San Luis Obispo City Council
October 4, 2022

City Council
AGENDA

Tuesday, October 4, 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 Michelle Shoresman will lead the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a. PROCLAMATION - DATING AND DOMESTIC VIOLENCE ACTION MONTH
Mayor Stewart will present a proclamation declaring the month of October as "Dating and Domestic Violence Action Month."

3.b. PROCLAMATION - MAYOR'S MONARCH PLEDGE DAY
Mayor Stewart will present a proclamation declaring October 8, 2022 as "Mayor's Monarch Pledge Day."

3.c. PROCLAMATION - INDIGENOUS PEOPLES DAY
Mayor Stewart will present a proclamation declaring October 10, 2022 as "Indigenous Peoples Day."

3.d. PROCLAMATION - FIRE PREVENTION WEEK
Mayor Stewart will present a proclamation declaring the week of October 9 - October 15, 2022 as "Fire Prevention Week."

3.e. 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 5f.

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 20, 2022 COUNCIL MINUTES 9 Recommendation:

Approve the minutes of the City Council meeting held on September 20, 2022.

5.c. APPROVE A REQUEST TO INCLUDE PROPERTY AT 1421 GARDEN

STREET IN THE INVENTORY OF HISTORIC RESOURCES AS A
MASTER LIST RESOURCE (HIST-0337-2022)
15 Recommendation:

As recommended by the Cultural Heritage Committee, adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property located at 1421 Garden Street to the Master List of Historic Resources as ‘The D.M. and Carrie Proper Meredith House’."

5.d. AWARD CONSTRUCTION CONTRACT FOR CITY HALL MEETING

ROOM TENANT IMPROVEMENTS, SPECIFICATION NUMBER
1000055
73 Recommendation:

Award a Construction Contract to Quincon, Inc. in the amount of $330,280 for the City Hall Meeting Room Tenant
Improvement, Specification No. 1000055; and

1. Appropriate $160,000 from the Capital Projects Reserve Fund to the project account (1000055); and

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

3. Adopt a Draft Resolution 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 City Hall Meeting Room Tenant Improvement Specification Number
1000055.”

4. 5.e. AUTHORIZATION TO ADVERTISE A REQUEST FOR

QUALIFICATIONS FOR ON-CALL SCANNING SERVICES
89 Recommendation:

Approve the Request for Qualifications (RFQ) to provide scanning services; and

1. Authorize the City Manager to execute agreements with selected consulting firms; and

2. Authorize the Finance Director to execute and amend Purchase Orders for individual consultant services contract in an amount not-to-exceed the authorized project budget; and

3. Authorize the Community Development Director to amend or extend the agreement for services in accordance with its terms and conditions, and within the available annual budget.

4. 5.f. ADOPT A SUPPLEMENTAL SALARY SCHEDULE REFLECTING 2023

MINIMUM WAGE INCREASES
111
Recommendation:

Adopt a modified Supplemental Employee Salary Schedule as necessary to comply with Senate Bill No. 3, Chapter 4, an act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor, requiring a minimum wage of $15.50 per hour effective December 22, 2022.

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a. FY 2021-22 UNAUDITED YEAR-END REPORT AND REVIEW OF THE 2023-25 FINANCIAL PLAN CALENDAR (Estimated Time: 60 minutes) 125
Recommendation:

Receive and file the FY 2021-22 Year-End Budget Report and unaudited year-end results; and

1. Adopt a Draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving amendments to the 2022-23 Budget Appropriations"; and

2. Receive and discuss the 2023-25 Financial Plan calendar in preparation for the 2023-25 goal-setting process.

3. 6.b. INTRODUCE AN ORDINANCE TO AMEND CHAPTER 13.12 OF THE

MUNICIPAL CODE TO ADD AN UNDERGROUNDING DISTRICT

COMPRISING THE LIMITS OF THE PRADO BRIDGE REPLACEMENT

PROJECT AND ADOPT A RESOLUTION APPROVING THE

MITIGATED NEGATIVE DECLARATION FOR THE PROJECT
227
Recommendation:

Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 13.12.040 of the San Luis Obispo Municipal Code to Establish a New Underground Utility District 16”; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Mitigated Negative Declaration for the Prado Bridge
Replacement Project” adopting the final Initial Study – Mitigated Negative Declaration (IS-MND).

2. 7. 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)

8. ADJOURNMENT
The next Regular Meeting of the City Council will be held on October 18, 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 20, 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 20, 2022 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

2. PLEDGE OF ALLEGIANCE
Council Member Marx led the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a PROCLAMATION - HISPANIC AND LATINX HERITAGE MONTH
Mayor Stewart presented a proclamation declaring September 15 to October 15, 2022 as "Hispanic and Latinx Heritage Month" to Jerry Mihaic and Francisco Ramirez on behalf of the Latino Outreach Council.

3.b PROCLAMATION - DRIVE ELECTRIC WEEK
Mayor Stewart presented a proclamation declaring the week of September 23 to October 2, 2022 as "Drive Electric Week" to Barry Rands on behalf of the SLO Climate Coalition and SLO County Air Pollution Control District.

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:

Jeffery Specht
Julia Waldorf
--End of Public Comment--

5. CONSENT AGENDA
Motion By Council Member Pease
Second By Council Member Marx
To approve Consent Calendar Items 5a to 5g.

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 - SEPTEMBER 6, 2022 COUNCIL MINUTES
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
Adopt Resolution No. 11359 (2022 Series) 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
Adopt Resolution No. 11360 (2022 Series) 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.”; with the correction to remove Tier 5 purchases as outlined in the staff agenda correspondence.

3 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

1. Adopt Resolution No. 11361 (2022 Series) 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.

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

NEW STORMWATER HYDRO-CLEANER TRUCK
Adopt Resolution No. 11362 (2022 Series) 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 HydroCleaning 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

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 Resolution No. 11363 (2022 Series) 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.”

4 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) Mayor Stewart, Vice Mayor Christianson, Council Member Marx and Council Member Shoresman reported they had no ex-parte
communications. Council Member Pease reported she had a meeting with Bob Lucas regarding the proposed project.

Community Development Director Michael Codron and Associate Planner Hannah Hanh provided an in-depth staff report and responded to Council questions.

The Appellant, Hana Novak, provided a presentation on the appeal.

The Applicant, George Petersen, Monterey Street Brewing, LLC, provided additional information on the project.

Public Comments:

Ron Tilley
Kailey Hermann
Gary Havas
Lee Wilkerson
Lee Samways
Bran Ridley
---End of Public Comment---
Motion By Vice Mayor Christianson
Second By Council Member Marx
Adopt Resolution No. 11364 (2022 Series) 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” adding Condition 30 that sound attenuation of some kind be added to the indoor recreation area to ensure compliance with the City's Noise Ordinance.

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

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

PROGRAM AND REGULATIONS UPDATE
This item was continued to a date certain, the October 18, 2022 City Council Meeting.

7. STUDY SESSION

7.a STUDY SESSION: HOMELESSNESS RESPONSE STRATEGIC PLAN (Estimated Time: 90 minutes)
Community Development Director Michael Codron and Homelessness Response Manager Kelsey Nocket provided an in-depth staff report and responded to Council questions.

Public Comments:

Kathy Borland
---End of Public Comment---
ACTION: By consensus, the Council:

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

2. Provided the following concurrence on the strategic vision, proposed outcomes, and outreach and feedback plan for the City’s first Homelessness Response Strategic Plan.
o Definitions where appropriate for clarity
o Indicate direction or targets for outcomes where we can o Provide baselines data
o Make sure all the indicators are aligned with the appropriate City role as discussed which is the County is the primary provider of a lot of these services.

6 o Expansion to the outreach list to include tourism groups, student groups, downtown, service groups underrepresented groups and health groups.
o Incorporate feedback received on the vision statement and get additional feedback as we go through the outreach process. o Add a policy context section.
o Look at the Redondo example and how the Care Courts are going to be handled on the State level.
o Feedback on the regional approach and make sure that is focused on implementing the County plan and that there is funding associated with that we see at the city level.
o Focus on employee training and development so that we can all work as ambassadors for this plan.

8. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart indicated she attended the California Cities Annual Conference September 7 - September 9, paid for by the City.

Council Member Marx indicated she also attended the California Cities Annual Conference. She will be attending the Central Coast Community Energy annual meeting September 21 and September 22.

Council Member Pease and Shoresman also indicated that they attended the California Cities Annual Conference.

9. ADJOURNMENT
The meeting was adjourned at 10:05 p.m. The next Regular City Council Meeting is scheduled for October 4, 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: Community Development
Cost Center: 4003
For Agenda of: 10/4/2022
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Walter Oetzell, Assistant Planner
SUBJECT: REQUEST TO INCLUDE PROPERTY AT 1421 GARDEN STREET IN THE

INVENTORY OF HISTORIC RESOURCES AS A MASTER LIST
RESOURCE (HIST-0337-2022)

RECOMMENDATION
As recommended by the Cultural Heritage Committee, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adding the property located at 1421 Garden Street to the Master List of Historic Resources as ‘The D.M. and Carrie Proper Meredith House’.”

POLICY CONTEXT
The recommended action on this item is supported by historical preservation policies set out in Section 3.0 of the Conservation and Open Space Element of the City’s General Plan, and with procedures and standards for listing of historic resources set out in the City’ s Historic Preservation Ordinance Sections 14.01.060 & 14.01.070.

DISCUSSION
Background
Beau and Jen Narragon, represented by James Papp, have requested that the property at 1421 Garden Street be designated as a Master List Resource in the City’s Inventory of Historic Resources, as The D.M. and Carrie Proper Meredith House, and have provided an evaluation of the property and its eligibility for historic listing (Historical Evaluation, Attachment B), prepared by James Papp, PhD, Historian and Architectural Historian.

On August 22, 2022, the Cultural Heritage Committee considered this request and found that the property meets eligibility criteria for historical listing to a degree that qualifies it for designation as a Master List Resource and recommended that the City Council designate the property as such in the City’s Inventory of Historic Resources.

Item 5c
Site and Setting
The property is on the east side of Garden Street, about 100 feet south of Pismo Street, in the Old Town Historic District, one of the City’s oldest residential neighborhoods, built up historically around the turn of the twentieth century, with older structures dating back to the 1880s. The high concentration of 100-year-old or older residences establishes the District’s predominant architectural and visual character. The District has many examples of High Victorian architecture, including several variations, such as Queen Anne, Italianate, Stick and Gothic Revival influences, along with more modest structures with simpler styles (Neo-classic Row House, Folk Victorian, and Craftsman Bungalow), with many homes borrowing architectural details from several styles. Most of the houses in this district were designed and constructed by the homes’ first occupants or by local builders and were influenced by architectural pattern books of the time period (Historic Preservation Program Guidelines § 5.2.1).

The D.M. and Carrie Proper Meredith House
The evaluation provided by the applicant (Attachment B) notes an April 13, 1883 announcement in the San Luis Obispo Tribune of the completion of a dwelling for David Milton Meredith and his first wife Caroline Proper, and thus uses 1883 as the estimated date of construction, with the building eventually appearing on Sanborn Maps by 1891 (Evaluation, pg. 6). Although D. M. Meredith is described as “co-builder,” no other builder or architect is identified. The building is described as the City’s “most sophisticated and articulated example of Heimatstil architecture of the Krüppelwalmstil or Jerkinhead subtype, which includes a steep roof pitch, deep eaves, and carved open brackets,” with several characteristic features of the building highlighted (Evaluation, pg. 43):
 Jerkinhead gables and dormers
 Notched and roundel-terminated bargeboards
 Roundel-terminated knee brackets and solid horizontal brackets  Singleton, twin, and triplet sash windows with crown molding and drop casings

Item 5c
 Horizontal shiplap siding with vertical siding in the gables  Side entry porch with spindle columns and fretwork
 Front apartment addition from 1924 with its fenestration, eaves, and knee brackets  “H” footprint
Porches were replaced by apartments in the front and rear of the building in the 1920s, with the front addition (but not the rear) replicating the house’s decorative motifs. The house was occupied by D. M. Meredith, with his first wife Caroline Proper, and later his second wife Louise Hardenbergh Meredith, until his death in 1929.

David Milton Meredith
The building at 1421 Garden is associated with its co-builder David Milton Meredith, from its construction until his death in 1929. D. M. Meredith is described as “an early San Luis Obispo leader who influenced the city’s development in education, finance, and religion” (Evaluation, pg. 1):
“… an indefatigable toiler for progress and good governance in San Luis Obispo City and County education and finance. Meredith’s direct influence on education lasted for 35 years, from his appointment as principal of the city’s schools in 1878 to the end of his term on the board of school directors of the newly chartered city in 1913. This included 10 straight years on the County Board of Education and 12 on the Mission School District Board of Trustees.

Meredith’s leadership in local finance was somewhat more brief – 23 years – from his cofounding of the San Luis Obispo Building and Loan Association in 1888 to his resignation as cashier of the Andrews Bank in 1911. Yet these are extraordinarily long years at the forefront of two fields. He then continued his work as a real estate and insurance agent to his eightieth year and after that served till his death as a publicly cited and consulted pioneer of influence, prudence, and rectitude. (Evaluation, pg. 31) The historic significance of D. M. Meredith and his contributions, ranging from appointment as principal of the city’s schools in 1878, service on the County Board of Education, Mission School District Board of Trustees, and the board of City school directors, cofounding of the San Luis Obispo Building and Loan Association, director and cashier of the Andrews Bank, and co-founder of the Baptist Church in San Luis Obispo, are traced in detail from page 31 of the applicant’s Evaluation, with historical context, specifically in the areas of education and banking, provided from pg. 11.

To be eligible for listing as an historic resource, a building must exhibit a high level of historic integrity, be at least 50 years old, and meet one or more of the eligibility criteria described in Section14.01.070 of the Historic Preservation Ordinance (see Attachment C). Those resources that maintain their original or attained historic and architectural character and contribute either by themselves or in conjunction with other structures to the unique or historic character of a neighborhood, district, or to the City as a whole may be designated as a “Contributing List Resource” (SLO MC §14.01.050).

Item 5c
The most unique and important resources and properties in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past may be designated as “Master List Resources.” The applicant’s Historical Evaluation (Attachment B) provides a description of the architectural significance of the house (from pg. 38) and historical significance of David Milton Meredith, in support of designation as a Master List Resource.

Evaluation of Eligibility
Architectural Criteria
“Heimatstil” (Homeland Style) is described as a 19th-Century style based on Swiss and Tyrolean folk architecture, not typically covered in guides to American domestic architecture (Evaluation, pg. 22). It is likewise not among the predominate historical styles described in the City’s Historic Context Statement. The applicant’s Evaluation (from pg. 22) more fully describes the style, its origins, and relationship to “Cottage” designs1 and later transitions to Modernism. As such, this house is architecturally significant as a rare example of the style in the City, as well as a sophisticated and articulated example of it (Evaluation pg. 38), with its period of significance described as spanning from its construction in 1883 to the death of David Milton Meredith.

Historic Criteria
A timeline of the historical context surrounding the building’s period of significance, including contributions and events in the life of David Milton Meredith, is provided from page 3 of the applicant’s Evaluation. As summarized in Section 2.3 of this report, above, D.M. Meredith is described as a person who made significant contributions to the community and to early local history in the areas of education and finance, and this property and the dwelling on it are closely associated with him, as its occupant during its period of significant, satisfying Historic Criteria described in Section 14.01.070(B) of the Historic Preservation Ordinance.

Integrity
The dwelling remains in its original location, and in the discussion of the integrity of its design2the various character-defining elements of the home are discussed, concluding that, notwithstanding subsequent minor additions to the apartment expansions, and other minor details, the buildings and property satisfy the criteria for Integrity set out in §14.01.070(C) of the Historic Preservation Ordinance, noting, in reference to the apartment additions:

The house’s overall design from the latter end of its period of significance, with additions to front and rear, remains, communicating the thrifty but aesthetically respectful character of D. M. Meredith. Its original design of an H-footprint Heimatstil villa with front porch, rising consistently toward the rear, is easily understandable despite the porch’s replacement by a

1 E.g. Myron Angel House (714 Buchon) and Greenfield House (676 Pismo) as Cottage-style examples employing distinctive jerkinhead gables; and the Muscio House (1330 Mill) and Madonna Inn in related Heimatstil subtypes.
2 Historical Evaluation (Attachment B), from pg. 19

Item 5c
slightly wider, deeper apartment. The Heimatstil forms of that apartment reinforce the house’s overall ability to communicate its stylistic significance. (Papp pg. 2)
Conclusion
The information in the Historical Evaluation prepared for this application, documenting the architectural character and integrity of the house, the contributions and life of D.M.

Meredith, and the historical context surrounding the property’s period of significance, provides a basis for the Council to find that the dwelling satisfies Evaluation Criteria for Architectural Style and Design, Historic Criteria, and Integrity described in Section

14.01.070 of the City’s Historic Preservation Ordinance (SLOMC Ch. 14.01) to a degree that qualifies the property for designation as a Master List Historic Resource.

Public Engagement
Public notice of this hearing has been provided to owners and occupants of property near the subject site, and published in a widely circulated local newspaper, and hearing agendas for this meeting have been posted at City Hall, consistent with adopted notification procedures. Public notice was also previously provided for the Cultural Heritage Committee meeting of August 22, 2022.

ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). Inclusion of the subject properties on the City’s Inventory of Historic Resources does not have the potential for causing a significant effect on the environment, and so is covered by the general rule described in Section 15061 (b) (3) of the CEQA Guidelines.

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

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

Total $ $0 $ $0

Item 5c
Adding the properties to the Master List of Historic Resources will have no fiscal impacts.

Historic designation of property itself has no bearing on City fiscal resources. As a Master List Resource, however, each property would be eligible for historic preservation incentives under the “Mills Act” through property tax credits. Any subsequent request to enter into a “Mills Act Contract” with the City would be considered under separate application. A separate fiscal analysis would be reviewed by the City Council should any of the properties be proposed for participation in the Mills Act Program

ALTERNATIVES

1. Decline to designate the property as a Master List Resource in the Inventory of Historic Resources. This decision would be based on finding that the Property is not considered to be sufficiently unique or important, or found to satisfy Evaluation Criteria for listing to a degree warranting such designation. The Property would remain in the Inventory as a Contributing List Resource.

2. Continue consideration of the request for additional information or discussion

ATTACHMENTS
A. – Draft Resolution adding 1421 Garden St. as a Master List Resource B. – Historic Resource Evaluation, 1421 Garden (James Papp, PhD) C. – Evaluation Criteria (Historic Preservation Ordinance)

R ______
RESOLUTION NO. _____ (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADDING THE PROPERTY LOCATED AT 1421

GARDEN STREET TO THE MASTER LIST OF HISTORIC RESOURCES
AS “THE D.M. AND CARRIE PROPER MEREDITH HOUSE”
(HIST-0337-2022)
WHEREAS, the applicants, Beau and Jen Narragon, filed an application on June 24, 2022, for review of the inclusion of the property at 1421 Garden Street on the City’s Master List of Historic Resources; and
WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California on August 22, 2022 and recommended that the City Council add the property at 1421 Garden Street to the Master List of Historic Resources; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing on October 4, 2022 for the purpose of considering the request to add the property to the Inventory of Historic Resources; and
WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation, testimony of the applicant and interested parties, and the evaluation and recommendation presented by staff.

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

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) The subject property is eligible for inclusion in the City’s Inventory of Historic Resources as a Master List Resource because the property satisfies at least one of the evaluation criteria for historic resource listing described in § 14.01.070 of the City’s Historic Preservation Ordinance (HPO), exhibits a high degree of historic integrity, and is more than 50 years old. b) The subject property satisfies Architectural Criteria for Style and Design (§§ 14.01.070 (A)), Historic Criteria for History-Person (§ 14.01.070 (B)), and Criteria for Integrity (§§ 14.01.070 (C)) to a degree that qualifies it for designation as a Master List Historic Resource. The dwelling on the site and its subsequent additions convey a purity of style, exhibit attractiveness through detailing and craftsmanship, and embody a sophisticated and articulated example of Heimatstil architecture of the Krüppelwalmstil or Jerkinhead subtype in a manner that expresses interesting details with notable

Resolution No. _____ (2022 Series) Page 2
R ______
attractiveness. The building and property are associated with David Milton Meredith, an early San Luis Obispo leader who influenced the city’s development in education, finance, and religion. The building occupies its original site, and apart from minor apartment additions from the period of significance, retains a largely unaltered exterior, with its characteristic design and materials.

SECTION 2. Environmental Determination. The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). Inclusion of the subject property on the City’s Inventory of Historic Resources does not have the potential for causing a significant effect on the environment, and so is covered by the general rule described in § 15061 (b) (3) of the CEQA Guidelines.

SECTION 3. Action. The City Council of the City of San Luis Obispo does hereby include the property located at 1421 Garden Street in the Master List of Historic Resources as “The D.M. and Carrie Proper Meredith House.”
Upon motion of ____________________, seconded by ____________________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this 4
th day of October 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

1 The D. M. and Carrie Proper Meredith House • 1421 Garden Street Historic Resource Evaluation and Master List Application Summary Conclusion
The 1883 D. M. and Carrie Proper Meredith House qualifies for San Luis Obispo’s Master List for its long association with an early San Luis Obispo leader who influenced the city’s development in education, finance, and religion. One of the city’s “most unique and important” resources, it would be the first one placed on the Master List for its association with an educator.

It is also the city’s finest embodiment of the Krüppelwalmstil subtype of Heimatstil, or Homeland Style, an influential Central European genre that reached America by the 1840s.

Likely originating in the late-eighteenth- and early-nineteenth-century vogue in France and England for the cottage orné and carried back to Central Europe through the Suburban Cottage Movement, Heimatstil would later meld with avant-garde Jugendstil in the transition to Modernism, while in America it contributed to the development of the California Bungalow; the Scandinavification of Solvang; and the creation of San Luis Obispo’s most famous work of architecture, the Madonna Inn.

Iowa-born David Milton Meredith and his first wife Caroline Proper landed at Port San Luis in 1877; he was appointed principal of the city’s schools in 1878; and they likely built the house in 1883, the same year they helped found the local Baptist congregation. The next year the Board of Supervisors appointed D. M. Meredith to the Board of Education, on which he served for ten years. He followed this with twelve years as a Mission School District (City of San Luis Obispo) trustee, during which time he was devoted to the creation of the city’s first district high school, both conceptually and with William H. Weeks’s 1905– 1906 Neoclassical building of Bishop Peak granite (demolished). The year after the high

2 school opened, Meredith laid the foundation stone for the new Baptist Church at Pacific and Osos (extant).

Simultaneously, D. M. Meredith helped found the San Luis Obispo Building and Loan Association in 1888, as its first secretary, and he served as cashier—or second in command—of the Andrews Bank 1898–1904 and 1907–1911, during a period when R. E.

Jack, cashier of the County Bank, set off a countywide bank run that the Andrews Bank managed to withstand, with the result that it preserved financial fluidity in the region.

In 1911 D. M. Meredith was elected to the school board under the new city charter and the following year helped quash the board’s recall, which finally set a precedent against ad hoc community interference in personnel decisions. He ran his insurance, real estate, and rental brokerage till his eightieth year and—outliving his second wife, Louise Hardenbergh— thriftily added rental apartments to the front and back of his own house, whereupon he settled into the role of elder statesman. He died at home at the age of eighty-six.

The Meredith House maintains the integrity of location, design, setting, materials, workmanship, feeling, and association to communicate its significance as the house of pioneer educator, financier, and religious leader D. M. Meredith, retaining the alterations he made during his and its period of significance. As the façade alterations were made within the characteristics of Heimatstil, it also retains its ability to communicate its architectural significance.

Submitted on behalf of Beau and Jennifer Narragon, 1421 Garden Street, by James Papp, PhD, Historian and Architectural Historian, Secretary of the Interior Professional Qualification Standards
7 June 2022

3 Contents
Summary Conclusion 1
Timeline 4
Historic Context 11
Education 11
Banking 17
Architectural Historic Context: Heimatstil 22
Historiographic Context: Old Town Historic District 1983 and 1987 Surveys 28 Definition: “Associated with the lives of persons significant in our past” 30 Historic Significance of David Milton Meredith 31
City education in chaos 31
Meredith as organization man 33
The quest to build a high school 35
The struggle for normalcy 36
The role of pioneer 36
Architectural Significance of the D. M. and Carrie Proper Meredith House 38 Period of Significance and Character-Defining Features 43 Integrity 44
Conclusion` 46

4 Timeline
1844 June 17 David Milton Meredith is born in Iowa, the third son of a laborer (in the 1850 census) who later becomes a farmer (in the 1860 census). 1 1860 The US Census shows D. M. Meredith at sixteen working on his father’s farm.
1867 Under State Superintendent of Public Instruction John Swett, California introduces free public education for all children.
1868 The Lee County Gazeteer lists Meredith as a clerk in Keokuk, Iowa, on the Mississippi River by the Missouri border.
1870 July 13 Meredith marries Caroline May (Carrie) Proper in Van Buren County, Iowa, home of his family’s farm.
1874 The Republicans having run in 1871 on a platform of compulsory education, “that the safety and perpetuity of republican institutions depend mainly upon popular education and intelligence,” California mandates compulsory instruction for children age 8–14 and guarantees aid based on the number of children in each district.
1876 The school census shows 582 children between 5 and 17 in San Luis Obispo’s Mission School District, with 370 attending public school, 41 private school, and 160 non-attendants. An additional 10 Chinese children and one Indian child appear to be excluded from attendance.2 1877 Aug. The Merediths sail into Port San Luis; D. M. Meredith subsequently teaches school at Lompoc, Bear Canyon, and Las Cruces (“Pioneer of City”). 1878 July 25 The Merediths’ first child, Lewis M., dies three days after birth, delaying his father’s move from Lompoc to San Luis Obispo to take up his new position as principal of the city’s schools.
3 Aug. D. M. Meredith moves to San Luis as the new principal of the city’s Mission School District, comprising the Mission School on Nipomo Street (where Emerson Park is now) and new Court School on Santa Rosa and Mill. There are five other teachers and 252 students in three grades. Meredith teaches the forty-one students of the first grade.4
Dec. 21 Announces his “first-class private school during the winter months,” enquiries at the Court School.5

1. “Pioneer of City Dies at Local Home,” San Luis Obispo Daily Telegram, 26 Oct. 1929, p. 1; US Census 1850, 1860, Van Buren County, IA.

2. “School Census,” weekly San Luis Obispo Tribune, 1 July 1876, p. 4; J. M. Felts, “Our Public Schools,” weekly San Luis Obispo Tribune, 28 Apr. 1877, p. 4.

3. Gravestone, Lompoc Evergreen Cemetery.

4. Weekly San Luis Obispo Tribune: “Personals,” 3 Aug. 1878, p. 1; “Mr. Meredith,” 17 Aug. 1878, p. 1.

5. Weekly San Luis Obispo Tribune, p. 5.

5 1879 March The Mission School District Board of Trustees reappoint Meredith as principal for the ensuing year.6
June 11 W. M. Armstrong, teacher of the Hope School District east of San Luis, files suit against the Mission District Board of Trustees and the county superintendent, calling for the trustees’ removal over a misallocation of funds that kept the district from going from six months to eight months per year.7
June 17 Meredith is elected vice-president of the County Teachers’ Institute and Armstrong its secretary.
8 July The three Mission District trustees, now with two newly elected members, reappoint Meredith as teacher but appoint J. W. Stringfield, previously the teacher for the county’s East Santa Fe School, as principal.9 Aug. Stringfield is nominated as the Republican candidate for county school superintendent, but J. F. Beckett is chosen.10
Nov. Announcing that Meredith will conduct a private school in his public classroom during the winter break, the Tribune opines, “Mr. Meredith is one of the most popular instructors who has ever been engaged in our public schools.”11
Dec. Stringfield defends a teacher from an angry mother who threatens him with her influence on one of the members of the board of trustees. He resigns under pressure from a threat by the trustee to boycott the schools and takes charge of the Guadalupe school for the next two-and-a-half years.
12 He is replaced by C. H. Woods, who in November ran unsuccessfully for superintendent of County Schools on the Workingmen’s and New Constitution Party ticket.
13 Carrie Meredith gives birth to a daughter, California May. 1880 Feb. D. M. Meredith purchases a lot running from Chorro to Garden Street for $575 from I. L. Wilson.14
May C. H. Woods is appointed to the County Board of Education by the Board of Supervisors.
15 6. “In another column,” weekly San Luis Obispo Tribune, 22 Mar. 1879, p. 5.

7. “School Troubles,” weekly San Luis Obispo Tribune, 14 June 1879, p. 1.

8. “Teachers’ Institute,” weekly San Luis Obispo Tribune, 21 June 1879, p. 1.

9. “Our Schools,” 12 July 1879, p. 8, and 19 July 1879, p. 8, weekly San Luis Obispo Tribune.

10. “Republican Convention,” weekly San Luis Obispo Tribune, 8 Aug. 1879, p. 1.

11. “Mr. D. M. Meredith,” weekly San Luis Obispo Tribune, 29 Nov. 1879, p. 5.

12. J. W. Stringfield, “Mr. Stringfield Resigns,” weekly San Luis Obispo Tribune, 6 Dec. 1879, p. 8; “Guadalupe and Vicinity,” Santa Barbara Daily Independent, 13 June 1883, p. 4.

13. “Mr. C. H. Woods of Cambria,” weekly San Luis Obispo Tribune, 20 Dec. 1879, p. 1.

14. “Real Estate Transactions,” Weekly San Luis Obispo Tribune, 28 Feb. 1880, p. 5.

15. “Our Schools,” weekly San Luis Obispo Tribune, 8 May 1880, p. 8.

6 1881 Oct. D. M. Meredith becomes superintendent of the Juvenile Temperance Society at the Garden Street Methodist Episcopal Church (i.e., the ME Church that had not countenanced slavery before the Civil War; the ME Church South, which had, meets on Mill and Toro Streets).16
1883 Apr. 13 The Tribune announces the completion of Meredith’s “neat and comfortable dwelling … . The ability of a schoolteacher to own a dwelling speaks well for the teacher and shows the liberality of the people of San Luis.”17 Though the 1888 Sanborn Map does not show a house at 1421 Garden Street, the 1891 map does, and a structure appears in the location in a circa 1887 panoramic photograph from Cerro San Luis. Lack of any subsequent press mention of the Merediths building a house suggests this is the Garden Street house.

Apr. 29 Meredith takes the topic of school government in the annual Teachers’ Institute.18
July 14 For the second year in a row, trustees of Mission District are unable to decide on a principal. They agree on Meredith as vice-principal.19 Oct. 20 Meredith is one of the founders of the Baptist Church in San Luis Obispo.20 Dec. 26 Carrie Meredith gives birth to a son, Carl DeWitt. 1884 Apr. 14 D. M. Meredith finishes a distant second of three candidates for city clerk.21 May 5 The County Board of Supervisors appoints Meredith to the Board of Education.22
1885 July Meredith is elected president of the County Board of Education.23 1886 Nov. Runs as the Republican candidate for county auditor but comes in a close second.24
Dec. 15 Carrie Proper Meredith dies.25
Dec. 17 The Tribune announces that Meredith has become a real estate agent with Loomis and Ortega.26

16. “J. W. Webb,” daily San Luis Obispo Tribune, 22 Oct. 1881, p. 1.

17. “Improvements,” p. 2.

18. “Educational Notes,” daily San Luis Obispo Tribune, 29 Apr. 1883, p. 3.

19. “San Luis Obispo, July 14th, 1883,” weekly San Luis Obispo Tribune, 20 July 1883, p. 7.

20. “For God’s Work,” weekly San Luis Obispo Tribune, 29 Nov. 1907, p. 1.

21. “City Election,” weekly San Luis Obispo Tribune, 18 Apr. 1884, p. 1.

22. “Board of Supervisors,” weekly San Luis Obispo Tribune, 30 May 1884, p. 3.

23. “Personal,” weekly San Luis Obispo Tribune, 24 July 1885, p. 5.

24. “Official Returns,” weekly San Luis Obispo Tribune, 12 Nov. 1886, p. 1.

25. Findagrave.com.

26. “Personal,” weekly San Luis Obispo Tribune, 17 Dec. 1886, p. 5.

7 1888 Mar. D. M. Meredith becomes the founding secretary of the San Luis Obispo Building and Loan Association, with William Sandercock the founding president.27 The association flourishes into the 1960s.

June The Board of Supervisors reappoints Meredith to the Board of Education.28 1889 Jan. 31 The daily Tribune describes Meredith as teaching school in the Cuesta district.29
Feb. Meredith builds a Queen
Anne wash house and
opium joint on Broad Street.

Right: Items from the daily
San Luis Obispo Tribune, 10
Feb. 1889, p. 3. Unlike most
Californians, Meredith didn’t
discriminate against the
Chinese.
1890 Teaches Belleview school.30
Jan. 9 The daily Tribune announces that D. M. Meredith will be in charge of the new schoolhouse in the Hope district (p. 3).

June 3 The Board of Supervisors reappoints Meredith to the Board of Education in response to a petition “signed by a large number of prominent citizens.”31 Sep. Meredith runs as the Republican candidate for County Superintendent of Schools but loses by 156 votes out of 2,678 cast (47 to 53 percent). 32 1892 Aug. Under new California legislation, San Luis Obispo’s Mission School District starts a new union high school, in the Agricultural Pavilion at Monterey and Toro, with twelve other tiny school districts surrounding it.

Dec. Meredith advertises real estate under the name D. M. Meredith & Co. 1893 The New Society Blue Book, California edition lists D. M. Meredith & Co. as a real estate and insurance agent with office on Chorro Street.

June Meredith is reappointed to the Board of Education for a one-year term.33 1894 Ends ten years on the County Board of Education.

27. “25th Anniversary SLO B&L Ass’n,” weekly San Luis Obispo Tribune, 25 Jan. 1913, p. 1.

28. “Educational,” daily San Luis Obispo Tribune, 13 June 1888, p. 1.

29. “Real and Personal,” daily San Luis Obispo Tribune, p. 2.

30. “Old Glory Waves,” daily San Luis Obispo Tribune, 1 Aug. 1897, p. 3.

31. “Board of Supervisors,” daily San Luis Obispo Tribune, 4 June 1890, p. 3.

32. “Within Walls of Old Fort,” weekly San Luis Obispo Tribune, 23 Apr. 1915, p.1; “Official Returns of the Vote of San Luis Obispo County,” daily San Luis Obispo Tribune, 6 Nov. 1890, p. 3.

33. Arroyo Grande Herald, 10 June 1893, p. 1.

8 Jan. 2 J. P. Andrews forms the Andrews Banking Company.34 June The San Luis Obispo Union High School fails for lack of funding. 1895 June 7 Meredith is elected trustee of the Mission School District of San Luis Obispo.35
July 5 San Luis Obispo electors vote for a Mission District high school.36 July 18 Meredith, trustee Loobliner, and County Superintendent Messer announce a new San Luis Obispo High School.37 It will be housed in one room of the Court School at Santa Rosa and Mill.
1896 June 5 Meredith runs unopposed for a full three-year term as Mission School District trustee.38
1897 Mar. 24 In Los Angeles marries Louise Hardenbergh of Grand Falls, NY.39 Sep. 25 Meredith and the other Mission District trustees, McD. R. Venable and H.

Loobliner, petition for the closure of the houses of ill fame at Palm and Morro.40
1898 Jan. Meredith is elected a director and the cashier of the Andrews Bank.41 1899 June 2 Re-elected to three-year term as school trustee with 80 percent of vote.42 1902 June 6 Runs unopposed for school trustee and elected unanimously.43 1904 Mar. 17 Meredith, Louis Sinsheimer, and J. L. Anderson elected to auditing committee of SLO Building and Loan Association.44
Nov. 1 Meredith resigns as cashier of Andrews Bank.45
1905 Jan. 7 The Tribune announces that Meredith has gone into the real estate business.46
1905 Apr. 7 Meredith is re-elected to Mission District board of trustees against future mayor Dr. W. M. Stover by 110 votes to 98.47 The upcoming bond for the high school is one of the issues.
1906 William H. Weeks’s high school is completed.

34. “Statement,” daily San Luis Obispo Tribune, 7 July 1894, p. 2.

35. “School Trustees,” Daily San Luis Obispo Tribune, 8 June 1895, p. 3.

36. “High School–Yes,” daily San Luis Obispo Tribune, 6 July 1895, p. 2.

37. “San Luis High School,” Daily San Luis Obispo Tribune, 19 July 1895, p. 1.

38. “Twenty-Three Majority,” daily San Luis Obispo Tribune, 6 June 1896, p. 3.

39. California State Marriage License.

40. “To Abate a Nuisance,” daily San Luis Obispo Tribune, 25 Sep. 1897, p. 4.

41. “Directors and Officers Elected,” daily San Luis Obispo Tribune, 6 Jan. 1898, p. 2.

42. “Meredith Wins Out,” daily San Luis Obispo Tribune, 3 June 1899, p. 1.

43. “Only Twenty-One Votes,” daily San Luis Obispo Tribune, 7 June 1902, p. 1.

44. “Regular Annual Meeting,” daily San Luis Obispo Tribune, 18 Mar. 1904, p. 4.

45. “Cashier Meredith Resigns,” daily San Luis Obispo Tribune, 21 Oct. 1904, p. 4.

46. “Personal Mention,” p. 4.

47. “Meredith Is Re-Elected,” Morning Tribune, 8 Apr. 1905, p. 1.

9 1907 Jan. Meredith returns as a director, secretary to the board, and cashier of the Andrews Bank, with J. P. Andrews president.
48 Oct. Resigns from school board of trustees “owing to his many other duties.”49 Nov. 27 Lays the foundation stone for the new Baptist Church at Pacific and Osos, as one of three members of the founding congregation still alive and resident in San Luis (“For God’s Work”).
1911 Jan. Resigns as cashier of the Andrews Bank after eleven years in two periods, being replaced by George Andrews, J. P.’s son.
50 Apr. Runs for board of school directors under the new San Luis Obispo city charter and wins.
51 Oct. Opens a real estate partnership with R. A. Minor.52 1912 July 26 The sixty-eight-year-old Meredith, while riding with Mrs. Meredith south of town, chases a bobcat and captures it with his buggy whip, trussing it and bringing it back to town.53
July “Women of San Luis Obispo” submit a recall petition of 1,500 names against the five male school directors, including Meredith, over the city school superintendent, Mr. Small. The school directors refuse to resign.54 The city council rejects the petition, and the subsequent “mass meeting” is “slimly attended.”55
1913 Apr. Meredith finishes his term as school director and does not run again.56 The Andrews family sells its bank to the Commercial Bank (“Andrews Banking Cp. No More”).
1917 Oct. Meredith, who has advertised the forty-acre Andrews property as a possible city park, sells it to Cholame rancher Edward Henry Meinecke.57 In 1927, five acres of that will be subdivided into the second phase of the racially restricted Mount Pleasanton Square.58
1920 Apr. 21 D. M. Meredith’s second wife, Louise Hardenbergh Meredith, dies.59

48. “Andrews Banking Co.,” Morning Tribune, 10 Feb. 1907, p. 1.

49. “New School Trustee,” Morning Tribune, 4 Nov. 1907, p. 1.

50. “Social and Personal,” weekly San Luis Obispo Tribune, 6 Jan. 1911, p. .

51. “The City Ticket,” weekly San Luis Obispo Tribune, 4 Apr. 1911, p.1.

52. “New Partnership,” weekly San Luis Obispo Tribune, 24 Oct. 1911, p. 1.

53. “D. M. Meredith Captures Wildcat in Open Road with Buggy Whip and Gives It to a Friend for a Pet,” San Luis Obispo Daily Telegram, 26 July 1912, p. 1.

54. “Petitions Are Filed,” weekly San Luis Obispo Tribune, 19 July 1912, p. 1; “School Board Replies,” “Council Delays Action,” San Luis Obispo Daily Telegram, 6 Aug. 1912, p. 1.

55. “Mass Meeting Was Slimly Attended,” San Luis Obispo Daily Telegram, 2 Sep. 1912, p. 1.

56. “Norton’s Majority 183,” San Luis Obispo Daily Telegram, 8 Apr. 1913, p. 8.

57. “Personals,” weekly San Luis Obispo Tribune, 2 Nov. 1917, p. 2.

58. James Papp, “Master List Application: Elbert Earle Christopher House,” 10 Dec. 2020, p. 2.

59. “Passed On,” weekly San Luis Obispo Tribune, 23 Apr. 1920, p. 2.

10 1922–1924 Meredith continues to come in to his office.60 1923–1924 Continues to advertise real estate and insurance. 1924 Nov. 3 Applies for a permit to build the front addition to his house for a separate apartment.61
1926 June 17 San Luis Obispo’s Baptist Church marks former deacon Meredith’s eightysecond birthday with a banquet, in honor of his being the only man living among the church’s founders.62
1927 With a new high school planned, D. M. Meredith is remembered as trustee when the old one was built.63
1929 June 24 Five-term county supervisor John Norton recalls D. M. Meredith, “a pioneer educator,” as one of “the strongest influences in his career as a youth, urging him toward the leadership he was finally to assume in the civic life of the community.”64
1929 Oct. Meredith dictates letter to Baptist Church recollecting the circumstances of its founding in 1883 (“Pioneer of City”).

Oct. 25 D. M. Meredith dies at his home of nearly half a century at 1421 Garden Street.

60. “Reported Better,” San Luis Obispo Daily Telegram, 5 Dec. 1922, p. 5; “D. M. Meredith,” San Luis Obispo Daily Telegram, 31 Mar. 1924, p. 2.

61. City of San Luis Obispo Historic Permit File, Cal Poly Special Collections.

62. “Reported Better,” San Luis Obispo Daily Telegram, 5 Dec. 1922, p. 5.

63. “City Schools Show Real Progress,” daily San Luis Obispo Tribune, 29 Oct. 1927, sec. 2, p. 1.

64. “Who’s Who in County Offices,” San Luis Obispo Daily Telegram, p. 1.

11 Historic Context
Despite San Luis Obispo’s diminutive size and remote location, in the second half of the nineteenth century and first half of the twentieth century, it was keyed into the latest developments in culture. An indicative if somewhat frivolous example is that Gilbert and Sullivan’s HMS Pinafore premiered in London on 25 May 1878 and was being rehearsed by San Luis’s St. Cecilia Choral Society within a year, on 14 May 1879.65 A number of the city’s buildings have been the first of their kind, though—like the Fremont Theater and Heyd Adobe—they later became targets of demolition by the less appreciative.

Education The State of California imposed standards of educational administration and representation on the County and City of San Luis Obispo, but the county and city were keen, in many instances, to keep up with such national trends as the creation of high schools and polytechnics. The county’s elected school superintendent and appointed members of the Board of Education were often respected local teachers, certainly more often than in modern times.

In contrast, the three-member school district boards of trustees (usually outnumbering in membership the single teacher of a one-room schoolhouse they employed) seem often to have attracted small-time politicians who considered it just another office of power and patronage. In D. M. Meredith’s second year with the city schools, one of the three school trustees, P. S. Finney, had just left the city council and lost an election for mayor, and another, R. E. Jack, was a future member of the council and mayor (or by then—after a reform movement—president of the city’s board of trustees).

Mission School with St. Stephen’s beyond in a detail from Carleton Watkins’ 1876 panoramic photograph of San Luis Obispo from the west. The Nipomo Street School and Emerson School would be built in the same location, now Emerson Park. Courtesy of the Metropolitan Museum of Art.

This politicization of local education had a chaotic effect on school funding, administration, and personnel that Meredith observed first-hand as a principal, vice-principal, and teacher in his early years in San Luis. He would also have observed, especially as a new arrival from Iowa, that California’s racial politics had seeped into local education. In November 1879, during Meredith’s second year with the city schools, one candidate for county school

65. “The regular election,” weekly San Luis Obispo Tribune, 3 May 1879.

12 superintendent, C. H. Woods, “a Dartmouth man … who reflects credit on his alma mater,”66 was running on the Workingmen’s and New Constitution Party ticket, whose raison d’être was virulent anti-Chinese agitation and whose slogan was “The Chinese must go!” The new California constitution it had achieved by popular referendum in May 1879 had numerous anti-Chinese measures, including forbidding governments and corporations from employing Chinese people and allowing municipalities to drive all Chinese from their city limits. (Some of these were ultimately struck down by the State Supreme Court.) Woods was opposed by a Republican-Democratic fusion candidate, J. F. Becket, who, in a high-minded campaign statement referencing Mozart, Napoleon, Daniel Webster, Daniel Boone, Lycurgus, the Spartans, the Norsemen, and Carthage, also declared, “The Chinese must go,” because the presence of so degraded a foreign element is alike detrimental to the morals and industries of the people and dangerous to the perpetuation of free principles. But foreigners other than Mongolians should be encouraged by all suitable means to settle among us … .67 A census of the students of the Mission School District in 1876 showed 571 White boys and girls between age 5 and 17, plus 10 Chinese and 1 Indian, genders unspecified. The Mission District’s students made up about a quarter of the county’s school-age population.68 Given that California’s Chinese population was about 9 percent of the total, the Chinese school age population of 1.7 percent in San Luis Obispo would seem extraordinarily low for it to become a school superintendent campaign issue in any real sense, except for the state’s vast ocean of racism. In fact, the Chinese and Indian children appear to have been excluded from the public and private schools, as the census’s figures of public attendance (370), private attendance (41), and nonattendance (160) falls exactly 11 short of the total schoolage population.

Beckett won in November, but in December Woods was appointed principal of the Mission District. In 1882, California succeeded in getting Congress to pass the federal Chinese Exclusion Act. Meredith’s own feeling’s on the subject can be deduced from the fact that in 1889 he built a Queen Anne structure at Broad and Pacific to house Ung Sing and Company, a Chinese Laundry and “opium joint,” at the height of the of the city’s Anti-Chinese Laundry War, which culminated five years later in the bombing of another Chinese laundry.

The reason a school census was being taken at all was that in 1874, after much controversy, the State of California mandated compulsory instruction for children 8–14 and guaranteed aid based upon the number of children in each district. California made primary education compulsory 22 years after Massachusetts but 44 years before Mississippi. California’s clement winter climate and continuous growing season made a fall-to-spring schooling season less obvious or easily enforceable than in the northeastern states. The progress of compulsory school attendance extended from Massachusetts (1852) to New York (1853), Vermont (1867), New Hampshire, Michigan, and Washington (1871), Connecticut (1872), Nevada (1873), and then Kansas and California (1874).

66. J. F. Beckett and Clara B. Churchill, “Our Schools,” weekly San Luis Obispo Tribune, 26 July 1879, p. 8.

67. J. F. Beckett, “My Creed,” weekly San Luis Obispo Tribune, 16 Aug. 1879, p. 1.

68. “School Census,” weekly San Luis Obispo Tribune, 1 July 1876, p. 4; J. M. Felts, “Our Public Schools,” weekly San Luis Obispo Tribune, 28 Apr. 1877, p. 4.

13 When D. M. Meredith arrived in San Luis, it had just added the Court School at Santa Rosa and Mill Streets to supplement the original one-story, two-room school on Nipomo Street.

These schools taught a 6- rather than 8-month year, with a 4-month winter break, despite the fact that a school year less than 8 months was considered characteristic of the poorer funding of districts with fewer than 25 students.69 Meredith’s response to the situation was to launch a private school within a public school building for the higher and intermediate grades during the 1878–1879 and 1879–1880 breaks. This seems to have been regarded as a positive innovation rather than any kind of conflict of interest.

Court School, Mill Street in foreground, circa 1907. Courtesy of Cal Poly Special Collections.

A more confrontational response came from a June 1879 lawsuit by W. M. Armstrong, the teacher of a neighboring district, who had been engaged by the Mission District teachers (whether including Meredith is unknown) to audit its books. Armstrong’s suit accused the trustees of preventing an eight-month school year by misallocating funds. There is no documentation of success for his suit; it was ruled against him regarding the county superintendent in a separate funding matter, and the Mission trustees seem to have been dropped as defendants, possibly because Armstrong, from a different district, lacked standing.70 The fact that Meredith was not announced to be teaching winter private school after the 1879–1880 year suggests the Mission District worked out its funding problems.

For students, free public education, mandatory attendance, and the extension of the school year were the noticeable late-nineteenth-century reforms. For teachers, state normal schools, annual county teachers’ institutes, and county testing and credentialing loomed large. (San Luis Obispo County endured an answers-for-sale scandal in the credentialing

69. “School Matters,” daily San Luis Obispo Tribune, 9 March 1883, p. 3.

70. Weekly San Luis Obispo Tribune: “School Troubles,” “Why He Prosecutes,” 14 June 1879, p. 1; “Supt. Darke Exonerated,” weekly San Luis Obispo Tribune, 4 Oct. 1879, p. 1

14 examinations during Meredith’s first year.
71) For communities, the last major reform was
the provision of high schools.

County Superintendent F. C. Beckett advocated for a high school in San Luis Obispo, to serve the rest of the county, as early as 1882.72 By 1889 San Luis had something described as a high school, but that year it graduated only one student, Mabel Dunbar.73 A state high school bill was passed in 1891; under the legislation, the many tiny school districts could combine for a union district high school. In 1892 one was proposed for San Luis Obispo. W. M. Armstrong (now county superintendent) advocated for it.74 Thirteen districts voted on it, for a combined 235 votes in favor to 20 against.75 The thirteen agreed to house the new union high school in San Luis Obispo’s Court School, but it ultimately opened in rooms in Hilamon Spencer Laird’s Agricultural Pavilion at Monterey and Toro.76 It soon had an organ, bookcase, library, and Le Conte Literary Society, whose debates were regularly reported on in the Tribune.
77 Cambria Union High School opened at the same
time. Paso Robles, in contrast, voted for its own district high school and passed bonds for a building.

Hilamon Spencer Laird’s Agricultural Pavilion at Monterey and Toro. Built for the district fair, it housed many different institutions during its existence, including the San Luis Obispo Union District High School from 1892 to 1894. Detail of panoramic photograph from Terrace Hill, early 1906 courtesy of Cal Poly Special Collections.

The San Luis Obispo Union High School found itself unable to collect the taxes it levied and ran out of funding after two years, finding just enough money to limp to the end of term in June 1894.78 At this point not only Cambria but Arroyo Grande had a union high school. It

71. “The School Fraud,” daily San Luis Obispo Tribune, 7 Dec. 1878, p. 1.

72. F. C. Becket, ed., “School Notes,” weekly San Luis Obispo Tribune, 4 Aug. 1882, p. 8.

73. “The Mission schools,” daily San Luis Obispo Tribune, 5 June 1889, p. 3.

74. W. M. Armstrong, “The High School,” daily San Luis Obispo Tribune, 26 Jan. 1892, p. 3.

75. “High School Election,” daily San Luis Obispo Tribune, 10 Feb. 1892, p. 3.

76. “Higher Education,” daily San Luis Obispo Tribune, 21 Feb. 1892, p. 5.

77. “Union High School,” daily San Luis Obispo Tribune, 17 July 1892, p. 3.

78. “It Will Continue,” daily San Luis Obispo Tribune, 6 June 1894, p. 3.

15 must have been a huge embarrassment for San Luis Obispo—as the county’s seat and largest town, and only a month after the Southern Pacific, following a great civic campaign to assemble railroad right-of-way, finally steamed in from San Francisco—to lose its high school. A suit that was filed against the high school tax levy was finally decided against the plaintiffs at the State Supreme Court a year after the high school closed.79 But a month before that decision, on 5 July 1895, the electors of San Luis voted for a Mission District high school by 127 to “a woeful” 14.80 A month before that, D. M. Meredith had been elected and H. Loobliner re-elected to the board of trustees as continuity candidates, the idea having become “prevalent” that the rival candidates, John Barneberg and E. C. Ivens, “meant opposition to the present management of the schools.”81 By late July, Loobliner and Meredith were meeting with the county superintendent to announce the new district high school, but for the underfunded district it was to be done on the cheap. It purchased the effects of the old San Luis Obispo Union High School for $250 and moved them into a room at the Court School.
82 Nipomo Street School, built circa 1880, with its wider rear annex, built circa 1896.

Photograph by L. M. Fitzhugh, Fire Department’s Souvenir of San Luis Obispo, 1904.

The district that, in 1876, had two school buildings and 582 children between 5 and 17, now, two decades later, had two school buildings but 1136 children—plus a high school of

79. “Affirmed by the Supreme Court,” Daily San Luis Obispo Tribune, 6 Aug 1895, p 2.

80. “High School–Yes,” daily San Luis Obispo Tribune, 6 July 1895, p. 2.

81. “School Trustees,” daily San Luis Obispo Tribune, 8 June 1895, p. 3.

82. “Board of Supervisors,” daily San Luis Obispo Tribune, 7 Aug. 1895, p. 2.

16 54 students housed in a single classroom (not the most populous classroom, at that; another one had 90 students under one teacher).83 Meredith and his fellow trustees succeeded in getting the voters to pass $6,000 in bonds for an annex to the brick Colonial Revival Mission School on Nipomo Street in May 1896,84 but with the country in the depths of an agricultural depression and the population of San Luis Obispo static, despite the new railroad line from San Francisco, a purpose-built high school would be a decade off. The 1904 Fire Department Souvenir of San Luis Obispo labels a photo of the Court School as the High School, so after the annex was constructed on the Nipomo Street School, presumably the upper grades were concentrated at Santa Rosa and Mill.

William Weeks’s 1905–1906 Neoclassical Bishop Peak granite Mission High School. Weeks was chosen in 1902 to be the architect of the first two Cal Poly buildings (one residential, one classroom and administrative) and in 1906 as architect for its third building, all in Mission Revival and stucco. Courtesy Cal Poly Special Collections.

Four factors seem finally to have brought William H. Weeks’s grand high school building to fruition:
• the SP’s completion of the Los Angeles connection in 1901, which put San Luis in the middle of a continuous coastal line
• a boom in town population, rising 71 percent, from 3,021 to 5,157 between the 1900 and 1910 US Census
• the end of the agricultural depression
• a 1902 change to the California Constitution allowing the legislature to levy state taxes to support high schools and technical schools, where previously state funding was limited to

83. “Board of Supervisors,” daily San Luis Obispo Tribune, 7 Aug. 1895, p. 2.

84. “Proposals for construction of an addition to Mission School House,” advertisement, daily San Luis Obispo Tribune, 25 June 1896, p. 2. The front page of the 24 May 1896 Tribune announcing the results of the election is missing.

17 primary and grammar schools.
85 This also allowed the creation of Cal Poly as a technical high school.

A fifth factor was certainly D. M. Meredith’s stick-to-it-iveness, as the only Mission District trustee to serve from the vote to create a district high school through the high school’s completion more than a decade later, passing two bond issues for school construction during that time, among many competing bond issues for the growing town.

Banking Infrastructure comes in many forms, but little of the physical kind is possible without the financial kind to transfer funds for workers and materials and to direct investment. In California, the introduction of American rule—and the coincident huge production of gold and the huge investments in gold production, in the extraction of other commodities, and in the creation of industries and the means of transport and communications—moved the region precipitously from a backwater barter economy to a central monetary one.

San Luis Obispo County, however—whose major industry, cattle raising, remained for two decades the same as in Spanish and Mexican days—persisted as a financial backwater for those two decades, until Chauncy Phillips and Horatio Warden formed its first bank in December 1871.

Chauncey Hatch Phillips, seven years older than David Milton Meredith, was, like him, the son of Midwestern farmers, and, like him, came to rural California as a schoolteacher, though thirteen years earlier. Within a year, according to Myron Angel—who clearly had the account from his subject—Phillips had gone from a Napa schoolteacher to an apprentice in the powerful Chancellor Hartson’s law office to deputy clerk of Napa County to chief deputy collector of Internal Revenue in the Fifth District. Within five years he was deputy collector at the Second District in San Jose and then running the First District’s San Francisco office with $5 million in annual receipts.86
Except contemporary evidence suggests little of this was true. Phillips did work in the Fifth District, but as one of the gaugers, inspecting alcoholic spirits, and though he was indeed appointed deputy collector in the Second District in April 1870, he was still there, not in San Francisco, in late July 1871, just before he came to San Luis. 87 In 1869 he ran for Napa
County Treasurer and came in third out four candidates in the Republican primary, despite (or because of) being highly spoken of by a local Democratic paper. 88 People with spectacular success elsewhere did not, by and large, come to San Luis. But no one who did come seems to have seriously questioned anyone else’s creation myth. There is no question Phillips achieved a great deal in San Luis Obispo County, as a banker and especially as a developer of new towns, including Cayucos and Templeton. In property development, a penchant for “exaggeration” doubtless helped.

85. “Taxation for School Purposes,” San Francisco Chronicle, 21 Sep. 1902, p. 10.

86. Myron Angel, “C. H. Phillips,” History of San Luis Obispo County (Berkeley: Howell-North, 1966), after p. 60.

87. “Political Intelligence,” Daily Alta California, 1 Oct. 1868, p. 1; “The Collectorship,” San Jose Daily Mercury, 7 Apr. 1870, p. 3; San Jose Election District, 1871, No. 2, p. 115.

88. “The Napa County Primary Election,” Sacramento Daily Union, 3 Aug. 1869, p. 2.

18 Horatio Moore Warden removed from Ohio to Hangtown, now Placerville, in 1850, according to Angel: mined gold, ran stagecoaches, and later farmed in Napa (after p. 72), where he may have known or known of Phillips. He moved to San Luis Obispo County in 1868 to raise sheep. His would appear to have been the capital and Phillips’ the financial acumen in the Bank of Warden and Phillips.

A check made out by R. E. Jack on a torn scrap of paper for $24 to “Spaniard or bearer,” Messrs Warden and Philips (sic), June 1873. Jack Family Papers, Cal Poly Special Collections.

In October 1873, two years after they formed the bank, Warden and Phillips transformed it into the Bank of San Luis Obispo, incorporated with $200,000 capital stock, the additional capital coming from the Steele brothers, Gen. Patrick Washington Murphy, John Harford, William Beebee, I. G. Wickersham, J. P. Andrews, and a few others: all substantial ranchers and merchants of the area (Angel, after p. 60). Warden was president and Phillips cashier.

The bank survived a run in 1875 when rancher R. E. Jack left $18,000 deposited and convinced merchant Nathan Goldtree (Goldbaum) to leave $10,000 in, as well (ibid.). By 1878 (when California began to publish bank information), Phillips had gone into real estate and development, and all of the original stockholders except for Andrews and Beebee were out, with Andrews—who had started in the county as a hog farmer (feeding his hogs dead cattle in the drought of 1864) and had subscribed to $10,000 worth of stock in 1873—now holding the vast majority of stock and the presidency and R. E. Jack serving as cashier.89 Jack was replaced as cashier by 1880, and by 1883 some of the original stockholders, like P. W. Murphy, George Steele, and I. G. Wickersham, seem to have been reintroduced (Angel 361).

In 1884 Jack, the Goldtree brothers, and Sherman Stow (Jack’s brother-in-law and son of W.

W. Stow, the lawyer for the Southern Pacific and Central Pacific and known as the most powerful man in California) founded the Bank of Jack, Goldtree, and Co., at which point

89. “Andrews Died at 12:40 Today,” San Luis Obispo Daily Telegram, 6 Jan. 1914, pp. 1 and 8; James Papp, The Jack House and Garden Handbook (San Luis Obispo: Department of Parks and Recreation, 2017), pp. 74–75.

19 there were three banks in the county, the third being the Farmers’ Bank and Trust Co. (Papp 75).

Jack, Goldtree incorporated as a National Bank in 1887 with the same stockholders, but in 1890 J. P. Andrews sold out his 47 percent of the Bank of San Luis Obispo (“Andrews Died”), leaving I. G. Wickersham as president; deposited $150,000 in the First National Bank of San Luis Obispo; and replaced Jack as president, while Jack replaced Morris Goldtree as cashier (Papp 75). In 1892 the First National Bank of San Luis Obispo reincorporated as a County Bank, with Jack, Isaac and Nathan Goldtree, and William Beebee as the stockholders, with Beebee president and Jack cashier. J. P. Andrews opened his own bank, the Andrews Banking Co., in January 1894 (“Statement”).

The Commercial Bank of San Luis Obispo incorporated in 1888 with Jack’s associate McDowell Reid Venable as president and Andrews’ former banking partner H. M. Warden prominent among the shareholders and directors.

In other words, the banking capitalists of San Luis Obispo were a small group who played corporate musical chairs. D. M. Meredith would challenge this obscure hegemony by helping found the San Luis Obispo Building and Loan Association with twenty-six shareholders and at whose meetings borrowers publicly bid for loans.90 The association would survive into the 1960s.

Above: Hilamon Spencer Laird’s Bank of San
Luis Obispo (1877), Monterey and Court.

Right: Laird’s County Bank of San Luis Obispo
(1891), Chorro and Higuera, from a San
Francisco Call article on its 1899 closure.

The cashier of the Andrews Bank from its 1894 founding to 1897 was J. W. Smith, a local carriage dealer and property developer who was simultaneously on the board of the Bank of San Luis Obispo and would later become vice-president of the Commercial Bank. D. M.

90. “100 Years Ago,” San Luis Obispo County Telegram-Tribune, quoting the Daily Republic, 30 Jan. 1988, p. 7.

20 Meredith seems to have been an atypical replacement as cashier—certainly unlike R. E.

Jack, the cashier of the County Bank, who was a high roller, one of the largest landowners in the state and a speculator in railroads and real estate, or W. E. Stewart, cashier of the Bank of San Luis Obispo, a huckstering Higuera Street dry goods merchant and steamship agent until he became cashier after Andrews’ original takeover in 1878. Yet Meredith seems to have suited the conservative and public spirited Andrews, who still lived in his simple (if extended) adobe at the east end of town, had donated the land of the Court House and Court School, and built the second floor of the Andrews Bank Building to be used for a public library.

What Meredith brought to this historical context was caution and rectitude—plus a reputation for them, in banking even more important. When, during the 1898–1899 drought, cashier R. E. Jack placed a flippant notice on the door of the closed County Bank on Friday afternoon that “it was useless to keep the bank running when there was no opportunity to do any business,” he set off a run that resulted in the temporary or permanent failure of six banks in the county. The Commercial Bank closed after fifteen minutes on Saturday, and its president confidently predicted its failure. The Andrews Bank was the only major bank that stayed open Saturday, reopened Monday, and stayed open all subsequent days. Meredith’s only public statement was that he handed depositors their money and they handed it right back, knowing the Andrews Bank was solvent. (The Bank of San Luis Obispo also stayed open but had shrunk to $30,000 in deposits by then.)91 Against its president’s own predictions, the Commercial Bank survived. A substantial number of its stockholders were Swiss-Italian dairymen, rather than the ranchers of earlier banks, and they were more drought-proof. The County Bank also revived, but when the reorganized County Bank failed again in 1905, the Andrews Bank remained. Meredith retired from the cashiership in 1911; Andrews stepped down from the presidency in 1913, having suffered a stroke in spring 1912; and shortly after that the Andrews family sold out, after twenty years, to the Commercial Bank, which had taken over the County Bank’s building at Higuera and Chorro. For John Pinckney Andrews—of the early capitalists who had subscribed to the Bank of San Luis Obispo’s stock in 1873, the last still in the business—this ended a career in banking that started forty-two years earlier. J. P. Andrews died, nearly ninety, at the beginning of 1914.

Though local banks would still open in San Luis Obispo, the future weighed in favor of super-banks like A. P. Giannini’s San Francisco–based Bank of Italy, later the Bank of America. On his first visit to San Luis in 1911, “accompanied by nine prominent businessmen of the northern metropolis,” Giannini had stayed at J. P. Andrews’ Hotel Andrews, bookending a block entirely built by Andrews, with the Andrews Bank at the other end.92 With 24 offices in 18 California cities by 1919, the Bank of Italy entered the San Luis market in 1920, when it took over the Union National Bank.93 The Union National, founded in 1905, was with the Commercial, one of two local banks left in San Luis.94

91. “Three More Banks Close Their Doors,” San Francisco Examiner, 14 Mar. 1899, p. 1.

92. “Prominent Banker Visits,” daily San Luis Obispo Tribune, 7 Sep. 1911, p. 5.

93. “Wealthiest Banking Instituition West of the Mississippi,” advertisement, daily San Luis Obispo Tribune, 5 Sep. 1919, p. 3; “Officials of the Bank of Italy Here,” daily San Luis Obispo Tribune, 11 Nov. 1920, p. 1.

94. “Local Banks Increase More than Half Million in Year,” San Luis Obispo Daily Telegram, 22 Jan. 1920, p. 3.

21 The granite and brick Andrews Bank, built 1893–1894 where the Eagle Hotel and first Andrews Hotel had once stood, before serially being destroyed by fire. The architect of this impressive Richardsonian Romanesque structure—with rare rusticated brick foundation and six of San Luis Obispo’s eight Green Men peering from its capitals—was the same as for the other banks in town: Hilamon Spencer Laird.95

95. “The foundations … have been laid out by the architect, Mr. Laird,” “The Andrews Building,” daily San Luis Obispo Tribune, 24 Sep. 1893, p. 3.

22 Architectural Historic Context: Heimatstil
The D. M. Meredith is built in Heimatstil, or Homeland Style, based on Swiss and Tyrolean folk architecture. Heimatstil was one of the European National Folk Architecture Revival Movements that by the late nineteenth century melded with the Jugendstil in the transition to Modernism. Le Corbusier, arguably architectural Modernism’s founder, did his earliest works in Heimatstil-Jugendstil in his native La Chaux-de-Fonds, Neuchâtel, Switzerland. 96 Le Corbusier’s Heimatstil-Jugendstil Villa Fallet (1905, designed with his teacher René Chapallaz and two other students), Villa Jacquemet (1907), and Villa Stotzer (1907–1908), all in the Krüppelwalmstil (Jerkinhead or hip gable) subtype Heimatstil is not covered in standard guides to American domestic architecture, including Virginia and Lee McAlester’s A Field Guide to American Houses (New York: Knopf, 1984).

The McAlesters were influenced by Vincent Scully’s The Shingle Style and the Stick Style

96. See, for example, Friedhelm Gerecke’s Historismus Jugendstil Heimatstil in Hessen, im Rheinland, und im Westerwald: Das Lebenswerk des Architekten und Denkmalpflegers Ludwig Hofmann (Petersberg: Michael Imhof, 2010)

23 (New Haven: Yale, 1955); Scully—in his discussion of Andrew Jackson Downing’s influential mid-1800s American architectural patterns, regards Heimatstil in America as a sort of cottage Stick with foreign twee (xxxviii, note 44; xl, note 49; and xlvi). As Heimatstil often uses half-timbering and fretwork, it can easily be mistaken for Tudor-inspired Stick.

Yet the “Swiss Cottage” design in Downing’s 1850 The Architecture of Country Houses is definitively Heimatstil: characteristic jerkinhead gables with steep pitch, deep eaves, and carved open brackets—distinct from the chalet-like “bracketed style,” with wide, lowpitched roofs, deep eaves, and solid brackets that Downing described in his 1842 Cottage Residences as “suitable to North America and especially the Southern states” and something out of which “a very ingenious architect might produce an American cottage style.”97 Swiss Cottage from Andrew Jackson
Downing’s The Architecture of Country
Houses (New York: Appleton, 1850), shown
in shingle and clapboard variants
Scully posits that Downing adapted this design from Samuel H. Brooks’s “Cottage in the Swiss Style” in his 1839 Designs for Cottage and Villa Architecture (London: Thomas Kelly).

In 1842, Downing was more interested in establishing an American style than in 1850, when he included not only a “Swiss Cottage” but a “Farm House in the Swiss Manner” and went on to a “Regular Bracketed Cottage” that looked more chalet-like than any of his other designs. This wide-spread, low-pitched chalet roof with deep, shady eaves supported by knee brackets was picked up in the early twentieth century by Greene and Greene, given a Japanese refinement, and became the California Bungalow—what William Randolph Hearst described to Julia Morgan as a “Jappo-Swisso bungalow” when he asked her in 1919 to design him one for San Simeon, before they changed their minds and did Hearst Castle.

In Cottage Residences, Downing experimented with jerkinhead gables in other styles, such as the “Rustic Pointed” (i.e., Gothic), but none combined the steep pitch, deep eaves, and carved open brackets that defined his “Swiss Cottage” in 1850 and the D. M. Meredith House in 1883. In The Architecture of Country Houses, Downing describes a jerkinhead house with deep eaves but flat brackets as “Farm House in the English Rural Style” (Design XVII). Jerkinhead gables are rare but do exist in English rural architecture.

97. (New York: John Wiley and Son, 1873 edition), p. 89.

24 The Master List Myron Angel House at 714 Buchon and Greenfield House at 676 Pismo (ca 1889–1890) are distinguished by jerkinhead gables, but with bracketless shallow eaves, they do not attempt Heimatstil, only Cottage. The Greenfield’s jerkinhead gable, Above: Samuel H. Brooks’s “Cottage in the
Swiss Style” (plate xli) from Designs for
Cottage and Villa Architecture (London:
1839). Top right: Andrew Jackson Downing’s
“A Cottage Villa in the Bracketed Mode as
Designed in Wood” (design v, fig. 40) and
(bottom right) “A Villa in the Italianate Style”
(design vi), Cottage Residences (New York:
1842). Below, left and right, designs xv and ix
from Downing’s The Architecture of
Country Houses (New York: 1850).

25 dramatically sloped shed dormer, and Romanesque entry suggest the influence of Philadelphia architect Frank Furness. San Luis Obispo’s website of Master List Historic Properties accords to the Angel and Greenfield Houses the bizarre descriptors “American Farmhouse” and “Carpenter Gothic Revival with Victorian Stick,” demonstrating modern confusion over what to make of their cottage evocation.

In Central Europe, Heimatstil was bound up in the notion of das Cottage, a German borrowing from the English that communicates an exotic charm absent in the German diminutive das Häuschen (a small house). Das Cottage is marked in das Cottageviertel (Cottage Quarter) of suburban Döbling and Währing on the northwest outskirts of Vienna, shown in the circa 1900 photograph below. The notion of a charming English country house (englische Landhaus in German) and informal English park (angolpark in Hungarian) captured the post-Romantic Central European imagination, even if die Cottage ended up as opulent villas looking Swiss, Italianate, or French, as on the pictured Hasenauerstraße.

Heimatstil coincided with the ability of the middle class to work in urban jobs but live in suburban detached or semi-detached villas and cottages with a countrified air. In Austria and Germany, Heimatstil, a bourgeois reimagining of a rural folk style by a people obsessed with taxonomies, was perceived and described in many aspects: Schweizerstil (Swiss style), Schweizerhausstil (Swiss House style), Tirolerhausstil (Tyrolean House style), Schweizer Holzstil (Swiss Wood style), Fachwerkstil (Half-Timber style), and Laubsägelistil (Fretwork style), etc. The Tyrol had for Austrians the same cultural Ur-quality that Transylvania had for Hungarians, and the Austrians turned to Tyrol as the Hungarians to Transylvania for their national folk revival architecture. (Though a thousand miles apart, Transylvanian and the Tyrolean peasants were both keen on needle spires and jerkinhead gables.) It is plausible that the Anglophile Austrians and Germans borrowed Heimatstil from the English along with the Cottagebewegung, the Suburban Cottage Movement, which itself

26 borrowed from the cottage orné (see Marie Antoinette’s hameau de la Reine at Versaille).

Heimatstil is regarded as a late-nineteenth-century phenomenon in the German-speaking world, whereas already by 1822, the architect P. F. Robinson had published Rural Architecture; or, A Series of Designs for Ornamental Cottages (London: Rodwell and Martin) and advertised it as containing “a Design for a Swiss Cottage” (seen below).98 The low-pitched chalet and the high-pitched jerkinhead structures are, of course, two different Heimatstil subtypes: Chaletstil and Krüppelwalmstil. A third is included by Downing in Cottage Residences as “A Cottage in the Rhine Style” and includes a steeplypitched pavilion-roofed tower and steeply pitched gables with fretwork bargeboards.

In 1957 Alex Madonna and his Beverly Hills architect Louis Gould designed the former’s supermotel with needle spires and wide chalet-like gables, the gables executed with fretwork and half-timbering: Chaletstil, Fachwerkstil, and Laubsägelistil. Madonna then combined these with Ranch House style (including covered walkways for motel rooms) and National Park Service Rustic style (which used up the boulders he was fond of collecting).

Below left: “A Carriage House and Stable in the Rustic Pointed Style” from Cottage Residences, the Gothicism in the high-pitched front gable, vertical siding, and Gothic doors.

Below right: Greenfield House, 676 Pismo (ca 1890), conceived as a rural but not Heimatstil cottage. Jerkinhead gable, long shed dormer, and Romanesque entry are Furness motifs.

98. “Rural Architecture,” advertisement, London Morning Post, 13 May 1822, p. 4.

27 Above: Heimatstil-Jugenstil “country house” in suburban Wrocław, Poland (then Breslau, Prussia), 1906 (demolished), by Deutscher Werkbund architect Hans Poelzig (Karl Scheffler, Moderne Baukunst [Leipzig: Julius Zeitler, 1908]). With jerkinhead gable, long shed dormers, and Romanesque entry, it shares the elements of the Greenfield House, though the dormers, arch, and tile-hung walls are not Heimatstil and may have been borrowed from Frank Furness (whose William Peddle Henszey House, Ardmore, PA, 1881 [demolished], below is distinctly Heimatstil with its jerkinheads, half-timbering and fretwork) and from American Shingle style, which was borrowed in turn from Norman Shaw’s tile-hung mock-Tudors.

28 Historiographic Context: Old Town Historic District 1983 and 1987 Surveys The Contributing List in the Old Town Historic District, to which the D. M. Meredith house was added in 1987, was assembled in two waves segregated by geographic area.

In 1983, 59 properties were added to the Contributing List from the 1400–1500 blocks of Broad, 500–600 blocks of Buchon, 400–600 blocks of Islay, 1400–1500 blocks of Nipomo, and 500–600 blocks of Pismo.
99 The original Master List properties in the Old Town Historic District are similarly concentrated in the same or immediately contiguous areas: on Broad’s 1400 block (4 properties) and 1500 block (4 properties); Buchon’s 700 block (11 properties) and 800 block (4 properties); Islay’s 400 block (3 properties), 500 block (2 properties), and 600 block (4 properties); Nipomo’s 1400 block (3 properties); and Pismo’s 600 block (3). The 1600 block of Morro (3 properties) is an inexplained outlier with two matching Streamline Colonials built in close succession and a nearby gambrel-roof house that seems to have caught someone’s eye.

The Marshall and Stanton Houses, 2 of the 11 Master List houses among 15 total houses on the 700 block of Buchon: “Nob Hill.” The builders of both embezzled to complete their projects.

E. B. Stanton was sentenced to five years in San Quentin; J. C. Naylor skipped town, sold his house to Azorean jeweler Manuel Marshall, self-exiled to Bakersfield, and avoided prison.

Four years later, in 1987, 173 properties were added to the Contributing List in the Old Town Historic District on the 1400–1500 blocks of Beach, 700–1100 blocks of Buchon, 1500–1600 blocks of Chorro, 800–900 blocks of Church, 1400–1500 blocks of Garden, 700–1100 blocks of Islay, 900–1000 blocks of Leff, 1300–1800 blocks of Morro, 1300–1600 blocks of Osos, 700–1100 blocks of Pismo, 1400–1700 blocks of Santa Rosa, and 1400 block of Toro. These were all new areas for the Contributing List. In addition, the 1987 Contributing list revisited the 500–600 blocks of Buchon to add 6 properties, bringing the recent total to 238 Contributing List properties in the Old Town Historic District. No new Master List properties seem to have been added in 1987.

99. In 1987 the 3 Master List properties on the 400 block of Islay were cited as being in the Old Town Historic District and the 5 Contributing List properties were not; currently the 5 Contributing List properties are cited as being in the Old Town Historic and the 3 Master List properties are not; the map in 1987 disincluding the 400 block was probably misdrawn and has never been corrected.

29 The likelihood that an area’s most significant structures will be concentrated on 10 of a historic district’s more than 50 blocks is tiny. More likely this reflects a wealth bias toward the larger and more expensive houses of what was referred to as, circa 1890–1910, “Nob Hill”: 23 Master List properties occupy only four blocks there on Buchon and Broad.

The 1987 wave of Contributing List additions to the Old Town Historic District did not come with a second wave of Master List additions, perhaps because the 1987 wave was not accompanied by the documentation that distinguished the 1983 Master List entries from Contributing List entries: a DPR 523. In fact, every historically listed house should have a DPR 523 or similar documentation, because documentation is a baseline expectation in preservation. A windshield or reconnaissance survey is only the first step, but with the Contributing List it also appears also to have been the last step. 1421 Garden Street was one of the Contributing List properties added in 1987 on the lower slope of “Nob Hill.” It is possible it was never added to the Master List because its style was unfamiliar to the surveyors, or an addition had been made to the front of the building, or most likely it was simply in the wrong place at the wrong time: not on one of the ten privileged blocks of the Old Town Historic District to which the Master List was restricted in 1983.

30 Definition: “Associated with the lives of persons significant in our past” Often owners or even historians are so pleased to have found information about the builder or early occupant of a structure that such a person’s existence, or pursuit of any activity, is taken to be historically significant. The National Register Bulletin How To Apply the National Register Criteria for Evaluation makes clear that “the persons associated with a property must be individually significant within a historic context,” not “a person who is a member of an identifiable profession, class, or social or ethnic group” but someone who “gained importance within his or her profession or group.” Such properties “are usually those associated with a person’s productive life” rather than those “that pre- or post-date an individual’s significant accomplishments.” Under this understanding, an ordinary businessperson, even an ordinary Chinese businessperson, would not be significant, but a Chinese businessperson who had become the leading employer in the county, founded local industries, and made major public works projects possible—like Ah Louis—would be significant. An ordinary businessperson, even an ordinary African American businessperson, would not be historically significant, but the first Black businesspeople to own their own premises in the transition to civil rights in lending—like Frank and Alberta Bell of Tiny Mart—would be. Even a director or president of Cal Poly would not, per se, be historically significant, but the first director, like Leroy Anderson, or the first woman president, like Margaret Chase—both of whose houses survive on the 1300 block of Mill Street, neither of them currently on the Master List— would be.

31 Historic Significance of David Milton Meredith
The D. M. and Carrie Proper Meredith House is one of the City of San Luis Obispo’s “most unique and important” resources for its forty-six-year association with its co-builder and occupant David Milton Meredith, an indefatigable toiler for progress and good governance in San Luis Obispo City and County education and finance. Meredith’s direct influence on education lasted for 35 years, from his appointment as principal of the city’s schools in 1878 to the end of his term on the board of school directors of the newly chartered city in 1913. This included 10 straight years on the County Board of Education and 12 on the Mission School District Board of Trustees.

Meredith’s leadership in local finance was somewhat more brief—23 years—from his cofounding of the San Luis Obispo Building and Loan Association in 1888 to his resignation as cashier of the Andrews Bank in 1911. Yet these are extraordinarily long years at the forefront of two fields. He then continued his work as a real estate and insurance agent to his eightieth year and after that served till his death as a publicly cited and consulted pioneer of influence, prudence, and rectitude.

In San Luis Obispo’s Master Listing precedent, early city and county leaders are considered by default to have had historic significance in the creation and solidification of local institutions. A number of D. M. Meredith’s contributions, however, are quite well defined.

The Tribune’s first “School Troubles” headline, 14 June 1879, over W. M. Armstrong’s lawsuit City education in chaos Meredith’s 1878–1879 year as principal of San Luis Obispo’s two schools was successful enough for the Mission District trustees R. E. Jack, J. B. Hazen, and Dr. W. W. Hays, in March 1879, to extend his principalship for the coming year. By July a new board of Jack, Frank M. Branch, and P. S. Finney had changed its mind and replaced him with J. W. Stringfield, sole teacher of the Santa Fe District’s forty-one students, three miles south of San Luis.
100
It is possible a factor was the lawsuit filed on 11 June 1879 by W. M. Armstrong, teacher of the Hope School District east of San Luis, against the Mission District Board of Trustees and the county superintendent, calling for the trustees’ removal over a misallocation of funds that kept the Mission District going from six months to eight months per year. A

100. J. M. Felts, “Our Public Schools,” weekly San Luis Obispo Tribune, 5 May 1877, p. 1.

32 justification, however, was never published. Armstrong claimed teachers in the Mission District had asked him to audit the books after they failed to get their last paycheck and that they were now afraid of retributive firings from the trustees.101 Whether Meredith was one of those teachers or considered responsible for them is unknown. The court ruled against Armstrong in the case of the superintendent in October, and there is no documentation on what happened to the case against the trustees, but it seems likely to have been dropped from the suit before then, perhaps for a lack of standing by Armstrong.
102
The second, 26 July 1879, over J. H. Burks
Scandal almost immediately ensued under Stringfield’s leadership of the schools, when one of the male teachers, J. H. Burks, whipped a boy for circulating a petition for his dismissal and physically attacking his son when the latter refused to sign it.103 Without the support of the board of trustees, Burks resigned.

Later a mother complained about a female teacher, Stringfield defended the teacher, the mother asserted that she could have Stringfield’s “head” because of her influence with one of the trustees, and the trustee (the newly elected P. S. Finney, a former city councilman who had earlier that year been defeated on the Citizens’ ticket for mayor) accused Stringfield of incompetence and threatened to withdraw his own children from the school.

The other trustees, R. E. Jack and Frank M. Branch, stood by, and Stringfield sent a caustic resignation to the Tribune with this account of the events (Stringfield, op. cit.).

The third, 6 Dec. 1879, over Principal Stringfield’s resignation C. H. Woods of the Cambria School, not Meredith, was chosen to replace Stringfield. Woods had just run (and lost) for county school superintendent on the (anti-Chinese) Workingmen’s and New Constitution Party ticket (the winning candidate of the Republican-Democratic fusion ticket also had a Chinese-exclusion plank in his platform).

The Tribune pessimistically welcomed Woods to the district: “As Mr. Woods is an attentive

101. Weekly San Luis Obispo Tribune, 14 June 1879, p. 1: “School Troubles”; “Why He Prosecutes.” 102. “Supt. Darke Exonerated,” weekly San Luis Obispo Tribune, 4 Oct. 1879, p. 1. 103. “School Troubles,” weekly San Luis Obispo Tribune, 26 July 1879, p. 1; “More School Trouble,” 6 Dec. 1879, p. 4.

33 reader of the Tribune, he has of course been apprised of the pitfalls and unpleasant vicissitudes which are likely to beset his path. It is to be hoped he will prove equal to the occasion. We shall see.”104 At any rate, “School Troubles” became a recurring headline for the Tribune in the coming decades.

Woods served for two-and-a-half years, but then the three Mission School District trustees were unable to decide between him or J. F. Kent as a replacement, despite petitions being circulated among parents and students for Woods. By June of 1883, John L. Raines seems to have taken on the principalship, but then the trustees were unable to decide between Raines and William M. Armstrong—who had sued a previous board of trustees in 1879 and would later be elected county superintendent—for the subsequent year.

In 1883 the trustees did manage to agree, however, on the second in command: D. M.

Meredith as vice-principal.

Meredith as organization man A position as secondary officer or part of a consultative body was where fate and county movers, shakers, and voters consistently placed Meredith. There he thrived, and there he made his significant impact. Losing out on his races for city clerk, county auditor, and county superintendent of schools, he nonetheless kept being reappointed to the County Board of Education for ten years and reelected to the Mission School District Board of Trustees for twelve.

Meredith was also founding secretary of the San Luis Obispo Building and Loan Association and secretary, as well as cashier, of the Andrews Bank, but these were not his only secretaryships: He was periodically chosen secretary of ad hoc groups, such as one to negotiate with the Southern Pacific over reduced schedules following the Panic of 1893, with Tribune publisher Benjamin Brooks as chair.
105 Meredith appears to have been
regarded as a man of probity, reliability, and sound judgment.

Helping found as secretary, with Brooks as
president, the Building and Loan
Assocation, was a particularly important
act. With twenty-six shareholders rather
than the usual half-dozen capitalists, and a
public and transparent bidding process on
loans, the association democratized access
to and profit from capital in the county.

Left: daily Tribune, 16 May 1888, p. 3
The San Luis Obispo Bank crisis of 1899 Probity, reliability, and sound judgment did not belong to R. E. Jack, a Maine ship captain’s son who, largely on the strength of marrying a Hollister heiress at 29, became the cashier of the Bank of San Luis Obispo, the county’s only bank, at 37.
106 At 43 he founded the private bank of Jack, Goldtree, and Co. with the Goldtree (Goldbaum) brothers and his brother-in-law Sherman Stow. Jack, Goldtree was

104. “Mr. C. H. Woods of Cambria,” weekly San Luis Obispo Tribune, 20 Dec. 1879, p. 1. 105. “Citizens Assemble,” daily San Luis Obispo Tribune, 30 Dec. 1896, p. 3. 106. James Papp, The Jack House and Garden Handbook (San Luis Obispo: Department of Parks and Recreation, 2017), pp. 39–40, 78–80.

34 incorporated as a national bank three years later and county bank five years after that.

Seven years on, and with R. E. Jack as its cashier, it failed spectacularly, nearly drawing the rest of the county’s banks down after it, but for the survival of the Andrews Bank, of which D. M. Meredith was cashier.

Three years younger than Jack, and of a much more modest background and fortune, Meredith was also more cautious. When a severe drought in the winter of 1898–1899 undermined the financial state of the county’s finances, the Jack banks did not have sufficient capital to make it through. On the afternoon of Friday, March 10, the day of the County Bank’s annual meeting, cashier R. E. Jack affixed a notice to the bank’s closed door insouciantly claiming there was a surplus on hand to pay all depositors, but “it was useless to keep the bank running when there was no opportunity to do any business.” This statement caused a run on the Commercial Bank the next morning, possibly because of association in the public mind between its president, McDowell Reid Venable, and Jack. The Commercial had to close in fifteen minutes, after the modern-day equivalent of about $300,000 had been withdrawn, but the Andrews Bank, which had ordered extra cash, remained steadfastly open till its regular time of 3 pm and reopened the following Monday.

Jack didn’t get agreement, and everything was not all right Jack’s Bank of Paso Robles kept its doors closed Saturday (and into the following year), but there was a run on Venable’s Citizens Bank of Paso Robles, which managed to stay open Saturday but did not open Monday. The Commercial Bank–associated Bank of Cambria, managed by one of Jack’s in-laws, also closed. The Bank of Templeton, unrelated to any of the others, was ruined. Besides the Andrews Bank, only the venerable Bank of San Luis Obispo, the oldest in the county, was still operating, and it had devolved to an insignificant size with a select clientele.

35 The cashier of the Commercial Bank, after closing Saturday, referred questions to its president, and its president, McD. R. Venable, predicted his bank’s failure and castigated borrowers and depositors. Andrews, meanwhile, claiming to have the money to pay all depositors, said “he had looked for a ‘puff’ to come with another dry season and had prepared for it.”107 Cashier D. M. Meredith was quoted as saying depositors were putting their money back in as soon as they found they could take it out (“Three More Banks Close Their Doors”).

After a scathing report on its finances from the state regulators, the County Bank reopened later in 1899 and the Bank of Paso Robles in 1900, but in late 1900 Jack was indicted for fraud and perjury, after a last-minute transfer of his bank stock to wife Nellie Hollister Jack, in order to protect it from lawsuit. Ultimately the jury acquitted R. E. Jack, at the instruction of Judge Unangst, his friend and mortgagor.

In contrast, D. M. Meredith, a devout and perhaps slightly dull Baptist, never lost the trust of the community or attracted the scrutiny of the law. He resigned the cashiership of the Andrews Bank for a couple of years in late 1904 but came back after school bonds had been voted and the new high school built, and also after the County Bank failed for a second and last time, when the Ramona Hotel—which R. E. Jack appears to have sold to it—burned to the ground, dramatically underinsured. Meredith resigned in 1911 in favor of J. P. Andrews’ son George, who then briefly took over the presidency of the Andrews Banking Company after the elder Andrews’ stroke in 1912 before selling out to the now-recovered Commercial Bank in 1913. J. P. Andrews died at the beginning of 1914.

The quest to build a high school Despite his move into finance, Meredith never lost his interest in education—indeed never moved from the house that he built for his family as a schoolteacher. He served as president and secretary of the County Board of Education and taught at some of the county’s small rural schools while on the board, but it is easier to discern his influence in the three-person Board of Trustees of the Mission School District, where he had served as principle for a single year.

Meredith came onto that board in 1895, a year after the San Luis Obispo Union District High School—housed in the Agricultural Pavilion—had failed, and a month before the city voted to create a district high school, which would more economically be squeezed into the Court School. He resigned from the board twelve years later, just after the magnificent new Neoclassical high school building
designed by William H. Weeks was constructed out of
Bishop Peak granite (in contrast to the rival Polytechnic School’s more numerous but merely stucco Mission
Revival buildings, also designed by Weeks). Weekly Tribune, 3 June 1899 In 1896 Meredith and his fellow trustees got a bond measure passed to expand the Nipomo Street School in the middle of a depression, which allowed the Court School to be designated the San Luis Obispo High School. Newspaper reports show that Meredith was significant booster of the effort to build a new high school, and his fiscal reputation must

107. “It Did Not Open Its Doors,” daily San Luis Obispo Tribune, 14 Mar. 1899, p. 1.

36 have been important when bonds for construction were voted on. Indeed, the rare (and unsuccessful) opposition to his re-election in 1905 by future mayor W. M. Stover was reported by the Morning Tribune as a possible protest vote against the new high school’s bonds (“Meredith Is Re-elected”). But the bonds were passed, and in 1906 Weeks’s magnificent high school opened.

The struggle for normalcy Another significant moment for Meredith came the year after he won election to the new, larger school board of directors under San Luis Obispo’s new city charter in 1911 (after earlier in the year resigning the second time as Andrews Bank cashier). In 1912 a group of district women, unhappy over teacher resignations and dismissals and supported by the Telegram, demanded first the resignation of the superintendent and then, after an investigation by the board absolved him, either the resignation of the entire board or its recall. The board refused to resign and issued a strong counter-statement emphasizing the numerous past controversies over individual teachers and the importance of continuity and of insulating school personnel from popular interference.

A recurrent headline in the Tribune of the 1870s, 1880s, 1890s, and 1900s, these would be, significantly, the last two of “School Trouble”: on the front page of the successor Telegram, 17 June and 5 July 1912
Though its examples of past teachers were, reasonably, taken from recent history, it is easy to discern the influence of Meredith’s institutional memory: school chaos going back to his first years in the Mission School District in the 1870s and 1880s amid parental and trustee vendettas. The board’s response seems to have done the trick, with the City Council rejecting a recall vote—illegally, it would appear, but the mass meeting in response was sparsely attended, and the rebellion petered out. With this final establishment of administrative normalcy, D. M. Meredith stepped down at the end of his term in 1913, thirty-five years after first leading San Luis Obispo’s schools and with twenty-four years of service on the County Board of Education, Mission District Board of Trustees, and San Luis Obispo School Board of Directors.

The role of pioneer By now nearly seventy, Meredith continued his real estate, rental, and insurance practice till he was eighty, even after the death of his second wife in 1920,

37 accomplishing major sales, like the property that ten years later would become phase two of the race-restricted Mount Pleasanton Square but that Meredith had pushed unsuccessfully for a city park. At his retirement, he went into the rental business for himself, adding one apartment in back and one in front to a house he had built on a schoolteacher’s half-year salary, augmented with winter-term private schooling. Thriftily but with respect to Heimatstil aesthetics, Meredith replicated his house’s decorative motifs on the front addition but not on the rear.

San Luis Obispo, in the early twentieth century highly respectful to its nineteenth-century roots, celebrated Meredith for his persistence, frequently referring to his earlier cashiership of the Andrews Bank, noting his contribution to the first high school when its replacement building was planned, and seeking his thoughts and recollections on the Baptist Church, which he served as deacon, of whose founding 1883 congregation he was the last of two members, whose 1895 structure he had helped to be built, and of whose magnificent Carpenter Romanesque 1907 edifice, the last great wood structure to be built in San Luis Obispo, he had laid the foundation stone. His letter to the church on its fortysixth anniversary, quoted shortly thereafter in his obituary, became his last published statement. His obituary headline—“Pioneer of City Dies at Local Home”—noted both the man and his house.

38 Architectural Significance of the D. M. and Carrie Proper Meredith House The Meredith House is architecturally one of the City of San Luis Obispo’s “most unique and important” resources as its most sophisticated and articulated example of Heimatstil architecture of the Krüppelwalmstil or Jerkinhead subtype, which includes a steep roof pitch, deep eaves, and carved open brackets and would become the Jugendstil variant. The Master List Muscio House at 1330 Mill (1909, below) is the finest and best preserved Chaletstil structure (Romilio and Clelia Muscio’s four parents were all Swiss Italian immigrants), and the Madonna Inn (1957–1969) is the most sophisticated amalgam of Heimatstil subtypes and non-Heimatstil types.

Unlike the Muscios and Alex Madonna, the
Merediths seem to have chosen Heimatstil
for fashion rather than national pride. The
house was built with a remarkable seven
jerkinhead gables (perhaps David Milton or
Carrie Meredith was also a Hawthorne
devotee). They comprise one front-facing
gable, two one-and-a-half-story side-facing
gables, two two-story side-facing gables,
and two small dormers set in the bar of the
H-form roof. The effect is a house that rises
subtly from front to back on the cross-axis
to the rising hillside.

The five main gables of the Meredith House
are each lined with a narrow bargeboard
that is notched at crest and sides and
terminated with a roundel. Roundels also
terminate the flat brackets and knee braces.

Vertical siding in the gable crests contrasts
with horizontal shiplap on the main body of
the house.

Above: jerkinhead gable of the street façade
with notched and roundel-terminated
bargeboard and knee brackets. Left: Solid
and open brackets terminated in simpler
roundels support the eaves in an angled view.

39 Right: The 1881 John McMullen House in San
Francisco incorporates one jerkinhead gable
similar to those of the Meredith House but
without the Heimatstil brackets and
surrounded by Queen Anne features: a round
tower, wall shingles, and horseshoe arch
The Meredith House’s triplet, twin, and
singleton sash windows culminate in the
two-story façades, triplet and twin in the
one-and-a-half-story (below). The windows
have crown molding and casings that
extend elegantly below the stool and apron.

Side entry into the bar of the H is provided
by a porch with spindle columns and
fretwork. The total effect is not quite Le
Corbusier, but it is carefully thought out in
its horizontal and vertical rhythms from
details to full structural form.

At one time there were front and rear porches, but these were replaced by D. M. Meredith with apartments in the 1920s. Significantly, the front apartment was provided with singleton front and twinned side windows that match the 1883 windows exactly, down to

40 Meredith House, 1891 Sanborn Map. Oddly, the house does not appear on the 1888 Sanborn, though its construction is recorded in 1883 and it appears indistinctly but where it should be in a circa 1887 panoramic photograph taken from Cerro San Luis, in the History Center collection. The “1½ [stories]” changes to “2” for the rear wing by the 1905 Sanborn, more likely through re-evaluation than raising the roof.
1926 Sanborn Map, after front and rear apartments replaced porches Google satellite view today

41 crown moldings and drop casings. Likewise, knee braces terminated with roundels support the deep eaves of the addition. Clearly in replacing the porch with an income-earning unit, D. M. Meredith was intent on it matching the architectural detail of four decades before.

The front apartment also provides a one-story replacement for the original one-story porch, transitioning to a one-and-a-half-story front wing and two-story rear wing, thus retaining the original massing. In contrast, the rear apartment did not merit matching fenestration or Heimatstil details and did not copy the original back porch’s massing.

The Meredith House is a villa in size and a cottage in reference, much like suburban Heimatstil in Central Europe, which tends to be fairly monumental. The H footprint is a form I have not encountered elsewhere but allows it to make the most of its distinctive deep-eaved and open-bracketed jerkinhead gables. The variation in heights allows for crescendos both vertically and horizontally.

The front apartment is wider than the original porch but of similar height, retaining the stepped effect of one to one-and-a-half to two stories. Whether the original porch had deep eaves and knee brackets is unknown, but the these and the matching fenestration retain stylistic consistency with the main wings of the house in D. M. Meredith’s changes.

The preservation of Heimatstil structures in San Luis Obispo, in both Chaletstil and Krüppelwalmstil subtypes, is not only important in retaining the eclecticism that distinguishes our city as a built environment and as a cultural attraction distinct from the more homogenous Monterey (Greek Revival adobes), Santa Barbara (City Beautiful Spanish, Mission, and Moorish Revival), and Palm Springs (Mid Century Modern), but it helps residents and cultural tourists understand where the Madonna Inn—our one worldfamous landmark—came from. Alex Madonna, descendant of Swiss Italian dairy ranchers, may have had deep feelings of Swiss cultural patriotism, but they were able to be expressed architecturally only because of tradition that started with the cottage orné, developed through the Suburban Cottage and National Folk Architecture Revival Movements into Heimatstil, and became part of the fabric of the San Luis Obispo where Madonna grew up—

42 after the death of his father forced his family from their Chorro Valley ranch. Heimatstil, Ranch House, and National Park Service Rustic (which incorporated the boulders from his highway engineering) combined into a unique agglomeration of structures that, when combined with Phyllis Madonna’s pink paint and fantasy interiors, created a landmark that captured the world’s imagination.

Equally, Scandinavian enthusiasm for Heimatstil resulted in National Folk Architecture Revival Movement there. The first permanent open-air museum of national folk architecture and customs, Skansen, opened on Djurgården Island in Stockholm in 1891, and skansen and skanzen have become generic words for such institutions in various European languages. In Skansen lie the roots of Solvang, and in Heimatstil lie the roots of Skansen. “Tout comprendre c’est tout pardonner”—including ebelskiver.

43 Period of Significance and Character-Defining Features The Meredith House’s period of significance encompasses its 1883 construction and the 1929 death of David Milton Meredith. Therefore the house in its period of significance includes the front and rear additions. Unlike the front addition, however, the rear addition was not constructed to match the design, materials, and workmanship of the 1883 corpus and would not be considered a character-defining feature. The basement fenestration also does not match the main body of the house, though consistent within itself, and does not define the building’s Heimatstil character.

The Heimatstil character-defining features of the Meredith House include • jerkinhead gables and dormers
• notched and roundel-terminated bargeboards
• roundel-terminated knee brackets and solid horizontal brackets • singleton, twin, and triplet sash windows with crown molding and drop casings • horizontal shiplap siding in the main fabric and contrasting vertical siding in the gables • side entry porch with spindle columns and fretwork
• front apartment addition from 1924 with its fenestration, eaves, and knee brackets • H footprint

44 Integrity
The Meredith House’s 1883–1929 period of significance includes the front and rear additions.

Location The Meredith House remains in its original location from 1883 to 1929.

Design The house retains the design of its period of significance apart from a small add-on to the south end of the front apartment, a small add-on to the south end of the rear apartment, and minor details such as metal railings leading to the entry porch. The front apartment door appears original to its era. The windowed door from the side entry porch seems less likely to be original to 1883, but it is not out of the question. A line of four windows on the north side of the rear apartment are of modern construction and plausibly of post-1929 framing and surrounding siding.

The house’s overall design from the latter end of its period of significance, with additions to front and rear, remains, communicating the thrifty but aesthetically respectful character of D. M. Meredith. Its original design of an H-footprint Heimatstil villa with front porch, rising consistently toward the rear, is easily understandable despite the porch’s replacement by a slightly wider, deeper apartment. The Heimatstil forms of that apartment reinforce the house’s overall ability to communicate its stylistic significance.

Setting Meredith was known locally for his gardening, with various references in the contemporary press, and the house is obscured by foliage in panoramic photographs. His gardening, however, did not define his significance and was not a character-defining feature of the property.

The surrounding neighborhood is not greatly changed from the early twentieth century.

The buildings up the hill on the same side—the Craftsman 1425 Garden (by 1914) and E. B.

Stanton House (1904–1905)—predate Meredith’s death. Down the hill is a post-1929 office building but low-built, consistent with the neighborhood. On the other side of the street, 777 Pismo is part and 770 Buchon all turn-of-the-century, with the bungalows in between circa 1920s–1930s and modest in footprint and one-story in height like their predecessor buildings of the early 1900s. The current view of San Luis Obispo’s historically low-built downtown and unbuilt Cerro San Luis is what Meredith would have seen during his lifetime in the house.

Materials With the previously mentioned exception of four modern windows on the rear apartment with dubious surrounding siding, modern iron stair railings, and new roofing, the visible fabric—including siding, decorative features, and fenestration—appears to be original to the period of significance and its various times of construction.

Workmanship As with materials, workmanship is well and consistently preserved.

Feeling Though Downtown has edged a block nearer (Marsh now being business rather than residential), the late-nineteenth-century and early-twentieth-century suburban feeling consistent with the cottage character of Heimatstil remains, comprising mostly lowbuilt single-family houses and single-business buildings and garden foliage.

Association The Meredith House is scarcely changed from D. M. Meredith’s residence in it, and even Carrie Proper Meredith would instantly recognize her house. The thrifty

45 schoolteacher’s house noticed by the Tribune in 1883, and altered to be income-producing during the retirement of D. M. Meredith’s ninth decade, well represents the character and accomplishments of this leading teacher, banker, and Baptist deacon.

46 Conclusion
The D. M. and Carrie Proper Meredith House qualifies for the Master List of Historic Resources as one of the city’s “most unique and important” resources for its historic association with pioneer educator, banker, and religious leader David Milton Meredith, for best embodying Heimatstil architecture of the important Krüppelwalmstil subtype in the City of San Luis Obispo, and for retaining the integrity to communicate its dual historical and architectural significance
.

12 Zoning, or remove the property from historic listing if the structure on the property no longer meets eligibility criteria for listing, following the process for listing set forth herein.

14.01.070. Evaluation Criteria for Historic Resource Listing When determining if a property should be designated as a listed Historic or Cultural Resource, the CHC and City Council shall consider this ordinance and State Historic Preservation Office (“SHPO”) standards. In order to be eligible for designation, the resource shall exhibit a high level of historic integrity, be at least fifty (50) years old (less than 50 if it can be demonstrated that enough time has passed to understand its historical importance) and satisfy at least one of the following criteria:

A. Architectural Criteria: Embodies the distinctive characteristics of a type, period, region, or method of construction, or represents the work of a master, or possesses high artistic values. (1) Style: Describes the form of a building, such as size, structural shape and details within that form (e.g. arrangement of windows and doors, ornamentation, etc.). Building style will be evaluated as a measure of:
a. The relative purity of a traditional style;
b. Rarity of existence at any time in the locale; and/or current rarity although the structure reflects a once popular style;
c. Traditional, vernacular and/or eclectic influences that represent a particular social milieu and period of the community; and/or the uniqueness of hybrid styles and how these styles are put together.
(2) Design: Describes the architectural concept of a structure and the quality of artistic merit and craftsmanship of the individual parts. Reflects how well a particular style or combination of styles are expressed through compatibility and detailing of elements.

Also, suggests degree to which the designer (e.g., carpenter-builder) accurately interpreted and conveyed the style(s). Building design will be evaluated as a measure of:
a. Notable attractiveness with aesthetic appeal because of its artistic merit, details and craftsmanship (even if not necessarily unique);
b. An expression of interesting details and eclecticism among carpenter-builders, although the craftsmanship and artistic quality may not be superior. (3) Architect: Describes the professional (an individual or firm) directly responsible for the building design and plans of the structure. The architect will be evaluated as a reference to:

13 a. A notable architect (e.g., Wright, Morgan), including architects who made significant contributions to the state or region, or an architect whose work influenced development of the city, state or nation.
b. An architect who, in terms of craftsmanship, made significant contributions to San Luis Obispo (e.g., Abrahams who, according to local sources, designed the house at 810 Osos - Frank Avila's father's home - built between 1927 – 30).

B. Historic Criteria
(1) History – Person: Associated with the lives of persons important to local, California, or national history. Historic person will be evaluated as a measure of the degree to which a person or group was:
a. Significant to the community as a public leader (e.g., mayor, congress member, etc.) or for his or her fame and outstanding recognition - locally, regionally, or nationally.
b. Significant to the community as a public servant or person who made early, unique, or outstanding contributions to the community, important local affairs or institutions (e.g., council members, educators, medical professionals, clergymen, railroad officials).
(2) History – Event: Associated with events that have made a significant contribution to the broad patterns of local or regional history or the cultural heritage of California or the United States. Historic event will be evaluated as a measure of:
(i) A landmark, famous, or first-of-its-kind event for the city - regardless of whether the impact of the event spread beyond the city.
(ii) A relatively unique, important or interesting contribution to the city (e.g., the Ah Louis Store as the center for Chinese-American cultural activities in early San Luis Obispo history).
(3) History-Context: Associated with and also a prime illustration of predominant patterns of political, social, economic, cultural, medical, educational, governmental, military, industrial, or religious history. Historic context will be evaluated as a measure of the degree to which it reflects:
a. Early, first, or major patterns of local history, regardless of whether the historic effects go beyond the city level, that are intimately connected with the building (e.g., County Museum).
b. Secondary patterns of local history, but closely associated with the building (e.g., Park Hotel).

14 C. Integrity: Authenticity of an historical resource’s physical identity evidenced by the survival of characteristics that existed during the resource’s period of significance. Integrity will be evaluated by a measure of:
(1) Whether or not a structure occupies its original site and/or whether or not the original foundation has been changed, if known.
(2) The degree to which the structure has maintained enough of its historic character or appearance to be recognizable as an historic resource and to convey the reason(s) for its significance.
(3) The degree to which the resource has retained its design, setting, materials, workmanship, feeling and association.

14.01.080 Historic District Designation, Purpose and Application A. Historic (H) District designation. All properties within historic districts shall be designated by an “H” zoning. Properties zoned “H” shall be subject to the provisions and standards as provided in Ordinance 17.54 (Zoning) of the Municipal Code.

B. Purposes of Historic Districts. The purposes of historic districts and H zone designation are to:
(1) Implement cultural resource preservation policies of the General Plan, the preservation provisions of adopted area plans, the Historic Preservation and Archaeological Resource Preservation Program Guidelines, and (2) Identify and preserve definable, unified geographical entities that possess a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development; (3) Implement historic preservation provisions of adopted area and neighborhood improvement plans;
(4) Enhance and preserve the setting of historic resources so that surrounding land uses and structures do not detract from the historic or architectural integrity of designated historic resources and districts; and
(5) Promote the public understanding and appreciation of historic resources.

C. Eligibility for incentives. Properties zoned as Historic Preservation (H) shall be eligible for preservation incentive and benefit programs as established herein, in the Guidelines and other local, state and federal programs.

Item 5d
Department: Public Works
Cost Center: 5005
For Agenda of: 10/4/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Nathan Garcia Nava, Engineer I
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR CITY HALL MEETING ROOM TENANT IMPROVEMENTS, SPECIFICATION NUMBER 1000055

RECOMMENDATION

1. Award a Construction Contract to Quincon, Inc. in the amount of $330,280 for the City Hall Meeting Room Tenant Improvement, Specification No. 1000055; and

2. Appropriate $160,000 from the Capital Projects Reserve Fund to the project account (1000055); and

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

4. Adopt a Draft Resolution 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 City Hall Meeting Room Tenant Improvement Specification Number 1000055.”

POLICY CONTEXT
On June 10, 2022, the City Manager authorized the invitation of bids for the City Hall Meeting Room Tenant Improvements project. As stated in the report (Attachment A), the project contract could be awarded by the Director of Public Works if the construction bid was lower than the Engineer’s Estimate. This process is in compliance with the City Financial Management Manual Section 203 of for projects estimated to be under $200,000 in contract cost.

Following advertising approval, a bid opening was held on July 21, 2022. No bids were received. Staff proceeded with an informal bidding process as outlined in City Municipal Code 3.24.185:

If no bids are received, the purchase may be made through negotiated contract or other process approved by the purchasing authority, including, in the case of construction projects, performing the work by employees of the city by force account. (Ord. 1435 § 1 (part), 2003)

Item 5d
After reaching out to interested contractors who attended the project walkthrough, staff proceeded with an informal bidding process in accordance with the above Municipal Code section. Quincon, Inc. submitted a bid package for the project on August 19, 2022, in the amount of $330,280. The contract price exceeds the delegated authority provided by Council to the City Manager and therefore a contract must be evaluated and awarded by Council to move forward with this project in compliance with the Financial Management Manual Section 203 for projects over $200,000 in contract cost.

The recommended actions for award and fund appropriation are supported by the City Council’s adopted Capital Improvement Plan as well as its Fund Balance and Reserve Policy. The City’s Fund Balance and Reserve Policy was adopted in June 2021 and includes guidelines related to the Capital Projects Reserve Fund, as follows:

The City will maintain a committed reserve of 20% of capital improvement plan budget from the Local Revenue Measure for the purposes of offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects to provide continued investment in infrastructure maintenance and enhancement. Use and allocations of funds from the Capital Projects Reserve Fund will be made to Capital Projects including Major Facility Replacement upon Council approval as necessary during any fiscal year.

The recommended use of the Reserve to supplement the City Hall Meeting Room Tenant Improvements project is consistent with this policy.

DISCUSSION
Background
Since being built in the 1950s, City Hall has been through Seismic Safety and HVAC retrofits, remodels, and reconfigurations of specific sections such as Human Resources offices, Administration Office (east and west wings), and public restrooms. The most recent projects include the City Hall Chiller Replacement as well as the Audio and Video Replacement in the Council Chambers. Since the Seismic Safety and HVAC Improvements project in 1998, the City Hall meeting room and City Hall breakroom have not been improved. Improvements implemented by this project include installation of ADA compliant counters, reconfiguration of IT equipment for proper storage, and break room cabinetry necessary for storage of reusable dishware and utensils. Additional improvements include flooring, ceilings, new appliances, lighting, carpeting, and painting.

On June 10, 2022, City Manager authorized advertisement for bids for the City Hall Meeting Room Tenant Improvements in accordance with Financial Management Manual for projects with an estimated contract cost of less than $200,000 (Attachment A). As detailed in the preceding Policy Context section of this report, staff ultimately received one bid in the amount of $330,280 which was over the Engineer’s Estimate for the project.

This cost increase is representative of the significant increase in construction costs seen since 2021 as a result of labor and materials shortages. Costs are rapidly increasing and further delay in this project is not anticipated to result in reduced construction costs.

Item 5d
Although the bid was over the estimate, staff is recommending award of the agreement (Attachment B) and allocating an additional $160,000 to the project from the Capital Projects Reserve Fund balance as shown in Fiscal Impact Section of this report to avoid further cost increases.

Previous Council or Advisory Body Action
On June 1, 2021, Council adopted its 2021-23 Financial Plan and the Fund Balance and Reserve Policy. On June 7, 2022, Council adopted the FY 2022-23 Budget Supplement.

Public Engagement
This capital project was included in the 2021-23 Financial Plan, which included a robust public outreach component.

CONCURRENCE
A building permit application was submitted to the Community Development Department’s Building Division in August 2019. A permit extension was requested and approved in June 2022. The building permit will be obtained prior to the start of construction and will be issued to the Contractor following the award of a construction contract. All comments and conditions associated with the building and safety review of the project have been incorporated into the design of the project.

ENVIRONMENTAL REVIEW
The Community Development Department has issued a Notice of Exemption pursuant to section 15301 Class 1 (Existing Facilities) of the California Environmental Quality Act Guidelines.

FISCAL IMPACT
This project was identified in the 2019-21 Financial Plan, where it was initially allocated $100,000 for construction but funds were deferred for another project. The 2021-23 Financial Plan allocated $130,000 into the project account (1000055-01) to cover construction cost. Due to the passage of time since the project was initially conceived, material costs have gone up as well as inflation leading to the need for additional funding.

Therefore, an additional $115,000 from the Local Revenue Measure and $15,000 the General Fund was requested and approved with the 2022-23 Budget Supplement on June 7, 2022, for a total project budget of $260,000. Due to the current bid price, staff is requesting an additional $160,000 be appropriated to the project from the Capital Projects Reserve Fund to offset the increased project cost (Attachment C).

Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes

Item 5d
Fiscal Analysis:

Funding Sources Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund:

Capital Outlay $14,692 $14,692 $0 N/A
General Fund:

Capital Outlay
Fund LRM
$245,000 $245,000 $0 N/A
State
Federal
Fees
Other: Capital
Projects Reserve
Fund
$1,171,708 $160,000 $1,011,708
Total $1,431,400 $419,692 $1,011,708
Project Total Cost
(1000055-01)
Capital Outlay Fund - LRM
Bid Total: $330,280
Contingencies (20%) $66,020
Total for Construction $396,300
Materials Testing: $2,000
Construction Support: $20,000
Printing: $500
Total Project Cost $418,800
Available Funding
Current 1000055-01 Balance: $259,692
Capital Projects Reserve Fund Balance: $1,171,708
Requested Funding
Requested Funding from the Capital
Projects Reserve Fund $160,000
Remaining Funding
Remaining funds in the Capital Projects
Reserve Fund $1,011,708
Post Project 1000055-01 account Balance $892
City Hall Meeting Room Tenant Improvements, Specification No. 1000055

Item 5d

ALTERNATIVES
Deny awarding project and additional funding. Council may deny the award of the project, but city staff advises against this as delay of the project would result in higher construction cost. Council may also deny the authorization for additional funds, but city staff advises against this as the funds are essential in order to ensure project completion.

ATTACHMENTS
A - City Manager Report to Advertise City Hall Meeting Room Tenant Improvements B - Draft Agreement with Quincon, Inc.

C - Draft Resolution authorizing use of Capital Projects Reserve Fund for Specification Number 1000055

City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver
Name Date Approved
ACM Community Services Shelly 6/10/22
Reviewer Routing List Reviewer Name Date Reviewed
City Engineer Brian Nelson 6/2/2022
City Attorney Mark Amberg 6/9/22
Finance BE 6/9/22
Department Analyst Paul Fields 5/19/2022
CIP Process Improvement Manager Emily Jackson 5/24/2022 June 9, 2022
FROM: Matt Horn, Director of Public Works MH 6/8/2022
PREPARED BY: Nathan Garcia Nava, Engineer I
SUBJECT: Advertise City Hall Meeting Room Tenant Improvements, Specification No. 1000055

RECOMMENDATIONS

1. Approve the Project Plans (Attachment A) and Specifications (Attachment B) for the City Hall Meeting Room Tenant Improvements, Specification Number 1000055; and

2. Authorize staff to advertise the project for bids; and

3. Authorize the Director of Public Works to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $180,000.

DISCUSSION
Background
Since being built in the 1950s, City Hall has been through Seismic Safety and HVAC retrofits, remodels, and reconfigurations of specific sections such as Human Resources offices, Administration Office (east and west wings), and public restrooms. The most recent projects include the City Hall Chiller Replacement as well as the Audio and Video Replacement in the Council Chambers. Since the Seismic Safety and HVAC Improvements project in 1998, the City Hall meeting room and City Hall Breakroom have not been improved. This is a critically needed project given the regular use of the rooms has caused significant wear and tear since the last improvement. Considerations that were made in the prioritization of this project include the change in ADA counter height requirements, the improper storage of IT equipment, and the need for break room cabinetry to store reusable dishware and utensils. Additional improvements include but is not limited to flooring, walls, and ceilings, new appliances, lighting, carpeting, and painting.

Authorization to Advertise City Hall Meeting Room Tenant Improvements Page 2

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

Funding Sources FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other: Capital Outlay &
LRM
$200,000 $200,000
Total $200,000 N/A $200,000
Project Cost Estimate (Spec. 1000055)
Construction Estimate $180,000
Contingency (15%) $20,000
Total for Project $200,000
Available Budget $260,000
This project was identified in the 2019-21 Financial Plan, where it was initially allocated $100,000 but funds were deferred for another project. The 2021-23 Financial Plan allocated $130,000 into the project account (1000055) to cover construction cost. Due to the passage of time since the project was initially conceived, material costs have gone up as well as inflation leading to the need for additional funding. Therefore, an additional $130,000 from the Local Revenue Measure and the Capital Outlay Fund was requested and approved with the 2022-23 Budget Supplement on June 7th. This additional funding is expected to accommodate any additional unforeseen cost increases above the estimated project budget of $200,000. On May 17, 2022, Council increased the City Manager’s delegated authority for Capital Improvement Plan Project purchasing from $175,000 to $200,000 in compliance with the State of California’s Uniform Public Construction Cost Account Act.

The project is going out for bid now, so it can commence once FY2022-23 funding is available on July 1, 2022.

ALTERNATIVES
Deny authorization to advertise. The City Manager may choose to not authorize project advertisement. However, staff does not recommend this alternative as delaying the work pushes the construction timeframe away from the council break and will likely increase future construction costs.

ATTACHMENTS

Authorization to Advertise City Hall Meeting Room Tenant Improvements Page 2

1. 1000055 – City Hall Meeting Room TI Plans

2. 1000055 – City Hall Meeting Room TI Specifications
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/citymanagersreports/Shared Documents/Public Works/2022/CIP Engineering/1000055 - Council Hearing Room Tenant Improvements/1000055 CMR - Advertise City Hall Meeting Room TI.docx

AGREEMENT
THIS AGREEMENT, made on _____________, by and between the City of San Luis Obispo, a municipal corporation and charter city, San Luis Obispo County, California (hereinafter called the Owner) and Quincon, Inc. (hereinafter called the Contractor).

WITNESSETH:

That the Owner and the Contractor for the consideration stated herein agree as follows:

ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of
CITY HALL MEETING ROOM TENANT IMPROVEMENTS, SPEC NO. 1000055 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.

It is agreed that said labor, materials, tools, equipment, and services shall be furnished and said work performed and completed under the direction and supervision and subject to the approval of the Owner or its authorized representatives.

ARTICLE II, CONTRACT PRICE: The Owner shall pay the Contractor as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in the Contract Documents, the contract prices as follows:

Item
No.

Item Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)

1. COUNCIL HEARING ROOM

IMPROVMENTS
LS 1 --- $210,486.00

2. BREAK ROOM

IMPROVEMENTS
LS 1 --- $104,437.00

3. COUNCIL CHAMBERS

CCARPET
LS 1 --- $9,657.00

4. COMPLY WITH BUILIDING

PERMIT REQUIREMENTS
LS 1 --- $1,200.00

5. CONTRACTORS

COORDINATION
LS 1 --- $4,500.00
BID TOTAL: $ 330,280.00
DocuSign Envelope ID: 648BB937-FB61-423C-BC59-DEFDDC7FBD80

Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract.

Should any dispute arise respecting the true value of any work omitted, or of any extra work which the Contractor may be required to do, or respecting the size of any payment to the Contractor, during the performance of this Contract, said dispute shall be decided by the Owner and its decision shall be final, and conclusive.

ARTICLE III, COMPONENT PARTS OF THIS CONTRACT: The Contract consists of the following documents, all of which are as fully a part thereof as if herein set out in full, and if not attached, as if hereto attached:

1. Notice to Bidders and Information for Bidders

2. Standard Specifications and Engineering Standards

3. Special Provisions, any Addenda, Plans and Contract Change Orders

4. Caltrans Standard Specifications and Standard Plans 2015

5. Accepted Bid and Bid Bond

6. List of Subcontractors

7. Public Contract Code Sections 10285.1 Statement

8. Public Contract Code Section 10162 Questionnaire

9. Public Contract Code Section 10232 Statement

10.Labor Code Section 1725.5 Statements

11.Bidder Acknowledgements

12.Qualifications

13.Non-collusion Declaration

14.Agreement and Bonds

15.Insurance Requirements and Forms
ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

DocuSign Envelope ID: 648BB937-FB61-423C-BC59-DEFDDC7FBD80

The Contractor obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.

However, without affecting the rights of the City under any provision of this agreement, the Contractor shall not be required to indemnify and hold harmless the City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the City is shown to have been actively negligent and where the City’s active negligence accounts for only a percentage of the liability involved, the obligation of the Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City.

ARTICLE V. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said bid conflicting herewith.

IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands this year and date first above written.

ATTEST: CITY OF SAN LUIS OBISPO
A Municipal Corporation
__________________________________ __________________________________ Teresa Purrington, City Clerk Erica A. Stewart, Mayor
APPROVED AS TO FORM CONTRACTOR:

Quincon, Inc.
________________________________ By:________________________________ J. Christine Dietrick
City Attorney
Jose Quintana
Chief Executive Officer & Secretary

DocuSign Envelope ID: 648BB937-FB61-423C-BC59-DEFDDC7FBD80

R ______
RESOLUTION NO. _____ (2022 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING USE OF CAPITAL PROJECTS

RESERVE FUND TO SUPPORT THE CITY HALL MEETING ROOM
TENANT IMPROVEMENTS, SPECIFICATION NUMBER 1000055
WHEREAS, in June of 2021, City Council approved the 2021-23 Financial Plan – Capital Improvement Program, which identified the City Hall Meeting Room Tenant Improvements (Project) with the current budget of $130,000 to support implementation of the work; and
WHEREAS, in June of 2022, City Council adopted the Fiscal Year 2022-23 Budget Supplemental, which identified an additional $130,000 to support construction work for the Project upon award; and
WHEREAS, to provide funding to support the total construction contract for the Project, staff is recommending City Council approve the use of an additional $160,000 from the Capital Projects Reserve Fund; and
WHEREAS a balance of approximately $1.1 million is available from the Capital Projects Reserve Fund
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. The City Council authorizes staff to transfer $160,000 from the Capital Projects Reserve Fund to the City Hall Meeting Room Tenant Improvement project account 1000055-01.

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 5e
Department: Community Development
Cost Center: 4006
For Agenda of: 10/4/2022
Placement: Consent
Estimated Time: NA
FROM: Michael Codron, Community Development Director
Prepared By: Michael Loew, Deputy Building Official
SUBJECT: AUTHORIZATION TO ADVERTISE ON-CALL SCANNING SERVICES

REQUEST FOR QUALIFICATIONS

RECOMMENDATION

1. Approve the Request for Qualifications (RFQ) to provide scanning services; and

2. Authorize the City Manager to execute agreements with selected consulting firms; and

3. Authorize the Finance Director to execute and amend Purchase Orders for individual consultant services contract in an amount not-to-exceed the authorized project budget; and

4. Authorize the Community Development Director to amend or extend the agreement for services in accordance with its terms and conditions, and within the available annual budget.

POLICY CONTEXT
Government Code Section 34090.5 authorizes the conversion of hard copy materials and records onto other electronic mediums (i.e., burning CDs or DVDs or other format reasonably accepted within the industry, as may be determined by the City Clerk) as long as the following conditions are met:

A. The record, paper, or document is photographed, microphotographed, reproduced by electronically recorded video images, recorded in electronic data processing system, recorded on optical disk, or any other medium that is a trusted system and that does not permit additions, deletions, or changes to the original document;
B. The device or method used to reproduce the record, paper, or document reproduces the original in all details and does not permit additions, deletions, or changes to the original document images;
C. The reproductions are made accessible for public reference as the original records were; and
D. A true copy of archival quality of the film, optical disk, or any other medium reproductions shall be kept in a safe and separate place for security purposes.

Item 5e
City of San Luis Obispo Records Retention Policy and Schedule Page 6 and 10 stipulate that if the above conditions are met, subject to system verification and eligibility for conversion by the City Clerk, Department Head, and City Attorney, the public official having custody of the records (Department Head) may convert the hard copy to a permissible electronic format and destroy the hard copy.

DISCUSSION
Background
There is an immediate need to digitalize several City records throughout the Community Service Group Departments. There have been regular ongoing efforts to scan documents through the use of temporary employees, but due to staffing shortages and diversion of resources to respond to COVID-19, the Community Development Department in particular, has amassed a backlog of construction documents for completed projects with limited space to store active projects.

Community Development staff is working with Information Technologies staff to develop an eReview process, which will alleviate the need to store and scan paper construction documents in the future. While the eReview function is not anticipated to be available until next calendar year, Building and Safety staff, with guidance from IT, is adjusting business processes to receive digital files directly from design professionals. Ultimately, even though staff has a plan to stop adding to the backlog of files, there is currently a substantial number of records that need to be scanned.

Request for Qualifications (RFQ) Selection and Contract Management There is one consultant currently contracted for scanning services; however, this consultant has been unresponsive and unavailable to assist with the backlog of documents. It is therefore recommended that the City advertise for these services through the RFQ process. The RFQ model is used to identify the skillset of the consultants’ submitting qualifications and enables City staff to determine how those qualifications align with current City needs. This is different from the project-specific Request for Proposals (RFP) model, which seeks proposals for a specific project with a defined scope of work.

After evaluating the RFQ submittal packages, the top consultants in each specialized area will be selected to enter into an agreement with the City. Consultant selection is based on their demonstrated ability to provide the services proposed in a timely manner with qualified staff. Once the selected consultants enter into an agreement with the City, their services on an individual project are implemented rapidly, without the need for an individual RFP. The selected consultant firms will remain on contract for up to five years.

The consultants will operate under the conditions of the agreement included in the RFQ.

Individual projects will be scoped by the City department most involved. The specific project work will then be authorized via a Purchase Order through the Finance Department.

Public Engagement
This RFQ will be advertised to the public.

Item 5e

CONCURRENCE
The Public Works Department concurs with the recommendations of this report.

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: No Budget Year: 2022-23
Funding Identified: No
Fiscal Analysis:

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

Total $N/A $ N/A $ N/A $ N/A
Issuing the RFQ and establishing a qualified list does not obligate any funds for consultant work. When the on-call agreement is executed and projects are identified requiring consultant services, quotes will be requested, and purchase orders will be issued at the discretion of the Finance Director in an amount not to exceed authorized project budgets or appropriated operating budget.

Item 5e

ALTERNATIVES

1. Individual Project Request for Proposals (RFP). Council can direct staff to proceed in a more traditional fashion by issuing RFPs for each individual project in the process outlined by the City’s Purchasing Guidelines. In this case, a company with greater experience in the specific work might be attracted; however, this process is very time consuming and increases the work required for an individual project, reducing overall project production. Staff does not recommend this approach because it increases the time to implement individual contracts, while providing minimal benefit. RFPs can still be issued on a case-by-case basis when specialized skills, not available through oncall contracts, are needed.

2. In-house Approach. Council can direct staff to continue attempting to perform scanning tasks. There is currently one scanning device suitable to scan large documents; however, it has been unreliable and in need of service. Staff does not recommend replacing or servicing old equipment since there is a plan to move towards paperless operations, and staff shortages have made this approach unsuccessful in the past.

ATTACHMENTS
A - Draft RFQ for Document Scanning Services

Notice requesting qualifications (RFQ) for on-call document scanning services.

The City of San Luis Obispo is requesting proposals from qualified vendors to provide document scanning services. All proposers must register with BidSync at www.BidSync.com, where proposers can obtain RFQ packages and submit questions.

All firms interested in receiving further correspondence regarding this Request for Qualifications(RFQ) will be required to complete a free registration using BidSync ( https://www.bidsync.com/bidsyncappweb/vendor/register/Login.xhtml). All proposals must be on BidSync at or before 3:00 PM on when they are opened electronically on BidSync.

The preferred method for bid submission is electronic via BidSync. However, if you wish to submit a paper copy, please submit it in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401.

Specification packages and additional information may be obtained at the City's BidSync website at www.BidSync.com. Please contact Dan Clancy at [email protected] with questions.

Section A

DESCRIPTION OFWORK
The City of San Luis Obispo (“City”) seeks qualifications for document scanning services to assist staff in secure file storage and efficient record keeping.

I. GENERAL
The City is requesting qualifications from qualified consultants to provide document scanning services.

Currently, the city is not adequately staffed to perform scanning tasks necessary to securely and efficiently store records that must be permanently retained. The City is interested in generating a list of qualified consultants specializing in this type of work to draw from as needed. While an exact list of the City’s future document scanning services is unknown at this time, consultants should expect projects that will include scanning thousands of construction documents, including blueprints (up to 30”x42” sheets), for completed and active building permits.

The Consultant should be able to provide a project manager as a point of contact that will coordinate the packaging, labeling, and transport of documents to an offsite secure location. A list of all documents shall be provided to the City prior to being removed from location. Specific documents removed shall be made available upon request to City Staff, either hard copy or digital, within 2 business days. It is estimated that 70-80% of documents are considered clean and ready to scan, while 20-30% of the documents need special handling (old blueprints and folded documents).

The Consultant will work through a single point of contact per project from the department of the City that is utilizing the services of the consultant. A sample scope of work is provided; however, final scopes of work will be determined with the selected Consultant as a part of any contract during negotiations.

II. SCOPE OF WORK

1. Create an inventory list for documents being removed from location

2. Transport documents to secure location where scanning services is provided

3. Scan paper files into appropriate digital format (PDF, JPEG, etc.)

4. Index files according to the preferred naming convention

5. Provide a download link of digital data to the City for archival

6. Return all hard copy documents upon completion
a. Or properly dispose of documents in accordance with City policy

III. SUBMITTAL CONTENT

1. Letter of Interest (5-page maximum). Please include in the submittal a letter introducing the Consultant and expressing the Consultant's interest in being considered for on-call consulting services, clearly identifying the applicable sub-area(s) of interest. The letter of interest should also include all of the following:
a. Provide the name of the entity, its mailing address, telephone, facsimile number. Please describe the organization.
b. Indicate that the Consultant has the availability and time to dedicate the personnel and resources necessary to provide on-call consulting services. c. Indicate that the Consultant has the minimum qualifications listed in Section III above. d. Indicate the intention of the Consultant to adhere to the provisions described in the RFQ. e. If selected to provide on-call consulting services, the Consultant will be expected to sign a service provider agreement with the City.
f. Please identify the contact person responsible for the submittal, specifying the name, title, and contact information.
g. Please note that the person signing the letter of interest must be a legal representative of the Consultant authorized to bind the Consultant to an agreement in the event of an award.
h. Provide a brochure or list of relevant services that can be provided, including but not limited to services outlined in Section I and II

2.Relevant Experience of Key Personnel and the Firm (10-pagemaximum). a. Key Personnel Experience. The submittal must identify the key personnel that is to be assigned if awarded a contract, detailing their qualifications, areas of expertise, a summary of their past experience performing similar services for other jurisdictions, and a resume of each key personnel, including experience working with City staff, local San Luis Obis po community groups and decision-makers, and regional partner agencies.
b. Firm Experience. The submittal must describe the Firm's pertinent project experience, including a list of performed relevant projects, past performance, individual or team accomplishments, and examples of similar work for San Luis Obispo or neighboring jurisdictions in California, including experience working with City staff, local San Luis Obispo community groups and decision-makers, and regional partner agencies.
c. General Firm Information. General firm information including the number of employees, location of firm headquarters, branch offices, and the number of years in business may also be provided. Please note that general firm information is not a substitute for the specific information requested in Sections IV.2.a and babove.

3. Fee Structure. Please include a clear and comprehensive fee schedule, including a detailed statement of hourly rates for all positions and classifications of individuals involved and reimbursable expenses.

Please also include the rates for a project-by-project basis, as noted in the sample Scope of Work above.

4. Client References. Consultants must provide a minimum of three (3) clientreferences.

IV. ADDITIONAL SERVICES
If there are related services not otherwise identified in the City's RFQ, the Proposer may offer thoseto the City. Proposals are not required to address any additional services in order to be considered an acceptable proposal. However, the final selection of the successful Proposer may be based onthe desirability of the additional servicesoffered.

V. SELECTION PROCESS
Submittals received by the deadline will be reviewed by a selection panel comprised ofCity staff who have relevant knowledge and experience. The panel will score the proposalsbased upon the qualification materials submitted according to the following criteria:

1. Letter of Interest. Availability demonstrated the capacity and qualifications necessary to provide the consulting services specified in the RFQ. Ability to meet standard City contract and insurance requirements.

2. Relevant Experience.
a. Demonstrated ability, based on consultant experience and specific experience of key personnel, to provide technical assistance on the types of tasks listed in the RFQ. Consultants need not necessarily be experts in every task in a given sub-area in order to achieve a favorable score.
b. Prior experience, including the ability to work with City staff, local San Luis Obispo community groups and decision-makers, and regional partner agencies. (30 Points Maximum)

3. Responsiveness to the RFQ. Presentation, completeness, and clarity of information provided.

4. Fee Structure. The Consultant's cost competitiveness and reasonableness. (20 Points Maximum)

5. Client References. (Pass/Fail)
The submittals will be scored on a zero to 100-point scale, excluding bonus points. Consultants who qualify will be placed on the list of qualified on-call consultants for each subarea. Placement on the list of qualified on-call consultants is not a guarantee of work and does not constitute a commitment by the City to enter into a contract with the Consultant. As appropriate, the City may conduct an additional competitive process (e.g., solicit bids or issue Requests for Proposals) prior to awarding contracts. The City anticipates that all services will be on an as-needed or on-call basis.

IV. ADDITIONAL TERMS AND CONDITIONS
A. Nondiscrimination. The City will not discriminate against any interested consultanton the grounds of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, or sexual orientation.

B. City's Right to Modify RFQ. The City reserves the right at its sole discretion to modify this RFQ (including but not limited to the selection criteria) should the City deem that it isin itsbest interests to do so. Any changes to the proposal requirements will be madeby written addendum.

The failure of a consultant to read the latest addendums shallhave no effect on the validity of such modification.

C. City's Right to Cancel RFQ. The City reserves the right at its sole discretion to cancel this RFQ in part or in its entirety should the City deem that it is in the City's best interests to do so.

D. City's Right to Reject All Submittals. The City reservesthe right, in its sole discretion, to reject all submittals should the City deem that it is in its best interests to do so.

E. City's Right to Extend RFQ Deadlines. The City reserves the right to extend the deadline for submittals by written addendum should the City deem that it is in its best interests to do so.

F. City Right to Negotiate With Consultants. The City reserves the right to negotiate with the consultants on the list of qualified on-call consultants regarding their exceptions to thestandard service provider agreement if any, or regarding other price and terms in theirsubmittals and to require the selected Consultant to submit such technical, price, or other revisions of their submittals as may result fromnegotiations.

G. Standard Form Service Provider Agreement & Insurance. Consultants acknowledgethat placement on the list of qualified on-call consultants does not commit the City to award a contract. For any project, the City reserves the right to award a contract to consultants (1) that are on the list of qualified on-call consultants; (2) that have an existing contract with the City, or (3) that are selected through a separate competitiveprocess.

Consultants on the list of qualified on-call consultants who are awarded a contract will be expected to sign a service provider agreement with the City. The standard service provider agreement and associated insurance requirements are attached asAttachment B.

Comments or exceptions, if any, to the standard service provider agreementand/or insurance requirements must be noted in the Letter of Interest. It is understoodthat consultants have reviewed the service provider agreement (Attachment B) and will take exception only to those items identified in their Letter ofInterest.

Neither review of the submittal by the City nor placement on the list of qualifiedon-call consultants constitutes an acceptance by the City of the Proposer's recommended changes tothe service provider agreement. If there are any concerns or proposed exceptions requested to the standard service provider agreement, these issues will be discussed at the time the City awards a contract, if any.

H. Cost of Submittals. All costs incurred during submittal preparation or in anyway associated with the Consultant's preparations or submission shall be thesole responsibility of the Consultant.

I. Liability for Submittal Errors. Consultants are liable for all errors and omissions contained in their submittals.

J. Permits and Licenses. Consultants, at their sole expense, shall obtain and maintain during the term of any agreement all appropriate permits, certificates, andlicenses including, but not limited to, a City Business License, which will be required in connection with the performance of on-call consulting services.

VII. ADDITIONAL CONSIDERATIONS AND ASSUMPTIONS

1. All works submitted to and accepted by the City must be an original piece createdby the Contractor.

2. All works submitted by the Contractor must be in standard U.S. English and adhere to the Branding and Style Guide.

3. All works must be submitted in Microsoft Word format and include a headline pertaining to the work in bold. The work should appear in a non-bolded Calibri, 12-pointfont.

4. The City reservesthe right to use allsubmitted worksin current and/or future forms of current media and/or media to be developed.

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

W I T N E S S E T H:

WHEREAS, the City wants to procure document scanning services.

WHEREAS, [Contractor/Consultant] is qualified to perform this type of service and has submitted a quote to do so, which has been accepted byCity.

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

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

2. INCORPORATION BY REFERENCE City RFQ and Contractor's proposal dated [date] is hereby incorporated in and made a part of this Agreement and attached as Exhibit A. The City's terms and conditions are hereby incorporated in and made a part of this Agreement as Exhibit B. To the extent that there are any conflicts between the Contractor's fees and scope of work and the City's terms and conditions, the City's terms and conditions shall prevail unless specifically agreed otherwise in writing signed by both parties.

3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefor compensation in a total sum not to exceed $[xx,xxx] for [ _].

4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and Agreements herein before mentioned to be made and performed by City, Contractor agrees with City to provide services as set forth in

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

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

7. NOTICE. All written noticesto the parties hereto shall be sent by United Statesmail, postage prepaid by registered or certified mail addressed asfollows:

City [DEPT]
City of San Luis Obispo
Contractor/Consultant Name

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

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

CITY OF SAN LUIS OBISPO, A Municipal Corporation
By:
[City Manager Or Dept Head]
APPROVED AS TO FORM: CONTRACTOR
City Attorney
By:

GENERAL TERMS ANDCONDITIONS

1. Insurance Requirements. The Contractor shall provide proof of insurance in theform, coverages and amounts specified in Section E of the City's Request for Proposal referenced in paragraph 2 of the Agreement, unless changes are otherwise approved and agreed to in writing between the parties. If the Agreement is entered into outside of a Request for Proposal,Contractor shall provide proof of insurance in the form of coverages and amounts specified in Exhibit C.

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

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

4. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observeand comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work.

5. Payment of Taxes. The contract prices shall include full compensation for all taxes thatthe Contractor is required to pay.

6. Permits and Licenses. The Contractor shall procure all permits and licenses, pay allcharges and fees, and give all notices necessary.

7. Safety Provisions. The Contractor shall conform to the rules and regulations pertainingto safety established by OSHA and the California Division of Industrial Safety.

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

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

10. Immigration Act of 1986. The Contractor warrants on behalf of itself and all

subcontractors engaged for the performance of this work that only persons authorized towork in the United State pursuant to the Immigration Reform and Control Act of 1986 andother applicable laws shall be employed in the performance of the workhereunder.

11. Contractor Nondiscrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry,sexual orientation, or religion of such persons.

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

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

14. Inspection. The Contractor shall furnish City with every reasonable opportunity for Cityto ascertain that the services of the Contractor are being performed in accordance with therequirements and intentions of this contract. All work done, and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any ofits obligations to fulfill its contract requirements.

15. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedentto any payment to Contractor.

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

17. Hold Harmless and Indemnification.
(a) Non-design, non-construction Professional Services: To the fullest extent permittedby law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers,employees, volunteers, and agents ("City Indemnitees"), from and against any and all causes ofaction, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels'fees and costs of litigation ("claims"), arising out of the Consultant's performance orConsultant's failure to perform its obligations under this Agreement or out of the operations conductedby Consultant, including the City's active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event theCity Indemnitees are made a party to any action, lawsuit, or other adversarial proceedingarising from Consultant's performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City's option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of suchclaims. (b) Non-design, construction Professional Services: To the extent the Scope of Services involve a "construction contract" as that phrase is used in Civil Code Section 2783, this paragraph shall apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents ("City Indemnitees"), from and against any and all causes of action, claims, liabilities,obligations, judgments, or damages, including reasonable legal counsels' fees and costs oflitigation ("claims"), arising out of the Consultant's performance or Consultant's failure to performits obligations under this Agreement or out of the operations conducted by Consultant, exceptfor such loss or damage arising from the active negligence, sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, orother adversarial proceeding arising from Consultant's performance of this Agreement,the Consultant shall provide a defense to the City Indemnitees or at the City's option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense ofsuch claims.
(c) Design Professional Services: In the event Consultant is a "design professional", and the Scope of Services require Consultant to provide "design professional services" as thosephrases are used in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest extent permitted by law (including, but not limited to California Civil CodeSections 2782 and 2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials, officers, employees, volunteers and agents ("City Indemnitees"), from and against all claims, damages, injuries, losses, and expenses including costs, attorney fees, expert Consultant and expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or willful misconduct of Consultant, except to the extent caused by the sole negligence,active negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any subcontractor employed by Consultant shall be conclusively deemed to be the negligence, recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant's performance of this Agreement, the Consultantshall provide a defense to the City Indemnitees or at the City's option, reimburse the CityIndemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event shall the cost to defend charged to Consultant

under this paragraph exceed Consultant's proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to payits share of defense costs due to bankruptcy or dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid defense costs. (d) The review, acceptance or approval of the Consultant's work or work product by any indemnified party shall not affect, relieve or reduce the Consultant's indemnification ordefense obligations. This Section survives completion of the services or the termination of thiscontract.

The provisions of this Section are not limited by and do not affect the provisions of thiscontract relating to insurance.

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

19. Termination for Convenience. The City may terminate all or part of this Agreement for any or no reason at any time by giving 30 days written notice to Contractor. Should the City terminatethis Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase price; (b) for custom products, the less of a reasonable price for the rawmaterials, components work in progress and any finished units on hand or the price per unit reflected on this Agreement. For termination of any services pursuant to this Agreement, the City'sliability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected on this Agreement.Upon termination notice from the City, Contractor must, unless otherwise directed, cease work and follow the City's directions as to work in progress and finished goods.

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

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

In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or tasksatisfactorily delivered or completed by the Contractor as may be set forth in

the Agreement payment schedule; compensation for any other work, services or goods performedor provided by the Contractor shall be based solely on the City's assessment of the value of the work-inprogress in completing the overall work scope.

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

INSURANCE REQUIREMENTS: ConsultantServices
The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees, or subcontractors.

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

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG0001).

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

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

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

Minimum Limits of Insurance. Contractor shall maintain limits no lessthan:

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

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

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

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

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

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

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

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

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

4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by eitherparty,reduced incoverage orin limits exceptafterthirty (30) days' prior written notice by certified mail, return receipt requested, has been given to theCity.

Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating ofno less than A:VII.

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

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

Describe fully threecontracts performed by your Firmwithinthelast five yearsthatdemonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required.

The City reservesthe rightto contact each ofthe referenceslisted for additional information regarding your Firm's qualifications.

Reference No. 1
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, ZipCode
Description of services
provided including contract
amount, when provided and
link to finalreport
Reference No. 2
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, ZipCode
Description of services
provided including contract
amount, when provided and
link to finalreport
Reference No. 3
Customer Name
Contact Individual
Telephone & FAX number

Street Address
City, State, ZipCode
Description of services
provided including contract
amount, when provided and
link to finalreport

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

Executed on at under penalty of perjury of the laws of the State of California, thatthe foregoing is true and correct.

Signature of Authorized Bidder Representative

Item 5f
Department: Human Resources
Cost Center: 3001
For Agenda of: 10/5/2022
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Brittani Roltgen, Human Resources Manager
SUBJECT: ADOPT A SUPPLEMENTAL SALARY SCHEDULE REFLECTING 2023

MINIMUM WAGE INCREASES

RECOMMENDATION
Adopt a modified Supplemental Employee Salary Schedule as necessary to comply with Senate Bill No. 3, Chapter 4, an act to amend Sections 245.5, 246, and 1182.12 of the Labor Code (hereafter referred to as Senate Bill 3), relating to labor, requiring a minimum wage of $15.50 per hour effective December 22, 2022.

POLICY CONTEXT
Recommendations in this report are following Senate Bill 3 (Attachment B).

DISCUSSION
Background
A qualified supplemental or temporary workforce is instrumental to the City of San Luis Obispo’s ability to provide consistent services to the community by adjusting more easily and quickly to workload fluctuations, unexpected vacancies, leaves of absence, or demands from limited-term projects, seasonal, or peak periods. A supplemental workforce also provides programs that would otherwise be difficult to staff due to the intermittent, seasonal, or non-traditional work hours (e.g., early mornings, weekends, evenings, etc.). For example, the City’s Parks and Recreation Department typically employs about 150 supplemental, part-time (less than 30 hours per week on average) employees at any given time. While many of these employees are seasonal (working only three to five months), they sustain programs and services essential to the community.

Examples of these programs are providing before and after school care, summer children’s camps, ensuring pool safety, special events, senior programs, and maintenance of the golf course and open space.

Item 5f
Departments across the organization utilize supplemental staff, and in some cases, the City has experienced increasing difficulty recruiting and retaining qualified candidates. In particular, supplemental positions that require certifications or State licenses, such as childcare teachers and lifeguards, have been particularly challenging to fill during the past few years. During the 2020 minimum wage update, staff made significant adjustments to the salary ranges associated with these classifications. Since the compensation changes have been implemented, there have been fewer recruitment and retention issues. There continue to be staffing shortages for certain positions, such as lifeguards. The shortages appear to be related to specific shift times, which staff view as a programmatic concern as opposed to a compensation concern.

Supplemental Salary Schedule Reflects Minimum Wage Increase During the first two years of Senate Bill 3’s impacts, the City’s response was to eliminate supplemental salary ranges or steps within salary ranges below minimum wage. The effect of this approach is that employees with less experience or qualifications earn the same as employees who have more experience with the City. This approach creates a condition called “compaction,” which describes a lack of differentiation between more and less seasoned or experienced employees. Staff addressed compaction issues during the second two years (2019 and 2020) of the Fair Wage Act of 2016’s impacts through adjusting the salary model and providing additional increases to impacted positions, such as the childcare career series. Staff have been monitoring recruitment and retention results with the new model and found that it has addressed many identified issues. A provision in Senate Bill 3 states that minimum wage will increase by the lesser of 3.5% or US CPI-W (the United States Bureau of Labor Statistics non-seasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers), with the results rounded to the neared $0.10. This brings the California minimum wage amount to $15.50 for 2023. As a result, staff recommends both minimum wage and compaction driven changes to the supplemental salary schedule for 2023.

Previous Council or Advisory Body Action
Council has been approving updates to minimum wage annually since 2016 based on the Fair Wage Act of 2016. The most recent Council approval was on October 19, 2021, for the 2022 minimum wage changes.

Public Engagement
This item is on the agenda for the October 4, 2022, City Council meeting and will follow all required postings and notifications. The public may comment on this item at or before the meeting.

CONCURRENCE
Human Resources staff worked closely with Parks and Recreation staff to ensure the recommendations will not create additional recruitment and retention issues since the Parks and Recreation Department employs most supplemental employees within the City.

Additionally, the Human Resources staff provided recommendations of classification placement to fiscal officers across all City departments and requested feedback.

Item 5f

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: No Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

Due to the supplemental staff turnover over the past year, departments are able to absorb the cost associated with minimum wage within their appropriated department budgets for supplemental staffing.

ALTERNATIVES

1. Do not adopt the 2023 Minimum Wage Compliant Supplemental Employee Salary Schedule. This is not advised as it would put the City in a position of being non-compliant with State law.

2. Only make legally required updates for minimum wage (Grade 900). This is not advised as it would cause compaction issues as well as recruitment and retention issues

ATTACHMENTS
A - Supplemental Salary Ranges
B - Senate Bill No. 3, Chapter 4 (An act to amend Sections 245.5, 246, and 1182.12 of the Labor Code)

Supplemental Employee Salary Schedule
Classification EEO Category EEO Function Class Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Accounting Asssistant II 6 1 9234 419 22.00 $ 23.16 $ 24.38 $ 25.66 $ 27.01 $ - $ - $ - $ - $ Administrative Aide I 5 1 9172 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Administrative Aide II 6 1 9371 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Administrative Assistant III 6 1 943700 423 24.39 $ 25.68 $ 27.03 $ 28.45 $ 29.95 $ - $ - $ - $ - $ Administrative Specialist 5 1 9472 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Adult Sports Official 5 6 9265 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Aquatics Specialist* 5 6 9461 908 19.50 $ 19.99 $ 20.49 $ 21.00 $ 21.53 $ 22.07 $ 22.62 $ 23.19 $ 23.77 $ Assistant City Attorney 2 1 9473 997 78.13 $ - - - - - - - -Childcare Aide Emergency Sub Afternoon* 5 6 91615 970 19.38 $ 19.86 $ 20.36 $ 20.88 $ 21.40 $ 21.94 $ 22.49 $ 23.05 $ 23.63 $ Childcare Aide Emergency Sub Morning* 5 6 91619 971 23.25 $ 23.84 $ 24.44 $ 25.05 $ 25.68 $ 26.33 $ 26.99 $ 27.66 $ 28.35 $ Childcare Aide* 5 6 9161 900 15.50 $ 15.89 $ 16.29 $ 16.70 $ 17.12 $ 17.55 $ 17.99 $ 18.44 $ 18.90 $ Childcare Teacher Emergency Sub Afternoon* 5 6 92625 972 21.88 $ 22.43 $ 22.99 $ 23.56 $ 24.15 $ 24.75 $ 25.38 $ 26.01 $ 26.66 $ Childcare Teacher Emergency Sub Morning* 5 6 92629 973 26.25 $ 26.91 $ 27.59 $ 28.28 $ 28.98 $ 29.70 $ 30.45 $ 31.22 $ 32.00 $ Childcare Teacher* 5 6 9262 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Commissioner 6 10 9861 990 75.00 $ - - - - - - - -
Engineering Consultant 3 2 9332 980 50.00 $ 51.56 $ 55.00 $ 65.00 $ 75.00 $ - - - - Facilities Aide Farmer's Market 8 2 9292 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Facilities Aide Pool 8 6 9293 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Facilities Assistant 5 6 9264 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Facilities Specialist 5 6 9463 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Facility Host 5 6 9162 900 15.50 $ 15.89 $ 16.29 $ 16.70 $ 17.12 $ 17.55 $ 17.99 $ 18.44 $ 18.90 $ Fire Intern 3 5 9151 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Flood Control Technician 8 2 9287 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ GIS Technician 3 2 9231 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ Hazardous Materials Team Business Manager 3 5 9651 996 28.00 $ 29.00 $ 30.00 $ - - - - - - Head Childcare Teacher Emergency Sub Afternoon* 5 6 93605 974 24.38 $ 24.99 $ 25.61 $ 26.25 $ 26.91 $ 27.59 $ 28.28 $ 28.99 $ 29.71 $ Head Childcare Teacher Emergency Sub Morning* 5 6 93609 975 29.25 $ 29.99 $ 30.74 $ 31.50 $ 32.30 $ 33.11 $ 33.93 $ 34.79 $ 35.66 $ Head Childcare Teacher* 5 6 9360 908 19.50 $ 19.99 $ 20.49 $ 21.00 $ 21.53 $ 22.07 $ 22.62 $ 23.19 $ 23.77 $ Head Lifeguard* 5 6 9351 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Human Resources Specialist 5 1 932401 261 29.94 $ 31.51 $ 33.18 $ 34.93 $ 36.76 $ - $ - $ - $ - $ Intern I 5 1 9111 900 15.50 $ 15.89 $ 16.29 $ 16.70 $ 17.12 $ 17.55 $ 17.99 $ 18.44 $ 18.90 $ Intern II 5 1 9211 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Intern III 5 1 9311 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Intern IV 6 1 9411 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ IT Assistant Help Desk 5 1 9232 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ Landscape Inspector 3 2 9282 914 22.50 $ 23.06 $ 23.64 $ 24.23 $ 24.84 $ 25.46 $ 26.10 $ 26.75 $ 27.42 $ Lead Parking Attendant 8 2 9471 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Lifeguard Dock Pay* 5 6 92519 900 15.50 $ - - - - - - - -Lifeguard* 5 6 9251 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Open Space Technician 8 6 9289 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Parking Ambassador 8 2 9271 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Parking Enforcement Officer 3 2 9266 420 22.58 $ 23.76 $ 25.01 $ 26.33 $ 27.71 $ - - - - Parks Maintenance Aide I 8 2 9182 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Parks Maintenance Aide II 8 2 9281 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ KeyBlue = P&R Positions * = Classifications that work with children (AB 218 doesn't apply)

Ranger Services Worker 8 6 9181 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Rec Cashier* 5 6 9171 900 15.50 $ 15.89 $ 16.29 $ 16.70 $ 17.12 $ 17.55 $ 17.99 $ 18.44 $ $ 18.90 Recording Secretary 6 10 9272 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ $ 20.10Skate Park Ambassador 8 6 9290 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ $ 22.54SNAP 3 4 9352 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ $ 24.98Special Swim Instructor* 5 6 9369 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ $ 22.54Swim Instructor* 5 6 9263 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ $ 21.33Transit Coordinator 6 2 944406 426 26.38 $ 27.76 $ 29.23 $ 30.76 $ 32.39 $ - $ - $ - $ $ - Tree Care Specialist I 8 2 9192 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ $ 20.10 Tree Care Specialist II 8 2 9294 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ $ 22.54Water Quality Lab Aide 3 13 9141 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ $ 20.10Youth Sports Official* 5 6 9261 900 15.50 $ 15.89 $ 16.29 $ 16.70 $ 17.12 $ 17.55 $ 17.99 $ 18.44 $ $ 18.90 ** CalPERS Retired Annuitants will be paid in accordance with the Regular and Contract Salary Schedule per CalPERS Rules and Regulations Effective 12/22/2022

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SB-3 Minimum wage: in-home supportive services: paid sick days. (2015-2016) Senate Bill No. 3
CHAPTER 4
An act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor. [ Approved by Governor April 04, 2016. Filed with Secretary of State April 04, 2016. ] LEGISLATIVE COUNSELʹS DIGEST
SB 3, Leno. Minimum wage: in-home supportive services: paid sick days. (1) Under existing law, the Healthy Workplaces, Healthy Families Act of 2014, an employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days, as specified. Existing law requires an employee to accrue paid sick days at the rate of not less than one hour per every 30 hours worked subject to specified use and accrual limitations.

For the purposes of the act, an “employee” does not include a provider of in-home supportive services, as described.

This bill, on and after July 1, 2018, would entitle a provider of in-home supportive services who works in California for 30 or more days within a year from the commencement of employment to paid sick days, subject to specified full amount of leave time amounts and that rate of accrual. The bill would require the State Department of Social Services, in consultation with stakeholders, to convene a workgroup to implement paid sick leave for inhome supportive services providers and to issue guidance in that regard by December 1, 2017. The bill would authorize the department to implement that paid sick leave without complying with the Administrative Procedure Act.
(2) On and after July 1, 2014, existing law requires the minimum wage for all industries to be not less than $9 per hour. On and after January 1, 2016, existing law requires the minimum wage for all industries to be not less than $10 per hour.

This bill would require the minimum wage for all industries to not be less than specified amounts to be increased from January 1, 2017, to January 1, 2022, inclusive, for employers employing 26 or more employees and from January 1, 2018, to January 1, 2023, inclusive, for employers employing 25 or fewer employees, except when the scheduled increases are temporarily suspended by the Governor, based on certain determinations. The bill would also require the Director of Finance, after the last scheduled minimum wage increase, to annually adjust the minimum wage under a specified formula.

On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is a specified amount for employers employing 26 or more employees, the bill would require the Director of Finance to annually determine, based on certain factors, whether economic conditions can support a scheduled minimum wage increase and certify that determination to the Governor and the Legislature. The bill would also require the State Board of Equalization to publish specified retail sales and use tax information on its Internet Web site to be used by the Director of Finance in making that determination.

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On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is a specified amount for employers employing 26 or more employees, in order to ensure that the General Fund can support the next scheduled minimum wage increase, the bill would also require the Director of Finance to annually determine and certify to the Governor and the Legislature whether the General Fund would be in a deficit in the current fiscal year, or in either of the following 2 fiscal years.

Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 245.5 of the Labor Code is amended to read:
245.5. As used in this article:
(a) “Employee” does not include the following:
(1) An employee covered by a valid collective bargaining agreement if the agreement expressly provides for the wages, hours of work, and working conditions of employees, and expressly provides for paid sick days or a paid leave or paid time off policy that permits the use of sick days for those employees, final and binding arbitration of disputes concerning the application of its paid sick days provisions, premium wage rates for all overtime hours worked, and regular hourly rate of pay of not less than 30 percent more than the state minimum wage rate.
(2) An employee in the construction industry covered by a valid collective bargaining agreement if the agreement expressly provides for the wages, hours of work, and working conditions of employees, premium wage rates for all overtime hours worked, and regular hourly pay of not less than 30 percent more than the state minimum wage rate, and the agreement either (A) was entered into before January 1, 2015, or (B) expressly waives the requirements of this article in clear and unambiguous terms. For purposes of this subparagraph, “employee in the construction industry” means an employee performing work associated with construction, including work involving alteration, demolition, building, excavation, renovation, remodeling, maintenance, improvement, repair work, and any other work as described by Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, and other similar or related occupations or trades.
(3) An individual employed by an air carrier as a flight deck or cabin crew member that is subject to the provisions of Title II of the federal Railway Labor Act (45 U.S.C. Sec. 151 et seq.), provided that the individual is provided with compensated time off equal to or exceeding the amount established in paragraph (1) of subdivision (b) of Section 246.
(4) An employee of the state, city, county, city and county, district, or any other public entity who is a recipient of a retirement allowance and employed without reinstatement into his or her respective retirement system pursuant to either Article 8 (commencing with Section 21220) of Chapter 12 of Part 3 of Division 5 of Title 2 of the Government Code, or Article 8 (commencing with Section 31680) of Chapter 3 of Part 3 of Division 4 of Title 3 of the Government Code.
(b) “Employer” means any person employing another under any appointment or contract of hire and includes the state, political subdivisions of the state, and municipalities. (c) “Family member” means any of the following:
(1) A child, which for purposes of this article means a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis. This definition of a child is applicable regardless of age or dependency status.
(2) A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child.
(3) A spouse.
(4) A registered domestic partner.
(5) A grandparent.
(6) A grandchild.

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(7) A sibling.
(d) “Health care provider” has the same meaning as defined in paragraph (6) of subdivision (c) of Section 12945.2 of the Government Code.
(e) “Paid sick days” means time that is compensated at the same wage as the employee normally earns during regular work hours and is provided by an employer to an employee for the purposes described in Section 246.5.

SEC. 2. Section 246 of the Labor Code is amended to read:
246. (a) (1) An employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days as specified in this section.
(2) On and after July 1, 2018, a provider of in-home supportive services under Section 14132.95, 14132.952, or 14132.956 of, or Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the Welfare and Institutions Code, who works in California for 30 or more days within a year from the commencement of employment is entitled to paid sick days as specified in subdivision (e) and subject to the rate of accrual in paragraph (1) of subdivision (b).
(b) (1) An employee shall accrue paid sick days at the rate of not less than one hour per every 30 hours worked, beginning at the commencement of employment or the operative date of this article, whichever is later, subject to the use and accrual limitations set forth in this section. (2) An employee who is exempt from overtime requirements as an administrative, executive, or professional employee under a wage order of the Industrial Welfare Commission is deemed to work 40 hours per workweek for the purposes of this section, unless the employee’s normal workweek is less than 40 hours, in which case the employee shall accrue paid sick days based upon that normal workweek. (3) An employer may use a different accrual method, other than providing one hour per every 30 hours worked, provided that the accrual is on a regular basis so that an employee has no less than 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment or each calendar year, or in each 12-month period.
(4) An employer may satisfy the accrual requirements of this section by providing not less than 24 hours or three days of paid sick leave that is available to the employee to use by the completion of his or her 120th calendar day of employment.
(c) An employee shall be entitled to use accrued paid sick days beginning on the 90th day of employment, after which day the employee may use paid sick days as they are accrued. (d) Accrued paid sick days shall carry over to the following year of employment. However, an employer may limit an employee’s use of accrued paid sick days to 24 hours or three days in each year of employment, calendar year, or 12-month period. This section shall be satisfied and no accrual or carryover is required if the full amount of leave is received at the beginning of each year of employment, calendar year, or 12-month period. The term “full amount of leave” means three days or 24 hours.
(e) For a provider of in-home supportive services under Section 14132.95, 14132.952, or 14132.956 of, or Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the Welfare and Institutions Code, the term “full amount of leave” is defined as follows:
(1) Eight hours or one day in each year of employment, calendar year, or 12-month period beginning July 1, 2018.
(2) Sixteen hours or two days in each year of employment, calendar year, or 12-month period beginning when the minimum wage, as set forth in paragraph (1) of subdivision (b) of Section 1182.12 and accounting for any years postponed under subparagraph (D) of paragraph (3) of subdivision (d) of Section 1182.12, has reached thirteen dollars ($13) per hour.
(3) Twenty-four hours or three days in each year of employment, calendar year, or 12-month period beginning when the minimum wage, as set forth in paragraph (1) of subdivision (b) of Section 1182.12 and accounting for any years postponed under subparagraph (D) of paragraph (3) of subdivision (d) of Section 1182.12, has reached fifteen dollars ($15) per hour.
(f) An employer is not required to provide additional paid sick days pursuant to this section if the employer has a Bill Text - SB-3 Minimum wage: in-home supportive services: paid sick... https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201... 3 of 7 9/8/2022, 11:54 AM

paid leave policy or paid time off policy, the employer makes available an amount of leave applicable to employees that may be used for the same purposes and under the same conditions as specified in this section, and the policy satisfies one of the following:
(1) Satisfies the accrual, carryover, and use requirements of this section. (2) Provided paid sick leave or paid time off to a class of employees before January 1, 2015, pursuant to a sick leave policy or paid time off policy that used an accrual method different than providing one hour per 30 hours worked, provided that the accrual is on a regular basis so that an employee, including an employee hired into that class after January 1, 2015, has no less than one day or eight hours of accrued sick leave or paid time off within three months of employment of each calendar year, or each 12-month period, and the employee was eligible to earn at least three days or 24 hours of sick leave or paid time off within nine months of employment.

If an employer modifies the accrual method used in the policy it had in place prior to January 1, 2015, the employer shall comply with any accrual method set forth in subdivision (b) or provide the full amount of leave at the beginning of each year of employment, calendar year, or 12-month period. This section does not prohibit the employer from increasing the accrual amount or rate for a class of employees covered by this subdivision. (3) Notwithstanding any other law, sick leave benefits provided pursuant to the provisions of Sections 19859 to 19868.3, inclusive, of the Government Code, or annual leave benefits provided pursuant to the provisions of Sections 19858.3 to 19858.7, inclusive, of the Government Code, or by provisions of a memorandum of understanding reached pursuant to Section 3517.5 that incorporate or supersede provisions of Section 19859 to 19868.3, inclusive, or Sections 19858.3 to 19858.7, inclusive of the Government Code, meet the requirements of this section.
(g) (1) Except as specified in paragraph (2), an employer is not required to provide compensation to an employee for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from employment.
(2) If an employee separates from an employer and is rehired by the employer within one year from the date of separation, previously accrued and unused paid sick days shall be reinstated. The employee shall be entitled to use those previously accrued and unused paid sick days and to accrue additional paid sick days upon rehiring, subject to the use and accrual limitations set forth in this section. An employer is not required to reinstate accrued paid time off to an employee that was paid out at the time of termination, resignation, or separation of employment.
(h) An employer may lend paid sick days to an employee in advance of accrual, at the employer’s discretion and with proper documentation.
(i) An employer shall provide an employee with written notice that sets forth the amount of paid sick leave available, or paid time off leave an employer provides in lieu of sick leave, for use on either the employee’s itemized wage statement described in Section 226 or in a separate writing provided on the designated pay date with the employee’s payment of wages. If an employer provides unlimited paid sick leave or unlimited paid time off to an employee, the employer may satisfy this section by indicating on the notice or the employee’s itemized wage statement “unlimited.” The penalties described in this article for a violation of this subdivision shall be in lieu of the penalties for a violation of Section 226. This subdivision shall apply to employers covered by Wage Order 11 or 12 of the Industrial Welfare Commission only on and after January 21, 2016. (j) An employer has no obligation under this section to allow an employee’s total accrual of paid sick leave to exceed 48 hours or 6 days, provided that an employee’s rights to accrue and use paid sick leave are not limited other than as allowed under this section.
(k) An employee may determine how much paid sick leave he or she needs to use, provided that an employer may set a reasonable minimum increment, not to exceed two hours, for the use of paid sick leave. (l) For the purposes of this section, an employer shall calculate paid sick leave using any of the following calculations:
(1) Paid sick time for nonexempt employees shall be calculated in the same manner as the regular rate of pay for the workweek in which the employee uses paid sick time, whether or not the employee actually works overtime in that workweek.
(2) Paid sick time for nonexempt employees shall be calculated by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90 days of employment.

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(3) Paid sick time for exempt employees shall be calculated in the same manner as the employer calculates wages for other forms of paid leave time.
(m) If the need for paid sick leave is foreseeable, the employee shall provide reasonable advance notification. If the need for paid sick leave is unforeseeable, the employee shall provide notice of the need for the leave as soon as practicable.
(n) An employer shall provide payment for sick leave taken by an employee no later than the payday for the next regular payroll period after the sick leave was taken.
(o) The State Department of Social Services, in consultation with stakeholders, shall convene a workgroup to implement paid sick leave for in-home supportive services providers as specified in this section. This workgroup shall finish its implementation work by November 1, 2017, and the State Department of Social Services shall issue guidance such as an all-county letter or similar instructions by December 1, 2017. (p) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services may implement, interpret, or make specific this section by means of an all-county letter, or similar instructions, without taking any regulatory action.

SEC. 3. Section 1182.12 of the Labor Code is amended to read:
1182.12. (a) Notwithstanding any other provision of this part, on and after July 1, 2014, the minimum wage for all industries shall be not less than nine dollars ($9) per hour, and on and after January 1, 2016, the minimum wage for all industries shall be not less than ten dollars ($10) per hour. (b) Notwithstanding subdivision (a), the minimum wage for all industries shall not be less than the amounts set forth in this subdivision, except when the scheduled increases in paragraphs (1) and (2) are temporarily suspended under subdivision (d).
(1) For any employer who employs 26 or more employees, the minimum wage shall be as follows:
(A) From January 1, 2017, to December 31, 2017, inclusive,—ten dollars and fifty cents ($10.50) per hour. (B) From January 1, 2018, to December 31, 2018, inclusive,—eleven dollars ($11) per hour. (C) From January 1, 2019, to December 31, 2019, inclusive,—twelve dollars ($12) per hour. (D) From January 1, 2020, to December 31, 2020, inclusive,—thirteen dollars ($13) per hour. (E) From January 1, 2021, to December 31, 2021, inclusive,—fourteen dollars ($14) per hour. (F) From January 1, 2022, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour. (2) For any employer who employs 25 or fewer employees, the minimum wage shall be as follows:
(A) From January 1, 2018, to December 31, 2018, inclusive,—ten dollars and fifty cents ($10.50) per hour. (B) From January 1, 2019, to December 31, 2019, inclusive,—eleven dollars ($11) per hour. (C) From January 1, 2020, to December 31, 2020, inclusive,—twelve dollars ($12) per hour. (D) From January 1, 2021, to December 31, 2021, inclusive,—thirteen dollars ($13) per hour. (E) From January 1, 2022, to December 31, 2022, inclusive,—fourteen dollars ($14) per hour. (F) From January 1, 2023, and until adjusted by subdivision (c)—fifteen dollars ($15) per hour. (3) For purposes of this subdivision, “employer” means any person who directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, hours, or working conditions of any person. For purposes of this subdivision, “employer” includes the state, political subdivisions of the state, and municipalities.
(4) Employees who are treated as employed by a single qualified taxpayer under subdivision (h) of Section 23626 of the Revenue and Taxation Code, as it read on the effective date of this section, shall be considered employees of that taxpayer for purposes of this subdivision.

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(c) (1) Following the implementation of the minimum wage increase specified in subparagraph (F) of paragraph (2) of subdivision (b), on or before August 1 of that year, and on or before each August 1 thereafter, the Director of Finance shall calculate an adjusted minimum wage. The calculation shall increase the minimum wage by the lesser of 3.5 percent and the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S.

CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted minimum wage increase calculated under this subdivision shall take effect on the following January 1. (2) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W is negative, there shall be no increase or decrease in the minimum wage pursuant to this subdivision on the following January 1.
(3) (A) Notwithstanding the implementation timing described in paragraph (1) of this subdivision, if the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W exceeds 7 percent in the first year that the minimum wage specified in subparagraph (F) of paragraph (1) of subdivision (b) is implemented, the indexing provisions described in paragraph (1) of this subdivision shall be implemented immediately, such that the indexing will be effective on the following January 1. (B) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W exceeds 7 percent in the first year that the minimum wage specified in subparagraph (F) of paragraph (1) of subdivision (b) is implemented, notwithstanding any other law, for employers with 25 or fewer employees the minimum wage shall be set equal to the minimum wage for employers with 26 or more employees, effective on the following January 1, and the minimum wage increase specified in subparagraph (F) of paragraph (2) of subdivision (b) shall be considered to have been implemented for purposes of this subdivision.
(d) (1) On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is fifteen dollars ($15) per hour pursuant to paragraph (1) of subdivision (b), to ensure that economic conditions can support a minimum wage increase, the Director of Finance shall annually make a determination and certify to the Governor and the Legislature whether each of the following conditions is met:
(A) Total nonfarm employment for California, seasonally adjusted, decreased over the three-month period from April to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in March, as reported by the Employment Development Department.
(B) Total nonfarm employment for California, seasonally adjusted, decreased over the six-month period from January to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in December, as reported by the Employment Development Department.
(C) Retail sales and use tax cash receipts from a 3.9375-percent tax rate for the July 1 to June 30, inclusive, period ending one month prior to the July 28 determination is less than retail sales and use tax cash receipts from a 3.9375-percent tax rate for the July 1 to June 30, inclusive, period ending 13 months prior to the July 28 determination. The calculation for the condition specified in this subparagraph shall be made as follows:
(i) The State Board of Equalization shall publish by the 10th of each month on its Internet Web site the total retail sales (sales before adjustments) for the prior month derived from their daily retail sales and use tax reports.
(ii) The State Board of Equalization shall publish by the 10th of each month on its Internet Web site the monthly factor required to convert the prior month’s retail sales and use tax total from all tax rates to a retail sales and use tax total from a 3.9375-percent tax rate. (iii) The Department of Finance shall multiply the monthly total from clause (i) by the monthly factor from clause (ii) for each month.
(iv) The Department of Finance shall sum the monthly totals calculated in clause (iii) to calculate the 12- month July 1 to June 30, inclusive, totals needed for the comparison in this subparagraph.

Bill Text - SB-3 Minimum wage: in-home supportive services: paid sick... https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201... 6 of 7 9/8/2022, 11:54 AM

(2) (A) On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is fifteen dollars ($15) per hour pursuant to paragraph (1) of subdivision (b), to ensure that the state General Fund fiscal condition can support the next scheduled minimum wage increase, the Director of Finance shall annually make a determination and certify to the Governor and the Legislature whether the state General Fund would be in a deficit in the current fiscal year, or in either of the following two fiscal years. (B) For purposes of this subdivision, deficit is defined as a negative balance in the Special Fund for Economic Uncertainties, as provided for in Section 16418 of the Government Code, that exceeds, in absolute value, 1 percent of total state General Fund revenue and transfers, based on the most recent Department of Finance estimates required by Section 12.5 of Article IV of the California Constitution. For purposes of this subdivision, the estimates shall include the assumption that only the minimum wage increases scheduled for the following calendar year pursuant to subdivision (b) will be implemented. (3) (A) (i) If, for any year, the condition in either subparagraph (A) or (B) of paragraph (1) is met, and if the condition in subparagraph (C) of paragraph (1) is met, the Governor may, on or before August 1 of that year, notify the Legislature of an initial determination to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year.
(ii) If the Director of Finance certifies under paragraph (2) that the state General Fund would be in a deficit in the current fiscal year, or in either of the following two fiscal years, the Governor may, on or before August 1 of that fiscal year, notify the Legislature of an initial determination to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year. (B) If the Governor provides notice to the Legislature pursuant to subparagraph (A), the Governor shall, on September 1 of any such year, make a final determination whether to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year. The determination to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year shall be made by proclamation.
(C) The Governor may temporarily suspend scheduled minimum wage increases pursuant to clause (ii) of subparagraph (A) no more than two times.
(D) If the Governor makes a final determination to temporarily suspend the scheduled minimum wage increases pursuant to subdivision (b) for the following year, all dates specified in subdivision (b) that are subsequent to the September 1 final determination date shall be postponed by an additional year.

Bill Text - SB-3 Minimum wage: in-home supportive services: paid sick... https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201... 7 of 7 9/8/2022, 11:54 AM

Item 6a
Department: Finance
Cost Center: 2002
For Agenda of: 10/4/2022
Placement: Business
Estimated Time: 60
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: FY 2021-22 UNAUDITED YEAR-END REPORT AND REVIEW OF THE 2023-25 FINANCIAL PLAN CALENDAR

RECOMMENDATION

1. Receive and file the FY 2021-22 Year-End Budget Report and unaudited year-end results; and

2. Adopt a Draft Resolution entitled “A Resolution of the City Council of San Luis Obispo, California, approving amendments to the 2022-23 Budget Appropriations.

3. Receive and discuss the 2023-25 Financial Plan calendar in preparation for the 2023- 25 goal-setting process.

POLICY CONTEXT
The City’s budget policies1require that City Council review the City’s budget and financial condition through periodic reports. Some appropriated expenses consistent with Major City Goals have been carried over into the 2022-2023 fiscal year as they were not completed last fiscal year2. Additionally, this item recommends allocation of unassigned fund balance and the creation of a new capital improvement project, both of which require Council approval.

REPORT-IN-BRIEF
The 2021-22 Year-End Budget Report (Attachment A) provides an overview of the City’s unaudited financial position through the fourth quarter of FY 2021-22 (July 1, 2021 – June 30, 2022). Based on the favorable year end results shown in the report, staff recommend making three budget amendments including (1) Creation of a Capital Project for City Facility Remodels (2) Revitalization of the Revenue Stabilization Reserve and (3) Appropriation of Local Revenue Measure Unassigned Fund Balance.

1 Pg.23, 2021-23 Financial Plan: Interim Reporting Policy “B” The City will prepare and issue timely interim reports on the City’s fiscal status to the Council and staff. This includes online access to the City’s financial management system by City staff; monthly reports to program managers; more formal quarterly reports to the Council and Departments heads, mid-year budget reviews; and interim annual reports. 2Pg 21, 2021-23 Financial Plan: Financial Plan Purpose and Organization Policy “E”

Item 6a

DISCUSSION
2021-22 Year End Report
The 2021-22 Year-End Budget Report (Attachment A) shows that all funds ended the year in good financial standing. Major tax revenue sources exceeded projections and actual expenditures came in below budget for the General Fund.

The Parking Fund ended the year with revenues exceeding projections by about 13% due to parking programs returning to pre-COVID activity levels quicker than anticipated. The Water and Sewer Funds also ended the year in a positive position with revenues higher than anticipated mainly due to higher irrigation demand associated with a dry winter.

Despite some one-time over-realized revenue, all three of these enterprise funds are facing the realities of inflation and supply chain shortages in their operations that may draw on reserves. The Transit Fund (Transit) ended the year with a negative variance in forecasted revenues, primarily due to modified operations following the peak of the COVID-19 pandemic and labor shortages. Fortunately, this was partially offset by reduced operating expenditures due to continued reduced service levels.

Since the City Council adopts a two-year budget, the City’s Financial Plan policies3 stipulate that operating program appropriations not spent during the first year may be carried over into the second year for specific purposes and with the approval of the City Manager. The approved reappropriations are listed in Attachment A. Included in the report are also an update on Departmental Performance Measures and Major City Goals.

Recommendation – Creation of a Capital Project for City Facility Remodels The City approved 65 new positions with the 2021-23 Financial Plan. While remote work flexibility has allowed the City to bring on many of these new employees, the current City Facilities are not designed to seat the number of staff they need to accommodate on an ongoing basis. With the 2021-23 Financial Plan, the Council appropriated $220,000 to create additional workstations for staff located at 919 Palm Street. Additionally, one of the recommendations for 2021-22 carryover balance is to fund a remodel and optimization of space in City Hall’s lower-level Finance/IT Office area (990 Palm Street). This project will maximize existing square footage to create the space for the Information Services Team to unite with Network Services in City Hall and outfit the Finance Department with workstations to balance with staffing levels. The downstairs remodel plays into the larger City-wide space planning efforts and the overall need to create spaces that serve the public and enhance organizational wellbeing.

3 Pg 21, 2021-23 Financial Plan: Financial Plan Purpose and Organization Policy “E”

Item 6a
The budget for the 919 Palm Street remodel was originally placed in the General Fund Operating Budget. Given the order of magnitude of the project4 and the unknown duration of the remodel, staff recommend transferring the remaining budget as well as an additional $600,000 for the 990 Palm Street remodel into the Capital Budget (Attachment B - Section 1). Capital Budget remains allocated to the project throughout the life of the project and allows for better tracking and control of expenditures pertaining to the overall effort.

Recommendation – Revitalization of the Revenue Stabilization Reserve A stabilization reserve is a mechanism to insulate the City from large fluctuations in tax revenue. It will allow the City to manage a potential economic downturn without immediately utilizing the operating reserve or reducing operating budgets curtailing services to the community. The City maintained a Revenue Stabilization Reserve through the Fiscal Health Response Plan, but eliminated it with the 2021-23 Financial Plan Supplement. Given the economic uncertainty due to high inflation, diminishing consumer confidence and ongoing labor market and supply shortages, staff recommend reestablishing the reserve, especially as the City grows more reliant on sales related taxes that are the most heavily impacted by economic downturns. Given that the one-time overrealization of 2021-22 revenue were from tax resources, staff recommend assigning some of the funding to re-establish the reserve (Attachment B – Section 2). The Water and Sewer Enterprise Funds maintain a similar reserve called the “Rate Stabilization Reserve” which have greatly assisted in maintaining operating levels during revenue downturns due to circumstances such as droughts.

Table 1: Establishment of Revenue Stabilization Reserve Amount Appropriation of Tax Revenue Above Projections $ 2,000,0005 Recommendation - Appropriation of Local Revenue Measure Unassigned Fund Balance
The Local Revenue Measure (LRM) Fund is a sub-fund of the General Fund to account for the local transaction tax from Measure G-20. The revenue measure helps protect and maintain services and public infrastructure identified by the community such as community safety, creek protection, addressing homelessness, keeping public areas safe and clean, retaining local businesses, youth/senior services, streets, open space/natural areas and other vital services and facilities.

4 Construction projects and equipment purchases which cost $25,000 or more will be included in the CIP and are accounted for in the Capital Outlay Fund. Minor capital outlays of less than $25,000 will be included with the operating program budgets.
5 This amount is intended to be deposited into the 115 Trust Fund as it will generate the highest yield. If it is needed as a revenue reserve, the City will pay its budgeted unfunded liability costs out of the 115 trust. If it is not needed, the funds will remain in the 115 Trust and advance the City’s policy priority of allocating one time funding to pay down the City’s unfunded pension liability.

Item 6a
As previously presented in the adopted 2022-23 Budget6, $907,000 of FY 2021-22 LRM ending fund balance (due to revenues exceeding expenditures) will be transferred to the capital reserve to maintain the policy level of 20% of the Capital Improvement Plan Budget7. Additionally, given the record high sales tax remittances in FY 2021-22, staff recommend allocating a portion of the unassigned year-end balance towards additional requests that are ready to move forward now and align with the funding intent of the measure. (Attachment B – Section 3). The remaining unassigned fund balance will be considered with the FY 2022-23 mid-year review in February 2023.

ID# Table 2: Use of Local Revenue Measure (LRM) Fund Balance Amount Unaudited 2021-22 LRM Year-End Unassigned Fund Balance $ 3,830,767 1 Transfer to Reserve (per supplemental budget) $ 907,000 2 Type 3 Wildland Engine Replacement Additional Funding $ 85,000 $415,000 is budgeted for CIP ID#46 (Project #1000554) "Fire Heavy Duty Truck (Type 3 Wildland) in FY 2022-23. Due to inflation from the rising costs of commodities and the vehicle market, the existing budget is not sufficient to purchase the specifications needed to replace the current Type 3 fire engine, "Engine 6". An additional $85,000 is needed for a total budget of $500,000 to complete the replacement project.
3 Fire Recruit Academy to Address Paramedic Shortage $ 110,000 Funding to support a previously unplanned recruit academy needed to be held to fill existing firefighter paramedic vacancies. Presently the department has four vacancies and anticipates two additional for a total of six firefighter openings by January 1st, 2023. In addition, a grievance filed by the labor group in accordance with Article 44 Staffing compels hiring minimum 4 firefighter paramedics as part of the resolution process identified by the fire labor/management and HR. 4 Accelerate Fire Pumper (Engine 4) Replacement $ 900,000 The funding request will accelerate Engine 4 Replacement to ensure a sustainable reserve engine fleet. The replacement is currently scheduled in FY 2024-25; however, the aged reserve engine has been encountering more than an expected amount of mechanical issues and may not be a reliable reserve apparatus over the next several years. The current budgeted amount for the replacement project is $780,000 for FY 2024-25. Due to current market conditions, the specifications used to build the most recent Engine replacement (Engine 3) is now expected to cost $900,000. Staff can quickly move on this project to ensure funds get utilized in FY 2022-23. Alternative would be to pursue debt financing to reduce the amount of cash needed in FY 2022-23. 5 Public Works - Contract Coordinator $ 65,846
This funding is being requested to fund a contract staff position of a Public Works Maintenance Contract Coordinator following discussion with the Homeless Steering Committee. This position would assist the department with homeless encampment cleanups and the management of maintenance contracts and CIP projects that do not require engineering support. This position would be funded through 6/30/23. (9-month contract)
TOTAL (lines 1-5) $ 2,067,846
Remaining LRM Fund Unassigned Fund Balance $ 1,762,921

6 2022-23 Supplemental Budget Pg. 102.
https://www.slocity.org/home/showpublisheddocument/32355/637904651318570000 7 2021-23 Fiscal Policy Section 7 – “L”
https://www.slocity.org/home/showpublisheddocument/30516/637957256176570000

Item 6a
2023-25 Financial Plan Schedule
The attached schedule (Attachment C) sets forth the proposed Council goal setting process and detailed schedule for the development of the City's 2023-25 Financial Plan.

As in previous budget processes, staff will provide important information to Council during two meetings in November and January regarding the City’s fiscal outlook, established short- and long-range plans, and economic trends. Staff has begun the process of seeking input from advisory bodies and the public and is evaluating the format of the community forum for the goal setting process. The City’s extensive public input process has been a successful approach in the past and assures the achievement of the fundamental purpose of the City's budgetary process which is “Linking, through public engagement and decision-making processes, the interests of the community to the allocation of financial resources to optimize and achieve the desired results." Below is a list of proposed key Council meeting dates:

Table 3: Key Council Dates
October 4, 2022 Approval of 2023-25 Financial Plan Schedule November 15, 2022 Setting the Stage Workshop & The Strategic Scan January 10, 2023 Budget Foundation Workshop
January 26, 2023 Community Forum
February 7, 2023 Mid-Year report, updated long-term fiscal forecast and Guiding Principles for goal setting
February 11, 2023 Council Goal-Setting Workshop
April 18, 2023 Major City Goal Work Programs & Strategic Budget Direction June 6, 2023 Preliminary Budget Review (and adoption if ready) June 20, 2023 Financial Plan Review/ Adoption
Previous Council or Advisory Body Action
The 2021-23 Financial Plan was adopted by Council on June 1, 2021, and Mid-year changes were approved by Council on February 15, 2022. The Revenue Enhancement Oversight Commission (REOC) met on September 22, 2022, to review the proposed uses of LRM Unassigned Fund Balance. The REOC supports the proposed budget changes as they remain in line with the LRM priorities.

Public Engagement
Public comment on this item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. The Fourth Quarter Financial Report for 2021-22 (Attachment A) will also be posted to the City’s website for public review.

CONCURRENCE
Operating departments were provided the fourth quarter financial results before the preparation of this report. The respective fiscal officers and department analysts reviewed the numbers and have provided department evaluations and review summaries within the report (Attachment A).

Item 6a
The REOC met on September 22, 2022, to review the Local Revenue Measure (LRM) year-end financials and concurs that the recommended uses of LRM funding in this report are consistent with the adopted ballot language.

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: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

Table 4: General Fund Ending Position* (UNAUDITED)
1 A. Beginning Balance $ 47,118,071
2 (+) Revenue/ Transfers In $ 126,099,555
3 (-) Expenditures/Transfers out 8 $ (132,696,399)
4 B. Revenue Over/(under) Expenditures $ (6,596,844)
5 C. Ending Fund Balance (A + B) $ 40,521,227
6 Non-Spendable $ 90,617
7 Committed
8 Policy Reserve Level - 20% of Operating Budget $ 12,014,000 9 Local Revenue Measure Balance (See table 6-a below) $ 5,789,679 10 Insurance Fund Balance $ 1,845,935
11 Assigned to:
12 Encumbrances $ 2,541,892
13 115 Pension Trust Fund $ 2,000,000
14 CalPERS Additional Down-payment (ADP) $ 2,000,000
15 Development Services Designation $ 530,657
16 Other restricted $ 28,637
17 SLO REP $ 3,940,000
18 Economic Development Opportunities9 $ 1,416,441

8 This amount includes over $14 million in one-time budget appropriations from FY 2020-21 unassigned fund balance (R-11307: FY 2021-22 Mid-year Review).
9 Per Resolution 11203, $2.0 million of undesignated fiscal year 2018‐19 General Fund Balance was allocated towards local investment into short term Certificates of Deposit to generate interest for a grant program to help offset the cost of a Tenant Improvement permit. Due to the low interest rate environment that began shortly after, the City’s RFP for the program was not successful and the City did not make these investments. Instead, it appropriated over $250,000 to directly offer credits for TI permits through the TIPP-Fast 2.0 permitting program and continues to seek opportunities to optimize the use of this assigned fund balance. At the end of FY 2021-22, $1.7 million remained in the balance. Staff recommend utilizing some of it to fund carryover requests directly related to Economic Development (See Line 23).

Item 6a
19 D. Unassigned Fund Balance Before Carryover [C - (Lines 6-18)] $ 8,323,370 22 Approved City Manager Carryover Budget Per Council Policies $ 2,573,600 23 Carryover Utilizing Economic Development Funding (see line 18) $ 283,559 24 Proposed Revenue Stabilization Reserve (Recommendation) $ 2,000,000 25 E. Unaudited Year End Fund Balance (D – (Lines 22-24)] $ 3,466,211 26 F. Projected Year End Fund Balance (required for balanced forecast) $ 2,095,000 27 G. Variance from Forecast (E – F)
$
1,371,21110
* Includes Local Revenue Measure and Insurance sub-funds Table 5: Local Revenue Measure Ending Position (UNAUDITED) 1 A. Beginning Balance $ 9,299,971
2 (+) Revenue $ 28,914,503
3 (-) Expenditures (not including encumbrances) $ (32,424,795) 4 B. Revenue Over/(under) Expenditures $ (3,510,292)
5 C. Ending Fund Balance (A + B) $ 5,789,679
6 Assigned to Projects (encumbrances) $ 1,958,912
7 Transfer to Capital Reserve (per supplemental budget) $ 907,000 8 D. Unassigned LRM Fund Balance [C – (Lines 6-7)] $ 2,923,767 9 E. Allocation of Fund Balance (Recommendation) $ 1,160,846 10 F. Unaudited LRM Year End Fund Balance (D- E) $ 1,762,921 11

ALTERNATIVES

1. The Council could direct staff not to adopt the budget changes for FY 2022-23.

Should the adjustments not be approved, the budget will remain unchanged from the adopted 2022-23 Supplemental Budget. This is not recommended because there is immediate need for this funding and there is adequate funding based on the actual revenue from FY 2021-22.

2. The Council could recommend changes to the proposed 2023-25 Financial Plan Budget Calendar. Staff would return on November 15, 2022, with an updated calendar based on Council feedback.

ATTACHMENTS
A – FY 2021-22 Unaudited Year-End Budget Report
B – Draft Resolution amending the FY 2022-23 Budget Allocation

10 It is recommended that these funds remain unappropriated until the final audit numbers are presented in January 2023. Once the final variance from forecast is finalized, staff will likely recommend that these funds be set aside to make an additional one-time payment towards CalPERS which will help offset the 6.1% investment loss announced in July 2022.
11 It is recommended that these funds remain unappropriated until the final audit numbers are presented in January 2023. Once the final variance from forecast is finalized, staff will likely recommend that these funds be set aside to bridge the funding gap for arterial road improvements that are currently approximately $3.5 million short for the 2023-24 project. The arterial roads that are scheduled per the Councils pavement management plan for repaving are Johnson Avenue and Monterey Street.

Item 6a
C – Proposed Budget Calendar for the 2023-25 Financial Plan

Attachment A
Fourth Quarter Financial Report (Year-End)
Fiscal Year 2021-22
Introduction
The fourth quarter and year-end report provides an overview of the City’s financial position through the fourth quarter of FY 2021-22 (July 1, 2021 – June 30, 2022) for the General Fund and the City’s four enterprise funds. Note: The values within this report are unaudited and are subject to change until the City’s audit is complete and the 2021-22 Annual Comprehensive Financial Report is published in December 2022.

Contents
General Fund Overview .....................................2 General Fund Expenditures............................2
General Fund Revenues.................................5 General Fund Ending Position........................8
Budget Carryover: Operating Programs.......10
Other Year-End Recommendations.............12
Administration and Information Technology...14
City Attorney ....................................................18 Finance Department ........................................21 Non-Departmental, Support Services..............23
Human Resources Department........................25
Community Services Group (CSG)....................28
Community Development Department...........29
Parks & Recreation Department......................38
Public Works Department................................42 Solid Waste – AB 939 General Fund ................46
Fire Department...............................................49 Police Department...........................................54 Utilities Department........................................59 A Year in Review ...................................... 59 Accomplishments and Strategic Goal
Updates.................................................... 60 Challenges................................................ 60 Performance Measures ........................... 63
Water Fund.............................................. 64 Sewer Fund .............................................. 66 Parking Fund....................................................69 Transit Fund.....................................................72 Tourism Business Improvement District (TBID)
.........................................................................75 Downtown SLO Business Improvement District
.........................................................................75 Insurance Fund ................................................77 Debt Service.....................................................79 Major City Goal Updates (FY 2021-22 Tasks
Only) ................................................................80

General Fund Overview
General Fund Overview
General Fund Expenditures
Overall, the General Fund finished the year in a positive position and experienced about 8% in net expenditure budget savings. The savings can be associated mainly with staffing vacancies. In addition to the increased turnover due to labor market trends, the City also approved over 60 new positions with the 2021-23 Financial Plan. While most of these new positions were approved to hire on July 1st, 2021, in reality,many were not hired until much later in the year due to the time required for classification analysis, recruitment, interviews, and applicant selection. In some cases, the salary savings were re-purposed to hire temporary or consultant staffing to assist with the workload in the interim. FY 2021-22 also included a very ambitious Major City Goal work plan, and many efforts were not fully achieved by year-end due to the staffing vacancies and competing priorities.

Table 1: Expenditure Overview by Department
Detailed department information and variances explanations can be found in Section 2 of the report, but overall, every department ended the year within the allocated budget. As mentioned above, many departments had significant savings due to vacancies. Both of the Public Safety Departments ended the year within less than 1% of their budgets. This was due to overtime costs and staffing cost increases from labor agreements that were finalized after the financial plan development. * Shown separately in order to reflect a more accurate year-over-year comparison for departments. Line 17 includes the FY 2021-22 one-time $10.2 million additional down payment to CalPERS from the General Fund (R-11307). This cost is distributed annually between the departments based on calculated weights.

FY 2020-21 FY 2022-23
Actual Budget Actual Funds Available % Budget
1 Internal Services
2 Administration/IT $ 7,060,343 $ 9,758,782 $ 8,720,808 $ 1,037,974 11% $ 9,620,216 3 City Attorney $ 897,198 $ 1,395,133 $ 1,356,529 $ 38,604 3% $ 1,132,935 4 Finance $ 1,533,386 $ 1,999,107 $ 1,878,681 $ 120,426 6% $ 2,010,387 5 Non-dept, Support Services $ 1,528,100 $ 1,689,430 $ 622,568 $ 1,066,863 63% $ 2,912,928 6 Human Resources $ 1,215,799 $ 1,620,810 $ 1,608,917 $ 11,894 1% $ 1,480,118 7 Public Safey
8 Fire $ 11,621,200 $ 12,192,029 $ 12,082,748 $ 109,281 1% $ 11,585,358 9 Police $ 13,902,407 $ 15,394,812 $ 15,232,560 $ 162,252 1% $ 16,324,782 10 Community Services Group (CSG)
11 CSG Administration $ 321,209 $ 698,691 $ 585,736 $ 112,955 16% $ 496,566 12 Community Development $ 5,941,116 $ 7,596,883 $ 6,654,625 $ 942,258 12% $ 5,968,524 13 Parks & Recreation $ 3,653,727 $ 4,801,044 $ 4,144,886 $ 656,158 14% $ 4,758,728 14 Public Works $ 11,359,789 $ 14,435,959 $ 13,428,687 $ 1,007,273 7% $ 14,662,503 15 Solid Waste (Utilities) $ 117,439 $ 332,271 $ 170,497 $ 161,774 49% $ 282,743 16 Total $ 59,151,714 $ 71,914,951 $ 66,487,241 $ 5,427,711 8% $ 71,235,788 17 CalPERs Unfunded Liability* $ 9,586,928 $ 20,837,422 $ 20,837,422 0% $ 11,815,513 18 Total $ 68,738,643 $ 92,752,374 $ 87,324,663 $ 5,427,711 6% $ 83,051,301 Index Department FY 2021-22
* Shown seperately in order to reflect a more accurate year-over-year comparision for departments. Line 17 includes the FY 2021-22 onetime $10 million additional downpayment to CalPERs from the General Fund (R-11307). This cost is distributed annually between the departments based on calculated weights.

How to read the budget tables in this report
Budget: Adopted budget plus any encumbrances from prior year(s) or approved budget adjustments made throughout the year.

Actual: Actual expenditures plus any encumbrances or obligated funds that were carried forward to FY 2022-23.

General Fund Overview
Table 2: Expenditure Overview by Type (Category)
Detailed expenditure variances information for each department can be found in Section 2 of the report, but unsurprisingly, most of the savings were in Staffing. Actual staffing expenditures vary greatly based on the amount of turnover throughout the year, position reclassifications, and employee health benefit options. Over the last six years, actual annual salary savings ranged from 3% to 7%; therefore, the City assumes a conservative 3% savings in the General Fund forecast. Considering the staffing savings assumptions incorporated in the long-term fiscal forecast, only $1.6 M (2.2%) are actual savings from approved overall General Fund budget.

Table 3: FY 2021-22 Salary Savings
2021-22 Salary Budget 2021-22 Actual Funds Available (or "Savings") a $70,982,840 $67,684,803 $ 3,298,037
b Assumed salary savings (3% of initial budget) $ 1,697,000 c Additional salary savings (a-b) = 2.2% $ 1,601,037
The City’s Contract Services account broadly includes budget for annual service contracts and one-time consultant services, along with Major City Goal tasksthat may not have been entirely scoped out at budget development. The majority of the savings in FY 2021-22 can be associated with Major City Goals or Departmental strategic goals that were not completed in the first year of the Financial Plan. Because the City follows a two-year Financial Plan, the City Manager can approve the carryover of these budgets if the City’s year-end financial condition allows. This year, departments requested about $1.25 million in carryover of specific budget items that were not achieved in FY 2022-23.

Overages in Utilities are mainly due to increased use of water throughout the City’s parks and landscaped areas triggered by the drought. As a whole, the General Fund water budget was over budget by about $215,000; fortunately, this was offset by savings in electricity. Electricity savings were mainly realized in the Parks Maintenance division due to a reduced level of outdoor programming with COVID restrictions, especially around peak hours.

FY 2020-21 FY 2022-23
Actual Budget Actual Funds Available % Budget
Staffing $ 53,636,450 $ 70,982,840 $ 67,673,758 $ 3,309,082 5% $ 66,198,097 Contract Services $ 6,503,545 $ 11,306,192 $ 9,586,014 $ 1,720,179 15% $ 7,816,094 Other Operating Expenses $ 4,977,807 $ 7,597,348 $ 6,872,261 $ 725,087 10% $ 6,073,382 Utilities $ 2,529,179 $ 2,865,838 $ 2,923,238 $ (57,400) -2% $ 2,963,728 Covid-19 $ 1,091,661 $ 155 $ 269,393 $ (269,237) $ -
TOTAL $ 68,738,643 $ 92,752,374 $ 87,324,663 $ 5,427,711 6% $ 83,051,301 Expenditure Type FY 2021-22

General Fund Overview
Graph A: Year-over-year Expenditures by Type:
*Operating expenditures only. Excludes insurance, debt, capital, and CalPERS additional down payments (ADP) made in FY 2018- 19 and FY 2021-22.

While many factors account for annual budget fluctuations, this graph provides a high-level illustration of the year-over-year growth in the General Fund Operating Expenditures. Prior to FY 2021-22, average operating budget growth hovered around 2.9% per year which was about 2.3% lower than the average annual CPI (Los Angeles Riverside) for the same period (5.2%). Growth spiked in FY 2021-22 due to a number of factors discussed below, thus increasing the six-year average to 4.8%.

1. The passage of Measure G-20 increased the local transaction tax by 150%. The local sales tax measure was recommended in order to help offset increasing costs and the infrastructure needs of a growing city. While most of this new funding was allocated to the Capital Improvement Plan, there are also needs on the operating side in order to deliver the CIP and maintain the City’s growing infrastructure and deliver a multitude of services throughout the community.

2. A “catch-up” on costs of services. Over the 12 months ended June 2022, the Consumer Price Index for All Urban Consumers increased 9.1%. The 9.1% increase index was the largest 12-month increase since the 12-month period ending November 1981. FY 2021-22 includes some of these increases, but the base budget will increase even more significantly with the 2022-23 Budget.

In many ways, the FY 2021-22 marked a transition year for the City organization. It restored the work postponed by the pandemic and allowed the City to reinvest in its core services and important Major City Goal efforts and strategic initiatives. The next several years will concentrate on transforming the City’s role in finding a balance between the delivery of service and programs and capital programs while remaining an attractive employer in a rapidly changing labor market.

Economic
Growth
Tax Revenue City
Expenditures

General Fund Overview
General Fund Revenues
Table 4: General Fund Revenue Overview
The table below shows an overview of the General Fund revenue. More detail about fee revenue can be found within the respective department write-up in Section 2 *Special Revenue Funds
Sales and Use Tax Revenue: Sales and use tax revenue far exceeded the City’s (and its Sales Tax Consultants) projections for the year. This is consistent with trends across the state. High consumer spending accelerated by savings accumulation and pent-up demand continued with the gradual opening of the economy, the return of students to in-class sessions, and renewed travel activity. High inflation through labor and supply chain issues intertwined with Fed monetary policy to counteract inflation and a war driving gas prices to all-time highs, all greatly impacted sales tax. A highly vulnerable revenue stream, sales tax remains a cautionary tale. Although unemployment rates remain low, fuel price instability, stock market woes, and rising consumer prices (as raw materials and components are more expensive) could further weaken consumer confidence and households will likely pull back on discretionary purchases as 2023 arrives. International supply chain issues show a steady recovery, but employee costs and labor shortages may impact future spending patterns, especially in the City’s tourism realm as household income realities catch up with pent-up demand from the pandemic lock-down.

Table 5: Year-over-year Sales Tax Comparison – FY 2021-22 Q3 (Bradley Burns) The graph below shows the change in sales tax by major business group for Q1 2022 (January-March 2022). For the full report, visit slocity.org/finance.
2019-20 Actual 2020-21
Actual
Budget Actual Variance %
1 Tax and Franchise Revenue $ 61,858,227 $ 72,785,610 $ 89,230,869 $ 96,334,907 $ 7,104,038 8.0% 2 Local Revenue Measure G $ 7,554,375 $ 12,779,713 $ 25,810,000 $ 28,914,503 $ 3,104,503 12.0% 3 Sales Tax (Bradley Burns) $ 16,571,064 $ 20,067,740 $ 20,790,779 $ 22,228,537 $ 1,437,758 6.9% 4 Property Tax $ 18,591,951 $ 19,858,530 $ 20,157,153 $ 21,026,460 $ 869,307 4.3% 5 Transient Occupancy Tax $ 6,325,841 $ 6,960,035 $ 9,051,000 $ 10,650,762 $ 1,599,762 17.7% 6 Utility User Tax $ 5,439,144 $ 5,225,979 $ 5,383,000 $ 5,248,478 $ (134,522) -2.5% 7 Business Tax $ 2,913,665 $ 2,937,176 $ 2,832,000 $ 2,861,863 $ 29,863 1.1% 8 Franchise Fees $ 1,888,414 $ 1,796,829 $ 1,575,000 $ 1,874,569 $ 299,569 19.0% 9 Gas Tax * $ 1,047,225 $ 1,038,124 $ 1,223,937 $ 1,130,063 $ (93,874) -7.7% 10 Cannabis Tax $ 81,599 $ 844,939 $ 1,000,000 $ 998,839 $ (1,161) -0.1% 11 Gas Tax (SB1) * $ 1,028,491 $ 851,408 $ 915,000 $ 914,747 $ (253) 0.0% 12 Safety Prop 172 $ 416,459 $ 425,136 $ 493,000 $ 486,087 $ (6,913) -1.4% 13 Fees for Service and Other Revenue $ 14,930,510 $ 15,897,980 $ 13,695,038 $ 12,717,128 $ (977,910) -7.1% 14 Development Review $ 7,257,859 $ 7,089,762 $ 6,971,140 $ 5,970,996 $ (1,000,144) -14.3% 15 Parks & Recreation $ 1,099,892 $ 1,616,445 $ 1,626,151 $ 1,694,241 $ 68,090 4.2% 16 Fire Services $ 1,442,456 $ 1,500,759 $ 1,443,440 $ 1,494,447 $ 51,008 3.5% 18 Police Services $ 916,344 $ 600,406 $ 619,744 $ 561,909 $ (57,835) -9.3% 17 General Government $ 4,213,959 $ 5,090,608 $ 3,034,562 $ 2,995,535 $ (39,027) -1.3% 19 TOTAL $ 76,788,737 $ 88,683,590 $ 102,925,906 $ 109,052,035 $ 6,126,128 6.0% 2021-22

General Fund Overview
Local Transaction Tax (G-20): The local transaction tax largely mirrors the sales tax trends. FY 2021-22 marks the first full year that the City collected the additional 1% tax from Measure G-20. As a result, annual collection increased to about $21 million from this revenue source, making it the largest tax revenue for the City.

Property Tax: Property tax revenue continues to increase, and the City recorded an all-time high in FY 2021-22, nearly 4% higher than the prior year due to an attractive and flourishing real estate market. The main reason for growth is the transfer of ownership and the increase in Taxable Assessed Value of homes in the community largely supported by record-low mortgage rates in 2021. As rates now increase, the housing market is beginning to cool, and sales prices begin to plateau. Data shows that number of home sales were down 30.3% in July 2022 compared to July 2021, but the median sale price was up 13.3%1. The County Assessor’s Office anticipates an additional 4% growth in 2022-23 based on Proposition 13 increases and assessed valuations of homes.

Transient Occupancy Tax (TOT): Tourism along the central coast made a strong comeback in FY 2021-22 as the region reopened and benefited from being a drive-to destination. Monthly TOT receipts reached all-time highs largely driven by high room rates. The City received about $1.6 million more than itsrevenue projections for the year. However, as inflation and gas prices increase and pent-up demand declines, the City’s tourism program together with the countywide tourism office expect to see a growth plateau and a possible decline in FY 2022-23.

Utility User Tax (UUT): UUT was slightly below the budgeted amount in FY 2021-22. Utility User Taxes have historically been considered a stable tax revenue source for local governments; however, that changed in 2017, when the Federal Communications Commission reclassified broadband internet, voicemail, and text messaging to a nontaxable classification of communication. The result has been declining or stagnant UUT revenue for telecommunications for most local governments. Increased taxes due to increased energy costs (particularly over the last year) have helped offset the decline in telecommunications taxes. As a result, the City collected nearly $200,000 more than what was collected in the previous year. The City has further benefited from its UUT Administration contract with a third-

1 “San Luis Obispo County Housing Market.” Redfin, 20 Aug. 2022, https://redfin.com/county/342/CA/San-LuisObispo-County/housing-market.

General Fund Overview
party vendor. Staff time has been reduced nearly tenfold on collection, enforcement, and other administrative dutiesrequired of this tax. Additionally, the vendor helped collect over $25,000 in penalties from delinquent businesses over the last fiscal year, neutralizing the cost of the contract.

Business Tax: Business taxes are collected at the beginning of the fiscal year and are based on the gross receipts of the previous calendar year. FY 2021-22 revenues were lower than the previous fiscal year because businesses remitted payment based on their 2020 gross receipts, the year most impacted by Covid-19 and the economic shutdown. Staff had anticipated the decline in revenue and the year-end result slightly surpassed the budgeted forecast.

Cannabis Tax: Cannabis tax revenues stabilized in FY 2021-22 now that two retail locations are operating in the City, Cal Poly is fully open, and tourism is returning to pre-pandemic levels. Interestingly, the monthly remittal amounts were nearly the same across the entire fiscal year, unlike sales and transient occupancy taxes which fluctuate seasonally. Staff will closely monitor this revenue during the next fiscal year to determine how variables such as new operators entering the market will impact total cannabis sales within the City.

General Government: General Government revenue includes all of the City’s non-departmental revenue such as business licenses, interest earning, and rent revenue. It also includes grant and subvention revenue which often fluctuates significantly from year to year. For example, in 2021-22 the City received over $1.0 million in Mutual Aid reimbursement. This revenue offsets the Fire Department’s overtime expenditures incurred from sending aid to multiple fires throughout the state. The most notable variance in this category was a negative $1.7 million Fair Market Value (FMV) adjustment. The FMV adjustment is essentially an accounting process that makes it possible to reassess the fair value of the City’s assets when there is a considerable difference between the market and the current book value of the City’s monetary assets.

General Fund Overview
General Fund Ending Position
The table below shows the ending net position of the general fund and the estimated fund balance at year end. While these numbers are still unaudited, they show that the fund ended with revenue under expenditures (see footnote) and an undesignated fund balance of about $3.5 million.

Table 6: General Fund Ending Position
Table 4: General Fund Ending Position* (UNAUDITED)
1 A. Beginning Balance $ 47,118,071
2 (+) Revenue/ Transfers In $ 126,099,555
3 (-) Expenditures/Transfers out 2 $ (132,696,399)
4 B. Revenue Over/(under) Expenditures $ (6,596,844)
5 C. Ending Fund Balance (A + B) $ 40,521,227
6 Non-Spendable $ 90,617
7 Committed*
8 Policy Reserve Level - 20% of Operating Budget $ 12,014,000 9 Local Revenue Measure Balance (See table 6-a below) $ 5,789,679 10 Insurance Fund Balance $ 1,845,935
11 Assigned to:
12 Encumbrances $ 2,541,892
13 115 Pension Trust Fund $ 2,000,000
14 CalPERS Additional Down-payment (ADP) $ 2,000,000
15 Development Services Designation $ 530,657
16 Other restricted $ 28,637
17 SLO REP $ 3,940,000
18 Economic Development Opportunities $ 1,416,441
19 D. Unassigned Fund Balance Before Carryover (C – (Lines 6-18) $ 8,323,370 22 Approved City Manager Carryover Budget Per Council Policies $ 2,573,600 23 Carryover Utilizing Economic Development Funding (see line 18) $ 283,559 24 Proposed Revenue Stabilization Reserve (Recommendation) $ 2,000,000 25 E. Unaudited Year End Fund Balance (D – (Lines 22-24) $ 3,466,211 26 F. Projected Year-End Fund Balance (required amount for balanced forecast)
$ 2,095,000
27 G. Variance from Forecast (E-F) $ 1,371,2113
* Includes Local Revenue Measure and Insurance sub-funds

2 This amount includes over $14 million in one-time budget appropriations from FY 2020-21 unassigned fund balance (R-11307: FY 2021-22 Mid-year Review).
3 It is recommended that these funds remain unappropriated until the final audit numbers are presented in January 2023. Once the final variance from forecast is finalized, staff will likely recommend that these funds be set aside to bridge the funding gap for arterial road improvements that are currently approximately $3.5 million short for the 2023-24 project. The arterial roads that are scheduled per the Councils pavement management plan for repaving are Johnson Avenue and Monterey Street.

General Fund Overview
Table 6-a: Local Revenue Measure (LRM) Ending Position
Local Revenue Measure Ending Position (UNAUDITED)
1 A. Beginning Balance $ 9,299,971
2 (+) Revenue $ 28,914,503
3 (-) Expenditures (not including encumbrances) $ (32,424,795) 4 B. Revenue Over/(under) Expenditures $ (3,510,292)
5 C. Ending Fund Balance (A + B) $ 5,789,679
6 Assigned to Projects $ 1,958,912
7 Transfer to Capital Reserve (per supplemental budget) $ 907,000 8 D. Unassigned LRM Fund Balance (C – (Lines 6-7)) $ 2,923,767 9 E. Allocation of Fund Balance (see next section) $ 1,160,846 10 F. Unaudited LRM Year End Fund Balance (D-E) $ 1,762,921

General Fund Overview
Budget Carryover: Operating Programs
(Financial Management Manual Section 550-A)
Under the City's Financial Plan policies, operating program appropriations not spent during the first year may be carried over for specific purposes into the second year with the approval of the City Manager. The purpose of the following procedures is to set forth the administrative framework for implementing this aspect of the City’s two-year FinancialPlan.

Determining Balances Available for Carryover into the Second Year  The total of all favorable non-staffing variances (supplies, services, or minor capital) are available for carryover with the approval of the City Manager, and will be generally aggregated by department at the fund level. Under this approach, program overages within the department may be offset by program underages. However, in no case may departmental overages in one fund be offset by departmental savings in another.
 The total amount of carryover can never be greater than the net amount that the actual ending fund balance or working capital was greater than projected. This means that the amount available for carryover by each department may be reduced by any amount that revenues or other financing sources (uses) were less than projected, including any departmental budget overages.  After adjusting for encumbrances and any resource shortfalls or departmental budget overages, the prioritization of requests will be: 1. Health and Safety 2. Specific Carryover 3. General Carryover (all requests will still be reviewed on a case-by-case basis and exceptions may apply.) City Manager Authority
The City Manager is authorized to program carryover balances for reappropriation except under the following conditions, for which Council approval isrequired:

1. Funding a new CIP project.

2. Authorizing increases in regular staffing.

3. Implementing new programs that have significant ongoing budget implications.

Any purchases using carryover balances are subject to the City's standard purchasing policies and procedures. This may result in the need for subsequent Council approval from a purchasing— not budgetary—perspective.

Table C-1 Carryover available for reappropriation:

Carryover
Operating Budget Appropriation $ 92,752,374
Actual Expenditures (including encumbrances) $ (87,324,663) Year-end (over)/under budget $ 5,427,711
Assumed Salary Savings $ (1,697,000)
Available for Carryover $ 3,730,711

General Fund Overview
ID Table C-2: City Manager Approved 2021-22 Carryover Requests Amount 1 Arts & Cultural Recovery Grant Funding $ 50,000
2 Cultural Grants In Aid Funding $ 12,000
6 SLO Onboarding Assistance Resources (SOAR) Program $ 30,000 9 Permit Processing Improvements $ 50,000
10 990 Palm IT/Finance Office Space Reconfiguration (C) $ 600,000 11 DEI Grant Program $ 150,000
12 DEI Strategic Plan $ 35,000
13 Feasibility Study for Multicultural Center $ 40,000
14 PEN Manual Update (DEI Focus) $ 15,000
15 Homelessness Strategic Plan $ 35,000
16 919 Palm Office Reconfiguration (C) $ 144,978
17 Housing Element Program Implementation $ 35,000
18 Building and Safety Transparency Reporting $ 125,000 20 Affordable Housing Legal Counsel $ 30,000
21 San Luis Garbage $ 6,500
23 GOGov - Centralized Resident Engagement Platform $ 10,000 24 Community Workforce Agreement Study $ 42,607
26 Vacation Buyout Contingency - Retirements $ 30,000
27 Recruitment Costs - Finance Director, Fire Chief $ 24,000 29 ImageTrend Software Enhancements - Reporting and Inspections $ 11,765 32 Additional Fuel Budget - Fire Department $ 18,000
33 AB 939 Restricted Funding $ 100,065
34 COVID Policy Implementation, Case Management, and Rapid Tests $ 15,000 35 Furnishings and Technology $ 13,000
36 Contract Services - Personnel Matters $ 30,000
37 Classification and Compensation Support $ 43,500
38 Centre for Organization Effectiveness $ 40,000
39 Strategic Plan Consultant $ 60,000
40 Hotel/housing Voucher Program $ 25,000
41 Two Contract Field Service Technician Positions $ 154,525 42 Additional Tree Watering - Urban Forest (drought related) * $ 40,000 43 Maintenance Contract Increases - CPI Related * $ 45,000 44 Downtown Trash Cans - Streets $ 30,000
45 Fuel Cost Increases - Fleet * $ 150,000
46 HR Office Maintenance - Facilities * $ 8,500
47 Plant Material and Supplies - Parks Beautification Gardener * $ 25,000 48 Increased Trash Services $ 40,000
49 Portable Toilets Rental (Operationalizing Covid-19 Expenses) * $ 9,000 50 Stormdrain System Maintenance Program $ 45,160
52 Employee Appreciation Leave 2022 $ 205,000
Total General Fund Budget Carryover $ 2,573,600
*One-time requests but will be considered in the 2023-35 Financial Planning process as an ongoing need. (C) - Require Council Approval. Recommended in October 4, 2022 Council Agenda Report – Attachment B (Draft Resolution)