA/ 3.9 hp Serves limited population/area. No backup power available due to
limited availability of service from
PG&E.

Airport pumps / 240 gpm / NA / 5 hp The Airport Lift Station was constructed by the County. The
City took over its maintenance and
operation of the lift station in
2000. Serves the airport, adjacent
development, and recently
annexed areas. Planned for a
future upgrade or replacement
with a new gravity sewer main.

The City’s wastewater collection system and the Water Resource Recovery Facility (WRRF) have long experienced problems associated with excessive wet weather infiltration and inflow (I/I). Dry weather flows at the WRRF currently average 3.1 million gallons per day (MGD). Wet weather flows to the WRRF during a rain event can exceed 15 MGD, evidence of a significant I/I problem. Because all water entering the WRRF must be treated as wastewater, I/I has a significant impact on operating expenses and drives the need for capital expenditures. In addition, I/I overloads the collection system during heavy rains and can result in sewage spills.

In 2009, the City retained a consultant to conduct multi-year flow monitoring, resulting in a Sanitary Sewer Flow Monitoring and Inflow / Infiltration Study (V&A, March 2012). The 2012 Study addressed lateral replacement as an integral part of reducing overall I/I in the City. In 2016, in collaboration with a consultant, the City completed the Wastewater Collection System Infrastructure Renewal Strategy (WSC, December 2015), which included a hydraulic model of the City’s wastewater collection system and prioritization of system improvements and replacements.. The 2015 Strategy report recommended lateral replacement program options for consideration by the City, noting that comprehensive rehabilitation of sewer mains and private laterals is required to address the City’s I/I problem. In September 2019, based on the results of the 2015 IRS, the City Council approved the Wastewater Flow Offset Program to accommodate new or intensified development in capacity constrained areas by replacing laterals in poor condition. Capacity constrained areas are areas where the existing sewer system infrastructure cannot accommodate additional wastewater flow due to I/I during peak wet weather events. The Council’s approval included associated Municipal Code amendments (Section 13.08.396, Wastewater Flow Offset); this approval was preceded by the Council’s May 2018 adoption of Water and Wastewater Element amendments, and the current Capacity Constrained Areas Map (Figure 1).

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Figure 1. Capacity Constrained Areas

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SECTION B. SCOPE OF WORK
The City is seeking proposals from firms for the following as summarized below and outlined in the identified Tasks 1 through 5:

Flow Study and Updated Wastewater Collection Infrastructure Renewal Strategy

1. Conduct dry- and wet-weather flow monitoring to quantify wastewater flows by flow basin;

2. Identify locations where permanent flow monitoring should be conducted and/or smart meters should be placed for the course of the study and in the future;

3. Update the City’s 2016 hydraulic model, analyze the City’s wastewater collection system and identify existing and future system deficiencies and develop a prioritized replacement program that addresses these deficiencies;

4. Provide instructions on maintaining and updating the hydraulic model so that it can continue to be used;

5. Review the current Wastewater Collection Infrastructure Renewal Strategy and prepare an updated document including data-driven recommendations to continue to reduce I & I; and

6. Refine the boundaries of identified capacity constrained areas based on the results of the flow study and incorporate into the updated Wastewater Collection Infrastructure Renewal Strategy (IRS).

Additional Additive Task: Corrosive Condition Mapping (Optional)

1. Conduct system-wide dissolved sulfide mapping to identify corrosive conditions that could worsen with additional water conservation and lower flows.

Scope of Work
The proposed work will include analysis of existing system conditions, future build-out including infill development, hospital expansions, and increased densities in the City pursuant to the City’s General Plan. Key development projects and annexations that have been approved since adoption of the 2014 General Plan Land Use Element include, but are not limited to: San Luis Ranch (under construction); Avila Ranch Development Plan (under construction); East and West Airport areas (annexation approved); and Froom Ranch (annexation approved). The City’s desired scope of work for the project is described below.

Task 1: Project Meetings, Coordination and Project Management During the Project, the Consultant will attend progress/coordination meetings with City staff to discuss issues related to the Project and to update the City regarding progress of the modeling and development of the infrastructure replacement strategy. Anticipated meetings are as follows:
 Project kick-off meeting
 Meeting(s) to review background data
 Meeting(s) to discuss model update approach and model verification and ongoing use  Meeting(s) to discuss Draft and Final Infrastructure Renewal Strategy Report  Meeting(s) prior to City Council hearing
 Meeting at City Council (in-person) for adoption of updated IRS This task includes all project monitoring and administration, attendance at progress meetings with City staff, and project quality assurance/quality control (QA/QC) activities. The Consultant shall provide a workplan for communications, meetings, and progress reporting to ensure the Project is kept on schedule and within budget.

The Consultant will coordinate with the City’s Project Manager on activities including scheduling meetings, tracking, and reporting on work in progress. The Consultant will prepare meeting notes and distribute them to the City and Consultant team. The Consultant will also prepare a schedule of items to be submitted by the City and Consultant and a log of decisions to be made and action items.

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Task 1 Deliverables:

Consultant will provide meeting agendas, minutes, monthly status reports, project schedule, a list of contacts and communications protocol, quality assurance and quality control, and invoices.

Task 2: Review of Available Data and Assessment of Wastewater Collection System The Consultant shall become familiar with the wastewater collection system including mains, flow basins, lift stations, other critical infrastructure, current, and planned capital improvement projects, and existing infrastructure planning documents. The City has the following information to assist the Consultant with the preparation of the flow study and updated Wastewater Collection Infrastructure Renewal Strategy:
 GIS and CCTV inspection data of existing wastewater collection system  Sanitary Sewer Flow Monitoring and Inflow/Infiltration Study (V&A, March 2012)  Sewer System Management Plan Update (2019) and associated regulatory documents (WDRs)  Historical Water Resource Recovery Facility flow data  2009 Wastewater Master Plan Update, Airport Study Area  Utility billing data (monthly water consumption data by address)  Water Resource Recovery Facility Project Facilities Plan (2015)  2020 Engineering Standards and Standard Specifications  2021-2023 Financial Plan Supplement and Capital Improvement Plan  California Polytechnic University WRF (future)
 Wastewater Master Plan Update – Airport Area Study (2009) The Consultant shall also become familiar with the City’s planning/land use related documents to help anticipate future wastewater flows as the City approaches build-out. These include:
 General Plan, specifically the Draft Land Use Element and Housing Element  Specific Plans for the Orcutt Area, Margarita, San Luis Ranch, Froom Ranch, and Airport Area  South Broad Street Area Plan
Stakeholder Interviews and Facility Tours
It will be critical for the Consultant to conduct interviews with City staff to confirm its understanding of the City’s wastewater collection system and future growth in the City. Preliminary topics include the condition and operations of the existing wastewater collection system, chronic and acute sewer impacts from drought and water conservation, existing and anticipated future bottlenecks, cost of wastewater treatment, and WRRF operations during storm events (existing and future). Consultant should suggest a specific approach to conducting Stakeholder Workshops in their proposal. Stakeholders include:
 Utilities Director
 Community Development Director and Planning staff
 Wastewater Division Manager
 Wastewater Collections Supervisor and staff
 Water Resource Recovery Facility Supervisor and staff  Environmental Programs Manager
 Water Quality Lab Manager
Stakeholder interviews may also include the Community Development Director, Community Development Deputy Director and planning staff, Public Works Director, Public Works Deputy Director (City Engineer) and engineering staff, and Economic Development Manager. This task also includes a tour of the collection system and Water Resource Recovery Facility by staff from the City’s Wastewater Division.

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Task 2 Deliverables:

Consultant will prepare the agendas and minutes for the stakeholder interviews. Consultant will prepare a draft and final technical memorandum summarizing the City’s available data (identifying any key data gaps) with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

Task 3: GPS Data, Updated Hydraulic Model, and Hydraulic Model Evaluation The Consultant will be provided with the City’s 2016 hydraulic model and GIS database for use with the modeling evaluation. The Consultant will provide an updated model, including instructions on how to keep the model current, so that it can continue be used by City staff. The model will identify existing dry weather flows based upon available flow monitoring and water consumption data. Model results will be reviewed and the model flow factors adjusted and rerun, as needed, to align the flow monitoring data. The existing wet weather flows may be calibrated based on the flow monitoring data. Model results will be reviewed and the model adjusted, as needed, to align the flow monitoring data. Consultant will prepare scenarios for dry and wet weather flows for existing and future conditions.

Task 3 Deliverables:

Provide updated hydraulic model and written/graphic instructions to keep the model living and current.

Consultant will prepare a draft and final Hydraulic Model Evaluation Technical Memorandum with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

Task 4: Capacity Assurance, Evaluation, and Report
Using the updated hydraulic model developed in Task 3, the Consultant will evaluate the collection system’s performance under multiple scenarios including:
 2023/2024 dry weather conditions,
 2022/2023 wet weather conditions (with I/I), and
 Build-out conditions under the existing General Plan.

Consultant will establish hydraulic conditions for future sewer mains, siphons, lift stations, force mains, and other components of the collection system. Prior to the analyses, the Consultant shall coordinate with the City the selection of additional parameters to be used. The City is interested in having a full understanding of how the existing and ongoing Wastewater Flow Offset Program and completed capital improvement projects have influenced I/I and the currently defined capacity constrained area, and how I/I continues to influence the need for future infrastructure renewal and replacement. Consultant will identify and model capacity improvement alternatives designed to reflect the potential impact of I/I reduction programs with reductions unique to each flow basin.

The Consultant will work with City staff to determine necessary improvements to correct the identified deficiencies. An Infrastructure Renewal Strategy will be developed to prioritize needed improvement projects (with estimated timing of when improvement is needed). The strategy will utilize a risk rating curve that provides for the orderly and efficient method of determining needs based on capacity, critical service area(s), funding requirements, etc. The Strategy will identify and prioritize improvements giving cost summaries and timetables necessary to remedy those deficiencies.

Consultant will prepare a draft and final report that provides a clear rationale for identifying, prioritizing, and cost of recommended improvement. The report shall include a recommended updated capacity-constrained area map.

The report shall include an executive summary. The report shall also include a program for maintenance of the hydraulic model.

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Task 4 Deliverables:

Consultant will prepare a draft and final Infrastructure Renewal Strategy report with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file. At the completion of the project, Consultant will submit all electronic files, including hydraulic model, and GIS files used to create the Infrastructure Renewal Strategy to the City including the updated capacity constrained area map.

Additive Alternative Task 5: Corrosive Condition Mapping (Optional) The Consultant may include this additive task to the proposal submittal, if qualifications, capacity, and capability to complete this task can be demonstrated. Provision of this additive scope item is not a requirement of the response to the RFP.

Conduct dry weather dissolved sulfide (liquid) or hydrogen sulfide (gas) monitoring concurrently during flow monitoring to identify conditions that may impact the Infrastructure Renewal Strategy. Dissolved sulfide or hydrogen sulfide monitoring periods shall include a minimum of three days per location.

Additive Alternative Task 5 Deliverables:

At the completion of the project, Consultant will submit all electronic files, including raw dissolved sulfide data, hydrogen sulfide data and GIS files used to conduct corrosive condition mapping.

SECTION C. PROJECT SCHEDULE
Please provide a detailed schedule for the completion of the scope of work described above with key project milestones and deliverables. Schedule start up shall correspond to the award schedule identified below. The following is a list of significant project milestones:

1. Information and GPS Data Collection, Staff Interviews

2. Flow Study Implementation

3. Hydraulic Model Evaluation Technical Memorandum, draft and final version

4. Infrastructure Renewal Strategy, draft and final report

5. Presentation of executive summary and key recommendations to City Council.

SECTION D. PROJECT BUDGET
Provide a Cost Proposal listing the cost for each task, including an itemized breakdown of all services to be provided and the estimated number of hours to complete each task and sub-task. Provide estimated hours for your staff in performing each phase and task of the work, including sub-consultants, so we can clearly see who will be doing what work, and how much time it will take. The information shall be provided in a spreadsheet format to enable City staff to determine the key project team members’ involvement proposed for each task and the number of management, technical, drafting, and support personnel hours. The name of team member shall be included in the column headings of the spreadsheet.

Identify all costs to be billed to the project, including cost per hour for each project team member and the total cost envisioned for each task, project expenses, and sub-consultant costs. Include any proposed mark-up for subconsultant fees. Include a copy of the proposed rate schedule(s) to be used for the duration of the project including any adjustments that are proposed to occur during the life of the project. Any proposed adjustments shall be factored into the total proposed project cost.

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SECTION E. GENERAL TERMS AND CONDITIONS

PROPOSAL REQUIREMENTS

1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications.

2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be submitted electronically via BidSync. However, if you can’t submit electronic please send your bid copy in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted.

3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.

The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section E.

4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be provided in the Cost Proposal. Identify all costs to be billed to the project, including cost per hour for each project team member and the total cost envisioned for each task, project expenses, and sub-consultant costs. Include any proposed mark-up for subconsultant fees. Include a copy of the proposed rate schedule(s) to be used for the duration of the project including any adjustments that are proposed to occur during the life of the project. Any proposed adjustments shall be factored into the total proposed project cost. Any lump sum bid shall be stated in figures. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder’s intention and the proposal total will be corrected to conform to the specified unit price.

5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened. No proposal received after the time specified or at any place other than that stated in the “Notice Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the proposals.

6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested as the primary submitter in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a subproposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting proposals.

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7. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged but will be permitted.

However, any such oral communication shall not be binding on the City.

CONTRACT AWARD AND EXECUTION

8. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the “special terms and conditions” in Section C of these specifications for proposal evaluation and contract award criteria.

9. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, all information that the City deems necessary to make such a decision.

10. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award. The contract shall be made in the form adopted by the City and incorporated in these specifications.

CONTRACT PERFORMANCE

11. The City’s contract terms and conditions that [Contractor/Consultant] will be expected to execute and be bound by are attached hereto as Exhibit A

SPECIAL TERMS AND CONDITIONS

1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible, responsive proposer.

2. Labor Actions.

In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the next acceptable low proposal from a proposer that is not experiencing a labor action, and to declare it to be the lowest responsible, responsive proposer.

3. Failure to Accept Contract.

The following will occur if the proposer to whom the award is made (Contractor) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a proposer's bond or security is required; and an award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made.

4. Contract Term.

The supplies or services identified in this specification will be used by the City for the Wastewater Collection Infrastructure Renewal Strategy. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal.

5. Contract Extension.

The term of the contract may be extended by mutual consent for an additional one-year, and annually thereafter, for a total of four years.

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6. Supplemental Purchases.

Supplemental Purchases. Supplemental purchases may be made from the successful proposer during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For these supplemental purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other similar customers for the same item. If the proposer is willing to offer the City a standard discount on all supplemental purchases from its generally prevailing or published price structure during the contract term, this offer and the amount of discount on a percentage basis should be provided with the proposal submittal.

7. Contractor Invoices.

The Contractor may deliver either a monthly invoice to the City with attached copies of detail invoices as supporting detail, or in one lump-sum upon completion.

8. Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract term.

9. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog numbers used in the specifications are for the purpose of describing and establishing general quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand that meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole judge in making this determination.

10. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful proposer and received by the City within 90 days after authorization to proceed by the City.

11. Start and Completion of Work. Work on this project shall begin immediately after contract execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated with City by mutual agreement.

12. Change in Work. The City reserves the right to change quantities of any item after contract award. If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall be subject to negotiation with the Contractor.

13. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package.

14. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package.

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PROPOSAL CONTENT

1. Proposal Content. Your proposal must include the following information:

Submittal Forms
a. Proposal submittal summary.
b. Certificate of insurance.
c. References from at least three firms for whom you have provided similar services.

Qualifications
d. Experience of your firm and those of sub-consultants in performing work and projects relevant to the Scope of Services outlined and described in the request. e. Resumes of the individuals who would be assigned to this project, including any sub-consultants, with their corollary experience highlighted and specific roles in this project clearly described. f. Standard hourly billing rates for the assigned staff, including any sub-consultants. g. Statement and explanation of any instances where your firm or sub-consultant has been removed from a project or disqualified from proposing on a project.

Work Program
h. Detailed description of your approach to completing the work. i. Detailed schedule by task and sub-task for completing the work. j. Estimated hours for your staff in performing each phase and task of the work, including subconsultants, so we can clearly see who will be doing what work, and how much time it will take. k. Detailed budget by task and sub-task for completing the work. l. Services or data to be provided by the City.
m. Services and deliverables provided by the Consultant(s). n. Any other information that would assist us in making this contract award decision. o. Description of assumptions critical to development of the response which may impact cost or scope.

Requested Changes to Terms and Conditions
p. The City desires to begin work soon after selecting the preferred Consultant Team and expects the Consultant to execute the City’s contract and all of the terms therein, as set forth in Exhibit A. To expedite the contracting process, each submittal shall include requested redlined changes to terms and conditions, if necessary. Please be advised that Consultant’s requested changes to the City’s terms and conditions will be considered by City staff when scoring and determining the competency and responsibility of the bidder.

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Proposal Length
q. Proposal length should only be as long as required to be responsive to the RFP, including attachments and supplemental materials.

2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and evaluated on the following criteria:
a. Understanding of the work required by the City.
b. Quality, clarity and responsiveness of the proposal. c. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City.
d. Recent team experience in successfully performing similar services. e. Creativity of the proposed approach in completing the work. f. Value
g. Writing skills.
h. References.
i. Background and experience of the specific individuals managing and assigned to this project.

As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation.

3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award:
a. Issue RFP [date]
b. Pre-Proposal Conference (optional) [date]
c. Receive proposals [date]
d. Complete proposal evaluations [date]
e. Conduct finalist interviews and finalize recommendation [date] f. Execute contract [date]
g. Start work [date]

4. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following location, date, and time to answer any questions that prospective bidders may have regarding this RFP:
[Day, Date, Time]
[LOCATION]

5. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand.

6. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City.

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7. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense.

8. Required Deliverable Products. The Contractor will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file a paper copy, please submit in sealed envelope to the address provided in the RFP. b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager:

Word Processing: MS Word
Spreadsheets: MS Excel
Desktop Publishing: InDesign
Virtual Models: Sketch Up
Digital Maps: Geodatabase shape files in
State Plan Coordinate System as
specified by City GIS staff
c. City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will be required to respond to staff comments and make such changes as deemed appropriate.

ALTERNATIVE PROPOSALS

9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s).

10. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Contractor at up to [number] public meetings to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing work-scope tasks.

11. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder,

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assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal.

To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal.

In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City.

Failure to provide the hereinbefore described written notice within one (1) working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute.

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SECTION F. INSURANCE REQUIREMENTS
Without limiting Consultant’s indemnification of City, and prior to commencement of Work, Consultant 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 satisfactory to City.

General liability insurance. Consultant 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 $2,000,000 per occurrence, $4,000,000 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.

Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with 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.

Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

Workers’ Compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).

Consultant 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.

Umbrella or excess liability insurance. Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits 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, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
 A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;  Pay on behalf of wording as opposed to reimbursement;  Concurrency of effective dates with primary policies;  Policies shall “follow form” to the underlying primary policies; and  Insureds under primary policies shall also be insureds under the umbrella or excess policies.

Proof of insurance. Consultant 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, at any time.

Duration of coverage. Consultant shall procure and maintain for the duration of the contract 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 Consultant, his agents, representatives, employees or subconsultants.

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Primary/noncontributing. Coverage provided by Consultant 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 noncontributory basis for the benefit of City before the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.

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 Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.

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 VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

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 Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its subconsultants.

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

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

Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty-day notice of cancellation (except for nonpayment for which a ten-day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

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.

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Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’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.

Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant 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. Consultant agrees that upon request, all agreements with Consultants, subcontractors, and others engaged in the project will be submitted to City for review.

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

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.

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

Additional insurance. Consultant 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 work.

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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the present business name: .

Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications.

Reference No. 1:

Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome

Reference No. 2:

Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome

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Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome

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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances.  Do you have any disqualification as described in the above paragraph to declare? Yes q No q
 If yes, explain the circumstances.

Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________
Signature of Authorized Proposer Representative

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EXHIBIT A : FORM OF AGREEMENT

CITY OF SAN LUIS OBISPO

DESIGN PROFESSIONAL SERVICES AGREEMENT
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on [date], by and between the City of San Luis Obispo, a municipal corporation and charter city (City) and Consultant) (collectively referred to as the “Parties”).

WITNESSETH:

WHEREAS, the City wants to [_________] (the “Services”); and WHEREAS, Consultant is qualified to perform this type of Services and has submitted a proposal to do so, which has been accepted by City; and
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the Parties hereto agree as follows:

1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, until [date], or upon acceptance and completion of said Services, whichever occurs sooner.

2. INCORPORATION BY REFERENCE.
[Title of City’s RFP/RFQ/IFB] and Consultant's proposal dated [date] are hereby incorporated in and made a part of this Agreement, attached as Exhibit A. The City’s insurance requirements are hereby incorporated in and made part of this Agreement, attached as Exhibit B. To the extent that there are any conflicts between the Consultant’s fees and scope of work and the City’s terms and conditions as stated herein, the City’s terms and conditions shall prevail unless specifically agreed otherwise in writing signed by both Parties.

3. CITY’S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefor compensation in a total sum not to exceed $xx,xxx.

4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and agreements herein before mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement including that work as set forth in Exhibit A.

5. PAYMENT OF TAXES. The contract prices shall include full compensation for all taxes that Consultant is required to pay.

6. LICENSES AND PERMITS. At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. The Consultant shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement.

7. COMPLIANCE WITH LAW. The Consultant shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis Obispo ordinances, regulations and adopted codes, which in any manner affect those employed by Consultant or in any way affect the performance of the Services pursuant to this Agreement.

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The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Failure to comply with local ordinances may result in monetary fines and cancellation of this Agreement.

8. COMPLIANCE WITH INDUSTRY STANDARD. Consultant shall provide services acceptable to City in strict conformance with the Agreement. Consultant shall also provide in accordance with the standards customarily called for under this Agreement using the degree of care and skill ordinarily exercised by reputable providers of such services. Where approval by the City, the City Manager, the Mayor, or other representative of City is required, it is understood to be general approval only and does not relieve Consultant of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices.

9. INDEPENDENT CONTRACTOR.
a. Consultant is and shall at all times remain as to the City a wholly independent contractor.

The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner.
b. No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.

10. PRESERVATION OF CITY PROPERTY. The Consultant shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from Consultant’s operations, it shall be replaced or restored at Consultant’s expense. The City’s facilities shall be replaced or restored to a condition as good as when the Consultant began the work.

11. IMMIGRATION ACT OF 1986. The Consultant warrants on behalf of itself and all subconsultants engaged for the performance of the Services that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the Services hereunder.

12. NON-DISCRIMINATION. In the performance of the Services, the Consultant agrees that it will not engage in, nor permit such subconsultants as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons.

13. PAYMENT TERMS. The City’s payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Consultant (Net 30). Consultant will submit invoices monthly for actual services performed.

Invoices shall be submitted on or about the first business day of each month, or as soon thereafter

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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 the City disputes any of Consultant's fees it shall give written notice to Consultant 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, therefore.

14. INSPECTION. City shall at all times have the right to inspect the work being done under this Agreement and Consultant shall furnish City with every reasonable opportunity and assistance required for City to ascertain that the Services of the Consultant are being performed in accordance with the requirements and intentions of this Agreement. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve Consultant of any of its obligations under the Agreement.

15. RELEASE OF INFORMATION.
a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not, without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. b. Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless Consultant is prohibited by law from informing the City of such Discovery. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is averse to Consultant in such proceeding, Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

16. OWNERSHIP OF DOCUMENTS.
a. Consultant 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 the Services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant 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;

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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. b. 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 Services under this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. Consultant 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 Consultant in the course of providing the Services under this Agreement.

17. INDEMNIFICATION AND DEFENSE.
a. Indemnification and Defense for Professional Services To the fullest extent permitted by law, Consultant shall indemnify, defend, and hold harmless City and any and all of its officials, employees and agents (“Indemnified Parties”) from and against any and all claims, losses, liabilities, damages, costs and expenses, including attorney’s fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant’s duty to defend shall consist of reimbursement of defense costs incurred by City in direct proportion to the Consultant’s proportionate percentage of fault. Consultant’s percentage of fault shall be determined, as applicable, by a court of law, jury or arbitrator.

In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the Consultant’s percentage of fault, the Parties agree to mediation with a neutral third-party to determine the Consultant’s proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the City. b. For all Other Liabilities
Notwithstanding the foregoing and without diminishing any rights of City under Section

19.a., for any liability, claim, demand, allegation against City arising out of, related to, or pertaining to any act or omission of Consultant, but which is not a design professional service, Consultant shall defend, indemnify, and hold harmless the Indemnified Parties from and against any and all damages, costs, expenses (including reasonable attorney fees and expert witness fees), judgments, settlements, and/or arbitration awards, whether for personal or bodily injury, property damage, or economic injury, and arising out of, related to, any concurrent or contributory negligence on the part of the City except for the sole or active negligence of, or willful misconduct of the City.

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18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least thirty (30) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the 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, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 14.

19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the Consultant is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency.
a. If the Consultant has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of the Agreement and the City may terminate the Agreement immediately by written notice to the Consultant to said effect (“Notice of Termination”). Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the Agreement except to comply with the obligations upon termination.
b. In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Agreement payment schedule; compensation for any other work or services performed or provided by the Consultant shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall scope.
c. The City reserves the right to delay such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the not to exceed amount shown in this Agreement.

20. INSURANCE. Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit B attached to and made part of this Agreement.

21. BUSINESS LICENSE AND TAX. The Contractor must have a valid City of San Luis Obispo business license & tax certificate before execution of the contract. Additional information regarding the City’s business tax program may be obtained by calling (805) 781-7134.

22. SAFETY PROVISIONS. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

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23. PUBLIC AND EMPLOYEE SAFETY. Whenever the Contractor’s operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees.

24. UNDUE INFLUENCE. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.

25. ASSIGNMENT. The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. a. As required above, before retaining or contracting with any subconsultant for any services under this Agreement, City must consent to such assignment of performance in writing.

For City to evaluate such proposed assignment, Consultant shall provide City with the identity of the proposed subconsultant, a copy of the proposed written contract between Consultant and such subconsultant, which shall include an indemnity provision similar to the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subconsultant carries insurance at least equal to that required by this Agreement or obtain a written waiver from City for such insurance.

26. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the appropriate review authority according to the City’s Financial Management Manual. Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized by the City in advance and in writing.

27. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete Agreement between the Parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral Agreement, understanding, or representation be binding upon the Parties hereto. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.

28. NOTICE. All notices to the Parties hereto under this Agreement shall be in writing and shall be sent either by (i) personal service, (ii) delivery by a reputable document delivery service, such as, but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) United States Mail, certified, postage prepaid, return receipt requested. All such notices shall be delivered to the addressee or addressed as set forth below:

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To City: [DEPT]
City of San Luis Obispo
[ADDRESS]
Attention:

To Consultant: Name
Mailing Address

29. GOVERNING LAW. Any action arising out of this Agreement shall be brought in the Superior Court of San Luis Obispo County, California, regardless of where else venue may lie. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law.

30. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed the day and year first above written.

CITY CONSULTANT
_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]
APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney

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EXHIBIT A
[Placeholder for RFQ and Consultant’s Proposal]

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Notice of Exemption
To: Office of Planning and Research From: City of San Luis Obispo 1400 Tenth Street, Room 121 Community Development Department Sacramento, CA 95814 919 Palm Street
San Luis Obispo, CA 93401-3249
County Clerk
County of San Luis Obispo Filing Not Required
1144 Monterey Street, Suite A
San Luis Obispo, CA 93408
Project Title: Wastewater Collection Infrastructure Renewal Strategy and Flow Study Project Location: Citywide
Project Location - City: San Luis Obispo Project Location - County: San Luis Obispo Description of Project: The proposed Project consists of a flow study and preparation of an updated Wastewater Collection Infrastructure Renewal Strategy Report. The Project will consist of the placement of flow monitoring devices on/within existing utility infrastructure, corrosive condition mapping, data analysis, updating the City’s 2016 hydraulic model, and preparation of a Strategy Report.

Name of Public Agency Approving the Project: City of San Luis Obispo Name of Person or Agency Carrying Out the Project: City of San Luis Obispo Exempt Status (check one):

Ministerial (Section 21080(b)(1); 15268;
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c)
Categorical Exemption. State type and section number: 15301, Class 1, Existing Facilities.

Statutory Exemptions. State code number: 15262, Feasibility and Planning Studies Reasons why project is exempt:

The Project is exempt from CEQA because the study will consist of the placement of flow monitoring devices and on/within existing utility infrastructure and corrosive condition mapping within existing infrastructure, the Project will not modify the existing capacity of the wastewater collection system, and the Project will not result in any significant physical impacts on the environment. The information gathered with the flow study will inform the IRS, which will consist of a planning document that will provide recommendations and will not bind the City to any specific future project or course of action.

Lead Agency
Contact Person: Shawna Scott Area Code/Telephone/Ext. (805) 781-7176 Signature:______________________________ Date: __July 20, 2022________________ By: Shawna Scott, Special Projects Manager ([email protected]) Signed by Lead Agency Date Received for Filing at OPR: __________ Signed by Applicant

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R ______
RESOLUTION NO. _____ (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, AUTHORIZING USE OF SEWER FUND

UNASSIGNED WORKING CAPITAL FOR PREPARATION OF THE

INFRASTRUCTURE RENEWAL STRATEGY REPORT UPDATE AND
ASSOCIATED FLOW STUDY, SPECIFICATION NO. 91736
WHEREAS, the City's wastewater collection system and Water Resource Recovery Facility shall support population and related service demands consistent with the General Plan (City of San Luis Obispo General Plan Water and Wastewater Element [WWE] Policy B.2.2.2), and WWE Program B.2.3.1 calls for the City to expand capacity in the collection system in support of projected wastewater flows; and WHEREAS, consistent with the General Plan, the Infrastructure Renewal Strategy Report Update and associated Flow Study (Project) will provide the information and recommendations necessary to: manage the collection system and ensure that flow does not exceed design capacity (WWE Policy B.4.2.1); continue, modify, and identify programs that will minimize stormwater and groundwater infiltration and inflow into the sewer system (WWE Policy B.4.2.2); and, investigate and carry out cost-effective methods for reducing infiltration and inflow I/I into the collection system (WWE Program B.4.3.1); and
WHEREAS, the Project is identified in the 2021-23 Financial Plan as a Sewer Fund Capital Improvement Project (CIP) that would be implemented over multiple years, including Fiscal Years 2022-23, 2023-24, and 2024-25; and WHEREAS, the 2021-23 Financial Plan and 2022-23 Financial Plan Supplement appropriated $250,000 for the Project with additional appropriations forecasted in future years as separate annual contracts ($100,000 for 2023-24 and $80,000 for 2024-25); and WHEREAS, the total Project cost is estimated at $430,000 requiring an additional appropriation of $180,000 at this time to fund implementation of the full Project under one contract; and
WHEREAS, a balance of over $20 million is available from Sewer Fund Unassigned Working Capital to fully fund the Project.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Budget. The budget of $180,000 will be moved to the Infrastructure Renewal Strategy Report Update and associated Flow Study, Specification No. 91736.

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Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 2. Environmental Review. The Project is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262 (Feasibility and Planning Studies) and categorically exempt from CEQA pursuant to CEQA Guidelines Section 15301 (Existing Facilities) because the study will consist of the placement of flow monitoring devices and on/within existing utility infrastructure and corrosive condition mapping within existing infrastructure, the Project will not modify the existing capacity of the wastewater collection system, and the Project will not result in any significant physical impacts on the environment. The information gathered with the Flow Study will inform the Infrastructure Renewal Strategy Report Update, which will consist of a planning document that will provide recommendations and will not bind the City to any specific future project or course of action.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this ____ day of _________ 2022. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington, City Clerk

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Item 6e
Department: Public Works
Cost Center: 5010
For Agenda of: 8/16/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Wyatt Banker-Hix, Engineer III
SUBJECT: AUTHORIZATION TO ADVERTISE REQUEST FOR PROPOSALS FOR

CONSULTANT SERVICES TO PROVIDE SPECIALIZED SERVICES FOR

THE PRADO ROAD INTERCHANGE PROJECT

RECOMMENDATION

1. Authorize advertisement of a Request for Proposals for Value Analysis (VA) services for the Prado Road Interchange Project; and

2. Authorize advertisement of a Request for Proposals for design services in the Project Approval/Environmental Document (PA/ED) phase of work in a form agreed on by the City Engineer and City Attorney; and

3. Authorize advertisement of a Request for Proposals for design services in the Plans, Specifications, and Estimate (PS&E) Phase of work in a form agreed on by the City Engineer and City Attorney; and

4. Authorize the City Manager to execute an agreement with the selected consultant in each case; and

5. Authorize the City Engineer to execute and amend the Purchase Order for selected consultants if within the available project budget.

REPORT IN BRIEF
The Prado Road Interchange is a Capital Improvement Plan (CIP) project that will install a bridge over US 101 connecting Prado Road to Dalidio Drive. The scope and scale of this project is large and considered a legacy project that supports several Major City Goals, General Plan policies, and is a condition of multiple project Environmental Impact Reports. This project is following the Caltrans project delivery process and is currently in the Project Approval Environmental Document (PA/ED) phase of delivery. Staff requests authorization to advertise for a series of specialized consultant services (Attachment A) including: additional design services to support the PA/ED phase as well as the Plans, Specifications, and Estimates (PS&E) phase of project delivery in addition to the Value Analysis consultant services that are required by the Federal Government to be completed.

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Item 6e

POLICY CONTEXT
The Prado Interchange Project supports the Major City Goals of: Housing and Homelessness as well as Climate Action, Open Space and Sustainable Transportation.

The Land Use and Circulation Element (LUCE) of the General plan identifies a lack of multi-modal east-west connections across town, which this project proposes to address.

The 2021 Active Transportation Plan and prior 2013 Bicycle Transportation Plan identified the need for separated cycle tracks and sidewalks on the interchange to create a truly multi-modal link across town.

The General Plan also identifies the Prado Interchange as essential in facilitating growth in the Southern portion of the City. Many of the trips generated from proposed development projects will utilize the Prado Interchange as an east-west link.

Environmental documents from the developments in this area of the City are relying on the installation of the Prado Interchange to address traffic congestion and circulation deficiencies.

Continuation of the PA/ED and PS&E services is necessary to ensure smooth project delivery and to minimize schedule delays.

DISCUSSION
Background
The Prado Interchange Project proposes to complete three major roadway improvements.

The first component of the project will connect Prado Road to Dalidio Drive by installing a bridge over US 101. Currently at Prado Road there are existing Northbound on and off ramps that will be reconnected, but they are proposed to be elevated to connect to the new bridge structure. The second component of the project is the realignment of Elks Lane behind the new Regional Transit Authority (RTA) facility and the 40 Prado Road Homeless Services Center and reconnecting to Prado Road at the City’s Water Resource Recovery Facility entrance. Finally, Prado Road will be widened to provide a continuous multi-modal corridor that accommodates projected traffic needs from the Prado Interchange Bridge to the Prado Creek Bridge Replacement Project that is currently in design and scheduled to start construction prior to the Prado Interchange Project. The Prado Interchange Project does not install Southbound on and off ramps as this would unnecessarily delay project delivery and create interchange spacing issues with traffic on US 101.

The Interchange design process started in 2016 with the Project Study Report and continued with the 2018 kickoff of the alternatives analysis and environmental document phase of the project. Staff is currently working with a team of consultants to evaluate each alternative for the traffic, environmental, and financial impacts.

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Item 6e
Caltrans Oversight and Project Development Processes
This project is a partnership between the City and Caltrans. Caltrans is assisting the City with project delivery and will eventually assume maintenance of portions of this facility.

Throughout the process (from planning to construction), Caltrans staff review and approve major deliverables to ensure compliance with their standards. Once the interchange is constructed and delivered according to Caltrans standards, they will assume maintenance for the bridge structure.

The Caltrans interchange delivery process1is divided into the Project Study Report, Project Alternative and Environmental Document (PA/ED) and Plans, Specifications and Estimate phases (PS&E).

Each phase and their key deliverables are summarized below:

Caltrans Project
Delivery Phase
Key Deliverables Status
Project Study
Report
--- Study Report – Interchange
Feasibility
Complete
PA/ED. Project
Alternatives and
Environmental
Document
--- Traffic Study
--- 30% Plans and Estimates (all
alternatives)
--- Project Report
--- CEQA Document (Initial Study –
Mitigated Negative Declaration)
NEPA Document (Categorical
Exemption)
--- Value Analysis
In Progress
PS&E Project
Plans,
Specifications, and
Estimates
--- 50% Project Plans and Estimates
--- 90% Project Plans, Specifications,
and Estimates
--- 100% Project Plans, Specifications,
and Estimates
--- Final Plans, Specifications, and
Estimate to advertise
Not Started
To date, the Project Study Report Phase has been completed and the PA/ED phase is in progress.

1 A more thorough description of the Caltrans delivery process can be found here: https://dot.ca.gov/- /media/dot-media/programs/sustainability/documents/2011-how-caltrans-builds-projects-a11y.pdf

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Item 6e
Project Approval / Environmental Document (PA/ED) Phase Consultant Back Up Plan to complete this project phase. The Prado Interchange is a large and complex project and each phase of the project requires multiple years of effort.

The City is currently nearing the end of the PA/ED phase, but throughout PA/ED development staff have experienced times of insufficient consultant communication and accountability resulting in deliverable delays. Staff have resolved the immediate challenges with the consultant team and the project is meeting realistic schedule goals.

However, because of the critical timing of this project, in the event that the consultant’s performance becomes insufficient again, staff are seeking authorization with this report to hire new or additional consultants to serve as back up help to quickly deliver this phase of the project.

CEQA and NEPA Reviews. Staff and the consultant design teams are currently engaged in submitting the Project Report and Environmental Documents to Caltrans for their review. This is a major milestone in the process and allows the California Environmental Quality Act (CEQA) Document to begin public review. After the CEQA document is certified complete, the City will submit the Final Project Report declaring the City’s preferred alternative and desire to begin the PS&E phase of project delivery.

Value Analysis A Value Analysis is an important step in the PA/ED process that involves hiring a third-party consultant who is qualified to perform a five-day workshop with City and Caltrans staff. This process is a federal and state requirement for any project with a construction budget of $25 million or greater. The project scope, schedule, and budget will be discussed with the hopes of identifying cost and time savings. As these consultants are separate from the design team and specialized in nature, staff requests Council authorization to seek their services. The Value Analysis consultant will review the following preliminary design documents:

Structure width and roadway cross section
Structure span length, column dimensions and construction type Costs of each alternative
Design schedule
Construction schedule
Anticipated Right of Way Acquisition costs
This review will culminate in a report for City and Caltrans staff to discuss and implement.

Plans, Specifications, and Estimate (PS&E) Phase
The next phase of project development following completion of the PA/ED is final design, termed PS&E. After the preferred alternative is chosen and environmental documents certified, final design of the interchange can begin.

This will be another multi-year contract and requires several months of seeking and

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Item 6e
choosing a qualified consultant to assist City staff. In order to smoothly transition to the PS&E phase of this project, staff recommends authorization of consulting services to avoid administrative delay when the time comes to acquire those consultant services.

Schedule and Next Steps
The project delivery schedule is shown in the figure below.

City staff anticipate completing the PA/ED phase in 2024 and the signing of a Cooperative Agreement with Caltrans that year to start the PS&E design. During that time, staff will also search for a design consultant for the next project phase.

Once City and Caltrans staff agree that design work is complete, the PS&E phase will close and the project will be advertised for construction bids. Staff anticipate construction to begin at the end of the calendar year 2025.

Previous Council or Advisory Body Action
On July 17, 2018, City Council approved the Supplemental Environmental Impact Report (SEIR) for the San Luis Ranch Development (Staff Report, Minutes). The SEIR detailed the impacts of the development and need for the Prado Interchange Project. However, the San Luis Ranch development was allowed to proceed independent of the Prado Interchange schedule. Due to project complexity and project lead times necessary for project development as outlined in the Caltrans process, development of the Interchange project is not aligned with the build-out of San Luis Ranch.

On April 12, 2018, Caltrans and the City signed a cooperative agreement (Attachment B) pursuing PA/ED of the Prado Interchange project. The agreement laid out the responsibilities of financing, design, and project approval.

Public Engagement
Public engagement regarding the Prado Interchange was performed extensively as part of the San Luis Ranch Environmental Impact Report, authorized in 2018.

Future public engagement is planned as part of this project’s environmental document, including with the Initial Study – Mitigated Negative Declaration that is planned to be advertised to the public later this fall.

Fig. 1: Prado Interchange - Project Timeline to Construction Project Phase Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 PA/ED
PS&E
Advertise
Construction
FY 22/23 FY 23/24 FY 24/25 FY 25/26

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Item 6e

CONCURRENCE
Public Works concurs with the recommendations of this report. Caltrans concurs with the recommendation to hire a Value Analysis consultant.

ENVIRONMENTAL REVIEW
Both CEQA and Federal National Environmental Policy Act (NEPA) environmental reports are being prepared as part of the PA/ED phase. The Value Analysis is a third-party review of design and scheduling choices only.

Authorization of consulting services will not affect the recommendations of the CEQA nor NEPA documents.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-2022, 2022-2023,
Funding Identified: Yes 2023-2024
Fiscal Analysis:

As the Prado Interchange is a multi-phased legacy project, funding for the PA/ED Phase will be discussed separately from the PS&E Phase.

PA/ED Phase:

Funding was identified as part of the 2021-2023 Financial Plan for this phase of the project, of which there is adequate funding to continue the current design contract and seek Value Analysis services. Note that due to the uncertain nature of the work that could remain in the PA/ED phase should additional consultant services be required, all available unencumbered funds have been budgeted for these tasks as shown below:

Funding
Sources
Total Budget
Available
Current
Funding
Request (VA +
PA/ED)
Remaining
Balance
Annual
Ongoing
Cost
General Fund $500,000 $500,000 $0 N/A
State
Federal
Fees
Other:

Total $500,000 $500,000 $0 N/A

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Item 6e
PS&E Phase:

Funding for the PS&E Phase has been identified in the 2022-2023 fiscal year. Funding sources include an agreement between the City and County, as well as potential unsecured grant funding. Since the PS&E phase will not begin until 2024, staff will reassess funding needs during the upcoming budget cycle and incorporate in the 2023-25 Financial Plan. Updated construction estimates will also be sought to address the inflation currently seen in roadway construction. The current available funding is as follows:

Funding
Sources
Total Budget
Available
Current Funding
Request (PS&E)
Remaining
Balance
Annual
Ongoing
Cost
Local
Revenue
Measure
$1,910,000 $1,910,000 $0 N/A
Fees:

Transportation
Impact
$429,450 $429,450 $0 N/A
State
Federal
Other: Airport
Area Impact
Fee
$130,000 $130,000
Other: County $1,435,000 $1,435,000. $0
Total $3,904,450 $3,904,450 $0 N/A

ALTERNATIVES
Deny Authorization to Issue RFPs and Execute Agreements. Staff does not recommend this option as it would delay execution of this project. A Value Analysis is required to complete this project phase. Delay of the RFPs for any additional PA/ED services or the PS&E contract would result in further escalation of project cost.

ATTACHMENTS
A – RFP for Value Analysis for the Prado Interchange
B – PA/ED Agreement between City and Caltrans for the Prado Interchange

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Notice Requesting Proposals for Prado Interchange Value Analysis Specification No. 91613
The City of San Luis Obispo is requesting sealed proposals from interested consultants to provide for Value Analysis (VA) Services required for City projects pursuant to Specification No. 91613. The City proposes to select one qualified consultants to perform these services for the duration of the study.

Description of Services:

In general, the successful applicant will provide a Value Analysis for the Prado Interchange Project consistent with California Department of Transportation (Caltrans) standards. This includes a Pre-Study meeting with site visit, creation of VA metrics, draft recommendations and presentation to a VA team. The VA team will meet over the course of 4-7 days, during which the consultant will steer the team into reviewing and recommending actionable improvements to the project. This process will culminate in a draft and final report, which the City will review and respond to.

The City will follow the typical Request for Proposal (RFP) process, and request two (2) separate submittals. One submittal shall contain the project understanding, approach and team. The other proposal, separately sealed, shall contain the fee and schedule information. City staff will not open the Fee and Schedule proposal if the consultant is not chosen, and will return the sealed envelope. The consultant ranked 2nd will keep their sealed proposal in case an agreement cannot be reached with the 1st ranked consultant, for (3) months.

Qualification Submittal Deadline:

Sealed qualification submittals shall be mailed to the following address:

City of San Luis Obispo
Public Works Administration
Attn: Wyatt Banker-Hix
919 Palm Street
San Luis Obispo, CA 93401
Ensure each the Fee and Schedule submittal is separately sealed. Qualification submittals delivered in person will not be accepted. All mailed bids must be delivered and in possession of the project manager by 5:00 P.M. on September 23rd, 2022.

Submittals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Public Works Department in a sealed envelope plainly marked with the following:
 RFP title
 Specification number
 Consultant name
 Time and date of the proposal opening
 Either “Project Understanding/Approach” or “Fee and Schedule” titles Proposals shall be submitted using the forms provided in the specification package.

Obtaining a Specification Package
 Download from the City’s Web site www.slocity.org - Doing Business / Bids & Proposals page.

A list of companies that have requested a copy of the proposal is maintained on the web page.

Questions
Contact Wyatt Banker-Hix at (805) 783-7859 or [email protected] with any questions regarding this Request for Proposals.

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Specification No. 1000550

TABLE OF CONTENTS
DESCRIPTION OF WORK ...........................................................................................................................................3 PROPOSAL CONTENT AND SELECTION PROCESS...............................................................................................8 PROPOSAL CONTENT ...........................................................................................................................................8 PROPOSAL EVALUATION AND CONSULTANT SELECTION ..............................................................................8 FORM OF AGREEMENT............................................................................................................................................10 PROPOSAL SUBMITTAL FORMS.............................................................................................................................17 ACKNOWLEDGEMENT .........................................................................................................................................17 INSURANCE CERTIFICATE..................................................................................................................................17 STATEMENT OF PAST CONTRACT DISQUALIFICATIONS...............................................................................18 REFERENCES .......................................................................................................................................................18 INSURANCE REQUIREMENTS: Consultant Services .............................................................................................20

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Section A

DESCRIPTION OF WORK
The City is looking for a consultant team to guide the City team through the successful Value Analysis process.

PROJECT BACKGROUND:

The City of San Luis Obispo is growing in the southern half of City limits. There are multiple residential, mixed use and commercial developments proposed, in design and in construction throughout the City, but most are concentrated in the south east quadrant of the City. Staff anticipates traffic to increase significantly along Prado Road, and is in the process of delivering a new interchange in that area:

At the intersection of Highway 101 and Prado Road there is an existing, at-grade interchange. This includes a north bound on and off ramp (both at-grade) as well as the intersection of Elks Lane, a local City street. In order to accommodate growth, relieve traffic throughout the City and along the highway, as well as provide a more efficient cross town connection, City staff are working on the design of a new interchange at that location. The new interchange will include an overcrossing over Highway 101, elevated north bound on and off ramps, a relocated Elks Lane and the widening of Prado Road up to the new Prado Bridge. Due to regional flooding concerns, the entire elevated portion of the project will be on columns (viaducts) instead of fill slopes, resulting in dozens of columns and major bridge work.

While City forces lead the project, Caltrans is a valued partner who will assume maintenance duties after completion, and will need to be consulted throughout the design process. There are also regional partners who have contributed funding towards this project, namely San Luis Obispo County and the San Luis Obispo Council of Governments (SLOCOG) who will need to be appraised of design decisions. Multiple properties, including a residential development under construction, a regional bus and a homeless shelter, as well as commercial facilities are located near the project limits.

Due to Caltrans involvement, the City is following Caltrans Interchange delivery standards, and is currently in the PA/ED phase (Project Alternatives/Environmental Document). Different types of interchanges are currently being considered, with a chosen alternative predicted in 2023. After that, a new contract for final design services will be advertised, with construction ultimately anticipated to begin in 2025.

Staff anticipates the Value Analysis process to begin in the Fall of 2022 and end later that year. Said Value Analysis must follow the Caltrans VA Program guidelines found at Value Analysis | Caltrans. Both Caltrans and City staff will be involved throughout the VA process, including consultant selection.

PROJECT SCOPE:

The City seeks a Certified Value Specialist (CVS) as defined by SAVE International® to lead the project team through a federally mandated VA Study for the Prado Interchange. City understanding of the VA process is as follows:

1. Selection of VA Consultant by City staff.

2. City, Caltrans and Consultant staff will meet to establish performance metrics, develop VA team, review impacts, set limitations, and discuss logistics for a successful project (Pre-Study Meeting)

3. VA Consultant will lead team through the Caltrans VA activities (including a site visit) to draft recommendations which best meets the needs of the project.

4. VA team meets with wider project team to review recommendations and discuss potential project scope, schedule and budget changes:
a. Anticipate City, Caltrans and outside agency staff and administration to be present b. Budget 5 days of intensive workshops in person. City staff will coordinate location.

5. Consultant produces draft VA report with VA team input

6. Stakeholders/Decision makers reviews draft VA report to decide on implementation

7. Consultant produces final VA report for City and Caltrans review. Include which recommendations the decision makers choose to implement and their reasoning CONSULTANT SCOPE OF WORK:

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Please submit a proposal for providing Value Analysis services per the Caltrans VA program:
 Preparation Phase
 VA Study Workshop
 Determine Disposition
 Report Results
Required Deliverables:

Project Management:
 Meeting agendas and minutes for all consultant-lead meetings. Action items must be included with follow up dates
 Weekly correspondence with City Project Manager, either as an e-mail, meeting or phone call to review action items
 Detailed schedule showing action items and anticipated timelines. Expect to update schedule after major milestones
 Monthly meetings between consultant and City team to review progress made, discuss items requiring City input, and review action items. Note there are existing standing meetings between project staff that could be utilized.

Preparation:
 Attend 2-hour meeting with project leads and team leader to define roles and responsibilities, study goals and objectives. This includes:
o Draft Study Charter
o Confirm team selection
o Identify team roles (stake holders, technical reviewers….) o Data collection and study dates
o Performance requirements
o Distribution of necessary project data and construction cost models VA Study Workshop:
 Kickoff meeting with City, Caltrans, Consultant and other stakeholders  Presentation to team
o Design concept
o Stakeholder interests
o Project issues and objectives
o Design Exceptions
o Rate baseline concept
o (1) Site Visit by VA team
 Analyze project data, include FAST diagram, risks and cost drivers  Ideation session with team
 Evaluation of ideas
 Development of project alternatives
o Cost/benefits
o Concept sketches and calculations
 Critique alternatives
 Present alternatives to team and administration
Determine Disposition:
 Document VA Study
o Process and Study Findings
o Summary Report
o Preliminary Findings
o Distribute report
 Assess Alternatives
o Assist as needed (mostly completed by City and Caltrans project team)  Resolve Alternatives
o Review implementation dispositions
o Implementation meeting

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o Resolve implementation actions
o Document decisions
o Develop Implementation Action Memo
 Finalize Alternatives
o Meet with Project Manager to discuss alternatives
o Resolve any conditionally accepted alternatives
o Develop implementation plan
o Authorize implementation plan
o Final presentation of study results
Report Results
 Publish Results
o Document process and study
o Incoporate all comments and implementation plan
o Create and distribute Final VA Study Report
o Submit Final Report to Caltrans Headquarters for FHWA audit The City and Caltrans will partner to provide review comments for each deliverable, with a timeframe of approximately 4 weeks depending on size and complexity.

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Section B

GENERAL TERMS AND CONDITIONS

PROPOSAL REQUIREMENTS

1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (Consultant) shall meet all of the terms, and conditions of the Request for Proposal (RFP) specifications package. By virtue of its proposal submittal, the Consultant acknowledges agreement with and acceptance of all provisions of the RFP specifications.

2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the Public Works Department, City of San Luis Obispo, 919 Palm Street, San Luis Obispo, CA, 93401. A separate sealed envelope shall include the fee and schedule proposal. Each proposal submittal shall include one electronic copy of the proposal, submitted in Adobe Acrobat format on CD or flash drive. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of Consultant, and date and time of proposal opening. Ensure the Fee and Schedule proposal is clearly labeled to prevent confusion. No FAX submittals will be accepted.

The purpose of this submittal is to generally assess the adequacy of the Consultant’s insurance coverage during proposal evaluation; as discussed under paragraph 13 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section F.

4. Submittal of References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package.

5. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past government disqualifications on the form provided in the RFP package.

6. Proposal Withdrawal and Opening. A Consultant may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the City Engineer for its withdrawal, in which event the proposal will be returned to the Consultant unopened. No proposal received after the time specified or at any place other than that stated in the "Notice Requesting Qualifications" will be considered. All proposals will be opened and declared publicly. Consultants or their representatives are invited to be present at the opening of the proposals.

7. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a Consultant submitting a proposal, or who has quoted prices on materials to such Consultant, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other Consultants submitting proposals.

8. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However, any such oral communication shall not be binding on the City.

9. Alternative Proposals. When specifically requested, the proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternatives, and discuss under what circumstances the City would prefer one alternative to the other(s). If an alternative proposal is submitted, the maximum length of the proposal may be expanded proportionately by the number of alternatives submitted.

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CONTRACT AWARD AND EXECUTION

10. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 60 days for examination and comparison. The City also reserves the right to waive non substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "Special Terms and Conditions" in Section C of these specifications for proposal evaluation and contract award criteria.

11. Competency and Responsibility of Consultant. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of Consultants. Consultants will provide, in a timely manner, all information that the City deems necessary to make such a decision.

12. Contract Requirement. The Consultant to whom award is made (Consultant) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications.

13. Insurance Requirements. The Consultant shall provide proof of insurance in the form, coverages and amounts specified in Section F of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution.

14. Business License & Tax. The Consultant must have a valid City of San Luis Obispo business license and tax certificate before execution of the contract. Additional information regarding the City's business license and tax program may be obtained by calling (805) 781-7134.

15. Failure to Accept Contract. The following will occur if the Consultant to whom the award is made (Consultant) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a Consultant's bond or security is required; and an award may be made to the next highest ranked Consultant with whom a responsible compensation is negotiated, who shall fulfill every stipulation as if it were the party to whom the first award was made.

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Section C

PROPOSAL CONTENT AND SELECTION PROCESS

PROPOSAL CONTENT

1. Submittal Forms
a. Acknowledgement
b. Certificate of Insurance
c. References
d. Statement of Past Disqualifications

2. Qualifications
a. VA team leader must be a CVS.
b. Understanding of the project and team’s approach in project delivery. c. Experience of your firm in performing Value Analysis work per Caltrans guidelines. d. Experience of the staff to be assigned to this work in performing similar services. e. Redundancy in the project team who are experienced in this type of work. f. Resumes of the individuals who would be assigned to the project team. g. Proximity and staffing levels to the City of San Luis Obispo. h. Statement and explanation of any instances where your firm has been removed from a project or disqualified from proposing on a project.
i. Detailed list of services available directly from your team available to this project. j. Project Fee and Schedule, including biling rates for team (Separate, sealed submission to be opened only if chosen)

3. Work Program
a. Description of your approach to working with City staff to achieve their goal of completing the assigned project on schedule.
b. Services or data anticipated to be provided by the City. c. Any other information that would assist us in making this contract award decision.

4. Proposal Length and Copies
a. Qualification proposals should be the minimum length to provide the required information. Charts and other short form approaches to conveying information are encouraged. b. Three (3) copies of the proposal must be submitted. Submit (3) copies of the Fee and Schedule Proposal, separately sealed
c. One PDF format electronic copy must be submitted on flash drive. One PDF shall be submitted on flash drive for the Fee and Schedule Proposal, sealed with it’s hard copy to prevent confusion.

PROPOSAL EVALUATION AND CONSULTANT SELECTION
Qualification proposals will be evaluated by a review committee and contract award process as follows:

5. Written Proposal Review/Finalist Candidate Selection Evaluation of the qualification proposals will be based on the following qualifications:

1. Understanding of the work involved in providing a Value Analysis services per Caltrans guidelines for an Interchange.

2. Demonstrated competence, professional qualifications of proposed staff.

3. Recent experience in successfully performing similar services.

4. Responses from provided references.

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Qualification proposals will be reviewed by a selection committee and ranked in accordance with the above criteria. Where one or more qualification proposals are rated consistently higher than others, the consultants may be selected as the top ranked consultants for purposes of contract negotiation.

Alternatively, a group of finalist candidates (generally the top 3) may be selected for follow-up interviews and presentations, or requests for additional clarifying information, before the final top ranked consultants for contract negotiation are determined.Interviews are performed as follows:

1. Company presentation – staff, project understanding and approach – 20 min

2. 5-10 Questions – 35 min

3. Closing statement – 5min

6. Proposal Review and Award Schedule
The following is an outline of the anticipated schedule for proposal review and contract award:

Issue RFP......................................................August 26, 2022 Receive qualification proposals.........................Sept 23, 2022 Complete proposal evaluation............................ Oct 14, 2022 Award contract.................................................... Oct 28, 2022 Execute contract.................................................Nov 15, 2022

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Section D

FORM OF AGREEMENT

AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on _____________ by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONSULTANT’S NAME IN CAPITAL LETTERS], hereinafter referred to as Consultant.

W I T N E S S E T H
WHEREAS, on ___________, requested proposals for _______________.

WHEREAS, pursuant to said request, Consultant submitted a proposal that was accepted by City for said services.

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. Contract Term. The term of this agreement shall be from the date this Agreement is made and entered, as first written above, until acceptance and completion of said services.

2. Incorporation by Reference. City Specification No. ______ and Contractor's proposal dated [date] is hereby incorporated in and made a part of this Agreement and attached as Exhibit A.

3. Consultants’ Obligations. For and in consideration of the payments and Agreements herein before mentioned to be made and performed by City, Consultant agrees with City to provide services as set forth in ______

4. Cost Increases. Labor rates during the contract term may be increased on an annual basis to reflect projected increases in labor costs and overhead provided those increases are incorporated into the Consultant’s Proposal, which is incorporated into this agreement by reference.

5. Work Delays. Should the Consultant be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Consultant. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same.

6. Termination for Cause. If, during the term of the contract, the City determines that the Consultant is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency.

If the Consultant has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Consultant to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Consultant's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof.

In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from

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such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Consultant shall be based solely on the City's assessment of the value of the workin-progress in completing the overall workscope.

The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the compensation quoted in its proposal.

7. Termination for Convenience. The City also reserves the right to terminate the contract for convenience, providing a 30 (thirty) calendar day notice, at any time upon a determination by the Director that termination of the contract is in the best interest of the City. Upon termination notice from the City, Consultant must, unless otherwise directed, cease work and follow the City’s directions as to work in progress and finished goods. For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination.

8. Ability to Perform. The Consultant warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all applicable federal, state, county, city, and special district laws, ordinances, and regulations.

9. Sub-contract Provisions. No portion of the work pertinent to this contract shall be subcontracted without written authorization by the City, except that which is expressly identified in the Consultant’s proposal. Any substitution of sub-consultants must be approved in writing by the City. For any sub-contract for services in excess of $25,000, the subcontract shall contain all provisions of this agreement.

10. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City.

11. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to ascertain that the services of the Consultant are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval.

The inspection of such work shall not relieve Consultant of any of its obligations to fulfill its contract requirements.

12. Record Retention and Audit. For the purpose of determining compliance with various laws and regulations as well as performance of the contract, the Consultant and sub-consultants shall maintain all books, documents, papers, accounting records and other evidence pertaining to the performance of the contract, including but not limited to the cost of administering the contract. Materials shall be made available at their respective offices at all reasonable times during the contract period and for three years from the date of final payment under the contract. Authorized representatives of the City shall have the option of inspecting and/or auditing all records.

For Federally funded projects, access to records shall also include authorized representatives of the State and Federal government. Copies shall be furnished if requested.

13. Conflict of Interest. The Consultant shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this contract, or any ensuing City construction project. The Consultant shall also list current clients who may have a financial interest in the outcome of this contract, or any ensuing City construction project which will follow. The Consultant staff shall provide a Conflict of Interest Statement where determined necessary by the City.

The Consultant covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Consultant further covenants that, in the performance of this work, no sub-consultant or person having such an interest shall be employed. The Consultant certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Consultant shall at all times be deemed an independent Consultant and not an agent or employee of the City.

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14. Rebates, Kickbacks or Other Unlawful Consideration. The Consultant warrants that this contract was not obtained or secured through rebates, kickbacks or other unlawful consideration, either promised or paid to any City employee. For breach or violation of the warranty, the City shall have the right in its discretion; to terminate the contract without liability; to pay only for the value of the work actually performed; to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.

15. Covenant Against Contingent Fees. The Consultant warrants by execution of this contract that no person or selling agency has been employed, or retained, to solicit or secure this contract upon an agreement or understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Consultant for the purpose of securing business. For breach or violation of this warranty, the City has the right to annul this contract without liability; pay only for the value of the work actually performed, or in its discretion, to deduct from the contract price or consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.

16. Compliance with Laws and Wage Rates. The Consultant shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. This includes compliance with prevailing wage rates and their payment in accordance with California Labor Code. For purposed of this paragraph, “construction” includes work performed during the design and preconstruction phases of construction, including but not limited to, inspection and land surveying work.

17. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Consultant is required to pay.

18. Permits, Licenses and Filing Fees. The Consultant shall procure all permits and licenses, pay all charges and fees, and file all notices as they pertain to the completion of the Consultant’s work. The City will pay all application fees for permits required for the completion of the project including building and regulatory permit application fees. Consultant will provide a 10 day notice for the City to issue a check.

19. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

20. Public and Employee Safety. Whenever the Consultant's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees.

21. Preservation of City Property. The Consultant shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Consultant's operations, it shall be replaced or restored at the Consultant's expense. The facilities shall be replaced or restored to a condition as good as when the Consultant began work.

22. Immigration Act of 1986. The Consultant warrants on behalf of itself and all sub-consultants engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.

23. Consultant Non-Discrimination. In the award of subcontracts or in performance of this work, the Consultant agrees that it will not engage in, nor permit such sub-consultants as it may employ, to engage in discrimination in employment of persons on any basis prohibited by State or Federal law.

24. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. Consultants are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the Consultant and all sub-consultants named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the specifications will be as determined by law, any patent ambiguity or defect shall give rise to a

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duty of Consultant to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the Consultant. An ambiguity or defect shall be considered patent if it is of such a nature that the Consultant, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the Consultant or sub-consultants to notify City in writing of specification defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal.

To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful Consultant to achieve the project’s objective or standard beyond the amounts provided therefor in the proposal.

In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the specifications, or any other matter whatsoever, Consultant shall immediately notify the City in writing, and the Consultant and all sub-consultants shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of Consultant's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute.

25. Hold Harmless and 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), Consultant 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 the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the 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), Consultant 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 the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, except for such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. (c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope of Services require Consultant 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) Consultant shall indemnify, defend and hold harmless the 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 Consultant, except to the extent caused by the sole negligence, active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In

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the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the 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 Consultant under this paragraph exceed Consultant’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, Consultant shall meet and confer with other parties regarding unpaid defense costs.

(d) The review, acceptance or approval of the Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the services or the termination of this contract. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance.

26. Non-Exclusive Contract. The City reserves the right to contract for the services listed in this proposal from other consultants during the contract term.

27. Standards. Documents shall conform to City Standards and City furnished templates shall be used.

28. Consultant Endorsement. Technical reports shall be signed by the Consultant where required.

29. Required Deliverable Products and Revisions. The Consultant will be required to provide documents addressing all elements of the workscope.

City staff will review any documents or materials provided by the Consultant and, where necessary, the Consultant will respond to staff comments and make such changes as deemed appropriate. Submittals shall include the previous marked up submittal (returned to the Consultant) to assist in the second review. Changes shall be made as requested or a notation made as to why the change is not appropriate. 2 copies of the draft Value Analysis Report
2 copies of the final Value Analysis Report
Draft reports and plan submittals shall be submitted as digital and paper copies when requested.

Final documents shall be submitted as one electronic copy submitted in Adobe Acrobat format including all original signatures.

Electronic files shall be submitted on flashdrives and all files must be compatible with the Microsoft operating system. Each flashdrive must be clearly labeled and have a printed copy of the directory. Files may be emailed to the City in lieu of putting them on flashdrive.

30. Ownership of Materials. Upon completion of all work under this contract, ownership and title to all reports, documents, plans, specifications, and estimates produced as part of this contract will automatically be vested in the city and no further agreement will be necessary to transfer ownership to the City. The Consultant shall furnish the City all necessary copies of data needed to complete the review and approval process.

It is understood and agreed that all calculations, drawings and specifications, whether in hard copy or machine readable form, are intended for one-time use in the construction of the project for which this contract has been entered into.

The Consultant is not liable for claims, liabilities, or losses arising out of, or connected with the modification, or misuse by the City of the machine-readable information and data provided by the Consultant under this agreement. Further, the Consultant is not liable for claims, liabilities, or losses arising out of, or connected with any use by City of the project documentation on other projects, except such use as may be authorized in writing by the Consultant.

31. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Consultant as part of the work or services under these specifications shall be the property of City and shall not be made available to any individual or organization by the Consultant without the prior written approval of the City.

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The Consultant shall not issue any news release or public relations item of any nature, whatsoever, regarding work performed or to be performed under this contract without prior review of the contents thereof by the City and receipt of the City’s written permission.

32. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Consultant is required to furnish in limited quantities as part of the work or services under these specifications, the Consultant shall provide such additional copies as are requested, and City shall compensate the Consultant for the costs of duplicating of such copies at the Consultant's direct expense.

33. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is attendance by the Consultant at up to 2 site visits and up to 5 8 hour meetings to present and discuss its findings and recommendations. Consultant shall attend as many "working" meetings with staff as necessary in performing workscope tasks.

34. Requests for Review. The Consultant shall respond to all requests for submittal review or contractor RFI’s within two weeks of receipt of the information from the City.

35. Project Proposal Submittal. Upon completion of the project scoping meeting, the Consultant shall submit a proposed workscope, compensation and schedule within 10 working days. The cost proposal shall include all costs including miscellaneous direct cost items.

36. Consultant Invoices. The Consultant shall deliver a monthly invoice to the City, itemized by project work phase or. Invoice must include a breakdown of hours billed and miscellaneous charges and any sub-consultant invoices, similarly broken down, as supporting detail.

37. Payment. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefore compensation in a total sum not to exceed the individual agreed upon project fee. Should the Consultant’s designs, drawings or specifications contain errors or deficiencies, the Consultant shall be required to correct them at no increase in cost to the City.

The Consultant shall be reimbursed for hours worked at the hourly rates attached to this agreement. Hourly rates include direct salary costs, employee benefits, overhead and fee. In addition, the Consultant shall be reimbursed for direct costs other than salary and vehicle cost that have been identified and are attached to this agreement.

The Consultant’s personnel shall be reimbursed for per diem expenses at a rate not to exceed that currently authorized for State employees under State Department of Personnel Administration rules.

38. Payment Terms. The City's payment terms are 30 days from the receipt and approval by the City of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Consultant (Net 30).

39. Resolution of Disputes. Any dispute, other than audit, concerning a question of fact arising under this contract that is not disposed of by agreement shall be decided by a committee consisting of the City’s Project Manager and the City Director of Public Works, who may consider written or verbal information submitted by the Consultant. Not later than thirty days after completion of all deliverables necessary to complete the plans, specifications and estimate, the Consultant may request review by the City Council of unresolved claims or disputes, other than audit, in accordance with Chapter 1.20 Appeals Procedure of the Municipal Code.

Any dispute concerning a question of fact arising under an audit of this contract that is not disposed of by agreement, shall be reviewed by the City’s Chief Fiscal Officer. Not later than 30 days after issuance of the final audit report, the Consultant may request a review by the City’s Chief Fiscal Officer of unresolved audit issues.

The request for review must be submitted in writing.

Neither the pendency of a dispute, nor its consideration by the City will excuse the consultant from full and timely performance in accordance with the terms of this contract. .

40. Agreement Parties.

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City: Wyatt Banker-Hix
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Consultant:

All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as shown above.

41. Amendments. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager.

42. Working Out of Scope. If, at any time during the project, the consultant is directed to do work by persons other than the City Project Manager and the Consultant believes that the work is outside of the scope of the original contract, the Consultant shall inform the Project Manager immediately. If the Project Manager and Consultant both agree that the work is outside of the project scope and is necessary to the successful completion of the project, then a fee will be established for such work based on Consultant's hourly billing rates or a lump sum price agreed upon between the City and the Consultant. Any extra work performed by Consultant without prior written approval from the City Project Manager shall be at Consultant's own expense.

43. Complete Agreement. This written agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto.

For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement, the said specification and incorporated documents.

Authority to Execute Agreement. Both City and Consultant do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.

CITY OF SAN LUIS OBISPO: CONSULTANT:
___________________________________
Name of Company
___________________________________
Derek Johnson, City Manager By:

Name of CAO/President
Its: CAO/President
APPROVED AS TO FORM:
___________________________________
Christine Dietrick, City Attorney
(2nd signature required if Corporation):
________________________________
By:

Name of Corporate Officer
Its: ____________________

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Section E

PROPOSAL SUBMITTAL FORMS

ACKNOWLEDGEMENT
The undersigned declares that she or he:
 Has carefully examined Specification No. 91613 and 91252  Is thoroughly familiar with its content.
 Is authorized to represent the proposing firm; and
 Agrees to perform the work as set forth in the specification and this proposal.

Firm Name and Address:

Contact Name:

Email: Fax: Phone:

Signature of Authorized Representative: Date:

INSURANCE CERTIFICATE
Insurance Company’s A.M. Best Rating
Certificate of insurance attached

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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The Consultant shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances.

Do you have any disqualification as described in the above paragraph to declare? Yes No If yes, explain the circumstances.

Executed on ______________________at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________
Signature of Authorized Consultant Representative

REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the present business name: _________
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications.

Reference No. 1
Customer Name
Contact Individual
Telephone & Email
Street Address
City, State, Zip Code
Date of Services
Contract Amount
Description of Services
Project Outcome

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Reference No. 2
Customer Name
Contact Individual
Telephone & Email
Street Address
City, State, Zip Code
Date of Services
Contract Amount
Description of Services
Project Outcome
Reference No. 3
Customer Name
Contact Individual
Telephone & Email
Street Address
City, State, Zip Code
Date of Services
Contract Amount
Description of Services
Project Outcome

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Section F
INSURANCE REQUIREMENTS: Consultant Services
The Consultant shall procure and maintain for the duration of the contract 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 the Consultant, its agents, representatives, employees or sub-consultants.

Minimum Scope of Insurance. Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 20 10 Prior to 1993 or CG 20 10 07 04 with CG 20 37 10 01 or the exact equivalent as determined by the City).

2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.

Minimum Limits of Insurance. Consultant shall maintain limits no less than:

1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.

4. Errors and Omissions Liability: $1,000,000 per occurrence.

Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects:
liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers.

2. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.

3. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. The Consultant agrees to notify the City in the event that the policy is suspended, voided or reduced in coverage or limits. A minimum of 30 days prior written notice by certified mail, return receipt requested, will be provided.

Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences.

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Item 6f
Department: Public Works
Cost Center: 5010
For Agenda of: 8/16/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Emily Jackson, CIP Process Improvement Manager SUBJECT: APPROVE AN AMENDMENT TO THE FUNDING AGREEMENT WITH

THE COUNTY OF SAN LUIS OBISPO FOR THE PRADO ROAD

INTERCHANGE

RECOMMENDATION
Approve Amendment No. 1 to the Funding Agreement with the County of San Luis Obispo for its contribution of $1,435,260 towards construction of the Prado Road Interchange to extend the term of the Agreement and authorize the City Manager to execute the Amendment.

POLICY CONTEXT
As part of the City’s Circulation Element Program 9.2.2 and Table 5, the Prado Road Interchange is listed as a critical infrastructure improvement to support multimodal traffic generated by the City’s planned development and development outside the City. The San Luis Ranch Specific Plan Chapter 7 and Environmental Impact Report (EIR) revalidated these findings, established fair share proportionality, and determined when the interchange was needed in relationship to San Luis Ranch’s development progress.

Table 6 of the San Luis Ranch Development agreement establishes the funding plan for both phases of the interchange.

In June 2018, a Supplemental EIR was approved by City Council, separating the Prado Interchange project as a schedule constraint upon San Luis Ranch’s development progress, but confirming the funding plan.

DISCUSSION
Background
On September 3, 2019, the City Council authorized the City Manager to execute a funding agreement (“Agreement”) with the County of San Luis Obispo which obligated the County to contribute $1,435,260 towards construction of the Prado Road Interchange Overpass.

The contribution from the County represents a portion of the regional share of cost for the project, based upon interchange traffic forecasts for traffic with origins or destinations outside of the City.

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Item 6f
The County’s share supplements $6 million of funding from the San Luis Obispo Council of Governments (SLOCOG) which was programmed as part of the Regional Transportation Improvement Program (RTIP). The $1,435,260 contribution from the County is to be made upon notice that the City is ready to initiate the Plans, Specifications, and Estimates (PSE) and Right-of-Way (R/W) phases of the project. The County Board of Supervisors approved the Agreement on December 17, 2019.

The original Agreement had a term of 30 months which began on September 1, 2019 and included an option to extend for an additional 12 months. The 30-month term expired on March 1, 2022, and due to project delays, City staff initiated discussions with the County to amend the Agreement to extend the term beyond the additional 12-month extension.

At the time the Agreement was executed, it was expected that the City would initiate PSE and R/W in May 2020. It is currently estimated that those phases will begin in January 2024.

The recommended amendment (Attachment A) to the Agreement ties the County’s contribution to the initiation of the PSE and R/W phases of the project. The amendment also provides that if the City does not begin those phases by June 30, 2027 (42 months beyond the current estimate), the County reserves the right to terminate the Agreement and release the designated $1,435,260 back to its General Fund, following an opportunity for the City to meet and confer with the County and consideration of a written request for additional extension by the City, if necessary.

Previous Council or Advisory Body Action
The City Council previously approved the original Agreement on September 3, 2019 (Staff Report, Minutes).

Public Engagement
Extensive Public Engagement regarding the Prado Road Interchange was conducted as part of the San Luis Ranch Environmental Impact Report, which was certified by Council on July 18, 2017, and Development Agreement which was adopted by Council on August 21, 2018.

CONCURRENCE
The City Attorney has reviewed the amendment for legal form and effect. The County of San Luis Obispo concurs with the recommended amendment, and it is expected that the Board of Supervisors will authorize extension of the Agreement at a meeting following the City Council’s approval of the amendment.

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Item 6f

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the Agreement as it does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: No Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:

Funding Sources
Total
Budget
Available*
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $2,410,000 $0 $0 $0
Other: Transportation
Impact Fee
$1,685,520 $0 $0 $0
Other: Airport Area Impact
Fee
$130,000
Other: County
Contribution
$1,435,260 $0 $0 $0
Total $5,660,780 $0 $0 $0
* Total budget available for the General Fund, Traffic Impact Fees, San Luis Ranch contribution and Airport Area Impact Fees reflects what has been appropriated to the project for PSE and R/W, not total balances of each funding source or total cost for the overall project.

The County’s contribution will be made upon initiation of the PSE and R/W phases of the project and will be appropriated to the project budget at that time. As of the writing of this report, the City has appropriated $4,225,520 for those two phases of the project for a total funding of $5,660,780. Based on current Engineer’s estimates, this should be sufficient funding to cover the cost for PSE and R/W. However, due to cost escalation and the possibility of unanticipated project delays, additional funding may be needed. Staff will continue to monitor the budget for these phases of the project and will consider whether additional funding is needed with development of the 2023-25 Financial Plan.

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Item 6f

ALTERNATIVES
Do not authorize the City Manager to execute Amendment 1 to the Agreement. The Council may choose not to authorize the City Manager to execute the amendment to the Agreement. Staff does not recommend this alternative as the term of the original Agreement has expired and the option to extend does not provide enough time for the City to initiate the PSE and R/W phases, which are currently anticipated to begin in January 2024. Without a funding agreement in place, the County will no longer be obligated to contribute $1,435,260 toward construction of the overpass for the Prado Road/Hwy 101 Interchange, which will increase the funding deficit for this critical project and require the City either to obtain additional grant funding, which is uncertain, or subsidize the project with general fund money.

ATTACHMENTS
A – Prado Interchange Funding Agreement Amendment No. 1

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Page 1 of 3 ends

AMENDMENT NO. 1 TO HIGHWAY 101/PRADO ROAD INTERCHANGE FUNDING AGREEMENT

AGREEMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO

AND THE CITY OF SAN LUIS OBISPO
This Amendment No. 1 to the Agreement Between the County of San Luis Obispo and the City of San Luis Obispo (“Amendment No. 1”) is made this ____ day of ____________, 2022 (the “Effective Date”), by and between the County of San Luis Obispo (“County”) and the City of San Luis Obispo (“City”).

WHEREAS, on December 19, 2019, the County and the City entered into an agreement (the “Original Agreement”) wherein the County agreed to contribute $1,435,260 towards the construction of the Highway 101/Prado Road Interchange Overpass (“Project”); WHEREAS, the Original Agreement has a term of thirty months beginning September 19, 2019, with a 12 month extension for a total of 42 months;
WHEREAS, the City intendsto initiate the Plans, Specifications and Estimates (PSE) and Right of Way (R/W) phases of the Project on or about January 1, 2024, instead of May 1, 2020 as per the Original Agreement, due to delays in the Project;
WHEREAS, the City has therefore requested an amendment to the Original Agreement to tie funding to project phases, to accommodate any potential future project delays; WHEREAS, the City finds that it is in its best interests to agree to extend the agreement to contribute to the building of this infrastructure;
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and County agree as follows:

1. Recitals. The above recitals are true and correct and incorporated herein by this reference.

2. Amendment to Original Agreement. Section 3 of the Original Agreement is hereby amended as follows:

TERM OF AGREEMENT
The term of this Agreement shall automatically terminate upon the County’s contribution of its share of cost ($1,435,260) to the City. County funding is tied to Plans, Specifications and Estimates (PSE) and right of Way (R/W) phases of the project, which the City currently anticipates to begin in January 2024. If the City does not begin the PSE and R/W phases of the project by June 30, 2027, the County reserves the right to terminate this Agreement and release the designated $1,435,260 back to the General Fund for the County’s use, following an opportunity for the City to meet and confer with the County and consideration of a written request for extension by the City should such an extension become necessary due to project contingencies.

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Amendment No. 1 to Highway 101/Prado Road Interchange Funding Agreement

Page 2 of 3 ends

3. Original Agreement. Except as amended in this Amendment No. 1, all terms and conditions in the Original Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 by their duly authorized officers as of the Effective Date.

COUNTY OF SAN LUIS OBISPO
BY: _________________________________
Bruce Gibson, Board Chair

AUTHORIZED BY BOARD ACTION
________________________, 2022
ATTEST

WADE HORTON
Ex-Officio Clerk of the Board of Supervisors
By: __________________________________
Annette Ramirez, Deputy Clerk

APPROVED AS TO FORM AND LEGAL EFFECT
RITA L. NEAL
County Counsel
By: ___________________________________
Jon Ansolabehere, Assistant County Counsel
Date: ________________________

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Amendment No. 1 to Highway 101/Prado Road Interchange Funding Agreement

Page 3 of 3 ends

CITY OF SAN LUIS OBISPO
By: _____________________________
Derek Johnson, City Manager
Date: _______________________

APPROVED AS TO FORM AND LEGAL EFFECT
J. CHRISTINE DIETRICK
City Attorney
By: __________________________
J. Christine Dietrick, City Attorney
Date: _______________________

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Item 6g
Department: Fire
Cost Center: 8599
For Agenda of: 8/16/2022
Placement: Consent
Estimated Time: N/A
FROM: Keith Aggson, Fire Chief
Prepared By: James Blattler, Emergency Manager
SUBJECT: AUTHORIZE THE FIRE DEPARTMENT TO APPLY FOR FUELS

REDUCTION PROJECT GRANT FUNDING THROUGH THE READY,
SET, GO! PROGRAM

RECOMMENDATION

1. Authorize the Fire Department to apply to the Ready, Set, Go! Program’s Fuels Reduction Project Grant Funding for a grant in the amount of $10,000 to conduct fuel reduction work along the East Fork of the San Luis Obispo Creek; and

2. Authorize the City Manager, or their designee, to execute the grant documents and approve the budget changes necessary to appropriate the grant amount upon notification that the grant has been awarded.

POLICY CONTEXT
The recommended actions are consistent with the City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant Management Policy. The policy states that Council will approve all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager.

The work conducted under the grant is in line with the City’s Major City Goal of Climate Action, Open Space, and Sustainable Transportation by proactively addressing the climate crisis through fire and flood hazard mitigation efforts and improved resilience.

DISCUSSION
State, federal, and non-profit grants are occasionally offered to assist local governments with the financial impacts associated with daily operations and/or mandated programs.

The Fire Department actively seeks out these opportunities to enhance the effectiveness of the Department while increasing fiscal sustainability for the City. A recent grant opportunity was identified, which is in line with these goals and addresses a current need for the City: the International Association of Fire Chiefs (IAFC) Ready, Set, Go! Program Fuels Reduction Project Grants. A maximum of $10,000 per department is available to help cover the cost of department staffing, equipment rentals, and/or contractual services related to wildfire fuel reduction efforts.

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Item 6g
Background
Funding for this grant opportunity is provided by the USDA Forest Service through a cooperative agreement with the IAFC. The goal of the grant program is to facilitate onthe-ground fuel reduction projects in communities across the country. The funding opportunity is for fire and emergency response agencies to put toward implementing or expanding community fuels reduction projects in their jurisdiction. Funding can support staffing costs, contractual services, purchase of mitigation PPE, and purchase of small equipment (valued at less than $5,000).

In coordination with the City’s Fire Department, Natural Resources Office, and Park and Recreation Department, staff identified the East Fork of the San Luis Obispo Creek as a high-priority area within the City that needs fuel reduction work. This prioritization was based on the presence of downed and dead material, proximity to the built environment, ignition source activity, the program’s required project completion date, and the level of impact that $10,000 in funding could have.

Public Engagement
This item is on the agenda for the August 16, 2022, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

CONCURRENCE
The Parks & Recreation Department and Office of Sustainability and Natural Resources concur with the report and proposed application.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. If the work associated with the grant funding requires environmental review, staff will not proceed with the project until a review has been completed.

FISCAL IMPACT
Budgeted: No Budget Year: 2022-23
Funding Identified: Yes

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Item 6g
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $2,500 $0 $ $0
State
Federal
Fees
Other: $10,000 $0
Total $12,500 $0 $ $0
The Ready, Set, Go! Grant Program allows members to apply for up to $10,000 in funding and requires a minimum hard match of 25% along with an in-kind match of a minimum of 150 hours. The Fire Department and Office of Sustainability and Natural Resources have identified funding within the existing authorized operating budgets to meet the hard match requirements and can meet the in-kind hour requirement through the use of the City’s Open Space Technician Crew and education and promotional efforts. If the project is not fully funded by the IAFC, the department will look to absorb the remaining project costs within the approved annual operating budget for fiscal year 2022-23. If the grant project is not funded, staff will continue to seek grant funding opportunities to continue fuel reduction efforts within the City.

ALTERNATIVES
The Council could decide not to pursue the grant monies. This is not recommended as fire service grant opportunities are limited and the grant funds would only serve to enhance the City’s safety and resilience while increasing fiscal sustainability for the City.

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Item 6h
Department: Fire
Cost Center: 8501
For Agenda of: 8/16/2022
Placement: Consent
Estimated Time: N/A
FROM: Keith Aggson, Fire Chief
Prepared By: James Blattler, Emergency Manager
SUBJECT: FIRE MUTUAL AID REIMBURSEMENT RESOLUTION AMENDMENT

RECOMMENDATION
Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, identifying the terms and conditions for Fire Department response away from their official duty station and assigned to an emergency incident” to expand the City’s ability to seek full reimbursement for eligible mutual aid responses to fires and other disasters by adding two new Fire Department positions to the list of eligible employees and repealing the previous Resolution No. 11234 (2021 Series).

POLICY CONTEXT
The San Luis Obispo City Fire Department participates in mutual aid responses when requested. Typically, these requests come through a State of California Coordination Center. When responding with personnel, the City of San Luis Obispo incurs equipment, staffing, and travel-related expenses. With few exceptions, responses to disasters outside the City’s jurisdiction are eligible for reimbursement through the State or Federal government. Most reimbursement related to these responses is through the California Fire Assistance Agreement (CFAA) (Attachment A), which is managed by the California Governor’s Office of Emergency Services (CalOES). The CFAA is a collective agreement that sets reimbursement guidelines for mutual aid response to participating local, state, and federal government agency incidents.

The CFAA is renewed every five (5) years and the current agreement is set to expire on December 31, 2024. To receive reimbursement for expenses incurred as part of the Fire Department’s response to mutual aid incidents, each agency must abide by the requirements set forth in the CFAA. One of the CFAA requirements is that agencies maintain a current Governing Body Resolution (GBR) or Memorandum of Agreement (MOA) explicitly stating how the employees will be compensated when responding to such incidents. Such GBR or MOA cannot contain language that makes compensation contingent upon reimbursement, per the CFAA.

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Item 6h
Staff recommends the adoption of an amended resolution (Attachment B) which will allow the City to expand reimbursement for all eligible expenses by adding two positions to the list of employees eligible for “Portal-to-Portal” compensation, meaning from the moment the City’s personnel are activated to respond until they return back to the City and are relieved of responsibilities related to the non-local disaster. This change supports the City’s Major City Goal of Economic Recovery by increasing potential reimbursement revenue to the General Fund.

DISCUSSION
Since Council adopted Resolution 11234 (2021 Series) agreement (Attachment C), the Fire Department has added new positions, Emergency Manager and Emergency Medical Technician, that were not listed on the resolution. Staff recommends updating the resolution’s list of department employees, ensuring those positions are eligible for full reimbursement.

For every dollar that the department expends towards mutual aid response, reimbursing agencies pay an additional administrative fee to help cover the costs associated with managing the program. These fees are updated annually by Fire Department staff and for fiscal year 2022-23, the rate is set at 24.214%. The City does not budget any cost recovery in its financial plan due to the unpredictable nature of the fire season, mutual aid activation, or duration or personnel needed.

To help support the City’s Major City Goal of Economic Recovery, the Fire Department has been maximizing the deployment of personnel to assist in the operations and management of mutual aid incidents, which helps increase the total revenue that is generated by collecting the administrative fees.

Previous Council or Advisory Body Action
On April 6, 2021, City Council approved the most recent amendment to the Mutual Aid compensation resolution, which increased eligible mutual aid-related reimbursement by adding over-time compensation to the Fire Chief and Deputy Fire Chief positions, as required by the CFAA.

Public Engagement
This item is on the agenda for the August 16, 2022, City Council meeting and will follow all required postings and notifications. The public will have the opportunity to provide comment on this item at or before the meeting.

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Item 6h

FISCAL IMPACT
Budgeted: No Budget Year: Ongoing
Funding Identified: N/A
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:

Total $ $ $ $
If adopted, the amended resolution would result in additional compensation reimbursement and administrative fee revenue to the City for its role in processing nonlocal, reimbursement-eligible disaster responses whenever the added positions are activated to assist in mutual aid efforts. Staff will continue to monitor the reimbursement revenue and update the budget projections accordingly.

ALTERNATIVES
The Council could choose not to add the new positions to the list of employees eligible for portal-to-portal compensation. This is not recommended by staff as the status quo would continue to leave eligible reimbursement on the table and would be counter to the City’s Major City Goal of Economic Recovery.

ATTACHMENTS
A - California Fire Assistance Agreement 05-01-2020 to 12-31-2024 B - Draft Resolution amending Fire Mutual Aid Terms and Conditions C - Resolution No. 11234 (2021 Series)

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Cal OES# 6143-2019
CAL FIRE# 7CA004953
USFS# 20-FI-11052012-147
NPS# P20AC00506
BLM# BLM CFPA CA915-2004
F&WS# FFo8F00000-D-Joo1
BIA# A20ACPRO01

Page 1 ends

Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA May 1, 2020

AGREEMENT FOR LOCAL GOVERNMENT FIRE AND EMERGENCY

ASSISTANCE TO THE STATE OF CALIFORNIA AND FEDERAL FIRE AGENCIES Between
STATE OF CALIFORNIA, GOVERNOR’S OFFICE OF EMERGENCY SERVICES; STATE OF CALIFORNIA, DEPARTMENT OF FORESTRY AND FIRE PROTECTION; USDA FOREST SERVICE, PACIFIC SOUTHWEST REGION;

USDI BUREAU OF LAND MANAGEMENT, CALIFORNIA STATE OFFICE, INTERIOR REGIONS 8 and 10;
USDI NATIONAL PARK SERVICE, INTERIOR REGIONS 8, 9, 10, and 12; USDI FISH AND WILDLIFE SERVICE, INTERIOR REGIONS 8 and 10; and

USDI BUREAU OF INDIAN AFFAIRS, PACIFIC REGION
THIS AGREEMENT made and entered into on last date signed by and between the State ofCalifornia, Governor’s Office of Emergency Services, hereinafter referred to as Cal OES; the State of California, Department of Forestry and Fire Protection, hereinafter referred to as CAL FIRE; the USDA Forest Service, Pacific Southwest Region; the USDI Bureau of Land Management (BLM), California State Office, Interior Regions 8 and 10; the USDI National Park Service (NPS), Interior Regions 8, 9, 10, and 12; USDI Fish and Wildlife Service (FWS), Regions 8 and 10, and USDI Bureau of Indian Affairs (BIA), Pacific Region, hereinafter referred to as the Federal Fire Agencies; all parties hereinafter referred to as Cal OES, CAL FIRE, and the Federal Fire Agencies, under the provisions of the Reciprocal Fire Protection Act, 42 USC 1856 and 1856a, the Disaster Relief Act of 1974, PL 93-288, as amended, and The Federal Land Policy and Management Act of 1996, (PL 94-579, Sec, 307(b)).

NAME
This Agreement shall be entitled “Agreement for Local Government Fire and Emergency Assistance to the State of California and Federal Fire Agencies”, hereinafter referred to as the California Fire Assistance Agreement, CFAA, or The Agreement.

RECITALS

1. The Federal Fire Agencies are responsible for providing a level of wildland fire protection for federal lands, as designated by Congressional action and Federal policy; and

2. CAL FIRE is responsible for providing a level of wildland fire protection for State Responsibility Area lands, as designated by the State Board of Forestry and Fire Protection; and

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Cal OES# 6143-2019
CAL FIRE# 7CA004953
USFS# 20-FI-11052012-147
NPS# P20AC00506
BLM# BLM CFPA CA915-2004
F&WS# FFo8F00000-D-Joo1
BIA# A20ACPRO01

Page 2 ends

Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA May 1, 2020

3. For efficiency and effectiveness, CAL FIRE and the Federal Fire Agencies may exchange wildland fire protection areas responsibilities with the understanding that Local Responsibility Area landsare not part of this Agreement or included in the exchange; and

4. Cal OES is responsible to provide for systematic mobilization, organization, and operation of necessary fire and rescue resources through the California Fire and Rescue Mutual Aid System in mitigating the effects of disasters and to ensure that the responding agencies understand and comply with the terms and conditions of the Agreement applicable to their response; and

5. Cal OES, CAL FIRE, the Federal Fire Agencies, and local agencies, at times of severe wildfire conditions and other emergencies, often have need of emergency apparatus and/or personnel to provide fire protection or perform other tasks during control actions; and

6. Cal OES, through the California Fire and Rescue Mutual Aid System, has such emergency apparatus and personnel, which may be available in the spirit of cooperation for dispatch and use; and

7. It is desirable that Cal OES, CAL FIRE, and the Federal Fire Agencies establish and enter into an Agreement for the prudent use of such emergency apparatus and personnel; and

8. Cal OES, CAL FIRE, and the Federal Fire Agencies will generally use the Agreement for engines, water tenders, and overhead to address incidents once local agreement resources are exhausted, or where a local agreement is not in place; and

9. Cal OES may use the Agreement to mobilize all-hazard resources when warranted by its authority; and

10. Cal OES and the Federal Fire Agencies will use the Agreement to order the appropriate aviation resources when a mobilization cannot be executed through a local unit agreement; and

11. The Agreement may be used to reimburse rostered California Interagency Incident Management Team members (CIIMT); and

12. Cal OES, CAL FIRE, and the Federal Fire Agencies shall use this Agreement for reimbursing local government agencies for the use of their resources. Annual operating plans may be utilized at the local level to facilitate administrative andoperational issues; and

13. When this Agreement is exercised to obtain Cal OES resources and/or resources through the California Fire and Rescue Mutual Aid System, those resources will be reimbursed pursuantto this Agreement; and

14. When ordering local agency apparatus and personnel in Recital 5 of this Agreement from other local agencies through the California Fire and Rescue Mutual Aid System, a local agency may utilize this Agreement asthe fiscal authority for reimbursing other local agencies; and

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Cal OES# 6143-2019
CAL FIRE# 7CA004953
USFS# 20-FI-11052012-147
NPS# P20AC00506
BLM# BLM CFPA CA915-2004
F&WS# FFo8F00000-D-Joo1
BIA# A20ACPRO01

Page 3 ends

Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA May 1, 2020

15. Responsibility for determining the basis for requesting assistance through this Agreement rests with the Incident Commander or through the Emergency Command Center. The Incident Commander is responsible for all assignments and tactical decisions for resources obtained through this Agreement.

16. Agreement Committee

16.1 California Fire Assistance Agreement Committee. A California Fire Assistance Agreement Committee (the ‘Committee’) shall be formed by Cal OES for the purpose of negotiating the terms of the CFAA, and for maintenance of the Agreement. For the purposes of coordination, Cal OES Fire and Rescue Division’s State Fire and Rescue Chief, or the Chief's designee, shall serve as theChairperson.

16.2 Composition of the Committee. The Committee shall consist of representatives from Cal OES, CAL FIRE, the Federal Fire Agencies, and three advisory representatives from local government fire agenciesin California: one from Northern California, one from Southern California, and one representing volunteer fire departments. The local government agency representatives shall be appointed by the Chairperson of the State of California Fire and Rescue Advisory Committee/FIRESCOPE, Board of Directors.

16.3 Committee Meetings. The Committee will meet quarterly via conference call, video conferencing, or in person.

16.4 Rate Letter. The Committee will meet at a minimum in person once a year (January) to establish the Base Administrative Rate, Personnel Base Rates, and Equipment Rates to become effective upon publication of the “Agreement for Local Government Fire and Emergency Assistance to the State of California and Federal Fire Agencies Rate Letter” (Rate Letter) each year. These rates will be published annually by Cal OES Fire and Rescue Division in a Rate Letter.

The Committee will review the Salary Rates and Administrative Rates on file with Cal OES Fire and Rescue Division, as well as negotiate procedural changes. The Salary Rates and Administrative Rates, are subject to change throughout the year due to labor negotiations, cost of living increases, etc.

After the annual or emergency exhibit review by the Committee, Cal OES will publish annually rates, formulas, and methodologies in the Rate Letter. Rates will become effective on the date(s) provided in the Rate Letter. In addition, Cal OES will provide a copy of the Rate Letter directly to each signatory agency’s point of contact.

16.5 Changes to Equipment Rates. Cal OES will monitor and track the Federal Emergency Management Agency (FEMA) Schedule of Equipment Rates. If a change in schedule occurs after the publication of the most recent Rate Letter, the Committee will conduct a meeting to formally discuss the new rates, and determine if they are valid for a revised Rate Letter publication.

Cal OES will forward the revised rates to the signatory agencies for a two-week review. Once the

Page 147 of 418 ends

Cal OES# 6143-2019
CAL FIRE# 7CA004953
USFS# 20-FI-11052012-147
NPS# P20AC00506
BLM# BLM CFPA CA915-2004
F&WS# FFo8F00000-D-Joo1
BIA# A20ACPRO01

Page 4 ends

Agreement Between Cal OES/CAL FIRE/USFS/BLM/NPS/FWS/BIA May 1, 2020 review process is complete, and the rates approved by the Committee, Cal OES will publish a revised Rate Letter to the California Fire and Rescue Mutual Aid System Agencies.

16.6 Meetings to re-negotiate the Agreement. It is recommended the Committee schedule meetings to begin no later than fifteen (15) months before the expiration date of the CFAA for the purpose of re-negotiation, as well as produce the final document for signatures no later than six months before the expiration date of the Agreement.

The Committee will meet as necessary to make adjustments or changes to the Agreement.

THEREFORE, it is agreed as follows:

TERMS AND CONDITIONS
CFAA Exhibits and Amendments to Exhibits

17. The parties agree the Committee will, by no later than March 30th of each year, recommend amendments to the incorporated exhibits. The parties agree to cooperate in good faith to consider and agree to any amendments by April 15th of each year.

A party requesting to amend the exhibit(s) to the CFAA after March 30th will notify Cal OES.

The Committee will meet as soon as practicable to discuss the request and make any recommendation to the parties regarding the requested amendment. The Committee will notify the parties of any recommended amendments, and if agreeable to the parties, the parties will amend the exhibits to reflect the changes no later than fifteen (15) days after the Committee’s recommendation.

Subject to the requirements in Recital 18, the parties acknowledge that amendments may be required under emergency circumstances, and that the parties may make any required amendments using any reasonable means of negotiating and agreeing to amendments under emergency circumstances.

The Committee will provide recommended amendments in two formats:

1. A copy of the proposed amended exhibit(s) reflecting additions, and proposed deletions in track changes or similar format so that additions are displayed in underline and deletions are displayed with strikethrough.

2. A copy of the proposed amended exhibit(s) without track changes or similar format, which will represent the final version of the amended exhibit if the parties agree to the changes.

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San Luis Obispo City CouncilAugust 16, 2022

San Luis Obispo City Council
August 16, 2022