San Luis Obispo City Council
September 20, 2022

City Council
AGENDA

Tuesday, September 20, 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. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.

2. PLEDGE OF ALLEGIANCE
Council Member Jan Marx will lead the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a. PROCLAMATION - HISPANIC AND LATINX HERITAGE MONTH
Mayor Stewart will present a proclamation declaring September 15 to October 15, 2022 as "Hispanic and Latinx Heritage Month."

3.b. PROCLAMATION - DRIVE ELECTRIC WEEK
Mayor Stewart will present a proclamation declaring the week of September 23 to October 2, 2022 as "Drive Electric Week."

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

4. 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.

5. 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 5g.

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

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

5.b. MINUTES REVIEW - SEPTEMBER 6, 2022 COUNCIL MINUTES 9 Recommendation:

Approve the minutes of the City Council meeting held on September 6, 2022.

5.c. BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT

OF INTEREST CODE
15 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Conflict of Interest Code.”

5.d. APPROVE A RESOLUTION TO DELEGATE FLEET PURCHASING

AUTHORITY TO THE PUBLIC WORKS DIRECTOR AND FINANCE
PURCHASING DIVISION FOR TIER 4 AND 5 FLEET AND TRANSIT

PURCHASES MADE THROUGH COOPERATIVE PURCHASING

AGREEMENTS AND WITHIN THE COUNCIL APPROVED BUDGET
41 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, to delegate Fleet Purchasing Authority to the Public Works Director and Finance Purchasing Division for Tier 4 and 5 Fleet and Transit purchases made through Cooperative Purchasing Agreements and within the council approved budget.”

5.e. APPROVE DESIGN-BUILD PROCUREMENT METHOD AND

AUTHORIZE THE ISSUANCE OF A REQUEST FOR PROPOSAL FOR
DESIGN AND CONSTRUCTION OF THE PHASE 1 MUNICIPAL

FLEET ELECTRIC VEHICLE CHARGING INFRASTRUCTURE

PROJECT
51 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, making findings on energy savings and determining other matters in connection with Energy Conservation Facilities”; and

1. Authorize the advertisement of a Request for Proposal (RFP) for the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure Project in a form approved by the City Engineer and City Attorney; and

2. Authorize the City Manager to execute the agreement with the preferred vendor; and

3. Authorize the City Engineer to execute amendments to the agreement with the selected vendor if within the available project budget; and

4. Authorize staff to pursue rebate and reimbursement
opportunities related to fleet electric vehicle charging infrastructure projects to support design-build costs.

5. 5.f. AUTHORIZATION TO ISSUE A LETTER OF INTENT TO PURCHASE

A NEW STORMWATER HYDRO-CLEANER TRUCK
73 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing staff to issue Letters of Intent for Vehicle Purchases” for a Stormwater Hydro-Cleaning Truck with budget appropriation in the 2023-25 Financial Plan due to length of estimated manufacturing times.

5.g. AUTHORIZATION TO FORM A SECTION 115 TRUST FUND WITH THE CALIFORNIA EMPLOYERS’ PENSION PREFUNDING TRUST
83 Recommendation:

Approve an agreement to establish and fund a Section 115 Trust Fund with the California Employers’ Pension Prefunding Trust administered by CalPERS; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, delegating the authority to request disbursements from the California Employers’ Pension Prefunding Trust.”

2. 6. PUBLIC HEARING AND BUSINESS ITEMS

6.a. REVIEW OF AN APPEAL OF THE PLANNING COMMISSION’S

DECISION TO APPROVE A MINOR USE PERMIT TO ESTABLISH A
MULTI-VENDOR FACILITY, “THE HUB”, AT 1701 MONTEREY
STREET (USE-0103-2022, APPL-0262-2022) (Estimated Time: 60 minutes)
103
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, denying an appeal and upholding the Planning Commission’s decision to approve a Minor Use Permit to establish a multi-vendor facility that includes a bar/tavern, restaurant, commercial recreation, general retail, indoor live entertainment, and food trucks. The project includes a parking reduction request and is categorically exempt from environmental review.”

6.b. INTRODUCTION OF AN ORDINANCE TO AMEND CHAPTER 9.10 (CANNABIS REGULATIONS) AND ANNUAL CANNABIS BUSINESS

PROGRAM AND REGULATIONS UPDATE
*Continued to the October 18, 2022 City Council Meeting.

7. STUDY SESSION

7.a. STUDY SESSION: HOMELESSNESS RESPONSE STRATEGIC PLAN (Estimated Time: 90 minutes)
139
Recommendation:

Receive a presentation about activities to date for
homelessness response; and

1. Provide concurrence on the strategic vision, proposed outcomes, and outreach and feedback plan for the City’s first Homelessness Response Strategic Plan.

2. 8. 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)

9. ADJOURNMENT
The next Regular Meeting of the City Council will be held on October 4, 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
September 6, 2022, 5:30 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. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on September 6, 2022 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

2. PLEDGE OF ALLEGIANCE
Mayor Stewart led the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a INTRODUCTION - BATTALION CHIEF SHAYNE SKOVE
Fire Chief Keith Aggson introduced Shayne Skove, Battalion Chief for the Fire Department.

3.b PRESENTATION - CAL POLY HOUSING AND ENROLLMENT UPDATE Cal Poly representatives Terrance Harris, Vice President for Strategic Enrollment Management, and Keith Humphrey, Vice President of Student Affairs, provided a presentation on current housing and enrollment at Cal Poly.

3.c CITY MANAGER REPORT
City Manager Derek Johnson provided a report on upcoming projects.

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

None
--End of Public Comment--

5. CONSENT AGENDA
Council Member Shoresman requested that Item 5f be pulled from the Consent agenda.

Motion By Vice Mayor Christianson
Second By Council Member Marx
To approve Consent Calendar Items 5a - 5e and 5h - 5i.

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

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

5.b MINUTES REVIEW - AUGUST 16, 2022 COUNCIL MINUTES
Approve the minutes of the City Council meeting held on August 16, 2022.

5.c AUTHORIZE REQUEST FOR PROPOSALS FOR PREPARATION OF A

STRATEGIC ASSET MANAGEMENT PLAN

1. Approve the request for proposals for the preparation of a Strategic Asset Management Plan (Project), Specification No. 1000077-08; 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 $145,000.

3 5.d AWARD A CONSTRUCTION CONTRACT FOR THE ROOFING
REPLACEMENT AT FIRE STATION 1 ADMINISTRATION AND FLEET
MAINTENANCE PROJECT, SPECIFICATION NUMBER 1000172

1. Award a Construction Contract to Edwards Construction Group, Inc. in the amount of $492,836 for the Roofing Replacement at Fire Station 1 Administration and Fleet Maintenance Project, Specification Number 1000172; and

2. Appropriate $350,000 from the Capital Projects Reserve Fund to the Major Facilities Maintenance – Annual Asset Maintenance Account (1000075-16); and

3. Authorize the City Engineer to issue change orders up to the available project budget; and

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

5. Adopt Resolution No. 11354 (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 the Roofing Replacement at Fire Station 1 Administration and Fleet Maintenance, Specification Number 1000172.”

5.e ADVISORY BODY APPOINTMENTS AND VACANCIES UPDATE: ONE POSITION TO THE CITIZENS’ REVENUE ENHANCEMENT

OVERSIGHT COMMISSION, TWO POSITIONS TO THE TOURISM

BUSINESS IMPROVEMENT DISTRICT BOARD
Confirm the appointments of Anthony Bozzano to the Citizens’ Revenue Enhancement Oversight Commission (REOC), along with Lydia Bates and Prashant Patel to the Tourism Business Improvement District Board (TBID).

4 5.g AUTHORIZE GRANT APPLICATIONS FOR THE EDWARD BYRNE

MEMORIAL JUSTICE ASSISTANCE GRANT, ALCOHOLIC BEVERAGE

CONTROL, OFFICE OF TRAFFIC SAFETY GRANT, AND LAW

ENFORCEMENT MENTAL HEALTH AND WELLNESS ACT GRANT

1. Authorize staff to submit grant applications to the following entities:
a. FY 2022-23 Edward Byrne Memorial Justice Assistance Grant in the amount of $15,107 for protective police equipment b. FY 2022-23 Department of Alcoholic Beverage Control – Office of Traffic Safety Local Enforcement Grant Program in an amount not to exceed $50,000
c. FY 2022-23 Office of Traffic Safety in the amount not to exceed $123,000 d. FY 2022-23 Law Enforcement Mental Health and Wellness Act grant in the amount of $50,000

2. Adopt Resolution No. 11356 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Grant Applications for Funding Provided Through the Department of Alcoholic Beverage Control-Office of Traffic Safety Through the National Highway Traffic Safety Administration to Increase Education and Enforcement Programs Focusing on Underage Drinking]” authorizing the City Manager to enter into a contract with the State as required by the Alcoholic Beverage Control – Office of Traffic Safety Local Enforcement Grant; and

3. If the grants are awarded, authorize the City Manager or his designee to execute grant related documents and authorize the Finance Director to make the necessary budget adjustments upon the award of the grant.

5.h AUTHORIZATION TO PURCHASE JUNIPER CORE NETWORK EQUIPMENT

1. Award a contract and authorize a purchase order for CIO Solutions in the amount of $119,065 for the purchase of Juniper Core Network Equipment; and

2. Waive formal bids and authorize use of National Association of State Procurement Officials (NASPO) Master Agreement No.

AR3232 to procure this purchase from CIO, as allowed under

3.24.060 E. of the City of San Luis Obispo Municipal Code; and

3. Adopt Resolution No. 11357 (2022 Series) 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 $119,064.12 of the City’s Information Technology Replacement Fund to purchase Juniper Core equipment.

5 5.i AUTHORIZATION TO APPLY FOR LOCAL AGENCY TECHNICAL

ASSISTANCE GRANT FOR PREPARATION OF A BROADBAND

MASTER PLAN
Authorize City staff to apply for the Local Agency Technical Assistance grant to fund preparation of a Broadband Master Plan for the City of San Luis Obispo.

5.f AUTHORIZATION TO ADVERTISE RAILROAD SAFETY TRAIL
FENCING PROJECT, SPECIFICATION NO. 91385-09
Public Works Director Matt Horn and City Manager Derek Johnson provided a brief presentation and responded to question from Council.

Motion By Council Member Pease
Second By Vice Mayor Christianson

1. Approve the project plans and special provisions for the Railroad Safety Trail Fencing Project (project), Specification 91385-09; and

2. Authorize staff to advertise for bids; and

3. Appropriate $380,000 from the Capital Projects Reserve Fund to the Parks Major Maintenance Account (91358-09); and

4. 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 $440,000; and

5. Authorize the City Engineer to approve Contract Change Orders up to the available project budget; 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. 11355 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of the Capital Projects Reserve Fund to support Railroad Safety Trail Fencing project, Specification Number 91385-

09.”
Ayes (5): Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
CARRIED (5 to 0)

6 6. PUBLIC HEARING AND BUSINESS ITEMS

6.a ADOPT A RESOLUTION TO APPROVE THE UPDATED FLEET
REPLACEMENT POLICY (Estimated Time: 30 minutes)
Public Works Director Matt Horn and Deputy Director of Public Works Greg Cruce presented a PowerPoint and responded to Council questions.

Motion By Council Member Marx
Second By Vice Mayor Christianson
Adopt Resolution No. 11358 (2022 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Fleet Replacement Policy, Section 405 of the City’s Financial Management Manual” to serve as an interim document until Section 405 of the Financial Management Manual is updated.

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

7. LIAISON REPORTS AND COMMUNICATIONS
Council Member Marx informed the Council that IWMA has hired Jordan Lane as Deputy Director. She also provided an updated on the recent APCD meeting.

Mayor Stewart congratulated Biz Steinberg, Chief Executive Officer for CAPSLO, for receiving the Linden B. Johnson Leadership Award. She also provided an update from the August County Mayor's meeting.

8. ADJOURNMENT
The meeting was adjourned at 7:15 p.m. The next Regular City Council Meeting is scheduled for September 20, 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

Item 5c
Department: Administration
Cost Center: 1021
For Agenda of: 9/20/2022
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Kevin Christian, Deputy City Clerk
SUBJECT: BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF

INTEREST CODE

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Conflict of Interest Code.”

POLICY CONTEXT
The Political Reform Act (Government Code Sections 81000) requires every local government agency to review its Conflict of Interest Code biennially by October 1st.

DISCUSSION
The Political Reform Act (PRA) of 1974 contains a general prohibition that no public official or employee at any level of state or local government shall make, participate in making or in any way attempt to use their official position to influence a governmental decision in which they know or have reason to know they have a financial interest.

A Conflict of Interest Code requires certain employees, who are most likely to be involved in government decision-making and where potential conflicts may be present, to file an annual disclosure form. The purpose of this form is to inform the employee and the public of potential conflicts of interest and situations where disqualification is mandated. The PRA requires that local agencies adopt a formal Conflict of Interest Code, review its Code biennially by October 1st in even numbered years, and make amendments if needed (Attachment A).

The required review of the City’s Conflict of Interest Code has now been completed, determining that an amendment is required to update the gift value limitation to match the currently set valuation of the PRA, to include new designated filer positions, to revise certain titles of existing positions, and to delete titles of positions that have been abolished. Legislative drafts of the proposed City of San Luis Obispo 2022 Conflict of Interest Code update (Attachment B) and List of Designated Positions (Attachment C) detail the proposed amendments.

Item 5c
Upon approval, they will then be incorporated in full as Exhibit A to the proposed Resolution. Should further amendments be necessary, the City will have 90 days to complete and adopt a final code.

Background
There are three main components of a Conflict of Interest Code:
 Incorporation by reference of the terms of Government Code Section 18730 (Terms of the Code)
 List of designated positions (The positions that are required to file a Statement of Economic Interest, “SEI”, Form 700.)
 Disclosure categories (The specific interests to be reported in a SEI, Form 700.) Terms of the Code
The Fair Political Practices Commission (FPPC) advises that agencies are required to incorporate the provisions of California Code of Regulation §18730 by reference, along with appendices providing disclosure categories and listing of designated positions, to constitute the formation and promulgation of a Conflict of Interest Code. Regulation §18730 outlines the references to statutes and regulations that govern designated positions, disclosure categories, time of filing, contents of, period covered, manner of reporting, how interests are to be reported, definition of terms, disqualification as well as prohibition on receipt of honoraria, gifts, loans, and travel payments. The incorporation of Regulation §18730 provides the legal basis for the code to be a document that has force and effect. By incorporating the California Code of Regulation into the City’s Conflict of Interest Code, any amendment to the California Code adopted by the FPPC will automatically apply to the City Code. (Attachment B – Legislative draft format) List of Designated Positions
Following Council action on June 21, 2022, directing a review of the City’s Conflict of Interest Code, the City Clerk and all City Department Directors reviewed the current list of Designated Positions (Attachment C – legislative draft format) from the 2020 City Conflict of Interest Code for their respective departments. The Designated Filer List of positions was examined for inclusion of new positions, possible title changes to existing positions, job responsibility modifications, and to remove titles of positions that may have been abolished (since the 2020 Code adoption). Multiple changes were found in several departments and have therefore been modified accordingly on the list.

Proposed Disclosure Categories
The FPPC advises that local codes should enumerate positions that “make or participate in the making” of government decisions, acting within the authority of his or her position, votes on a matter, obligates, or commits the agency to any course of action which may foreseeably have a material financial effect on any financial interest. Additionally, it further defines that employees “participate in governmental decisions” when - acting within the authority of his or her position and without significant and substantive or intervening review - the official negotiates, advises, or makes recommendations to the decisionmaker regarding the governmental decision.

Item 5c
The FPPC has provided advice related to the development of disclosure categories and the need for “striking an appropriate balance between heading off potential conflicts of interest and an individual’s right to privacy.” The Commission notes that the most common problem in local codes is the requirement that employees disclose financial interests that are not related to the employee’s duties and area of authority. The review of the Categories has determined that no modifications are necessary since the last review, completed in September 2020.

Other Considerations
 Positions Statutorily Required to File Conflict of Interest Disclosure:

Council Members and appointed officials (including the City Manager, City Attorney and members of the Planning Commission) are not designated employees under this conflict of interest code because they are statutorily required to file conflict disclosures by Government Code Section 87200 (known as “87200 filers”). The conflicts of interest code supplements those statutory requirements as to employees and members of City advisory bodies who are not 87200 filers. It is important to note that the list of filers includes members of the San Luis Obispo Parking Authority and the San Luis Obispo Public Financing Authority. Because the City Council also serves as both authorities, members of the Council are reminded to include these positions on their Assuming, Annual and Leaving Statements of Economic Interest.
 New Positions:

With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and if so, assign a disclosure category conforming to the position’s range of duties. Determinations shall be made in writing and provided to the City Clerk and the Human Resources Department. Such written determination shall include a description of the newly created position's duties and based upon that description, a statement of the extent of disclosure requirements given the range of duties. All such determinations are public records and shall be retained for public inspection in the same manner and location as this conflict -of-interest code. (Gov.

Code§ 81008.)
The City Clerk's office shall promptly enter the actual position title of the newly created position into its electronic SEI (Form 700) record management system and ensure that the name of any individual holding the newly created position is entered under that position title in the record management system. Additionally, within 90 days of the creation of a newly created position that must file statements of economic interests, the City shall update this conflict-of-interest code to add the actual position title in its list of designated positions. (Gov. Code§ 87306.)

Item 5c
Previous Council Action
The current City Conflict of Interest code was adopted by City Council on September 15, 2020, by Resolution No. 11163 (2020 Series). As required by The PRA, the code reviewing body (City Council) directed the biennial review of the City’s Conflict of Interest Code be conducted at their June 21, 2022 meeting.

Public Engagement
Being on the agenda for the September 20, 2022 City Council meeting, all required postings and notifications for City Council Agendas have been followed. The public may comment on this item at or before the meeting.

CONCURRENCE
All City Department Directors have provided input on the revised list of designated filers which, accordingly, have been incorporated into the proposed revised list of designated positions and the City Attorney has reviewed and approved the code as presented.

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.

FISCAL IMPACT
Budgeted: N/A Budget Year: 2022-23
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 $ $ $ $N/A
There is no fiscal impact for the update of the biennial Conflict of Interest Code as administration of the process is considered in the City Clerk’s annual budget.

Item 5c

ALTERNATIVES
The City Council may direct amendments be made to the proposed update to the City’s Conflict of Interest Code. If amendments are necessary, the amended code must be provided to Council for approval within 90 days.

ATTACHMENTS
A - Draft Resolution amending the City’s Conflict of Interest Code – without final Exhibit B - Draft Conflict of Interest Code 2022 – Legislative Draft version C - List of Designated Positions 2022 – Legislative Draft version

R ______
RESOLUTION NO. _____ (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S CONFLICT OF

INTEREST CODE
WHEREAS, the Political Reform Act of 1974, “PRA” (Government Code Section 81000 et seq.) requires local government agencies to promulgate and adopt conflict of interest codes; and
WHEREAS, Resolution No. 11163 (2020 Series) adopted on September 15, 2020 amended the City’s Conflict of Interest Code, updating the Gift limit value and amending the List of Designated Positions and Disclosure Categories (Exhibit A); and WHEREAS, on June 21, 2022 the City Council directed the City Manager to conduct a review of the City’s code as required by The PRA which provides that “codereviewing bodies” (the City Council) shall direct the review of all agency codes under their jurisdiction no later than July 1 of each even-numbered year; and WHEREAS, Council Members and appointed officials are not designated employees under this conflict of interest code because they are statutorily required to file conflicts disclosures by Government Code Section 87200 (known as “87200 filers”) and this conflicts code is intended to supplement those statutory requirements as to employees and members of certain advisory bodies who are not 87200 filers.

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

SECTION 1. Resolution No. 11163 (2020 Series) is hereby rescinded.

Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 2. Pursuant to the Political Reform Act of 1974, Government Code Section 87300 et seq., and Section 18730 of Title 2 of the California Code of Regulations, the City Council adopts the model conflict of interest code promulgated by the Fair Political Practices Commission of the State of California as set forth in Section 18730 of Title 2 of the California Code of Regulations, which model conflict of interest code is incorporated herein by reference, and which, together with the City’s Disclosure Categories and List of Designated Positions collectively constitutes the City of San Luis Obispo’s Conflict of Interest Code, as set forth in Exhibit A and Appendices 1 and 2 of this Resolution. As the model conflict of interest code set forth in Section 18730 of Title 2 of the California Code of Regulations is amended from time to time by State law, regulatory action of the Fair Political Practices Commission, or judicial determination, the portion of the City’s Conflict of Interest Code comprising the model conflict of interest code shall be deemed automatically amended without further action to incorporate by reference all such amendments to the model conflict of interest code.

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

CONFLICT OF INTEREST CODE - 20202022

CITY OF SAN LUIS OBISPO, CALIFORNIA
CONFLICT OF INTEREST CODE............................................................................................... 2 Section 1. Authority........................................................................................................................ 2 Section 2. Purpose........................................................................................................................... 2 Section 3. Code Reviewing Body ................................................................................................... 2 Section 4. Filing Officer ................................................................................................................. 2 Section 5. Code Administrator........................................................................................................ 2 Section 6. Section 18730 of the California Code of Regulations................................................... 3 Section 7. Disclosure CateGories ................................................................................................... 3 Section 8. Designated Positions...................................................................................................... 3 EXHIBIT A Incorporation of California Code of Regulations by Reference ................................ 4 Section 1. Definitions...................................................................................................................... 4 Section 2. Designated Employees................................................................................................... 4 Section 3. Disclosure Categories. ................................................................................................... 4 Section 4. Statements of Economic Interests: Place of Filing. ....................................................... 5 Section 5. Statements of Economic Interests: Time of Filing. ....................................................... 5 Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. ................................ 5 Section 6. Contents of and Period Covered by Statements of Economic Interests......................... 6 Section 7. Manner of Reporting...................................................................................................... 6 Section 8. Prohibition on Receipt of Honoraria.............................................................................. 8 Section 8.1 Prohibition on Receipt of Gifts in Excess of $5200. ................................................... 8 Section 8.2. Loans to Public Officials. ........................................................................................... 8 Section 8.3. Loan Terms. ................................................................................................................ 9 Section 8.4. Personal Loans. ......................................................................................................... 10 Section 9. Disqualification............................................................................................................ 10 Section 9.3. Legally Required Participation. ................................................................................ 11 Section 9.5. Disqualification of State Officers and Employees.................................................... 11 Section 10. Disclosure of Disqualifying Interest. ......................................................................... 11 Section 11. Assistance of the Commission and Counsel. ............................................................. 11 Section 12. Violations................................................................................................................... 12 APPENDIX 1 Disclosure Categories............................................................................................ 13 APPENDIX 2 List of Designated Positions...................................Error! Bookmark not defined.

City of San Luis Obispo Conflict of Interest Code Page 2

CONFLICT OF INTEREST CODE

CITY OF SAN LUIS OBISPO, CALIFORNIA
SECTION 1. AUTHORITY
Government Code Section 87300 requires the City of San Luis Obispo to adopt a Conflict of Interest Code.

SECTION 2. PURPOSE
The purpose of the City of San Luis Obispo Conflict of Interest Code is to incorporate by reference the terms of Section 18730 of the California Code of Regulations pertaining to Conflict of Interest Codes.

SECTION 3. CODE REVIEWING BODY
The City Council of the City of San Luis Obispo shall be the Code Reviewing Body for the City of San Luis Obispo Conflict of Interest Code.

SECTION 4. FILING OFFICER
The City Clerk of the City of San Luis Obispo shall be the Filing Officer for the City of San Luis Obispo Conflict of Interest Code. All persons occupying designated positions shall file Statements of Economic Interests with the City Clerk.

The City Clerk shall make statements available for public inspection and reproduction, shall retain all statements pursuant to State Law, and shall perform all other duties and responsibilities of the Filing Officer pursuant to State Law.

SECTION 5. CODE ADMINISTRATOR
The City Manager, or his/her designee, shall be the Code Administrator for the City of San Luis Obispo Conflict of Interest Code.

The Code Administrator may promulgate further rules and regulations, which are not inconsistent with the Code, the Political Reform Act, or any regulation of the Fair Political Practices Commission; to administer the Conflict of Interest Code, including non-substantive alterations to the Code.

Non-substantive alterations shall be limited to the following:
(A) The reclassification or renaming of previously designated positions. (B) The deletion of a position for which the classification has been abolished. (C) Definitional or operational provisions in conformity to a statutory amendment, a regulation of the Fair Political Practices Commission, or a decision of a Court of competent jurisdiction.

City of San Luis Obispo Conflict of Interest Code Page 3 SECTION 6. SECTION 18730 OF THE CALIFORNIA CODE OF REGULATIONS Section 18730 of Title 2, Division 6, of the California Code of Regulations, as set forth in Exhibit A, and any amendment to it duly adopted by the Fair Political Practices Commission, along with any Appendices, are hereby incorporated by reference and constitutes the Conflict of Interest Code of the City of San Luis Obispo.

SECTION 7. DISCLOSURE CATEGORIES
Such persons holding designated positions shall report economic interests as set forth in Appendix 1.

SECTION 8. DESIGNATED POSITIONS
The positions listed in Appendix 2 are Designated Positions. Officers and employees holding those positions are Designated Positions and are deemed to make, or participate in the making of, decisions, which may foreseeably have a material effect on a financial interest.

Consultants may be Designated Positions, as determined by the Code Administrator.

Positions not listed as designated positions: The Members of the City Council, Mayor, City Manager, City Attorney, City Treasurer, Members of the Planning Commission, other public officials who manage public investments, and candidates for any offices at election, are required to file Statements of Economic Interest pursuant to Government Code Section 87200 et seq.

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CONFLICT OF INTEREST CODE

CITY OF SAN LUIS OBISPO, CALIFORNIA

EXHIBIT A

INCORPORATION OF CALIFORNIA

CODE OF REGULATIONS BY REFERENCE
Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Government Code Section 87300 or the amendment of a conflict of interest code within the meaning of Government Code Section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest.

The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows:

SECTION 1. DEFINITIONS.

The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code.

SECTION 2. DESIGNATED EMPLOYEES.

The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests.

SECTION 3. DISCLOSURE CATEGORIES.

This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq.

In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency;

City of San Luis Obispo Conflict of Interest Code Page 5 (B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Government Code Section 87200; and
(C) The filing officer is the same for both agencies.1
Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee’s disclosure categories are the kinds of economic interests which he or she foreseeably can affect materially through the conduct of his or her office.

SECTION 4. STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING.

The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency’s conflict of interest code.2 SECTION 5. STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements no later than April 1.
(D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office.

SECTION 5.1. STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE.

Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following:

City of San Luis Obispo Conflict of Interest Code Page 6 (1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position.

SECTION 6. CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS.
(A) Contents of Initial Statements.

Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements.

Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively.
(C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Government Code Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to 2 Cal.

Code Regs. Section 18754.
(D) Contents of Leaving Office Statements.

Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.

SECTION 7. MANNER OF REPORTING.

Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information:
(A) Investments and Real Property Disclosure.

When an investment or an interest in real property3is required to be reported,4the statement shall contain the following:

1. A statement of the nature of the investment or interest;

2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;

3. The address or other precise location of the real property;

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4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure. When personal income is required to be reported,5the statement shall contain:

1. The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source;

2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000);

3. A description of the consideration, if any, for which the income was received;

4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received;

5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported,6the statement shall contain:

1. The name, address, and a general description of the business activity of the business entity;

2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity.
(E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.

City of San Luis Obispo Conflict of Interest Code Page 8 SECTION 8. PROHIBITION ON RECEIPT OF HONORARIA.
(A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official.

Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section.

This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506.

SECTION 8.1 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF $500 520 (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $500 520 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official.

Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section.

The gift limit is adjusted for inflation every odd-numbered year. With the requirement to update this code in even numbered years, the gift limit may change prior to the next code update. See the California Fair Political Practices Commission website, Gifts and Honoraria, for current limits: www.fppc.ca.gov.

SECTION 8.2. LOANS TO PUBLIC OFFICIALS.
(A) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control.
(B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans

City of San Luis Obispo Conflict of Interest Code Page 9 made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(E) This section shall not apply to the following:

1. Loans made to the campaign committee of an elected officer or candidate for elective office.

2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.

3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time.

4. Loans made, or offered in writing, before January 1, 1998.

SECTION 8.3. LOAN TERMS.
(A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans:

1. Loans made to the campaign committee of the elected officer.

2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.

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3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code.

SECTION 8.4. PERSONAL LOANS.
(A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances:

1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.

2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars ($100) or more was made on the loan.
c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months.
(B) This section shall not apply to the following types of loans:

1. A loan made to the campaign committee of an elected officer or a candidate for elective office.

2. A loan that would otherwise not be a gift as defined in this title.

3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due.

4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.

5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code.

SECTION 9. DISQUALIFICATION.

No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on:

City of San Luis Obispo Conflict of Interest Code Page 11 (A) Any business entity in which the designated employee has a direct or indirect investment worth two thousand dollars ($2,000) or more; (B) Any real property in which the designated employee has a direct or indirect interest worth two thousand dollars ($2,000) or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made;
(D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $470 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made.

SECTION 9.1. LEGALLY REQUIRED PARTICIPATION.

No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made.

The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section.

SECTION 9.2. DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES.

In addition to the general disqualification provisions of Section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more.

SECTION 10. DISCLOSURE OF DISQUALIFYING INTEREST.

When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest.

SECTION 11. ASSISTANCE OF THE COMMISSION AND COUNSEL.

Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 Cal. Code Regs. Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion.

City of San Luis Obispo Conflict of Interest Code Page 12 Section 12. Violations.

This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003.

NOTE: Authority cited: Section 83113, Government Code. Reference Sections 87103(e), 87300, 87302, 89501, 89502 and 89503, Government Code.
1 Designated employees who are required to file statements of economic interests under any other agency’s conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original statement is signed and verified by the designated employee as if it were an original. See Government Code Section 81004.
2 See Government Code Section 81010 and 2 Ca. Code of Regs. Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer.
3 For purposes of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer or real property located outside of the agency’s jurisdiction (property is considered within agency jurisdiction if it is located within jurisdictional boundaries as well as two miles outside of jurisdictional boundaries). 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act.

However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency.
6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer.

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CONFLICT OF INTEREST CODE

CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 1

DISCLOSURE CATEGORIES
CATEGORY 1 (Broad Disclosure)
All investments, business positions, and sources of income, including gifts, loans, and travel payments from sources doing business in the jurisdiction of the City.

All interests in real property within the jurisdiction, including property located within a two-mile radius of any property owned or used by the City.

CATEGORY 2 (Disclosure Related to Contracting/Purchasing) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type associated with the employee’s job assignment.

CATEGORY 3 (Disclosure Related to Licensing/Permitting) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that are subject to the regulatory, permit, or licensing authority of, or have an application for a license or permit pending before the City, and is subject the employee’s area of authority.

CATEGORY 4 (Disclosure Related to Grants/Service Providers) All investments, business positions, and income, including gifts, loans, and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants and other monies from or through the City, and subject to the employee’s area of authority.

CATEGORY 5 (Consultant Disclosure)
Must report investments, business positions, and income from business entities located in, planning to do business in, or doing business with the City of San Luis Obispo subject to the following: No financial interest need be reported unless it is from a source which provides services, supplies, material, machinery, or equipment of the type utilized by or which is subject to the regulatory permit or licensing authority of the department by which the consultant is employed.

Department Directors shall determine, based upon the description of the consultant’s duties outlined in the contract, whether or not a consultant will make or participate in making a governmental decision, and if so the consultant shall file a Statement of Economic Interest.

NEWLY CREATED/TEMPORARY POSITIONS
With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and, if so assign a disclosure category conforming to the position’s range of duties.

Determinations shall be made in writing on an FPPC Form 804 and provided to the City Clerk and the Human Resources Department.

CONFLICT OF INTEREST CODE

CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 2 LIST OF DESIGNATED POSITIONS

DESIGNATED POSITIONS DISCLOSURE CATEGORY
Committees/Commissions/Authorities:

Members of the Architectural Review Commission 3
Members of the Administrative Review Board 1
Members of the Construction Board of Appeals 1
Members of the Cultural Heritage Committee 3
Members of the Housing Authority 1
Members of the Human Relations Committee 4
Members of the Investment Oversight Committee 1
Members of the Parking Authority 1
Members of the Promotional Coordinating Committee 2, 4
Members of the Public Financing Authority 1
Administration Department
Assistant to the City Manager 2
City Clerk 2
Deputy City Manager 1
Diversity Equity Inclusion Manager 2, 4
Economic Development Manager 2, 3
Information Technology Manager 2
Information Services Supervisor 2
Network Services Supervisor 2
Public Communications Manager 2
Sustainability and Natural Resources Official 2, 3
Sustainability Manager 2
Tourism Manager 2, 4
City Attorney’s Office
Administrative Citation Hearing Officer 1
Assistant City Attorney 1

City of San Luis Obispo Conflict of Interest Code Page 2

DESIGNATED POSITIONS DISCLOSURE CATEGORY
Community Development Department
Building and Safety Supervisor 2, 3
Building Permit Services Supervisor 3
Code Enforcement Supervisor 2, 3
Deputy Building Official 2, 3
Deputy Director of Community Development - City Planner 1 Director of Community Development 1
Housing Policy and Program Manager 2, 4
Housing Coordinator 2, 3 4
Principal Planner 2, 3
Senior Planner 2, 3
Senior Civil Engineer 2, 3
Special Projects Manager 2, 3
Supervising Building Inspector 2, 3
Supervising Civil Engineer 2, 3
Community Services
Assistant City Manager 1
Business Services and Administrative Manager 2
CIP Process Improvement Manager 2, 3
Finance Department
Accounting Manager/Controller 2, 3
Senior Accountant 2
Financial Analyst – Purchasing 2, 3
Financial Analyst – Revenue 3
Financial Analyst – Infrastructure Financing 3 4
Principal Budget Analyst 2
Fire Department
Deputy Fire Chief 2, 3
Emergency Response Manager 4
Fire Battalion Chief 2, 3
Fire Chief 1
Fire Marshal Chief Building Official 2, 3
Fire Inspector II 2, 3
Fire Inspector III 2, 3
Human Resources Department
Director of Human Resources 2
Human Resources Manager 2
Risk Manager 2
Parks & Recreation Department
Director of Parks and Recreation 1
Recreation Manager (Community Services, Youth Services, and Public Art) 2 Recreation Manager (Aquatics, Facilities, & Golf) 2

City of San Luis Obispo Conflict of Interest Code Page 3

DESIGNATED POSITIONS DISCLOSURE CATEGORY
Police Department
Chief of Police 1
Communication Manager 2
Neighborhood Outreach Manager 2
Police Captain 2, 3
Public Works Department
Accessibility and Process Improvement Manager 2
Active Transportation Manager 2
Construction Engineering Manager 2
Deputy Director of Public Works City Engineer 2, 3
Deputy Director of Public Works Maintenance Operations 2, 3 Director of Public Works 1
Fleet Maintenance Supervisor 2
Maintenance Operations Manager 2
Parking Services Program Manager 2, 3
Parks Maintenance Supervisor 2
Senior Civil Engineer 2, 3
Streets Maintenance Supervisor 2
Supervising Civil Engineer 2, 3
Transit Manager 2, 3
Transportation Manager 2, 3
Urban Forest Supervisor/City Arborist 2, 3
Utilities Department
Deputy Director of Utilities Engineering and Planning 2, 3 Deputy Director of Utilities Wastewater 2, 3
Deputy Director of Utilities Water 2, 3
Director of Utilities 1
Environmental Programs Manager 2, 3
Laboratory Manager 2
Solid Waste and Recycling Coordinator 2
Utilities Business Manager 2
Utilities Engineer 2, 3
Utilities Special Projects Manager 2
Wastewater Collection System Supervisor 2
Wastewater Treatment Plant Supervisor 2
Water Distribution Chief Operator 2
Water Distribution System Supervisor 2
Water Resources Program Manager 2
Water Resource Recovery Facility Chief Operator 2
Water Resource Recovery Facility Chief Maintenance Technician 2 Water Resources Recovery Facility Supervisor 2
Water Treatment Plant Chief Operator 2
Water Treatment Plant Chief Maintenance Technician 2
Water Treatment Plant Supervisor 2
Whale Rock Reservoir Supervisor 2
Other Positions:

Housing Authority Executive Director 1
Consultants 5

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 20, 2022
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: 5d – APPROVE A RESOLUTION TO DELEGATE FLEET PURCHASING

AUTHORITY TO THE PUBLIC WORKS DIRECTOR AND FINANCE
PURCHASING DIVISION FOR TIER 4 AND 5 FLEET AND TRANSIT

PURCHASES MADE THROUGH COOPERATIVE PURCHASING

AGREEMENTS AND WITHIN THE COUNCIL APPROVED BUDGET
Staff received the following questions, regarding item 5d for streamlining Fleet and Transit Purchases. In addition to receiving questions, staff identified a clerical error within the report and clarification is provided. The questions and clarifications are below with staff’s response shown in italics:
1) Is the purposed Agenda Item and Resolution to allow Finance and the Public Works Director to approve Fleet and Transit replacements, or would this allow the approval of new assets?
The proposed Resolution would delegate purchasing authority to the Public Works Director and Finance Purchasing Division for new and replacement Fleet and Transit purchases that have been approved by the City Council, and the purchase price is within the Council approved budget. This Resolution does not give staff the authority to purchase assets that have not been approved by the City Council. 2) Does staff already have Tier 1-3 purchasing authority? The current Purchasing Policy is as follows:

For Tier 1 Purchases (Under $10k) staff must obtain a Purchase Order that is approved by the Department’s Fiscal Officer and the Purchasing Division in Finance.

For Tier 2 Purchases ($10k-$74,999) staff must obtain a Purchase Order that is approved by the by the Department’s Fiscal Officer, Department Head, and the Purchasing Division in Finance.

For Tier 3 Purchases ($75k-$199,999) staff must obtain a Purchase Order that is approved by the by the Department’s Fiscal Officer, Department Head, Purchasing Division in Finance, and City Manager.

Delegation of Tier 4 & 5 Fleet and Transit Purchases Page 2 For Tier 4 Purchases ($200k or more) staff must obtain a Purchase Order that is approved by the by the Department’s Fiscal Officer, Department Head, Purchasing Division in Finance, and City Council.

This Agenda Item and Resolution seeks City Council approval to delegate Tier 3 and 4 Fleet and Transit purchases that are within the Council approved budget to the Public Works Director and Purchasing Division within Finance. 3) Staff has identified a clerical error in the Council Agenda Report and Resolution.

The report and Resolution seek to Delegation of Tier 4 and 5 purchasing authority for Fleet and Transit purchases to the Public Works Director and the Purchasing Division within Finance.

The report contained a clerical error in that staff is seeking City Council authorization to delegate Tier 4 and 5 Fleet and Transit purchase authority to the Public Works Director and Purchasing Division within Finance. The City has no Tier 5 purchase thresholds. Staff is seeking City Council authorization to delegate Tier 4 Fleet and Transit purchase authority to the Public Works Director and Purchasing Division within Finance.

Attachments:

A – City’s General Good Purchasing Policy – Approval Thresholds

Professional
Services
General
Goods
CITY OF SAN LUIS OBISPO www.slocity.org

PURCHASING POLICY - APPROVAL THRESHOLDS
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
Under
$10,000
$10,000
to $39,999
$40,000
to $69,999
$70,000
to $150,000
$150,000
or more
Purchase Requisition (PR) approved by Fiscal Officer
Purchase Order (PO) approved by Purchasing
3 Quotes
PR approved by Fiscal Officer, Dept. Head
PO approved by Purchasing
RFP Required
PR approved by Fiscal Officer & Dept. Head
PO approved by Purchasing
City Manager Report and RFP Required
PR approved by Fiscal Officer
PO approved by Purchasing
Council Approval and RFP Required
PR approved by Fiscal Officer
PO approved by Purchasing

PURCHASING POLICY - APPROVAL THRESHOLDS
Tier 1
Tier 2
Tier 3
Tier 4
Under
$10,000
$10,000
to $74,999
$75,000
to $199,999
$200,000
or more
Purchase Requisition (PR) approved by Fiscal Officer
Purchase Order (PO) approved by Purchasing
3 Quotes
PR approved by Fiscal Officer, Dept. Head
PO approve by Purchasing
City Manager Report and RFP Required
PR approved by Fiscal Officer & Dept. Head
PO approved by Purchasing
Council Approval and RFP Required
PR approved by Fiscal Officer
PO approved by Purchasing

Item 5d
Department: Public Works
Cost Center: 5008
For Agenda of: 9/20/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Greg Cruce, Deputy Director – Maintenance Operations SUBJECT: APPROVE A RESOLUTION TO DELEGATE FLEET PURCHASING

AUTHORITY TO THE PUBLIC WORKS DIRECTOR AND FINANCE
PURCHASING DIVISION FOR TIER 4 AND 5 FLEET AND TRANSIT

PURCHASES MADE THROUGH COOPERATIVE PURCHASING

AGREEMENTS AND WITHIN THE COUNCIL APPROVED BUDGET

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, to delegate Fleet Purchasing Authority to the Public Works Director and Finance Purchasing Division for Tier 4 and 5 Fleet and Transit purchases made through Cooperative Purchasing Agreements and within the council approved budget.”

POLICY CONTEXT
Section 204 of the City’s Financial Management Manual allows for the use of cooperative purchasing agreements if the cooperative agreements were competitively bid. This section also allows for local dealers within the City limits to submit a quote to provide the same brand, model, and configuration of any item in a cooperative purchase agreement at or below the cooperative agreement vendor’s cost with the same terms and conditions.

If a competitive quote is received from a local dealer, the procurement can occur using the local dealer without initiating a separate competitive bidding process.

Section 405-I of the City’s Financial Management Manual states that fleet assets should generally be acquired new through State of California Multiple Award Schedule (CMAS) contracts. Section 405-I also suggests that specialized units not generally available through CMAS should generally be acquired new through “piggyback” purchases, where other local agencies have conducted competitive procurements and made those contracts available to other jurisdictions. Whenever possible, use of a dealer within the City limits is preferred if they can provide the same brand, model and configuration of item(s) identified in cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions.

Item 5d
The City’s Purchasing Policy designates general goods purchase thresholds into a fivetier system. Tier 4 requires the approval of the City Manager for single or cumulative purchases between the amount of $75,000 and $199,999; while Tier 5 requires the approval of the City Council for single or cumulative purchases exceeding the threshold of $200,000.

DISCUSSION
Background
The Fleet Services and Transit programs within the Public Works Department are responsible for the maintenance, repair, procurement, and disposal of City fleet and transit assets. The City prepares a two-year Financial Plan and appropriates a one‐year budget. The Capital Improvement Plan is a five-year plan for projects and fleet replacements. Funding is specifically allocated for each identified fleet asset, and all replacements are recommended based on meeting replacement criteria in the Fleet Replacement Policy.

Currently, when a fleet asset is approved for replacement, staff follow the Fleet Replacement Policy to identify a suitable replacement asset that meets the requirements of the program utilizing the asset with the overarching goal of obtaining Carbon Neutral City Operations by 2030. The City’s purchasing policy allows and encourages the use of cooperative purchasing agreements and historically, the City has utilized the Sourcewell Cooperative Purchasing contract, in addition to the Ford Fleet Program.

Sourcewell Cooperative Purchasing Agreement
The Sourcewell Cooperative Purchasing Agreement is often used by the Public Works Department when purchasing vehicles and equipment. This no-cost agreement combines the buying power of more than 50,000 government, education, and non-profit organizations to save time and money. The cooperative purchasing program manages the solicitation requirements and offers members easy access to an established network of awarded contracts.

Ford Fleet Program
The City also participates in the Ford Government Fleet Program and has been issued a Ford Fleet Identification Number for use when making vehicle purchases. This membership provides many of the same benefits as the Sourcewell Cooperative Purchasing Agreement, in that it provides the City with government fleet pricing, while utilizing the local Ford dealership for the purchase.

When staff identifies an approved replacement, they will seek pricing from the appropriate vendor. The vendor supplied quote (good for 30-days) is evaluated for accuracy of asset specifications and contract compliance. Staff will then submit a purchase requisition with the necessary documentation. When the assets’ independent cost or the cumulative cost of purchases within a fiscal year is elevated to Tier 4 or 5 as outlined in the City’s Purchasing Policy, the purchase requestion must be accompanied by City Manager or City Council approval.

Item 5d
Due to the rising cost of fleet and transit assets, the Tier 4 and 5 threshold is met and exceeded much more often than in the past. This new paradigm requires staff to draft and route many more reports for approval which adds a significant amount of time to the approval process in a very fast paced and competitive market. Delegating the fleet purchasing authority to the Public Works Director and Finance’s Purchasing Division for Tier 4 and 5 purchases made through a Cooperative Purchasing Agreement and within the Council approved budget will streamline this process, save significant staff time, and allow the City to compete fairly in a fast-evolving market. This authority will also assist the City in reaching the 2030 carbon reduction goal by expediting the process, which is expected to secure purchases in a timely manner by reducing the duration of time to issue a purchase order.

Public Engagement
Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.

CONCURRENCE
The Purchasing Division within the Finance Department concurs with the intent of this report.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: N/A Budget Year:

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

Total $ $ $ $

Item 5d
The delegation of purchasing approval in itself does not have a fiscal impact. All purchases contemplated under the approval delegation follow the annual budget appropriation and the purchases included in the fleet replacement program as outlined in the two-year Financial Plan, the appropriated budget, and the five-year Capital Investment Plan program.

ALTERNATIVES

1. Do not approve the Resolution as written. Council could choose to not approve the delegation of purchasing authority to the Director of Public Works and Finance’s Purchasing Division for Tier 4 or 5 single purchases but allow this delegation for cumulative purchases within the same fiscal year. Although there would be benefits to this option, larger purchase timeline would be affected.

2. Do not approve the Resolution. Council could choose not to approve the Resolution and require staff to seek City Manager or Council approval for single and cumulative tier 4 and 5 purchases. This alternative is not recommended due to the impacts of staff time as well as the additional time required to issue purchase orders.

ATTACHMENTS
A - Draft Resolution adopting delegation of purchasing authority to the Public Works Director and Purchasing Division for fleet and transit purchases

R ______
RESOLUTION NO. _____ (2022 SERIES)

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

OBISPO, CALIFORNIA, TO DELEGATE FLEET PURCHASING

AUTHORITY TO THE PUBLIC WORKS DIRECTOR AND FINANCE
PURCHASING DIVISION FOR TIER 4 AND 5 FLEET AND TRANSIT

PURCHASES MADE THROUGH COOPERATIVE PURCHASING

AGREEMENTS AND WITHIN THE COUNCIL APPROVED BUDGET
WHEREAS, in accordance with the San Luis Obispo City Charter Section 802, the City Manager shall send to the Council a careful estimate, in writing, of the amounts, specifying in detail the objects thereof required for the business and proper conduct of the various departments, offices, Boards and Commissions of the City, over which the office has control, during the next ensuing year; and
WHEREAS, the prepared budgets that are approved by the City Council include a five-year fleet and capital improvement project list that identifies specific funding for each project or asset; and
WHEREAS, the City’s Financial Management Manual requires the use of cooperative purchase agreements for fleet purchases; and WHEREAS, Tier 4 and 5 single and cumulative purchases require the approve of the City Manager or City Council; and
WHEREAS, current fleet and transit purchases often meet the Tier 4 and 5 thresholds; and
WHEREAS, streamlining the purchase process will save a significant amount of staff time and allow for expedited purchase orders.

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

Resolution No. _____ (2022 Series) Page 2
R _____
SECTION 1. Council authorizes delegation of fleet purchasing authority to the Public Works Director and Finance Purchasing Division for Tier 4 and 5 fleet and transit purchases made through cooperative purchasing agreements and within the Council approved budget.

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

AYES:

NOES:

ASSET:

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

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 20, 2022
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5e – APPROVE DESIGN-BUILD PROCUREMENT METHOD AND

AUTHORIZE THE ISSUANCE OF A REQUEST FOR PROPOSAL FOR
DESIGN AND CONSTRUCTION OF THE PHASE 1 MUNICIPAL FLEET

ELECTRIC VEHICLE CHARGING INFRASTRUCTURE PROJECT
Staff received the following question regarding Item 5e:
1) Question: In reference to the fiscal table in the staff report (copied below), why are Sewer and Water funds being allocated for the charging stations? Funding Sources Total Budget Available Annual Ongoing Cost General Fund $150,000 N/A
State
Federal
Fees
Other: Sewer Fund $37,500 N/A
Other: Water Fund $37,500 N/A
Total $225,000* N/A
Answer: The project site at 888 Morro Street will be used to charge Utilities Department electric fleet vehicles; therefore, Water and Sewer were provided funds to support this project.

Item 5e
Department: Public Works
Cost Center: 5008
For Agenda of: 9/20/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Anthony Ramos, Engineer III
SUBJECT: APPROVE DESIGN-BUILD PROCUREMENT METHOD AND

AUTHORIZE THE ISSUANCE OF A REQUEST FOR PROPOSAL FOR
DESIGN AND CONSTRUCTION OF THE PHASE 1 MUNICIPAL FLEET

ELECTRIC VEHICLE CHARGING INFRASTRUCTURE PROJECT

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, making findings on energy savings and determining other matters in connection with Energy Conservation Facilities”; and

2. Authorize the advertisement of a Request for Proposal (RFP) for the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure Project in a form approved by the City Engineer and City Attorney; and

3. Authorize the City Manager to execute the agreement with the preferred vendor; and

4. Authorize the City Engineer to execute amendments to the agreement with the selected vendor if within the available project budget; and

5. Authorize staff to pursue rebate and reimbursement opportunities related to fleet electric vehicle charging infrastructure projects to support design-build costs.

POLICY CONTEXT
The information presented in this report is grounded in standing policy, including:

Resolution 11159 (2020 Series), which includes the goal of carbon neutrality by 2035 and a “Lead by Example” goal of carbon neutral government operations by 2030.

Resolution 11263 (2021 Series), in which the City adopted the 2030 sector specific goal: “The City eliminates fossil fuel use in vehicle and equipment fleet.” In addition, this project supports the Major City Goal (MCG) of Climate Action, Open Space, and Sustainable Transportation by installing electric vehicle (EV) chargers to support the transition to all-electric fleet vehicles.

Item 5e
On May 17, 2022, Council approved a Purchasing Policy Update that requires Council approval for Consultant Contracts with a value of $150,000 in appropriated budget or more.

DISCUSSION
Background
City of San Luis Obispo Lead by Example Plan
On August 19, 2020, Council approved the City’s Climate Action Plan for Community Recovery (CAP), and adopted Resolution 11159 (2020 Series), which established a community-wide goal of carbon-neutrality by 2035. A central pillar of the CAP is a commitment to achieve carbon neutral City operations by 2030. As a trusted community leader, the City has a key role to play in implementing innovative climate actions that reduce greenhouse gas emissions across City operations, create a more resilient and equitable City organization, and are highly replicable.

In the City of San Luis Obispo, fleet operations are the second-largest contributor to municipal greenhouse gas emissions, contributing approximately 39% of overall emissions. The City’s Lead by Example plan establishes a goal to eliminate fossil fuel use in vehicle and equipment fleet. Under this broader goal, the City aims to achieve 100% all-electric light duty vehicles, 50% zero emissions medium and heavy-duty fleet, 100% all-electric transit fleet, and 100% all-electric equipment.

To take action towards these goals, Council provided funding for Capital Improvement Projects that build electric vehicle charging infrastructure to accommodate a growing Electric Vehicle (EV) fleet. In addition, staff pursued and was awarded grant funding from Central Coast Community Energy (3CE) to develop a comprehensive fleet electrification strategic plan to guide future fleet charging infrastructure investments. This strategic planning effort is underway and is expected to be completed by the end of 2022.

Proposed Streamlined Procurement Method
To streamline the installation of EV charging infrastructure for municipal fleet vehicles, staff proposes the use of a “design/build” procurement method with a qualified vendor in compliance with the California Government Code 4217.10, et seq., specifically, California Government Code 4217.12.

Government Code 4217.12
Staff recommends adopting a Resolution (Attachment A) to state that the Phase 1 Municipal Fleet EV Charging Infrastructure project is exempt from certain City procurement protocols due to its consistency with California Government Code Section 4217.12, which authorizes public agencies to enter into an energy service contract and any necessarily related facility ground lease on terms that its governing body determines are in the best interests of the public agency if the determination is made at a regularly scheduled public hearing, public notice of which is given at least two weeks in advance, and if the governing body finds:

Item 5e
1) That the anticipated cost to the public agency for thermal or electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the public agency of thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases. 2) That the difference, if any, between the fair rental value for the real property subject to the facility ground lease and the agreed rent, is anticipated to be offset by below-market energy purchases or other benefits provided under the energy service contract.

Please note that at this time ground leases are not required as the City owns all sites currently planned for new infrastructure.

Electric motors are substantially more efficient than internal combustion engines and the cost per mile of an electric vehicle is substantially cheaper than an internal combustion vehicle. Attachment B provides a cost savings analysis based on the PG&E EV Fleet Electrification Planning calculator showing that the cumulative cost of an electric fleet vehicle becomes cheaper than the cost of an equivalent fossil fuel vehicle over time. Since the Municipal Fleet EV Charging Infrastructure project would lead to a decrease in fossil fuel consumption, and a decrease in vehicle fuel costs, it is eligible as an energy conservation facility under Government Code 4217.12 and may pursue a streamlined procurement process.

Phase 1 of the Municipal Fleet EV Charging Infrastructure Project For the first phase of the Municipal Fleet EV Charging Infrastructure project the City plans to design and construct a total of five Level 2 chargers, two charging ports per charger, at two City-owned properties to service the all-electric fleet vehicles in the Utilities and Parks and Recreation Departments.

Pending Council action on this staff report, staff will develop a Request for Proposal (RFP) for Phase 1 in a form agreed on by the City Engineer and City Attorney. Staff are currently seeking information and reviewing RFPs for design/build EV Charging Infrastructure from comparison agencies before finalization and release of the RFP. The RFP will include terms and conditions to cover the design phase and construction of the work for this project. The scope of the design work includes preparation of construction documents for the site work needed for EV charging installations including conduit connections, charger mounts or pedestals, and any parking lot modifications. Installation locations are as follows:

City Property Lot Address
Number of Level 2 EV
Chargers (two charging
ports per charger)
Repertory Theatre
Building
888 Morro St, San Luis Obispo,
CA 93401 3
Parks & Recreation
Building
1341 Nipomo St, San Luis Obispo,
CA 93401 2

Item 5e
Phase 2 of the Municipal Fleet EV Charging Infrastructure Project Staff will return to Council prior to entering Phase 2 of the project in order to request authorization to release a RFP for the design-build services needed to complete the electric vehicle charging infrastructure for the entire fleet buildout per the Fleet Electrification Infrastructure Roadmap. The City is currently developing the Fleet Electrification Infrastructure Roadmap, which will identify the locations, number of chargers, and charger types needed to achieve the City’s adopted electric fleet goals.

Future phases of charger deployment will be informed by this work.

Previous Council or Advisory Body Action
August 18, 2020 – The City adopted the Climate Action Plan for Community Recovery, which included the goal of carbon neutrality by 2035 and a goal of carbon neutral government operations by 2030.

June 1, 2021 – Council adopted the 2021-23 Financial Plan with the Climate Action MCG that included funding to rapidly electrify the City’s buildings and facilities.

July 6, 2021 – Council adopted the Lead by Example Plan that outlined goals for the City to take climate action and called for fleet electrification.

June 7, 2022 – Council approved the grant submittal and award agreement between Central Coast Community Energy and the City of San Luis Obispo to support the Fleet Electrification Infrastructure Roadmap.

Public Engagement
The project appears in the 2021-23 Financial Plan, which was adopted on June 1, 2021 after an extensive public engagement effort.

CONCURRENCE
This report was completed in collaboration between Administration, City Attorney, and Public Works. The Parks and Recreation and Utilities department concur with this report.

ENVIRONMENTAL REVIEW
This project was reviewed by the Community Development Department, who concur this project is exempt under the California Environmental Quality Act (CEQA) and will file a Notice of Exemption upon council approval. The project proposes minor alterations to existing public facilities for installation of electric vehicle chargers and is exempt under Section 15301 Class 1 (existing facilities).

FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-2022, 2022-23
Funding Identified: Yes

Item 5e
Fiscal Analysis:

The Fiscal Year 2021-23 Financial Plan established the Electric Vehicle Charging Station at Various Facilities CIP (Project #1000513). Currently, there is an available balance of $225,000 in the project account as shown in the below table. The City is eligible to participate in the Central Coast Community Energy’s Electrify “Your Ride” program, which provides rebates for fleet vehicle charger installation and associated site work. Based on staff’s understanding of the current program and upon authorization from Council, staff will pursue the eligible $16,000 in rebate and reimbursement opportunities from the program in Fiscal Year 2022-23. Additional funding may also be available from the San Luis Obispo Air Pollution Control District (APCD). Staff is recommending authorization to award an agreement up to the available project budget of $225,000 plus any potential rebates received for the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure project. Any unspent funding will be used toward the next phase of the project.

Funding Sources Total Budget Available Annual Ongoing Cost General Fund $150,000 N/A
State
Federal
Fees
Other: Sewer Fund $37,500 N/A
Other: Water Fund $37,500 N/A
Total $225,000* N/A
* Total does not include any potential rebates available to the project through Central Coast Community Energy’s Electrify Your Ride program.

ALTERNATIVES
City Council could decide not to approve a streamlined procurement approach and authorize the RFP for the Phase 1 Municipal Fleet EV Charging Infrastructure Project. Under this alternative, the installation of EV charging infrastructure would not be completed in a streamlined approach. This action is not recommended by staff because it is inconsistent with the City’s climate action and lead by example goals.

ATTACHMENTS
A - Draft Resolution adopting streamlined procurement method for the EV Charging Infrastructure Project
B - Exhibit A to the Draft Resolution - Fleet Electric Vehicle Cost Savings Analysis

R ______
RESOLUTION NO. _____ (2022 SERIES)

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

OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS

AND DETERMINING OTHER MATTERS IN CONNECTION WITH

ENERGY CONSERVATION FACILITIES
WHEREAS, it is the policy of the State of California and the intent of the State Legislature to promote all feasible means of energy conservation and all feasible uses of alternative energy supply sources; and
WHEREAS, the City of San Luis Obispo (“City”) desires to reduce energy costs at its facilities; and
WHEREAS, electric motors are substantially more efficient than internal combustion engines and the cost per mile of an electric vehicle is substantially cheaper than an internal combustion vehicle (as illustrated in analysis, attached here as Exhibit A and made part hereof by this reference); and
WHEREAS, Exhibit A includes analysis showing that the anticipated cost to the City for using electrical energy for electric vehicles will be less than the anticipated cost of using fossil gas energy for vehicles; and
WHEREAS, the City proposes to issue a Request for Proposal and execute an agreement (“Agreement”) with the preferred vendor (“Vendor”) for the design-build procurement method of the Phase 1 Municipal Fleet Electric Vehicle Charging Infrastructure Project; and
WHEREAS, pursuant to Government Code section 4217.12(a), this Council held a regularly scheduled public hearing on September 20, 2022, public notice of which was given not less than two weeks in advance, to receive public comment, information, and staff input on the proposed project and procurement process.

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

SECTION 1. The above recitals are true and correct.

SECTION 2. The terms of the Agreement and related agreements are in the best interests of the City.

Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 3. In accordance with Government Code section 4217.12, and based on data provided by Exhibit A, public comment, and staff input received at the public hearing, and information provided to Council in connection with the public hearing, the Council finds that the anticipated cost to the City for electric vehicle charging stations to be installed and operated under the Agreement will be less than the anticipated marginal cost to the City for operating fossil fuel energy vehicles that would have been used by the City in the absence of the installation and operation of electric vehicle charging stations pursuant to the Agreement.

SECTION 4. The City Manager and City Attorney are hereby authorized and directed to negotiate any further changes, insertions and omissions to the Agreement as they reasonably deem necessary, and thereafter to execute and deliver the Agreement following the Council’s adoption of this Resolution. The City Manager is further authorized and directed to execute and deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this Resolution and said Agreement.

SECTION 5. The City Engineer is hereby authorized and directed to negotiate any amendments to Agreement as they reasonably deem necessary to complete the work, if within the available project budget.

SECTION 6. Environmental Review. The City Council hereby determines that the execution of an Agreement with Vendor is statutorily and categorically exempt from environmental review on the basis that the project proposes minor alterations to existing public facilities for installation of electric vehicle chargers (CEQA Guidelines § 15301).

Resolution No. _____ (2022 Series) Page 3
R ______
SECTION 7. City staff are hereby authorized to file and process a Notice of CEQA Exemption for the project in accordance with CEQA and the State CEQA Guidelines, and the findings set forth in this Resolution.

Upon motion of _______________________, seconded by
_______________________, 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 5f
Department: Public Works
Cost Center: 5008
For Agenda of: 9/20/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Greg Cruce, Deputy Director - Maintenance Operations SUBJECT: AUTHORIZATION TO ISSUE A LETTER OF INTENT FOR A NEW

STORMWATER HYDRO-CLEANER TRUCK

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing staff to issue Letters of Intent for Vehicle Purchases” for a Stormwater Hydro-Cleaning Truck with budget appropriation in the 2023-25 Financial Plan due to length of estimated manufacturing times.

POLICY CONTEXT
Climate Action, Open Space, and Sustainable Transportation were adopted by the City Council as a Major City Goal within the 2021-23 Financial Plan. Replacing the Stormwater Hydro Truck in a reduced timeframe will allow the City to better react to the changing climate and potential for elevated amounts of precipitation, in addition to lowering carbon emissions by use of a single engine operation as opposed to the current model which utilizes two engines that run simultaneously.

Section 405-I of the City’s Financial Management Manual allows for the procurement of fleet assets through a cooperative purchase agreement. When local dealerships can deliver the same make and model at or below the cooperative purchasing net cost within the same terms and conditions, the local dealership shall be used. Unfortunately, HydroCleaning Trucks are specialty equipment and cannot be purchased locally.

This action is considered a purchase of goods and in compliance with the City’s Municipal Code Section 3.24, which requires Council approval for any purchase in excess of $200,000.

DISCUSSION
Background
The Wastewater Collection Program (WWC) within the Utilities Department is responsible for maintenance and operation of the City’s storm drain system and does so using a Hydro Cleaning Truck that scours and vacuums storm drain lines.

Item 5f
The current Stormwater Hydro Cleaning Truck is a 2008 model and is used daily by staff to ensure the storm drain system is free of debris and to maintain compliance with the City Stormwater Permit. The current unit has exceeded its useful life and needs replacement.

The WWC Program has three Hydro Cleaning Trucks. One of the Hydro Cleaning Trucks is solely assigned to the stormwater work and the other two are strictly used for sewer cleaning work. Cross contamination of equipment prohibits use of a sewer specific Hydro Cleaning Truck to be used for the Stormwater Program. When the Stormwater Truck experiences a mechanical failure, the program is left without a working truck for the specific need, which can leave the City vulnerable during storm events.

The current truck is scheduled to be replaced during the 2023-24 Fiscal Year, which is necessary due to the truck’s current condition. The truck is 14 years old and used daily for storm drain cleaning. The truck is often out of service for repairs, which has negatively impacted Fleet and WWC staff. Due to the pandemic, global supply chains have been severely impacted, which has resulted in unprecedented lead times for parts and equipment. Current truck builds are taking up to 12 months to deliver once a contract is signed. Staff is recommending Council authorize staff to issue a “Letter of Intent” for this vehicle purchase.

Sourcewell Cooperative Purchasing Agreement
Haaker Equipment Company represents the Vactor brand of Hydro Cleaners, which staff has thoroughly vetted for its ability to meet the WWC Program needs, its ease of use, its effectiveness of cleaning and vacuuming technology, and its durability. The City’s Fleet Maintenance supervisor believes the Vactor Hydro Cleaner to be an excellent Hydro Cleaner with responsive service support from Haaker Equipment Company. The proposal provided by Haaker Equipment Company for this equipment was quoted using the Sourcewell Cooperative Purchasing Agreement, which guarantees municipal agencies competitive bids on proposed equipment. The discount for the Sourcewell contract is listed as $12,564.

Public Engagement
Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. Robust public engagement occurred as part of the 2021-23 Financial Plan process.

CONCURRENCE
The Utilities Department concurs with this report.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

Item 5f

FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $500,000 $ $126,010.67 $
State
Federal
Fees
Other:

Total $500,000 $ $126,010.67 $
The City prepares a two-year Financial Plan and appropriates a one‐year budget. The Capital Improvement Plan included in the Financial Plan is a five-year plan for projects and fleet replacements. The Stormwater Tuck is currently budgeted for $500,000, and the Hydro Cleaning Truck is $626,010.67 which leaves a funding gap of $126,010.67. Issuing a Letter of Intent will secure this pricing. Approving this request will obligate the City, and Council to increase the funding amount towards this need by $126,010.67 with the 2023- 25 Financial Plan. This action does not advance the funding but commits the appropriation ahead of the traditional budget appropriation schedule. Due to the unprecedented price increases for fleet vehicles and equipment, it is expected the Fleet replacement funding will need to be augmented with the 2023-25 Financial Plan. If this is not feasible, staff will have to prioritize fleet replacements and defer less critical replacements in order to support this funding need.

ALTERNATIVES
Do not authorize staff to submit a Letter of Intent for this purchase. Council could choose to wait for the fiscal year that the vehicles have been budgeted before ordering.

Not authorizing a letter of intent will likely result the Stormwater Hydro Truck being delayed by up to a year, with subsequent inefficiencies because of vehicle age, additional maintenance, and regulatory requirements. Waiting may also result in possible higher purchase costs.

ATTACHMENTS
A - Sourcewell Quote for a Stormwater Hydro Truck
B - Draft Resolution authorizing the issuance of a Letter of Intent for a Stormwater Hydro Truck

2070 N White Avenue – La Verne CA 91750
(909) 598-2706 Fax: (909) 598-1427 ~ haaker.com

PROPOSAL
August 17, 2022
TO: CITY OF SAN LUIS OBISPO Attn: Mr. Ryan Beech
25 Prado Road 805-781-7033
San Luis Obispo CA 93401 Email: [email protected]
In accordance with your request, we are pleased to submit the following proposal for your consideration and approval based on the Sourcewell Cooperative Purchasing Agreement Contract #101221-VTR.

ONE NEW VACTOR 2115 PLUS JET RODDER
2100 Plus Unit with Single Engine Dual Stage Fan, 15 Yard Debris Body and 1500 Gallons of Water, Mounted on a 2024 Freightliner 114SD 6x4, 370 HP Chassis with Allison Automatic Transmission. Equipped with all Standard/ Optional Equipment listed:

Standard Equipment Included
· Aluminum Fenders
· Mud Flaps
· Electric/Hydraulic Four Way Boom
· Color Coded Sealed Electrical System
· Intuitouch Electronic Package
· Double Acting Dump Hoist Cylinder
· Handgun Assembly w/35' x 1/2" Hose w/Quick
Disconnects
· 3" Y-Strainer at Water Pump Inlet
· Ex-Ten Steel Cylindrical Debris Tank
· Flexible Hose Guide
· (3) Nozzles with Carbide Inserts w/Rack
· Suction Tube Storage - 4 Pipe
· 1" Nozzle Pipe
· 10' Leader Hose
· Flat Rear Door w/Hydraulic Locks
· Dual Stainless Steel Float Shut Off
· Debris Body Vacuum Relief System
· Debris Deflector Plate
· 60" Dump Height
· Additional Water Tank Sight Gauge
· Liquid Float Level Indicator
· Boom Transport Post Storage
· Boom Out of Position Indicator/Alarm
· Body Out of Position Indicator/Alarm
· 3" Y-Strainer @ Water Pump
· Performance Package
· 1" Water Relief Valve
· Midship Handgun Coupling
· Side Mounted Water Pump
· Hose Wind Guide (Dual Roller)
· Hose Reel Manual Hyd. Extend/Retract
· Hose Reel Chain Cover (Full)
· Hydraulic Extending 15", Rotating Hose Reel, 1" x 800' Capacity
· Tachometer & Hourmeter/Blower
· Circuit Breakers
· LED Lights. Clearance, Back-Up, Stop, Tail & Turn
· Tow Hooks, Front and Rear
· Electronic Back-Up Alarm
· Hydraulic Tank Shutoff Valves
· Module Paint, Dupont Imron Elite - Sanded Primer Base Page 77 of 152 · 7" Vacuum Pipe Package
· Emergency Flare Kit
· Fire Extinguisher 5 Lbs.
· Fixed Rear Door Pipe Rack, 7" Pipe
· Subframe Mounted, 2-Pipe Rack, 7"
· Low Water Alarm with Water Pump Flow Indicator
· Joystick Boom Control
· Rodder System Accumulator- Jack Hammer on/off
control w/ manual valve
· Digital Hose Footage Counter
· Water Pump Hour Meter
· PTO Hour Meter
· Hydraulic Oil Temp Alarm
· Digital Water Pressure Gauge
· Vactor Standard Manual and USB Version
Optional Equipment Included
· Remote Pendant Control with 35’ Cord
· 24" x 26" x 69" Curb Side Aluminum Toolbox with
Lighting
· 180 deg. 10' x 15' Rapid Deployment Boom
· Heavy Duty RDB Hose
· RDB Washout Coupling
· 70 GPM Variable Flow Water System
· 3000 PSI Water Pressure
· 1" x 800' Piranha Sewer Hose, 3000 PSI
· Debris Body Washout
· 6" Knife Valve w/Cam-Loc, Rear Door, 3:00 Position
· Additional Water, Water and Debris Tanks Joined
· Centrifugal Separators (Cyclones)
· Folding Pipe Rack, Curbside, 7" Pipe
· Folding Pipe Rack, Street side, 7" Pipe
· Rear Door Splash Shield
· Lube Manifold
· Plastic Lube Chart
· Additional Water Tank Fill
· Bellypack Wireless Controls with hose reel controls, 2- way communications, and LCD Display
· Rotatable Boom Inlet Hose
· Anti Splash Valve, Body Inlet
· Handgun Couplers, Front and Rear
· Hydro Excavation Kit - Includes Lances w/ Shield,
Nozzles, Storage Tray, and Vacuum Tube
· Hose Wind Guide (Dual Roller), Auto, Non-Indexing
· Fan Flush out System
· Rodder Hose Pinch Roller
· Hose Reel Manual Rewind Tool
· 2 High Pressure Hose Reels
· Front Hose Reel Tool Storage
· Rodder Pump Drain Valves
· Wireless, Waterproof, Rechargeable, Handheld, LED Spot Light w/12V Charger
· LED Mid-Ship Turn Signals
· Worklights (2), LED, Boom
· Worklights (2), LED, Rear Door
· Worklight, LED, Operators Station
· Worklight, LED, Hose Reel Manhole
· Worklight, LED, Curb Side
· Worklight, LED, Street Side
· Toolbox, Front Bumper Mounted, 16 x 12 x 18 w/ (2)
LED Side Markers
· Behind Cab Toolbox with Lighting
· Toolbox, Driver Side Chassis Frame, 24w x 24h x 24d,
with Lighting
· Toolbox, Driver Side Subframe, 36w x 20h x 12d, with
Lighting
· (4) Long Handle Tool Storage Locations behind Cab
· Camera System, Front, Rear and Both Sides
· Safety Cone Storage Rack - Post Style
· Additional Safety Cone Storage Rack - Post Style
· Digital Water Level Indicator
· Digital Debris Body Level Indicator
· Door Stripe Material, Reflective Tape, Blue
· (2) 7" x 60" Vacuum Pipe Weldments
· (1) 7" x 36" Higbee Catch Basin Nozzle
· 1 Printed Full Vactor Manual
· Vactor Standard Manual and USB Version
· Whelen LED Light Package
· Blue Vinyl Stripe around chassis

Unit Price......................................................................................................... $ 588,206.00 Sourcewell Discount:.......................................................................................($ 12,564.00) Subtotal:............................................................................................................ $ 575,642.00 Sales Tax (8.75%)............................................................................................. $ 50,368.67 TOTAL PRICE, FOB: San Luis Obispo, CA:............................................. $ 626,010.67

THE PROPERTY HEREIN IS GUARANTEED BY MANUFACTURER'S WARRANTY ONLY AND SELLER MAKES NO

WARRANTY EXPRESSED OR IMPLIED, OF MERCHANTABILITY OR OTHERWISE, OR OF FITNESS FOR ANY PARTICULAR PURPOSE, THAT EXTENDS BEYOND THE ABOVE DESCRIPTION OF THE EQUIPMENT.

NOTE: Price is good until 30 Days. Cost increases due to the addition of Government mandated safety or environmental devices incurred after the date of this proposal, will be charged to you at our cost. Proof of such costs, if any, will be documented.

TAXES: SALES TAX shown is subject to change. Sales tax will be calculated and charged based on current rates for the location of the sale at time of invoice. FEDERAL EXCISE TAXES, if applicable, will require payment unless a properly executed Exemption Certificate is submitted.

DELIVERY: 270-330 Days TERMS: Net 30
We appreciate the opportunity to present this proposal and look forward to being of further and continued service.

HAAKER EQUIPMENT COMPANY ACCEPTED BY:

BY: Bryan Fox DATE:

BRYAN FOX

R _____
RESOLUTION NO. _____ (2022 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING STAFF TO ISSUE LETTERS OF

INTENT FOR VEHICLE PURCHASES
WHEREAS, on June 1, 2021, the Council adopted Resolution No. 11251 (2021 Series), which approved and appropriated the 2021-23 Financial Plan and the 2021-22 budget allocation including operating, debt service, and the five-year fleet and capital improvement plan; and
WHEREAS, the 2023-24 fiscal year within the fleet and capital improvement plan includes funding for a new Stormwater Hydrocleaning Truck; and WHEREAS, current estimates for truck builds are approximately 12 months from initial bid acceptance; and
WHEREAS, if staff waits until July 1, 2023, to order vehicles that are included in the FY 2023-24, the City will likely not receive the vehicle until the following fiscal year; and
WHEREAS, maintaining the City’s fleet is essential to operating programs that ensure the City of San Luis Obispo’s residents’ health and safety.

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

SECTION 1. Council authorizes staff to submit letters of intent for vehicle purchases with estimated delivery times in the Fiscal Year the budget is planned to be appropriated.

Resolution No. _____ (2022 Series) Page 2
R _____
SECTION 2. Council authorizes staff to augment the 2023-24 budget allocation to address the increased cost of the new truck.

Upon motion of ___________, seconded by ____________, 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

Item 5g
Department: Finance
Cost Center: 2001
For Agenda of: 9/20/2022
Placement: Consent
Estimated Time: N/A
FROM: Brigitte Elke, Finance Director
SUBJECT: AUTHORIZATION TO FORM A SECTION 115 TRUST FUND WITH THE CALIFORNIA EMPLOYERS’ PENSION PREFUNDING TRUST

RECOMMENDATION

1. Approve an agreement to establish and fund a Section 115 Trust Fund with the California Employers’ Pension Prefunding Trust administered by CalPERS; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, delegating the authority to request disbursements from the California Employers’ Pension Prefunding Trust.”

POLICY CONTEXT
In Fiscal Year 2018-19, the City implemented the Fiscal Health Response Plan (FHRP) to address the City’s unfunded pension liability (UFL) and the change in funding requirements. The plan put in motion a strategy to pay the current UFL over a 20-year horizon and establish a Section 115 Trust fund to assist with the needed payments in the outer years when funding levels might be insufficient to make the additional required annual payment under the FHRP strategy. To that end, the City Council approved the release of the Request for Proposals (RFP), which was made available publicly and sent directly to the four companies known to offer these types of trust funds. With the review of the FY2021-22 Mid-Year Budget, the City Council reaffirmed its commitment to the trust fund and an initial funding of $2,428,052. The Council will receive the unaudited FY 2021-22 year-end results on October 4th and staff will likely propose additional funding to the Section 115 Trust to position the City for any future economic volatility and if these funds are not needed in the future, to then accelerate the paydown of unfunded liabilities consistent with adopted Council policies related to unappropriated year-end savings.

DISCUSSION
Background
With the introduction of the City’s Fiscal Health Response Plan with the FY2018-19 Budget Supplement, staff brought forth a comprehensive strategy to pay-down the City’s current UFL over a 20-year timeframe instead of the CalPERS prescribed 30 years while keeping the City on a fiscally sustainable path to provide the services the community expects. This strategy is anticipated to save the City approximately $20 million in otherwise applicable interest cost by paying down the unfunded liability earlier than required.

Item 5g
Part of the strategy were additional annual payments as well as the creation of a Section 115 Trust Fund to assist the payment schedule during years when the annual City budget would not be able to accommodate the additional payments required by the strategy. The City already holds a similar trust fund for its other post-employment benefits (OPEB) with CalPERS’ California Employers’ Retiree Benefit Trust (CERBT) program that has seen solid return on investment. The fund contemplated here would be specifically for pension obligations, be it as part of the unfunded liability or the annual normal cost for the City’s pension plan. After the 30-year window to pay off the current UFL, the annual normal cost should be sufficient to pay the obligations under the pension plan, but a certain UFL will likely remain a part of the retirement benefit environment. It is therefore prudent to establish a safeguard that will assist with the obligations when budgetary constraints would otherwise jeopardize the annual payments and require operating austerity measures. A Section 115 Trust fund offers that tool with flexibility as to the use of the funds to offset pension obligations.

Together with the strategy, the City Council approved the release of a request for proposals which was made publicly available and sent directly to the companies known to be active in this specialized investment space. It was ultimately responded to by three companies:

1. Public Agency Retirement Services (PARS). They were the first to offer a Section 115 Trust fund for pensions in 2005 and today administer 252 accounts.

2. PFM. They are a smaller player in the space but have administered a pool of customers commissioning Section 115 Trust Funds since 2014.

3. California Employers’ Pension Prefunding Trust (CEPPT) through CalPERS (Attachment A). Though CalPERS has offered OPEB related trust funds through the CERBT program since 2007, their program for pension funds is relatively new.

It was established in 2019 and has attracted 57 public employers since.

Proposal and Vendor Evaluation
A team of four members, representing the CSG group (Business Services and Administrative Manager), Utilities (Business Manager), Human Resources (Human Resources Manager), and Finance (Finance Director) reviewed the proposals and rated them based on a series of pre-determined criteria. The criteria concentrated on rating the understanding of the City’s pension strategy and the proposed solutions, the approach to and incorporation of ESG (Environmental, Social and Governance) considerations, the experience of the investment team, proposed interaction with City staff, reports and analytics including access to those tools, and the administrative proposed cost structure.

Item 5g
After the review of the submitted proposals, the ratings showed the following results:

Rating based on evaluation criteria
Evaluator / Firm PFM PARS CEPPT
CSG Group 57 55 52
Human Resources 68 59 71
Utilities 64 56 74
Finance 67 62 70
Total 256 232 267
Given the small pool of applicants, the evaluation team decided to invite all three to an interview which was held via the Teams online platform. After the interview, which was structured around several questions the applicants could prepare for and follow-up clarifications and inquiries from the evaluation team, the results revealed the following rating and a preferred vendor in CalPERS’ CEPPT program.

Ranking after oral presentations
Evaluator / Firm PFM PARS CEPPT
CSG Group 2 3 1
Human Resources 2 3 1
Utilities 2 3 1
Finance 2 3 1
The main value propositions of the CEPPT program are the ease of administration, the attractive low-cost formula, the demonstrated investment return (based on CERBT), and the program’s direct access to and interaction with the CalPERS actuarial valuations. This connection will also assist with the modeling of Additional Discretionary Payments (ADPs) utilizing the CalPERS pension calculator tool and support the City’s evaluation of its longterm payment strategy in collaboration with CEPPT.

Time Delay
Though the RFP process had been approved by the City Council in connection with the first deliverables of the Fiscal Health Response Plan, the actual process was ultimately delayed by the implementation of the City’s Human Capital Management system and with the onset of the COVID-19 pandemic. In an effort to protect the City from any adverse effects the pandemic might yield, the funding was held, together with scheduled ADPs, in the assigned fund balance. Given the City’s fiscal standing, the City Council reaffirmed the investment in the Section 115 Trust Fund with the FY 2021-22 Mid-Year Budget Review. All documents to establish and fund the Trust Fund are now ready for execution.

Previous Council or Advisory Body Action
The City Council with the implementation of the Fiscal Health Response Plan and reaffirmed the funding with the 2021-22 mid-year report in February of 2022 by Resolution 11307.

Item 5g
Public Engagement
The item will be considered by the City Council during the public meeting on September 20, 2022. All required notifications have been provided and the public can address the item prior to the meeting or during the public comment period.

CONCURRENCE
Through their participation in the evaluation process, the Community Services Group, the Utilities Department, and Human Resources concur with this recommendation.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended actions in this report because the actions do not constitute a “Project” under CEQA Guidelines Section 15378. Once a draft Strategic Plan is created, it will be evaluated to determine if the plan or any of its components require environmental review under CEQA prior to adoption.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ 2,000,000 $ $ $
State
Federal
Fees
Other: Various
Funds
$ 428,052
Total $ 2,428,052 $ $ $

FISCAL IMPACT
With the FY2021-22 Mid-Year Budget Review, the City Council reaffirmed the initial funding for the Section 115 Trust fund of $2,428,052 with $2 million coming from General Fund and $428,052 coming from three of the City’s four Enterprise Funds, Whale Rock, and the Tourism Business Improvement District (TBID) Fund as outlined in the table below. The Transit Fund cannot partake in the Trust Fund since federal and state funding can only be used to cover actual expenditures.

Item 5g
General Fund $2,000,000
Water Fund $166,317
Sewer Fund $170,896
Parking Fund $61,446
Whale Rock $21,417
TBID $7,976
Total $2,428,052
The current strategy considers contributions the fund over the next few years up to $6 million so it can then grow over the time period allotted to pay-off the UFL. The funding will be used to offset UFL payments during years that would require reductions in operating or capital improvement plan budgets due to the annual UFL cost required for a 20-year paydown, or at the end of the 20-year period to pay for the final payment under the UFL plan. The strategy will have to be revisited throughout the years to determine the best and most advantageous use of the funding as well as the City’s overall fiscal health and sustainability.

Since the funding in the Section 115 Trust fund can be activated for pension related expenditures at any time through Council action, the available balance is considered a restricted fund balance.

ALTERNATIVES

1. The City Council could decide to use a different vendor for the Section 115 Trust Fund. This is not recommended since the recommendation is based on a thorough evaluation process of both, the written proposals, and the interview presentations from all three vendors.

2. The City Council could decide not to enter into an agreement with CEPPT and not create the Section 115 Trust Fund. This is not recommended as the Section 115 Trust fund is an important and integral part of the overall strategy to pay-off the City’s unfunded pension liability over a 20-year timeframe.

ATTACHMENTS
A - Draft CEPPT Agreement
B - Draft Resolution assigning CEPPT Delegation of Disbursement Authority

CALIFORNIA EMPLOYERS’ PENSION PREFUNDING TRUST PROGRAM

AGREEMENT AND ELECTION
OF
(NAME OF EMPLOYER)
to Prefund Employer Contributions to a Defined Benefit
Pension Plan
WHEREAS (1) Government Code (GC) Section 21711(a) establishes in the State Treasury the California Employers’ Pension Prefunding Trust Fund (CEPPT), a special trust fund for the purpose of allowing eligible employers to prefund their required pension contributions to a defined benefit pension plan (each an Employer Pension Plan) by receiving and holding in the CEPPT amounts that are intended to be contributed to an Employer Pension Plan at a later date; and WHEREAS (2) GC Section 21711(b) provides that the California Public Employees' Retirement System (CalPERS) Board of Administration (Board) has sole and exclusive control of the administration and investment of the CEPPT, the purposes of which include, but are not limited to (i) receiving contributions from participating employers; (ii) investing contributed amounts and income thereon, if any, in order to receive yield on the funds; and (iii) disbursing contributed amounts and income thereon, if any, to pay for costs of administration of the CEPPT and to deposit employer contributions into Employer Pension Plans in accordance with their terms; and WHEREAS (3) _____________________________________________________ (NAME OF EMPLOYER) (Employer) desires to participate in the CEPPT upon the terms and conditions set by the Board and as set forth herein; and
WHEREAS (4) Employer may participate in the CEPPT upon (i) approval by the Board and (ii) filing a duly adopted and executed Agreement and Election to Prefund Employer Contributions to a Defined Benefit Pension Plan (Agreement) as provided in the terms and conditions of the Agreement; and
WHEREAS (5) The CEPPT is a trust fund that is intended to perform an essential governmental function (that is, the investment of funds by a State, political subdivision or 115 entity) within the meaning of Internal Revenue Code (Code) Section 115 and Internal Revenue Service Revenue Ruling 77-261, and as an Investment Trust Fund, as defined in Governmental Accounting Standards Board (GASB) Statement No. 84, Paragraph 16, for accounting and financial reporting of fiduciary activities from the 1/12/2022 Page 1 of 11
City of San Luis Obispo City of San Luis Obispo

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external portion of investment pools and individual investment accounts that are held in a trust that meets the criteria in Paragraph 11c(1).

WHEREAS (6) The CEPPT is not a Code Section 401(a) qualified trust and the assets held in the CEPPT are not assets of any Employer Pension Plan or any plan qualified under Code Section 401(a).

NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY MAKES THE

FOLLOWING REPRESENTATION AND WARRANTY AND THAT THE BOARD AND EMPLOYER AGREE TO THE FOLLOWING TERMS AND CONDITIONS:

A. Employer Representation and Warranty
Employer hereby represents and warrants that it is the State of California or a political subdivision thereof, or an entity whose income is excluded from gross income under Code Section 115(1).

B. Adoption and Approval of the Agreement; Effective Date; Amendment (1) Employer's governing body shall elect to participate in the CEPPT by adopting this Agreement and filing with the Board a true and correct original or certified copy of this Agreement as follows:

Filing by mail, send to: CalPERS
CEPPT
P.O. Box 1494
Sacramento, CA 95812-1494
Filing in person, deliver to: CalPERS Mailroom
CEPPT
400 Q Street
Sacramento, CA 95811
(2) Upon receipt of the executed Agreement, and after approval by the Board, the Board shall fix an effective date and shall promptly notify Employer of the effective date of the Agreement. Employer shall provide the Board such other documents as the Board may request, including, but not limited to a certified copy of the resolution(s) of the governing body of Employer authorizing the adoption of the Agreement and documentation naming Employer’s successor entity in the event that Employer ceases to exist prior to termination of this Agreement.
(3) The terms of this Agreement may be amended only in writing upon the agreement of both the Board and Employer, except as otherwise provided herein. Any such amendment or modification to this Agreement shall be adopted and executed in the same manner as required for the Agreement. Upon receipt of the executed amendment or modification, the Board shall fix the effective date of the amendment or modification.

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(4) The Board shall institute such procedures and processes as it deems necessary to administer the CEPPT, to carry out the purposes of this Agreement, and to maintain the tax-exempt status of the CEPPT. Employer agrees to follow such procedures and processes.

C. Employer Reports Provided for the Board’s Use in Trust Administration and Financial Reporting and Employer Contributions
(1) Employer shall provide to the Board a defined benefit pension plan cost report on the basis of the actuarial assumptions and methods prescribed by Actuarial Standards of Practice (ASOP) or prescribed by GASB. Such report shall be for the Board’s use in trust administration and financial reporting and shall be prepared at least as often as the minimum frequency required by applicable GASB Standards. This defined benefit pension plan cost report may be prepared as an actuarial valuation report or as a GASB compliant financial report. Such report shall be:
1) prepared and signed by a Fellow or Associate of the Society of Actuaries who is also a Member of the American Academy of Actuaries or a person with equivalent qualifications acceptable to the Board;
2) prepared in accordance with ASOP or with GASB; and
3) provided to the Board prior to the Board's acceptance of contributions for the reporting period or as otherwise required by the Board. (2) In the event that the Board determines, in its sole discretion, that Employer’s cost report is not suitable for the Board’s purposes and use or if Employer fails to provide a required report, the Board may obtain, at Employer's expense, a report that meets the Board’s trust administration and financial reporting needs. At the Board’s option, the Board may recover the costs of obtaining the report either by billing and collecting such amount from Employer or through a deduction from Employer's Prefunding Account (as defined in Paragraph D(2) below).
(3) Employer shall notify the Board in writing of the amount and timing of contributions to the CEPPT, which contributions shall be made in the manner established by the Board and in accordance with the terms of this Agreement and any procedures adopted by the Board.
(4) The Board may limit Employer’s contributions to the CEPPT to the amount necessary to fully fund the actuarial present value of total projected benefit payments not otherwise prefunded through the applicable Employer Pension Plan (Unfunded PVFB), as set forth in Employer’s cost report for the applicable period. If Employer’s contribution would cause the assets in Employer’s Prefunding Account to exceed the Unfunded PVFB, the Board may refuse to accept the contribution. If Employer’s cost report for the applicable period does not set forth the Unfunded PVFB, the Board may

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refuse to accept a contribution from Employer if the contribution would cause the assets in Employer’s Prefunding Account to exceed Employer’s total pension liability, as set forth in Employer’s cost report.
(5) No contributions are required. Contributions can be made at any time following the effective date of this Agreement if Employer has first complied with the requirements of this Agreement, including Paragraph C.
(6) Employer acknowledges and agrees that assets held in the CEPPT are not assets of any Employer Pension Plan or any plan qualified under Code Section 401(a), and will not become assets of such a plan unless and until such time as they are distributed from the CEPPT and deposited into an Employer Pension Plan.

D. Administration of Accounts; Investments; Allocation of Income (1) The Board has established the CEPPT as a trust fund consisting of an aggregation of separate single-employer accounts, with pooled administrative and investment functions.
(2) All Employer contributions and assets attributable to Employer contributions shall be separately accounted for in the CEPPT (Employer’s Prefunding Account). Assets in Employer’s Prefunding Account will be held for the exclusive purpose of funding Employer’s contributions to its Employer Pension Plan(s) and defraying the administrative expenses of the CEPPT.
(3) The assets in Employer’s Prefunding Account may be aggregated with the assets of other participating employers and may be co-invested by the Board in any asset classes appropriate for a Code Section 115 trust, subject to any additional requirements set forth in applicable law, including, but not limited to, subdivision (d) of GC Section 21711.

Employer shall select between available investment strategies in accordance with applicable Board procedures.
(4) The Board may deduct the costs of administration of the CEPPT from the investment income of the CEPPT or from Employer’s Prefunding Account in a manner determined by the Board.
(5) Investment income earned shall be allocated among participating employers and posted to Employer’s Prefunding Account daily Monday through Friday, except on holidays, when the allocation will be posted the following business day. (6) If, at the Board’s sole discretion and in compliance with accounting and legal requirements applicable to an Investment Trust Fund and to a Code Section 115 compliant trust, the Board determines to its satisfaction that all obligations to pay defined benefit pension plan benefits in accordance with the applicable Employer Pension Plan terms have been satisfied by payment or by defeasance with no remaining risk regarding the amounts to be paid or the value of assets held in the

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CEPPT, then the residual Employer assets held in Employer’s Prefunding Account may be returned to Employer.

E. Reports and Statements
(1) Employer shall submit with each contribution a contribution report in the form and containing the information prescribed by the Board.
(2) The Board, at its discretion but at least annually, shall prepare and provide a statement of Employer’s Prefunding Account reflecting the balance in Employer's Prefunding Account, contributions made during the period covered by the statement, investment income allocated during such period, and such other information as the Board may determine.

F. Disbursements
(1) Employer may receive disbursements from the CEPPT not to exceed, on an annual basis, the amount of the total annual Employer contributions to Employer’s Pension Plan for such year.
(2) Employer shall notify the Board in writing in the manner specified by the Board of the persons authorized to request disbursements from the CEPPT on behalf of Employer.
(3) Employer's request for disbursement shall be in writing signed by Employer's authorized representative, in accordance with procedures established by the Board, and the Board may rely conclusively upon such writing. The Board may, but is not required to, require that Employer certify or otherwise demonstrate that amounts disbursed from Employer’s Prefunding Account will be used solely for the purposes of the CEPPT.

However, in no event shall the Board have any responsibility regarding the application of distributions from Employer’s Prefunding Account.
(4) No disbursement shall be made from the CEPPT which exceeds the balance in Employer’s Prefunding Account.

(5) Requests for disbursements that satisfy the above requirements will be processed on at least a monthly basis.
(6) The Board shall not be liable for amounts disbursed in error if it has acted upon the written instruction of an individual authorized by Employer to request disbursements, and is under no duty to make any investigation or inquiry about the correctness of such instruction. In the event of any other erroneous disbursement, the extent of the Board’s liability shall be the actual dollar amount of the disbursement, plus interest at the actual earnings rate but not less than zero.

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G. Costs of Administration
Employer shall pay its share of the costs of administration of the CEPPT, as determined by the Board and in accordance with Paragraph D.

H. Termination of Employer’s Participation in the CEPPT (1) The Board may terminate Employer’s participation in the CEPPT if:
(a) Employer’s governing body gives written notice to the Board of its election to terminate; or
(b) The Board determines, in its sole discretion, that Employer has failed to satisfy the terms and conditions of applicable law, this Agreement or the Board's rules, regulations or procedures.
(2) If Employer’s participation in the CEPPT terminates for either of the foregoing reasons, all assets in Employer’s Prefunding Account shall remain in the CEPPT, except as otherwise provided below, and shall continue to be invested and accrue income as provided in Paragraph D, and Employer shall remain subject to the terms of this Agreement with respect to such assets.
(3) After Employer’s participation in the CEPPT terminates, Employer may not make further contributions to the CEPPT.
(4) After Employer’s participation in the CEPPT terminates, disbursements from Employer’s Prefunding Account may continue upon Employer’s instruction or otherwise in accordance with the terms of this Agreement.
(5) After Employer’s participation in the CEPPT terminates, the governing body of Employer may request either:
(a) A trustee to trustee transfer of the assets in Employer’s Prefunding Account to a trust dedicated to prefunding Employer’s required pension contributions; provided that the Board shall have no obligation to make such transfer unless the Board determines that the transfer will satisfy applicable requirements of the Code, other law and accounting standards, and the Board’s fiduciary duties. If the Board determines that the transfer will satisfy these requirements, the Board shall then have one hundred fifty (150) days from the date of such determination to effect the transfer. The amount to be transferred shall be the amount in Employer's Prefunding Account as of the date of the transfer (the “transfer date”) and shall include investment earnings up to an investment earnings allocation date preceding the transfer date. In no event shall the investment earnings allocation date precede the transfer date by more than 150 days.

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(b) A disbursement of the assets in Employer’s Prefunding Account; provided that the Board shall have no obligation to make such disbursement unless the Board determines that, in compliance with the Code, other law and accounting standards, and the Board’s fiduciary duties, all of Employer's obligations for payment of defined benefit pension plan benefits and reasonable administrative costs of the Board have been satisfied. If the Board determines that the disbursement will satisfy these requirements, the Board shall then have one hundred fifty (150) days from the date of such determination to effect the disbursement. The amount to be disbursed shall be the amount in Employer’s Prefunding Account as of the date of the disbursement (the “disbursement date”) and shall include investment earnings up to an investment earnings allocation date preceding the disbursement date. In no event shall the investment earnings allocation date precede the disbursement date by more than 150 days.
(6) After Employer’s participation in the CEPPT terminates and at such time that no assets remain in Employer’s Prefunding Account, this Agreement shall terminate. To the extent that assets remain in Employer’s Prefunding Account, this Agreement shall remain in full force and effect.
(7) If, for any reason, the Board terminates the CEPPT, the assets in Employer’s Prefunding Account shall be paid to Employer to the extent permitted by law and Code Section 115 after retention of (i) an amount sufficient to pay the Unfunded PVFB as set forth in a current defined benefit pension plan(s) cost report prepared in compliance with ASOP and the requirements of Paragraph C(1), and (ii) amounts sufficient to pay reasonable administrative costs of the Board. Amounts retained by the Board to pay the Unfunded PVFB shall be transferred to (i) another Code Section 115 trust dedicated to prefunding Employer’s required pension contributions, subject to the Board’s determination that such transfer will satisfy applicable requirements of the Code, other law and accounting standards, and the Board’s fiduciary duties or (ii) Employer’s Pension Plan, subject to acceptance by Employer’s Pension Plan. (8) If Employer ceases to exist but Employer’s Prefunding Account continues to exist, and if no provision has been made to the Board’s satisfaction by Employer with respect to Employer’s Prefunding Account, the Board shall be permitted to identify and appoint a successor to Employer under this Agreement, provided that the Board first determines, in its sole discretion, that there is a reasonable basis upon which to identify and appoint such a successor and provided further that such successor agrees in writing to be bound by the terms of this Agreement. If the Board is unable to identify or appoint a successor as provided in the preceding sentence, then the Board is authorized to appoint a third-party administrator or other successor to act on behalf of Employer under this Agreement and to otherwise carry out the intent of this Agreement with respect to Employer’s Prefunding Account. Any and all costs associated with such appointment shall be paid from the assets attributable to Employer’s Prefunding Account. At the Board’s option, and subject to acceptance by Employer’s Pension Plan,

the Board may instead transfer the assets in Employer’s Prefunding Account to Employer’s Pension Plan and terminate this Agreement.
(9) If the Board determines, in its sole discretion, that Employer has breached the representation and warranty set forth in Paragraph A., the Board shall take whatever action it deems necessary to preserve the tax-exempt status of the CEPPT.

I. Indemnification
Employer shall indemnify, defend, and hold harmless CalPERS, the Board, the CEPPT, and all of the officers, trustees, agents and employees of the foregoing from and against any loss, liability, claims, causes of action, suits, or expense (including reasonable attorneys’ fees and defense costs, lien fees, judgments, fines, penalties, expert witness fees, appeals, and claims for damages of any nature whatsoever) not charged to the CEPPT and imposed as a result of, arising out of, related to or in connection with (1) the performance of the Board’s duties or responsibilities under this Agreement, except to the extent that such loss, liability, suit or expense results or arises from the Board's own gross negligence, willful misconduct or material breach of this Agreement, or (2) without limiting the scope of Paragraph F(6) of this Agreement, any acts taken or transactions effected in accordance with written directions from Employer or any of its authorized representatives or any failure of the Board to act in the absence of such written directions to the extent the Board is authorized to act only at the direction of Employer.

J. General Provisions
(1) Books and Records
Employer shall keep accurate books and records connected with the performance of this Agreement. Such books and records shall be kept in a secure location at Employer's office(s) and shall be available for inspection and copying by the Board and its representatives.
(2) Notice

(a) Any notice or other written communication pursuant to this Agreement will be deemed effective immediately upon personal delivery, or if mailed, three (3) days after the date of mailing, or if delivered by express mail or e-mail, immediately upon the date of confirmed delivery, to the following:

For the Board:

Filing by mail, send to:

CalPERS
CEPPT
P.O. Box 1494
Sacramento, CA 95812-1494
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Filing in person, deliver to:

CalPERS Mailroom
CEPPT
400 Q Street
Sacramento, CA 95811
For Employer:

(b) Either party to this Agreement may, from time to time by notice in writing served upon the other, designate a different mailing address to which, or a different person to whom, all such notices thereafter are to be addressed. (3) Survival
All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to be a part of this Agreement shall survive the termination of this Agreement. (4) Waiver
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
(5) Necessary Acts; Further Assurances
The parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement.
(6) Incorporation of Amendments to Applicable Laws and Accounting Standards Any references to sections of federal or state statutes or regulations or accounting standards shall be deemed to include a reference to any amendments thereof and any successor provisions thereto.

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(7) Days
Wherever in this Agreement a set number of days is stated or allowed for a particular event to occur, the days are understood to include all calendar days, including weekends and holidays, unless otherwise stated.
(8) No Third Party Beneficiaries
Except as expressly provided herein, this Agreement is for the sole benefit of the parties hereto and their permitted successors and assignees, and nothing herein, expressed or implied, will give or be construed to give any other person any legal or equitable rights hereunder. Notwithstanding the foregoing, CalPERS, the CEPPT, and all of the officers, trustees, agents and employees of CalPERS, the CEPPT and the Board shall be considered third party beneficiaries of this Agreement with respect to Paragraph I above.
(9) Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

A majority vote of Employer’s Governing Body at a public meeting held on the ______ day of the month of __________________ in the year _________, authorized entering into this Agreement.

Signature of the Presiding Officer: ________________________________________ Printed Name of the Presiding Officer: _____________________________________ Name of Governing Body: ______________________________________________ Name of Employer: ___________________________________________________ Date: _______________________________
20th September 2022 Erica A. Stewart City Council of San Luis Obispo City of San Luis Obispo

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BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
BY_____________________________________

MELODY BENAVIDES

DIVISION CHIEF, PENSION CONTRACTS AND PREFUNDING PROGRAMS CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
To be completed by CalPERS
The effective date of this Agreement is: _________________________

R ______
RESOLUTION NO. _____ (2022 SERIES)

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

OBISPO, CALIFORNIA, DELEGATING THE AUTHORITY TO REQUEST DISBURSEMENTS FROM THE CALIFORNIA EMPLOYERS’ PENSION

PREFUNDING TRUST (CEPPT)
WHEREAS, on September 20, 2022, the City Council approved the formation of a Section 115 Trust fund for pension obligations with the California Employers’ Pension Prefunding Trust (CEPPT); and
WHEREAS, the funding deposited can only be used to pay for pension obligations and will be used strategically to pay off the City’s pension cost and unfunded liability; and WHEREAS, in order to request disbursement of the funds in the Trust and certify the purpose for which the disbursed funds will be used, the City Council has to delegate authority to certain staff via a Council Resolution.

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

Resolution No. _____ (2022 Series) Page 2
R ______
SECTION 1. Authority to request, on behalf of the City of San Luis Obispo (employer), disbursement from the Pension Prefunding Trust and to certify as to the purpose for which the disbursed funds will be used, is delegated to the incumbents in the position of:
– City Manager
– Director of Finance
– Accounting Manager/Controller
Upon motion of _______________________, seconded by
_______________________, 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

Item 6a
Department: Community Development
Cost Center: 4003
For Agenda of: 9/20/2022
Placement: Public Hearing
Estimated Time: 75 minutes
FROM: Michael Codron, Community Development Director
Prepared By: Hannah Hanh, Associate Planner
SUBJECT: REVIEW OF AN APPEAL OF THE PLANNING COMMISSION’S

DECISION TO APPROVE A MINOR USE PERMIT TO ESTABLISH A
MULTI-VENDOR FACILITY, “THE HUB”, AT 1701 MONTEREY STREET (USE-0103-2022, APPL-0262-2022)

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, denying an appeal and upholding the Planning Commission’s decision to approve a Minor Use Permit to establish a multi-vendor facility that includes a bar/tavern, restaurant, commercial recreation, general retail, indoor live entertainment, and food trucks. The project includes a parking reduction request and is categorically exempt from environmental review.”

REPORT-IN-BRIEF
Monterey Street Brewing, LLC applied for a Minor Use Permit (USE-0103-2022) to establish a multi-vendor facility that includes a bar/tavern, restaurant, commercial recreation, general retail, indoor live entertainment, and food trucks at 1701 Monterey Street. The project also includes a parking reduction request to replace six (6) required parking spaces with 30 bicycle spaces.

The project is a collaboration between eight (8) local businesses to establish “The Hub,” where patrons living in or visiting the City can enjoy an integrated eating, drinking, and recreational experience. Proposed uses include a variety of all-day food service options, alcohol tastings, recreational activities on a rotational basis, and occasional indoor live entertainment. The project would operate within an existing development that was previously utilized for indoor and outdoor home furnishings (formerly occupied by Daylight Home & Gardens).

On May 11, 2022, the Planning Commission reviewed the request for a Minor Use Permit by Monterey Street Brewing, LLC. After considering all evidence, including the application, staff’s evaluation and recommendation, and public testimony, the Planning Commission conditionally approved the project, subject to modified findings and conditions of approval (Planning Commission Resolution No. PC-1058-2022).

Item 6a
On May 19, 2022, Hana Novak filed a timely appeal (APPL-0262-2022) of the Planning Commission’s approval (Attachment B). The appellant identified four (4) appeal issues, including the project’s consistency with Ordinance No. 1651 (2018 Series) and potential impacts related to lighting, noise, and traffic on the adjacent residences and creek, which are discussed in this report.

DISCUSSION
Project Description
Monterey Street Brewing, LLC (Applicant) applied for a Minor Use Permit to establish a multi-vendor facility that includes a bar/tavern, restaurant, commercial recreation, general retail, indoor live entertainment, and food trucks at 1701 Monterey Street (Attachment C).

The project also includes a parking reduction request to replace six (6) required parking spaces with 30 bicycle spaces.

The project is a collaboration between eight (8) local businesses, including Central Coast Brewing, KROBAR Craft Distillery, Nautical Bean Coffee, Art’s Cyclery, What the Truck Mobile Cuisine, Lone Oak Seltzer, SLO Axe, and Whalebird Kombucha. These businesses are proposing to collaborate and establish “The Hub,” where patrons living in or visiting the City can enjoy an integrated eating, drinking, and recreational experience.

The project was designed to offer a variety of all-day food service options, alcohol tastings, recreational activities on a rotational basis, and occasional indoor live entertainment. Proposed uses would operate within the following days and times:

1. Bar/tavern (i.e., brewery, distillery, and winery): 8:00 a.m. – 11:00 p.m. daily

2. Restaurant: 6:00 a.m. – 11:00 p.m. daily

3. General retail (i.e., art galleries, baked goods, bicycle sales and rentals): 8:00 a.m. – 9:00 p.m. daily

4. Commercial recreation (e.g., axe throwing, board games, chess/checkers, cornhole, ping pong, pickleball, ring toss, etc.): 11:00 a.m. – 10:00 p.m. daily

5. Indoor live entertainment: 1:00 p.m. – 8:00 p.m. on Thursdays through Sundays

6. Food trucks: 11:00 a.m. – 10:00 p.m. daily
The project would use approximately 1.41 acres, which include an existing building, fenced outdoor areas, and parking, on a 3.56-acre site. The project does not include construction of a new building or additional building square footage. Proposed operations would utilize an existing 12,180 square foot building and approximately 12,306 square feet of cumulative fenced outdoor areas (formerly occupied by Daylight Home & Gardens). Other uses on the site include vehicle repair services (The Dent Shop) and restaurant (Gino’s Pizza) in separate buildings (1741 & 1761 Monterey Street) that are not part of this project.

The project site is primarily located in the Tourist Commercial with Special Considerations Overlay Zone (C-T-S) and partially located in the Conservation Open Space Zone (C/OS) due to the San Luis Obispo Creek that runs along the rear of the property. All proposed uses and associated improvements would occur outside of the C/OS zone.

Item 6a
Policy Context
The project would advance Community Goal No. 14, Policy 8.2.2, and Program 3.15, outlined in the Land Use Element of the General Plan, by retaining and/or accommodating the expansion of existing food service and recreational businesses to an area designated for Tourist Commercial uses and revitalizing development in the Upper Monterey Area.

Additionally, Economic Recovery was prioritized as a Major City Goal in the 2021-23 Financial Plan and 2021-23 Adopted Financial Plan Supplement, and resulting implementation strategies that include initiatives for local business support were identified to support members of the community and local economy. As proposed, the project would be consistent with this Major City Goal by facilitating new locations for eight (8) local businesses, including those to be displaced by a proposed mixed-use development, and utilizing an existing major vacancy within the Tourist Commercial designation and Upper Monterey Area.

Background
On February 7, 1989, the City Council adopted Ordinance No. 1130 (1989 Series), which amended the zoning map from C-T to C-T-S for properties on the south side of Monterey Street between 1603 and 2223 and expanded the C/OS zone along San Luis Creek between Monterey Street and San Luis Drive. The Special Considerations Overlay (S) was designated over these properties due to land use compatibility concerns for the surrounding area, particularly between commercial and residential land uses adjacent to San Luis Creek. As such, adoption of Ordinance No. 1130 also established Design Criteria for any new development or use or expansion of any existing development or use within the C-T-S zone to ensure compatibility with neighboring residences and San Luis Creek.

On August 21, 2018, the City Council considered an amendment to the preceding ordinance and adopted Ordinance No. 1651 (2018 Series), which modified the Design Criteria and superseded Ordinance No. 1130. Proposed uses for the project would typically be allowed or conditionally allowed in the C-T zone per Table 2-1 (Uses Allowed by Zone) of the Zoning Regulations, as follows:

Allowed: restaurant and commercial recreation (e.g., axe throwing, board games, chess/checkers, cornhole, ping pong, pickleball, ring toss, etc.).

Allowed with Minor Use Permit approval: bar/tavern (i.e., tasting areas and accessory onsite alcohol production), general retail (e.g., art gallery, bicycle sales, etc.), live entertainment, and food trucks.

While proposed uses are either allowed or conditionally allowed with a Minor Use Permit that is reviewed and determined by the Community Development Director, Design Criterion No. 18 in Section 3 (Land Use and Design Criteria) of Ordinance No. 1651 requires that any new proposal be subject to (1) a use permit approved by the Planning Commission and (2) findings of consistency with the Design Criteria detailed in Section

3.

Item 6a
On May 11, 2022, the Planning Commission reviewed the Applicant’s request for a Minor Use Permit to establish the project (05/11/2022 PC Staff Report). After considering all evidence, including the application, staff’s evaluation and recommendation, and public testimony1, the Planning Commission conditionally approved the project, subject to modified findings and conditions of approval on a 5-1-1 vote for consistency with the General Plan, Zoning Regulations, and Ordinance No. 1651 (PC Resolution No. PC1058-2022, Minutes).

On May 19, 2022, Hana Novak (Appellant) filed a timely appeal of the Planning Commission’s decision to approve the project, stating concerns regarding the project’s consistency with Ordinance No. 1651 and potential impacts related to noise, traffic, and lighting on the adjacent residences and creek (Attachment B).

Appeal
The Appeal Form and Statement presents four (4) issues, which are summarized and discussed below.

Appeal Issue No. 1 – Ordinance No. 1651 (Special Considerations Overlay) The appeal states that the project does not conform to the purpose, intent, and provisions of Ordinance No. 1651.

Staff Response
As described in the “Background” section, the purpose of Ordinance No. 1651 is to establish a Special Considerations Overlay that is intended to address land use compatibility concerns between commercial and residential land uses adjacent to San Luis Creek. As part of its adoption, the Design Criteria, which includes provisions to address potential impacts related to (1) lighting and glare, (2) privacy, (3) noise, and (4) traffic, was established to ensure compatibility with neighboring residences and San Luis Creek. The Planning Commission evaluated the project on May 11, 2022, and found it to be consistent with the purpose, intent, and provisions of Ordinance No. 1651 as conditioned. The project utilizes an existing development and relevant design criteria was applied as part of the project evaluation.

To address potential impacts related to privacy, the project would utilize an existing building and screened outdoor areas located a minimum of 180 feet away from the top of bank and approximately 250 feet away from the nearest residential property line. The project does not include construction of a new building or additional square footage that further approaches the rear property line or results in increased building height towards the adjacent creek and residences.

1 Agenda correspondence for the May 11, 2022 Planning Commission Hearing.

Item 6a
Additionally, Condition No. 28 requires installation of a barrier at the rear of the site to block visibility of the parking area from the residential neighbors to the south for consistency with Design Criterion No. 32. As a result, the project would be consistent with Design Criterion No. 63for privacy by addressing potential impacts through its design and implementation of Condition No. 28.

Discussion regarding design and impacts related to lighting and glare, noise, and traffic are detailed in Staff Responses to Appeal Issues No. 2 – 4 below.

Appeal Issue No. 2 – Noise
The appeal states that the project does not adequately address potential impacts related to noise on the adjacent residences and San Luis Creek.

Staff Response
For consistency with Design Criterion No. 74, the project would operate within an existing building or enclosed outdoor areas that are located on the interior of the site and buffered by buildings (1701 and/or 1741 Monterey Street) and accessory structures onsite.

Proposed uses would occur a minimum of 180 feet away from the top of bank and approximately 250 feet away from the nearest residential property line. Areas for commercial recreational use (i.e., social gatherings) would not be adjacent to, or abut, the creek. Therefore, the proposed indoor recreational area would not be located creekside, consistent with Design Criterion No. 155,6.

Indoor uses include the proposed bar/tavern, restaurant, recreational activities, and live entertainment. The bar/tavern, restaurant, and recreational activities would operate at a noise level consistent with the City’s definition of ambient entertainment and in compliance with Chapter 9.12 (Noise Control) of the Municipal Code. To address potential noise impacts, live entertainment is conditioned to only be permitted indoors on limited days and hours with all doors and windows closed (Conditions No. 12-15).

2 Screening shall be provided between the buildings and the creek which may include fencing, decorative walls, and landscaped berms, said screening shall at a minimum include restoration and enhancement of the creekside vegetation, and shall also be designed and built so as to block view corridors of the building visible from residential neighbors.
3 All new uses must be found by the Planning Commission to be compatible with the riparian habitat and adjacent residential uses, considering such variables as light and glare, privacy, noise, and traffic. In all cases, uses shall be adequately buffered from the creek and adjacent residences in a manner which mitigates potential offsite impacts.
4 Noise generating uses such as parking and active outdoor recreation uses, such as swimming pools, outdoor bars, and gathering areas shall be located on the interior of the site, using buildings as a buffer. 5 Any structure that functions primarily as a conference or convention center shall not be allowed. Meeting and conference rooms ancillary to other approved uses are allowed. Rooms whose primary use is for social gatherings (ballrooms, etc.) shall not be located creekside. 6 During deliberation at the Planning Commission hearing, Commissioner Wulkan indicated that the project may be inconsistent with Design Criterion No. 15 because a building wall adjacent to the indoor recreational area would be creek-facing and suggested a potential floor plan revision for the purpose of relocating the indoor recreational area. After further discussion, the Planning Commission found the indoor recreational area consistent with Design Criterion No. 15 and approved the floor plan as proposed.

Item 6a
Additionally, all doors and windows are conditioned to remain closed between the hours of 10:00 p.m. and 7:00 a.m. (Condition No. 10).

Outdoor uses include proposed food, retail, and recreational activities (Attachment D).

These uses are proposed within six (6) different areas, noted as Zones A through F (Attachment C – Project Plans, Sheet 6). Figure 1 provides an illustration of existing and proposed fencing that would enclose these outdoor areas.

Figure 1 – Sheet 6 of Project Plans
Zone A would be buffered by the project building and enclosed by new six-foot-high solid fencing (Condition No. 23). Zones B & C, located along Monterey Street, would be buffered by the project building and enclosed by an existing eight-foot-high glass wind screen and wrought iron fencing. Zones D & E would be buffered by an adjacent building (1741 Monterey Street) and enclosed by an existing eight-foot-high steel fencing. Zone F would only be utilized for food truck operation and does not include a seating area. As proposed, the outdoor activities are oriented towards Monterey Street or take place within an enclosed building or fenced areas located a minimum of 180 feet away from the creek (as identified by the C/OS zone). These outdoor uses do not include any amplified sounds or recordings (Condition No. 15), would cease by 10:00 p.m. nightly (Condition No. 11), and are subject to Section 9.12.060 (Exterior Noise Limits) of the Municipal Code.

Item 6a
Therefore, the project would be consistent with Design Criterion No. 67for noise by addressing potential impacts through its design, compliance with Chapter 9.12 (Noise Control), and implementation of Conditions No. 10-15 & 23.

Appeal Issue No. 3 – Traffic
The appeal states that the project does not adequately address potential impacts related to traffic on the adjacent residences.

Staff Response
As part of the entitlement review process, the Transportation Division reviewed and determined that the project would not generate a substantial increase in auto trips in comparison to the former retail use. Per the City’s Transportation Impact Study Guidelines, a Transportation Impact Study is required when a project is anticipated to generate 100 or more peak hour auto trips. Using trip generation data published by the Institute of Transportation Engineers (ITE), which is based on data averages collected from similar sites throughout the country, the project is anticipated to generate approximately 30 net new peak hour trips, including credits for previous uses at the site that were active within two (2) years of the project application. Since the 30 additional peak hour trips do not exceed the 100 peak hour trip threshold, the project would not result in significant traffic-related impacts and would be consistent with Design Criterion No. 6 for traffic.

Appeal Issue No. 4 – Lighting
The appeal states that the project does not adequately address potential impacts related to lighting on the adjacent residences and San Luis Creek.

Staff Response
For consistency with Design Criteria No. 48 and 6, Section 17.70.100 (Lighting and Night Sky Preservation) requires outdoor lighting fixtures be shielded and directed downward and away from adjacent properties and public rights-of-way to minimize light spillover and operated with the minimum intensity necessary for safety and security. As part of the building permit review, any proposed lighting improvements will be evaluated and verified for compliance with this preceding code section.

7 All new uses must be found by the Planning Commission to be compatible with the riparian habitat and adjacent residential uses, considering such variables as light and glare, privacy, noise, and traffic. In all cases, uses shall be adequately buffered from the creek and adjacent residences in a manner which mitigates potential offsite impacts.
8 Lighting between the buildings and the creek shall be limited in intensity and scale to the minimum necessary for security and identification and shall be designed so as not to shine offsite.

Item 6a
In addition, the project does not include the creation of new, or enlargement of existing, building entrances or openings that would result in additional light that shines towards the creek, consistent with the intent of Design Criterion No. 29. Lastly, Condition No. 28 requires installation of a barrier at the rear of the site to block visibility of the parking area from the residential neighbors across the creek to the south for consistency with Design Criterion No. 310. As such, potential impacts from lighting fixtures and vehicle headlights on the adjacent residences and creek would be addressed through compliance with Section 17.70.100 (Lighting and Night Sky Preservation) and implementation of Condition No. 28.

Additional Correspondence
On August 22, 2022, the Appellant submitted additional correspondence for the project.

The correspondence details the Appellant’s concerns regarding potential noise impacts on the adjacent residential neighborhood and provides a supplementary letter prepared by 45 Acoustics, LLC that includes three (3) recommendations for the project. These project recommendations are summarized and discussed below:

Recommendation No. 1
Construct solid noise barriers, such as stucco, CMU, or other masonry, around two (2) outdoor areas as shown in Figure 1 (Suggested Noise Barrier Wall Section Locations) of the letter by 45 Acoustics, LLC.

Staff Response
As discussed in the “Staff Response to Appeal Issue No. 2 (Noise)” section, the project has been designed and conditioned for compliance with Section 9.12.060 (Exterior Noise Limits) of the Municipal Code. The project would incorporate preferred mitigation techniques, detailed below, from the City’s Noise Guidebook to address potential noise impacts from the outdoor recreation areas and eliminate the need to construct noise barriers such as the recommended solid walls:
a. Distance – Noise would be reduced by increasing the distance between the source and the receiver. As proposed, the outdoor recreational areas would occur a minimum of 180 feet away from the top of bank and approximately 250 feet away from the nearest residential property line.
b. Location and Orientation – The placement of outdoor activity areas within portions of a site that are shielded by buildings would reduce noise impacts. As proposed, the outdoor recreational areas are located on the interior of the site and buffered by existing buildings (1701 and/or 1741 Monterey Street) and accessory structures onsite.

9 The number and size of building openings facing the creek shall be minimized. Windows shall be no larger than the minimum required by public safety. Glazing shall not reflect sunlight toward the creek nor allow internal lighting to shine toward the creek. Balconies and/ or attendant doors are prohibited. 10 Screening shall be provided between the buildings and the creek which may include fencing, decorative walls, and landscaped berms, said screening shall at a minimum include restoration and enhancement of the creekside vegetation, and shall also be designed and built so as to block view corridors of the building visible from residential neighbors.

Item 6a
As such, potential noise impacts from the outdoor recreational areas would be addressed through (1) substantial distance between the nearest proposed outdoor recreational area and residential property line and (2) strategic placement of outdoor activities within areas that would be buffered by onsite buildings and accessory structures and eliminate the need for solid walls. If noise exceeds the permitted thresholds outlined in the City’s Noise Ordinance, the project shall be subject to code enforcement provisions detailed in Chapter 1.24 (Administrative Code Enforcement Procedures) of the Municipal Code.

Additionally, construction of solid walls in areas shown in Figure 1 may be inconsistent with Section 6.1(B) (Fences and Walls) of the Community Design Guidelines because long, monotonous walls should be avoided and the design and placement of walls should instead relate well to the building and site topography.

Recommendation No. 2
Prohibit amplified music in outdoor areas.

Staff Response
As indicated in the Planning Commission Resolution (No. PC-1058-2022) to approve the project, Condition No. 10 states that amplified sound is not permitted outdoors. In addition, Conditions No. 11-15 require outdoor activities cease by 10:00 p.m. nightly for consistency with Chapter 9.12 (Noise Control) and live or amplified entertainment be permitted in only the indoor recreation area on limited days and hours with all doors and windows closed. Therefore, this recommendation has been addressed through implementation of Conditions No. 10-15.

Recommendation No. 3
Limit truck deliveries to and from the site to between the hours of 7:00 a.m. and 10:00 p.m. for the project.

Staff Response
Based on follow-up communication with staff, the Applicant is amenable to limiting truck deliveries for the project to between the hours of 7:00 a.m. and 10:00 p.m. Therefore, staff is recommending incorporation of the following new condition as part of the project approval:

Condition No. 29: Truck deliveries to and from the site shall only occur between the hours of 7:00 a.m. and 10:00 p.m. for the project.

This recommendation would be addressed through incorporation of new Condition No.

29. Subsequent conditions from the other departments and divisions have been renumbered accordingly.

Item 6a
Public Engagement
The project has been noticed in compliance with the City’s notification requirements for Development Projects for each public hearing associated with the project. Newspaper legal advertisements were posted in the New Times ten (10) days prior to the hearing.

Additionally, postcards were sent to both owners and occupants of properties within 300 feet of the project site ten (10) days before the hearing.

CONCURRENCE
The project has been reviewed by the Building Division, Fire Department, Engineering Division, Transportation Division, and Utilities Department. Any conditions of approval from these departments and divisions have been included in the City Council Resolution related to the project approval.

ENVIRONMENTAL REVIEW
The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) described in Sections 15301 (Existing Facilities) and 15332 (In-Fill Development) of the CEQA Guidelines. The project is exempt under Section 15301 because it operates within an existing development with negligible expansion of the former retail use due to code requirements and conditions that address potential impacts related to traffic, noise, lighting, etc. to less than a significant level.

The project is also exempt under Section 15332 because it is consistent with applicable General Plan policies and Zoning Regulations, is located on a site that is less than five acres in size (3.63 acres) surrounded by other urban uses (existing hotels/motels, restaurant, service station, and vehicle repair services), and is not a habitat for endangered, rare, or threatened species because it is a developed urban site. Approval of the project will not result in any significant effects relating to (1) traffic because the Traffic Division reviewed the project and determined that the proposed uses would not generate a number of trips that substantially exceeds trips associated with the former retail use (approximately 30 additional peak PM trips); (2) noise because proposed uses will occur within the project building and enclosed outdoor areas, which are buffered by existing buildings and accessory structures onsite. Proposed uses will occur a minimum of 180 feet away from the top of bank and approximately 250 feet away from the nearest residential property line to the south. The project shall comply with the noise thresholds outlined in the noise ordinance for the C-T zone, which are 60 dBA from 10 p.m. – 7:00 a.m. and 65 dBA from 7:00 a.m. – 10:00 p.m. To ensure ongoing compliance, Conditions No. 10–15 include limitations on indoor live entertainment and outdoor activities; (3) air quality because construction-related emissions associated with the project are temporary and limited to minor improvements to the project building and parking area. In addition, operation of the uses would not generate emissions that exceed thresholds outlined in the Climate Action Plan; or (4) water quality because the project is not proposing access to the creek. In addition, Condition No. 9 requires that any liquid discharge from the food trucks shall be contained and properly disposed of by the applicant. Lastly, the site is served by all required utilities and public services.

Item 6a

FISCAL IMPACT
Budgeted: No Budget Year: 2023
Funding Identified: No
Fiscal Analysis
Funding
Sources
Total Budget
Available
Current
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Request
Remaining
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Cost
General Fund $N/A $ $ $
State
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Total $ $ $ $
Consideration by the City Council of an appeal of a decision made by the Planning Commission does not directly result in expenditure of funds and thus has no fiscal impact to the City. Staff resources committed to the review of appeals are included in the annual budget appropriation for the Community Development Department.

ALTERNATIVES

1. Continue consideration of the application to a future date. The Council may continue its review of the project to a date certain hearing if additional time or information is needed to make a decision. If additional information is needed, direction should be provided to staff so that it can be presented at that subsequent hearing. The Council may direct staff and the applicant to make specific changes to the project.

2. Deny the project. The Council may uphold the appeal and adopt a resolution denying the project, based on findings of inconsistency with the California State Law, the City’s General Plan, Zoning Regulations, Ordinance 1651, or other policy documents.

Should Council elect to pursue this alternative, the recommendation is to direct Staff to prepare a resolution based on findings. Staff would need specific direction on the nature of findings to support the denial.

ATTACHMENTS
A - Draft Resolution denying the Appeal and upholding the Planning Commission’s decision to approve the Minor Use Permit (APPL-0262-2022) B - Appeal Form and Statement (APPL-0262-2022)
C - Project Plans (USE-0103-2022)
D - Operational Overview (USE-0103-2022)

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RESOLUTION NO. ______ (2022 SERIES)

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

OBISPO, CALIFORNIA, DENYING AN APPEAL AND UPHOLDING THE PLANNING COMMISSION’S DECISION TO APPROVE A MINOR USE

PERMIT TO ESTABLISH A MULTI-VENDOR FACILITY THAT INCLUDES

A BAR/TAVERN, RESTAURANT, COMMERCIAL RECREATION,

GENERAL RETAIL, INDOOR LIVE ENTERTAINMENT, AND FOOD
TRUCKS. THE PROJECT INCLUDES A PARKING REDUCTION

REQUEST AND IS CATEGORICALLY EXEMPT FROM
ENVIRONMENTAL REVIEW; AS REPRESENTED IN THE CITY

COUNCIL AGENDA REPORT AND ATTACHMENTS DATED
SEPTEMBER 6, 2022 (1701 MONTEREY STREET, APPL-0262-2022) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on May 11, 2022, pursuant to a proceeding instituted under Minor Use Permit, USE-0103-2022, Monterey Street Brewing Company, LLC, applicant; and WHEREAS, the Planning Commission of the City of San Luis Obispo conditionally approved the Minor Use Permit, USE-0103-2022, after duly considering all evidence, including the testimony of the applicant, interested parties, and evaluation and recommendations by staff, presented at said hearing; and WHEREAS, Hana Novak filed an appeal of the Planning Commission’s decision to approve the Minor Use Permit, APPL-0262-2022, on May 19, 2022; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing on September 20, 2022 for the purpose of considering the appeal of the Planning Commission’s decision to approve the Minor Use Permit, APPL-0262-2022, and has duly considered all evidence, including the record of the Planning Commission hearing, staff’s evaluation and recommendation, and public testimony presented at said hearing; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows:

SECTION 1. Findings. The City Council hereby grants final approval to the project, based on the following findings:

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Minor Use Permit Findings

1. As conditioned, the proposed uses are consistent with the General Plan because the project would serve both short- and long-term visitors as intended by Policies

3.6.1 and 3.62 for the Tourist Commercial land use designation. The proposed multi-vendor facility includes complementary uses that provide amenities compatible with, and would not result in adverse impacts to, surrounding uses, which include hotels/motels, restaurants, vehicle repair services, residences, and the San Luis Obispo Creek.

2. The proposed uses are typically permitted or conditionally permitted within the Tourist Commercial zone and will comply with applicable provisions of these Zoning Regulations and the Municipal Code as conditioned.

3. The design, location, size, and operating characteristics of the proposed uses will be compatible with the existing and future land uses in the vicinity because the project operates in a building and within outdoor areas enclosed by solid fencing and/or buffered by existing buildings, provides complementary uses that serve patrons of nearby hotels/motels on upper Monterey Street, has adequate onsite parking, and complies with the Noise Ordinance.

4. The site is physically suitable in terms of (a) its design, location, size, and operating characteristics of the project, (b) traffic generation and the provision of public and emergency vehicle (e.g., fire and medical access), (c) public protection services, and (d) the provision of utilities (e.g., potable water, schools, solid waste collection and disposal, storm drainage, wastewater collection, treatment, and disposal, etc.). The project is located on and surrounded by other developed properties, has access to the City’s circulation system, and will be served by City utilities. The project does not include activities that generate service or utility demands beyond those anticipated with uses permitted in the vicinity.

5. The establishment and subsequent operation or conduct of the use will not, because of circumstances and conditions applied in the particular case, be detrimental to the health, safety, or welfare of the general public or persons residing or working in the neighborhood of the use, or be detrimental or injurious to property or improvements in the vicinity of the use because the project is required to submit a building permit for the change in occupancy of the building and operate in compliance with the Noise Ordinance.

Alcohol Outlets Findings

6. As conditioned, the Bar/Tavern use shall be consistent with the Zoning Regulations and 2012 Alcohol Outlet Regulations to reduce public safety problems associated with alcoholic beverage sales and provide for properly maintained alcohol outlets so that negative impacts generated by these activities are not harmful to the surrounding environment. The use shall operate in compliance with standards identified in Section 17.86.050(B) (Alcohol Outlet Operational Requirements) of the Zoning Regulations.

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7. As conditioned, the Bar/Tavern use will not result in adverse effects to the health, peace, or safety of persons residing or working in the surrounding area or jeopardize or endanger the public health or safety of persons residing or working in the surrounding area because the project is required to minimize noise and safety impacts as well as impacts to police resources and the community. The Use Permit may be modified, or revoked, in response to substantiated evidence of violation of the terms of this permit or other applicable City regulations or standards.

8. The Bar/Tavern use will not result in violations to any applicable provision of any other City, State, or Federal regulation, ordinance, or statute. Section 17.86.050(B) (Alcohol Outlet Operational Requirements) of the Zoning Regulations requires that the businesses be conducted in a manner that will not violate any provisions of the California Alcoholic Beverage Control Act.

9. The use is compatible with and will not adversely affect the livability or appropriate development of abutting properties and the surrounding neighborhood because conditions of approval for the Use Permit limit hours of operation and require business operations to minimize potential noise impacts.

Special Considerations Overlay Findings

10.The project complies with Ordinance 1651 and conforms with the purpose, intent, and provisions of the S Overlay because it has been designed or conditioned to address potential impacts related to lighting and glare, privacy, noise, and traffic on the adjacent residences and San Luis Obispo Creek. The project will comply with Section 17.70.100 (Lighting and Night Sky Preservation) and utilize light fixtures that minimize spillover, operate in an existing building and screened outdoor areas, is conditioned to comply with Noise Ordinance, and has adequate parking onsite to accommodate the use.

11.As conditioned, the project will operate in compliance with maximum interior and exterior noise limits as indicated in Chapter 9.12 (Noise Control) of the Municipal Code and minimize potential impacts related to noise exposure on the adjacent residences and San Luis Obispo Creek. Conditions of approval for the Use Permit limit operations for live entertainment to indoors only on specific days with limited hours. Additionally, outdoor food, retail, and recreational activities operate at a noise level consistent with the City’s definition of ambient entertainment, are located a minimum of 180 feet away, and will be enclosed by solid fencing and/or buffered by existing buildings.

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SECTION 2. Environmental Review. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) described in Sections 15301 (Existing Facilities) and 15332 (In-Fill Development) of the CEQA Guidelines. The project is exempt under Section 15301 because it operates within an existing development with negligible expansion of the former retail use due to code requirements and conditions that address potential impacts related to traffic, noise, lighting, etc. to less than a significant level. The project is also exempt under Section 15332 because it is consistent with applicable General Plan policies and Zoning Regulations, is located on a site that is less than five acres in size (3.63 acres) surrounded by other urban uses (existing hotels/motels, restaurant, service station, and vehicle repair services), and is not a habitat for endangered, rare, or threatened species because it is a developed urban site. Approval of the project will not result in any significant effects relating to (1) traffic because the Traffic Division reviewed the project and determined that the proposed uses would not generate a number of trips that substantially exceeds trips associated with the former retail use (approximately 30 additional peak PM trips); (2) noise because proposed uses will occur within the project building and enclosed outdoor areas, which are buffered by existing buildings and accessory structures onsite. Proposed uses will occur a minimum of 180 feet away from the top of bank and approximately 250 feet away from the nearest residential property line to the south. The project shall comply with the noise thresholds outlined in the noise ordinance for the C-T zone, which are 60 dBA from 10 p.m. – 7:00 a.m. and 65 dBA from 7:00 a.m. – 10:00 p.m. To ensure ongoing compliance, Conditions No. 10–15 include limitations on indoor live entertainment and outdoor activities; (3) air quality because construction-related emissions associated with the project are temporary and limited to minor improvements to the project building and parking area. In addition, operation of the uses would not generate emissions that exceed thresholds outlined in the Climate Action Plan; or (4) water quality because the project is not proposing access to the creek. In addition, Condition No. 9 requires that any liquid discharge from the food trucks shall be contained and properly disposed of by the applicant. Lastly, the site is served by all required utilities and public services.

SECTION 3. Action. The project conditions of approval do not include mandatory code requirements. Code compliance will be verified during the plan check process, which may include additional requirements applicable to the project. The City Council hereby grants final approval to the project with incorporation of the following conditions:

Planning Division – Community Development Department

1. Plans submitted for a building permit shall be in substantial conformance with the submitted project description and plans and incorporate the following conditions of approval. A separate, full-sized sheet shall be included in the working drawings submitted for a building permit that lists all conditions of approval. Reference shall be made in the margin of listed items as to where the requirements are addressed in the plans.

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2. The Use Permit shall be reviewed by the Community Development Director for compliance with conditions of approval, or to determine whether a modification to the Use Permit, is necessary upon significant change to the project as represented in the Staff Report dated September 20, 2022, or in the event of a change in ownership which may result in deviation from the project description or approved plans.

3. This Use Permit shall be reviewed by the Planning Commission if the City receives substantiated written complaints from any citizen, Code Enforcement Officer, or Police Department employee, which contains information and/or evidence supporting a conclusion that a violation of this Use Permit, or of City Ordinances, regulations, or Police Department resources (i.e., calls for service) applicable to operation of the business has occurred. At the time of the Use Permit review, to ensure on-going compatibility with nearby uses, conditions of approval may be added, modified, or removed, or the Use Permit may be revoked.

4. To address potential complaints and minimize the need for Police Department response to minor issues, an owner, manager, or designated representative shall be on the premises at all times and be available for contact by a City representative and/or adjacent property owner or tenant. The applicant shall provide and regularly update contact information to the City’s Police, Fire, and Community Development Departments.

5. The applicant shall be responsible for on-going security and safety training to accommodate changes in personnel.

6. The bar/tavern is not required to provide full menu service when alcohol is served.

Food service shall instead be provided by the accompanying restaurant and food truck vendors. No alcohol may be served if no food service is provided.

7. The applicant is responsible at all times for verifying the legal age of patrons, for declining access to any person under the age of twenty-one (21) years old, for monitoring patrons’ on-site alcohol consumption, and for declining to serve alcohol to patrons who demonstrate signs of intoxication or impairment associated with alcohol consumption, based on training provided to all staff.

8. The applicant shall not permit its patrons to leave the licensed premises with any alcoholic beverage or to consume alcoholic beverages on any property adjacent to the licensed premises not under the control of the licensee(s).

9. The premises shall be maintained in a clean and orderly manner at all times. Liquid discharge (e.g., water, grease, oil, etc.) from the food trucks onto or into City streets, storm drains, catch basins, sewer facilities, or creek is not permitted. Any discharge shall be contained and properly disposed of by the applicant.

10. Amplified sound is not permitted outdoors. All doors and windows shall remain closed between the hours of 10:00 p.m. and 7:00 a.m.

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11. All outdoor activities, including the retail, recreational activities, and food trucks, shall cease by 10:00 p.m. nightly.

12. Live entertainment is only permitted in the indoor recreational area as shown on the floor plan represented in the submitted application materials and staff report dated May 11, 2022. Live entertainment shall only occur between the hours of 1:00 p.m. and 8:00 p.m. on Thursdays through Sundays.

13. Doors and windows shall remain closed at all times when live entertainment is occurring.

14. At all hours of operation outside the approved live entertainment hours of operation, entertainment shall maintain at an ambient level which is clearly incidental and allows for normal conversation levels, and for which no cover fee or ticket is required.

15. Live or amplified entertainment shall not be allowed in any outdoor areas.

16. Tables, chairs, and the general floor plan layout shall remain consistent with approved plans and may not be removed or modified for late night operation or special events unless approved by the Community Development Director in advance, or if approved by separate permit.

17. Prior to building permit issuance, the applicant shall provide a security plan to include a site plan/floor plan detailing the locations and duties of staff and shall include the proposed patron routes and regular maintenance/patrol of these routes, to the satisfaction of the Community Development Director, Police Chief, and Fire Chief.

The applicant shall maintain and operate a video recording system that records activity at all entrances and exits during all business hours. The video shall be of a quality suitable for later identification of customers and staff. It will be recorded in a manner that may be retrieved and provided to police immediately upon demand.

Video data shall be retained for a minimum of 72 hours or as otherwise required by law. This plan shall be reviewed and commented upon by the Police Department and Fire Department on an annual basis.

18. The maximum posted occupant load for each space shall not be exceeded at any time. This permit is strictly limited to allow only the occupant load for the premises as approved by the City of San Luis Obispo Fire Department. Occupant loads approved by the City of San Luis Obispo Fire Department shall be posted at all times.

19. The property owner shall be responsible for maintaining and updating the current parking calculation for the project upon the submittal of Planning and Building permits for tenant changes or improvements, and/or each business license, to ensure the site does not become under-parked.

20. All surface parking spaces must be available for common use and not exclusively assigned to any individual use.

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21. Plans submitted for a building permit shall clearly depict the location of all required short and long-term bicycle parking for all intended uses. Bicycle parking shall include the 30 additional bicycle spaces for the requested parking reduction. Plans shall show all areas designated for long-term bicycle parking such as bicycle lockers, interior spaces, or storage rooms. Short-term bicycle racks shall be consistent with the City Active Transportation Plan Design Guidelines and feature “hi-low style” campus racks (such as “Peak Racks”) or City-approved equivalent (inverted “U” rack designs shall not be permitted) and shall be installed in close proximity to, and visible from, the main entries into the buildings. Sufficient detail shall be provided about the placement and design of bike racks, lockers, and interior spaces to demonstrate compliance with relevant Engineering Standards and Community Design Guidelines, to the satisfaction of the Public Works and Community Development Directors.

22. The building permit submittal shall clearly indicate the location where food trucks will be parked and operated. Food trucks shall not park in an area that will impede into existing parking spaces or hinder maneuverability of the parking lot.

23. The building permit submittal shall include new six-foot-high solid fencing to enclose the outdoor recreational area labeled as Zone A on the project plans. Required fencing shall be of a material, finish, and color that is complementary to the existing development to the satisfaction of the Community Development Director.

24. Any new proposed signage shall be reviewed by the Planning Division to ensure appropriateness for the site and compliance with the Sign Regulations. Signage shall coordinate with building architecture and the type of land use. The Director may refer signage to the Architectural Review Commission for review if it is deemed excessive or out of character with the project.

25. The property owner shall enter into an open space agreement with the City to dedicate a portion of the commercial lot which lies within the C/OS zone as an open space easement. Prior to building permit issuance, the open space agreement shall be recorded in the office of the County Recorder.

26. Submit a line-of-sight analysis to confirm that the existing building is not visible from residential neighbors across the creek to the south. If it is visible, provide screening to restore and enhance the creekside vegetation.

27. Plans submitted for a building permit shall identify the location of commercial loading areas and hours of operation.

28. Provide a barrier at the rear of the site to block visibility of the parking area from residential neighbors across the creek to the south, to the satisfaction of the Community Development Director.

29. Truck deliveries to and from the site shall only occur between the hours of 7:00 a.m. and 10:00 p.m. for the project.

Resolution No. ________ (2022 Series) Page 8
R ______
Engineering Division – Community Development / Public Works Departments

30. The proposed parking lot alterations require a building permit. The site improvements may be included with a standard tenant improvement submittal or could be by a separate parking lot permit.

31. The proposed parking lot layout, striping, and circulation shall comply with the City Parking and Driveway Standards unless a design exception is specifically approved.

32. The building permit/parking lot plan submittal shall include an overall campus plan to show all existing buildings, utilities, parking, driveway approaches, circulation aisles, site improvements, frontage improvements, fencing, access restrictions, and all trash enclosure areas, etc. for reference.

33. The site plan shall show the proposed commercial truck circulation and delivery areas, mobile food vendor truck storage and staging, and customer parking and circulation for reference. The proposed circulation plans shall be approved to the satisfaction of the Public Works and Community Development Departments.

34. The parking lot plan shall show the existing and/or proposed drainage systems for reference. The building plan submittal shall include a summary of any existing passive water quality treatment systems. A drainage system upgrade and/or Operation and Maintenance plan shall be included to ensure that a reasonable level of water quality treatment is provided prior to discharge to San Luis Creek. This item shall be reviewed and approved to the satisfaction of the Community Development and Utilities departments prior to building permit issuance.

Utilities Department

35. If commercial uses in the project include food preparation, provisions for grease interceptors and FOG (fats, oils, and grease) storage within solid waste enclosure(s) shall be provided with the design upon submittal of the building permit. These commercial facilities shall also provide an area to wash floor mats, equipment, and trash cans. The wash area shall be inside, drained to the sanitary sewer, and an Industrial Wastewater Discharge Survey and Permit Application shall be submitted and permit obtained prior to issuance of occupancy permit.

36. In order to be reused, any existing sewer laterals proposed to serve the project must pass a video inspection, including repair or replacement, as part of the project. The CCTV inspection shall be submitted during the building permit review process to the Permit Technician in Community Development, Engineering Development Review for review and approval by the Utilities Department prior to issuance of a building permit. Existing laterals that are not proposed to be reused shall be abandoned at the City main consistent with City standards.

37. The construction plans for sewer and water services shall be in accordance with the engineering design standards in effect at the time the building permit is approved.

Resolution No. ________ (2022 Series) Page 9
R ______

38. Trash enclosure(s) shall conform the requirements by the San Luis Garbage Company and refuse bins shall be sized to provide a reasonable level of service.

Separate refuse bins shall be accommodated within the site for the three (3) waste streams, trash, recycling, and organics. Enclosures shall be shown on plans prior to issuance of a building permit.

Fire Department

39. Fire sprinklers conforming to NFPA 13 Standards are required for change of use.

Fire sprinkler riser shall be located in an interior riser room with exterior door access.

Backflow preventor and fire department connection shall be within 20 feet of Monterey right of way.

40. Exiting shall comply with Chapter 10 CBC for assembly occupancies. Required exiting from a public assembly space shall not pass through a storage area or S1 occupancy.

Resolution No. ________ (2022 Series) Page 10
R ______
Indemnification

41. The applicant shall defend, indemnify, and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim.

On motion by Council Member ______, seconded by Council Member ______, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was passed and 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

ATTACHMENT B

ATTACHMENT B

THE HUB
1701 MONTEREY STREET | SAN LUIS OBISPO | CALIFORNIAMINOR USE PERMIT22.0414

ATTACHMENT C

* PROJECT SITE 1701 MONTEREY MONTEREY ST.

GRAND AVE.

ANDREWS ST.

TABLE OF CONTENTSProject Information + Table of ContentsProject DescriptionResponse Narrative to Ordinance 1651 [2018 Series]Parking RequirementsSite PlanOverall Floor PlansExterior Elevations PAGE2345678-9

VICINITY MAPSITE AERIAL
1701 MONTEREY ST
PROJECT TEAMAPPLICANTMonterey Street Brewing Company, LLC6 Higuera StreetSan Luis Obispo, CA 93401ARCHITECT | REPRESENTATIVEBracket Architecture OfficePO Box 1810San Luis Obispo, CA 93406Bryan Ridley | [email protected] | 805 704 0535PROPERTY OWNEREdwin Lawrence O’Reilly Family Trust DESIGN STATEMENTThe HUB on Monterey proposes new uses and interior alterations within an existing commercial building. The principal proposed use is a bar/tavern, including light manufacturing, commercial kitchen/commissary, warehouse, and indoor/outdoor recreation areas1. Existing on-site parking and recent site and landscape improvements will be retained.

PROJECT DATAAddress 1701 Monterey StreetAPN 001-151-014Zoning C-T-S Tourist Commercial, Special ConsiderationAdjacent Zoning C-T [northwest] C-T-S [southwest + northeast] C-OS [southeast]Lot Area 155,014 square feet [3.56 acres]Partial Lot Leased Area 61,460 square feet [1.41 acres] Current Use Retail buildingProposed Use Bar/Tavern with associated Light ManufacturingGross Interior Building Area 1st floor 11,365 sf 2nd floor 815 sf total area 12,180 sf Lot Coverage 75% Allowed 46,095 square feet 19% Proposed 11,365 square feetBuilding Envelope Height 45’ max. Setbacks 10’ front 0’ interior side and rear Construction Type + Occupancy Type VB Current Occupancy Group M Proposed Occupancy Group A-2, A-3, F-1, S-1, S-2,B,M Nonseparated, S-1 Governs Sprinklered Yes 2 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT
C

hub
[h b]NOUN

1. the central part of a wheel, rotating on or with the axle, and from which the spokes radiate. synonyms: pivot · axis · center

2. the effective center of an activity, region, or network as in the financial hub of a country synonyms: center of activity · focal point
The HUB A collaboration of 8 SLO city businesses in one, central location, designed to:
1] elevate the artistic and active lifestyle community that has made SLO famous. 2] establish North Monterey Street as the destination for a thriving community atmosphere of curated events paired with excellent food & drinks; blending locals, students, and tourists alike. • Retail and commercial kitchen(s)
• Food Truck and Mobile Food Vendor Rotation• Multiple dining options including late night food• Brewery (Production and Tasting)• Distillery (Production and Tasting)• Kombucha (Production and Tasting)• Winery (Production and Tasting)• Coffee and Baked Goods• Curated Art Gallery• Bicycle Sales, Rentals and Repairs• Live Music and Performing Arts• Dog and Family Friendly• Outdoor Pickle Ball/Cornhole/Axe Throwing/Outdoor Checkers• Indoor Bocce Ball/Ping Pong/Pool Tables• Outdoor BBQ Area• Local activity shuttle (Hiking/Bicycle Tours/Walking Tours) The Frame A day at the HUB looks like this:6:45 Coffee and muffin on the way to work or school.7:10 Healthy breakfast before a bicycle ride. A breakfast burrito with bacon is healthy, right?9:17 Check your social media or influencer status over a blended smoothie.10:45 Early lunch with friends. Go ahead, it’s ok to get fries with a salad.11:02 It’s Stroller Sunday and time check-in on neighborhood gossip.11:30 Grab something quick on your way to a ZOOM meeting.12:15 Hotel guests on their way out of town stops for lunch and some trinkets. 12:30 Grab a 4-Pack of craft beer for a barbecue at home. Why not get another 4-pack?12:45 Play a quick game of cornhole. Ironically, the street corn truck is serving today. Coincidence?1:42 Drop off you bicycle to get that flat tire fixed. Have a Kombucha while you wait.2:00 Late lunch, outside, and a little time in the sun on a beautiful day.2:19 Axe throwing really is all about proper foot setup. Noted!3:17 Drop by to see a local artist performing on the patio.3:30 The last hiking/biking shuttle leaves for Reservoir Canyon and East Ridge. Poison oak or wind?4:02 Enjoy a happy hour, craft cocktail after a long day of crypto currency day-trading.4:35 Finish a book with a fresh, West Coast IPA.5:04 Fresh, smoked tri-tip nachos appetizer. Baffled on which beer to have.5:25 Your dog, Simcoe gets to see his neighbor Bailey while their humans enjoy a couple of Seltzers. 5:43 Taco Tuesday special is smoked chili verde tacos on home-made tortillas.6:00 A local artist is hosting a “Meet and Cheese” night.6:19 Your favorite fried chicken food truck is outside serving.7:06 Movie night starts. It’s a Tom Cruise double header, Top Gun and Mission Impossible.7:30 Rent some commercial kitchen space to finally get your grandma’s famous salsa into a jar.7:45 On your way to the drive in, you stop to get some snacks and to-go truck food.8:00 Your roommate has a mid-term tomorrow but you can squeeze in a couple of rounds of pool.9:05 On-line dating is not fun, but at least all your team is there to make sure he isn’t a creep.9:36 The NBA finals seem to go on forever!10:08 Stop by for a celebration drink on the way home from an awesome show at the PAC.11:00 Ice cream sundae after a movie downtown. Ok, get the pie too. e
The Spokes• Central Coast Brewing• KROBAR Craft Distillery• Nautical Bean Coffee• Art’s Cyclery • What The Truck Mobile Cuisine• Lone Oak Seltzer• SLO Axe• Whalebird Kombucha 3 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT
C

RESPONSE NARRATIVE TO ORDINANCE 1651 [2018 SERIES]

1. All new structures approved after adoption of this ordinance shall be setback a minimum 20 feet from the existing top of creek bank or edge of riparian vegetation, whichever is farther from the creek flow line ( subsequently called the “ creek setback reference line”). The setback area may be occupied by landscaping and fencing. No new facilities for parking, active recreation or noise generating equipment may occupy the creek setback area.

No new structures are proposed.

2. The number and size of building openings facing the creek shall be minimized. Windows shall be no larger than the minimum required by public safety. Glazing shall not reflect sunlight toward the creek nor allow internal lighting to shine toward the creek. Balconies and/ or attendant doors are prohibited.

All openings facing the direction of the creek are existing and will not be expanded.

3. Screening shall be provided between the buildings and the creek which may include fencing, decorative walls and landscaped berms, said screening shall at a minimum include restoration and enhancement of the creekside vegetation, and shall also be designed and built so as to block view corridors of the building visible from residential neighbors Existing fencing along the creek will remain. The existing buildings shield and buffer the outdoor uses.

4. Lighting between the buildings and the creek shall be limited in intensity and scale to the minimum necessary for security and identification and shall be designed so as not to shine offsite.

All lighting will comply with the Night Sky Ordinance and the parameters of this ordinance.

5. The expansion or redevelopment of properties shall make maximum use of common driveways.

The existing driveway and pedestrian entries shall remain in use.

6. All new uses must be found by the Planning Commission to be compatible with the riparian habitat and adjacent residential uses, considering such variables as light and glare, privacy, noise and traffic. In all cases, uses shall be adequately buffered from the creek and adjacent residences in a manner which mitigates potential offsite impacts.

The new uses occur approximately 160’ minimum from the Creekside property line. Most outdoor activities are buffered by the existing buildings and all activities are intentionally positioned to be street facing and nearer to the street than the creek.

7. Noise generating uses such as parking and active outdoor recreation uses, such as swimming pools, outdoor bars, and gathering areas shall be located on the interior of the site, using buildings as a buffer.

Noise generating outdoor uses are located on the interior site, sheltered by buildings. Parking is located entirely in existing paved vehicular areas.

8. All drainage to the creek shall be directed in a manner which does not erode the creekbank, harm the creekside vegetation or degrade the quality of the creek and its riparian habitat. Appropriate systems may include the use of debris and rubbish screens, oil and grease traps and erosion control/energy dissipaters subject to the approval of the City Engineer and the State Department of Fish and Wildlife.

Drainage patterns are not impacted by the project. The grease trap/interceptor will be placed near the driveway from Monterey Street to provide nearest access to a pumping truck.

9. Building height shall be restricted as follows:
a) Between 20 and 50 feet, of the creek setback reference line, maximum height shall be 25 feet. b) Between 50 and 80 feet of the creek setback reference line, maximum height shall be 35 feet. c) Beyond 80 feet from the creek setback reference line, maximum height shall be 45 feet.

No new buildings are proposed.

10. Grading within the creek setback area shall be limited to that necessary to stabilize the creekbank and to accommodate landscaping, and shall be done in a manner which does not increase erosion of the creekbank or result in the removal of or significant damage to creekside vegetation.

No grading is proposed in the creek setback area.

11. 11. A s a condition of every new use established or expansion of existing use, that portion of a commercial lot which lies within the C/OS- 5 zone shall be dedicated as a perpetual open space easement.

Noted.

12. In special circumstances, the Planning Commission may lower the height and/or increase the setback standards established by this ordinance.

Heights and setback limits are met by a significant margin.

13. The revised C/OS- 5 boundary and design criteria contained in this ordinance shall be recorded and referenced on the title of all affected parcels.

Noted.

14. The creekside setback area and/or the area beneath the high berm on the creekside shall not be used for a public or urban trail.

Noted. No trail proposed.

15. Any structure that functions primarily as a conference or convention center shall not be allowed. Meeting and conference rooms ancillary to other approved uses are allowed. Rooms whose primary use is for social gatherings ( ballrooms, etc.) shall not be located creekside.

The structure is not a conference or convention center. Social gatherings that accompany the restaurant and bar/tavern uses are not located creekside.

16. Openings associated with and resulting from underground, ground, or above ground parking, oriented toward the creek or that occur on the sides of the structures within 100 feet of the creek setback reference line are prohibited.

No new openings facing toward the creek are proposed. Existing fencing along the creek will remain.

17. During all stages of planning and building, design and engineering plans and over- the counter-changes to the approved plans and permit shall be a matter of public record (as defined in California Government Code Section 6520), shall be noted on the official packet of material, and shall be readily available to the public upon demand.

Noted.

18. Any new proposal or significant alteration to an existing development shall be subject to a use permit approved by the Planning Commission. In approving a use permit, the Planning Commission shall find that the proposed conforms to all the criteria listed in Section 3.

Noted.
4 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT
C

Vehicle Parking Spaces Required [Title 17 table 3-4]
Restaurant Dining 1 per 100 sf 825 sf 8.25 Restaurant Kitchen 1 per 100 sf 415 sf 4.15 Production 1 per 1000 sf 1,220 sf 1.22 Tasting Area 01 1 per 100 sf 585 sf 5.85 Tasting Area 02 1 per 100 sf 165sf 1.65 Tasting Area 03 1 per 100 sf 315 sf 3.15 Retail Sales 1 per 300 sf 685 sf 2.28 Commercial Kitchen 1 per 1,500 sf 1,165 sf 0.77 Cold Storage 1 per 1,000 sf 750 sf 0.75 Circulation + Restrooms 0 required 2,460 sf 0 Indoor Recreation 1 per 200 sf 2,775 sf 13.87 Production Office/Storage 1 per 300 sf 815 sf 2.72 Indoor Subtotal 44.66 Outdoor Recreation Space [east] 1 per 500 sf 10,221 sf 20.44 Outdoor Recreation Space [west] 1 per 500 sf 1,560 sf 3.12 Outdoor Retail Display 1 per 300 sf 525 sf 1.75 Outdoor Subtotal 25.31 Parking Subtotal 69.97 Bike Parking Reduction 10% 6.3 Total Required Parking 64 spaces [63.67]Vehicle Parking Summary Existing 34 Required 64 Provided 64 Required Accessible 2 standard, 1 van per CBC 11B [2 are existing]EV Parking Existing Spaces (non EV) 34* EV Ready 3 [10%] EV Capable 9 [25%]Motorcycle Parking Existing none Required 2 [1 per 20 of 31 existing spaces] Provided 2Bicycle Parking Existing none Required, Indoor Use 30 Required, Outdoor Recreation to be confirmed with community development director Provided 20 + Outdoor TBD + 30 [for 10% bike parking reduction] Short + Long Term Distribution 38 short term [75%] + 12 long term [25%] + Outdoor short term TBD* This project qualifies as a remodel if scope of work is equal to or exceeding 25 percent of the existing gross floor area of the structure before the construction. Where an existing legal, nonconforming parking condition exists, the EV spaces requirement shall be based on the existing number of parking spaces [34], not the required number of parking spaces [64]. More than 25 spaces requires 10% EV ready spaces, plus 25% EV capable. [17.72.040, 17.106.022] 5 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT C

VAN
MM

EVR EVCS EVCS EVCS
EVCS

EVR EVR EVR EVR EVR EVR
50'-0"
60'-10" BAY WIDTH
60'-1" BAY WIDTH
69'-3" BAY WIDTH
16'-0" dedicated
10'-0" setback
1r
:

1r

(
1r
(


1r

(


1r
:

1r
:

1r
(

196'-3" TO BUILDING CORNER 94'-4" TO EDGE OF PARKING
SITE PLANSCALE: 1/32” = 1’
01 8 6 32
1701 MONTEREY

PROPERTY LINE

MONTEREY STREET
ZONE D

OUTDOOR

RECREATION
7,323 sf
1741

MONTEREY

NOT A PART
12 16 [e] PARKING
6 [e]

PARKING
12 [e] PARKING
12 16
11 4 [n] PARKING
4 [n] PARKING
12 [n]

COMPACT

PARKING
6 [n] PARKING
4 [n]

PARKING
ZONE E

OUTDOOR

RECREATION
2,898 sf
ZONE A

OUTDOOR RECREATION
1,560 sf
ZONE B

OUTDOOR
RETAIL
525 SF
ZONE C

OUTDOOR

ARRIVAL

1. [N] FENCED OUTDOOR PRODUCTION EQUIPMENT AREA2. [N] COFFEE CART CARGO CONTAINER3. [E] FIRE HYDRANT4. [N] SHORT-TERM BICYCLE PARKING RACKS5. [E] WASTE COLLECTION AREA6. [N] LONG-TERM BICYCLE PARKING LOCKERS7. [N] EV READY PARKING [EVR]8. [N] EV CAPABLE PARKING [EVCS]9. [E] STORAGE CANOPY FOR 1741 MONTEREY10. [E] STEEL STORAGE CONTAINERS FOR 1701 MONTEREY11. [E] GLASS WIND SCREEN12. [E] STEEL FENCE13. [E] CURB, GUTTER, + SIDEWALK14. [E] CONCRETE ACCESS STAIR AND RAMP15. [N] ACCESSIBLE ROUTE FROM RIGHT-OF-WAY AND ACCESSIBLE PARKING SHOWN DOTTED16. [E] STREET TREE, TYP OF [7]17. [N] FOOD TRUCK LOCATION

REFERENCE NOTES
1 2
3 4
91010
5 SLO CREEK TOP OF BANK

C/OS C-T-S
MIN. SETBACK

TREE CANOPY
13 15
15 7 87
15 [E] DRAINAGE
[E] DRAINAGE 14
14 UP
UP
66 4
17 17
ZONE F
6 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT
C



FLOOR PLANSCALE: 1/16” = 1’
08 4 16
MEZZANINE LEVEL PLANSCALE: 1/16” = 1’

PRODUCTION
840 sf

COMMERCIAL KITCHEN
1,165 sf

RESTROOMS
RETAIL
685 sf

RESTAURANT

KITCHEN
415 sf

PRODUCTION
OFFICE
450 sf

COLD STORAGE
INDOOR RECREATION 750 sf
2,775 sf
DINING
825 SF

OUTDOOR RECREATION

OUTDOOR RETAIL

DISPLAY
Proposed Use and Occupancy Classification
Occupancy Classification Restaurant Kitchen A-2 Restaurant Bar/Dining A-2 Kitchen Commercial B Production F-1 Tasting Area A-2 Retail M Storage, Cold S-2 Production Office B Recreation Indoor A-3

CIRCULATION
1690 sf

STORAGE
365 sf

OUTDOOR RECREATION
TASTING AREA 01
TASTING AREA 03 585 sf
315 sf
TASTING AREA 02
165 sf

PRODUCTION
380 sf
7 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT
C

NORTHEAST EXTERIOR ELEVATION
SCALE: 1/16” = 1’
SOUTHWEST EXTERIOR ELEVATIONSCALE: 1/16” = 1’

ZONING DESIGNATION SERVICE COMMERCIAL (C-T-S) SIGN TYPES ALLOWED ALL SIGN TYPES EXCEPT # SIGNS PER PREMISES ALLOWED PROPOSED 2 2ILLUMINATION FOLLOWING STANDARDS PER SLO MC 15.40.030MAX. CUMULATIVE SIGN AREA ALLOWED PROPOSED 200 SF 200 SF

SAN LUIS OBISPO CITY SIGN STANDARDS
SIGN 2type: wall sign, painted area allowable: 100 sf
area proposed: 100 sf (8.5’ x 11.75’)SIGN 1type: wall sign, paintedarea allowed: 100 sfarea proposed: 100 sf (8.5’ x 11.75’) SIGN 2
SIGN 1
8 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT
C

SOUTHEAST EXTERIOR ELEVATION
SCALE: 1/16” = 1’
NORTHWEST EXTERIOR ELEVATIONSCALE: 1/16” = 1’
9 THE HUB ON MONTEREY BRACKET ARCHITECTURE OFFICE
1701 MONTEREY ST | SAN LUIS OBISPO22.0414 | MINOR USE PERMIT

ATTACHMENT C

ZONE A ZONE B ZONE C ZONE D ZONE E ZONE F
OPEN 6:00 AM 9:00 AM 11:00 AM 11:00 AM 11:00 AM 11:00 AM CLOSE 10:00 PM 10:00 PM 10:00 PM 10:00 PM 10:00 PM 10:00 PM

ACTIVITY
Axe Throwing 
BBQ 
Bicycle Display 
Board Games 
Chess/Checkers 
Coffee Cart 
Corhhole 
Dog Area 
Fire Pits 
Food Truck 
Performing Arts 
Ping Pong 
Pickle Ball 
Ring Toss 
Outdoor Retail and Recreation Zones

ATTACHMENT D

ACTIVITY
Axe Throwing
BBQ
Bicycle Display
Board Games
Chess/Checkers
Coffee Cart
Corhhole
Dog Area
Fire Pits
Food Truck
Performing Arts
Ping Pong
Pickle Ball
Ring Toss
Operational Overview
Proposed operation window
Based on reservations
Daily 7:00 AM to 8:00 PM
Daily 9:00 AM to 6:00 PM
Daily 11:00 AM to 9:00 PM
Daily 11:00 AM to 9:00 PM
Thursday-Sunday, early afternoon through early evening, subject to availability Daily 11:00 AM to 9:00 PM
Daily 11:00 AM to 9:00 PM
Daily 11:00 AM to 9:00 PM
Daily 6:00 AM to 4:00 PM
Daily 11:00 AM to 9:00 PM
Daily 11:00 AM to 9:00 PM
Daily 11:00 AM to 10:00 PM
Daily, rotating truck, hours based on menu and availability

ATTACHMENT D

Item 7a
Department: Community Development
Cost Center: 4006
For Agenda of: 9/20/2022
Placement: Study Session
Estimated Time: 90 min.

FROM: Michael Codron, Community Development Director
Prepared By: Kelsey Nocket, Homelessness Response Manager SUBJECT: STUDY SESSION: HOMELESSNESS RESPONSE STRATEGIC PLAN

RECOMMENDATION

1. Receive a presentation about activities to date for homelessness response; and

2. Provide concurrence on the strategic vision, proposed outcomes, and outreach and feedback plan for the City’s first Homelessness Response Strategic Plan.

POLICY CONTEXT
The 6th Cycle General Plan Housing Element includes many policies and programs that relate to the reduction of homelessness; specific goals and policies are listed below:

Goal 1: Safety – Provide safe, decent shelter for all residents.

Policy 1.1: Assist those citizens unable to obtain safe shelter on their own.

Policy 1.2: Support and inform the public about fair housing laws and programs that allow equal housing access for all City residents.

Program 1.7: Continue to support local and regional solutions to homelessness by funding supportive programs, services, and housing solutions.

Goal 8: Special Housing Needs – Encourage the creation and maintenance of housing for those with special housing needs.

Policy 8.1: Encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, veterans, farmworkers, the homeless, or those seeking congregate care, group housing, singleroom occupancy, or cohousing accommodations, utilizing universal design.

Policy 8.8: Continue to support regional efforts to address homelessness.

Policy 8.10: Assist the homeless and those at risk of becoming homeless by supporting shelters, temporary housing, and transitional housing.

Item 7a
Program 8.11: Continue to provide resources that support local and regional solutions to meet the needs of the homeless and continue to support, jointly with other agencies, shelters and programs, such as Housing First and Rapid Rehousing, for the homeless and for displaced individuals and families.

Program 8.19: Continue to look for partnership opportunities with non-profit housing developers and service providers to acquire four vacant, blighted, or underutilized properties (land, retail or commercial space, motels, apartments, housing units, mobile home parks) during the planning period for conversion into affordable permanent and supportive housing for homeless persons and families.

Program 8.21: Continue to coordinate monthly with the County Department of Social Services, Homeless Services Oversight Council (HSOC), social service providers, and non-profit organizations to identify, evaluate, and implement strategies to reduce the impacts of homelessness on the city.

REPORT-IN-BRIEF
This item is on the agenda because the City Council approved a Major City Goal work program that included preparation of a Strategic Plan for Homelessness Response. The purpose of the Strategic Plan is to align City policies with the adopted the Countywide Plan to Address Homelessness (“County Plan”) while considering the availability of state and federal funding.

The toll of homelessness on individuals experiencing it and across the community is critically high and responding to the challenge is a top ranked community priority. 1 In this
study session, Council will receive a presentation summarizing the progress of strategic plan implementation to date to ensure it follows the strategic direction provided by Council on November 16, 2021. Additionally, Council is asked to provide feedback on the proposed vision and outcomes to ensure alignment with the recently adopted County Plan2 by the Board of Supervisors on August 9, 2022. Finally, the Council is asked to give concurrence on additional outreach planned to occur prior to Council consideration of final plan adoption currently scheduled in January 2023.

Proposed Vision Statement: All community members in SLO City are empowered to successfully prevent and address concerns related to homelessness through equitable access to a variety of resources. Periods of unsheltered homelessness within SLO City are brief due to the City’s capacity to conduct timely outreach and connect to a range of emergency and transitional shelter/housing options through local and regional resources.

1 Community Survey City of San Luis Obispo 2021-2023 Financial Plan 2 San Luis Obispo Countywide Plan to Address Homelessness 2022-2027

Item 7a

DISCUSSION
Background
In December 2020, the City allocated funding for the City’s first Homeless Response Manager who started work for the City in April 2021. Following the creation of the new position, the City Council adopted the 2021-2023 Major City Goal for Housing and Homelessness. Central to the work program is the creation of the City’s first Strategic Plan for Homelessness Response.

The work associated with the Major City Goal is organized and coordinated under the broad goal statement to Collaborate with local non-profit partners and the county, the state, and federal governments to discover and implement comprehensive and effective strategies to reduce chronic homelessness. The following are the five major strategies approved by Council in support of the Goal which are each supported by multiple objectives and tasks.

1. City Homelessness Team Coordination

2. Environmental Protection and Water Quality

3. Regional Engagement and Grant Management

4. Community Action Team (CAT) Resources and Downtown Bike Team Resources

5. Mobile Crisis Unit Pilot Program Implementation

6. Nonprofit Partner Funding Support
On November 16, 2021, Council received a presentation from the Homelessness Response Manager on activities to date and provided direction on developing a strategic plan. Considering the urgent need to address homelessness in the City, Council approved a continuous implementation methodology, that would allow staff to implement elements of the plan as it was being written. Additionally, Council provided direction to focus the strategic plan on five key components: 1) Data, 2) Communications, 3) Pilot Programs, 4) Regional Collaboration & Engagement, and 5) Funding Opportunities.

Over the intervening 10 months, staff has collaborated with multiple SLO City departments, non-profit partners, and city/county government counterparts to advance this effort. The following is a summary of progress made in each of the key component areas since the last presentation in November 2021:

1. Data
a. Data Collection App: Staff developed a new data collection app, with input from multiple City Departments including Police, Fire, Community Development, Public Works, Parks & Recreation, City Attorney, and Administration. This app enables multiple City staff that engage directly in encampment outreach and resolution to coordinate efforts and ensure compliance with City policies as well as State and Federal Court mandates.

The app completed beta testing at the end of August and is currently being used in the field.

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2. Communications
a. Webpage: Staff created a new webpage for Homelessness Prevention and Assistance on the SLO City Website (slocity.org/homelessness). This update has resulted in a 19% increase in user engagement, averaging 345 page views per month compared to an average of 289 views per month the year before. The site is regularly updated to ensure accurate information related to services and City efforts are relayed to the public. b. Pocket Guide: Staff have also created a Homeless Resources Pocket Guide detailing critical information on how to access resources. This pocket guide was developed through direct input from CAPSLO and Family Care Network outreach workers to provide critical information on the most commonly requested/referred resources. The City staff and outreach workers to those experiencing homelessness.

3. Pilot Programs
a. Railroad Square Safe Parking Program: On November 12, 2021, CAPSLO rebooted the Railroad Square Safe Parking Program after a weeklong closure. During the temporary closure, City Parking Enforcement, Public Works, and Streets Team worked to stencil parking spaces, place signage, install movable barricades, and establish regular street sweeping on site, while CAPSLO formalized program rules and site maintenance. Prior to the reboot the program averaged less than 1 registered participant per night.

Since the reboot, the program has been averaging 19 registered participants per night.
b. Community Action Team Expansion: On September 1, 2021, SLOPD selected Officer Sisemore to serve as a member of the Community Action Team (CAT), and on February 17, 2022, the City finalized a contract with Transitions Mental Health Association to hire a second Case Manager.

Recruitment for this position is ongoing. In the interim, CAT is working in close coordination with Mobile Crisis Unit to continue momentum on ongoing case management.
c. New Mobile Crisis Unit: The City onboarded its first Mobile Crisis Unit (MCU) comprised of one EMT and one Case Manager in June of 2021. Like the CAT, the MCU is tasked with responding to mental/physical health crisis. In just three months, the MCU has responded to over 100 calls for service and achieved four successful family reunifications.

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4. Regional Collaboration and Engagement
a. Countywide Strategic Plan to Address Homelessness: The Homelessness Response Manager served as a member of the Steering Committee for the Countywide Strategic Plan effort and advocated for the development of a continuum of shelter to focus on key beneficiary groups including families, medically vulnerable, and chronically homeless/unsheltered individuals.

SLO County Board of Supervisors approved the Countywide Strategic Plan to Address Homelessness on August 9, 2022, after a favorable recommendation from HSOC.
b. Outbreak Resilience Effort: City staff are currently working with CAPSLO and County Public Health to identify changes that will increase 40 Prado Homeless Services Center’s resiliency to communicable disease outbreaks. This is a priority as outbreak closures have impacted 40 Prado’s immediate ability to function as the largest emergency shelter resource in the County. Additionally, inability to accept new participants in these periods severely impacts the City’s ability to fulfill its mandate of ensuring public safety.

5. Funding Opportunities
In April 2022, the City Council allocated $2,964,467 in Affordable Housing Funds to the Housing Authority of San Luis Obispo and Transitions Mental Health Association for acquisition and rehabilitation of at-risk housing for low-income households and supportive housing apartments which helped leverage State and Local Fiscal Recovery and HomeKey funds. Staff is working proactively to position funding opportunities by identifying key projects that have the greatest potential to advance both City and regional goals related to preventing/addressing homelessness and actively seeking funding from both public and private sector sources:
a. HomeKey Round 3: While the Notice of Funding Opportunity for HomeKey Round 3 is not expected to become available until November 2022, City staff are working with local partner organizations and private donors to prepare an application that would provide transitional housing for families experiencing homelessness.

STRATEGIC DIRECTION
Scope of Strategy
When discussing the City’s Strategic Plan to Prevent and Address Homelessness, it is important to consider the City’s role in the scope of Homelessness Response. Figure A provides a visual summary of how federal, state, county, and city governments, as well as community partners work together to fund and implement programs that assist those experiencing homelessness. Each of the green spheres represents the scope of responsibility, while the opacity represents funding availability.

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Figure A: Visual summary of Roles and Responsibilities to Address Homelessness.

To better understand needs related to homelessness as a national priority, Point in Time (PIT) Counts are required by the Department of Housing and Urban Development to count the number of people experiencing homelessness on a single night in January on an annual basis and with data disaggregated down to the city level. The 2022 SLO County PIT Report3 was published on July 19, 2022 and provides the most comprehensive information on the City’s homeless population. The 2022 PIT count was conducted during the COVID-19 pandemic and was postponed to February 2022 due to COVID-10 safety concerns during the Omicron surge. The report concludes that longer term trends for the San Luis Obispo County region are consistent with neighboring communities. Some pertinent overall numbers of the 2022 PIT count include that a total of 1,448 persons are reported as experiencing homelessness in the county in 2022, a decrease of 2% from 2019. Unsheltered homeless population for the City is reported at 248, and sheltered homeless population reported as 137, a decrease from 2019 of 326 unsheltered and 156 sheltered persons respectively. Some PIT data points of particular interest to the strategic planning process include: the homeless population that reported San Luis Obispo County as their residence at time of homelessness increased from 74% reported in 2019 to 92% in 2022; the duration of homelessness, reported as lasting for a year or longer, increased from about half (52%) in 2019 to more than three-quarters (83%) in 2022; and an 8% increase for homeless youth is reported from 2019.

3 SLO County Point in Time Report 2022

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The County is responsible for implementing programs set forth by the State including Social Services, Behavioral Health, Drug & Alcohol Services, Public Health, etc. They are also responsible for setting the overall tone and strategic direction on addressing key issues that affect the region. As such, it is important for the City’s strategic plan to align with and promote County initiatives.

On August 9, 2022, the SLO County Board of Supervisors approved the Countywide Strategic Plan to Address Homelessness. This five-year plan outlines regional priorities under six lines of effort focused on 1. Housing/Shelter, 2. Services, 3. Data, 4. Funding Resources, 5. Regional Collaboration, and 6. Public Engagement.

The following sections outline how the City’s two-year strategic planning effort is aligned with the countywide plan as well as highlight key differences in scope.

Vision Statement
A vision statement sets an ideal and inspirational intention for our strategy. It provides a north star for all subsequent policies, programs, and actions related to the effort to prevent and address homelessness.

Approved Countywide Vision Statement:

The San Luis Obispo region will reduce homelessness by ensuring that people at risk of losing housing can retain it, and those experiencing homelessness can equitably secure safe housing with appropriate supports, minimizing trauma to the individual, the community, and the environment.

City Proposed Vision Statement:

All community members in SLO City are empowered to successfully prevent and address concerns related to homelessness through equitable access to a variety of resources. Periods of unsheltered homelessness within SLO City are brief due to the City’s capacity to conduct timely outreach and connect to a range of emergency and transitional shelter/housing options through local and regional resources.

1. Does Council concur that the proposed vision statement accurately reflects the City’s role and responsibilities and supports the Countywide strategic plan?

2. Does the above proposed vision statement align with Council’s vision of success for the City’s 2-year strategic plan to prevent and address homelessness?

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Measurements of Success
Where the vision statement is an ideal and inspirational intention for the strategy, it must be operationalized through specific goals and measurable outcomes.

Table 1 below illustrates how key elements and corresponding goals of the city plan align with the countywide effort. You will note that some sections are bolded to demonstrate the difference in scope between the countywide and city plans:

City-Level Key Components Countywide Lines of Effort
1 Data
Streamline data collection among city
departments to enable timely and effective
coordination of current homelessness
response efforts, as well as provide analysis
to determine assess best practices and
changing needs.

Line of Effort 3
Improve and expand data management efforts
through [countywide] HMIS and coordinated
entry system to strengthen data-driven
operational guidance and strategic oversight.
2 Communications
Enable equitable access to resources and
increase transparency so that all community
members are aware of efforts to address
gaps in service and know where/how/when
to reach out for assistance to address
concerns related to homelessness.

City policies and procedures related to
homelessness response follow evolving
legal framework, demonstrate compassion,
and enable efficient use of resources.

Line of Effort 6
Build public engagement through information
sharing and partnership.
3 Pilot Programs
Conduct timely outreach and connect
those experiencing homelessness to a
variety of emergency and transitional shelter
options through local and regional
resources.

Line of Effort 1
Create affordable and appropriately designed
housing opportunities and shelter options for
underserved populations.

Line of Effort 2
Focus efforts to reduce or eliminate the
barriers to housing stability for those
experiencing homelessness or at risk of
homelessness including prevention, diversion,
supportive services, and housing navigation
efforts.
4 Funding Opportunities
Proactively seek funding opportunities to
meet localized needs as aligned with
regional goals to prevent and address
homelessness.

Line of Effort 4
Create, identify, and streamline funding and
resources.
5 Regional Collaboration & Engagement
Engage city and regional partners in
collaborative efforts to improve effective use
of resources by promoting further adoption
of proven best practices.

Line of Effort 5
Strengthen regional collaboration.

Table 1: Alignment of Strategic Plan Goals

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The goals listed in Table 1 under each of the City plan’s key components outline the desired impact. However, measurable outcomes are necessary to ensure that the City is accountable to achieving these goals.

4 The goal of Housing First is to provide housing to individuals and families quickly with as few obstacles as possible, along with voluntary support services according to their needs. https://homekey.hcd.ca.gov/sites/default/files/2021-09/Housing%20First%20Guidance%20Checklist.pdf Table 2: SLO City Strategic Plan
Key
Component 2-Year Goal Measurable Outcome Example Indicators 1 Data
Data Driven Best
Practices:

Streamline data
collection among city
departments to
enable timely and
effective coordination
of homelessness
response efforts, and
provide analysis to
inform best practices
and assess needs.
a) Reduce number
of data collection
repositories.
b) Increase number
of referrals from
city staff.
c) Analyze number
of successful
referrals to inform
best practice.
a) # of city data collection
repositories
b) # of referrals made by
city staff
c) # of successful referrals
reported by Prado
2 Communication
&
Outreach
Effective
Communications:

Enable equitable
access to resources
and increase
transparency so that
all community
members are aware
of efforts to address
gaps in service and
know
where/how/when to
reach out for
assistance to
address concerns
related to
homelessness.
a) Increase
community
awareness of
available shelter
and mental/
physical health
services by 50%.
b) Develop
communications,
outreach, and
County
collaboration to
support Housing
First.
a) # of surveyed individuals
that are aware of shelter
and mental/physical
health services compared
to # at baseline.
a) % Increase in city
homelessness prevention
and assistance webpage
views.
b) Produce a Housing First
white paper and road map
for the City’s role and
opportunity to
establish/support Housing
First programs and
initiatives4.

City policies and
procedures related to
homelessness
response follow
evolving legal
framework,
demonstrate
compassion, and
enable efficient use
of resources.
a) Update City
policies and
procedures to
align with
local/state/federal
laws
b) City employees
are trained on
updated policies,
procedures, and
best practices.
a) % of City
policies/procedures
related to homelessness
updated annually.
b) # of city staff trained on
topics related to
homelessness.

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1. Does Council concur with the 2-year goals for each key component?

2. Does Council recommend any additions or alternatives to the proposed measurable outcomes?
3 Pilot Programs
Connect to
Housing: Expand
capacity to conduct
timely outreach &
connect those
experiencing
homelessness to a
variety of emergency
and transitional
shelter options
through local and
regional resources.
a) Increase
resiliency of
emergency
shelter.
b) Increase diversity
of outreach
resources/teams.
c) Identify and
support
opportunities to
develop
transitional
housing.
a) # days intake is halted
due to communicable
disease outbreak/
disruptions.
b) # of city outreach staff; #
of outreach contacts.
c) # of outreach
resources/teams.
d) # of city supported
transitional housing
opportunities.
4 Funding
Opportunities
Leverage Funds:

Proactively seek
funding opportunities
to meet localized
needs as aligned with
regional goals to
prevent and address
homelessness.
a) Increase/diversify
SLO City’s
funding resources
for homelessness
response.
b) Support efforts to
establish
emergency/transit
ional housing for
key beneficiary
groups.
a) # of grant applications
submitted; $ dedicated to
homelessness response.
b) # of city supported
emergency/transitional
housing projects for
chronically homeless,
medically vulnerable,
and/or families.
5 Regional
Collaboration &
Engagement
Promote Best
Practices:

Engage city and
regional partners in
collaborative efforts
to improve effective
use of resources by
promoting further
adoption of proven
best practices.
a) Advocate for
policies and
programs that
meet localized
and regional
objectives.
b) Advocate for
adoption of best
practices.
c) Advocate for
equitable and
proportional
funding from
Federal/State and
local county and
cities.
a) # of regional advisory
groups city participates
in.
b) # of best practice
templates/guides
developed and shared by
City.
c) % of City funds dedicated
to homelessness
response efforts reflects
City’s homeless
population per most
recent PIT.

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Public Engagement
Staff have been continuously engaged in outreach on concerns related to homelessness through regular site visits to encampments, services providers, and local businesses, response to public inquiries, and participation in committees (Homeless Services Oversight Council) and other public forums (panel discussions and news interviews).

Homelessness is an issue that touches every part of the community from personal wellbeing to public safety and environmental impact. As such, incorporating community feedback is a critical element to ensuring that the City’s Strategic Plan is a success.

All SLO City community members are encouraged to participate by providing feedback through a survey posted to the City’s Homelessness Prevention and Assistance Webpage (www.slocity.org/homelessness). The survey will be live immediately following this study session at the September 20, 2022, City Council Meeting and will close on October 31, 2022.

The Homelessness Response Manager will conduct a series of on-site surveys to ensure that unsheltered and unhoused community members have an opportunity to provide input.

In addition to these survey platforms, City staff will engage key stakeholders in a series of feedback sessions. To encourage productive and honest discussions, staff have identified seven stakeholder groups to organize feedback sessions. This encourages individuals/organizations to provide necessary feedback regardless of their relationship with the City (ex: grant recipients, permit applicants, etc.) by acting as a member of a similarly situated group. The seven proposed stakeholder groups are as follows:

1. Homeless Services Providers

2. Specialized Services Providers

3. Housing Providers

4. Healthcare Providers

5. Grassroots/Activists

6. Business Community

7. Faith-Based Groups
In order to present a draft of the City Strategic Plan to Prevent and Address Homelessness at the target February 7, 2023, City Council Meeting, the Homelessness Response Manager will conduct one feedback session per week from October 3rd – November 19th. The remaining time from November to December will be dedicated to drafting the Strategic Plan document.

1. Does Council concur with the proposed public engagement approach of public surveys and stakeholder feedback sessions?

2. Does Council recommend any additions or alternatives to the proposed stakeholder groups?

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Previous Council or Advisory Body Action
On November 16, 2021, Council received a presentation from the Homelessness Response Manager on their activities to date and provided direction on developing a strategic plan with a continuous implementation methodology and five key components (1. Data, 2. Communications, 3. Pilot Programs, 4. Funding Opportunities, and 5.

Regional Collaboration and Engagement).

On June 20, 2022, Council received a presentation from County staff on Homelessness Response Regional Collaboration and provided feedback on the draft Countywide Strategic Plan to Address Homelessness.

Focus Question Summary
Focus questions identified for consideration of the proposed strategic direction are summarized below:

1. Does Council concur that the proposed vision statement accurately reflects the City’s role and responsibilities and supports the Countywide strategic plan?

2. Does the above proposed vision statement align with Council’s vision of success for the City’s 2-year strategic plan to prevent and address homelessness?

3. Does Council concur with the 2-year goals for each key component?

4. Does Council recommend any additions or alternatives to the proposed measurable outcomes?

5. Does Council concur with the proposed public engagement approach of public surveys and stakeholder feedback sessions?

6. Does Council recommend any additions or alternatives to the proposed stakeholder groups?

CONCURRENCE
The City has established a Field Operations Group, Technical Specialist Group, and Steering Committee to streamline communications and establish concurrence on City policy/procedure that directly impact those experiencing homelessness. All policies and procedures are vetted by the Steering Committee, which is comprised of leadership from City Administration, City Attorney’s Office, Community Development Department, Police Department, Fire Department, Public Works, and Parks and Recreation.

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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended actions in this report because the actions do not constitute a “Project” under CEQA Guidelines Section 15378. Once a draft Strategic Plan is created, it will be evaluated to determine if the plan or any of its components require environmental review under CEQA prior to adoption.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $35,000 $ $33,428 $
State
Federal
Fees
Other:

Total $35,000 $ $33,428 $
Funds in the amount of $35,000 were allocated for stakeholder engagement and community outreach to cover design and development of materials such as the pocket guide, and to implement the communications plan as described above. To date, $33,428 remain for spending.

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ALTERNATIVES
If the City Council does not have sufficient information to provide direction to staff, or if additional time is needed for discussion, the Council can continue consideration of the item to a future meeting. If the City Council decides to continue the meeting, direction should be provided to staff on any additional information needed to complete the discussion. There are many different approaches to strategic planning for homelessness response and some examples emerging of city-level plans for consideration.5

5 Some examples from other California cities of Strategic Plans for Homelessness Response include: City of Malibu Homelessness Strategic Plan; City of Hayward Homelessness Reduction Strategic Plan; City of Goleta Homelessness Strategic Plan; City of Encinitas Homeless Action Plan