San Luis Obispo City Council
January 17, 2023

City Council
AGENDA

Tuesday, January 17, 2023, 5:00 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) 781-7114.

Pages

1. CLOSED SESSION: STARTS AT 5:00 PM

1.a CALL TO ORDER
Mayor Erica A. Stewart will call the Closed Session Meeting of the San Luis Obispo City Council to order in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.

1.b PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
Public comment will only be accepted for Closed Session items.

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

APN 001-042-024; 001-042-025
Agency Negotiators:

Derek Johnson, J. Christine Dietrick, Shelly Stanwyck, Luke Schwartz, Jennifer Rice
Negotiating Parties:

Universal Management LLC
Under Negotiation:

Price and terms of payment
Property:

APN 001-043-027
Agency Negotiators:

Derek Johnson, J. Christine Dietrick, Shelly Stanwyck, Luke Schwartz, Jennifer Rice
Negotiating Parties:

Kirit C. Patel Trust
Under Negotiation:

Price and terms of payment

1.d ADJOURNMENT
The City Council will hold a Regular Meeting on January 17, 2023 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

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

3. PLEDGE OF ALLEGIANCE
Council Member Emily Francis will lead the Council in the Pledge of Allegiance.

4. PRESENTATIONS

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

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

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

Recommendation:

To approve Consent Calendar Items 6a to 6f.

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - JANUARY 10, 2023 COUNCIL MINUTES 9 Recommendation:

Approve the minutes of the City Council rescheduled Regular Meeting held on January 10, 2023.

6.c APPROVAL OF THE HUMAN RELATIONS COMMISSION FUNDING
RECOMMENDATIONS FOR THE 2023-24 COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM
15 Recommendation:

As recommended by the Human Relations Commission, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2023-24 Community Development Block Grant (CDBG) Program” for a total of $425,352.

6.d AUTHORIZE REQUEST FOR PROPOSALS FOR THE PREPARATION

OF THE WATER TREATMENT PLANT FACILITY INFRASTRUCTURE

RENEWAL STRATEGY PLAN
79 Recommendation:

Approve a Request for Proposals for the Preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan (Project) and authorize staff to advertise the Project for proposals and bids; and

1. Authorize the City Manager to award the contract for the Project if the bid is within available project funding of $150,000.

2. 6.e FY 2021-22 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER ASSEMBLY BILL 1600
119
Recommendation:

Review and approve the FY 2021-22 Report on Development Impact Fees in compliance with Assembly Bill 1600 (AB 1600) annual disclosure requirements; and

1. Adopt a Draft Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2021-22 Annual Report on Development Impact Fees
reaffirming the necessity for Development Impact Fees and make findings related to Impact Fee Balances."

2. 6.f APPROVE A COMMUNITY WORKFORCE AGREEMENT FOR THE

PRADO ROAD INTERCHANGE AND PUBLIC SAFETY CENTER

PROJECTS
159
Recommendation:

Authorize the Mayor to enter into a Community Workforce Agreement with the Tri-Counties Building and Construction Trades Council, AFLCIO and the Signatory Craft Councils and Unions for the Prado Road Interchange and Public Safety Center projects.

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a ADOPTION OF THE CLIMATE ADAPTATION AND SAFETY ELEMENT

UPDATE AND DECLARATION OF NEGATIVE ENVIRONMENTAL
IMPACT (GENP-0436-2022; EID-0437-2022) (Estimated Time: 90 minutes)
215
Recommendation:

As recommended by the Planning Commission, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo approving and adopting a Negative Declaration of Environmental Impact and Amendments to the Safety Element of the General Plan as represented in the Council Agenda Report and attachments dated January 17, 2023 (GENP-0436-2022 & EID-0437- 2022).”

7.b ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT FOR FY 2021-22 (Estimated Time: 60 minutes)
831
Recommendation:

Review and accept the Annual Comprehensive Financial Report for Fiscal Year 2021-22.

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

9. ADJOURNMENT
The City Council has scheduled a Special Meeting for the purpose of holding the 2023-25 Financial Plan Community Forum on Thursday, January 26, 2023 at 5:30 p.m. at the Ludwick Community Center, 864 Santa Rosa Street, San Luis Obispo. The next Regular Meeting of the City Council will be held on February 7, 2023 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) 781-7114 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) 781-7114.

1 Council Minutes
January 10, 2023, 5:30 p.m.

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

Present:

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

1. CALL TO ORDER
A rescheduled Regular Meeting of the San Luis Obispo City Council was called to order on January 10, 2023 at 5:40 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart, with Vice Mayor Marx participating via teleconference.

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

CITY MANAGER REPORT
City Manager Derek Johnson provided a report on the storm activities over the past two days.

3. BUSINESS ITEM

3.a APPROVAL OF EMERGENCY SERVICES DIRECTOR PROCLAMATION NO. 1 (2023 SERIES)
Emergency Services Director Derek Johnson provided a situational update and responded to Council questions.

Public Comments:

None
---End of Public Comment---
Motion By Council Member Shoresman
Second By Council Member Pease

2 Adopt Resolution No. 11382 (2023 Series) entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, confirming the Emergency Services Director’s Proclamation of existence of a Local Emergency."
Ayes (5): Council Member Francis, Council Member Pease, Council Member Shoresman, Vice Mayor Marx, and Mayor Stewart
CARRIED (5 to 0)

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

None
--End of Public Comment--

5. CONSENT AGENDA
Council Member Pease requested that Item 5c be pulled from the Consent Agenda.

Vice Mayor Marx requested that Item 5d be pulled from the Consent Agenda.

Motion By Council Member Pease
Second By Council Member Francis
To approve Consent Calendar Items 5a and 5b.

Ayes (5): Council Member Francis, Council Member Pease, Council Member Shoresman, Vice Mayor Marx, 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 - DECEMBER 9, 2022 AND DECEMBER 13, 2022

COUNCIL MINUTES
Approve the following minutes of the City Council:
 December 9, 2022 - Special Meeting
 December 13, 2022 - Special Meeting

3 5.c COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2023 Motion By Council Member Pease
Second By Vice Mayor Marx
Approve the Council Liaison Subcommittee assignments for the 2023 calendar year with the following changes to the document:
 For 2022, under the Homeless Services Oversight Committee, move Council Member Pease to Member and Vice Mayor Christianson to Alternate.
 Under the Special Purpose Subcommittees, County/Regional, and Ad Hoc Subcommittee sections, change the headings from Chair and Member to Member and Alternate.

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

5.d AUTHORIZATION TO ADOPT A RESOLUTION APPROVING THE CITY OF SAN LUIS OBISPO’S PARTICIPATION IN SAN LUIS OBISPO
COUNTY’S REGIONAL DESAL PLANNING EFFORTS
Motion By Council Member Pease
Second By Council Member Shoresman

1. Authorize the City to be included in the San Luis Obispo County’s preliminary scoping and planning efforts to develop a Regional Desalination Executable Solution and Logistics (DESAL) Plan; and

2. Adopt Resolution No. 11383 (2023 Series) entitled, “A Resolution approving City of San Luis Obispo participation in the San Luis Obispo County Regional Desalination Executable Solution and Logistics (DESAL) Plan”; and

3. Find the action exempt from the California Environmental Quality Act (CEQA).

Ayes (4): Council Member Francis, Council Member Pease, Council Member Shoresman, and Mayor Stewart
Noes (1): Vice Mayor Marx

4 CARRIED (4 to 1)

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a REISSUANCE OF CONDUIT FINANCING FOR THE HOUSING

AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE
ACQUISITION AND REHABILITATION OF 172 AFFORDABLE HOUSING UNITS LOCATED IN THE CITY (Estimated Time: 15 minutes)
Assistant Planner Owen Goode provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
Motion By Vice Mayor Marx
Second By Council Member Francis

1. Conduct a public hearing under the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986, as amended; and

2. Adopt Resolution No. 11384 (2023 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the Reissuance of a Tax-Exempt Note by the Housing Authority of San Luis Obispo” allowing the reissuance of a taxexempt obligation by the Housing Authority of the City of San Luis Obispo (HASLO), for the purpose of providing financing for the acquisition and rehabilitation of various multifamily rental housing facilities located in the City (the “Project”), in order to preserve existing affordable housing; such adoption of the resolution is solely for the purposes of satisfying the requirements of TEFRA, the Code, and the California Government Code Section 6500 et seq.

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

5 6.b 2023-25 FINANCIAL PLAN PROCESS, ECONOMIC OUTLOOK,

BUDGET POLICIES, AND CAPITAL IMPROVEMENT PLAN REVIEW
(Estimated Time: N/A)
Motion By Mayor Stewart
Second By Council Member Shoresman
To continue the item to the City Council Adjourned Meeting on January 12, 2023 at 5:30 p.m. in Council Chambers.

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

7. STUDY SESSION

7.a STUDY SESSION ON THE URBAN FORESTRY PROGRAM
(Estimated Time: N/A)
Motion By Mayor Stewart
Second By Council Member Shoresman
To continue the item to the City Council Adjourned Meeting on January 12, 2023 at 5:30 p.m. in Council Chambers.

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

8. LIAISON REPORTS AND COMMUNICATIONS

9. ADJOURNMENT
The meeting was adjourned at 6:59 p.m. The City Council will hold an Adjourned Meeting on January 12, 2023 at 5:30 p.m. in the Council Chambers at City Hall.

The next Regular Meeting of the City Council will be held on January 17, 2023 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/2023

Item 6c
Department: Community Development
Cost Center: 4008
For Agenda of: 1/17/2023
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Owen Goode, Assistant Planner
SUBJECT: APPROVAL OF THE 2023-24 COMMUNITY DEVELOPMENT BLOCK

GRANT FUNDING RECOMMENDATIONS

RECOMMENDATION
As recommended by the Human Relations Commission, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the 2023-24 Community Development Block Grant (CDBG) Program” for a total of $425,352.

POLICY CONTEXT
The funding priorities and funding recommendations from the HRC specifically align with one of the City’s Major City Goals for 2021-23, “In order to expand housing options for all, continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable housing. Collaborate with local non-profit partners and the county, the state, and federal governments to discover and implement comprehensive and effective strategies to reduce chronic homelessness”.

The CDBG applications allow the City to further implement the 6th Cycle Housing Element by satisfying on-going policies, 4.7 Affirmatively Further Fair Housingi, 6.17 Financially assist in the development of affordable housingii, and 8.11 Continue to provide resources that support local and regional solutions to meet the needs of the homelessiii.

Background
The Community Development Block Grant Program (CDBG Program) is a federally administered funding program that provides financial assistance in the form of grants inhere program areas: Public Services, Development of Affordable Housing and/or Public Facilities, and Program Administration. The funding priorities adopted by City Council in November 2022 are used to guide the HRC’s funding recommendations. The City of San Luis Obispo has received an estimated allocation of $488,911.92. The total funding allocations per category are as follows:

Item 6c
Jurisdiction Estimated
Allocation
City Admin
Allocation
(35% of
20%)
County
Admin
Allocation
(65% of
20%)
Public
Services
Allocation
(15%)iv
Remaining
Funds Available
for 2023 Project
Applications
(65%)
San Luis
Obispo
$488,911.92 $34,223.83 $63,558.55 $73,336.79 $317,792.75 The City and County share the administration portion of funding in a 35/65 split which was the negotiated split between the City/County as part of the regional effort to administer the reporting and administration requirements for a Consolidated Planvfor the 2020-2024 program years.

The City received seven applications for the upcoming cycle, requesting a total of $967,958. After allocation of administration costs, there is now $425,353.37 available for allocation.

FUNDING PRIORITIES FOR THE 2023-24 CDBG Funding Cycle
On November 1, 2022, the City Council adopted the Human Relations Commission’s recommended funding priorities for the 2023-24 CDBG funding year. The ranked priorities established by the City Council are:

1. Provide emergency and transitional shelter, homelessness prevention and services.

2. Develop and enhance affordable housing for low and very-low-income persons.

3. Enhance economic development (to include seismic retrofit, economic stability, low- and moderate-income jobs).

4. Promote accessibility and/or removal of architectural barriers for the disabled and elderly.

APPLICATIONS RECCOMMENDED FOR FUNDING
The above priorities are used as the basis for developing funding recommendations of the 2023-24 CDBG applications. The Human Relations Commission recommends funding five of the seven applications that were received, as shown in Attachment A. All projects and programs that are recommended to receive funding are further described below. A copy of each 2023-24 CDBG application is also provided in Attachment Bvi.

1. Community Action Partnership of San Luis Obispo (CAPSLO) – 40 Prado Homeless Services Center Staffing: CAPSLO has requested $ 85,000 in CDBG Public Services funds to increase the capacity, range, and efficiency of services offered by staff at 40 Prado Homeless Services Center. The City is recommending a partial funding award for this application of $64,191 because it meets the first ranked priority of providing emergency and transitional shelter, homelessness prevention and services. This application is part of the Public Services funding reservation.

Item 6c

2. 5 Cities Homeless Coalition – Rapid Rehousing/Homeless Prevention: 5CHC has requested $ 20,333 in CDBG Public Services funds for staff costs for Rapid Re -housing and Homeless Prevention. Staff has identified that this application also meets the first rank of the approved funding priorities and funding support assists with part of the regional collaboration effort to reduce homelessness within the City as well as the County. Staff is recommending funding for the Direct Labor, shown in the budget request, for a total of $9,145. This application is part of the Public Services funding reservation.

3. Housing Authority of San Luis Obispo – 736 Orcutt Road Apartments: The Housing Authority has requested $2,000,000 in CDBG & HOME for public facilities and housing projects for the Orcutt Road Apartments located at the former Maxine Lewis site. The total project cost is $ 18,701,380 and will construct 39 new affordable housing units for Extremely Low-Income individuals. This application aligns with the second approved funding priority but ranked highest competitively because of the number of units to be constructed and the sensitive group that it supports. Staff recommends the maximum funding available for this application for a total of $317,792.

4. City of San Luis Obispo – CDBG Administration and Capacity Building: City Community Development staff are requesting $17,112 for administrative costs of the CDBG program, and $ 17,112 for housing capacity building. The capacity building allocation can be used for affordable housing-related City programs. Staff anticipates using a portion of this funding for the implementation of the City’s 6th Cycle Housing Element. Per the CDBG guidelines, a maximum of 20% of the total grant allocation can be utilized for program administration. The City is thus eligible to utilize 35% of the program administration allocation for associated City costs per the Cooperation Agreement with the County. The two requests of $17,112 are both consistent with City’s allocation of $34,224.

Previous Council or Advisory Body Action
The funding priorities that guide the funding recommendations were approved by Council on November 1, 2022. The HRC held a public hearing to review and approve the funding recommendations on December 7, 2022.

Public Engagement
Public engagement is conducted annually at the Human Relations Commission during the Community Needs Hearing. The previous Community Needs Hearing was held on October 5, 2022.

ENVIRONMENTAL REVIEW
The proposed CDBG funding allocations are exempt from environmental review per California Environmental Quality Act (CEQA) Guidelines under the General Rule (Section 15061(b)(2)) where the funding allocation is intended to provide for the approved project application ARCH-0221-2021 that has been determined to be categorically exempt from the provisions of the CEQA (Class 32, Infill Exemption), the application is not barred by any of the exceptions set forth in Section 15300.2. It can be seen with certainty that CDBG funding allocations could not have a significant effect on the environment.

Item 6c

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal: CDBG $425,352 $425,352 $0
Fees
Other:

Total $425,352 $425,352 $0 $

ALTERNATIVES

1. The Council may modify the recommended funding amounts.

2. The Council may continue consideration of funding for the FY 2023-24 CDBG Program Year. Staff does not recommend this action because the City’s recommended funding priorities must be received by the County by the end of March in order to be included in the final FY 2023-24 Action Plan.

ATTACHMENTS
A – Draft Resolution Approving 2023-24 CBDG Program
B – Draft 2023-24 CDBG HRC Recommendations
C – CDBG Applications
i The City shall support Affirmatively Further Fair Housing (AFFH) by: •Facilitating public education and outreach by providing informational flyers on fair housing and reasonable accommodation at public counters and on the City’s website. Information will be included with utility billing at least once per year. •Training staff, elected officials, and appointees on issues of disparity, structural racism, and inequality through the City’s Diversity, Equity and Inclusion (DEI) Program. •Implementing language standards and procedures for providing equal access to City services and programs to all residents, including persons with limited proficiency in English. •Deed-restricting units to provide affordability and reduce displacement. •Supporting new technologies and/or products such as modular housing construction to reduce costs and increase access to housing. •Distributing information regarding tenant rights and Fair Housing resources as part of Code Enforcement’s response to housing code enforcement issues. ii Financially assist in the development of 20 housing units per year that are affordable to extremely low, very-low, low- and moderate income households during the planning period using State, Federal, and local funding sources, with funding priority given to projects that result in the maximum housing benefits for the lowest household income levels. iii Continue to provide resources that support local and regional solutions to meet the needs of the homeless and continue to support, jointly with other agencies, shelters and programs, such as Housing First and Rapid Rehousing, for the homeless and displaced individuals and families.
iv Awards made for public services may not exceed 15 percent of the total amount of CDBG funds available pursuant to 42 U.S.C. 5305 (a)(8).
v The Consolidated Plan is a five-year strategic planning document for the Urban County of San Luis Obispo (the “County”) that establishes the goals for the County’s community development and affordable housing activities. The U.S. Department of Housing and Urban Development (HUD) requires that San Luis Obispo County outline a vision for an effective and coordinated community development strategy.
vi The application from the County of San Luis Obispo for CDBG Administration is not included.

R _____
RESOLUTION NO. _______ (2023 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2023-24 COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
WHEREAS, the City of San Luis Obispo is a participating jurisdiction in the San Luis Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach, and the County of San Luis Obispo; and WHEREAS, said cities and County cooperatively administer several federal grant programs under the provisions of the 2021-2023 Cooperative Agreement between the City and County dated July 7, 2020, and under applicable U.S. Department of Housing and Urban Development Department (HUD) rules; and
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan, and HUD rules, the Human Relations Commission held a public hearing on December 7, 2022, to consider funding recommendations and provided a recommendation to Council, to review applications for federal grant funding, and to consider public comments on community needs and the use of such funds; and WHEREAS, the Council has considered applications for Community Development Block Grant (CDBG) funds, public testimony, the Urban County’s proposed One-Year Action Plan, and the HRC and staff recommendations included in the agenda report; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Environmental Determination. The proposed CDBG funding allocations are exempt from environmental review per California Environmental Quality Act (CEQA) Guidelines under the General Rule (Section 15061(b)(2)) where the funding allocation is intended to provide for the approved project application ARCH-0221-2021 that has been determined to be categorically exempt from the provisions of the CEQA (Class 32, Infill Exemption), the application is not barred by any of the exceptions set forth in Section 15300.2. It can be seen with certainty that CDBG funding allocations could not have a significant effect on the environment.

SECTION 2. 2023-24 Community Development Block Grant Program Amendments. The City’s 2023-24 Community Development Block Grant Program is hereby approved. The Community Development Director is authorized to approve final dollar amounts once HUD releases allocations with the direction to make up differences in the two amounts.

SECTION 3. Board of Supervisors Consideration. The Council hereby forwards the above actions to the San Luis Obispo County Board of Supervisors for consideration prior to the Board’s final action on the Urban County’s 2024 Consolidated Plan.

Resolution No. _____ (2023 Series) Page 2
R _____
SECTION 4. Community Development Director Authority. The Community Development Director is authorized to act on behalf of the City in executing grant agreements and other actions necessary to implement the approved Consolidated Plan and CDBG Program, including revisions to funding amounts for the 2023-24 CDBG Program if the City’s actual CDBG allocation is different than expected.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2023. ___________________________
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

No. Activity
1 40 Prado Homeless Services Center 64,191.00 $ 85,000.00 $ 2 Supportive Housing Services - 28,401.00 $
3 Rapid Rehousing/Homeless Prevention 9,145.00 $ 20,333.00 $ $ 133,734.00 73,336.00 $
4 Orcutt Road Apartments 317,792.00 $ 400,000.00 $
5 Bridge Street Family Apartments - 400,000.00 $
$ 800,000.00 317,792.00 $
6 CDBG Adiministration 17,112.00 $ 17,112.00 $
7 Capacity Building 17,112.00 $ 17,112.00 $
$ 34,224.00 34,224.00 $ $ 967,958.00 425,352.00 $
Funding Recommended
Administration and Capacity Building
City of San Luis ObispoCity of San Luis Obispo

SUBTOTAL
TOTAL
Peoples' Self-Help Housing5Cities Homeless Coalition

SUBTOTAL
Housing and Public Facilities
Housing Authority of San Luis Obispo

SUBTOTAL
Housing Authority of San Luis Obispo
City 2023-24 CDBG
Funding Requested Applicant
Public Services and Economic Development
Community Action Partnership of San Luis Obispo (CAPSLO) %&'%*+5&)XQGLQJ5HFRPPHQGDWLRQV

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

1. APPLICANT INFORMATION
• Entity Name Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) • Ultimate Borrower, if applicable N/A
• Application Contact (Name and Title) Elizabeth “Biz” Steinberg, CEO • Contact Phone Number 805-544-4355
• Entity Address, City and Zip Code 1030 Southwood Drive, San Luis Obispo, CA 93401 • Mailing Address (if different from above) N/A
• Applicant’s Website www.capslo.org
• Unique Entity Identification (UEI) Number 95-2410253
• Type of Agency (501(c)(3), For Profit, Gov’t/Public, CHDO, Other) 501(c)(3) • Date of Incorporation 12-9-1965
• Project Management
o Project Lead Name Lawren Ramos
o Title Community Services Director
o Phone 8055444355
o Email [email protected]

2. PROJECT SUMMARY
• Project Title 40 Prado Homeless Services Center
• Project Address 40 Prado Road, San Luis Obispo, CA 93401 • APN #, if applicable N/A
• Description of the Project
Provide a project description that captures the maximum anticipated scope of the application. It should include all contemplated actions which logically are, either geographically or functionally, a composite part of the project, regardless of the source of funding. Describe all physical aspects of the project, such as plans for multiple phases of development, size and number of buildings, and activities to be undertaken. Include details of the physical impacts of the project, including whether there will be ground disturbance. If applicable, indicate whether the project site will require acquisition or if the sponsor already has ownership.

The 40 Prado Homeless Services Center in San Luis Obispo offers day and night emergency shelter services, meals, showers, health screenings at the CHC on-site clinic, services to dualdiagnosed individuals, recuperative care for those recently released from the hospital, animal kennels, a community garden, laundry, internet access, and a mail and message center to facilitate job and housing searches. CAPSLO’s Head Start program offers “Home Based” family education and support program for parents of toddlers. Case managers and staff assist clients in creating individualized plans with set goals and objectives to obtain housing and self-sufficiency.

These comprehensive on-site services are provided by agency staff, volunteers (pandemic guidelines permitting), and community partners through extensive collaborations. In addition to these services, CAPSLO offers an on-site year-round Safe Parking program and a Warming Center during inclement weather (November through March).

C - 2023-24 CDBG Applications

3. BUDGET
• Funds Requested (Amount and Source) CDBG: $170,000 ($85,000 from City of SLO; $85,000 from County of SLO)
• Total Project/ Program Cost (Identify funding to be used to support the project throughout affordability period, if applicable) See attached program budget • Identify leveraged funds (Committed, Match, Not (Yet Committed) See attached program budget
• Identify additional rental assistance in project, if applicable N/A • Indicate how the match requirement will be met (include sources and source documentation), if applicable. See attached program budget

4. PURPOSE & NEED
• Purpose of the Proposed Project. Describe the project by addressing each of the following:
o What activities will be undertaken?
CAPSLO is proposing CDBG funding to adequately maintain staffing at 40 Prado so that the current participant-to-staff ratio is ensured, as well as maintaining the opportunity for participants to engage with case management staff in developing an immediate plan for housing. Case managers continue to work with their housed clients for six months after placement, further supporting their success.

Given the influx of medically fragile, elderly, and dual-diagnosed individuals over the last year – and given the current economic crisis -- there must be sufficient staffing levels to provide the “eyes-on” so that 40 Prado remains a safe and stable place for people to be. Without the foundational support of CDBG funding, we are unable to provide the complex and comprehensive services necessary to meet the specialized needs of the homeless community.
o What are the project goals and objectives?
The goal of the 40 Prado Homeless Services Center is to increase self-sufficiency for homeless individuals and families. The objective is to provide a path out of homelessness, which is accomplished with comprehensive, on-site, wrap around services and case management, described in detail in Question 2, and will include the new medically assisted withdrawal treatment program (MAT). 40 Prado is able to provide such a wide variety of services because it depends on CDBG funding to cover sufficient shelter staffing, supervision of shelter staff, and costs associated with day-to-day operations.
o Explain the need being addressed by this project.

CAPSLO’s 40 Prado is a consolidated homeless services center providing on-site medical, mental health and substance abuse services. With 31% of clients over age 55, many individuals with mental health issues, and an influx of homeless individuals and families due to the deepening economic crisis, it is essential to maintain sufficient staffing in order to provide safe and stable services to the diverse population on-site. The maintenance of sufficient staffing also enables participants to obtain quicker access to information as they move themselves through the necessary steps towards obtaining housing.

San Luis Obispo County’s high cost of living and housing are heavily impacting the local homeless who are experiencing longer spans of homelessness. Until there is more affordable housing in the county, emergency sheltering and day services will be a fact of life. CDBG funding supports the foundational operating expenses of 40 Prado Homeless Services Center.
o Explain how the need was identified.

The 40 Prado Homeless Services Center is heavily utilized, demonstrating the ongoing need for services. In the last fiscal year, 40 Prado provided services to 917 unduplicated homeless persons; 30% were female heads of household, and 48% were disabled. The 2022 Homeless Count and Survey (Point-In-Time) counted 1,448 homeless individuals living in San Luis Obispo County, statistically level from 2019. However, the study showed that 80% of the homeless population was unsheltered on the night of the count.

Who are the beneficiaries? How will eligibility be determined? Beneficiaries of this project will be 1,100 low-income individuals and families atrisk of homelessness or currently homeless in San Luis Obispo County, including the cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach and the City of San Luis Obispo. Disabled individuals are provided healthcare from the on-site primary health care available at 40 Prado, as well as behavioral and mental health services. There has been a large increase in the number of elderly participants, a population for whom safe and stable sheltering is essential.

CAPSLO provides Head Start resources to children, as well as coordinates with SLO Coastal Unified School District. Of the total number of persons served by CAPSLO at 40 Prado Homeless Services Center, we project 15% will be LOWINCOME, and 85% will be VERY LOW INCOME.

Eligibility will be determined by a Homeless Shelter worker who conducts an intake interview with the individual or family when they first arrive at the shelter.

CAPSLO’s digital client intake forms document, maintain and store this data into the Client Track database. (A printout of the Client Intake Form that comprises the digital Client Intake screen is attached.) Income verification for CDBG/ESG beneficiaries is provided in accordance with 24 CFR Part 5. o Is there community and/or political support? Explain.

CAPSLO has a long-standing tradition of partnering with organizations to enhance, but not duplicate, services. With the commitment to providing participants with easier access to care, CAPSLO has worked diligently to collaborate with providers to bring necessary services on-site. CAPSLO is the Lead Agency in Coordinated Entry and sub-contracts with 5Cities Homeless Coalition (5CHC) and El Camino Homeless Organization (ECHO). Through the development of a shared case management data system, Client Track, CAPSLO is able to provide assessments and connect individuals and families to the most appropriate services countywide.

CAPSLO routinely works with other organizations including those within the SLO Supportive Housing Consortium, and actively advocates with the partner organizations that provide permanent housing, including Transitions Mental Health Association (TMHA) and the Housing Authority (HASLO). CAPSLO refers

appropriate clients to other organizations, including Food Bank, HomeShare SLO, Los Osos Cares, Paso Cares and Family Resource Centers throughout the county.

CAPSLO also works closely with the countywide Community Action Teams (CAT), and in particular, the SLO City CAT, that has provided tremendous assistance in helping individuals divert back to their family when appropriate. Adult Protective Services has also played a vital role in personally accompanying frail individuals back to their homes if needed, in order to ensure a safe and smooth transition.

CAPSLO staff identify the best options for the most complicated and challenging situations presented and most often this includes extensive partnerships with other organizations.

In its strategic planning process, CAPSLO is intentionally aligning with the San Luis Obispo Countywide Plan to Address Homelessness, 2022-2027. o Describe how the impact will be sustained once this round of funding ends.

The operation and maintenance costs for 40 Prado Homeless Services Center are funded through a combination of local government grants, corporate grants, private foundation grants, and from community donations through the fundraising efforts of both CAPSLO and Friends of 40 Prado. However, the 40 Prado Homeless Services Center depends on grant funding from the County of San Luis Obispo for its ongoing operations.
• Organizational Capacity. Summarize the organization's background/capacity to carry out the proposed project. Address the following points:
o Has the organization carried out this type of project previously? Explain.

CAPSLO has taken the lead in pioneering many collaborative and innovative projects to address unmet needs for the homeless, and is the lead agency in the Coordinated Entry and CESH programs, working in collaboration 5CHC and ECHO. In 2016, the Recuperative Care Program, the first medically modeled program in the county, was developed in partnership with CenCal Health, Tenet Health and Dignity Health, providing respite care and medical case management for medically fragile homeless individuals released from local hospitals. It was named a “best practice” by CenCal Health in 2017.

In 2017 CAPSLO was awarded a Substance Abuse and Mental Health Services Administration (SAMHSA) grant for providing services to dual-diagnosed, chronically homeless individuals in its SLO-HUB program, one of only 20 grants awarded nationally and cited as a national “best practice” by SAMHSA.

In 2019, the SLO County Department of Behavioral Health placed a full-time, licensed mental health therapist at 40 Prado to work with those individuals evaluated as having “moderate-to-severe” mental health issues. CAPSLO then partnered with Community Counseling Center to have interns on-site four days a week to see individuals with “mild-to-moderate” mental health issues.

In 2020, CAPSLO was the lead applicant on several CARES Act funding grants to serve the homeless population in SLO County, coordinating services with 5CHC and ECHO.

o What makes the organization a preferred provider of this service? CAPSLO has successfully provided homeless services in San Luis Obispo County for 33 years. Jack Lahey was hired as CAPSLO’s Homeless Services Director June 2021 and is responsible for all services at 40 Prado Homeless Services Center. His prior work experience includes a decade of working in homeless serving organizations, including overseeing three departments within LA Family Housing in Los Angeles, directing over $68 million of government grants from multiple funding sources, and supervising over 50 employees. Mr. Lahey has a Masters in Social Work from USC, and is the author of numerous published research articles on homelessness.

Lawren Ramos has been CAPSLO’s Director of Community Services since September 2020, supporting the divisions of Homeless Services, Health & Prevention, Adult Services, Supportive Services for Veteran Families, and Energy Services. Mr. Ramos has over 15 years of experience in executive leadership of several social service organizations, including Childhelp, the Orangewood Foundation and Boys Town California. Mr. Ramos holds an MS in Human Services from Bellevue University.

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

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

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

The eligibility category for this CDBG project is Public Services. The proposed project meets the CDBG National Objective because 100% of the beneficiaries of the

proposed activities will be Low/Moderate income persons. The specific group of persons the proposed project will serve are homeless persons. CAPSLO requests documentation of family/individual income for clients of the 40 Prado Homeless Services Center.

6. SCHEDULE
• Provide a detailed project timeline, include milestones with units of measure. See attachments.
• Describe agency’s record keep system with relevance to the proposed project and how reporting requirements will be met.

CAPSLO participates in the County’s Homeless Management Information System (HMIS) as required, and also utilizes its own database, Client Track, to collect client data as part of the County Continuum of Care’s Coordinated Entry System and to keep and store client files that include demographic data (i.e., race/ethnicity, gender, age, disability and military status), family information (i.e., household size and income), attendance, services accessed, individual daily client activities and incidents, services provided, meals, and referrals.

Client Track is HMIS-compliant and is used to collect and manage data associated with assessments on, and referrals for, the individual clients at a higher level of detail than the county’s HMIS. A systems analyst at CAPSLO trains program staff on Client Track, provides reports, and implements the numerous changes (“syncs”) required to maintain system accuracy.
•

7. ADDITIONAL INFORMATION
• Has site control been obtained? If so, how is site control held? Attach documentation of site control. N/A
• Zoning. Is the current project location zoned for the proposed activity? If not, describe steps to be taken to ensure zoning requirements are met. N/A • If applicable, indicate the application due date for tax credits. N/A • Identity all permits necessary for the project. Include estimated dates of application and approval. N/A
• Does this Project require Relocation? If so, attach Relocation Plan. N/A • Indicate Housing Type (Permanent Homeowner Housing, Rental Housing, Transitional Housing). N/A (Emergency Shelter)
• Does the Project intend to target special populations (such as seniors, persons with disabilities, children in foster care, etc.)? The special population the project will target are homeless individuals and families, which includes individuals who are also seniors, disabled, and children.
• Will the Applicant be providing services? If so, please provide a brief explanation.

CAPSLO provides most services at 40 Prado, with the exception of the on-site primary care, which is provided by Community Health Centers of the Central Coast, behavioral health care which is provided by County Behavioral Health Department and Community Counseling Center.

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

• Indicate environmental review steps completed to date. N/A

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

APPLICABLE)
• Section 3: Please explain how Section 3 benchmarks will be met. N/A • MBE/WBE: Please explain how your project will be marketed towards MBE/WBEs.

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

10. ADDITIONAL REQUIRED DOCUMENTS
• Timeline of Milestones
• Client Intake Form
• Project Budget
• Articles of Incorporation/Bylaws
• Non-profit Determination
• List of the Board of Directors
• Authorization to Request Funds
• Designation of Authorized Official
• Organizational Chart
• Most Recent Financial Audit
• Policies and Procedures
• SAM Search

Milestone Timeline – CDBG CAPSLO 40 PRADO HOMELESS SERVICES CENTER Gray shaded area = activity
Task 7/23 8/23 9/23 10/23 11/23 12/23 1/24 2/24 3/24 4/24 5/24 6/24 Nightly
shelter for up
to 124
Case
management
Medical care
Laundry
services
Coordinated
Entry
Mental health
treatment
Basic Needs
Three meals
daily to all
clients
Recuperative
Care Program
SLO-Hub
Program
On-site Safe
Parking
Program
Warming
Center
Pet Kennels
HMIS
compliance

People’s Self Help Housing
Public Services CDBG Proposal
IV. APPLICATIONS
Application A: Community/Supportive Services and Infrastructure Activities Funding sources available: CDBG, ESG, PLHA, GFS

1. APPLICANT INFORMATION
• Entity Name
People’s Self-Help Housing Corporation
• Ultimate Borrower, if applicable
N/A
• Application Contact (Name and Title)
Forrest Eastham, Grants Manager
• Contact Phone Number
(805) 548-2345
• Entity Address, City and Zip Code
1060 Kendall Road, San Luis Obispo, CA 93401
• Mailing Address (if different from above)
N/A
• Applicant’s Website
www.pshhc.org
• Unique Entity Identification (UEI) Number
TBD
• Type of Agency (501(c)(3), For Profit, Gov’t/Public, CHDO, Other) 501(c)3
• Date of Incorporation
July 1971
• Project Management
o Project Lead Name:

Rick Gulino, LCSW

o Title:

Director of Neighborhood Development and Resident Services o Phone:
(805) 540-2498
o Email:
[email protected]

2. PROJECT SUMMARY
• Project Title
Supportive Housing Services to Residents in Danger of Homelessness • Project Address
Arroyo Grande:
163 S Elm St.
351 S Elm St.
119 Juniper St.
150 S Courtland St.

Atascadero:
7480 Santa Ysabel
Avila Beach:
240 Ocean Oaks Ln.

Cambria:
2835 Schoolhouse Ln.

Los Osos:
1251 Los Olivos Ave.
1351 Los Olivos Ave.

Morro Bay:
2612 Elm St.
495 Main St.
456 Elena St.
375 Sequoia St.

Oceano:
1261 Belridge St
1720 17th St.

Paso Robles:
400 Oak Hill Rd.
401 Oak Hill Rd.
1255 Creston Rd.
2940 Spring St.

Pismo Beach:
360 Park Ave.
211 to 251 Addie St.
855 4th Street, Opening fall 2023, 50 units
San Luis Obispo:
537 Brizzolara St.
3071 S Higuera St.
3720 Broad St., Opening summer 2023, 40
units, including ADA units
Templeton:
999 Las Tablas Rd. (Rolling Hills I)
999 Las Tablas Road (Rolling Hills II)
1009 Petersen Ranch Rd.
1035 Petersen Ranch Road, Opening fall 2022,
36 units for seniors, including 10 for veterans
• APN #, if applicable
TBD

• Description of the Project
o Provide a project description that captures the maximum anticipated scope of the application. It should include all contemplated actions which logically are, either geographically or functionally, a composite part of the project, regardless of the source of funding. Describe all physical aspects of the project, such as plans for multiple phases of development, size and number of buildings, and activities to be undertaken. Include details of the physical impacts of the project, including whether there will be ground disturbance. If applicable, indicate whether the project site will require acquisition or if the sponsor already has ownership.

PSHH will provide clinical social services and case management of the Supportive Housing Program (SHP) to residents of PSHH’s 27 affordable rental properties in San Luis Obispo County. The over 80% of households are classified as very-low-income, earning 50% or less AMI. Services are primarily provided onsite at the properties where residents live, and virtually as needed by residents, weekdays between 9 am and 6 pm. Services are free, confidential, and always optional, provided by clinical social workers (LCSWs, ACSWs, LMFTs, and AMFTs) with a master’s degree in counseling or social services.

Services prevent homelessness among some of the region’s most vulnerable residents while enhancing housing stability and resiliency.

SHP staff is certified in trauma-informed care, a treatment framework that allows providers to understand, recognize, and respond to the effects of all types of trauma while emphasizing physical, psychological and emotional safety for both patients and providers. These practices assist survivors in rebuilding control and empowerment. After 18 months of living under the effects of the pandemic, residents’ need for our behavioral health support services is at an all-time high, and the scope of our social workers’ role has broadened vastly in response.

Services are provided in English and Spanish to any of the 751 households and 1,656 individuals in residence at PSHH properties in the County. Another 126 units are scheduled to open before or during the grant period, where SHP services will also be provided. These units will compose three properties, one in the City of San Luis Obispo, one in Pismo Beach, and one in Templeton. Please see the “Project Address” section for more information on these properties.

SHP services are free, confidential, completely optional, and available to all PSHH residents. Residents are never placed on a waiting list, and are provided immediate assistance to ensure that those at risk of homelessness remain stably housed. Social workers provide free and confidential assistance with coordinating medical appointments and mobility, linking residents to community resources, enhancing budgeting skills, and assisting with job placement and retention. Services also provide crisis intervention, address behavioral health challenges, access emergency financial assistance for basic needs, and more. SHP helps residents maintain critical transportation, enhance financial and family stability, and access PSHH’s resident emergency assistance fund when no other resources are available. Social workers maintain records of all client services, outcomes, and resources via a HIPPA-compliant client database.

We anticipate/have assisting/ed the following PSHH households in the following towns and regions:
• 52 of 98 households in Arroyo Grande, including those from properties for seniors & those with disabilities. No funds are being requested from Arroyo Grande. • 18 of 18 households in Atascadero

• 99 of 99 households in Morro Bay, including all 61 households at properties for seniors & disabled.

No funds are being requested from Morro Bay.
• 110 of 197 households in Paso Robles, including all 69 households at properties for seniors & disabled
• 16 of 26 households in Pismo Beach. No funds are being requested from Pismo Beach. • 59 of 73 households in San Luis Obispo, including households at Broad Street, which is scheduled to open in summer 2023
Unincorporated areas:
• 42 of 104 households in Los Osos
• 8 of 28 households in Oceano
• 26 of 29 households in Avila Beach
• 6 of 24 households in Cambria
• 78 of 112 in Templeton, including those from properties for seniors & those with disabilities • 160 of 297 total households in unincorporated SLO County.

3. BUDGET
• Funds Requested (Amount and Source)
Paso Robles, Public Services CDBG $11,449
Atascadero, Public Services CDBG $19,400
City of San Luis Obispo, Public Services
CDBG
$28,401
County of San Luis Obispo, Public
Services CDBG (Serving Oceano, Los
Osos, Avila Beach, Cambria, Templeton)
$61,338
TOTAL Requested $120,588
See next page for expenses per municipality/region.

EXPENDITURES TOTAL
SLO County
unincorporated (Oceano,
Los Osos, Avila Beach,
Cambria, Templeton)
Arroyo Grande
(No funds
requested)
Pismo Beach (No
funds requested) San Luis Obispo Morro Bay (No Funds Requested) Atascadero Paso Robles Salaries & Benefits 412,084.43 133,903.75 45,791.23 14,013.49 46,711.63 85,120.78 20,500.26 66,043.29 Independent Contractors 1,001.81 325.53 111.32 34.07 113.56 206.94 49.84 160.56 Professional Fees 8,014.52 2,604.26 890.58 272.54 908.48 1,655.49 398.70 1,284.46 Employment Services 50.09 16.28 5.57 1.70 5.68 10.35 2.49 8.03 Mileage 4,120.84 1,339.04 457.91 140.13 467.12 851.21 205.00 660.43 Travel 960.41 312.08 106.72 32.66 108.87 198.38 47.78 153.92 Workshops 1,204.81 391.49 133.88 40.97 136.57 248.87 59.94 193.09 Meals 277.17 90.06 30.80 9.43 31.42 57.25 13.79 44.42
Dues 166.97 54.26 18.55 5.68 18.93 34.49 8.31 26.76
Supplies 2,643.12 858.86 293.71 89.88 299.61 545.97 131.49 423.60 Postage 50.09 16.28 5.57 1.70 5.68 10.35 2.49 8.03
Computer Supplies 4,247.69 1,380.26 472.01 144.45 481.50 877.41 211.31 680.76 Telephone 2,704.90 878.94 300.57 91.98 306.61 558.73 134.56 433.50 Printing 400.73 130.21 44.53 13.63 45.42 82.77 19.94 64.22 Insurance 1,969.66 640.03 218.87 66.98 223.27 406.86 97.99 315.67 Advertising/Marketing 601.09 195.32 66.79 20.44 68.14 124.16 29.90 96.33 Miscellaneous 200.36 65.11 22.26 6.81 22.71 41.39 9.97 32.11 TOTAL OPERATING EXPENSES 440,698.69 143,201.74 48,970.87 14,986.56 49,955.18 91,031.39 21,923.76 70,629.20 Indirect 148,242.30 48,170.23 16,472.83 5,041.18 16,803.93 30,621.15 7,374.72 23,758.26 TOTAL EXPENDITURES 588,940.99 191,371.97 65,443.70 20,027.74 66,759.12 121,652.54 29,298.47 94,387.46 NET INCOME (LOSS) before depreciation (145,098.67) (56,806.44) 6,807.76 (5,573.74) (26,820.62) (34,784.43) (18,706.78) (9,214.43) Depreciation Expense (13,945.25) (4,531.40) (1,549.61) (474.23) (1,580.76) (2,880.55) (693.74) (2,234.95) NET INCOME (LOSS) (159,043.92) (61,337.84) 5,258.15 (6,047.96) (28,401.37) (37,664.98) (19,400.52) (11,449.39) People's Self-Help Housing
Expense budget by municipality/region

• Total Project/ Program Cost (Identify funding to be used to support the project throughout affordability period, if applicable)
$588,941
• Identify leveraged funds (Committed, Match, Not Yet Committed) Because this project does not begin for approximately 14 months, no other grant funds are committed to the project at this time. Based on historical funding sources, we are forecasting the following funds, all of which are not yet committed:

REVENUES County of SLO
Total
Federal Grants
Grant Revenue
County of SLO CDBG 134,493.00
HUD/U.S. Dept. of Housing and Urban Development 91,346.00 Neighborworks Grant 27,060.83
City of San Luis Obispo 5,850.00
County of SLO - Preventive Healthcare (PHG) 25,000.00
Avila Beach Community Foundation 2,000.00
SLO Community Foundation 28,000.00
Total Grant Revenue 313,749.83
Property Service & Program Revenue
Assistant Manager Revenue (Creston Gardens) 4,228.80
Assistant Manager Revenue (OVM) 3,048.00
Assistant Manager Revenue (Rolling Hills) 5,439.06
Assistant Manager Revenue (Rolling Hills II) 5,439.06
Assistant Manager Revenue (LRT) 3,048.00
Assistant Manager Revenue (AGA) 1,032.00
Supportive Housing Fees from Props 233,302.57
Assistant Manager Revenue (SBA) 6,000.00
Assistant Manager Revenue (CYN) 3,048.00
Property Service & Program Revenue 264,585.49
TOTAL REVENUES 578,335.32

• Identify additional rental assistance in project, if applicable Prior to the California shelter-at-home order, PSHH provided over $25,000 per year in rental, utility, and other emergency financial assistance paid on behalf of residents to service providers. These funds were distributed as needed to households in San Luis Obispo, Santa Barbara, and Ventura counties. Post shelter-at-home, PSHH has distributed over $35,000 in emergency funds paid on behalf of households. • Indicate how the match requirement will be met (include sources and source documentation), if applicable.

N/A

4. PURPOSE & NEED
• Purpose of the Proposed Project. Describe the project by addressing each of the following:
o What activities will be undertaken?
PSHH’s Supportive Housing Program will provide clinical social services and case management to residents of our 26 sliding-scale, affordable rental properties located in San Luis Obispo County.

Households are certified as very-low-income at time of move-in, as determined by earning 50% or less of Area Median Income, per HUD income limits. Within SLO County, our housing is located in the cities of Arroyo Grande, Atascadero, Avila Beach, Cambria, Los Osos, Morro Bay, Oceano, Paso Robles, Pismo Beach, San Luis Obispo, and Templeton. On move-in, PSHH Property Managers schedule an orientation meeting with the resident, at which time the resident receives program outreach and contact information for common SHP resources. Once a resident initiates services, SHP clinical case managers arrange an intake meeting to assess household needs, establish resiliency goals, and co-develop an individualized case management plan to attain those. Services are typically provided weekdays between 9 am and 6 pm, and always by a licensed or associate clinical social worker or marriage and family therapists (LCSWs, ACSWs, LMFTs, and AMFTs.). Grant funding will support the five social workers and two clinical supervisors providing SHP services in San Luis Obispo County.

Services are provided in English and Spanish to any of the 751 households and 1,609 residents living at our 26 affordable rental properties in the County. SHP services are free, confidential, and available to all PSHH residents on a voluntary basis. Residents are never placed on a waiting list and are always provided immediate assistance to ensure those at risk of homelessness recidivism remain stably housed. As new residents are considered to remain at risk of homelessness recidivism, SHP staff also ensure housing retention through personal finance coaching, job skills acquisition and career placement services to help them build personal resiliency. SHP services allow seniors to age in place independently and with dignity through regular wellness checks, medical assistance and transportation, and preventive health screenings.

Social workers assist residents living with mobility and cognitive disabilities in accessing community resources needed for safe, independent living, such as securing accommodations, medical coverage, and adaptive technology.
o What are the project goals and objectives?
PSHH proposes the continuation of SHP services at PSHH properties throughout San Luis Obispo County. SHP will serve approximately 514 households through over 3,500 hours of clinical social work and case management. Services are provided in English and Spanish to any members of any of the households residing at PSHH’s affordable supportive housing properties in the County. These include:
• 18 in Atascadero

• 110 in Paso Robles, including those from housing for seniors and those experiencing disabilities • 33 in San Luis Obispo
• 104 in Los Osos
• 28 in Oceano
• 29 in Avila Beach
• 24 in Cambria
• 112 in Templeton, including those from housing for seniors and those experiencing disabilities • 160 total in unincorporated San Luis Obispo County
While PSHH does not propose to make the following outcomes part of the goals of the project, as no funds are requested from the following municipalities, it should be noted that we also forecast serving the following households in San Luis Obispo County:
• 52 households in Arroyo Grande, including those from housing for seniors and those experiencing disabilities
• 99 in Morro Bay, including those from housing for seniors and those experiencing disabilities • 26 in Pismo Beach
During the grant period, 98% of SHP clients will maintain stable housing for six months after initiating program services, meeting the requirement for reaching housing stability as established by HUD, which provides CDBG funding.

Our approach recognizes that just providing affordable housing is not enough. It must be healthy housing which includes easy access to transportation hubs, good paying jobs, healthy activities, and food systems, all of which support a life full of opportunity for vulnerable populations. Our priority is to assist residents in meeting their most basic needs of food, housing, income security, and health. To help residents achieve stability, our social workers provide free and confidential assistance with:
• coordinating medical appointments and mobility
• linking residents to community resources
• enhancing budgeting skills
• assisting with job searches
• providing crisis intervention
• addressing mental health issues
• accessing emergency financial assistance for basic needs During the grant period, SHP will continue to evaluate emerging resident needs, including those continuing to stem from the economic impact of COVID-19 on low-income households, in order to better assist residents in addressing household challenges. Evaluation of emerging needs not only guides SHP services, but provides insight for PSHH as a whole, guiding organizational policy development and the establishment of new services.
o Explain the need being addressed by this project.

Today, 16% of households who live at PSHH properties transitioned out of homelessness upon moving into a PSHH home. While this transition to permanent supportive housing means that our residents are no longer served by homelessness service providers, we recognize that that the unique needs and challenges faced by this population means these households tend to require a higher level of service and assistance to prevent recidivism. We draw on nearly 20 years of providing SHP services to the recently homeless to ensure their transition is successful and permanent. PSHH currently houses

With 94% of all PSHH households in San Luis Obispo County qualifying as HUD low-income households, SHP clients are at risk of homelessness. Longitudinal studies show that an inability to pay rent or a utility bill frequently escalates into eviction and homelessness. PSHH keeps vulnerable members of San Luis Obispo County securely housed and building resiliency, rather than suffering eviction and moving on to levels of care that are more costly for the community. The San Luis Obispo County 2022 Point In Time Count indicates that among unsheltered respondents, 38% said financial assistance or income could have prevented them from becoming homeless, 31% said rental assistance, 21% said employment assistance, 19% said food assistance, and 17% said transportation assistance. SHP provides enhanced access to all of these. In 2021, PSHH provided SHP services to 57% of San Luis Obispo County households, providing services that prevent homelessness.

SHP administers a needs assessment to new clients and then works with residents to co-develop a case management plan to meet their personal resiliency goals. Residents stabilize by meeting their immediate needs, such as personal care items, food, health screenings, prescriptions, and a telephone. Next, they are assisted in obtaining resources that will sustain these, such as employment, nutritional security, health insurance, and critical transportation. When they are ready, SHP helps these residents with more personalized needs, such as seeking legal aid, physical and mental health care, education, personal finance coaching, and help reconnecting with family, friends and support networks. o Explain how the need was identified.

According to California Housing Partnership’s 2021 Affordable Housing Needs Report, 82% of verylow-income households are considered extremely rent-burdened, paying over half their income on housing costs and placing them at risk of homelessness. Additionally, 9,187 low-income renter households in the county lack access to an affordable home. In 2022, the average Fair Market Rent for a 2-bedroom apartment within the county was $1,890 per month, representing a 13.51% increase from the previous year and placing the region in the 99th percentile for housing costs among other Fair Market Rent areas. This means renters in the county need to earn over 2.5 times the minimum wage to afford the monthly asking rent. Additionally, the County’s most recent homelessness Point-in-Time Census count, there were 1,483 homeless individuals living in the county. Of respondents, 66% cited unaffordability of rent as the primary cause of homelessness. A significant portion of these individuals were also living with untreated health conditions, where 41% of respondents were living with a disability, and over a third were living with severe behavioral health conditions such as PTSD.

Housing is widely understood to be a social determinant of physical and mental health, access to opportunity, and lifelong fulfillment. While supportive housing is predominantly used as a tool to prevent recidivism when housing those transitioning out of homelessness, it has also been demonstrated to be highly effective at stabilizing extremely low- to very low-income households. The benefits of supportive housing are particularly evident among historically underserved ethnic and racial demographics, which have faced widening economic and health disparities as a result of the Covid-19 pandemic. Studies have shown a direct positive association between supportive housing and improved behavioral health, decreased incidence of substance abuse, and household financial resiliency following six months of residency.

The US Department of Housing and Urban Development (HUD) establishes the Area Median Income (AMI) determinations for households of varying sizes in a given region. One half of households in a region will have an income below the AMI, and one half will be above AMI. For instance, a family of three earning less than 50% AMI in San Luis Obispo County is earning less than $48,900 per year.

The SHP model provides a path to housing stability for our residents that is in line with best practices from the private and public sectors and has proven effective and sustainable for decades. While many organizations provide affordable housing, and others clinical case management, too few have integrated the two. PSHH engages in advocacy to enhance public infrastructure that supports this model and shares information with other affordable housing organizations to further this model nationwide. o Who are the beneficiaries? How will eligibility be determined? The project and activities will serve seniors, veterans, persons living with disabilities, farmworker families, those transitioning out of homelessness, and individuals from historically under-resourced racial and ethnic demographics, all of whom are low-income upon move-in. Currently, 94% of PSHH household are low-income, earning 80% or less AMI. Within the County's geographic footprint, 62% of our residents are Latino, 17% of heads of household are living with a disability, 10% are veterans, 57% are female, over one-third are seniors, and 16% were previously homeless.

These populations will benefit from access to onsite clinical social services and preventive health care.

Seniors will benefit from services that enable them to age in place and with dignity, and will receive regular wellness checks, health screenings, assistance with medical appointment coordination and transportation, and nutrition assistance. Veterans and those living with disabilities will benefit from access to onsite clinical case management, assistance securing accommodations and adaptive technology, and safe, thoughtfully-designed ADA-accessible housing which promotes dignified, independent living.

Residents making the transition out of homelessness will benefit from financial coaching, career access services, behavioral health counseling and homelessness prevention programming. English Language Learners also benefit from culturally-relevant social services, mediation and language support provided by social workers, and access to PSHH's Camino Scholars Education Program, which provides free afterschool support in literacy and math to families of students residing at PSHH properties in Paso Robles.
o Is there community and/or political support? Explain.

An integral part of ensuring SHP service provision and ensuring seamless quality of care is forging partnerships with a diverse range of community resources that promote health, safety, and long-term resiliency. Some of the agencies we regularly work with in San Luis Obispo County include:
• 5 Cities Homeless Coalition for rental and deposit assistance • SLO County public health for pop-up Covid-19 vaccine clinics • Cuesta Community College for English as a Second Language classes • Housing Authority of the City of San Luis Obispo for Housing Choice Vouchers and Rental and Security Deposit Assistance
• The Department of Housing and Urban Development’s Veterans Affairs Supportive Housing for vouchers for homeless veterans, who in turn are prioritized on our waiting lists and receive a waived background check fee
• Noor Clinic SLO for senior dental care and health screenings • San Luis Obispo County Social Service Administration enhancing access to benefits such as Cal Fresh, Cash Assistance and In-Home Supportive Services
• SLO County Food Bank and the Salvation Army for food distribution • Catholic Charities for emergency assistance with rental and utility payments

• CAPSLO for utility assistance and the Supportive Services for Veteran Families to provide access to financial and legal assistance and employment counseling • SLO Safe Ride & Ride-On for senior & access shuttle, veterans express, and medical transportation
• Transitions Mental Health and County Behavioral Health for behavioral health support • Community Health Centers for resident health screenings and care • San Luis Obispo County Community Garden Network for community garden spaces at properties for seniors and those living with disabilities
While this list provides some of the most significant examples of PSHH’s cooperative relationships with outside agencies in San Luis Obispo County, it is by no means comprehensive. o Describe how the impact will be sustained once this round of funding ends.

PSHH provides SHP to residents on an ongoing basis, continuing to provide services until clients no longer need or desire services. Funds are raised via local, regional, and national grantors, individual and corporate giving, and through rental fees collected at PSHH rental properties. • Organizational Capacity. Summarize the organization's background/capacity to carry out the proposed project. Address the following points:
1) Has the organization carried out this type of project previously? Explain. 2) What makes the organization a preferred provider of this service?
This program has been continuously operating for over 18 years. SHP is available to every household that lives at a PSHH property on the Central Coast. Agency-wide 98% of SHP clients maintain stable housing for six months after initiating program services, meeting the requirement for housing stability as established by HUD, which provides CDBG funding. SHP is open to each of the 5,500+ resident of our 53 affordable rental properties in San Luis Obispo, Santa Barbara and Ventura counties, ensuring that every household is given the opportunity to create a safe, healthy, and secure home. Last calendar year, SHP served 1,204 households, 63% of all PSHH households, across three counties through nearly 20,000 hours of service, with 676 referrals to partnering agencies. Case managers also helped distribute emergency assistance funds to over 100 families with pressing rental and utility relief needs.

SHP is housed in the Department of Neighborhood Development and Resident Services, headed by Rick Gulino, a Licensed Clinical Social Worker (LCSW), and is staffed by two Clinical Supervisors, six Bilingual Social Workers, and three Social Workers, all licensed or associate clinical social workers or marriage and family therapists. PSHH also partners with regional universities and colleges to provide internships to social work graduate students.

5. ELIGIBILITY
• Indicate the eligible activity category for this project, using the lists above.

Public Services

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

July 2020 — Grant period begins. Clients already receiving SHP services continue receiving services under the grant-funded project. Outreach and program onboarding continue. New resident information is entered into the resident database, and is used to identify client demographics when a resident becomes an SHP client. Clinical social workers enter new client information into the SHP database and continue entering case notes into the SHP database. Clinical social workers continue providing case management.

August 2020 — Program continues.

September 2020 — Program continues.

October 2020 — First quarter grant report filed.

November 2020 — Program continues.

December 2020 — Program continues.

January 2021 — Second quarter grant report filed.

February 2021 — Program continues.

March 2021 — Program continues.

April 2021 — Third quarter grant report filed.

May 2021 — Program continues.

June 2021 — Program concludes on June 31, meeting metrics and milestones as outlined in this application.

August 2021 — Annual grant report filed.
• Describe agency’s record keeping system with relevance to the proposed project and how reporting requirements will be met.

PSHH uses two databases that are relevant to the project. The first is the organization’s resident database, which stores information on every PSHH household, including household members, ages, race and ethnicity, income at move-in, and income at the most recent recertification. This database is maintained by the Property Management Department.

The second database is the SHP program database, which is used to store case management records, and is maintained by PSHH clinical social workers. This database includes case files and notes, which are tagged for specific services provided during instances of service, and it is easily cross referenced with the resident database. These tags are relevant to various outcomes, outputs, and funder reports. Examples of service tags include crisis intervention, healthcare services, food assistance, transportation, counseling services, and legal issues.

7. ADDITIONAL INFORMATION
• Has site control been obtained? If so, how is site control held? Attach documentation of site control.

N/A
• Zoning. Is the current project location zoned for the proposed activity? If not, describe steps to be taken to ensure zoning requirements are met.

Activities take place at PSHH affordable housing properties where residents live. PSHH services are in alignment with all zoning requirements.
• If applicable, indicate the application due date for tax credits.

N/A
• Identity all permits necessary for the project. Include estimated dates of application and approval.

Services are provided by qualified clinical social workers (LCSWs, ACSWs, LMFTs, and AMFTs), licensed by the State of California Board of Behavioral Sciences. All required licensing is secured by individual social workers prior to employment within the program. • Does this Project require Relocation? If so, attach Relocation Plan.

No, this project does not require relocation.
• Indicate Housing Type (Permanent Homeowner Housing, Rental Housing, Transitional Housing).

PSHH provides rental housing in the form of affordable, sliding-scale, supportive housing units at multifamily housing properties. • Does the Project intend to target special populations (such as seniors, persons with disabilities, children in foster care, etc.)?
This project targets low-income households. Upon move-in, most PSHH households must earn 50% or lower Area Median Income (AMI) as established per-county by HUD. Over 95% of PSHH households in San Luis Obispo County earn 80% or less of AMI, qualifying them as low-income households by standards established by HUD, the federal provider of CDBG funding. This project also serves seniors, persons with disabilities, female heads of households, and Latinx community members. • Will the Applicant be providing services? If so, please provide a brief explanation.

Yes, all services described in this proposal are provided directly by PSHH and its employees. While clinical social workers do make referrals to outside agencies to best assist households in establishing stability and resiliency, case management as described in this proposal is provided solely by PSHH.

8. ENVIRONMENTAL REVIEW
• Indicate level of environmental review required for proposed project.

N/A
• Indicate environmental review steps completed to date.

N/A

9. SECTION 3 AND MINORITY AND WOMEN BUSINESS ENTERPRISES (AS APPLICABLE) • Section 3: Please explain how Section 3 benchmarks will be met.

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

N/A

10. ADDITIONAL REQUIRED DOCUMENTS
• Articles of Incorporation/Bylaws
• Non-profit Determination
• List of the Board of Directors
• Authorization to Request Funds
• Designation of Authorized Official
• Organizational Chart
• Most Recent Financial Audit
• Policies and Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Click or tap here to enter text.

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

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

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

Click or tap here to enter text.

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

Arroyo
Grande Atascadero Morro Bay
Paso
Robles
Pismo
Beach
San Luis
Obispo County
Personnel (Direct Labor)
Estimated
Hours
Rate per
Hour Estimated Cost
Housing Program Manager 0.3 624 $34 $21,216 $8,199 $8,093 $707 $252 $189 $881 $283 $1,097 $1,574 RRH/HP Case Manager (2 FTE) 2 4,160 $24 $99,840 $38,586 $38,086 $3,325 $1,185 $889 $4,148 $1,330 $5,164 $7,407 HMIS Data Manager (.16 FTE) 0.16 333 $24 $7,987 $3,087 $3,047 $266 $95 $71 $332 $106 $413 $593 HMIS Program Support Specialist (.5 FTE) 0.5 1,040 $20 $20,800 $8,039 $7,935 $693 $247 $185 $864 $277 $1,076 $1,543 Fringe Benefits Rate (%) Base Estimated Cost
Housing Program Manager 18.00% $3,819 $1,476 $1,457 $127 $45 $34 $159 $51 $198 $283 RRH/HP Case Manager (3 FTE) 18.00% $17,971 $6,945 $6,856 $599 $213 $160 $747 $239 $929 $1,333 HMIS Data Manager (.16 FTE) 18.00% $1,438 $556 $548 $48 $17 $13 $60 $19 $74 $107 HMISProgram Support Specialist (.5 FTE) 18.00% $3,744 $1,447 $1,428 $125 $44 $33 $156 $50 $194 $278 Travel
Vehicle Maintenance & Repair - Housing Stabilization Services Estimated Cost Supplies and Materials
Housing & Stabilization Program Supplies $1,000 $386 $381 $33 $12 $9 $42 $13 $52 $74 HMIS Telephone/Equipment $2,000 $773 $763 $67 $24 $18 $83 $27 $103 $148 Other Direct Costs Households Base
RRH & Stabilization Services
Deposits/Application Fees 20 $2,500 $50,000 $19,324 $19,074 $1,665 $593 $445 $2,077 $666 $2,586 $3,709 Short-Term Rental Assistance 20 $2,000 $40,000 $15,459 $15,259 $1,332 $475 $356 $1,662 $533 $2,069 $2,967 Homeless Prevention & Stabilization Services
Deposits/Application Fees 10 $3,000 $30,000 $11,594 $11,444 $999 $356 $267 $1,246 $400 $1,552 $2,226 Short-Term Rental Assistance (3 mo assistance/avg)12 $4,800 $57,600 $22,261 $21,973 $1,919 $684 $513 $2,393 $767 $2,979 $4,273 Subtotal of Direct Costs 10% $35,741 $13,813 $13,634 $1,190 $424 $318 $1,485 $476 $1,848 $2,652 Total Estimated Costs $393,156 $151,945 $149,978 $13,095 $4,667 $3,500 $16,333 $5,238 $20,333 $29,167 $151,945 $149,978 $13,095 $4,667 $3,500 $16,333 $5,238 $20,333 $29,167 $147,000 $14,000 $10,500 $49,000 $14,000 $61,000 $87,500 Likely to spend per jurisdiction based on prior year service at $3.500/HH $147,000 $112,000 $17,500 $84,000 $38,500 $119,000 $133,000 # Households Served 2022 YTD By Jurisdiction
RRH 11 28 2 10 7 16 25
HP 31 4 3 14 4 18 13
42 32 5 24 11 34 38
5Cities Homeless Coalition Rapid Rehousing/Homeless Prevention Budget Request - 23-24 ACTION PLAN CDBG
ESG
Request By Funding Source
Expense Category PLHA

Application B: Housing Activities
Funding sources available: CDBG, HOME, Title 29, PLHA

1. APPLICANT INFORMATION
 Entity Name San Luis Obispo Non-profit Housing Corporation / (HASLO)  Ultimate Borrower, if applicable A to be formed LP
 Application Contact (Name and Title) Ken Litzinger, CFO  Contact Phone Number 805-594-5304
 Entity Address, City and Zip Code 487 Leff Street, San Luis Obispo, CA 93401  Mailing Address (if different from above) Same
 Applicant’s Website www.haslo.org
 Unique Entity Identification (UEI) Number DKJWAFNQ2JN4  Type of Agency (501(c)(3), For Profit, Gov’t/Public, CHDO, Other) 501(C)(3) & CHDO  Date of Incorporation 10/15/1991

2. PROJECT SUMMARY
 Project Title Orcutt Road Apartments
 Project Address(es) 736 Orcutt Road, San Luis Obispo, CA  APN(s) 053-201-014
 Description of the Project
Provide a project description that captures the maximum anticipated scope of the application. It should include all contemplated actions which logically are, either geographically or functionally, a composite part of the project, regardless of the source of funding. Describe all physical aspects of the project, such as plans for multiple phases of development, size and number of buildings, and activities to be undertaken. Include details of the physical impacts of the project, including whether there will be ground disturbance. If applicable, indicate whether the project site will require acquisition or if the sponsor already has ownership.

Orcutt Road Apartments is a 100% affordable housing project consisting of 39 units of low‐income affordable housing, 1 managers unit, 1,000 SF Community Space, and 850 SF existing commercial space to remain. This project will primarily serve those experiencing homelessness or at risk for homelessness, and is strongly supported by City staff.  The property was previously used as the Maxine Lewis Homeless Shelter which provided 49 beds to serve unhoused community members. The project has chosen “All‐Electric” building design to meet REACH code compliance for the residential portion of the project.  The project will include bicycle storage space for tenants.

3. BUDGET
 Funds Requested (Amount and Source) $2,000,000 in CDBG & Home Funds  Total Project/ Program Cost (Identify funding to be used to support the project throughout affordability period, if applicable) Total Project Costs: $18,701,380, See attached Sources & Uses schedule
 Identify leveraged funds (Committed and Not Yet Committed) City of San Luis Obispo CDBG and Affordable Housing Funds. Not yet committed.  Identify additional rental assistance in project, if applicable It is anticipated that 100% of the units will have either tenant based rental assistance or project based rental assistance. This will allow the project to serve qualified applicants

regardless of income levels, and to quickly house those experiencing homelessness or at risk for homelessness.
 Indicate how the match requirement will be met, if applicable. Low Income Housing Tax Credits

4. PROJECT MANAGEMENT
 Project Lead Name: Ken Litzinger
o Title: CFO
o Phone: 805-594-5304
o Email: [email protected]
 Project Team
Please include information on the project team in the table below. Describe the roles, financial structure, and legal relationships of the entities identified in the project team table below.

Team
Member
Contact Person/Phone
Number
Company Name/Address
Developer Ken Litzinger 805-594-
5304
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Owner(s) Ken Litzinger 805-594-
5304
HASLO 487 Leff St, San
Luis Obispo, CA 93401
General
Partner(s)
(Please
specify if
managing,
sole, etc.)
Ken Litzinger 805-594-
5304
San Luis Obispo Nonprofit Housing Corp, 487
Leff St, CA 93401
Sponsor Ken Litzinger 805-594-
5304
San Luis Obispo Nonprofit Housing Corp, 487
Leff St, CA 93401
Administrative
Subagreement

N/A N/A
General
Agreement
Click or tap here to enter
text.

Click or tap here to enter
text.

Architect TBD Click or tap here to enter
text.

Construction
Specialist
Michael Burke 805-594-
5330
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Construction
Lender
TBD Click or tap here to enter
text.

Permanent
Lender
TBD Click or tap here to enter
text.

Property
Management
Company
Elaine Archer, 805-594-
5331
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Relocation
Consultant
N/A Click or tap here to enter
text.

Market
Analyst
Click or tap here to enter
text.

Click or tap here to enter
text.

Service
Provider(s)
Elaine Archer, 805-594-
5331
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Green
Building &
Sustainability
Consultant
Click or tap here to enter
text.

Click or tap here to enter
text.

Other Project
Partners:

Financial
Consultant
Click or tap here to enter
text.

Click or tap here to enter
text.

5. PURPOSE & NEED
 Purpose of the Proposed Project. Describe the project by addressing each of the following:
 What activities will be undertaken? Construction of 39 units, plus manager unit, primarily for those experiencing homelessness, or at risk for homelessness.  What are the project goals and objectives? Provide 39 new construction affordable housing units with rental assistance which will allow the project to deeply target units for those at Extremely Low income. There will be a strong Supportive Services component provided to tenants.
 Explain the need being addressed by this project. Primary purpose is to provide permanent housing to those experiencing homelessness or at risk for homelessness and provide supportive services.
 Explain how the need was identified. The City of San Luis Obispo and CAPSLO has identified the need for a project to provide permanent housing with supportive services for those who are homeless or are at risk for homelessness.  Who are the beneficiaries? How will eligibility be determined? Primarily those experiencing homelessness or at risk for homelessness. All income levels will be served.
 Is there community and/or political support? Explain. Yes, HASLO has been asked to prioritize this project for the community. The project has received all required City approvals.
 Describe how the impact will be sustained once this round of funding ends. These units will be restricted for affordable housing for 55 years.  Organizational Capacity. Summarize the organization's background/capacity to

carry out the proposed project. The narrative should address the following points:
o Has the organization carried out this type of project previously? Explain. Yes, SLONP and HASLO have been developing affordable housing for 40+ years.
o What makes the organization a preferred provider of this service? SLONP and HASLO are local developers who provide locate property management and services for the units developed. SLONP is dedicated to ensuring these units benefit the community permanently.

6. ELIGIBILITY
 Indicate the eligible activity category for this project. Creation of new construction affordable housing units.

7. SCHEDULE
 Provide a detailed project timeline, include milestones with units of measure. See exhibit
 Describe agency’s record keep system with relevance to the proposed project and how reporting requirements will be met. HASLO administers Federal, State, and Local grants, and has strong systems and controls in place. HASLO will provide the record keeping services for the project. Both HASLO and SLONP undergo annual audits by an independent CPA firm.

8. ADDITIONAL INFORMATION
 Has site control been obtained? If so, how is site control held? Attach documentation of site control. Yes, HASLO currently owns the site, and will provide site control to a to be formed tax credit partnership via a long-term land lease agreement. This is consistent with recent projects completed with the County’s partnership.
 Zoning. Is the current project location zoned for the proposed activity? If not, describe steps to be taken to ensure zoning requirements are met. Yes, the proposed development is consistent with land use and zoning requirements.  If applicable, indicate the application due date for tax credits. July2nd ,2023  Identity all permits necessary for the project. Include estimated dates of application and approval. Only remaining permit is the building permit, which is anticipated by January, 2024.
 Does this Project require Relocation? If so, attach Relocation Plan. No.  Indicate Housing Type (Permanent Homeowner Housing, Rental Housing, Transitional Housing). Permanent Affordable Rental Housing, primarily reserved for those experiencing homelessness or at risk for homelessness.  Does the Project intend to target special populations (such as seniors, persons with disabilities, children in foster care, etc.)? Yes, this project will be primarily designated for those experiencing homelessness or at risk for homelessness.

Additionally, project based rental assistance will be provided, allowing the project to serve tenants at Extremely Low income levels and below.  Will the Applicant be providing services? If so, please provide a brief explanation.

HASLO will be providing resident services and significant supportive housing services.

9. ENVIRONMENTAL REVIEW
 Indicate level of environmental review required for proposed project. Proposed project is exempt from CEQA. NEPA is anticipated.
 Indicate environmental review steps completed to date. Notice of Exemption filed for CEQA determination.

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

APPLICABLE)
 Section 3: Please explain how Section 3 benchmarks will be met. The construction bid documents will contain Section 3 requirements, which will be included in the construction contract. Contractor will be required to utilize best efforts to demonstrate compliance.
 MBE/WBE: Please explain how your project will be marketed towards MBE/WBEs. The construction bid documents will contain MBE/WBE requirements, which will be included in the construction contract. Contractor will be required to utilize best efforts to demonstrate compliance.

11. ADDITIONAL REQUIRED DOCUMENTS

1. Articles of Incorporation/Bylaws

2. Non-profit Determination

3. List of the Board of Directors

4. Authorization to Request Funds

5. Designation of Authorized Official

6. Organizational Chart

7. Most Recent Financial Audit

8. Policies and Procedures

9. SAM Search

10. Sources and Uses Statement

11. Timeline of Project Expenditures

12. Timeline of Project Milestones

13. Phase I or II Environmental Assessment

14. Site Photos

15. Complete construction drawing package

16. Commitment Letters

17. Operating Pro forma for length of period of affordability

18. Partnership agreement and equity letters indicating general and limited partner contributions

19. Rent schedule for rental housing project

Application B: Housing Activities
Funding sources available: CDBG, HOME, Title 29, PLHA

1. APPLICANT INFORMATION
• Entity Name San Luis Obispo Non-profit Housing Corporation / (HASLO) • Ultimate Borrower, if applicable A to be formed Limited Partnership • Application Contact (Name and Title) Ken Litzinger, CFO • Contact Phone Number 805-594-5304
• Entity Address, City and Zip Code 487 Leff Street, San Luis Obispo, CA 93401 • Mailing Address (if different from above) Same
• Applicant’s Website www.haslo.org
• Unique Entity Identification (UEI) Number DKJWAFNQ2JN4 • Type of Agency (501(c)(3), For Profit, Gov’t/Public, CHDO, Other) 501(C)(3) & CHDO • Date of Incorporation 10/15/1991

2. PROJECT SUMMARY
• Project Title Bridge Street Family Apartments
• Project Address(es) 279 Bridge St, San Luis Obispo, 93401 • APN(s) 004-811-036
• Description of the Project
Provide a project description that captures the maximum anticipated scope of the application. It should include all contemplated actions which logically are, either geographically or functionally, a composite part of the project, regardless of the source of funding. Describe all physical aspects of the project, such as plans for multiple phases of development, size and number of buildings, and activities to be undertaken. Include details of the physical impacts of the project, including whether there will be ground disturbance. If applicable, indicate whether the project site will require acquisition or if the sponsor already has ownership.

Bridge Street Family Apartments is a 31 unit 100% affordable Family Tax Credit project located in the city of San Luis Obispo. The 31 apartments include an exempt managers unit pursuant to LIHTC guidelines. The site improvements include several outdoor green spaces with seating and play areas, with a community courtyard along the Meadow Creek. The project site is located in close proximity to Meadow Park and South Hill hiking trails, with an existing pedestrian and bike access way from the end of Bridge Street to Exposition Drive. Two additional affordable housing projects are planned on adjacent parcels in the future phases.

3. BUDGET
• Funds Requested (Amount and Source) $2,614,467 in City & Cty CDBG & HOME & Title 29
• Total Project/ Program Cost (Identify funding to be used to support the project throughout affordability period, if applicable) Total Project Costs: $23,000,523.

See attached Sources & Uses schedule.
• Identify leveraged funds (Committed and Not Yet Committed) City of San Luis Obispo Affordable Housing Funds. Not yet committed.
• Identify additional rental assistance in project, if applicable Click or tap here to enter text.

• Indicate how the match requirement will be met, if applicable. Low Income Housing Tax Credits

4. PROJECT MANAGEMENT
• Project Lead Name: Ken Litzinger
o Title: CFO
o Phone:805-594-5304
o Email: [email protected]
• Project Team
Please include information on the project team in the table below. Describe the roles, financial structure, and legal relationships of the entities identified in the project team table below.

Team
Member
Contact Person/Phone
Number
Company Name/Address
Developer Ken Litzinger 805-594-
5304
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Owner(s) Ken Litzinger 805-594-
5304
HASLO 487 Leff St, San
Luis Obispo, CA 93401
General
Partner(s)
(Please
specify if
managing,
sole, etc.)
Ken Litzinger 805-594-
5304
San Luis Obispo Nonprofit Housing Corp, 487
Leff St, CA 93401
Sponsor Ken Litzinger 805-594-
5304
San Luis Obispo Nonprofit Housing Corp, 487
Leff St, CA 93401
Administrative
Subagreement

N/A N/A
General
Agreement
Click or tap here to enter
text.

Click or tap here to enter
text.

Architect TBD Click or tap here to enter
text.

Construction
Specialist
Michael Burke, 805-594-
5330
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Construction
Lender
TBD Click or tap here to enter
text.

Permanent
Lender
TBD Click or tap here to enter
text.

Property
Management
Company
Elaine Archer, 805-594-
5331
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Relocation
Consultant
N/A Click or tap here to enter
text.

Market
Analyst
Click or tap here to enter
text.

Click or tap here to enter
text.

Service
Provider(s)
Elaine Archer, 805-594-
5331
HASLO 487 Leff St, San
Luis Obispo, CA 93401
Green
Building &
Sustainability
Consultant
Click or tap here to enter
text.

Click or tap here to enter
text.

Other Project
Partners:

Financial
Consultant
Click or tap here to enter
text.

Click or tap here to enter
text.

5. PURPOSE & NEED
• Purpose of the Proposed Project. Describe the project by addressing each of the following:
• What activities will be undertaken? Construction of a 31 unit, including an exempt manager unit, 100% affordable Family project located in the city of San Luis Obispo. Note LIHTC considers an income exempt managers unit to still be a 100% affordable project.
• What are the project goals and objectives? Provide 30 new construction affordable housing units at Low, Very Low, and Extremely Low income levels. • Explain the need being addressed by this project. Provides desperately needed affordable housing units
• Explain how the need was identified. Affordable housing is identified as one of the most critical needs facing the City and County of San Luis Obispo • Who are the beneficiaries? How will eligibility be determined? All units will be reserved for tenants at Low, Very Low, and Extremely Low Income levels. • Is there community and/or political support? Explain. Yes. All City project approvals have been received, and City staff are supportive of the project. • Describe how the impact will be sustained once this round of funding ends. These units will be restricted for affordable housing for 55 years. The project will be financially self-sustaining, as tenant rents will cover all operating expenses. • Organizational Capacity. Summarize the organization's background/capacity to carry out the proposed project. The narrative should address the following points:
o Has the organization carried out this type of project previously? Explain. Yes, SLONP and HASLO have been developing affordable housing for 40+ years.
o What makes the organization a preferred provider of this service? SLONP and HASLO are community based local organizations that

have an award winning history of developing and operating affordable housing in San Luis Obispo County. As property management agent, HASLO coordinates with area non-profit service providers to accept homeless and other special high need referrals. Staff is certified in all aspects of compliance, and maintains detailed financial records and tenant files for audit purposes. SLONP is dedicated to ensuring these units benefit the community permanently.

6. ELIGIBILITY
• Indicate the eligible activity category for this project. New construction of affordable housing units.

7. SCHEDULE
• Provide a detailed project timeline, include milestones with units of measure. See exhibit
• Describe agency’s record keep system with relevance to the proposed project and how reporting requirements will be met. HASLO administers Federal, State, and Local grants, and has strong systems and controls in place. HASLO will provide the record keeping services for the project. Both HASLO and SLONP undergo annual audits by an independent CPA firm.

8. ADDITIONAL INFORMATION
• Has site control been obtained? If so, how is site control held? Attach documentation of site control. Yes, HASLO currently owns the site, and will provide site control to a to be formed tax credit partnership via a long-term land lease agreement. This is consistent with recent projects completed with the County’s partnership.
• Zoning. Is the current project location zoned for the proposed activity? If not, describe steps to be taken to ensure zoning requirements are met. Yes, the proposed development is consistent with land use and zoning requirements. • If applicable, indicate the application due date for tax credits. March 1st, 2023 • Identity all permits necessary for the project. Include estimated dates of application and approval. Only remaining permit is the building permit, which is anticipated by November, 2023
• Does this Project require Relocation? If so, attach Relocation Plan. No. • Indicate Housing Type (Permanent Homeowner Housing, Rental Housing, Transitional Housing). Permanent Affordable Rental Housing • Does the Project intend to target special populations (such as seniors, persons with disabilities, children in foster care, etc.)? Yes, a portion of the units will be deeply income targeted for families at 30% of area median income. • Will the Applicant be providing services? If so, please provide a brief explanation.

HASLO will be providing resident and supportive services.

9. ENVIRONMENTAL REVIEW
• Indicate level of environmental review required for proposed project. Mitigated Negative Declaration completed for CEQA. NEPA anticipated. • Indicate environmental review steps completed to date. Mitigated Negative Declaration Adopted for CEQA determination.

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

APPLICABLE)
• Section 3: Please explain how Section 3 benchmarks will be met. The construction bid documents will contain Section 3 requirements, which will be included in the construction contract. Contractor will be required to utilize best efforts to demonstrate compliance.
• MBE/WBE: Please explain how your project will be marketed towards MBE/WBEs. The construction bid documents will contain MBE/WBE requirements, which will be included in the construction contract. Contractor will be required to utilize best efforts to demonstrate compliance.

11. ADDITIONAL REQUIRED DOCUMENTS

1. Articles of Incorporation/Bylaws

2. Non-profit Determination

3. List of the Board of Directors

4. Authorization to Request Funds – N/A

5. Designation of Authorized Official

6. Organizational Chart

7. Most Recent Financial Audit

8. Policies and Procedures

9. SAM Search

10. Sources and Uses Statement

11. Timeline of Project Expenditures

12. Timeline of Project Milestones

13. Phase I or II Environmental Assessment – Not yet completed

14. Site Photos

15. Complete construction drawing package

16. Commitment Letters – N/A

17. Operating Pro forma for length of period of affordability

18. Partnership agreement and equity letters indicating general and limited partner contributions

19. Rent schedule for rental housing project

COUNTY OF SAN LUIS OBISPO

DEPARTMENT OF PLANNING & BUILDING
2023 CDBG
ADMIN
2023 CDBG ADMIN APPLICATION FORM
976 OSOS STREET, ROOM 300 | SAN LUIS OBISPO, CA 93408 | 805-781-5600 | TTY/TRS 7-1-1 PAGE 1 OF 8 www.sloplanning.org | [email protected]
This application is designed to provide the participating jurisdictions of the Urban County of San Luis Obispo to apply for Community Development Block Grant (CDBG) Program Administrative and Planning and Capacity Building funds as allowed in 24 CFR 570.206 and 24 CFR 570.205. Completed applications should provide the necessary budget and itemize expenditures as allowed uses in §570.205 and §570.206.

Email your grant applications to [email protected], by the application deadline of 3:00 P.M., October 14, 2022. Please label your email subject with the grant program name and the agency name (Example: 2022 CDBG – City Name).

Consult with applicable federal regulations and County staff if you intend to apply for Planning and Capacity Building funds. Separate applications must be provided by the applicant for Administrative and Planning and Capacity Building activities.

APPLICANT INFORMATION
(1-1) City Name
DUNS Number
Contact Person/Title
Phone/Fax Numbers
Email
Address
City, State, Zip

PROJECT SUMMARY
(2-1) Project/Program Title
Project/Program Address
Jurisdiction/Area Served
Targeted clientele
Project type (select one):

Administration (24 CFR 570.206) Planning and Capacity Building (24 CFR 570.205) https://www.govinfo.gov/content/pkg/CFR-2012-title24-vol3/xml/CFR-2012-title24-vol3-sec570-206.xml https://www.govinfo.gov/content/pkg/CFR-2011-title24-vol3/xml/CFR-2011-title24-vol3-sec570-205.xml (2-2) Brief Project Description:
(2-3) Total CDBG Funding Requested $
Total Cost to Complete Project $
Anticipated Start Date: July 1, 2023 Anticipated End Date: June 30, 2024

2023 CDBG
ADMIN
2023 CDBG APPLICATION FORM
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AGENCY DETAILS, CAPACITY, AND EXPERIENCE
(3-1) Type of Agency 501 (c)(3) For Profit Gov’t/Public Faith-based Other:

Date of Incorporation Annual Operating Budget $
Number of Paid Staff Number of Volunteers
(3-2) Agency Mission Statement:
(3-3) Please describe your organization’s capacity to implement the proposed project/program. Who will be involved in the project/program? (In-house employees, contractors, other agency partners, etc.) (3-4) Briefly describe your agency’s record keeping system with relevance to the proposed project/program (For invoice payment and monitoring purposes please create a charge code specifically for the CDBG program, if one is not already in use):
(3-5) Briefly describe your agency’s auditing requirements, including those for the proposed project/program, and attach a copy of your most recent audit:
(3-6) Will the services offered by your organization increase or expand as a result of CDBG assistance? If YES, please answer the following two questions.

Yes No
What new programs or services will be provided?

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Describe how existing programs or services will be expanded and what percentage of an increase is expected?
(3-7) If your program serves homeless households, please describe how your program coordinates with other homeless service providers to connect homeless individuals and families to resources.

PROJECT DETAILS/DESCRIPTION
(4-1) Targeted Clientele: Individuals or households? Identify the projected target population your proposed activity will serve. (Include age, race, residency, handicap status, income level or other unit characteristics or subgroup information)
(4-2) Please describe the proposed project or program in detail. Make a case for why your project should be funded. Describe the need and the degree of urgency for the proposed project or program. What would the consequences be if the proposed project or program is not funded in the next year? Please attach a timeline of the project/program milestones.

2023 CDBG
ADMIN
2023 CDBG APPLICATION FORM
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FINANCIAL INFORMATION
(5-1) Itemize all sources by name of funding and amount expected to be available for each category, if applicable (please include commitment letters if available):

CDBG Funds Requested* $
Other Federal Fund(s) $
State Source(s) $
Local Source(s) $
Applicants Matching Funds $
Other: $
(5-2) Identify all jurisdictions you are applying to for CDBG funds. Indicate the amount applied for at each jurisdiction, and the total amount requested.

City of Arroyo Grande $
City of Atascadero $
City of Morro Bay $
City of Paso Robles $
City of Pismo Beach $
City of San Luis Obispo $
County of San Luis Obispo $
TOTAL $
(5-3) Please list expenditures under CDBG by item or cost category and attach a timeline of the expenditures.
$
$
$
$
$
$
$
TOTAL $
*20% cap: Costs that are charged to administrative costs and to Planning and Capacity Building per §570.205 and §570.206 are subject to the statutory limitation that not more than 20% of grant funds plus program income may be used for planning and administration and consistent with the Cooperative Agreement with the County of San Luis Obispo.

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ADMIN
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FEDERAL REQUIREMENTS ACKNOWLEDGEMENTS
Every person or Agency awarded a CDBG Contract or grant by San Luis Obispo County for the provision of services shall be required to certify to the County that they will comply with federal and local requirements including, but not limited to, those listed below. Please initial each certification listed to indicate you or your agency can and will comply with these requirements if funded.

Federal Requirements Initials
Americans with
Disabilities Act
Certify that this agency has reviewed its projects, programs, and services for compliance with all applicable regulations contained in Title II, Americans with Disabilities Act of 1990.

Audits Agrees to have an annual audit conducted in accordance with current San Luis Obispo County policy regarding audits and 2 CFR 200.501 audit requirements. Shall comply with current San Luis Obispo County policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided through the grant.

Conflict of Interest (2 CFR 200.112, 200.318, and 570.611) Certify and agree that no covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activity, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. A “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the agency
Civil Rights Act Certify that it complies with and prohibits discrimination in accordance with Title VI of the Civil Rights Act of 1964.

Debarment Status of
Contractors
Certify that, to the best of its knowledge and belief, that it and its principals will not knowingly enter into any subcontract with a person who is, or organization that is, debarred, suspended, proposed for debarment, or declared ineligible from award of contracts by any Federal agency
(https://www.sam.gov/portal/public/SAM/)
Drug-Free Workplace Certify that it will provide a drug-free workplace.

Financial
Management
Accounting Standards: Agrees to comply with 2 CFR 200(E)(F) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

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Cost Principles: Shall administer its program in conformance with 2 CFR 200(E), “Cost Principles for Non-Profit Organizations,” or 2 CFR 225, “Cost Principles for State and Local Governments,” as applicable.

These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.

Procurement Policies: Certify and agree to procure all materials, property, or services in accordance with the requirements of 2 CFR 200.320-326.

Lobbying Activities Certify that no Federal appropriated funds have been paid or will be paid, by or on behalf of the agency, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement.

Minority Business
Enterprise (MBE),
Women’s Business
Enterprise (WBE),
Small Business
Contracting
Certify that it will comply with 2 CFR 200.321 to take all necessary affirmative steps to assure that minority firms, women business enterprises, and labor surplus area firms are used when possible.

Further certify that it will submit to San Luis Obispo County at the time of project completion a report of the MBE and WBE status of all subcontractors to be paid with CDBG funds with contracts of $10,000 or greater, in a format that will be provided by the County.

Real Property Certify that it will comply with real property standards (24 CFR Part 570.505) applicable to any property within the owner’s control that is acquired or improved in whole or in part using CDBG funds in excess of $25,000.

Religious Activities Certify and agree that funds provided to the agency will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization.

Section 3 Certify and agree to ensure that opportunities for training and employment arising in connection with contracts or subcontracts for a housing rehabilitation (including reduction and abatement of leadbased paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to lowand very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing

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ADMIN
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rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs.

Section 504 Section 504 of the Rehabilitation Act of 1973: Certify that it has read and understands all its obligations under Section 504 to prohibit discrimination against persons with disabilities in the operation of programs receiving federal financial assistance.

Liability The County and cities require all grant recipients to maintain general liability, automobile and workman’s compensation insurance with limits of not less than $1 million (may vary by jurisdiction). If you are successful in obtaining a reward, you will be asked to provide documentation regarding your ability to provide the required coverage.

Environmental
Review
Prior to HUD’s release of grant conditions and/or funds for the CDBG-funded project, a review of the project’s potential impact on the environment must be conducted and approved by the County of San Luis Obispo prior to obligating or incurring project costs. The County must certify to HUD that it has complied with all applicable environmental procedures and requirements. Should project costs be obligated or incurred prior to the completion of the necessary environmental review, the project shall not benefit from the federal funds. The level of environmental review required depends on the nature of the project. 24 CFR Part 58 is available at
http://www.hud.gov/offices/pih/ih/codetalk/onap/docs/24cfr58.pdf.

Relocation Any project that involves the acquisition of property, construction, and/or rehabilitation and that is funded in whole or in part with federal CDBG funds is subject to federal relocation requirements. In general, any property owner, commercial business, or residential occupant who is displaced by a HUD-funded project may be eligible for relocation benefits. A project cannot be broken into separate “projects” in order to avoid the federal requirements connected with property acquisition and relocation. Any questions concerning the relocation regulations for a specific property acquisition project should be directed to the County Housing and Economic
Development staff before any action is taken on the project.

HMIS Reporting All homeless service providers applying for CDBG funds to assist, house, or shelter the homeless must identify and demonstrate the capacity to participate in the County of San Luis Obispo Homeless

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Management Information System (HMIS) to provide: personnel for data entry, user licensing, and hardware and software necessary for compatibility with HMIS. HMIS is an electronic data collection system that stores client level information about persons who access the homeless services system in a Continuum of Care and reports aggregate data for the County as per HUD’s Data Standards.

Affirmative Marketing Quarterly and annual reports shall be submitted by the project/program manager to the County for CDBG-funded public services and housing projects. Each report shall include the total number of project/program applicants and clients served with respect to race, ethnicity, gender, and disability status. Affirmative marketing efforts shall be taken to increase the participation of any under served groups.

I certify that the information in this application is true and accurate to the best of my knowledge and ability. __________________________________________________________________ ___________________ Signature DATE
__________________________________________________________________ ___________________ Printed or Typed Name Title

COUNTY OF SAN LUIS OBISPO

DEPARTMENT OF PLANNING & BUILDING
2023 CDBG
ADMIN
2023 CDBG ADMIN APPLICATION FORM
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This application is designed to provide the participating jurisdictions of the Urban County of San Luis Obispo to apply for Community Development Block Grant (CDBG) Program Administrative and Planning and Capacity Building funds as allowed in 24 CFR 570.206 and 24 CFR 570.205. Completed applications should provide the necessary budget and itemize expenditures as allowed uses in §570.205 and §570.206.

Email your grant applications to [email protected], by the application deadline of 3:00 P.M., October 14, 2022. Please label your email subject with the grant program name and the agency name (Example: 2022 CDBG – City Name).

Consult with applicable federal regulations and County staff if you intend to apply for Planning and Capacity Building funds. Separate applications must be provided by the applicant for Administrative and Planning and Capacity Building activities.

APPLICANT INFORMATION
(1-1) City Name
DUNS Number
Contact Person/Title
Phone/Fax Numbers
Email
Address
City, State, Zip

PROJECT SUMMARY
(2-1) Project/Program Title
Project/Program Address
Jurisdiction/Area Served
Targeted clientele
Project type (select one):

Administration (24 CFR 570.206) Planning and Capacity Building (24 CFR 570.205) https://www.govinfo.gov/content/pkg/CFR-2012-title24-vol3/xml/CFR-2012-title24-vol3-sec570-206.xml https://www.govinfo.gov/content/pkg/CFR-2011-title24-vol3/xml/CFR-2011-title24-vol3-sec570-205.xml (2-2) Brief Project Description:
(2-3) Total CDBG Funding Requested $
Total Cost to Complete Project $
Anticipated Start Date: July 1, 2023 Anticipated End Date: June 30, 2024

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AGENCY DETAILS, CAPACITY, AND EXPERIENCE
(3-1) Type of Agency 501 (c)(3) For Profit Gov’t/Public Faith-based Other:

Date of Incorporation Annual Operating Budget $
Number of Paid Staff Number of Volunteers
(3-2) Agency Mission Statement:
(3-3) Please describe your organization’s capacity to implement the proposed project/program. Who will be involved in the project/program? (In-house employees, contractors, other agency partners, etc.) (3-4) Briefly describe your agency’s record keeping system with relevance to the proposed project/program (For invoice payment and monitoring purposes please create a charge code specifically for the CDBG program, if one is not already in use):
(3-5) Briefly describe your agency’s auditing requirements, including those for the proposed project/program, and attach a copy of your most recent audit:
(3-6) Will the services offered by your organization increase or expand as a result of CDBG assistance? If YES, please answer the following two questions.

Yes No
What new programs or services will be provided?

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Describe how existing programs or services will be expanded and what percentage of an increase is expected?
(3-7) If your program serves homeless households, please describe how your program coordinates with other homeless service providers to connect homeless individuals and families to resources.

PROJECT DETAILS/DESCRIPTION
(4-1) Targeted Clientele: Individuals or households? Identify the projected target population your proposed activity will serve. (Include age, race, residency, handicap status, income level or other unit characteristics or subgroup information)
(4-2) Please describe the proposed project or program in detail. Make a case for why your project should be funded. Describe the need and the degree of urgency for the proposed project or program. What would the consequences be if the proposed project or program is not funded in the next year? Please attach a timeline of the project/program milestones.

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FINANCIAL INFORMATION
(5-1) Itemize all sources by name of funding and amount expected to be available for each category, if applicable (please include commitment letters if available):

CDBG Funds Requested* $
Other Federal Fund(s) $
State Source(s) $
Local Source(s) $
Applicants Matching Funds $
Other: $
(5-2) Identify all jurisdictions you are applying to for CDBG funds. Indicate the amount applied for at each jurisdiction, and the total amount requested.

City of Arroyo Grande $
City of Atascadero $
City of Morro Bay $
City of Paso Robles $
City of Pismo Beach $
City of San Luis Obispo $
County of San Luis Obispo $
TOTAL $
(5-3) Please list expenditures under CDBG by item or cost category and attach a timeline of the expenditures.
$
$
$
$
$
$
$
TOTAL $
*20% cap: Costs that are charged to administrative costs and to Planning and Capacity Building per §570.205 and §570.206 are subject to the statutory limitation that not more than 20% of grant funds plus program income may be used for planning and administration and consistent with the Cooperative Agreement with the County of San Luis Obispo.

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FEDERAL REQUIREMENTS ACKNOWLEDGEMENTS
Every person or Agency awarded a CDBG Contract or grant by San Luis Obispo County for the provision of services shall be required to certify to the County that they will comply with federal and local requirements including, but not limited to, those listed below. Please initial each certification listed to indicate you or your agency can and will comply with these requirements if funded.

Federal Requirements Initials
Americans with
Disabilities Act
Certify that this agency has reviewed its projects, programs, and services for compliance with all applicable regulations contained in Title II, Americans with Disabilities Act of 1990.

Audits Agrees to have an annual audit conducted in accordance with current San Luis Obispo County policy regarding audits and 2 CFR 200.501 audit requirements. Shall comply with current San Luis Obispo County policy concerning the purchase of equipment and shall maintain inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided through the grant.

Conflict of Interest (2 CFR 200.112, 200.318, and 570.611) Certify and agree that no covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activity, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. A “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the agency
Civil Rights Act Certify that it complies with and prohibits discrimination in accordance with Title VI of the Civil Rights Act of 1964.

Debarment Status of
Contractors
Certify that, to the best of its knowledge and belief, that it and its principals will not knowingly enter into any subcontract with a person who is, or organization that is, debarred, suspended, proposed for debarment, or declared ineligible from award of contracts by any Federal agency
(https://www.sam.gov/portal/public/SAM/)
Drug-Free Workplace Certify that it will provide a drug-free workplace.

Financial
Management
Accounting Standards: Agrees to comply with 2 CFR 200(E)(F) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

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Cost Principles: Shall administer its program in conformance with 2 CFR 200(E), “Cost Principles for Non-Profit Organizations,” or 2 CFR 225, “Cost Principles for State and Local Governments,” as applicable.

These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.

Procurement Policies: Certify and agree to procure all materials, property, or services in accordance with the requirements of 2 CFR 200.320-326.

Lobbying Activities Certify that no Federal appropriated funds have been paid or will be paid, by or on behalf of the agency, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement.

Minority Business
Enterprise (MBE),
Women’s Business
Enterprise (WBE),
Small Business
Contracting
Certify that it will comply with 2 CFR 200.321 to take all necessary affirmative steps to assure that minority firms, women business enterprises, and labor surplus area firms are used when possible.

Further certify that it will submit to San Luis Obispo County at the time of project completion a report of the MBE and WBE status of all subcontractors to be paid with CDBG funds with contracts of $10,000 or greater, in a format that will be provided by the County.

Real Property Certify that it will comply with real property standards (24 CFR Part 570.505) applicable to any property within the owner’s control that is acquired or improved in whole or in part using CDBG funds in excess of $25,000.

Religious Activities Certify and agree that funds provided to the agency will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization.

Section 3 Certify and agree to ensure that opportunities for training and employment arising in connection with contracts or subcontracts for a housing rehabilitation (including reduction and abatement of leadbased paint hazards), housing construction, or other public construction project are given to low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to lowand very low-income persons within the service area of the project or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs; and award contracts for work undertaken in connection with a housing

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rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public construction project to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area in which the CDBG-funded project is located; where feasible, priority should be given to business concerns that provide economic opportunities to low- and very low-income residents within the service area or the neighborhood in which the project is located, and to low- and very low-income participants in other HUD programs.

Section 504 Section 504 of the Rehabilitation Act of 1973: Certify that it has read and understands all its obligations under Section 504 to prohibit discrimination against persons with disabilities in the operation of programs receiving federal financial assistance.

Liability The County and cities require all grant recipients to maintain general liability, automobile and workman’s compensation insurance with limits of not less than $1 million (may vary by jurisdiction). If you are successful in obtaining a reward, you will be asked to provide documentation regarding your ability to provide the required coverage.

Environmental
Review
Prior to HUD’s release of grant conditions and/or funds for the CDBG-funded project, a review of the project’s potential impact on the environment must be conducted and approved by the County of San Luis Obispo prior to obligating or incurring project costs. The County must certify to HUD that it has complied with all applicable environmental procedures and requirements. Should project costs be obligated or incurred prior to the completion of the necessary environmental review, the project shall not benefit from the federal funds. The level of environmental review required depends on the nature of the project. 24 CFR Part 58 is available at
http://www.hud.gov/offices/pih/ih/codetalk/onap/docs/24cfr58.pdf.

Relocation Any project that involves the acquisition of property, construction, and/or rehabilitation and that is funded in whole or in part with federal CDBG funds is subject to federal relocation requirements. In general, any property owner, commercial business, or residential occupant who is displaced by a HUD-funded project may be eligible for relocation benefits. A project cannot be broken into separate “projects” in order to avoid the federal requirements connected with property acquisition and relocation. Any questions concerning the relocation regulations for a specific property acquisition project should be directed to the County Housing and Economic
Development staff before any action is taken on the project.

HMIS Reporting All homeless service providers applying for CDBG funds to assist, house, or shelter the homeless must identify and demonstrate the capacity to participate in the County of San Luis Obispo Homeless

2023 CDBG
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2023 CDBG APPLICATION FORM
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Management Information System (HMIS) to provide: personnel for data entry, user licensing, and hardware and software necessary for compatibility with HMIS. HMIS is an electronic data collection system that stores client level information about persons who access the homeless services system in a Continuum of Care and reports aggregate data for the County as per HUD’s Data Standards.

Affirmative Marketing Quarterly and annual reports shall be submitted by the project/program manager to the County for CDBG-funded public services and housing projects. Each report shall include the total number of project/program applicants and clients served with respect to race, ethnicity, gender, and disability status. Affirmative marketing efforts shall be taken to increase the participation of any under served groups.

I certify that the information in this application is true and accurate to the best of my knowledge and ability. __________________________________________________________________ ___________________ Signature DATE
__________________________________________________________________ ___________________ Printed or Typed Name Title

Item 6d
Department: Utilities
Cost Center: 6003
For Agenda of: 1/17/2023
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Mychal Boerman, Deputy Director – Water
Miguel Barcenas, Deputy Director – Engineering and Planning Shawna Scott, Special Projects Manager
SUBJECT: AUTHORIZE REQUEST FOR PROPOSALS FOR THE PREPARATION

OF THE WATER TREATMENT PLANT FACILITY INFRASTRUCTURE

RENEWAL STRATEGY PLAN

RECOMMENDATION

1. Approve a Request for Proposals for the Preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan (Project) and authorize staff to advertise the Project for proposals and bids; and

2. Authorize the City Manager to award the contract for the Project if the bid is within available project funding of $150,000.

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

The Project is consistent with the City’s adopted General Plan. Water and Wastewater Element (WWE) Goals A 2.1 and A 3.1 because developing a plan for the maintenance and optimization of the Water Treatment Plant (WTP) is necessary to ensure a long-term, reliable water supply and manage the City’s water resources to meet both current and future water demand associated with development envisioned by the General Plan.

DISCUSSION
Background
The City’s WTP treats water from three surface water reservoirs (Salinas, Whale Rock, and Nacimiento) to meet the demand from the City, and to satisfy contractual water delivery obligations to Cal Poly. The WTP was constructed in its current location in Stenner Canyon in 1963 and was originally designed to treat up to a rate of eight million gallons per day (mgd) equivalent to about 9,000 acre-feet annually.

Item 6d
It was upgraded to treat up to 11.5 mgd in 1977. In 1994, the WTP was upgraded to treat up to 16 mgd in addition to other upgrades. In 2008, a $13.4 million improvement project was completed, and additional capital improvement projects are in progress or have been completed such as the recent Energy Efficiency, TESLA Energy Storage, and Permanent Backup Generator projects.

The WTP does not currently have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure. As the last major WTP upgrade was completed in 2008, that equipment is now 13 years old and will need major maintenance and/or replacement in the next decade. Development and adoption of an Infrastructure Renewal Strategy will facilitate asset maintenance and replacement prioritization, process optimizations, compliance with future regulatory conditions, and more refined capital improvement planning and associated budget forecasts.

Project Description
The purpose of the Project is to develop a comprehensive Infrastructure Renewal Strategy for the City’s WTP (Project). The primary objectives of the Project are to:

1. Complete a plan including a detailed, phased implementation for WTP asset maintenance and replacement for the next 10 to 15 years that addresses the following:
a. Physical degradation of assets (equipment), including maintenance and replacement;
b. Compliance with existing and future known regulatory compliance thresholds, including disinfection by-products; c. Functional/operational and fiscal efficiencies, including automation improvements;
d. Process and equipment resiliency and redundancy;
e. Optimization of existing capacity of 16 mgd to facilitate flexible operating strategies;
f. Optimization of Source Water, with the ability to treat water from any source, at any given time, and maintain regulatory
compliance;
g. Enabling the WTP to run any volume and combination of flow rates of water at any given time;
h. Ongoing maintenance and predictive asset management; and i. Operational schedules and staffing requirements, including consideration of changes to volumes and types of work duties and skills required in coming years due to increased
instrumentation.

2. Forecast needed investment (funding) over the life of each asset to ensure adequate information is available to include in the water rate forecasts, budgets, and capital replacement plans.

Item 6d
Previous Council or Advisory Body Action
The 2021-23 Financial Plan, 2021-23 Financial Plan Supplement, and associated budget adopted by the City Council included the WTP “Facility Master Plan”, and identified $150,000 for fiscal year 2021-22 for preparation of the Plan.

Public Engagement
The proposed draft RFP is included in the City Council Agenda package, subject to public review and comment prior to consideration by the Council.

CONCURRENCE
The WTP Supervisor, Jason Meeks, is a key contributor to the development of the RFP and concurs with the scope of the Project. As the Project is focused within the existing WTP, concurrence from other City Departments is not necessary.

ENVIRONMENTAL REVIEW
The scope of the action is limited to release of the RFP and preparation of the WTP Facility Infrastructure Renewal Plan. Once complete, staff will return to the City Council for consideration of the California Environmental Quality Act (CEQA) determination and Plan approval.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-22
Funding Identified: Yes
Fiscal Analysis:

Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Water Fund CIP
1000542
$150,000 $150,000 $0 $0
Total $150,000 $150,000 $0 $0
The 2021-23 Financial Plan, 2021-23 Financial Plan Supplement, and associated budget adopted by the City Council includes $150,000 for the Project (Water Treatment Plant Major Facility Maintenance, Facility Master Plan; 1000542).

Item 6d

ALTERNATIVES
Deny or defer approval to advertise. The City Council may choose to deny or defer the approval to advertise this Project. Staff does not recommend this alternative as the Project is needed to evaluate the existing WTP and identify any recommendations for improvements and modifications, which would be incorporated into future capital improvement programs.

ATTACHMENTS
A - Draft Request for Proposal for Preparation of a Water Treatment Plant Facility Infrastructure Renewal Strategy Plan, Specification 1000542-02

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

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

DRAFT
Notice Requesting Proposals for the Water Treatment Plant Facility Infrastructure Renewal Strategy for the Public Utilities Department
The City of San Luis Obispo is requesting proposals for the Water Treatment Plant Facility Infrastructure Renewal Strategy pursuant to Specification No. 1000542-02.

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

A pre-proposal conference will be held at the following location, date, and time to answer any questions that the prospective proposers may have regarding the City's request for proposals:
[Location]
[Address], San Luis Obispo
[Date][Time]
Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. All questions shall be submitted on or before [Date] and [Time] PM. Responses to received questions will be posted on BidSync by [Date] and [Time] PM.

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

TABLE OF CONTENTS
SECTION A. INTRODUCTION.......................................................................................................................... 1 SECTION B. SCOPE OF WORK ........................................................................................................................ 4 SECTION C. PROJECT SCHEDULE ................................................................................................................... 8 SECTION D. PROJECT BUDGET....................................................................................................................... 8 SECTION E. SUBMITTAL REQUIREMENTS...................................................................................................... 8 SECTION F. ADDITIONAL SERVICES ............................................................................................................... 9 SECTION G. SELECTION PROCESS.................................................................................................................. 9 SECTION H. GENERAL TERMS AND CONDITIONS....................................................................................... 10 PROPOSAL REQUIREMENTS ....................................................................................................................... 10 CONTRACT AWARD AND EXECUTION........................................................................................................ 11 CONTRACT PERFORMANCE........................................................................................................................ 11 SECTION I. INSURANCE REQUIREMENTS .................................................................................................... 18 SECTION J. PROPOSAL SUBMITTAL FORM - SAMPLE .................................................................................. 21 EXHIBIT A : FORM OF AGREEMENT............................................................................................................. 25

-1-
SECTION A. INTRODUCTION
The City of San Luis Obispo (City) wishes to obtain the services of a professional firm (Consultant) for the Water Treatment Plant Facility Infrastructure Renewal Strategy (Project).

Purpose
Develop a comprehensive Infrastructure Renewal Strategy for the City’s Stenner Canyon Water Treatment Plant (WTP) beginning in 2022-23.

Primary Objectives
The primary objectives of the WTP Infrastructure Renewal strategy are to:

1. Complete a plan including a detailed, phased implementation for WTP asset maintenance and replacement for the next 10 to 15 years that addresses the following:
a. Physical degradation of assets (equipment), including maintenance and replacement; b. Compliance with existing and future known regulatory compliance thresholds, including disinfection byproducts (DBPs);
c. Functional/operational and fiscal efficiencies, including automation improvements; d. Process and equipment resiliency and redundancy;
e. Optimization of existing capacity of 16 mgd to facilitate flexible operating strategies; f. Optimization of Source Water, with the ability to treat water from any source, at any given time, and maintain regulatory compliance;
g. Enabling the WTP to run any volume and combination of flow rates of water at any given time;
h. Ongoing maintenance and predictive asset management; and i. Operational schedules and staffing requirements, including consideration of changes to volumes and types of work duties and skills required in coming years due to increased instrumentation.

2. Forecast needed investment (funding) over the life of each asset to ensure adequate information is available to include in the water rate forecasts, budgets, and capital replacement plans.

Background
The City’s WTP treats water from three surface water reservoirs (Salinas, Whale Rock, and Nacimiento) to meet the demand from the City, and to satisfy contractual water delivery obligations to Cal Poly. The WTP was constructed in its current location in Stenner Canyon in 1963. The WTP was originally designed to treat up to a rate of eight million gallons per day (mgd) equivalent to about 9,000 acre-feet annually. It was upgraded to treat up to a rate of 11.5 mgd in 1977, then upgraded to treat up to a rate of 16 mgd in 1994. The 1994 upgrade also included the following components:

1. Installed equipment (ozone generators and ozone contact basin) to provide an ozone-based process in place of traditional chlorine-based process to meet present and future water quality regulations.

2. Provided a two-story, 7,000 square foot building to house the ozone generators, new chemical feed system, control room and additional office space.

3. Replaced the initial flash mixing facilities with a larger, two-stage facility.

4. Replaced the flocculation equipment in the existing basin.

5. Replaced filter media and repair drains and outflow pipe.

6. Added tank and pumps to reduce time between backwashing cycles.

-2-

7. Modified equipment and flow path from recycling filter backwash water.

8. Used liquid sodium hypochlorite rather than chlorine gas for residual disinfection to improve safety on-site and water quality.

9. Provided standby metering pumps for each of several chemical feed systems to improve reliability.

10. Upgraded electrical systems, replacing 208-volt service with 120- and 480-volt services improving safety and reliability.

11. Provided new controls for new and existing equipment to improve process control.

12. Remodeled the existing laboratory and office to improve ability to monitor WTP performance.

In 2008, a $13.4 million improvement project was completed at the WTP. The major components of the project included:

1. Demolition of existing 4-mg clearwell

2. Demolition of existing transfer pump station

3. Construction of one 3-million gallon (mg) clearwell and one 2 mg clearwell

4. Construction of new transfer pump station

5. Installation of new ballasted sedimentation process (Actiflo), pretreatment building, and equipment

6. Extension of the Nacimiento raw water pipeline on the WTP site

7. Seismic upgrade of existing washwater tank

8. Installation of new residual thickener package treatment plant Since the completion of the last upgrade in 2008, the following capital projects have been completed at the WTP:

1. Nacimiento Water Project (2010, in partnership with SLO County)

2. Ozone Building Roof Repair project (2010)

3. Filter Control and Chemical Building Roof Repair (2011)

4. Wash Water 2 Tank Maintenance (2019)

5. Disinfection Byproduct (TTHM) Reduction & Pipe Gallery Improvement project (2020)

6. Energy Efficiency project (SST) including ozone replacement, SCADA upgrade, plant service water system upgrade, and installation of variable frequency drives at the transfer pump station (under construction in 2022)

7. TESLA Energy Storage System project (2022)

8. WTP Permanent Backup Generator project and transformer replacement (construction beginning 2023 with completion planned in 2024, CalOES grant funded)

-3-
In 2020-21, the WTP was operational approximately 17 hours per day. In 2020, average daily production was 4.69 mgd and peak daily production was 8.06 MG on August 10, 2020. In 2021, average daily production was 4.71 MGD and peak daily production was 8.90 million gallons on May 26, 2021.

The City’s 2021-23 Financial Plan and 2021-23 Financial Plan Supplement identify the following capital projects and
maintenance items at the WTP during the next five years (see table on following page):
2021-23 Financial Plan WTP Capital Improvement and Maintenance Projects1 CIP and Maintenance Project Estimated Cost
Aluminum Bulk Tank #1 Replacement $50,000 in 2021-22
Transfer Pump Station CLA‐VAL Re‐build $25,000 in 2021-22 WTP Roof Repair $80,000 in 2021-22
Wash Water Tank #1 Maintenance $40,000 in 2021-22 and $325,000 in 2022-23 Asset Management (Cityworks Integration) $45,000 in 2021-22 and $90,000 in 2022-23 Actiflo Train #2 Mixer Bearing/Gear $245,000 in 2022-23 and $75,000 in 2024-25 Lab TOC Analyzer Replacement $30,000 in 2022-23
Package Thickener $25,000 in 2022-23
Actiflo Poly Blend Units $25,000 in 2025-26
Ozone System Maintenance $125,000 in 2021-22 and $40,000 in 2022-23 Air Compressor and Dryer Maintenance $36,000 in 2021-22 and $36,000 in 2022-23 Chemical System Maintenance $33,000 in 2021-22 and $33,000 in 2022-23 1 Projects and costs updated per 2022-2023 Financial Supplemental Budget The WTP does not have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure. As the last WTP upgrade was completed in 2008, that equipment is now 13 years old and will need major maintenance and/or replacement in the next decade.

Water Treatment Plant Monthly
Average Daily Production (in mgd)
Month 2020 2021 2022
January 3.85 4.09 4.10
February 4.63 4.11 4.81
March 3.77 4.26 4.76
April 3.40 4.95 5.15
May 4.80 5.33 5.19
June 5.15 5.32 5.31
July 5.14 4.15 5.20
August 5.34 5.18 5.22
September 5.69 5.47 5.19
October 5.76 5.14 5.20
November 4.68 4.67 --
December 4.01 3.81 --

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SECTION B. SCOPE OF WORK
The City is seeking proposals from firms for the following as summarized below and outlined in the identified Tasks 1 through 7:

1. Project Management

2. Baseline Inventory and Data

3. Process/Asset Condition Assessment

4. Prioritization Methodology, Needs and Alternatives Analysis

5. Water Treatment Plant Infrastructure Renewal Strategy

6. Optional Additive Task: Review of Hydrogeneration Opportunities and Constraints

7. Optional Additive Task: Review of Stranded Asset Reuse Opportunities and Constraints Interested consultants are encouraged to develop a scope of work that addresses the City's needs and provides value and innovation. Optional tasks recommended by the consulting firm to enhance the work product should also be included in the proposal and shall be clearly identified as optional items with a separate cost line. Fully describe any exceptions to the anticipated scope as outlined in the RFP. Identify information needs or work that the consultant expects to be completed by City staff. If there are no expectations of City staff effort listed for a task, the City will expect the task to be completed without any assistance from City staff. The consulting firm selected for this project will be required to provide the necessary equipment, materials, and labor to complete the following services. Consultant's proposal shall clearly state the assumptions used to develop the scope of work, schedule, and budget requirement.

Task 1: Project Management
This task includes all project monitoring and administration, attendance at progress meetings with City staff, and project quality assurance/quality control (QA/QC) activities. The Consultant shall provide the services of seniorlevel staff persons with applicable experience to conduct technical reviews of project deliverables prior to submittal to the City. Any other formal quality assurance programs proposed to be used by the Consultant should be included as part of the scope of work and described in the proposal.

The Consultant’s responsibilities include preparation and provision of a workplan for communications, meetings, and progress reporting to ensure the Project is kept on schedule and within budget. The Consultant will coordinate with the City’s Project Manager on activities including scheduling meetings, tracking, and reporting on work in progress. The Consultant will prepare meeting notes and distribute them to the City and Consultant team. The Consultant will also prepare a schedule of items to be submitted by the City and Consultant and a log of decisions to be made and action items.

Regular contact with City staff shall be maintained to incorporate decisions and suggestions regarding the direction of the Project. Weekly status reports shall also be emailed to the City. These status reports shall be supplemented with regular telephone calls to the City as required to discuss the status of ongoing work efforts and outstanding issues. Invoices shall include a detailed summary of tasks completed during the period and include any amended changes in scope and/or fee.

During the Project, the Consultant will attend progress/coordination meetings with City staff to discuss issues related to the Project and to update the City regarding progress. Anticipated meetings are as follows:
 Project kick-off meeting at the City WTP
 Meeting(s) to review baseline inventory and data
 Meeting(s) to discuss technical memorandums
 Meeting(s) to discuss Draft and Final WTP Infrastructure Renewal Strategy

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 Meeting(s) to discuss Draft and Final California Environmental Quality Act (CEQA) document  Meeting(s) prior to City Council hearing
 Meeting at City Council (in-person) for approval of the WTP Infrastructure Renewal Strategy The Consultant shall support City Staff at public meetings, including assistance with presentations and responding to questions from the public and City Council.

Task 1 Deliverables:

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

Task 2: Baseline Inventory and Data
The Consultant shall become familiar with the WTP including past, current, and planned capital improvement projects, and existing infrastructure planning documents. The Consultant will collect information and visit City facilities to understand City processes and management needs. The Consultant shall review the existing WTP asset inventory, consult with Staff, and conduct a high-level audit to determine if there are any assets that are not currently identified.

It will be critical for the Consultant to conduct interviews with key City staff to confirm its understanding of the City’s WTP, existing operational issues and opportunities, and primary objectives of the WTP Infrastructure Renewal Strategy. Key Staff interviews will include:
 Utilities Deputy Director, Water
 Utilities Deputy Director, Engineering and Planning
 Water Treatment Plant Supervisor
 Water Treatment Plant Chief Maintenance Mechanic
 Water Treatment Plant Chief Operator
 Water Treatment Plant Operators
 Information Technology Control Systems Administrator
This task also includes Consultant review of provided documents and data, and identification of any additional information needed to complete the baseline inventory, audit, and associated data analysis to inform the WTP Infrastructure Renewal Strategy. The Consultant shall compile and analyze source water quality, treatment data, projected daily water demand.

Task 2 Deliverables:

Prepare the agendas and minutes for the Staff interviews.

Request for Information: Review documents and data provided by the City and submit a written request for additional information.

Technical Memorandum: Draft and final Technical Memorandum summarizing the City’s available data and identifying any key data gaps.

Technical Memorandum: Draft and final Technical Memorandum consisting of compilation and analysis of source water quality, treatment data, and projected daily water demand (including treatment capacity for City and Cal Poly).

Deliverables shall be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

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Task 3: Process/Asset Condition Assessment
The Consultant will conduct an audit on the existing WTP facility, including a process and asset condition assessment. This assessment will include a risk analysis based on Staff interviews and asset inspection and testing..

The Consultant will update the baseline asset inventory, including asset age and estimate of remaining useful life, and complete a probability of failure and consequence of failure analysis in collaboration with City Staff. The assessment shall include a review of the future capital projects program and associated budgetary estimates, and identify any recommendations for cost adjustments. The assessment shall also include a review and summary existing and likely future regulatory and permit requirements, and identify emerging concerns that will inform the WTP Infrastructure Renewal Strategy.

Task 3 Deliverables:

Technical Memorandums: Draft and Final Process/Asset Condition Assessment Technical Memorandums addressing each discipline, including Electrical, Mechanical, Civil, Corrosion, Process Engineering, and Architectural.

Technical Memorandum: Draft and Final Technical Memorandum summarizing key WTP issues and a Regulatory/Code Summary.

Deliverables shall be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

Task 4: Prioritization Methodology, and Needs and Alternatives Analysis In consultation with City Staff, the consultant shall develop a phased prioritization methodology that addresses Code and regulatory requirements, deferred maintenance, redundancy, pre-emptive asset repair and replacement, and process efficiency improvements. The Consultant will provide a Needs and Alternatives Analysis that: defines WTP facility needs; forecasts asset maintenance and replacement budgetary needs; provides planning-level project descriptions, probable budgetary costs, and return on investment for proposed alternatives; and identifies recommended prioritization of projects.

Task 4 Deliverables:

Technical Memorandum: Draft and Final Technical Memorandum identifying the prioritization methodology.

Technical Memorandum: Draft and Final Needs and Alternatives Analysis.

Deliverables shall be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

Task 5: Water Treatment Plant Infrastructure Renewal Strategy The Consultant shall develop the phased and prioritized infrastructure renewal strategy including to address existing deficiencies (years 1-5), as well as a medium-term (years 6-10) and long-term capital improvement forecast (beyond 10 years). The approach shall address current and future Code and regulations. The Consultant shall provide present cost for recommended projects, including operation and maintenance, as well as 5-year and 10-year predicted costs. The Consultant shall identify recommended operational/process improvements related to preventative maintenance data input, monitoring, and tracking.

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Task 5 Deliverables:

Draft and Final Infrastructure Renewal Strategy, with prioritized capital program (assume 3 administrative drafts, one Public Final, one adopted Final).

Deliverables shall be provided as in editable Microsoft Word, PDF files with searchable text, all digital files, and graphics.

Optional Additive Tasks
The Consultant may include one or both the following additive tasks to the proposal submittal, if qualifications, capacity, and capability to complete this task can be demonstrated. Provision of this additive scope item is not a requirement of the response to the RFP.

Optional Additive Task 6: Review of Hydrogeneration Opportunities and Constraints During the City’s WTP Energy Efficiency project (approved in 2019), a “resiliency phase” was described to the City Council where the Utilities Department would further explore opportunities for hydroelectric generation facility and on-site solar generation that were not funded as part of the WTP Energy Efficiency project. This task would include review of potential hydrogeneration opportunities, constraints, preliminary cost estimates, and Return on Investment (ROI) analysis.

Optional Additive Task 6 Deliverables:

Technical Memorandum: Draft and Final Hydrogeneration Opportunities and Constraints Memorandum.

Deliverables shall be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

Optional Additive Task 7: Review of Stranded Asset Reuse Opportunities and Constraints This task would include review of potential opportunities, constraints, and preliminary costs associated with the reuse of the Reservoir 2 storage tank, the clarifier at Reservoir 2, and the clarifier at the Water Treatment Plant as a raw water forebay.

Task 7 Deliverables:

Technical Memorandum: Draft and Final Stranded Asset Reuse Opportunities and Constraints Memorandum.

Deliverables shall be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

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SECTION C. PROJECT SCHEDULE
Provide a detailed schedule for the completion of each task described above. Schedule start up shall correspond to the proposal review and award schedule identified below.

Proposal Review and Award Schedule
Task Date
Issue RFP February 2023
Pre-Proposal Meeting February 2023
Response to RFP Due March 2023
Complete Proposal Evaluations April 2023
Conduct Finalist Interviews (tentative) and Select Consultant April 2023 Execute Contract/Agreement April/May 2023
Project Kick-off Meeting May 2023
SECTION D. PROJECT BUDGET
In addition to the RFP response, provide a Cost Proposal listing the cost for each task in a separate PDF file submitted on Bidsync (or five copies in a sealed envelope if unable to submit via Bidsync). Provide the following:
 Itemized breakdown of all services to be provided and the estimated number of hours to complete each task and sub-task.
 Estimated hours for your staff in performing each phase and task of the work, including sub-consultants, so we can clearly see who will be doing what work, and how much time it will take.  The information shall be provided in a spreadsheet format to enable City staff to determine the key project team members involvement proposed for each task and the number of management, technical, drafting, and support personnel hours.
 The name of team member shall be included in the column headings of the spreadsheet.  Identify all costs to be billed to the Project, including cost per hour for each project team member and the total cost envisioned for each task, project expenses, and sub-consultant costs.  Include any proposed mark-up for sub-consultant fees.  Include a copy of the proposed rate schedule(s) to be used for the duration of the Project including any adjustments that are proposed to occur during the life of the Project. Any proposed adjustments shall be factored into the total proposed project cost.

SECTION E. SUBMITTAL REQUIREMENTS

1. Letter of Interest (Five page maximum). Please include in the submittal a letter introducing the Consultant and expressing the Consultant's interest in being considered for the Project. The letter of interest should also include all 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 complete the identified Scope of Work.
c. Indicate that the Consultant has the minimum necessary professional qualifications for successfully performing the work required by the City, including facility/capital improvement program planning project experience for at least five surface water treatment plants of equal or greater size and complexity as the City of San Luis Obispo WTP.

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d. Indicate the intention of the Consultant to adhere to the provisions described in the RFP. e. If selected, the Consultant will be expected to sign a service provider agreement or contract with the City.
f. Identify the contact person responsible for the submittal, specifying the name, title, and contact information.
g. 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.

2. Relevant Experience of Key Personnel and the Firm (Ten page maximum) a. 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. b. Key Personnel Experience. The submittal must identify the key personnel and any subconsultants that would be assigned if awarded a contract, detailing their qualifications, areas of expertise, certifications, education, training, a summary of their past experience performing similar services for the City of San Luis Obispo and/or other jurisdictions, and a resume of each key personnel and sub-consultant. Clearly describe each individual's specific role in the representative Project, and proposed specific role in the preparation of the Project. c. Firm and Sub-consultant Experience. The submittal must describe the Firm's and any Subconsultant's pertinent project experience, including a list of performed relevant projects, past performance, and examples of similar work for the City or other jurisdictions. Identified qualifications should include the Consultant's experience preparing facility/capital improvement program planning project experience for local agencies, specific to surface water treatment facilities of equal or greater size and complexity as the City of San Luis Obispo WTP.

3. Work Program and Schedule.
a. Provide a narrative of the approach and processes that will be employed to accomplish the identified Scope of Work.
b. Provide a detailed schedule by task for completing the identified Scope of Work.

4. Client References. Consultants must provide a minimum of three client references. Include a brief description of the Project, provided professional services, and reference contact name, email, and phone number.

5. Proposal Length and Copies. Proposal submittal shall not exceed 60 pages, including attachments and supplemental materials and excluding the proposed cost estimate. The preferred method for submission is electronic via BidSync. However, if you wish to submit a paper copy, please submit five copies in a sealed envelope or box to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, California, 93401.

SECTION F. ADDITIONAL SERVICES
If there are related services not otherwise identified in the City' s RFP, the Consultant may offer those to the City.

Submittals are not required to address any additional services in order to be considered acceptable. However, the final selection of the successful Consultant may be based on the desirability of the additional services offered.

SECTION G. SELECTION PROCESS
Submittals received by the deadline will be reviewed by a selection panel comprised of City staff who have relevant knowledge and experience. The panel will rank the proposals based upon the proposal materials submitted according to the following criteria:

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

2. Relevant Qualifications and Experience. Background and experience of the specific individuals managing and assigned to the Project. Demonstrated competence and professional qualifications necessary for successfully performing the work required by the City. Demonstrated ability, based on Consultant experience and specific experience of key personnel, to provide professional services identified in the RFP.

Recent team experience in successfully performing similar services.

3. Proposed Approach in Completing the Work. Demonstrated understanding of the work required by the City. Creativity of the proposed approach in completing the work. Demonstrated added value to the City if selected to implement the Scope of Work.

4. Responsiveness to the RFP. Presentation, completeness, responsiveness, quality, and clarity of information provided. Writing ability and demonstrated quality assurance and control.

5. Client References. A minimum of three client references shall be provided.

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

If a firm cannot be selected based solely on the proposals submitted, firms submitting the most highly rated RFPs may be invited for interviews. The proposed project manager must be present at the interview; up to four others may attend at the discretion of the firm. The final scope and contract amount will be negotiated with the selected consultant. In the event that negotiations are not successful, staff reserves the right to enter into negotiations with other ranked firms.

SECTION H. GENERAL TERMS AND CONDITIONS

PROPOSAL REQUIREMENTS

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

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

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

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

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

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

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

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

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

CONTRACT AWARD AND EXECUTION

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

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

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

CONTRACT PERFORMANCE

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

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SPECIAL TERMS AND CONDITIONS

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

2. Sales Tax Reimbursement.

For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible, responsive proposer.

3. Labor Actions.

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

4. Failure to Accept Contract.

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

5. Contract Term.

The supplies or services identified in this specification will be used by the City for preparation of the Strategic Asset Management Plan (SAMP). The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal.

6. Contract Extension.

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

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

8. Contractor Invoices.

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

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

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

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

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

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

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

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

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PROPOSAL CONTENT

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

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

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

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

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

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Proposal Length
a. Proposal length should only be as long as required to be responsive to the RFP, including attachments and supplemental materials. Qualification submittal shall not exceed 60 pages, including attachments and supplemental materials and excluding the proposed cost estimate.

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

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

3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award:
a. Issue RFP February 2023
b. Pre-Proposal Meeting February 2023
c. Receive proposals March 2023
d. Complete proposal evaluations April 2023
e. Conduct finalist interviews and finalize recommendation April 2023 f. Execute contract April/May 2023
g. Start work May 2023

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

City of San Luis Obispo
[LOCATION]
[ADDRESS], San Luis Obispo
[DATE] at [TIME]

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

6. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the

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property of the City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City.

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

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

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

ALTERNATIVE PROPOSALS

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

10. Attendance at Meetings. Contractor shall attend as many "working" meetings with staff as necessary in performing work-scope tasks.

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

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

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

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

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

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SECTION I. INSURANCE REQUIREMENTS
Without limiting Consultant’s indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below, and in a form satisfactory to City.

General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with Work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

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

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

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

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

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

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

Duration of coverage. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Consultant, his agents, representatives, employees or subconsultants.

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

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.

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

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

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

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

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

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

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

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

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

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

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

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

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

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SECTION J. PROPOSAL SUBMITTAL FORM - SAMPLE
The undersigned declares that she or he has carefully examined Project No. [xxxx], which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full:

Basic Proposal Alternate Proposal
Task
Task
Task
Task
Task

TOTAL BASE PRICE
Sales tax @ 8.75% (add as applicable)
Other (attach supporting detail)
TOTAL $ $
Calendar days required to complete
work
Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.

Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date

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

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

Reference No. 1:

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

Reference No. 2:

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

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

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

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

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EXHIBIT A : FORM OF AGREEMENT

CITY OF SAN LUIS OBISPO

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

WITNESSETH:

WHEREAS, the City wants to prepare a Facility Infrastructure Renewal Strategy (Master Plan) for the Water Treatment Plant (the “Services”); and
WHEREAS, Consultant is qualified to perform this type of Services and has submitted a proposal to do so, which has been accepted by City; and
NOW, THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the Parties hereto agree as follows:

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

2. INCORPORATION BY REFERENCE.

The Notice Requesting Proposals for the Water Treatment Plant Facility Infrastructure Renewal Strategy for the Public Utilities Department and Consultant's proposal dated [date] are hereby incorporated in and made a part of this Agreement, attached as Exhibit A. The City’s insurance requirements are hereby incorporated in and made part of this Agreement, attached as Exhibit B.

To the extent that there are any conflicts between the Consultant’s fees and scope of work and the City’s terms and conditions as stated herein, the City’s terms and conditions shall prevail unless specifically agreed otherwise in writing signed by both Parties.

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

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

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

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

7. COMPLIANCE WITH LAW. The Consultant shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis

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Obispo ordinances, regulations and adopted codes, which in any manner affect those employed by Consultant or in any way affect the performance of the Services pursuant to this Agreement.

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

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

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

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

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

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

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

13. WORK SCHEDULED/TIME OF COMPLETION.

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City and Consultant agree that time is of the essence in this Agreement. City and Consultant further agree that Consultant's failure to perform on or at the times set forth in this Agreement will damage and injure City, but the extent of such damage and injury is difficult or speculative to ascertain. Consequently, City and Consultant agree that any failure to perform by Consultant at or within the times set forth herein shall result in liquidated damages for each and every day such performance is late or delayed. City and Consultant agree that such sum is reasonable and fair.

Furthermore, City and Consultant agree that this Agreement is subject to Government Code Section 53069.85 and that each party hereto is familiar with and understands the obligations of said Section of the Government Code.

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

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

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

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

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agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

17. OWNERSHIP OF DOCUMENTS.
a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of the Services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the Services under this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. Consultant hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by Consultant in the course of providing the Services under this Agreement.

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

In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the Consultant’s percentage of fault, the Parties agree to mediation with a neutral third-party to determine

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the Consultant’s proportionate percentage of fault for purposes of determining the amount of indemnity and defense cost reimbursement owed to the City. b. For all Other Liabilities
Notwithstanding the foregoing and without diminishing any rights of City under Section

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

19. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE. a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least thirty (30) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 14.

20. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines the Consultant is not faithfully abiding by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure to perform. This notice must give the Consultant a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency.
a. If the Consultant has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of the Agreement and the City may terminate the Agreement immediately by written notice to the Consultant to said effect (“Notice of Termination”). Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the Agreement except to comply with the obligations upon termination.
b. In said event, the Consultant shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Consultant as may be set forth in the Agreement payment schedule; compensation for any other work or services performed or provided by the Consultant shall be based solely

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on the City’s assessment of the value of the work-in-progress in completing the overall scope.
c. The City reserves the right to delay such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the not to exceed amount shown in this Agreement.

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

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

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

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

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

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

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

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

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to those set forth herein, unless such additional services are authorized by the City in advance and in writing.

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

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

To City: Public Utilities Department
City of San Luis Obispo
897 Morro, San Luis Obispo, California
Attention: Miguel Barcenas
To Consultant: Name
Mailing Address

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

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

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

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

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

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 17, 2023
TO: Mayor and Council
FROM: Michael Codron, Director of Community Development VIA: Derek Johnson, City Manager
SUBJECT: Item #6e - 2021-22 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER ASSEMBLY BILL 1600
Staff was asked by a Council Member to provide some background and context to an Agenda Correspondence. The concern expressed is that the City’s Development Impact Fee (DIF) structure, especially in relation to transportation, overburdens multi-family residential development.

There are two items of clarification that staff would like to provide. First, the item tonight is a required annual report and is not on the agenda for the purpose of evaluating the program or adjusting any fees. Council is not expected to provide guidance to staff on changes to the program as part of this item. However, staff is planning to update the DIF program this calendar year as it has been five years since the current iteration of the program has been in place.

The update process will provide many opportunities for community outreach and engagement with the City Council. Outreach and engagement will be an important part of the update process to ensure that the staff’s recommendations are responsive to community concerns and consistent with policy guidance from the City Council.

Second, the concern expressed by SLO YIMBY is that the Transportation Impact Fees (TIF) for Multi-Family Residential development are higher than for single-family residential development. The fees are in fact lower for multi-family residential units - these fees are based on the “average cost per auto trip per dwelling unit” for each type of housing. The fee for an average sized single-family home is higher than the fee for average sized apartment by the same ratio as the difference between auto trip generation rates for each housing type. A full nexus study was prepared when this item was brought to the City Council on April 3, 2018.

It is also worthwhile to note that the City’s TIF program includes specific policy adjustments to incentivize smaller housing units of all types, up to a 50% reduction in the total fee. This “policy adjustment,” in effect, resulted in a $40 Million fee reduction below fees that otherwise would have been legally supported based on the nexus study. The City offered these lower fees as an incentive to developers of all types of housing to build smaller housing units.

Development Impact Fee Annual Report Agenda Correspondence Page 2 Should the City Council have any further questions on this issue, staff will be available to address at the meeting.

Item 6e
Department: Finance
Cost Center: 2001
For Agenda of: 1/17/2022
Placement: Consent
Estimated Time: N/A
FROM: Emily Jackson, Finance Director
Prepared By: Brigitte Elke, Finance Director (former)
SUBJECT: FY 2021-22 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES UNDER ASSEMBLY BILL 1600

RECOMMENDATION

1. Review and approve the FY 2021-22 Report on Development Impact Fees in compliance with Assembly Bill 1600 (AB 1600) annual disclosure requirements; and

2. Adopt a Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2021-22 Annual Report on Development Impact Fees reaffirming the necessity for Development Impact Fees and make findings related to Impact Fee Balances."

POLICY CONTEXT
Assembly Bill 1600 requires agencies that have an adopted impact fee program to annually disclose the collection and use of the funds for the program and make appropriate findings as to the necessity of the impact fees and related project allocations.

The City’s Municipal Code under Chapter 4.56 defines the City’s Development Impact Fees and its purpose.

DISCUSSION
Background
The City of San Luis Obispo (City) has an adopted development impact fee program that is subject to AB 1600 (1987, the Mitigation Fee Act, Gov. Code § 66000 et seq.) and its annual disclosure and reporting requirements. This report (Attachment B) is developed to satisfy the requirements by describing each type of fee, the fees collected, the fee disbursements as well as the amount of interest apportioned to each fee balance during the 2021-22 fiscal year. In addition, an accompanying analysis has been prepared that reflects, for each fee type, the aging of the balance held by the City. The purpose of this item is to report on the balances included in each fund; the funding has largely been programmed for future use, including projects in the City’s Capital Improvement Plan or other initiatives.

Item 6e
The report was posted on the City’s website on December 21, 2022, and the notice of availability posted in the kiosk outside of City Hall and the Finance entrance. An email was sent to subscribers of the City's online updates. The notice of availability was also published in the New Times on January 5, 2023, in accordance with Government Code § 66006 (b) (2).

The individual fund schedules provide a breakdown of the fee balances on hand as of June 30, 2022, based on the City's audited financial reports. AB 1600 requires that the annual report shall include the following information:

1. A brief description of the type of fee in the account or fund.

2. The amount of the fee.

3. The beginning and ending balance of the account or fund.

4. The amount of the fees collected, and the interest earned.

5. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.

6. An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of § 66001, and the public improvement remains incomplete.

7. A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.

8. The amount of refunds made pursuant to subdivision (e) of § 66001 and any allocations pursuant to subdivision (f) of § 66001.

The following is a brief description of the purpose of the City’s impact and Quimby fees and the projects funded in the fiscal year.

Parkland ln-Lieu Quimby Fee
This in-lieu fee was established per the AB 1191 (Nazarian, 2015) Act, also known as the Quimby Act; it authorizes the City to require residential subdivisions to dedicate land for parks or pay fees in-lieu of the dedication. Even though this is not an impact fee as defined by the Mitigation Fee Act, the fund is included in the report for transparency and public engagement.

Open Space Protection Impact Fee
This impact fee was established to address the need to acquire new open space lands commensurate with similar land lost to development projects.

Item 6e
Citywide Parkland Development Impact Fee
This impact fee was established for the acquisition of land to construct City parks intended for access and use by the entire community. Starting in FY 2020-21, a reorganization of the impact fees chart of accounts was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of citywide parkland development impact fees from Quimby in-lieu fees.

Citywide Park Improvement Impact Fee
This impact fee was established for the improvement of new and existing City parks intended for access and use by the entire community of San Luis Obispo. This fund was also created with the reorganization of the chart of accounts to account separately for Citywide Park Improvement Impact Fees.

Orcutt Area Park Impact Fee
This impact fee was established for the acquisition and improvement of City parks and existing park facilities intended for access and use by the entire community but more specifically by the residents in the Orcutt Area Specific Plan boundaries.

Margarita Area Park Impact Fee
This impact fee was established for the acquisition and improvement of City parks and existing park facilities intended for access and use by the entire community but more specifically by residents in the Margarita Area Specific Plan boundaries.

There is a total of $958,944 that has been held for more than five years in this specific fund. Therefore, the City Council needs to make the finding regarding the park planned to be constructed in the Margarita area that includes different funding sources such as impact fees and grants. Currently, the project is on hold since the land zoned for park space is privately owned and the current owners are not interested in selling. The City still anticipates using the funds collected for the MASP park at the time the landowner decides to sell or develop.

Citywide Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities and travel lanes within the City. The following were the active projects funded by Transportation Impact fees in FY 2021-22:

Item 6e
Airport Area Transportation Impact Fee
This impact fee was established for the expansion of transportation facilities in and around the airport area. On April 3, 2018, the City Council adopted a resolution in compliance with AB 1600 that consolidated this fee program into the Citywide Transportation Impact Fee Program. However, the fund is still active to properly account for the fees that were previously collected to be spent on transportation projects in the airport area. Currently, $606,761 has been held for more than five years; therefore, City Council needs to make findings regarding the funds held as part of the planned Prado Road Interchange which will mitigate transportation impacts in the airport area. All funds are anticipated to be collected and construction is programmed to initiate in summer 2025.

Los Osos Valley Road Transportation Impact Fee
This add-on impact fee was established for the expansion of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, the fund recorded a liability for the reimbursement owed for an amount equal to the impact fees collected for the year. The City has an existing reimbursement agreement with Costco Wholesale Corporation for improvements already constructed at the LOVR interchange.

San Luis Ranch Transportation Impact Fee
The San Luis Ranch transportation impact fee was established for the expansion of transportation facilities in and around the San Luis Ranch area, the fee is distinguished from the Citywide TIF following the development agreement between the City and the San Luis Ranch developer.

Orcutt Area Transportation Impact Fee
The Orcutt area transportation impact fee was established for the expansion of transportation facilities in and around the Orcutt area.

1. Orcutt/Tank Roundabout
Construction

2. Active Transportation Plan
Implementation

3. Transportation Monitoring &
Modeling Update

4. Traffic Model Update

5. Prado Road Bridge Widening

6. Railroad Safety Trail Taft to
Pepper - 2018

7. Broad Street Corridor Access
Improvements

8. LOVR Interchange Landscape

9. Higuera Street Widening Bridge to
Elks

10.Prado Road Interchange

11.Bicycle Projects

Item 6e
Wastewater Impact Fee
This impact fee was established for the expansion and improvement of facilities used for wastewater collection and treatment. The fees were used to fund project expenses or cover outstanding debt for the following projects:

1. Calle Joaquin Lift Station

2. Water Resource Recovery Facility (WRRF) Upgrade

3. Tank Farm Lift Station
This fund is a pass-through to the Sewer Fund to separately account for wastewater impact fees collected and provide transparency. Debt service for the projects is paid directly from the Sewer Fund (602).

Water Impact Fee
This impact fee was established for the expansion and improvement of facilities used for water supply, water treatment, and water distribution. The fees were used for debt service for the following projects:

1. Nacimiento Pipeline

2. 2018/2006 Water Treatment Plant Refunding Debt Service

3. 2012 Water Refunding Debt Service
Fees collected and retained were used for debt service to pay for new development's fair share for upgrades to the water treatment plant, the recycled water system, as well as the pipeline serving the City from Lake Nacimiento.

This fund is a pass-through to the Water Fund to separately account for water impact fees collected and provide transparency. Debt service for the projects is paid directly from the Water Fund (601).

Fire & Police Impact Fees
These impact fees were established as part of the 2018 nexus study to help cover the cost of the City's public safety services and to renovate and maintain public safety related assets.

Affordable Housing Inclusionary Fee
This inclusionary fee was established to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing, at the discretion of the Council. This is not an impact fee as defined by AB 1600 and the fund is included in this report for transparency and public engagement.

Public Engagement
This report was made public on December 21, 2022, so that interested parties can review the annual fee collection and applicable uses and disbursements information.

Item 6e

CONCURRENCE
The Public Works, Community Development, and Utilities Departments concur with the information contained within 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: Yes Budget Year: 2021-22
Funding Identified: Yes
Fiscal Analysis:

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

Total $ $ $ $
The action before the City Council does not have a fiscal impact. AB 1600 reports on the City's impact fee collection, the use of the fees, and the status of projects for which the fee has been collected. Therefore, the report summarizes the fiscal impact of the fees in advancing important infrastructure projects for the City.

ALTERNATIVES
Council could choose not to make the findings called for in this report. This is not recommended as it would require reimbursement of certain impact fees collected under the program and present a monetary shortfall for many of the development related improvements.

ATTACHMENTS
A - Draft Resolution adopting the 2021-22 Annual Report on Development Impact Fees B - AB 1600 Development Impact Fee Annual Report
C - Exhibit A- Fee Amounts
D - Exhibit B- Impact Fees Distributed

R _____
RESOLUTION NO. ______ (2023 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2021-22 ANNUAL REPORT

ON DEVELOPMENT IMPACT FEES REAFFIRMING THE NECESSITY

FOR DEVELOPMENT IMPACT FEES AND MAKE FINDINGS RELATED

TO IMPACT FEE BALANCES AND IN-LIEU FEES
WHEREAS, the City of San Luis Obispo (“City”) has an established Development Impact Fee program and collects applicable fees accordingly; and WHEREAS, the City is required to make certain findings every five years with respect to the unexpended fund balance of certain development impact fee funds pursuant to California Government Code section 66001; and WHEREAS, the documents reflecting the balance in each development impact fee fund or account, accrued interest in said fund or account and the amount of expenditure by public facility for the fiscal year have been made available for public review as required by California Government Code section 66006; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Recitals. All of the above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Acceptance. The 2021-22 Annual Report on Development Impact Fees is hereby accepted.

SECTION 3. Findings. The following findings are made as required under Government Code section 66001:

1. The purpose to which each Development Impact Fee is collected for has been identified.

2. There is a continued need for the improvements and that there is a reasonable relationship between the fee, the timing of the improvements, and the impacts for development for which the fees are collected.
i. Excess funding in the Margarita Area Park Impact Fee Fund continues to be held since the land zoned for the park space is privately owned and the current owners are not interested in selling.

The City still anticipates using the funds collected for the MASP park at the time the landowner decides to sell or develop the property. ii. Excess funding in the Airport Area Transportation Impact Fee Fund is held for the planned Prado Road Interchange which will mitigate transportation impacts in this area. Construction of the interchange is currently programmed to initiate in summer 2025.

Resolution No. _______ (2023 Series) Page 2
R ______

3. The sources and amounts of funding anticipated to complete the financing of capital projects have been identified and will be deposited into the appropriate account upon receipt or during the normal capital improvement program budget cycle.

4. A copy of the approved resolution shall be forwarded to the Finance Director for use in overseeing these monies.

SECTION 4. These findings are based, in part, on information provided in the City of San Luis Obispo’s 2021-23 Capital Improvement Plan.

Upon motion of _____________, seconded by ______________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of __________________ 2023. __________________________
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 FISCAL YEAR 2021-22
City of San Luis Obispo, California
AB 1600

DEVELOPMENT

IMPACT FEE

ANNUAL REPORT
2018

2 Table of Contents
Definition of Development Impact Fess……………………………………………………………………. 3 Annual Report……………………………………………………………………………………………………...... 3 Park and Open Space Funds……………………………………………………………………………………... 5 Transportation Funds……………………………………………………………………………………….……. 12 Water and Sewer Funds…………………………………………………………………………………………. 18 Public Safety and Affordable Housing Funds…………………………………………………………... 21

3 City of San Luis Obispo
AB 1600 Annual Report and Findings
The City of San Luis Obispo has an adopted Development Fee program, governed under AB 1600 which is otherwise known as the Mitigation Fee Act and is codified in Government Code §§ 66000 et seq. The power to exact development impact fees arises from the city's police power to protect public health, safety, and welfare. (Cal. Const., Art. XI, § 7.) The police power allows a city to act in the interest of its citizenry and to enact and enforce ordinances and regulations that are not in conflict with state law. Charter cities have the additional power to regulate by virtue of their plenary authority with respect to municipal affairs. (Cal. Const., Art. XI, § 5.) AB 1600 Mitigation Fee Act
AB 1600 applies to all local agencies in the state, including all general law and charter cities. (Gov. Code § 66000(c).) However, AB 1600 does not apply to every fee or exaction collected by a local agency. AB 1600 only applies when a local agency imposes a fee on an applicant in connection with the approval of a development project to defray all or a portion of the cost of public facilities related to the project. (Gov. Code § 66001.) "Public facilities" are defined to include public improvements, public services, and community amenities. (Gov. Code § 66000(d).)
Definition of Development Impact Fees
A development impact fee is a monetary exaction other than a tax or special assessment that is charged by a local governmental agency to an applicant in connection with the approval of a development project to defray all or a portion of the cost of public facilities related to the development project. (Gov. Code § 66000(b).) A development impact fee is not a tax or special assessment; by its definition, a fee is voluntary and must be related to the cost of the service provided by the local agency. If a development impact fee does not relate to the impact created by development or exceeds the reasonable cost of providing the public service, then the fee may be declared a special tax and must then be subject to two-thirds voter approval. (Cal. Const., Art. XIII A, §

4.)
Annual Accounting for Fees
Funds collected for each capital facility or service shall be deposited in separate accounts and not commingled with any other funds for other impact fees. (Gov. Code § 66006(a).) While funds are accruing for individual capital facilities, the city must keep track of each fund and provide an annual report. (Gov. Code § 66006(b).) Annual Report
This report is submitted to satisfy the requirements of AB 1600 and identifies the amount of each development impact fee collected, the disbursements made from each fee type, and the amount of interest apportioned to each fee balance during the 2021-22 fiscal year. Accompanying the report is information specifically prepared

4 to reflect each fee type and the aging of the balance held by the City. Per AB1600, each fee collected to mitigate a specific impact must be spent within five years of collection. If the fee is held beyond this time frame due to specific circumstances or insufficient collection for the needed improvements, the City Council must make specific findings to continue holding the fees. Otherwise, the fees are subject to refund.

As required by law, the development impact fee report has been available for public inspection in the Finance Department, prior to the City Council’s public meeting. Notice was posted on the City Clerk’s bulletin board in front of City Hall on December 31, 2022.

The schedules referred to above provide a breakdown of the individual fee balances on hand as of June 30, 2022, based on unaudited information. The Mitigation Fee Act requires that this report include the following information:

1. The amount of each fee. (Exhibit A)

2. The amount of developer fees disbursed on each project for the year just ended. (Exhibit B)

3. The amount of developer fees collected for the year just ended. (Exhibit C)

4. The amount of interest earned by the developer fees for the year just ended.

5. Any other income received that is related to the projects, if applicable.

6. The beginning and ending fund balance for each development fee account.

7. The total cost of projects undertaken during the last year and the percentage of the project cost paid out of developer fees.

8. The identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.

9. The amount and purpose of all inter-fund transfers during the last year.

10. The following is a brief description of the purpose of the fee and the nature of projects funded in the current year.

5 AB 1600 Development Impact Fees Fund Details
Park Development Impact Fee, Quimby Fees and Open Space Funds

6 Parkland In-Lieu Quimby Fee - Fund 501
This parkland in-lieu fee was established per the AB 1191 Act, also known as the Quimby Act; it authorizes the City to require residential subdivisions to dedicate land for parks or pay fees instead of dedication. On the other hand, impact fees may be collected to pay for parkland (for projects not involving a subdivision), park improvements, community centers, recreation facilities, trails, open space, etc. Even though this is not an impact fee as defined by the AB 1600 Act, the fund is included in this report for transparency and public engagement.

As of June 30, 2022, the fund balance of 501 was $3,107,198. No funds have been held for more than five years, regardless any amount is not subject to findings or refund per the Quimby Act. Of this balance, $143,044 is in the form of loansreceivable for deferred payment of impact fees related to affordable housing developments.

Exhibit B includes the list of projects funded with the $340,395 expended from this specific fund in the last fiscal year.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ 457,508 $ 1,653,597 $ 1,249,959 $ 1,882,177 $ 117,604 Interest $ 24,617 $ 119,458 $ 137,453 $ 941 $ (84,394)
Other Revenue $ (1,590) $ - $ - $ - $ 8,915
Transfers In $ - $ - $ - $ 128,041
Total Revenue $ 480,535 $ 1,773,055 $ 1,387,412 $ 2,011,159 $ 42,125 Expenditures
Expenses $ 217,193 $ 34,321 $ 206,514 $ 12,023 $ 340,395 Reimbursements $ - $ 573,419 $ - $ -
Transfers Out** $ 160,000 $ - $ - $ 3,303,228
Total Expenditures $ 377,193 $ 607,740 $ 206,514 $ 3,315,251 $ 340,395 Fund Balance Beginning Year $ 2,260,005 $ 2,363,347 $ 3,528,662 $ 4,709,560 $ 3,405,468 Fund Balance End of Year $ 2,363,347 $ 3,528,662 $ 4,709,560 $ 3,405,468 $ 3,107,198 Loans Receivable* $ 143,044
Available Fund Balance End of Year $ 2,363,347 $ 3,528,662 $ 4,709,560 $ 3,405,468 $ 2,964,154 *Loans receivable reduce the amount of funding available for future spending and represent deferred income Five-Year Revenue Test
Current Fiscal Year $ 33,210
Prior Fiscal Year (2 yr-old Funds) $ 1,883,118
Prior Fiscal Year (3 yr-old Funds) $ 322,755
Prior Fiscal Year (4 yr-old Funds) $ 847,667
Prior Fiscal Year (5 yr-old Funds) $ 127,885
Funds Attributed to Last Five Years $ 3,214,635
In Excess of Five Prior Fiscal Years $ (107,437) Not subject to findings or refund per Quimby Fee Act Total Ending Balance $ 3,107,198
**Transfer to other funds for transparency. $958,944 prior to FY 17-18; $354,240 FY 2017-18; $925,388 FY 18-19; $430,022 FY 19-20;

7 Open Space Protection Impact Fee – Fund 502
This impact fee was established to address the need to acquire new open space lands commensurate with similar land lost to development projects.

As of June 30, 2022, the fund balance of 502 was $12,949, no fees were collected associated with the Open Space Protection Fund, and no balance attributed to impact fees has been held in the last 5 years. The fund balance at the beginning of fiscal year 17-18 is attributable to other funding sources and is not impact fees related.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ - $ - $ - $ 5 $ -
Interest $ 7,025 $ 9,905 $ (383) $ - $ (467)
Other Revenue $ (512) $ 89,559 $ 200,000 $ - $ -
Transfers In $ - $ - $ - $ - $ -
Total Revenue $ 6,513 $ 99,464 $ 199,617 $ 5 $ (467)
Expenditures
Expenses $ - $ 839,792 $ 34,235 $ (1) $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ 6,900
Total Expenditures $ - $ 839,792 $ 34,235 $ (1) $ 6,900 Fund Balance Beginning Year $ 588,743 $ 595,256 $ (145,072) $ 20,310 $ 20,316 Fund Balance End of Year $ 595,256 $ (145,072) $ 20,310 $ 20,316 $ 12,949 Five-Year Revenue Test
Balances from other revenue (5 years) $ 6,513
Balances from Impact Fees (5 years) $ - If number positive - funds subject to findings or refund

8 Citywide Parkland Development Impact Fee – Fund 510
This impact fee was established for the acquisition of land to construct community parks intended for access and use by the entire city. Starting the fiscal year 20-21, a reorganization of the impact fees chart of accounts was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of citywide development impact fees from Quimby in-lieu fees. Transfers from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal year 19-20.

As of June 30, 2022, the fund balance of 510 was $658,029 and no Parkland Development Impact Fees funds have been held longer than five years. Of this balance, $446,826 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ - $ - $ - $231,592 $ 121,734
Interest $ - $ - $ - $ 88 $ (13,138)
Other Revenue $ - $ - $ - $ - $ -
Transfers In $ - $ - $ - $317,753 $ -
Total Revenue $ - $ - $ - $549,433 $ 108,596
Expenditures
Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance Beginning Year $ - $ - $ - $ - $ 549,433
Fund Balance End of Year $ - $ - $ - $549,433 $ 658,029 Loans Receivable* $ 446,826
Available Fund Balance End of Year $ - $ - $ - $549,433 $ 211,203 *Loans receivable reduce the amount of funding available for future spending and represent deferred income Five-Year Revenue Test
Current Fiscal Year $108,596
Prior Fiscal Year (2 yr-old Funds) $231,680
Prior Fiscal Year (3 yr-old Funds) $317,753
Prior Fiscal Year (4 yr-old Funds) $ -
Prior Fiscal Year (5 yr-old Funds) $ -
Funds Attributed to Last Five Years $658,029
In Excess of Five Prior Fiscal Years $ - If number positive - funds subject to findings or refund Total Ending Balance $658,029
**Transfer from Fund 501 for transparency. $317,753 FY 19-20

9 Citywide Park Improvement Impact Fee – Fund 519
This impact fee was established for the improvement of new and existing community parks intended for access and use by the entire city. This fund was also created with the reorganization of the chart of accounts to account separately for Citywide Park Improvement Impact Fees. Transfers from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal year 19-20.

As of June 30, 2022, the fund balance of 510 was $1,008,615 and no Park Improvement Impact Fees funds have been held longer than five years. Of this balance, $82,807 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ - $ - $ - $517,621 $ 190,868
Interest $ - $ - $ - $ 108 $ (20,015)
Other Revenue $ - $ - $ - $ - $ -
Transfers In** $ - $ - $ - $320,033 $ -
Total Revenue $ - $ - $ - $837,762 $ 170,853
Expenditures
Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance Beginning Year $ - $ - $ - $ - $ 837,762
Fund Balance End of Year $ - $ - $ - $837,762 $1,008,615 Loans Receivable* $ 82,807
Available Fund Balance End of Year $ - $ - $ - $837,762 $ 925,808 *Loans receivable reduce the amount of funding available for future spending and represent deferred income Five-Year Revenue Test
Current Fiscal Year $ 170,853
Prior Fiscal Year (2 yr-old Funds) $ 517,729
Prior Fiscal Year (3 yr-old Funds) $ 320,033
Prior Fiscal Year (4 yr-old Funds) $ -
Prior Fiscal Year (5 yr-old Funds) $ -
Funds Attributed to Last Five Years $1,008,615
In Excess of Five Prior Fiscal Years $ - If number positive - funds subject to findings or refund Total Ending Balance $1,008,615
**Transfer from Fund 501 for transparency. $320,033 FY 19-20

10 Orcutt Area Park Impact Fee – Fund 511
This impact fee was established for the acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city but specifically by the Orcutt Area residents. Fund 511 was also created as part of the reorganization of the development impact fees charts of accounts to facilitate the accounting of park fees related to the Orcutt Area Specific Plan Development Agreement. Transfers from the Parkland In-Lieu Quimby Fee Fund have been attributed to their corresponding fiscal year.

As of June 30, 2022, the fund balance of 510 was $2,043,551 and no Orcutt Area Impact Fees funds have been held longer more than five years. $284,404 was reimbursed to Righetti Ranch, LLC as part of a reimbursement agreement in place based on the private land this developer dedicated for the construction of a park in Orcutt area.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ - $ - $ - $1,277,620 $ 130,976
Interest $ - $ - $ - $ 378 $ (51,551)
Other Revenue $ - $ - $ - $ - $ -
Transfers In* $ - $ - $ - $1,355,410 $ -
Total Revenue $ - $ - $ - $2,633,408 $ 79,425
Expenditures
Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ 366,801 $ 284,404
Transfers Out $ - $ - $ - $ 18,077 $ -
Total Expenditures $ - $ - $ - $ 384,878 $ 284,404
Fund Balance Beginning Year $ - $ - $ - $ - $2,248,530
Fund Balance End of Year $ - $ - $ - $2,248,530 $2,043,551 Five-Year Revenue Test
Current Fiscal Year $ 79,425
Prior Fiscal Year (2 yr-old Funds) $1,277,998
Prior Fiscal Year (3 yr-old Funds) $ 430,022
Prior Fiscal Year (4 yr-old Funds) $ 925,388
Prior Fiscal Year (5 yr-old Funds) $ -
Funds Attributed to Last Five Years $2,712,833
In Excess of Five Prior Fiscal Years $ (669,282) If number positive - funds subject to findings or refund Total Ending Balance $2,043,551
*Transfer from Fund 501 for transparency. $430,022 FY 19-20; $925,388 FY 18-19

11 Margarita Area Park Impact Fee – Fund 512
This impact fee was established for the acquisition and improvement of community parks and existing park facilities intended for access and use by the entire city but specifically by the Margarita area residents. This is a new fund created with the reorganization of the chart of accounts to account separately for fees collected in this specific area. Transfers from the Parkland In-Lieu Quimby Fee Fund have been attributed to their corresponding fiscal year.

As of June 30, 2022, the fund balance of 512 was $1,668,915 and a total of $958,944 has been held for more than five years. Therefore, the City Council needs to make a finding regarding the need of the funding and an approximate timeline for use of the funding.

Finding: The park planned to be constructed in the Margarita area includes various funding sources such as General fund allocations, impact fees and grants. Currently, the project is on hold since the land zoned for park space is privately owned and the current owners are not interested in selling. The City still anticipates using the funds collected for the MASP park at the time the landowner decides to sell or develop.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ - $ - $ - $ 319,388 $ 74,989
Interest $ - $ - $ - $ 269 $ (38,915)
Other Revenue $ - $ - $ - $ - $ -
Transfers In* $ - $ - $ - $1,313,184 $ -
Total Revenue $ - $ - $ - $1,632,841 $ 36,074
Expenditures
Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance Beginning Year $ - $ - $ - $ - $1,632,841
Fund Balance End of Year $ - $ - $ - $1,632,841 $1,668,915 Five-Year Revenue Test
Current Fiscal Year $ 36,074
Prior Fiscal Year (2 yr-old Funds) $ 319,657
Prior Fiscal Year (3 yr-old Funds) $ -
Prior Fiscal Year (4 yr-old Funds) $ -
Prior Fiscal Year (5 yr-old Funds) $ 354,240
Funds Attributed to Last Five Years $ 709,971
In Excess of Five Prior Fiscal Years $ 958,944 If number positive - funds subject to findings or refund Total Ending Balance $ 1,668,915
*Transfer from Fund 501 for transparency. $354,240 FY 17-18; $958,944 prior years

12 Transportation Development Impact Fee Funds

13 Citywide Transportation Impact Fee – Fund 507
This impact fee was established for the expansion of transportation facilities and travel lanes within the City.

Exhibit B contains several active projects that were funded by this fee for which a total of $3,208,929 was expended in the last fiscal year. Also, $312,152 was reimbursed to developers upon stipulations contained in different reimbursement agreements in place.

As of June 30, 2022, the fund balance of 507 was $7,203,097 and no funds were held for longer than five years.

Of this balance, $1,164,368 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments.

Last Five Fiscal Years
Description FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Revenue
Fees $ 1,230,254 $2,034,421 $2,157,533 $3,065,470 $ 1,715,909 Interest $ 558 $ 261,924 $ 252,654 $ 2,509 $ (236,024)
Other Revenue $ (6,208) $ 41,964 $ - $ - $ -
Transfers In $ - $ - $ - $ - $ -
Total Revenue $ 1,224,604 $2,338,309 $2,410,187 $3,067,979 $ 1,479,885 Expenditures
Expenses $ 1,657,916 $1,250,571 $1,186,114 $1,542,832 $ 3,208,929 Reimbursements $ - $ - $ - $ 367,755 $ 312,156
Transfers Out $ 250,000 $ 250,000 $ 280,000 $ 288,751 $ 280,000 Total Expenditures $ 1,907,916 $1,500,571 $1,466,114 $2,199,338 $ 3,801,085 Fund Balance Beginning Year $ 7,557,157 $6,873,845 $7,711,583 $8,655,656 $ 9,524,297 Fund Balance End of Year $ 6,873,845 $7,711,583 $8,655,656 $9,524,297 $ 7,203,097 Loans Receivable* $ 1,164,368
Available Fund Balance End of Year $ 6,873,845 $7,711,583 $8,655,656 $9,524,297 $ 6,038,729 *Loans receivable reduce the amount of funding available for future spending and represent deferred income Five-Year Revenue Test
Current Fiscal Year $ 1,479,885
Prior Fiscal Year (2 yr-old Funds) $ 3,067,979
Prior Fiscal Year (3 yr-old Funds) $ 2,410,187
Prior Fiscal Year (4 yr-old Funds) $ 2,296,345
Prior Fiscal Year (5 yr-old Funds) $ 1,230,812
Funds Attributed to Last Five Years $10,485,208
In Excess of Five Prior Fiscal Years $(3,282,111) If number positive - funds subject to findings or refund Total Ending Balance $ 7,203,097