San Luis Obispo City Council
July 18, 2023

City Council
AGENDA

Tuesday, July 18, 2023, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
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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 002-436-022
Agency Negotiators:

Derek Johnson, J. Christine Dietrick, Rebecca Bernstorff, Gaven Hussey, Greg Hermann, Emily Jackson, Matt Horn, Lee Johnson, Timmi Tway
Negotiating Parties:
1166 Higuera Street LLC
Under Negotiation:

Price and terms of payment

1.d ADJOURNMENT
The City Council will hold a Regular Meeting on July 18, 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 Andy Pease will lead the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a PRESENTATION - CENTRAL COAST COMMUNITY CHOICE
ENERGY
The City Council will receive a presentation from Central Coast Community Choice Energy Manager of Customer Accounts and Services, Jenna Espinosa, and Chief Executive Director, Robert Shaw.

4.b 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 ADOPT A RESOLUTION EXPRESSING SUPPORT FOR THE

DOWNTOWN AREA AS THE PREFERRED LOCATION FOR A NEW

FACILITY FOR THE SUPERIOR COURT OF CALIFORNIA
9 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, expressing support for the Downtown Area as the preferred location for a new facility for the Superior Court of California (County of San Luis Obispo Courthouse)” to support the Judicial Council of California regarding the preference of maintaining the Court Facilities in the downtown area.

6.c AWARD A CONSTRUCTION CONTRACT FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT CURB RAMPS 2022 PROJECT,
SPECIFICATION NUMBER 2000576
19 Recommendation:

Award a Construction Contract to DOD Construction LTD in the amount of $663,330 for the CDBG Curb Ramps 2022 Project, Specification No. 2000576; and

1. Approve a transfer of $15,021 from the Capital Outlay Fund Completed Projects Undesignated Capital Account to the
project account; and

2. Approve a transfer of $20,000 from the Water Distribution Point Repairs Account (2000065) to the project account.

3. 6.d SELECTION OF VOTING DELEGATE AND ALTERNATES FOR THE 2023 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE
51 Recommendation:

Appoint Council Member Emily Francis as the Voting Delegate and Council Member Michelle Shoresman and Mayor Erica A. Stewart as Alternate Voting Delegates to vote on the City’s behalf at the Annual Business Meeting of the League of California Cities on Friday, September 22, 2023.

6.e AWARD A CONSTRUCTION CONTRACT FOR THE NORTH BROAD
STREET NEIGHBORHOOD PARK, SPECIFICATION NUMBER 91683
53 Recommendation:

Award a Construction Contract to Brough Construction, Inc. in the amount of $1,441,117 for the North Broad Street
Neighborhood Park project, Specification Number 91683; and

1. Approve a Budget Transfer of $750,000 from the Parks and Recreation General Plan Implementation project account
(2000526-01) to the North Broad Street Neighborhood Park project account (2091683)

2. 6.f AUTHORIZE FUNDING FOR THE PREPARATION OF THE WATER

TREATMENT PLANT FACILITY INFRASTRUCTURE RENEWAL

STRATEGY PLAN
71 Recommendation:

Authorize the City Manager to award the contract for the Project if the bid is within available project funding of $451,111; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing Water Fund Unassigned Working Capital for preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan” in the amount of $301,111.

2. 7. PUBLIC HEARING AND BUSINESS ITEMS

7.a ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE (Estimated Time: 60 minutes)
97 Recommendation:

Approve the Economic Development Strategic Plan Update.

7.b CONSIDER CREATING A COMMITTEE TO REVIEW ELECTIONS

CAMPAIGN REGULATIONS AND/OR COUNCIL COMPENSATION
(Estimated Time: 45 minutes)
157
Recommendation:

Discuss and consider creating a committee to review Elections Campaign Regulations and/or Council Compensation, which would:

Elections Campaign Regulations – Review whether the
maximum allowable contribution should be lowered to $250 to align with Senate Bill 1439.

1. 2. Council and Advisory Body Compensation –
Review the full Council compensation package and
compensation for Planning Commission and Architectural
Review Commission members and make
recommendations to the City Council no later than May 1, 2024;
a.

Or, defer the appointment of a Council Compensation
Committee and direct staff to return in April 2024 with an increase to Council compensation consistent with the
Council Policies and Procedures (CP&P 2.1.1)
authorization to provide Consumer Price Index (CPI)
increases to Council, Planning Commission, and
Architectural Review Commission salaries without
appointing a Council Compensation Committee.
b.

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 will hold a Special Closed Session Meeting on Monday, August 14, 2023 at 5:30 p.m. in the Council Hearing Room at City Hall. The next Regular Meeting of the City Council will be held on Tuesday, August 15, 2023 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. The Regular Meeting of August 1, 2023 will be cancelled, as approved during Council's annual review of the meeting calendar on December 13, 2022.

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.

Item 6b
Department: Administration
Cost Center: 1004
For Agenda of: 7/18/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Lee Johnson, Economic Development Manager
SUBJECT: ADOPT A RESOLUTION EXPRESSING SUPPORT FOR THE

DOWNTOWN AREA AS THE PREFERRED LOCATION FOR A NEW

FACILITY FOR THE SUPERIOR COURT OF CALIFORNIA

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, expressing support for the Downtown Area as the preferred location for a new facility for the Superior Court of California (County of San Luis Obispo Courthouse)” to support the Judicial Council of California regarding the preference of maintaining the Court Facilities in the downtown area.

POLICY CONTEXT
City General Plan Land Use Element policies listed below are key in terms of guiding staff about its engagement and advocacy that the new courthouse remain in the downtown.

1.12.1 Educational and Governmental Facilities Near the City - The City shall continue to communicate with nearby government and educational institutions to address proposed changes in the numbers of workers, students, or inmates that have the potential to result in significant adverse land use or circulation impacts on the City or may negatively influence the City’s ability to manage growth.

4.1. Downtown’s Role - Downtown is the community’s urban center serving as the cultural, social, entertainment, and political center of the City for its residents, as well as home for those who live in its historic neighborhoods. The City wants its urban core to be economically healthy, and realizes that private and public investments in the Downtown support each other. Downtown should also provide a wide variety of professional and government services, serving the region as well as the city. The commercial core is a preferred location for retail uses that are suitable for pedestrian access, off-site parking, and compact building spaces.

Civic, cultural and commercial portions of Downtown should be a major tourist destination. Downtown's visitor appeal should be based on natural, historical, and cultural features, retail services, entertainment, and numerous and varied visitor accommodations.

Item 6b

4.21. Government Offices - City Hall and the County Government Center should remain at their present locations. Additional local government administrative office space which cannot be accommodated within the existing city and county properties should be developed nearby within the Downtown. (See also Section 5, Public and Cultural Facilities policies).

5.1. Public Facilities

5.1.1. Grouping for Convenience - The City shall support the continued grouping of government offices that provide similar types of services for efficient service delivery.

5.1.2. Joint Projects - The City shall work with other government agencies to cooperatively plan for new or expanded facilities. The City should encourage agencies to consider joint projects when mutual objectives can be met.

5.1.3. Civic Center - The City shall promote the continued location of the following uses in the Downtown civic center (Figure 5): A. City Council offices and meeting rooms, clerk, administration, finance, attorney, personnel, community development, utilities, and public works administration and engineering. Any additional space for these functions should be in or close to City Hall. B. County supervisor’s offices and meeting rooms, administration, courts, jury commissioner, clerk, auditor, assessor, counsel, district attorney, personnel, engineering, planning and building, environmental coordinator, and voter registration. Any additional space for these functions should be provided in or close to the County Government Center (Courthouse block).

5.1.4. Health Care - The City shall promote the location of the following uses in healthcare areas (Figure 5): A. Public Health Department; Mental Health Services; French Medical Center on Johnson Avenue near Bishop Street. B. Sierra Vista Regional Medical Center and associated health facilities on Casa and Murray Streets. C. Other compatible public or private offices or health facilities.

5.1.5. Social Services - The City shall promote the location of the following uses in a social-services area in the general vicinity of South Higuera Street near Prado Road (Figure 5): County Social and Homeless Services; California Employment Development and Rehabilitation; Federal Social Security Administration. This area should have sufficient space to accommodate regional offices of State and Federal agencies. Chapter 1 Page 1-66

5.1.6. Other Government Functions - Some government functions which have been provided at certain locations in the City should be located close to related activities, though they should not be bound to any one of the identified centers.

Such functions include: A. Probation - suitable for the civic center (courts), the County operational center on Highway 1 (sheriff), or the social services area; B.

Alcohol and drug treatment programs - suitable for the social-services area or the health-care area. C. Peripheral locations should be pursued for service vehicle storage.

Item 6b

DISCUSSION
Background
The Judicial Council of California (JCC) is starting the process of building a new court facility for the Superior Court of California, County of San Luis Obispo (Courts). This effort is statewide, and the courts of various counties are prioritized by the JCC and funded through State legislation. Currently, $292M has been approved for the project.

The first stage in the process is site selection. The process of site selection is defined in State code. The City’s participation in the process is limited to the Project Advisory Group (PAG). The PAG’s role is to determine the site selection criteria, the sites that should be evaluated, and ultimately the preferred and alternative site(s).

The first meeting of the PAG was held in October 2022. The PAG is composed of various stakeholders from the Courts, the legal community, municipal government (the City Manager is the representative from the City) and the business community.

Based on the original timeline, the target date for final site selection was April 2023. Due to challenges with the originally identified sites and general land availability, the site selection process has been delayed with a new target date for final selection in the fall of 2023.

The two remaining sites under evaluation are:

1. The County property at 1144 Monterey, commonly known as the “Kimball Motors site” is the preferred site.

2. The current site of the Courts is the alternative site. This site requires nothing from the City, but does require additional funding, which the JCC is addressing at the State level to determine viability.

As it relates to the Kimball Motors site, the City’s role is limited. The County is the owner of the property and the JCC is a superior agency, so the City has no land use or development review authority. The JCC has asked the City to provide a Resolution of Support for the downtown location of the Courts.

However, the areas that the City has influence and the ability to impact the viability of the site are related to fire and life safety and the potential availability of City right of way.

Fire and Life Safety Considerations
Based on the initial review by the Fire Marshall, fire and life safety issues can be addressed through the design process.

Item 6b
City Right-of-Way Considerations
The potential availability of City right of way for the Kimball Motors site has been identified by the JCC as a necessary component for that location. Given the JCC’s current design, the land available within the Kimball Motors site is too small to accommodate all the Court’s criteria.

One of the core requirements of the site selection process is a minimum setback of the building from adjacent roadways for security purposes. A minimum 25-foot setback is required along with secured access for vehicles from multiple approaches. Should this site be chosen there is the potential that portions of the City’s right of way on Toro Street and the Monterey Palm Alley would need to be modified to meet the Court’s requirements. There are specific processes for right-of-way abandonment that the City would have to follow should this location be selected that will require a public process and Council involvement.

Other Considerations
Economic Impact
While the Downtown has been able to weather the impacts of the pandemic, climate change, remote work, changes in retail, online shopping, and other challenges, the positive economic impact of the Courts and their supporting infrastructure cannot be underestimated. The jurors, lawyers, Judges, Court, and County employees are key contributors to the success of our small business community Downtown and beyond. The vibrancy of our downtown and a large source of revenue to the City are at significant risk should the Courts move outside of the Downtown or the City.

Next Steps
If the Kimball Motors site is ultimately selected, staff will initiate the appropriate right-of-way abandonment processes. The issue would come back to the City Council in a public hearing for action following Planning Commission review. Should any negotiation of price and terms related to any transfer or relinquishment of real property between the City and the Courts be necessary, Staff would also return to the City Council in Closed Session for additional direction on price and terms. This information would be fully developed through the research associated with the abandonment process.

Public Engagement
There has been no public engagement at this time, however, public engagement would be included in any subsequent right-of-way abandonment processes. The public will have the opportunity to provide comment on this item before or during the City Council meeting on July 18, 2023.

CONCURRENCE
The Fire, Community Development, Public Works, City Attorney’s Office and Administration and IT departments concur with the recommendation.

Item 6b

ENVIRONMENTAL REVIEW
Ultimately, the development of the new facility will require a project-level environmental review. The City would be a Responsible Agency with discretionary approval authority over a portion of the project because permits will be required for needed public improvements to the surrounding curb, gutter and sidewalks. Access to utilities, including water and sewer service will also require permits from the City. The current recommendation is to approve a Resolution in support of all sites in the downtown area, which is not considered a “project” under CEQA section 15378, since the Resolution itself is an administrative activity which will not result in direct or indirect physical changes in the environment.

FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
Funding Sources Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ N/A $ $ $
State
Total $ N/A $ $ $
Continued engagement with the JCC regarding the Kimball Motors site does not have immediate fiscal impacts, but the long-term fiscal impacts of the Courts leaving Downtown and/or the City are significant. In addition, should the Kimball Motors site be selected, and any negotiation of price and terms related to any transfer or relinquishment of real property between the City and the Courts be necessary, staff will return to Council via Closed Session for direction on any reimbursement and/or payment associated with the transfer of City-owned real property related to the project.

ALTERNATIVES
The Council could direct staff to end engagement with the Judicial Council of California regarding the sites Downtown. This action is not recommended as it would not be consistent with current policy, and it could have severe economic impacts to the City.

ATTACHMENTS
A - Draft Resolution Supporting a Court Facility Downtown

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, EXPRESSING SUPPORT FOR THE

DOWNTOWN AREA AS THE PREFERRED LOCATION FOR A NEW

FACILITY FOR THE SUPERIOR COURT OF CALIFORNIA (COUNTY OF

SAN LUIS OBISPO COURTHOUSE)
WHEREAS, the City of San Luis Obispo is the largest city in the County of San Luis Obispo; and
WHEREAS, on July 18, 2023, the City Council expressed support for the Court location to remain in the downtown; and
WHEREAS, the Judicial Council of California (Judicial Council) is responsible for and has final approval authority over all court facilities projects pursuant to the Trial Court Facilities Act (Gov. Code §§70301 et seq.); and
WHEREAS, the Judicial Council of California is the Lead Agency for the evaluation, environmental review, siting, funding, and construction of a Court Facility pursuant to CEQA Guidelines 15051(a) and the City will work with the State during the development and environmental review stages of the project and may submit comments as a responsible agency as defined under CEQA; and
WHEREAS, the City Council acknowledges that the final design, location, and timing of siting of any potential Court Facility has not been determined at this time, and ultimately will be decided by the State of California through the Judicial Council of California; and
WHEREAS, the City Council acknowledges that, if a location in the Downtown is selected, it may be necessary for the City to:

1. Abandon a portion of Toro Street between Palm Street and Monterey Street

2. Realignment of utilities on Toro Street

3. Abandonment of a portion of the alley between Toro Street and Santa Rosa Street

4. Close street parking on Monterey Street along the courthouse property frontage between Toro Street and Santa Rosa Street

5. Participate in public processes necessary to the Judicial Council’s efforts to implement the project, including compliance with the California Environmental Quality Act; and

Resolution No. _____ (2023 Series) Page 2
R ______
WHEREAS, the process by which a new courthouse is sited and constructed is lengthy; and
WHEREAS, it is the intent of the City to collaborate with the San Luis Obispo Superior Courts to facilitate a location within the City of San Luis Obispo as the Judicial Council of California decides to prioritize the courthouse needs for San Luis Obispo County; and
WHEREAS, any proposed project to develop a public facility will require adherence to CEQA processes to ensure consideration of environmental impact; and WHEREAS, the City’s policy and planning documents support the downtown as a location for a Court Facility; and
WHEREAS, the City values intergovernmental partnerships to promote efficiency and maximize public value.

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

1. The City supports the continued location of the San Luis Obispo Superior Courts within the Downtown area of the City of San Luis Obispo; and

2. The City commits to promote and creatively participate in the responsible development of the Court Facility in the vicinity of the Downtown by supporting the efforts of the Judicial Council and San Luis Obispo County Superior Court to define a proposed Project Description, identify a preferred site and/or alternative site location, and to implement the Judicial Council’s project consistent with the requirements of the California Environmental Quality Act and other applicable law and public hearing requirements.

3. The City commits to working with the State in its efforts to mitigate the project’s potential effects on circulation and to optimize traffic flow and access to Toro Street, Monterey Street (consistent with the needs of the project), and the Monterey/Palm Alley during and after construction of the new San Luis Obispo Courthouse.

Resolution No. _____ (2023 Series) Page 3
R ______

4. This action is not subject to the California Environmental Quality Act under State CEQA guidelines §15262 as it is a commitment to study and this resolution is not a statement of commitment and that full environmental analysis of the project including any transportation or other related impacts shall be analyzed by the Judicial Council who shall serve as lead agency and the City of San Luis Obispo may submit comments as a responsible agency and work with the State of California on CEQA compliance.

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

Item 6c
Department: Public Works
Cost Center: 5006
For Agenda of: 7/18/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Shelsie Moore, Supervising Civil Engineer
SUBJECT: AWARD A CONSTRUCTION CONTRACT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT CURB RAMPS 2022 PROJECT,
SPECIFICATION NUMBER 2000576

RECOMMENDATION

1. Award a Construction Contract to DOD Construction LTD in the amount of $663,330 for the CDBG Curb Ramps 2022 project, Specification No. 2000576; and

2. Approve a transfer of $15,021 from the Capital Outlay Fund Completed Projects Undesignated Capital Account to the project account; and

3. Approve a transfer of $20,000 from the Water Distribution Point Repairs Account (2000065) to the project account.

POLICY CONTEXT
Per the April 4, 2023 Council Agenda Report, award of the project contract requires Council approval since the lowest responsible total bid is higher than the publicly disclosed funding amount.

DISCUSSION
Background
The Community Development Block Grant (CDBG) is an annual formulaic grant dispersed by the U.S. Department of Housing and Urban Development (HUD). The CDBG provides a federal funding source for local municipalities to improve housing and the liveable environment. This grant is administered through San Luis Obispo County, and staff is collaborating with the County to ensure a successful project.

Upon receipt of this grant, staff considered curb ramp installations that would have the highest benefit to the community. The Council-adopted Active Transportation Plan identifies areas in highest need for pedestrian improvements1, including the area along Augusta Street from Bishop Street to San Marcos Court.

1 Active Transportation Plan, Figure 33, Page 146.
https://www.slocity.org/home/showpublisheddocument/29123/637471709222270000

Item 6c
The proximity of Sinsheimer Elementary School and the lack of existing curb ramps resulted in strong community support in the area and has been identified as a priority project in the Active Transportation Plan. The improvements will work in tandem with a separate project to upgrade the pedestrian crossing of Sydney/Johnson in 2023. Staff received notification of CDBG award late in July 2022 and began design efforts shortly thereafter.

On April 4, 2023, the City Council authorized staff to advertise for construction bids for the project and authorized the City Manager to award the contract if the lowest responsible bid was below the publicly disclosed funding amount of $650,000. The project bid documents included a Base bid and an Additive Alternative.

On June 8, 2023, one bid was received and publicly opened (Attachment A). DOD Construction LTD (DOD Construction) submitted a bid for the total project cost (including an Additive Alternative) of $663,330 which is $13,330 over the publicly disclosed funding amount. Since the bid is very close to the authorized limit, staff is returning to Council to request authorization to award the full contract. By awarding the full construction contract, the City will see cost benefits from doing the full project at one time and will be able to complete the ten (10) additional curb ramps included in the project additive alternative.

Therefore, staff recommends transferring additional funds to complete the entire project.

The Contractor’s references, license, and registration with the Department of Industrial Relations have been verified.

Bid Results Base Bid Additive
Alternative A Total Bid
1 DOD Construction LTD $410,080 $253,250 $663,330
Previous Council or Advisory Body Action
Council approved the Active Transportation Plan in 2021, which identified this area as a high-priority location for upgrades to curb ramps. In March of 2022, Council also passed a resolution approving the 2023 Community Development Block Grant Program which identified the CDBG Curb Ramp project in the program. In April of 2023, Council Authorized advertisement of the CDBG Curb Ramps 2022 project.

Public Engagement
During public outreach for the Active Transportation Plan, pop-up events including one near the project were held to gather feedback on project priorities. Curb ramps around Augusta Street received a high number of requests given the proximity to Sinsheimer Elementary School and Sinsheimer Park.

CONCURRENCE
Public Works and Community Development concur with the recommendations of this report.

Item 6c

ENVIRONMENTAL REVIEW
Since this project is receiving federal funding, both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) environmental reviews were completed. The project is exempt from CEQA pursuant to State CEQA Guidelines Section 15302 (Class 2 – Replacement or Reconstruction) because the project is limited to the construction of ADA curb ramps within an existing street and public right-of-way, and the roadway will have the same purpose and capacity while meeting accessibility requirements. The project qualified and was approved for a Categorical Exclusion under NEPA, according to federal regulations (24 CFR section 58.35(a)(1) – Repair of Public Facilities and Improvements). The City will comply with all applicable CEQA, NEPA, and HUD regulations throughout construction of this project.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-2023
Funding Identified: Yes
The City has been awarded the CDBG grant in the amount of $385,483 to be used for this project. The April 4, 2023, Council Agenda Report approved several budget transfers including $310,000 from the Sidewalk Annual Asset Maintenance Account, $45,000 from the Street Reconstruction and Resurfacing Annual Asset Maintenance Account, and $24,624 from the Capital Outlay Fund Completed Projects Undesignated Capital Account to the project account to construct the project. The current available project budget is $765,107. Staff is requesting two additional transfers to supplement the project cost and cover the higher bid price. Staff is requesting a transfer of $15,021 from the Completed Projects Undesignated Capital Account and $20,000 from the Water Distribution Point Repairs account to cover the cost of replacing a fire hydrant adjacent to the curb ramp at Augusta Street and Sydney Street. The Water Distribution Point Repairs Account has an available balance of $391,009 and will have $371,009 remaining after the project.

All CDBG funds will be spent as part of this project.

Fiscal Analysis:

Funding
Sources
Total Budget
Available
Additional
Funding
Request
Remaining
Balance
after Project
Annual
Ongoing
Cost
General Fund $394,645 $15,021 $0
State
Federal: CDBG $385,483 $0
Fees
Other: Water $391,009 $20,000 $371,009
Total $1,171,137 $35,021 $371,009 N/A

Item 6c
Completed
Projects
Undesignated
Capital
Water
Distribution
Point Repairs
(2000065)
Project
Total Cost
General
Fund
CDBG
Grant General Fund Water Fund
Construction Base Bid $4,597 $385,483 $20,000 $410,080
Additive Alternate Bid $253,250 $253,250
Total Project Bid $257,847 $385,483 $0 $20,000 $663,330 Construction Contingency (17%) $101,777 $15,021 $116,798 Total Constuction Estimate$359,624 $385,483 $15,021 $20,000 $780,128 Material Testing $10,000 $10,000
Printing $500 $500
Construction Support $9,500 $9,500
Total Project Estimate $379,624 $385,483 $15,021 $20,000 $800,128 Available Project Balance $379,624 $385,483 $15,021 $391,009 $1,171,137 Remaining Balance $0 $0 $0 $371,009 $371,009
CDBG Curb Ramps 2022, Specification 2000576
Project Account
(2000576)

ALTERNATIVES

1. Deny awarding project. Council may deny the award of the project, but City staff advises against this as delay of the construction of the project may jeopardize the grant funding received.

2. Deny transfer of additional funding. Council may deny the request to transfer additional funding and only allow award of the base bid of the project, but City staff advises against this as the alternative has ten additional designed curb ramps ready for installation.

ATTACHMENTS
A - Bid Results - 2000576
B - Draft Construction Contract with DOD Construction

Unit Total
Item No. Unit Quantity Price ($) Price ($)
1 LS 1 --- $30,000.00
2 LS 1 --- $10,000.00
3 LS 1 --- $40,000.00
4 LS 1 --- $10,000.00
5 LS 1
---
$3,000.00
6 LS 1
--- $2,000.00
7 LS 1 --- $28,000.00
8 LS 1 --- $23,000.00
9 LS 1
--- $20,000.00
10 LS 1 --- $21,500.00
11 LS 1 --- $16,500.00
12 LS 1 --- $20,000.00
13 LS 1 --- $18,000.00
14 LS 1 --- $15,000.00
15 LS 1 --- $15,500.00
16 LS 1 --- $13,000.00
17 LS 1 --- $17,000.00
18 SQFT 707 $40.00 $28,280.00
19 EA 1 --- $7,000.00
20 EA 1 --- $13,000.00
21 LS 1 --- $3,000.00
22 LS 1 --- $7,500.00
23 SQFT 5700 $2.00 $11,400.00
24 EA 4 $600.00 $2,400.00
25 EA 5 $700.00 $3,500.00
26* SQFT 250 $30.00 $7,500.00
27* LF 50 $80.00 $4,000.00
28* SQFT 250 $60.00 $15,000.00
29* SGFT 100 $50.00 $5,000.00
$410,080.00
30 LS 1 --- $10,000.00
31 LS 1 --- $3,500.00
32 LS 1 --- $10,000.00
33 LS 1
--- $2,500.00
Additional Curb and Gutter Replacement Allowance
Additional Cross Gutter Allowance
Additional Paveout Allowance (10' thickness)
Additive Alternate Construction Surveying
Additive Alternate Pothole and Dip Manholes
Additive Alternate Traffic Control
Additive Alternate Water Pollution Control Program
SE Curb Ramp: Augusta St & Gerda St
NW Curb Ramp: Augusta St & Greta Pl
Additional Sidewalk Replacement Allowance
NE Curb Ramp : Augusta St & San Marcos Ct
SE Curb Ramp : Augusta St & San Marcos Ct
Remove & Replace: Concrete Cross Gutter
Remove & Replace: Asphalt Pavement Section
(Sydney St)
Remove and Abandon Fire Hydrant Assembly
Install Fire Hydrant Assembly
Striping Removal
Striping and Markings
Fog Seal
Relocate Sign and Post
Installing New Sign and Post
NE Curb Ramp: Augusta St & Sydney St
SE Curb Ramp: Augusta St & Sydney St
East Side Curb Ramp: Midblock Augusta St & Gerda
St
NW Curb Ramp: Augusta St & Sydney St
SW Curb Ramp: Augusta St & Sydney St
Total Cost of Base Bid in ($)
Additive Alternative Bid "A"
DOD Construction LTD
ITEM
Construction Surveying
Pothole and Dip Manholes

BASE BID
CDBG Curb Ramps Project 2022-Specification No. 2000576
Bid Opening: 06/08/2023
SW Curb Ramp: Augusta St & Greta Pl
Traffic Control
Water Pollution Control Program
Compliance with Requirements for Federally Assisted
Construction Projects Funded with Community
Development Block Grants
Compliance with Environmental Mitigation Measures

34 LS 1
---
$2,500.00
35 LS 1
--- $2,500.00
36 LS 1 --- $18,000.00
37 LS 1 --- $20,000.00
38 LS 1 --- $20,000.00
39 LS 1 --- $13,000.00
40 LS 1 --- $13,000.00
41 LS 1 --- $15,000.00
42 LS 1 --- $18,000.00
43 LS 1 --- $15,000.00
44 LS 1 --- $15,000.00
45 LS 1 --- $13,000.00
46 LS 1 --- $3,500.00
47 LS 1 --- $10,000.00
48 SQFT 4850 $3.00 $14,550.00
49 EA 1 --- $600.00
50* EA 3 $700.00 $2,100.00
51* SQFT 250 $30.00 $7,500.00
52* LF 50 $80.00 $4,000.00
53* SQFT 250 $60.00 $15,000.00
54* SQFT 100 $50.00 $5,000.00
$253,250.00
$663,330.00
Additive Alternate Additional Paveout Allowance
(10' thickness)
SE Curb Ramp: Augusta St & Cecelia Ct
NW Curb Ramp: Augusta St & San Mateo Dr
SW Curb Ramp: Augusta St & San Mateo Dr
Additive Alternate Striping Removal
Additive Alternate Striping and Markings
Additive Alternate Fog Seal
Additive Alternate Relocate Sign and Post
Additive Alternate Install New Sign and Post
Additive Alternate Additional Sidewalk Replacement
Allowance
Additive Alternate Additional Curb and Gutter
Replacement Allowance
Additive Alternate Additional Cross Gutter Allowance
SW Curb Ramp: Augusta St &Bishop St
NE Curb Ramp: Augusta St & Cecelia Ct
NW Curb Ramp: Augusta St & San Carlos Dr
Additive Alternate Compliance with Requirements
for Federally Asissted Construction Projects Funded
with Community Development Block Grants
Additive Alternate Compliance with Environmental
Mitigation Measures
SW Curb Ramp: Augusta St & San Carlos Dr
NW Curb Ramp: Augusta St & Reba St
SW Curb Ramp: Augusta St & Reba St
SE Curb Ramp: Augusta St & Bishop St
Total Cost of Additive Alternative Bid "A" in ($)
Total Project Cost: ( Base Bid + Additive Alternative Bid "A") in ($)

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

WITNESSETH:

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

ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of
CDBG CURB RAMPS 2022, SPEC NO. 2000576
in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.

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

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

Item
No.

Item
Description
Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
1 Construction Surveying LS 1 --- $30,000.00
2 Pothole and Dip Manholes LS 1 --- $10,000.00
3 Traffic Control LS 1 --- $40,000.00
4 Water Pollution Control Program LS 1 --- $10,000.00
5 Compliance with Requirements
for Federally Assisted
Construction Projects Funded
with Community Development
Block Grants
LS 1 --- $3,000.00
6 Compliance with Environmental
Mitigation Measures
LS 1 --- $2,000.00
7 NE Curb Ramp:

Augusta St & Sydney St
LS 1 --- $28,000.00
DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

8 SE Curb Ramp:

Augusta St & Sydney St
LS 1 --- $23,000.00
9 East Side Curb Ramp: Midblock
Augusta St & Gerda St
LS 1 --- $20,000.00
10 NW Curb Ramp:

Augusta St & Sydney St
LS 1 --- $21,500.00
11 SW Curb Ramp:

Augusta St & Sydney St
LS 1 --- $16,500.00
12 SE Curb Ramp:

Augusta St & Gerda St
LS 1 --- $20,000.00
13 NW Curb Ramp:

Augusta St & Greta Pl
LS 1 --- $18,000.00
14 SW Curb Ramp:

Augusta St & Greta Pl
LS 1 --- $15,000.00
15 NE Curb Ramp:

Augusta St & San Marcos Ct
LS 1 --- $15,500.00
16 SE Curb Ramp:

Augusta St & San Marcos Ct
LS 1 --- $13,000.00
17 Remove & Replace Concrete Cross
Gutter
LS 1 --- $17,000.00
18 Remove & Replace Asphalt
Pavement Section (Sydney St)
SQFT 707 $40.00 $28,280.00
19 Remove and Abandon Fire Hydrant
Assembly
EA 1 $7,000.00 $7,000.00
20 Install Fire Hydrant Assembly EA 1 $13,000.00 $13,000.00 21 Striping Removal LS 1 --- $3,000.00
22 Striping and Markings LS 1 --- $7,500.00
23 Fog Seal SQFT 5700 $2.00 $11,400.00
24 Relocate Sign and Post EA 4 $600.00 $2,400.00
25 Install New Sign and Post EA 5 $700.00 $3,500.00
26 Additional Sidewalk Replacement
Allowance
SQFT 250 $30.00 $7,500.00
27 Additional Curb and Gutter
Replacement Allowance
LF 50 $80.00 $4,000.00
28 Additional Cross Gutter Allowance SQFT 250 $60.00 $15,000.00 29 Additional Paveout Allowance (10”
thickness)
SQFT 100 $50.00 $5,000.00
Base Bid $410,080.00
30 Additive Alternate Construction
Surveying
LS 1 --- $10,000.00
31 Additive Alternate Pothole and Dip
Manholes
LS 1 --- $3,500.00
32 Additive Alternate Traffic Control LS 1 --- $10,000.00 33 Additive Alternate Water Pollution
Control Program
LS 1 --- $2,500.00
DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

34 Additive Alternate Compliance
with Requirements for Federally
Assisted Construction Projects
Funded with Community
Development Block Grants
LS 1 --- $2,500.00
35 Additive Alternate Compliance with
Environmental Mitigation Measures
LS 1 --- $2,500.00
36 NW Curb Ramp:

Augusta St & San Carlos Dr
LS 1 --- $18,000.00
37 SW Curb Ramp:

Augusta St & San Carlos Dr
LS 1 --- $20,000.00
38 NW Curb Ramp:

Augusta St & Reba St
LS 1 --- $20,000.00
39 SW Curb Ramp:

Augusta St & Reba St
LS 1 --- $13,000.00
40 SE Curb Ramp:

Augusta St & Bishop St
LS 1 --- $13,000.00
41 SW Curb Ramp:

Augusta St & Bishop St
LS 1 --- $15,000.00
42 NE Curb Ramp:

Augusta St & Cecelia Ct
LS 1 --- $18,000.00
43 SE Curb Ramp:

Augusta St & Cecelia Ct
LS 1 --- $15,000.00
44 NW Curb Ramp:

Augusta St & San Mateo Dr
LS 1 --- $15,000.00
45 SW Curb Ramp:

Augusta St & San Mateo Dr
LS 1 --- $13,000.00
46 Additive Alternate Striping Removal LS 1 --- $3,500.00 47 Additive Alternate Striping and
Markings
LS 1 --- $10,000.00
48 Additive Alternate Fog Seal SQFT 4,850 $3.00 $14,550.00 49 Additive Alternate Relocate Sign
and Post
EA 1 --- $600.00
50 Additive Alternate Install New Sign
and Post
EA 3 $700.00 $2,100.00
51 Additive Alternate Additional
Sidewalk Replacement Allowance
SQFT 250 $30.00 $7,500.00
52 Additive Alternate Additional Curb
and Gutter Replacement Allowance
LF 50 $80.00 $4,000.00
53 Additive Alternate Additional Cross
Gutter Allowance
SQFT 250 $60.00 $15,000.00
54 Additive Alternate Additional
Paveout Allowance (10” thickness)
SQFT 100 $50.00 $5,000.00
Additive Alternative Bid “A” $253,250.00
Total Project Bid = (Base Bid + Additive Alternative “A”) $663,330.00 BID TOTAL: $663,330.00
Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract.

DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

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

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

1. Notice to Bidders and Information for Bidders

2. Standard Specifications and Engineering Standards

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

4. Caltrans Standard Specifications and Standard Plans 2015

5. Accepted Bid and Bid Bond

6. List of Subcontractors

7. Public Contract Code Sections 10285.1 Statement

8. Public Contract Code Section 10162 Questionnaire

9. Public Contract Code Section 10232 Statement

10.Labor Code Section 1725.5 Statements

11.Bidder Acknowledgements

12.Qualifications

13.Non-collusion Declaration

14.Agreement and Bonds

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

DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

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

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

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

ARTICLE VI. Contractor is subject to compliance with all required federal clauses per Exhibit A – Requirements For Federally Assisted Construction Projects Funded With Community Development Block Grants(CDBG).

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

ATTEST: CITY OF SAN LUIS OBISPO
A Municipal Corporation
________________________________
Erica A. Stewart, Mayor
CONTRACTOR:

DOD Construction LTD
_________________________________
Teresa Purrington, City Clerk

APPROVED AS TO FORM
_________________________________
J. Christine Dietrick
City Attorney
________________________________
Derrick Dickerson
Chief Executive Officer
_________________________________
Charoletta Dickerson
Secretary
DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

EXHIBIT A – REQUIREMENTS FOR FEDERALLY ASSISTED CONSTRUCTION

PROJECTS FUNDED WITH COMMUNITY DEVELOPMENT BLOCK GRANTS(CDBG)

TABLE OF CONTENTS
A. FEDERAL CONTRACT REQUIREMENTS AND PROVISIONS (HUD-CDBG)

1. Violate or Breach Contract Terms

2. Termination of Contract for Cause

3. Termination of Contract for Convenience

4. Equal Employment Opportunity

5. Davis-Bacon Act

5.1 Minimum Wages

5.2 Withholdings

5.3 Payroll and Basic Records

5.4 Apprentices and Trainees

5.5 Compliance with Copland Act Requirements

5.6 Subcontracts

5.7 Contract Termination: Debarment

5.8 Compliance with Davis-Bacon and Related Act Requirements

5.9 Disputes Concerning Labor Standards

5.10 Certification of Eligibility

6. Prevailing Wages

7. Copeland Anti-kickback Act

8. Contract Work Hours and Safety Standards Act

8.1 Overtime Requirements

8.2 Violation; liability for unpaid wages; liquidated damages

8.3 Withholding for unpaid wages and liquidated damages

8.4 Subcontracts

9. Rights to Inventions

10. Clean Air Act and Federal Water Pollution Control Act

10.1 Clean Air Act

10.2 Federal Water Pollution Control Act

11. Debarment and Suspension

12. Mandatory Disclosures

13. Byrd Anti-Lobbying Amendment

14. Procurement of Recovered Materials

15. Prohibition on Contracting for Covered Telecommunications Equipment or Services

15.1 Definitions

15.2 Prohibitions

15.3 Exceptions

15.4 Reporting Requirements

15.5 Subcontracts

16. Domestic Preference for Procurements

17. Executive Order N-6-22 – Russia Sanctions

18. Access to Records

19. Contracting with small and minority businesses, women's business enterprises, and labor DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

surplus area firms

20. Inflation Adjustment of Acquisition – related dollar threshold

21. Bid Guarantee

22. Performance Bond

23. Payment Bond
B. FEDERAL WAGE DETERMINATIONS
Federal Wage Determinations for Construction Contracts Subject to Davis Bacon DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

A. FEDERAL CONTRACT REQUIREMENTS AND PROVISIONS (HUD-CDBG)

1. Violate or Breach Contract Terms. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final payment, termination of the contract, suspension/debarment or any other action determined to be appropriate by the City.

2. Termination of Contract for Cause. If Contractor (1) fails to perform Contractor's duties to the satisfaction of the City, or (2) fails to fulfill in a timely and professional manner Contractor's obligations under this Contract, or (3) violates any of the terms or provisions of this Contract, then City shall have the right to terminate this Contract effective immediately upon the City giving written notice to the Contractor. Termination shall have no effect upon the rights and obligations of the parties arising out of any transaction occurring prior to the effective date of such termination. Contractor shall be paid for all work satisfactorily completed and accepted by the City prior to the effective date of such termination. If City's termination of Contractor for cause is defective for any reason, including but not limited to City's reliance on erroneous facts concerning Contractor's performance, or any defect in notice thereof, City's maximum liability, if any, shall not exceed the amount payable to Contractor under this Contract.

3. Termination of Contract for Convenience. The City may terminate this Contract at any time by giving the Contractor thirty (30) days prior written notice of such termination.

Termination shall have no effect on upon the rights and obligations of the parties arising out of any transaction occurring prior to the effective date of such termination. Contractor shall be paid for all accepted goods and work satisfactorily completed and accepted by City prior to the effective date of the termination. Termination of this Contract may be effectuated by the City Manager without the need for action, approval or ratification of the City Council.

4. Equal Employment Opportunity. During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following:

Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
(3) The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.
(4) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (5) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (6) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders. (7) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (8) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

agency may direct as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, that if the applicant so participating is a state or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

5. Davis-Bacon Act.
(1) Minimum Wages.
(i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period.

Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis-Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.
(ii)
(A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:
(1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and
(2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.
(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii) (B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met.

The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (2) Withholdings.

The City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the contract, the City may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.
(3) Payroll and Basic Records.
(i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project). Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR

5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.

Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)
(A) The contractor shall submit weekly for each week in which any contract work is performed a copy of all payrolls to the City if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit the payrolls to the applicant, sponsor, or owner, as the case may be, for transmission to the City. The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on weekly transmittals. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/wh347.pdf or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the City if the agency is a party to the contract, but if the agency is not such a party, the contractor will submit them to the applicant, sponsor, or owner, as the case may be, for transmission to the City, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the sponsoring government agency (or the applicant, sponsor, or owner). (B) Each payroll submitted shall be accompanied by a “Statement of Compliance,” signed by the contractor or subcontractor or his or her agent who pays or supervises DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

the payment of the persons employed under the contract and shall certify the following:
(1) That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete;
(2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3;
(3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract.
(C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code.
(iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the City or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
(4) Apprentices and Trainees.
(i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S.

Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be greater than the ratio permitted to DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed.

Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. (5) Compliance with Copeland Act requirements.

The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract.
(6) Subcontracts.

The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the U.S. Department of Housing and Urban Development (HUD) may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7) Contract Termination: Debarment.

A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR

5.12. (8) Compliance with Davis-Bacon and Related Act Requirements.

All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. (9) Disputes Concerning Labor Standards.

Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their representatives.
(10) Certification of Eligibility.
(i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the DavisBacon Act or 29 CFR 5.12(a)(1).

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(ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001.

6. Prevailing Wages. Federal funds are being used on this project, and therefore, the DavisBacon Act (40 U.S.C. 276a to 276a-7) as supplemented in the Department of Labor regulations (29 CFR Part 5) applies. The Federal minimum wage rates for this project as predetermined by the United States Secretary of Labor are set forth in the Special Provisions. If there is a difference between the minimum wage rates predetermined by the Secretary of Labor and the prevailing wage rates determined to be applicable to this contract by the Director of the California Department of Industrial Relations for similar classifications of labor, the Contractor and subcontractors shall pay not less than the higher wage rate.

Pursuant to the provisions of Section 1773 of the California Labor Code, the Board of Supervisors of the City of San Luis Obispo has obtained from the Director of the California Department of Industrial Relations the general prevailing rate of per diem wages and the general prevailing rate for holiday and overtime work for the locality in which the work is to be performed for each needed craft, classification, or type of workman. Copies of said prevailing rate of per diem wages are on file in the Office of the Clerk of the Board of Supervisors and available at the California Department of Industrial Relations’ web site address at: https://www.dir.ca.gov/OPRL/2021-1/PWD/Determinations/Subtrades/Shift/ShiftSLO.html. Bidders are advised that any contractor who is awarded a public works project and intends to use a craft or classification not shown on the general prevailing wage determination may be required to pay the wage rate of that craft or classification most closely related to it as shown in the general determinations effective at the time of the call for bids.

7. Copeland Anti-Kickback Act.

Contractor. The contractor shall comply with 18 U.S.C. § 874,40 U.S.C. § 3145, and the requirements of 29 C.F.R. Part 3 as may be applicable, which are incorporated by reference into this contract.

Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as FEMA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts.

The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses.

Breach. A breach of the contract clauses above may be grounds for termination of the contract, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. § 5.12.

8. Contract Work Hours and Safety Standards Act. The Agency Head shall cause or require the contracting officer to insert the following clauses set forth in paragraphs (b)(1), (2), (3), and (4) of this section in full in any contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

clauses shall be inserted in addition to the clauses required by § 5.5(a) or § 4.6 of part 4 of this title. As used in this paragraph, the terms laborers and mechanics include watchmen and guards.
(1) Overtime Requirements.

No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages.

In the event of any violation of the clause set forth in paragraph (b)(1) of this section the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (b)(1) of this section, in the sum of $29 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (b)(1) of this section.
(3) Withholding for unpaid wages and liquidated damages.

The City shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (b)(2) of this section. (4) Subcontracts.

The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (b)(1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

subcontractor with the clauses set forth in paragraphs (b)(1) through (4) of this section.

In addition to the clauses contained in paragraph (6), in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in §

5.1, the Agency Head shall cause or require the contracting officer to insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and weekly number of hours worked, deductions made, and actual wages paid. Further, the Agency Head shall cause or require the contracting officer to insert in any such contract a clause providing that the records to be maintained under this paragraph shall be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the City and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job.

9. Rights to Inventions. If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2(a) and the City wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement”, the non-Federal entity must comply with the requirements of 37 CFR Part 401 (Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements). The regulation at 37 CFR § 401.2(a) currently defines “funding agreement” as any contract, grant, or cooperative agreement entered into between any Federal agency, other than the Tennessee Valley Authority, and any contractor for the performance of experimental, developmental, or research work funded in whole or in part by the Federal government. This term also includes any assignment, substitution of parties, or subcontract of any type entered into for the performance of experimental, developmental, or research work under a funding agreement as defined in the first sentence of this paragraph.

10. Clean Air Act and Federal Water Pollution Control Act. (1) Clean Air Act.

The contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.

The contractor agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal Emergency Management Agency (FEMA), and the appropriate Environmental Protection Agency Regional Office.

The contractor agrees to include these requirements in each subcontract exceeding $150,000 financed in whole or in part with federal assistance provided by FEMA.

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(2) Federal Water Pollution Control Act.

The contractor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the federal Water Pollution Control Act, as amended, 33 U.S.C. § 1251 et seq.

The contractor agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the any pass-through entity, if applicable, Federal Emergency Management Agency (FEMA), and the appropriate Environmental Protection Agency Regional Office. The contractor agrees to include these requirements in each subcontract exceeding $150,000 financed in whole or in part with federal assistance provided by FEMA.

11. Debarment and Suspension. This contract is a covered transaction for purposes of 2 C.F.R.

Part 180 and 2 C.F.R. Part 3000. As such, the contractor is required to verify that none of the contractor’s principals (defined at 2 C.F.R. § 180.995) or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935).

The contractor must comply with 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C, and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into.

This certification is a material representation of fact relied upon by the recipient. If it is later determined that the contractor did not comply with 2 C.F.R. Part 180, subpart C and 2 C.F.R.

Part 3000, subpart C, in addition to remedies available to the recipient, the federal government may pursue available remedies, including but not limited to suspension and/or debarment.

The bidder or proposer agrees to comply with the requirements of 2 C.F.R. Part 180, subpart C and 2 C.F.R. Part 3000, subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.

12. Mandatory Disclosures. Contractor must disclose, in a timely manner, in writing to the City all violations of Federal criminal law involving fraud, bribery, or gratuity violations potentially effecting the Federal award described in 2 C.F.R. § 200.113. Failure to make required disclosures can result in any of the remedies described in 2 C.F.R. § 200.339 Remedies for noncompliance, including suspension or debarment.

13. Byrd Anti-Lobbying Amendment. Contractors who apply or bid for an award of more than $100,000 shall file the required certification. Each tier certifies to the tier above that it will not and has not used federally appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, officer or employee of Congress, or an employee of a Member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non-federal funds that takes DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the recipient who in turn will forward the certification(s) to the federal awarding agency.

Contractors must sign and submit the “Anti-Lobbying Form and Disclosure” bid form to the City with each bid or offer exceeding $100,000.

14. Procurement of Recovered Materials. Where the purchase price of the item is greater than $10,000, or the value of the amount of items purchased in the preceding fiscal year was greater than $10,000:

In the performance of this contract, the Contractor shall make maximum use of products containing recovered materials that are EPA-designated items unless the product cannot be acquired—
Competitively within a timeframe providing for compliance with the contract performance schedule;
Meeting contract performance requirements; or
At a reasonable price. Information about this requirement, along with the list of EPAdesignated items, is available at EPA’s Comprehensive Procurement Guidelines webpage:
https://www.epa.gov/smm/comprehensive- procurement-guideline-cpg-program.

The Contractor also agrees to comply with all other applicable requirements of Section 6002 of the Solid Waste Disposal Act.

15. Prohibition on Contracting for Covered Telecommunications Equipment or Services. (1) Definitions.

As used in this clause, the terms backhaul; covered foreign country; covered telecommunications equipment or services; interconnection arrangements; roaming; substantial or essential component; and telecommunications equipment or services have the meaning as defined in FEMA Policy 405-143-1, Prohibitions on Expending FEMA Award Funds for Covered Telecommunications Equipment or Services (Interim), as used in this clause—
(2) Prohibitions.
(1) Section 889(b) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, Pub. L. No. 115-232, and 2 C.F.R. § 200.216 prohibit the head of an executive agency on or after Aug.13, 2020, from obligating or expending grant, cooperative agreement, loan, or loan guarantee funds on certain telecommunications products or from certain entities for national security reasons.

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(2) Unless an exception in paragraph (c) of this clause applies, the contractor and its subcontractors may not use grant, cooperative agreement, loan, or loan guarantee funds from the Federal Emergency Management Agency to:
(i) Procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology of any system; (ii) Enter into, extend, or renew a contract to procure or obtain any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology of any system;
(iii) Enter into, extend, or renew contracts with entities that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or (iv) Provide, as part of its performance of this contract, subcontract, or other contractual instrument, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. (3) Exceptions.
(1) This clause does not prohibit contractors from providing— (i) A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or
(ii) Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles.
(2) By necessary implication and regulation, the prohibitions also do not apply to:
(i) Covered telecommunications equipment or services that: i. Are not used as a substantial or essential component of any system; and ii. Are not used as critical technology of any system.
(ii) Other telecommunications equipment or services that are not considered covered telecommunications equipment or services.
(4) Reporting Requirements.
(1) In the event the contractor identifies covered telecommunications equipment or services used as a substantial or essential component of any system, or as critical technology as part of any system, during contract performance, or the contractor is notified of such by a subcontractor at any tier or by any other source, the contractor shall report the information in paragraph (d)(2) of this clause to the recipient or subrecipient, unless elsewhere in this contract are established procedures for reporting the information.

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(2) The Contractor shall report the following information pursuant to paragraph (d)(1) of this clause:
(i) Within one business day from the date of such identification or notification:

The contract number; the order number(s), if applicable; supplier name; supplier unique entity identifier (if known); supplier Commercial and Government Entity (CAGE) code (if known); brand; model number (original equipment manufacturer number, manufacturer part number, or wholesaler number); item description; and any readily available information about mitigation actions undertaken or recommended.
(ii) Within 10 business days of submitting the information in paragraph (d)(2)(i) of this clause: Any further available information about mitigation actions undertaken or recommended. In addition, the contractor shall describe the efforts it undertook to prevent use or submission of covered telecommunications equipment or services, and any additional efforts that will be incorporated to prevent future use or submission of covered telecommunications equipment or services.
(5) Subcontracts.

The Contractor shall insert the substance of this clause, including this paragraph (e), in all subcontracts and other contractual instruments.

16. Domestic Preference for Procurements. As appropriate, and to the extent consistent with law, the contractor should, to the greatest extent practicable, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States.

This includes, but is not limited to iron, aluminum, steel, cement, and other manufactured products.

For purposes of this clause: Produced in the United States means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States. Manufactured products mean items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.

17. Executive Order N-6-22 – Russia Sanctions. On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. Should the State or City determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The City shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the City.

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18. Access to Records. The Contractor agrees to provide the City, the pass-through entity, if applicable, the FEMA Administrator, the Comptroller General of the United States, or any of their authorized representatives access to any books, documents, papers, and records of the Contractor which are directly pertinent to this contract for the purposes of making audits, examinations, excerpts, and transcriptions.

The Contractor agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed.

The Contractor agrees to provide the FEMA Administrator or his authorized representatives access to construction or other work sites pertaining to the work being completed under the contract.

In compliance with section 1225 of the Disaster Recovery Reform Act of 2018, the City and the Contractor acknowledge and agree that no language in this contract is intended to prohibit audits or internal reviews by the FEMA Administrator or the Comptroller General of the United States.

19. Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms.
(a) The non-Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible.
(b) Affirmative steps must include:
(1) Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
(2) Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
(4) Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
(5) Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (b)(1) through (5) of this section.

20. Inflation Adjustment of Acquisition – related dollar threshold. Appendix II to Part 200— Contract Provisions for Non-Federal Entity Contracts Under Federal Awards:

DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

(a) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

21. Bid Guarantee. At the submission of the bid, the Contractor shall furnish a "bid" guarantee equivalent to ten percent of the bid price. The “bid guarantee” must consistof a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

22. Performance Bond. At the time of execution of the Contract, the Contractor shall furnish a "faithful performance" bond in the sum of one hundred percent (100%) of the Contract price to guarantee the performance of the Contract.

23. Payment Bond. At the time of execution of the Contract, the Contractor shall furnish a "payment" bond in the sum of one hundred percent (100%) of the Contract price to assure payment as required by law of all persons supplying labor and material in execution of the work provided for in the contract.

DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

B. FEDERAL WAGE DETERMINATIONS
This is a federally assisted project and compliance with Davis-Bacon Act as supplemented by the Department of Labor regulations will be enforced. If the State and Federal wage rates are applicable the higher of the two will be used.

The Federal Labor Standards Provisions and the Federal Wage Determination are a part of the contract and compliance will be enforced.

Any Subcontracts resulting from this original contract must contain the above language and shall incorporate a copy of the Federal Labor Standards provisions and the Federal Wage Determinations. Incorporation by reference is not acceptable.

This Section contains the Federal Wage Determinations which were current at the time the contract documents were published and shall be used for the life of this project. However, the wage determinations are subject to modifications in order to keep them current. If such modifications occur 10 days prior to bid opening then the new determination will prevail for the life of the contract. The Contractor shall be responsible to contact the City to determine if a new wage determination has been issued and to apply the new determination to his bid.

Current federal wage rates for California counties can be found at the following website:
https://sam.gov/content/wage-determinations
Current federal wage rates for San Luis Obispo County (Building, Heavy and Highway construction) can be found at the following website:
https://sam.gov/wage-determination/CA20230012/4
DocuSign Envelope ID: A35E17B2-5A0A-4DD6-82A3-60EECFF99CDA

Item 6d
Department: Administration
Cost Center: 1021
For Agenda of: 7/18/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: SELECTION OF VOTING DELEGATE AND ALTERNATES FOR THE 2023

LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE

RECOMMENDATION
Appoint Council Member Emily Francis as the Voting Delegate and Council Member Michelle Shoresman and Mayor Erica A. Stewart as Alternate Voting Delegates to vote on the City’s behalf at the Annual Business Meeting of the League of California Cities on Friday, September 22, 2023.

DISCUSSION
The League of Cal Cities Annual Conference will be held September 19 – 22, 2023 in Sacramento, California. An important component of the Annual Conference is the Annual Business Meeting scheduled for 8:30 a.m. on Friday, September 22, 2023. At this meeting, the League membership will consider and act on resolutions that establish League policy. To vote at the Annual Business Meeting, the City Council must designate a voting delegate. Council may also appoint up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity.

Policy Context
Per the League of California Cities bylaws, each member city has a right to cast one vote on matters pertaining to League policy. A city’s voting delegate, and up to two alternates, must be designated by the City Council either by submitting a Voting Delegate Form signed by the City Clerk affirming that the names provided are those selected by the City Council or by adopting a Resolution that reflects the council action.

Public Engagement
This is an administrative item, so no formal public engagement was done. Members of the public may provide comments regarding this action either before the City Council meeting or at the meeting.

Item 6d

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: 2023-24
Funding Identified:

Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $8,500 $ $
State
Federal
Fees
Other:

Total $8,500 $ $ $
The necessary financial resources have been included in the 2023-2024 budget for Council Members’ attendance at the League of California Cities Annual Conference.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: July 18, 2023
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6E – AWARD A CONSTRUCTION CONTRACT FOR THE NORTH BROAD STREET NEIGHBORHOOD PARK, SPEC. NUMBER 91683
Staff received the following questions, regarding the North Broad Street Neighborhood Park report, specifically centered around the budget breakdown in the fiscal impact section of the report. The questions are below with staff’s response shown in italics:
1) The Fiscal Impact table shows that $1.675M is needed with contingencies, materials testing, construction management, and printing. Why is the request not for that amount and only up to the $1.4M?
On February 7, 2023, Council approved the advertisement of the North Broad Street Neighborhood Park project plans and specials. Council also approved an appropriation of $200,000 from the Capital Projects Reserves Fund to the project account, which has an existing balance of $725,283. Therefore, the current available funding for the project is $925,283. This report is requesting an additional $750,000 from the Parkland Development Fund for a total funding amount of $1,675,283. 2) From the attached table, it’s seen that $725K and $200K have already been approved, but I don’t understand the $1,089,166 in the third column in the row “Current Project Balance. Can you explain?
The third column in the project table contains budgetary information regarding the Parks and Recreation General Plan account, whose funding would be partially used to fund the park. The project account has an existing balance of $1,089,166, of which $750,000 is recommended for reallocation to the North Broad Street Neighborhood Park project to support the total project cost. The remaining balance in the account will be about $340,000, which will be used in the Laguna Lake improvement project. 3) With the mention of the need to scale back the Laguna improvements, is the request for fully funding this park at the expense of improvements to Laguna? The Laguna Lake Dog Park Project is a subproject of the Parks and Recreation General Plan Implementation Project. The recommendation of this report would reallocate funding from the Laguna Lake Dog Park Project to the North Broad Street

Item 6e – Award a construction contract for the North Broad Street Neighborhood Park Page 2 Neighborhood Park Project since the Park project is ready to construct, and the Dog Park is still in the early design phase of project delivery. Staff currently plans to move the Laguna Lake Dog Park through the design phase of project delivery and when ready to construct, staff will bring this project forward for Council consideration with a funding plan.

Item 6e
Department: Public Works
Cost Center: 5005
For Agenda of: 7/11/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Nathan Garcia Nava, Engineer I
SUBJECT: AWARD A CONSTRUCTION CONTRACT FOR THE NORTH BROAD STREET NEIGHBORHOOD PARK, SPECIFICATION NUMBER 91683

RECOMMENDATION

1. Award a Construction Contract to Brough Construction, Inc. in the amount of $1,441,117 for the North Broad Street Neighborhood Park Project, Specification Number 91683; and

2. Approve a Budget Transfer of $750,000 from the Parks and Recreation General Plan Implementation project account (2000526-01) to the North Broad Street Neighborhood Park project account (2091683)

POLICY CONTEXT
On July 6, 2021, City Council approved the Parks and Recreation Blueprint for the Future 2021-41: Parks and Recreation Plan and General Plan which lists the North Broad Street Neighborhood Park as one of the projects that will be implemented.

On February 7, 2023, City Council authorized the invitation of bids for the North Broad Street Neighborhood Park project. Award of the project contract requires consideration and approval by Council if the construction bids are higher than the engineer’s estimate.

DISCUSSION
Background
Implementation of a new neighborhood park in the North Broad Street area was initiated by City Council as a part of the 2018 Financial Plan Budget Supplement. The project converts an existing community garden into a neighborhood park at 533 Broad Street and features raised garden planters, ADA pathways, open turf space, playground equipment, a shade structure, a hydration station, and pathway lights.

On February 7, 2023, City Council authorized the invitation of bids for the North Broad Street Neighborhood Park project. On April 27, 2023, a bid opening was held where no bids were received (Attachment A). Based on input from contractors that were interested in the project but did not bid, staff broadened the contractor qualification requirements and readvertised for bids.

Item 6e
The amended bid package did not modify the City’s contract terms or lower the standards for contractor qualification; it only broadened one of the required references, from experience constructing a public park or playground to experience with landscaping or irrigation installation, which better fit the scope of work.

The project went out to bid a second time on May 4, 2023, and on May 25, 2023, a bid opening was held where one bid was received (Attachment B). The bid was submitted by Brough Construction, Inc. and came in at a price of $1,441,117 which was well over the engineer’s estimate of $775,000.

Table 1: Bid results for bid opening on May 25, 2023.

Engineer’s Estimate Brough Construction, Inc.
$775,000 $1,441,117
The bid price may be attributed to overall construction cost escalation and the lack of bid competitiveness as demonstrated by no initial bids received after the first advertisement and only one bid received with the second advertisement. Without two bids to compare, it is not clear if Brough’s bid represents an economical price for the work or if the price is inflated.

Although the bid from Brough Construction, Inc. was over the engineer’s estimate, staff is recommending award of the contract (Attachment C) and transferring $750,000 to the project account from the Parks and Recreation General Plan Implementation project account to fund the project as described in the Fiscal impact section of this report. Staff could choose to award the project at a later date in hopes of getting lower bids but there is no certainty that lower bids will be received and there is a risk that bids will escalate.

Previous Council or Advisory Body Action
On November 6, 2019, the Parks and Recreation Commission conducted a public hearing for final review of the proposed North Broad Street Neighborhood Park layout.

On January 27, 2021, the Planning Commission reviewed the project design and considered all aspects of the project entitlement components including the General Plan Amendment, Rezone, parking reduction, improvements within City right-of-way, and associated environmental review Initial Study-Mitigated Negative Declaration (IS-MND).

On March 2, 2021, the City Council reviewed and approved the General Plan Amendment and Rezone for the neighborhood park including adoption of the Final Initial Study Mitigated Negative Declaration(IS-MND).

On July 6, 2021, City Council approved the Parks and Recreation Blueprint for the Future:
2021-2041 that supersedes the 2001 Parks and Recreation Master Plan.

On February 7, 2023, City Council authorized the invitation of bids for the North Broad Street Neighborhood Park project.

On June 6, 2023, Council adopted its 2023-25 Financial Plan.

Item 6e
Public Engagement
During the initial design process, several public outreach events were conducted to gather public input on which potential recreation amenities had the most public interest. The City used concept boards to allow participants to indicate their preference and concept cards were provided to allow participants to include features that were not included on the boards. Additionally, during the environmental review process, public outreach was done during the circulation of the Initial Study Mitigated Negative Declaration (IS-MND).

CONCURRENCE
This project has been reviewed by various City Departments and divisions such as Parks and Recreation, planning, Engineering, Transportation, Building, City Arborist, Natural Resources, and Police. A building permit will be obtained prior to the start of construction and will be issued to the contractor following the award of a construction contract. All comments and conditions associated with the entitlement and building, and safety reviews of the project have been incorporated into the final design of the project.

ENVIRONMENTAL REVIEW
An Initial Study (IS) was prepared in accordance with the California Environmental Quality Act (CEQA) that led to the adoption of a Mitigated Negative Declaration (MND) on March 2, 2021. The IS-MND introduced mitigation measures that were incorporated into the project design to reduce the potential environmental effects.

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

Funding Sources Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund: Capital
Outlay Fund LRM $118,533.81 $0 $0 $0
Other: Parkland In-Lieu
Fee (Quimby Fund) $606,748.84 $0 $0 $0
Other: Capital Projects
Reserve Fund Fiscal Year
2022-23
$200,000 $0 $0 $0
Other: 1000526 Project
account $1,089,166.15 $750,000 $339,166.151 $0
Total $2,014,448.80 $750,000 $339,166.15 $0
1 The Parks and Recreation General Implementation project had a balance of $289,166.15 at the end of FY 2022-23 and Council added an additional $800,000 to the project via adoption of the 2023-25 Financial Plan.

Item 6e
The project was budgeted for design during the 2018-19 Supplemental Budget with additional funding allocated in the 2021-23 Financial Plan. With authorization to advertise the project, staff received approval from Council to appropriate $200,000 from the Capital Projects Reserve Fund to support the anticipated rise in construction cost that was unprecedented during the initial budgeting of the project. The balance of the Capital Reserve Fund after the approval of the request was $218,708. The Capital Projects Reserve Fund received an allocation of $4,000,000 with the approval of the 2023-25 Financial Plan which was appropriated on July 1, 2023.

In order to award the contract, staff is requesting an additional $750,000 be transferred to the project from the Parks and Recreation General Plan Implementation Project account (10000526-01), which consists of Parkland Development funds. The Parkland Development Fund provides budget for maintenance, improvement, or development of existing or future City Parks. The 2023-25 Financial plan allocates $800,000 in Parkland Development Funding to the Parks and Recreation General Plan Implementation Project.

This project is intended to deliver parks projects identified in the Parks and Recreation Blueprint for the Future plan, which was adopted by Council in July 2021. The North Broad Street Neighborhood Park was identified in the plan (page 132) as a near-term project meaning it is expected to be completed within the next five years.

It should be noted that construction of the North Broad Street Neighborhood Park will increase operating budget costs in the Parks Maintenance Program. Those costs are estimated at $32,000 a year and are not currently funded in the 2023-25 Financial Plan.

Funding for maintenance operations will be requested in future budgets to support this park.

The $800,000 in Parkland Development Funding in the Parks and Recreation General Plan Implementation Project was planned to be used for implementation of the Laguna Lake Park Improvements, and specifically to support the upgrades to the Laguna Lake Dog Park Project in FY 2023-24. The Laguna Lake Dog Park Project has been reviewed by the Parks and Recreation Commission with subsequent meetings shifting focus to public input on design components for the park. The project takes the existing off-leash dog area in Laguna Lake and revitalize it with possible amenities such as separated dog areas, fenced perimeter, additional seating, double gated entry, and inclusion of hydration stations with dog bowl option. During review of the 50% plans and estimate, staff found that the project is over budget of the allocated $800,000 for construction, and amenities need to be scaled back or phased in to accommodate funding constraints. It is estimated that construction will begin in Spring 2024, and at that time staff will provide Council with a funding plan for implementation to be approved for the Laguna Lake Dog Park.

Item 6e
North Broad Street
Park account
(2091683)
Capital Reserve
Fiscal Year 2022-
23 Parks and Recreation
General Plan
Implementation account
(1000526-01)
Parkland In-Lieu
Fee Fund
Capital Outlay
Fund
Capital Outlay Fund -
LRM
Bid total $725,283 $200,000 $515,834 $1,441,117
Contingencies (17%) $0 $0 $216,167 $216,167
Total Construction
Estimate $725,283 $200,000 $732,001 $1,657,284
Materials Testing: $0 $0 $10,500 $10,500
Construction Management $0 $0 $7,000 $7,000
Printing: $0 $0 $499 $499
Total Project Estimate $725,283 $200,000 $750,000 $1,675,283 Current Project Balance: $725,283 $0 $1,089,166 $1,814,449 Previously Requested
Fund Balance $0 $200,000 $0 $200,000
New Requested Funding $0 $0 $750,000 $750,000
Funds Remaining $0 $0 $339,166 $0
North Broad Street Neighborhood Park, Specification No. 91863 Project Total
Costs
* $200,000 was appropriated from the Fiscal year 2022-23 Capital Project Reserve Fund on February 7, 2023 as part of the item 6d.

ALTERNATIVES

1. Deny the award of the construction contract and defer the project for readvertisement in the spring of 2024. Council may choose to not award the contract at this time, reject all bids, and defer the project for readvertisement in Spring 2024. Staff does not recommend this option as it would further delay construction of this approved project from the 2017-19 and 2019-21 Financial Plans.

The risk as well is that project costs continue to rise and the City receives bids higher than the above from Brough.

2. Deny the use of Quimby funds and approve the use of the Capital Reserves fund. Council can deny the use of the Quimby funds from The Parks and Recreation Master Plan Implementation Project account and opt instead to use the Capital Project Reserve Fund. Staff does not recommend this option as the reserves fund supplements projects in the general fund and using those funds would reduce available reserves. Additionally, the Quimby fund is intended to support Park

Item 6e
projects and has sufficient funding available within the existing Parks and Recreation Plan Implementation Project.

3. Deny the award of the construction contract and cancel or defer the project to a future budget cycle. City Council may choose to not award the contract, reject all bids, cancel the project entirely, or defer the project for a future budget cycle.

Staff does not recommend this option because the project which was identified as a near term project in the Council approved Parks and Recreation Blueprint for the Future.

ATTACHMENTS
A - Bid Results from the 1
st Advertisement
B - Bid Results from the 2
nd Advertisement
C - Draft Construction Contract with Brough Construction, Inc.

Bid Opening: 04/27/23
Item # Item Description Unit of Measure Estimated Quanity Item price Total 1 Traffic Control Systems LS 1 --- ---
2 Caltrans Encroachment Permit Compliance LS 1 --- ---
3 Temporary Erosion Control LS 1 --- ---
4 Water Pollution Control LS 1 --- ---
5 Cap and Abandon 3/4" Service Lateral and Remove
Meter (City Std 6050) LS 1 --- ---
6 Remove Hose Bib, Cap and Abandon Supply Line
(City Std 6050) LS 1 --- ---
7 Abandon Existing Sewer Laterals (City Std 6050) – 4
total LS 1 --- ---
8 Sawcut and Remove Concrete Sidewalk, Apron, and
Driveway SQFT 551 --- ---
9 Sawcut and Remove Concrete Curb & Gutter LF 14 --- --- 10 Sawcut and Remove Asphalt Concrete SQFT 28 --- ---
11 Remove Existing Sidewalk Guardrail LS 1 --- ---
12 Tree Protection LS 1 --- ---
13 Site Clearing and Grubbing LS 1 --- ---
14 Project Site Excavation CY 400 --- ---
15 Native Material Backfill CY 145 --- ---
16 Imported Backfill CY 245 --- ---
17 1" Water Service and Meter (City Std 6210) LS 1 --- --- 18 NDS 9" Catch Basin with Atrium Grate EA 4 --- ---
19 NDS 9" Catch Basin with Square Grate EA 1 --- ---
20 6" PVC Storm Drain Pipe LF 150 --- ---
21 Flared End Outlet and Rip-Rap Pad LS 1 --- ---
22 Class II Aggregate Base (under concrete areas) CY 65 --- --- 23 Asphalt Pavement Repair (Surface Restoration) (City
Std 7110) (10-inch minimum thickness) SQFT 28 --- ---
24 Minor Concrete - Curb & Gutter (City Std 4030) LF 14 --- --- 25 Minor Concrete - 6" Thick Reinforced Concrete Paving and Thickened Edge (where shown) (Modified City Std
4110)
SQFT 2205 --- ---
26 Minor Concrete - 4" Thick Reinforced Concrete Walk
and Thickened Edge (where shown) (Modified City Std
4110)
SQFT 2640 --- ---
27 Minor Concrete - 4" Thick Unreinforced Concrete
Sidewalk (City Std 4110) SQFT 395 --- ---
28 Minor Concrete - 8" Wide Reinforced Concrete Mow
Curb (Modified City Std 8710) LF 210 --- ---
29 Minor Concrete - 6" Wide Reinforced Concrete Mow
Curb (Modified City Std 8710) LF 162 --- ---
30 Minor Concrete - Accessible Ramped Edge at Play
Area LF 58 --- ---
31 Minor Concrete - Accessible Safety Surface Ramped
Edge at Play Area LF 25 --- ---
32 Sidewalk Guardrail (Modified City Std 4240) LF 20 --- --- 33 42" High Steel Pedestrian Barrier Fence with Gate
and Lock LF 118 --- ---
34 36" High Steel Pedestrian Barrier Fence LF 191 --- --- 35 6' High Steel Security Barrier Fence LF 384 --- ---
36 Paint Curb Red LF 187 --- ---
37 Roadside Sign (No U-Turn) (City Std 7210) EA 1 --- --- 38 Roadside Sign (No Parking) (City Std 7210) EA 1 --- --- 39 Park Signage LS 1 --- ---
40 Entry Trellis w/ Custom Signage LS 1 --- ---
41 Garden Walk (Granite, Base, and Fabric) SQFT 2061 --- --- 42 Engineered Wood Fiber Safety Surface, Felt, and
Drain SQFT 811 --- ---
43 Spectraturf Safety Surfacing (including base materials, felt and drain) SQFT 150 --- ---
44 Bike Rack EA 2 --- ---
45 Two-Story Shed "Little Free Library" LS 1 --- ---
46 Compost Bin EA 5 --- ---
47 Hydration Station and Percolation Well LS 1 --- ---
48 Tri Net Climber EA 1 --- ---
49 Kid Spinner EA 1 --- ---
50 Shade Sail Structure EA 1 --- ---
51 Tree Grate (Modified City Std 8130) EA 2 --- ---
52 8' Picnic Table EA 2 --- ---
53 Round Patio Table (3-chair) EA 2 --- ---
54 Round Patio Table (4-chair) EA 1 --- ---
55 City Standard Bench and Concrete Pad (were shown)
(Modified City Std 9040) EA 8 --- ---
56 Trash Container and Concrete Pad (Where Shown)
(Modified City Std 9040) EA 6 --- ---
57 Custom Precast Concrete Cornhole Boards EA 4 --- --- 58 Landscape Boulders LS 1 --- ---
59 Potting Bench EA 2 --- ---
60 Dog Waste Station EA 1 --- ---
61 4' x 8' Raised Garden Planter EA 12 --- ---
62 3' x 4' ADA Garden Planter EA 6 --- ---
63 Irrigation System LS 1 --- ---
64 Landscaping LS 1 --- ---
65 Plant Establishment Work Month 12 --- ---
66 Path Lights (City Std 7905) EA 4 --- ---
67 Combination Path Light and Camera Assembly
(Modified City Std 7905) EA 1 --- ---
68 PGE Coordination LS 1 --- ---
69 Site Electrical LS 1 --- ---
70 Archeological Monitoring Plan Compliance LS 1 --- --- Total Bid Amount $775,000.00
*** THERE WERE NO BID PACKAGES SUBMITTED FOR THIS PROJECT*** Engineer's Estimate
NORTH BROAD STREET NEIGHBORHOOD PARK, SPECIFICATION NO. 91683

Bid Opening: 04/27/23
Item # Item Description Unit of Measure Estimated Quanity Item price Total 1 Traffic Control Systems LS 1 --- $22,000.00
2 Caltrans Encroachment Permit Compliance LS 1 --- $3,000.00 3 Temporary Erosion Control LS 1 --- $25,000.00
4 Water Pollution Control LS 1 --- $9,800.00
5 Cap and Abandon 3/4" Service Lateral and Remove
Meter (City Std 6050) LS 1 --- $10,000.00
6 Remove Hose Bib, Cap and Abandon Supply Line
(City Std 6050) LS 1 --- $2,300.00
7 Abandon Existing Sewer Laterals (City Std 6050) – 4
total LS 1 --- $16,000.00
8 Sawcut and Remove Concrete Sidewalk, Apron, and
Driveway SQFT 551 $10.00 $5,510.00
9 Sawcut and Remove Concrete Curb & Gutter LF 14 $95.00 $1,330.00 10 Sawcut and Remove Asphalt Concrete SQFT 28 $47.00 $1,316.00 11 Remove Existing Sidewalk Guardrail LS 1 --- $1,000.00 12 Tree Protection LS 1 --- $7,000.00
13 Site Clearing and Grubbing LS 1 --- $14,000.00
14 Project Site Excavation CY 400 $160.00 $64,000.00
15 Native Material Backfill CY 145 $78.00 $11,310.00
16 Imported Backfill CY 245 $150.00 $36,750.00
17 1" Water Service and Meter (City Std 6210) LS 1 --- $13,000.00 18 NDS 9" Catch Basin with Atrium Grate EA 4 $1,400.00 $5,600.00 19 NDS 9" Catch Basin with Square Grate EA 1 $1,400.00 $1,400.00 20 6" PVC Storm Drain Pipe LF 150 $50.00 $7,500.00
21 Flared End Outlet and Rip-Rap Pad LS 1 --- $4,000.00 22 Class II Aggregate Base (under concrete areas) CY 65 $375.00 $24,375.00 23 Asphalt Pavement Repair (Surface Restoration) (City
Std 7110) (10-inch minimum thickness) SQFT 28 $140.00 $3,920.00 24 Minor Concrete - Curb & Gutter (City Std 4030) LF 14 $160.00 $2,240.00 25 Minor Concrete - 6" Thick Reinforced Concrete
Paving and Thickened Edge (where shown) (Modified
City Std 4110)
SQFT 2205 $25.00 $55,125.00
26 Minor Concrete - 4" Thick Reinforced Concrete Walk
and Thickened Edge (where shown) (Modified City
Std 4110)
SQFT 2640 $14.00 $36,960.00
27 Minor Concrete - 4" Thick Unreinforced Concrete
Sidewalk (City Std 4110) SQFT 395 $14.00 $5,530.00
28 Minor Concrete - 8" Wide Reinforced Concrete Mow
Curb (Modified City Std 8710) LF 210 $48.00 $10,080.00
29 Minor Concrete - 6" Wide Reinforced Concrete Mow
Curb (Modified City Std 8710) LF 162 $47.00 $7,614.00
30 Minor Concrete - Accessible Ramped Edge at Play
Area LF 58 $120.00 $6,960.00
31 Minor Concrete - Accessible Safety Surface Ramped
Edge at Play Area LF 25 $120.00 $3,000.00
32 Sidewalk Guardrail (Modified City Std 4240) LF 20 $475.00 $9,500.00 33 42" High Steel Pedestrian Barrier Fence with Gate
and Lock LF 118 $110.00 $12,980.00
34 36" High Steel Pedestrian Barrier Fence LF 191 $105.00 $20,055.00 35 6' High Steel Security Barrier Fence LF 384 $120.00 $46,080.00 36 Paint Curb Red LF 187 $7.00 $1,309.00
37 Roadside Sign (No U-Turn) (City Std 7210) EA 1 $500.00 $500.00 38 Roadside Sign (No Parking) (City Std 7210) EA 1 $500.00 $500.00 39 Park Signage LS 1 --- $4,000.00
40 Entry Trellis w/ Custom Signage LS 1 --- $16,000.00
41 Garden Walk (Granite, Base, and Fabric) SQFT 2061 $16.00 $32,976.00 42 Engineered Wood Fiber Safety Surface, Felt, and
Drain SQFT 811 $27.00 $21,897.00
43 Spectraturf Safety Surfacing (including base
materials, felt and drain) SQFT 150 $345.00 $51,750.00
44 Bike Rack EA 2 $1,900.00 $3,800.00
45 Two-Story Shed "Little Free Library" LS 1 --- $4,500.00 46 Compost Bin EA 5 $550.00 $2,750.00
47 Hydration Station and Percolation Well LS 1 --- $16,000.00 48 Tri Net Climber EA 1 $36,000.00 $36,000.00
49 Kid Spinner EA 1 $13,000.00 $13,000.00
50 Shade Sail Structure EA 1 $50,000.00 $50,000.00
51 Tree Grate (Modified City Std 8130) EA 2 $2,500.00 $5,000.00 52 8' Picnic Table EA 2 $6,500.00 $13,000.00
53 Round Patio Table (3-chair) EA 2 $5,800.00 $11,600.00 54 Round Patio Table (4-chair) EA 1 $5,900.00 $5,900.00 55 City Standard Bench and Concrete Pad (were shown)
(Modified City Std 9040) EA 8 $6,500.00 $52,000.00
56 Trash Container and Concrete Pad (Where Shown)
(Modified City Std 9040) EA 6 $6,400.00 $38,400.00
57 Custom Precast Concrete Cornhole Boards EA 4 $3,500.00 $14,000.00 58 Landscape Boulders LS 1 --- $19,000.00
59 Potting Bench EA 2 $1,400.00 $2,800.00
60 Dog Waste Station EA 1 $2,000.00 $2,000.00
61 4' x 8' Raised Garden Planter EA 12 $2,800.00 $33,600.00 62 3' x 4' ADA Garden Planter EA 6 $3,000.00 $18,000.00 63 Irrigation System LS 1 --- $125,000.00
64 Landscaping LS 1 --- $144,000.00
65 Plant Establishment Work Month 12 $3,400.00 $40,800.00 66 Path Lights (City Std 7905) EA 4 $10,000.00 $40,000.00 67 Combination Path Light and Camera Assembly
(Modified City Std 7905) EA 1 $24,000.00 $24,000.00
68 PGE Coordination LS 1 --- $13,000.00
69 Site Electrical LS 1 --- $70,000.00
70 Archeological Monitoring Plan Compliance LS 1 --- $7,800.00 $1,441,117.00
NORTH BROAD STREET NEIGHBORHOOD PARK, SPECIFICATION NO. 91683 Total Bid Amount
Brough Construction, Inc.

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

WITNESSETH:

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

ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of
NORTH BROAD STREET NEIGHBORHOOD PARK, SPEC NO. 91683
in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.

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

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

Item
No.

Item
Description
Unit of
Measure
Estimated
Quantity
Item Price
(in figures)
Total
(in figures)
1 Traffic Control Systems LS 1 --- $22,000.00
2 Caltrans Encroachment Permit LS 1 --- $3,000.00
3 Temporary Erosion Control LS 1 --- $25,000.00
4 Water Pollution Control LS 1 --- $9,800.00
5 Cap and Abandon 3/4" Service Lateral
and Remove Meter (City Std 6050) EA 1 --- $10,000.00
6 Remove Hose Bib, Cap and Abandon
Supply Line (City Std 6050) EA 1 --- $2,300.00
7 Abandon Existing Sewer Lateral (City Std
6050) EA 1 --- $16,000.00
8 Sawcut and Remove Concrete Sidewalk,
Apron, and Driveway SF 551 $10.00 $5,510.00
9 Sawcut and Remove Concrete Curb &
Gutter LF 14 $95.00 $1,330.00
10 Sawcut and Remove Asphalt Concrete SF 28 $47.00 $1,316.00 DocuSign Envelope ID: 457C8153-D483-4C3B-BEB2-FA0CE3EC6ECA

11 Remove Existing Sidewalk Guardrail LS 1 --- $1,000.00 12 Tree Protection LS 1 --- $7,000.00
13 Site Clearing and Grubbing LS 1 --- $14,000.00
14 Project Site Excavation CY 400 $160.00 $64,000.00
15 Native Material Backfill CY 145 $78.00 $11,310.00
16 Imported Backfill CY 245 $150.00 $36,750.00
17 1" Water Service and Meter (City Std
6210) EA 1 --- $13,000.00
18 NDS 9" Catch Basin with Atrium Grate EA 4 $1,400.00 $5,600.00 19 NDS 9" Catch Basin with Square Grate EA 1 --- $1,400.00 20 6" PVC Storm Drainpipe LF 150 $50.00 $7,500.00
21 Flared End Outlet and Rip-Rap Pad LS 1 --- $4,000.00 22 Class II Aggregate Base (under concrete
areas) CY 65 $375.00 $24,375.00
23 Asphalt Pavement Repair (Surface
Restoration) (City Std 4110) (10-inch
minimum thickness)
SQFT 28 $140.00 $3,920.00
24 Minor Concrete - Curb & Gutter (City Std
4030) LF 14 $160.00 $2,240.00
25 Minor Concrete - 6" Thick Reinforced
Concrete Paving and Thickened Edge
(where shown) (Modified City Std 4110)
SQFT 2205 $25.00 $55,125.00
26 Minor Concrete - 4" Thick Reinforced
Concrete Walk and Thickened Edge
(where shown) (Modified City Std 4110)
SQFT 2640 $14.00 $36,960.00
27 Minor Concrete - 4" Thick Unreinforced
Concrete Sidewalk (City Std 4110) SQFT 395 $14.00 $5,530.00 28 Minor Concrete - 8" Wide Reinforced
Concrete Mow Curb (Modified City Std
8710)
LF 210 $48.00 $10,080.00
29 Minor Concrete - 6" Wide Reinforced
Concrete Mow Curb (Modified City Std
8710)
LF 162 $47.00 $7,614.00
30 Minor Concrete - Accessible Ramped
Edge at Play Area LF 58 $120.00 $6,960.00
31 Minor Concrete - Accessible Safety
Surface Ramped Edge at Play Area LF 25 $120.00 $3,000.00 32 Sidewalk Guardrail (Modified City Std
4240) LF 20 $475.00 $9,500.00
33 42" High Steel Pedestrian Barrier Fence
with Gate and Lock LF 118 $110.00 $12,980.00
34 36" High Steel Pedestrian Barrier Fence LF 191 $105.00 $20,055.00 35 6' High Steel Security Barrier Fence LF 384 $120.00 $46,080.00 36 Paint Curb Red LF 187 $7.00 $1,309.00
37 Roadside Sign (No U-Turn) (City Std
7210) EA 1 --- $500.00
38 Roadside Sign (No Parking) (City Std
7210) LS 1 --- $500.00
39 Park Signage LS 1 --- $4,000.00
DocuSign Envelope ID: 457C8153-D483-4C3B-BEB2-FA0CE3EC6ECA

40 Entry Trellis w/Custom Signage LS 1 --- $16,000.00
41 Garden Walk (Granite, Base, and Fabric) SQFT 2061 $16.00 $32,976.00 42 Engineered Wood Fiber Safety Surface,
Felt, and Drain SQFT 811 $27.00 $21,897.00
43 Spectraturf Safety Surfacing (including
base materials, felt and drain) SQFT 150 $345.00 $51,750.00 44 Bike Rack EA 2 $1,900.00 $3,800.00
45 Two-Story Shed "Little Free Library" LS 1 --- $4,500.00 46 Compost Bin EA 5 $550.00 $2,750.00
47 Hydration Station and Percolation Well LS 1 --- $16,000.00 48 Tri-Net Climber EA 1 --- $36,000.00
49 Kid Spinner EA 1 --- $13,000.00
50 Shade Sail Structure EA 1 --- $50,000.00
51 Tree Grate (Modified City Std 8130) EA 2 $2,500.00 $5,000.00 52 8' Picnic Table EA 2 $6,500.00 $13,000.00
53 Round Patio Table (3-chair) EA 2 $5,800.00 $11,600.00 54 Round Patio Table (4-chair) EA 1 --- $5,900.00
55 City Standard Bench and Concrete Pad
(where shown) (Modified City Std 9040) EA 8 $6,500.00 $52,000.00 56 Trash Container and Concrete Pad
(where shown) (Modified City Std 9040) EA 6 $6,400.00 $38,400.00 57 Custom Precast Concrete Cornhole
Boards EA 4 $3,500.00 $14,000.00
58 Landscape Boulders LS 1 --- $19,000.00
59 Potting Bench EA 2 $1,400.00 $2,800.00
60 Dog Waste Station EA 1 --- $2,000.00
61 4' x 8' Raised Garden Planter EA 12 $2,800.00 $33,600.00 62 3' x 4' ADA Garden Planter EA 6 $3,000.00 $18,000.00 63 Irrigation System LS 1 --- $125,000.00
64 Landscaping LS 1 --- $144,000.00
65 Plant Establishment Work Month 12 $3,400.00 $40,800.00 66 Path Lights (City Std 7905) EA 4 $10,000.00 $40,000.00 67 Combination Path Light and Camera
Assembly (Modified City Std 7905) EA 1 --- $24,000.00
68 PGE Coordination LS 1 --- $13,000.00
69 Site Electrical LS 1 --- $70,000.00
70 Archeological Monitoring Plan
Compliance LS 1 --- $7,800.00
BID TOTAL: $ 1,441,117.00
DocuSign Envelope ID: 457C8153-D483-4C3B-BEB2-FA0CE3EC6ECA

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

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

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

1. Notice to Bidders and Information for Bidders

2. Standard Specifications and Engineering Standards

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

4. Caltrans Standard Specifications and Standard Plans 2015

5. Accepted Bid and Bid Bond

6. List of Subcontractors

7. Public Contract Code Sections 10285.1 Statement

8. Public Contract Code Section 10162 Questionnaire

9. Public Contract Code Section 10232 Statement

10.Labor Code Section 1725.5 Statements

11.Bidder Acknowledgements

12.Qualifications

13.Non-collusion Declaration

14.Agreement and Bonds

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

DocuSign Envelope ID: 457C8153-D483-4C3B-BEB2-FA0CE3EC6ECA

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

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

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

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

ATTEST:
_______________________________
Teresa Purrington, City Clerk

CITY OF SAN LUIS OBISPO
A Municipal Corporation
___________________________________
Erica A. Stewart, Mayor
APPROVED AS TO FORM CONTRACTOR:

BROUGH CONSTRUCTION, INC.
________________________________ ___________________________________ J. Christine Dietrick
City Attorney
Jeffrey L. Brough
President
____________________________________
Heather Brough
Chief Financial Officer
DocuSign Envelope ID: 457C8153-D483-4C3B-BEB2-FA0CE3EC6ECA

Item 6f
Department: Utilities
Cost Center: 6003
For Agenda of: 7/18/2023
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Mychal Boerman, Deputy Director – Water
Shawna Scott, Special Projects Manager
SUBJECT: AUTHORIZE FUNDING FOR THE PREPARATION OF THE WATER

TREATMENT PLANT FACILITY INFRASTRUCTURE RENEWAL

STRATEGY PLAN

RECOMMENDATION

1. Authorize the City Manager to award the contract for the Project if the bid is within available project funding of $451,111; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing Water Fund Unassigned Working Capital for preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan” in the amount of $301,111.

REPORT-IN-BRIEF
The City’s Water Treatment Plant (WTP) does not currently have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure; therefore, preparation of a plan was included as a capital project in the City’s 2021-23 Financial Plan. The original budget estimate for the Project was $150,000 based on a simplified scope of work limited to an audit of existing aging infrastructure and incorporation of the findings into a ten-year capital project prioritization and renewal strategy. In addition, the original 2021 budget was estimated prior to major inflationrelated wage and price increases that the City has been experiencing over the past year.

This will be the first plan for this essential facility, which presented challenges to more accurately identify a realistic scope and budget estimate that would provide the best value for the City and current and future water customers.

Following City Council authorization on January 17, 2023, staff released a Request for Proposals (RFP) for the project. Upon review of the consultant submittals in response to the RFP, it was clear that the scope recommended by the consultants was based on their substantial experience with similar work efforts in water treatment plant asset review, assessment, and facility planning. This report includes a summary of the changes to the project scope, staff’s assessment of the value to be gained with a holistic and strategic plan, and potential alternative actions, such that the City Council can make an informed decision regarding the recommended funding request.

Item 6f

POLICY CONTEXT
The Project supports Major City Goals including the Economic Recovery, Resiliency, and Fiscal Sustainability and Climate Action, Open Space, and Sustainable Transportation goals because it will provide the analysis, data, and recommendations supporting ongoing and future investments in maintaining critical infrastructure, ensuring adequate treatment plant capacity to support existing and future development, and providing resiliency and redundancy required due to the impacts of climate change.

The Project is consistent with the City 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
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. It was later upgraded to treat up to 11.5 mgd in 1977 and again in 1994 to treat up to 16 mgd. 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 15 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 budgeting. In addition to looking solely at infrastructure replacement, the recommended scope of the Project would also include a holistic look at water quality, automation, schedules and staffing alternatives, climate change, disaster resiliency, and changing regulatory considerations.

The purpose of the Project is to develop a comprehensive Infrastructure Renewal Strategy for the City’s WTP. The purpose of such a plan will be to identify and prioritize WTP maintenance projects and integrate this strategy into the long-term Capital Improvement Plan (CIP). The Project was included in the 2021-23 Financial Plan and 2021-23 Financial Plan Supplement, with an identified budget of $150,000. On January 17, 2023, the Project was included on the City Council agenda and the City Council took the following actions to move the project forward:

Item 6f

1. Approved the Request for Proposals (RFP) for the preparation of the Project and authorized staff to advertise the Project for proposals and bids; and

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

Following Council’s authorization, staff released the RFP on February 10, 2023 and conducted a pre-proposal meeting and WTP facility tour for interested consultants on February 27, 2023. Proposals submitted in response to the RFP including qualifications and scope of work descriptions were assessed and ranked by a technical review panel comprised of City staff.

Background
The original budget estimate for the Project, as presented in the 2021-23 Financial Plan, was $150,000 based on a simplified scope of work that would be limited to the provision of an audit of existing aging infrastructure and incorporation of the findings into a renewal strategy that would prioritize capital projects programed in the next decade. In addition, the original 2021 budget was estimated prior to major inflation-related price increases that the City has been experiencing over the past year. As noted above, the WTP does not currently have an asset management replacement plan to build upon, and it will be the first plan to be prepared for this essential facility and serve as a methodical, orderly and efficient approach for asset management and replacement. The original scope needed to be expanded to reflect a fully analysis and a budget estimate that would provide the best value for the City and current and future water customers.

Upon review of the consultant submittals in response to the RFP, it was clear to the technical review panel that the scope recommended by the consultants was based on their substantial experience with similar work efforts in water treatment plant asset review, assessment, and facility planning. In addition, the proposed scope made assumptions on total assets needed to be evaluated including comprehensive risk assessments and assumptions for potential regulatory considerations that exceeded the level of base effort identified by the RFP.

Following the panel’s review, Kennedy Jenks was selected as the top-qualified consultant based on selection criteria presented in the RFP. Staff then opened and reviewed the consultant’s cost estimate and initiated scope of work negotiations. The proposed cost was significantly higher than originally anticipated; however, the panel determined the larger scope proposed by the experienced consultant was appropriately scaled given the significant scope on infrastructure renewal plans at the WTP and that the proposed work would provide more value to the City and its water customers now and in the following decades. The table on the following page highlights the evolution of the Project scope from the 2021 original budget estimate to the currently recommended scope and associated budget.

Item 6f
2021 Initial
Scope from
2021-23
Financial Plan
2022 Refined Scope from
Released RFP
2023 Recommended Scope from
Consultant Proposal
(also includes all RFP scope items)
Review and
update asset
inventory, age,
and estimate
of remaining
life. Prioritize
WTP CIP for
the next
decade.

Review and update asset
inventory, age, and estimate of
remaining life.

Conduct an audit on the existing
facility and compile source water
data.

Develop asset registry and creation of
inventory database and dashboard
memorializing staff knowledge.

Conduct process and asset
condition assessment including
a risk analysis based on staff
interviews and asset inspection
and testing.

Conduct Business Risk and
Vulnerabilities Analysis, including
development of a safety, regulatory, and
financial risk matrix.

Preliminary asset condition assessment
and audit followed by a detailed
condition assessment for the most
critical and vulnerable assets.

Review and summarize
regulatory/permit requirements
and identify emerging concerns.

Assess likeliness of future regulations
and impacts on the existing system and
identify potential adaptations.

Evaluate vulnerabilities to climate
change including extreme drought/
precipitation and provide list of the
assets most impacted.

Define facility needs and
alternatives and develop
prioritization methodology.

Forecast asset maintenance and
replacement budgetary needs.

Address operational schedules
and staffing requirements and
increased instrumentation.

Develop infrastructure renewal
strategy including near-term (0-5
years), medium-term (5-15
years), and long-term (10-25
years).

Included in scope of work (refer to
Attachment A).

Value of Recommended Scope and Associated Cost
The recommended scope of work would include a detailed condition assessment for assets identified as highly critical to operation of the WTP, including identification of vulnerabilities, which will inform prioritization of asset maintenance and replacement beyond what would be identified through a basic asset audit process (Attachment A, Tasks 3.2 and 3.3).

Item 6f
In addition, the recommended scope of work includes
a process and regulatory condition assessment
(Attachment A, Task 3.4), which will include an
industry expert assessment of future water quality
regulatory and permit requirements and treatment
processes to address emerging contaminants, how
these requirements would affect operation of the
WTP, and recommendations for adaptations and
process changes, including the appropriate timing to
complete these changes (Task 5, WTP Infrastructure
Renewal Strategy). This task also includes an
evaluation of vulnerabilities to changing climate
conditions such as extreme drought periods and high
precipitation events. This will allow the City to best
prepare and plan for the future and minimize
unknowns that could result in expensive reactionary
capital projects, unanticipated increases in operating
costs, or operational interruptions.

The process and regulatory condition assessment will
also evaluate opportunities to optimize operations and
management processes related to stabilization of
source water quality and associated treatment
including THM1removal, improved resiliency related
to water storage and distribution, and staff schedule
efficiencies. This level of effort is needed to identify strategic and proactive improvements and process
automations that would manifest future cost savings
and allow the City to better utilize its existing
workforce.

Through negotiations, the consultant modified their
scope of work, resulting in a cost reduction of
approximately $35,000 from the originally proposed
bid, without compromising necessary elements that
are expected to result in cost savings in the future as a result of comprehensive risk assessment, predictive
asset management, potential energy and chemical
use savings, and staffing efficiencies (Attachment A).

Compared to the original budget estimate, approval of
the recommended budget and scope of work will
result in a Project that is anticipated to facilitate future grant opportunities, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency.

1 Trihalomethanes (THMs) are a by-product of the water treatment process. They are formed when natural organic material, such as the decaying vegetation commonly found in lakes and reservoirs, reacts with chlorine used to treat the water.

Accelerate Future Work & Save
Staff Time
When it is time to undertake a
specific project, the IRS will contain
the necessary information to
accelerate the design process and
reduce staff hours necessary to
prepare a project for design.

Reduction of Electrical
Expenditures for THM1 Removal
Refinement of existing treatment
processes will reduce THM
production, allowing for the reduction
of run time on existing THM removal
equipment that is extremely energy
intensive.

Source Water Optimization
Due to limited operation and
infrastructure bottlenecks, the City
only uses approximately 85% of its
Nacimiento entitlement. Source
water optimization will ensure that
the City has a plan for full utilization
of Nacimiento Reservoir water.

Data Driven Replacement/
Rehabilitation Schedules
Utilizing advanced technology and
equipment, the consultant team will
prioritize critical equipment for
replacement or rehabilitation based
on actual condition rather than run
hours or installation year. This
includes equipment to conduct
advanced vibration analysis and
thermo-imaging, which will help
determine the useful life of assets.

Use of Asset Data to Populate
GIS Database
WTP assets are not currently
recorded in GIS. IRS asset research
will streamline efforts to record asset
information in the GIS database,
saving staff time and labor hours for
GIS consulting services.

Item 6f
This project will also ensure that the City has the appropriate information to document the stability and resiliency of the City’s water treatment capabilities, which is an important element when credit rating agencies provide credit ratings for the Water Fund. High credit ratings ensure that the City is able to secure low-interest loans for future projects that must be debt-financed, such as the replacement of Reservoir Two.

Through the RFP and proposal review process and discussions with industry experts, staff learned of the additional opportunities and associated work efforts to address regulatory, efficiency, critical risk, and climate change issues through the strategic plan process. This holistic approach will provide efficiencies, benefits, and value to the City and our customers now and in the future. Therefore, the original appropriation of $150,000 has been found to be inadequate to fund the scope of work necessary to fully evaluate the WTP and associated assets, identify realistic risks and opportunities for adaptation and resiliency, and develop a strategic plan that is based on sound data, independent analysis, and anticipation of future needs for the City and future anticipated regulatory compliance requirements.

Moving through the process there will be opportunities to realize cost savings by establishing check points for re-assessment with the consultant. For example, following completion of Task 2 (Baseline Inventory and Data) the City will have an opportunity to work with the consultant to further define the strategic focus of subsequent Tasks 3-5, particularly Task 3 (Process/Asset Condition Assessment). In addition, the proposal scope estimates a preliminary review of 3,000 assets, with a condition assessment on 15% of those assets (450). Task 2 will provide the information necessary to refine this assumption with actuals, which will inform the work necessary under Task 3 (Process/Asset Condition Assessment).

Therefore, staff recommends allocating the full requested budget of $451,111 to ensure smooth transitions through the audit, assessment, evaluation, planning, and documentation processes.

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. On January 17, 2023, the City Council approved the RFP for preparation of the Project and authorized staff to advertise the Project for proposals and bids, and authorized the City Manager to award the contract for the Project if the bid is up to $150,000.

Public Engagement
The RFP was included in the January 17, 2023 City Council Agenda package. The RFP was released on Bidsync and was advertised in the local newspaper (New Times).

Item 6f

CONCURRENCE
The WTP Supervisor, Jason Meeks, was a key contributor to the development of the RFP and concurs with the scope of the Project as proposed by the top-qualified consultant.

The Finance Department supports the appropriation of funding from unassigned working capital reserves.

ENVIRONMENTAL REVIEW
The scope of the action is limited to consideration of funding for 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: 2023-25
Funding Identified: Yes
Fiscal Analysis:

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). City Council authorized up to $150,000 for the Project on January 17, 2023.

As noted above, staff is requesting funding in the full amount of $451,111. Therefore, an additional $301,111 is needed from Water Fund Unassigned Working Capital to fully fund the project (Attachment B). The approximate current balance in the Water Fund Unassigned Working Capital is $9,245,664.

Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Water Fund CIP
10005421
$150,000 $150,000 $0 $0
Water Fund
Unassigned
Working Capital2
$9,245,664 $301,111 $8,944,533 $0
Total $9,395,664 $451,111 $8,994,533 $0
Notes:
1 Amount previously authorized (January 17, 2023)
2 Current funding request

Item 6f

ALTERNATIVES

1. No Project. The City Council may choose to reappropriate the current funding allocation of $150,000, which would eliminate the Project from the Utilities Department’s capital work plan. This alternative is not recommended, as there is no current asset or strategic plan for the WTP, and would result in future untimely capital improvements, ultimately resulting in increased costs for operation, maintenance, asset replacement, and process and treatment modifications. This alternative may also compromise the City’s ability to maintain our existing credit ratings and successfully obtain grant funding to offset capital costs, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency.

2. Deny funding allocation request and maintain current budget allocation of $150,000. The City Council may choose to deny the funding allocation request. Staff does not recommend this alternative as the requested funding is needed to fully implement the Project. Denial of the funding request would require the elimination of the necessary Project elements that are expected to result in cost savings in the future as a result of comprehensive risk assessment, predictive asset management, potential energy and chemical use savings, and staffing efficiencies. Denial of the funding request may also compromise the City’s ability to maintain our existing credit ratings and successfully obtain grant funding to offset capital costs, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency.

3. Reduce amount of funding allocation. The City Council may choose to reduce the funding allocation request. Staff does not recommend this alternative as the requested funding is needed to fully implement the Project. Reduction of the funding request would require additional scope negotiations that would likely result in the elimination of necessary elements that are expected to result in cost savings in the future as a result of comprehensive risk assessment, predictive asset management, potential energy and chemical use savings, and staffing efficiencies. Denial of the funding request may also compromise the City’s ability to maintain our existing credit ratings and successfully obtain grant funding to offset capital costs, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency.

4. Break the scope of work into separate phases. The City Council may choose to maintain the current budget allocation of $150,000 for implementation of the Project through Task 2 (Baseline Inventory and Data). This alternative is not recommended as it would impair a smooth transition and efficiencies through the evaluation process and development of the Infrastructure Renewal Strategy and may result in cost increases as it would require a separate consultant contract for the later phases of work. Breaking the scope of work into separate phases may also result in the discontinuity of Project delivery due to staff transition between the multiple phases of the project.

Item 6f

ATTACHMENTS
A - Proposed Scope of Work and Cost Estimate
B - Draft Resolution authorizing Water Fund Unassigned Working Capital for preparation of the Water Treatment Plant Facility Infrastructure Renewal Strategy Plan

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 1 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

Project Cost
Estimates
Project
Descriptions
PFDs Chemical
Risk-based
Project
Prioritization
Needs Analysis
Risk Matrix
O&M Targets
System Threats
Analyze
Failure
Patterns
Mechanical
Electrical
Structures
Develop LOF
& Update Risk
Profile
Stranded Assests
and Energy
Conduct Staff
Interviews
Data Gathering
& Review
Condition Process
Assessments Constraints
Rehab & Replace
Strategies
Prioritization
Mechanism Final IRS
Business Risk &
Vulnerabilities Gather Baseline Data
Condition
Assessment
System Level Risk
Analysis
Prioritize
Improvements IRS Plan
Develop Asset
Registry
Fill CMMS
Data Gaps
Predictive AM
Strategies
Task 3 Task 3 Task 3 Task 4 Task 5
Scope of Work
This section presents our proposed scope of work to develop the Water Treatment Plant Facility Infrastructure Renewal Strategy (IRS) based on the scope of work presented in the Request for Proposal (RFP). Additions, assumptions, deliverables, and clarifications to the scope of work are provided in green.

Identify and Assess Phase Risk & Mitigation Phase
Repeatable Framework
A summary of the proposed tasks and deliverables, including technical memorandum (TM), workshops, and meetings, is provided in the table below.

Task Major Deliverables Meetings
Task 1 Project Management • Meeting agendas, materials, and minutes Project Kickoff, 18 project meetings, City council meeting
Task 2 Baseline Inventory &
Data
• Data request
• Data Draft & Final TM
• Water Data Draft & Final TM
4-day Staff interview workshop
Task 3 Process/Asset Condition
Assessment
• WTP Regulatory/Code Draft & Final TM
• Process/Asset Condition Assessment Draft
& Final TM
Meetings for this task are included in
Task 1
Task 4 Prioritization
Methodology, Needs &
Alternatives Analysis
• Needs & Alternatives Analysis Draft & Final
TM
Task 5 Water Treatment Plant
Infrastructure Renewal Strategy • Renewal Strategy/CIP Drafts & Final TM Task
Required
Task
Optional Added
Value Task

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 2 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

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. As part of the project management task, the following subtasks are included:

1.1 Project Management
• KJ will assign a project manager that will be in regular contact with City staff to incorporate decisions and suggestions regarding the direction of the Project. • Weekly status reports will be emailed to the City. These status reports will be supplemented with regular telephone calls to the City as required to discuss the status of ongoing work efforts and outstanding issues. There is an opportunity for cost savings by reducing these status report updates to a monthly occurrence.
• Invoices will include a detailed summary of tasks completed during the period and include any amended changes in scope and/or fee.
• KJ will prepare and provide a workplan for communications, meetings, and progress reporting to ensure the Project is kept on schedule and within budget.
• KJ will coordinate with the City’s Project Manager on activities including scheduling meetings, tracking, and reporting on work in progress.
• KJ will prepare a Microsoft Project schedule that will include a schedule of items to be submitted by the City and the project team and a log of decisions to be made with action items. • This task includes project setup and closeout activities.

1.2 Progress Meetings and Presentations
During the Project, KJ will attend progress/coordination meetings with City staff to discuss issues related to the Project and update the City regarding progress. KJ will prepare meeting notes and distribute them to the City, and the team will support City Staff at public meetings, including assistance with presentations and responding to questions from the public and City Council. Anticipated meetings are as follows:

Meeting Description In-Person Meeting Virtual Meeting
Project kick-off meeting at the City WTP 2-hrs
Two meetings to review baseline inventory and data 1-hr/mtg Twelve meetings to discuss technical memorandums
(assumes six TMs with two meetings per TM, excludes
optional tasks)
2-hrs/mtg
Two meetings to discuss Drafts and Final WTP
Infrastructure Renewal Strategy
One 2-hrs One 2-hrs
One (1) meeting prior to City Council hearing 2 -hrs
One (1) meeting at City Council (in-person) for
approval of the WTP Infrastructure Renewal Strategy
2-hrs

1.3 Health and Safety Plan
KJ will prepare a Health and Safety Plan for work at the facility as described in subsequent tasks. The Plan will include requirements from the City’s confined space entry program. KJ assumes there will be no confined space entry rescue service required and the local fire department will perform this action if needed.

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 3 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

1.4 Quality Assurance/Quality Control (QA/QC)
KJ will provide the services of senior-level staff persons with applicable experience to conduct technical reviews of project deliverables prior to submittal to the City.

Task 1 Assumptions
• Meetings will be held in person or virtual as outlined in Task 1.2 • Thirteen (13) monthly invoices and progress reports are assumed to be submitted over the duration of the project.
• Twelve (12) project management monthly meetings at ½ hour per meeting.

Task 2: Baseline Inventory and Data
This task is focused on the Identify Phase of the project, including data collection, identification of assets, and understanding of water sources. This task includes becoming familiar with the WTP including past, current, and planned capital improvement projects, and existing infrastructure planning documents.

2.1 Data Collection & Review
KJ will collect information and visit City facilities to understand City processes and management needs.

This task includes developing an initial data request list, prioritizing data needs, and tracking receipt of information. KJ will develop a data request. This request will be reviewed by MKN, who will provide available documents from previous work with the City. Only the remaining required documents will be requested from the City.

KJ will review provided documents and data, and identify any additional information needed to complete the baseline inventory, audit, and associated data analysis to inform the WTP Infrastructure Renewal Strategy.

This data will include but not be limited to as-built PIDs, Civil Drawings, Mechanical Layouts, Electrical and Instrumentation, CMMS maintenance history, SCADA alarm history, past condition assessment reports, asset management related reports, source water quality historic data, projected water demands, reports related to treatment optimization/improvements, and staffing studies.

2.2 Asset Identification, Inventory, & TM
The Project Team will 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.

KJ will develop an asset registry that includes all critical assets that will be on risk-based field inspections checklist. Asset attribute data includes but is not limited to: location ID, parent location, asset location description, equipment description, criticality rating, make, model, estimated install date, estimated install cost, etc. KJ will close data gaps for up to 300 asset locations.

KJ, with the support of MKN, will develop a draft and final Technical Memorandum that summarizes the City’s available data and identify key data gaps. This TM will also include a system-level asset registry that will be used to document the staff interviews and will be the basis to document mitigation at the system level.

2.3 Staff Interviews – Business Risk and Vulnerabilities Analysis 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.

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 4 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

KJ will conduct interviews with key City staff using our Business Risk and Vulnerabilities Analysis (BRVA) 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:

1. Utilities Deputy Director, Water

2. Utilities Deputy Director, Engineering and Planning

3. Water Treatment Plant Supervisor

4. Water Treatment Plant Chief Maintenance Mechanic

5. Water Treatment Plant Chief Operator

6. Water Treatment Plant Operators

7. Information Technology Control Systems Administrator Use the City’s mission statement to develop a risk matrix that includes the but limited to the triple bottom line (safety, regulatory, financial) consequence of failure elements and severity ratings.

KJ will facilitate a four-day, 4-hr per day Operational Assessment (BRVA) workshop to interview the City’s most experienced operations and maintenance (O&M) staff. The operational assessment will use a series of process-related questions to determine reasonable system failure modes, failure effects, dominant failure mechanisms, system criticality, operational targets, operator response corrective action, system critical equipment condition history, and O&M ideas that may improve the performance of the system.

Document the workshop observations in a Microsoft Excel spreadsheet and Microsoft Power BI dashboard for effective reporting and memorializing O&M knowledge.

Conduct one (1) 2-hour remote workshop with the City to review and validate the findings.

Based on the outcomes of the Operational Assessment, KJ will gather all relevant data that will assist with the execution of assessing the condition of critical assets. This data will include but not be limited to as-built PIDs, Civil Drawings, Mechanical Layouts, Electrical and Instrumentation, reactive maintenance history, SCADA alarm history, past condition assessment reports and/or asset management related reports.

2.4 Water Data Analysis & TM
KJ will compile and analyze source water quality and treatment data from historical data records. This data will be ideally from a historical period of 5 years at a minimum. KJ will use available data such as population projections and demand projections to project daily water demand. This projection will consider the impact of the treatment capacity for the City and Cal Poly. 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) will be developed. Data evaluation will be done using an MS Power BI dashboard that will allow the KJ/MKN team and City to interact with the data and proposed projections. We assume that we will develop and analyze up to 10 future demand scenarios that could be used moving forward in the lifecycle analysis tool.

Task 2 Assumptions
• Two (2) staff meetings attended by two (2) KJ/MKN staff with a duration of 2 hours per meeting are assumed.
• The City will be responsible for consolidating comments from City staff and providing the consolidated comments to KJ approximately 2 weeks prior to the first TM review meeting. • Two 2-hour TM review meetings are assumed.
• Deliverables will be provided with the draft in editable Microsoft Word electronic format and the final memorandum as a PDF file.

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 5 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

Task 3: Process/Asset Condition Assessment
• This task is focused on the Assess Phase of the project, which includes identifying vulnerabilities, operational constraints, and critical assets.

3.1 Condition Assessment Methodology
KJ will develop the condition assessment methodology based on the baseline asset inventory list identified in Task 2.2. The assessment will include a review of the future capital projects program and associated budgetary estimates and identify any recommendations for cost adjustments. The assessment methodology is anticipated to be split into two phases consisting of a preliminary condition assessment using a desktop approach (Task

3.3) and then a detailed condition assessment for the most critical and vulnerable assets identified from the BRVA (Task 3.4).

3.2 Preliminary Asset Condition, Criticality & Vulnerability Assessment KJ will conduct a desktop audit on the existing WTP facility, including a process and asset condition assessment. KJ will update the baseline asset inventory, including asset age and estimate of remaining useful life, and complete a likelihood of failure and consequence of failure analysis in collaboration with City Staff.

KJ will use the information collected in Task 2 to validate the BRVA via desktop condition assessment and sensitivity analysis. In addition, KJ will initiate a desktop audit that includes WTP facilities and equipment not field inspected and/or as highlighted in the WTP critical and/or large diameter below-grade piping.

This assessment will include a risk analysis based on BRVA staff interviews (Task 2.3) and asset inspection (from previous field data, Task 2.1; note that field testing will be done as part Task 3.3) The desktop assessment will identify critical assets that warrant a detailed condition assessment considering criteria identified as most vulnerable.

3.3 Detailed Condition Assessment for High Critical Assets KJ expects that the Preliminary Asset Condition, Criticality & Vulnerability Assessment will identify several assets within the system as being highly critical to operations. If failure of any one of these assets will result in the utility’s inability to meet established Service Level criteria, then it is important to assess their condition and identify if any vulnerable points within the facilities exist. KJ will use criticality and points of system vulnerability to execute risk-based field inspections for the most critical equipment and visually present them for ease of tracking progress as shown in a Field Inspection and Condition Assessment Dashboard.

KJ will review and use the inventory spreadsheet, available photos, and as-built drawings to develop a well -thought-out inspection plan and checklist of items. KJ expects to perform condition assessments for up to 15% of the WTP’s asset population of approximately 3,000.

Task 2 Deliverables
• Agendas and minutes for staff interviews
• Review documents and data provided by the City and submit a written request for additional information.
• Draft and final Technical Memorandum summarizing the City’s available data and identifying any key data gaps.
• 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). • Baseline Asset Inventory List

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 6 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

KJ will perform inspections, take 2D and 3D photographs, and take videos for the equipment. KJ will perform visual inspections above-grade, obtain photos and/or videos, such as a pole-mount camera with adequate lighting to take 2D, 3D scans and thermal imagery photos of electromechanical gear. Below-grade and/or confined space facilities will not be included and will be considered optional if the City requires.

KJ proposes using an ESRI-based field data collection application, as shown in the figure, as our preferred field inspection tool. KJ will provide the tool to the field teams and integrate it with existing data and assessment information so that this knowledge can be used for field intelligence. The City will receive KJ’s standard condition assessment forms for review and approval. KJ will integrate the condition assessment forms into ARC GIS Survey123 and field reporting dashboards. KJ will test the application for full functionality of the application and provide a demonstration to the City.

For the site inspection, KJ will coordinate inspection work around assigned plant staff’s mandatory rest breaks and lunch breaks. KJ will hold daily tailgate meetings with the plant manager and/or supervisor to review inspection progress and the proposed inspection work for the day. KJ will closely coordinate with Operations to maintain a flexible schedule and logistics for the inspection work. KJ will work with plant staff so that our inspections team is accompanied by plant representatives. KJ will notify the City two weeks in advance to arrange inspections based on site location and discipline, and request access and assistance of City staff. KJ will coordinate with Operations to ensure the inspection and its scheduled work do not interfere with the plant operations, material deliveries, regular maintenance activities, or active construction.

3.4 Process and Regulatory Condition Assessments
The assessment will include the WTP process capacity and treatment constraints. It also includes a review and summary of existing and likely future regulatory and permit requirements and identify emerging concerns that will inform the WTP Infrastructure Renewal Strategy. This assessment will include the development of a table that summarizes the future regulatory/permit requirements, how likely they are to be implemented, how they might impact the existing system, and potential adaptations that could be made to the system to meet to the regulatory/permit requirements.

KJ/MKN will also evaluate how the system may be vulnerable to changes in the climate, including extreme drought/precipitation scenarios. Existing available climate change studies conducted by the City and region will be to evaluate how climate change may impact the existing infrastructure in the future. The project team will develop a list of the assets anticipated to be most impacted by changing climate conditions.

KJ/MKN will evaluate the treatment process for future needs to address high TOC, HAA5, and PFAS: The City has researched multiple approaches to addressing these issues, including evaluating process changes such as the addition of post-ozonation and biologically activated carbon. Although adjusting the plant to allow blending of all water sources will assist in improving finished water quality and treatment reliability, additional treatment steps may be needed to address future requirements.

The KJ/MKN team will evaluate these and other opportunities to stabilize incoming water quality by evaluating the reconfiguring of the incoming pipes configuration upstream of the ozone contactor, as well as additional treatment (for example, constructing BAC filter beds) if required in the future. KJ/MKN treatment process experts will confirm the constraints of the out of spec media in the current filter trains.

Pipe Gallery: The configuration of the pipe gallery introduces significant risk and significant difficulty in O/M. As t

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 7 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.
part of the process and risk evaluation, the KJ/MKN team will consider opportunities to reconfigure or relocate the pipe gallery to reduce risk and to improve O/M. For example, the feasibility of relocating all or portions of the pipe gallery to the existing parking area and expanding the building footprint could be considered.

Hydraulic Limitations and Staffing: the City has an allocation of 5,200 AFY from the Nacimiento Water Project.

Due to hydraulic limitations in the pipeline, only 4,200 AFY can be received and treated under the current 17- hour operating schedule. As part of the Operations Review, we will evaluate the benefits of alternative operating schedules against competing goals. Using his operations management experience, KJ’s Dana Strahan assist the team with assessing strategic concepts for plant coverage and scheduling.

Utilizing Stranded Assets: Another option for addressing hydraulic limitations would be to store Nacimiento Water deliveries during non-operational hours for later treatment. Use of the abandoned clarifier, or the existing Reservoir 2 will be evaluated for this use. We will also evaluate using these facilities in conjunction with a hydrogeneration facility.

Transfer Pump Station Operation: When Reservoir 2 is relocated to the Cal Poly site in the future, there will be an opportunity to feed the Downtown Zone either from Clearwell 1, or from Reservoir 2/TPS. This would provide the ability to feed the Downtown Zone directly from the High Pressure Zone, adding resiliency to the distribution system.

3.5 Condition Assessment Findings
The findings from Tasks 3.2, 3.3, and 3.4 will be summarized in a technical memorandum. A draft and Final Process/Asset Condition Assessment Technical Memorandums addressing each discipline, including Electrical, Mechanical, Civil, Corrosion, Process Engineering, and Architectural, will be provided. KJ will develop a Field Inspection and Condition Assessment Dashboard that provides a summary of the asset condition findings.

Findings from the evaluation will also be summarized in a technical memorandum.

Task 3 Assumptions
• The City will be responsible for consolidating comments from City staff, provide the consolidated comments to KJ approximately 2 weeks prior to the first TM review meeting. • Two 2-hour TM review meetings are assumed.
• Detailed field system asset inspections will include a maximum of 3 days with 7 people from the KJ/MKN team. Plant inspections efforts will be led by KJ’s Mackenzie Capaci. • KJ/MKN will conduct Level 1 visual inspections, level 2 desktop performance evaluations. Level 3 extensive equipment aided inspections will not be included. However, if Level 3 inspections are needed, KJ will attain approval from City and recruit the assistance of V&A to execute the comprehensive inspection. • Deliverables will be provided with the draft as an editable Microsoft Word electronic version and the final memorandum as a PDF file.

Task 3 Deliverables
• Field Inspection & Condition Assessment Dashboard
• Draft and Final Process/Asset Condition Assessment Technical Memorandums addressing each discipline, including Electrical, Mechanical, Civil, Corrosion, Process Engineering, and Architectural • Draft and Final Technical Memorandum summarizing key WTP issues and a Regulatory/Code Summary

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 8 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.

Task 4: Prioritization Methodology, Needs, & Alternative Analysis This task is focused on the Risk & Mitigation Phase of the project, which includes the following.

4.1 Project Descriptions
KJ/MKN will form the basis of the prioritized strategic renewal projects from the concept mitigation repair, rehabilitation, and replacement strategies developed in Task 3. KJ will address up to 20 concept improvements developed during Task 3. KJ/MKN will evaluate the renewal projects against the City’s core initiatives and basic business case evaluation of the strategic renewal concept. KJ will identify project alternatives at the process system level and include the following:
• A ‘do-nothing’ approach where no improvement is applied over the next 10 years. • An O&M-centric approach where minor improvements are made to extend the useful life of the asset without substantial rehab or replacement.
• An analysis of several strategic renewal options including minor, to major rehabilitations and replacements.

KJ/MKN will work with the City to prioritize up to 12 strategic renewal projects out of the concept mitigation strategies for capital planning, identifying feasible projects for near-, mid-, and long-term solution. KJ/MKN will then prepare summary sheets for these options. KJ/MKN will present these options to the City at one 4-hour workshop to seek guidance on the preferred option(s) to be developed as strategic renewal projects with conceptlevel cost estimates.

4.2 Needs & Alternatives Analysis
KJ 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 cost-to-benefit analysis for proposed alternatives; and identifies recommended prioritization of projects by working with the City to develop an adaptable lifecycle analysis tool.

4.3 Prioritization Methodology
In consultation with City Staff, KJ/MKN will
develop a phased prioritization methodology
that addresses code and regulatory
requirements, deferred maintenance,
redundancy, pre-emptive asset repair and
replacement, and process efficiency
improvements by using risk criticality and
cost to mitigate. Together, risk criticality and
cost will deliver a prioritization mechanism
method that could be used as part of the
City’s CIP program.

KJ/MKN knows that the City values risk-based decision-making and encourages both the Likelihood of Failure (LOF) and Consequence of Failure (COF) in project prioritization. Using concepts of LOF, Effective Age, and Remaining Useful Life, KJ shall prioritize asset renewal strategies. At this stage, KJ/MKN will also include concept-level cost estimates to complete the prioritization mechanism analysis.

This methodology allows a risk value to be calculated at the asset and system levels which would be used for project prioritization and prioritized categorization levels. • KJ will prepare three priority levels of prioritized projects. • A Prioritization Meeting is planned to review recommendations with the City for agreement before

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 9 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.
developing associated planning level costs.

KJ will develop a Draft and Final Technical Memorandum identifying the prioritization methodology.

Task 4 Assumptions
• The City will be responsible for consolidating comments from City staff and will provide the consolidated comments to KJ approximately two weeks prior to the first TM review meeting. • Two 2-hour TM review meetings are assumed.
• KJ will screen 12 concept mitigation projects for capital improvement planning. • Present project in one 4-hr workshop with select City staff.

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

Task 5: Water Treatment Plant Infrastructure Renewal Strategy This task is focused on the Risk & Mitigation Phase of the project, which includes developing the rehabilitation plan, considering potential future changes including codes & regulations, and estimating the cost of the recommended project. In this task, the team will develop the phased and prioritized infrastructure renewal strategy including addressing existing deficiencies (years 1-5), as well as a medium-term (years 6-10) and long-term capital improvement forecast (beyond 10 years).

5.1 Code, Regulations & Climate Change Impacts
In support of the infrastructure renewal strategy, the approach shall address current and future Code and regulations. KJ will develop a list of existing and near-term announced codes and regulations that will impact the rehabilitation plan. This list will include the code, the assets to which it applies, and the potential impact(s). KJ will also evaluate which assets may be most vulnerable to climate change. An evaluation of climate change impacts based on existing studies will be conducted, including a review of the existing climate change studies for the region.

5.2 Development of Infrastructure Renewal Strategy
The project team will identify recommended operational/process improvements related to preventative maintenance data input, monitoring, and tracking.

5.3 Cost Estimate for Recommended Projects
KJ will provide present costs for recommended projects, including operation and maintenance costs, as well as 5-year and 10-year predicted costs. Cost estimates will be Class 5 conceptual-level opinions of probable construction costs and O&M costs.

5.4 Infrastructure Renewal Strategy TM
The project team will develop a Draft and Final Infrastructure Renewal Strategy, with a prioritized capital program.

Task 5 Assumptions
Task 4 Deliverables
• Draft and Final Technical Memorandum identifying the prioritization methodology. • Draft and Final Technical Memorandum identifying Needs and Alternatives Analysis

Kennedy Jenks | IRS Scope of Work
CITY OF SAN LUIS OBISPO | WTP FACILITY INFRASTRUCTURE 10 RENEWAL STRATEGY - 2023
KENNEDY/JENKS CONSULTANTS, INC.
• The City will be responsible for consolidating comments from City staff and providing the consolidated comments to KJ approximately 2 weeks prior to the first TM review meeting. • Two 2-hour IRS report review meetings are assumed, one for Draft and one for Final. • Deliverables will be provided in editable Microsoft Word, PDF files with searchable text, all digital files, and graphics.
• Assumes 3 administrative drafts, one Public Final, one adopted Final for the Draft & Final Infrastructure Renewal Strategy
• Cost estimates will be developed for up to 12 projects.

Task 5 Deliverables
• 2 Administrative drafts and Public Final Infrastructure Renewal Strategy, with prioritized capital program

Proposal Fee Estimate (Assoc. Proj. Costs per Schedule of Charges) CLIENT Name:

PROJECT Description: WTP Facility Infrastructure Renewal Strategy Proposal/Job Number: B001910*31994 Date:

City of San Luis Obispo
6/6/2023
January 1, 2023 Rates KJ KJ KJ Sub Sub KJ KJ KJ
erald tty F,
na c S, Phil P C.

Classification: Eng-Sci-9 | David F, Ge F
Eng-Sci-8 |Dawn T, Kat
Aide Total Labor
Escalation
Assoc. Proj. Costs
MKN
Hyrdogeneration SME
Don King
Sub-Markup
ODCs
ODCs
Markup
t
Don Barraza
Eng-Sci-7 |Josh S,
Meredith C, Kyle O, Da
n
S, Ralph S, James B
Eng-Sci-6 |Janet H, Eri
c
Sandy S, Mark P
Eng-Sci-5 |Claudia L, P
h
Eng-Sci-4 |Mackenzie C
Eng-Sci-3 |Sarah B
Eng-Sci-2
Sr. CAD-Tech
CAD-Tech
Project Assistant
Admin. Assist.

Total
Labor
Total
Subs
Total
Expenses
Total Labor + Subs +
Expenses
Hourly Rate: $320 $305 $285 $260 $240 $220 $200 $180 $155 $140 $140 $120 $95 Hours Fees 3% $9.74 Fees Fees 10% Fees 10% FeesTask 1 - Project Management1.1 Project Management 6 24 16 46 $11,480 $344 $448 $3,680 $368 $0 $12,272 $4,048 $0 $16,320

1.2 Progress Meetings & Presentations 12 18 30 $9,330 $280 $292 $5,520 $552 $1,700 $170 $9,902 $6,072 $1,870 $17,844

1.3 Health & Safety Plan 2 1 3 $750 $23 $29 $0 $0 $802 $0 $0 $802

1.4 QA/QC 32 32 64 $20,000 $600 $623 $0 $0 $21,223 $0 $0 $21,223 Phase 1 - Subtotal 50 76 0 0 0 0 0 0 0 0 17 0 0 143 $41,560 $1,247 $1,393 $9,200 $0 $920 $1,700 $170 $44,200 $10,120 $1,870 $56,190 Task 2 - Baseline Inventory & Data 2.1 Data Collection 4 8 12 24 $5,300 $159 $234 $2,760 $276 $0 $5,693 $3,036 $0 $8,729

2.2 Asset Identification, Inventory & TM 2 4 8 16 8 4 42 $9,900 $297 $409 $4,600 $460 $0 $10,606 $5,060 $0 $15,666

2.3 Staff Interviews 24 24 24 72 $20,760 $623 $701 $9,200 $920 $7,200 $720 $22,084 $10,120 $7,920 $40,124

2.4 Water Data Analysis TM 6 6 8 24 8 52 $10,950 $329 $506 $1,920 $192 $0 $11,785 $2,112 $0 $13,897 Phase 2 - Subtotal 32 38 8 0 56 0 0 44 0 0 0 12 0 190 $46,910 $1,407 $1,851 $18,480 $0 $1,848 $7,200 $720 $50,168 $20,328 $7,920 $78,416 Task 3 - Process/Asset Condition Assessment 3.1 Condition Assessment Methodology 2 4 4 10 $2,450 $74 $97 $2,760 $276 $0 $2,621 $3,036 $0 $5,657

3.2 Preliminary Asset Condition, Criticality, and Vulnerability Assessment 4 16 16 36 $8,580 $257 $351 $0 $0 $9,188 $0 $0 $9,1883.3 Detailed Condition Assessment for High Critical Assets 20 20 20 20 6 20 24 130 $31,440 $943 $1,266 $9,200 $920 $16,700 $1,670 $33,649 $10,120 $18,370 $62,139

3.4 Process and Regulatory Condition Assessments 40 8 40 24 112 $30,120 $904 $1,091 $8,360 $836 $0 $32,114 $9,196 $0 $41,310

3.5 Condition Assessment Findings TM 4 8 20 20 32 8 92 $19,640 $589 $896 $1,920 $192 $0 $21,125 $2,112 $0 $23,237 Phase 3 - Subtotal 44 42 20 20 100 70 20 56 0 0 0 8 0 380 $92,230 $2,767 $3,701 $22,240 $0 $2,224 $16,700 $1,670 $98,698 $24,464 $18,370 $141,532 Task 4 Prioritization Methodology, Needs & Alternative Analysis4.1 Project Descriptions 2 24 24 24 74 $20,560 $617 $721 $9,200 $920 $0 $21,898 $10,120 $0 $32,018

4.2 Needs & Alternatives Analysis 2 8 16 16 24 66 $14,760 $443 $643 $4,600 $460 $0 $15,846 $5,060 $0 $20,906

4.3 Prioritization Methodology TM 8 8 12 12 16 16 32 104 $24,660 $740 $1,013 $3,840 $384 $0 $26,413 $4,224 $0 $30,637 Phase 4 - Subtotal 12 40 36 12 56 32 0 56 0 0 0 0 0 244 $59,980 $1,799 $2,377 $17,640 $0 $1,764 $0 $0 $64,156 $19,404 $0 $83,560 Task 5 - Water Treatment Plant Infrastructure Renewal Strategy 5.1 Code, Regulations & Climate Change Impacts 4 4 4 4 24 40 $10,440 $313 $390 $4,600 $460 $0 $11,143 $5,060 $0 $16,203

5.2 Development of Infrastructure Renewal Strategy 16 24 12 16 24 92 $23,160 $695 $896 $9,200 $920 $0 $24,751 $10,120 $0 $34,871

5.3 Cost Estimate for Recommended Projects 8 24 12 44 $11,560 $347 $429 $1,920 $192 $0 $12,335 $2,112 $0 $14,447

5.4 Infrastructure Renewal Strategy TM 8 12 12 24 24 80 $18,700 $561 $779 $1,920 $192 $3,400 $340 $20,040 $2,112 $3,740 $25,892 Phase 5 - Subtotal 28 48 4 28 60 40 0 48 0 0 0 0 0 256 $63,860 $1,916 $2,493 $17,640 $0 $1,764 $3,400 $340 $68,269 $19,404 $3,740 $91,413 All Phases Total 166 244 68 60 272 142 20 204 0 0 17 20 0 1213 $304,540 $9,136 $11,815 $85,200 $0 $8,520 $29,000 $2,900 $325,491 $93,720 $31,900 $451,111 https://kjcnet.sharepoint.com/sites/CityofSanLuisObispo-WTPFacilityInfrastructureRenewalStrategy/Shared Documents/General/Drafts - Pink Team/SLOProposalFeeEstimate_20230401.xlsm © 2008 Kennedy/Jenks Consultants, Inc.

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING WATER FUND UNASSIGNED

WORKING CAPITAL FOR PREPARATION OF THE WATER

TREATMENT PLANT FACILITY INFRASTRUCTURE RENEWAL

STRATEGY PLAN
WHEREAS, the City Water Treatment Plant does not currently have a comprehensive asset management plan to guide the maintenance and replacement of plant infrastructure, and development and adoption of an Infrastructure Renewal Strategy Plan (Project) will facilitate asset maintenance and replacement prioritization, process optimizations, compliance with future regulatory conditions, and more refined capital improvement planning and associated budgeting; and
WHEREAS, the Project includes an assessment of future water quality regulatory and permit requirements and treatment processes to address emerging contaminants, how these requirements would affect operation of the Water Treatment Plant, and recommendations for adaptations and process changes, and includes an evaluation of vulnerabilities to changing climate conditions such as extreme drought periods and high precipitation events, which will allow the City to best prepare and plan for the future and minimize unknowns that could result in expensive reactionary capital projects, unanticipated increases in operating costs, or operational interruptions; and WHEREAS, the Project is anticipated to facilitate future grant opportunities, particularly related to climate change resiliency and adaptation, hazard mitigation, and energy conservation and resiliency; and
WHEREAS, the Water Treatment Plant Infrastructure Renewal Strategy (Project) is consistent with the City 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 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; and WHEREAS, the Project was included in the 2021-23 Financial Plan and 2021-23 Financial Plan Supplement with an identified budget of $150,000; and WHEREAS, on January 17, 2023, the Project was included on the City Council agenda and the City Council approved the Request for Proposals (RFP) for the preparation of the Project, authorized staff to advertise the Project for proposals and bids; and authorized the City Manager to award the contract for the Project if the bid is within available project funding of $150,000; and

Resolution No. _____ (2023 Series) Page 2
R ______
WHEREAS, City staff released the RFP on February 10, 2023 and conducted a pre-proposal meeting and WTP facility tour for interested consultants on February 27, 2023, and proposals were opened on April 6, 2023; and
WHEREAS, based on review of submitted proposals and review of the top qualified consultant’s Project cost estimate by a technical review panel comprised of City staff, the original appropriation of $150,000 has been found to be inadequate to fund the scope of work necessary to fully evaluate the WTP and associated assets, identify realistic risks and opportunities for adaptation and resiliency, and develop a strategic plan that is based on sound data, independent analysis, and anticipation of future needs for the City and future anticipated regulatory compliance requirements; and WHEREAS, the total Project cost is estimated at $451,111, requiring an additional $301,111 to complete the Project and ensure smooth transitions through the audit, assessment, evaluation, planning, and documentation processes; and WHEREAS, a balance of over $9 million is available from the Water Fund Unassigned Working Capital to fund the Project.

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

Resolution No. _____ (2023 Series) Page 3
R ______
SECTION 1. Budget. The budget of $301,111 will be moved to the Water Treatment Plant Infrastructure Renewal Strategy Plan to enable strategic and capital planning for an essential and critical City facility.

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

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: July 18, 2023
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Lee Johnson, Economic Development Manager
Molly Cano, Tourism Manager
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 7A - ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE Staff received the following questions, regarding the Economic Development Strategic Plan (EDSP) Update. The questions are below with staff’s response shown in italics:

1. Can you please clarify what the additional $150K will go to in the 23-25 Financial Plan, above and beyond what was being funded before?
Answer: Due to the update of the EDSP occurring after the 2023-2025 Financial planning process it was decided to set aside $75,000 per year for two years to fund projects that would be identified during any new work efforts that were initiated because of the EDSP process. At this point no funding allocation decisions have been made, but the following examples are some of the initiatives that could require funding over the next two years as tasks are completed and evaluated for funding:
- 1.1.3 Expand business outreach efforts with a formal Business Retention and Expansion program that assists new and existing businesses, monitors employer trends, and pinpoints enterprises and sectors that require support. Funding needs could include materials, website updates, survey creation and tracking tools. - 2.3.3. Restart discussions with partners regarding the potential of a conference facility and explore potential funding structures (i.e., public, private, or publicprivate partnership). Funding needs could include additional studies or consultant work if the process moves forward prior to the next budget cycle. - 3.3.1. Leverage existing tourism marketing materials and strategies detailed in the TBID marketing plan to support any new talent attraction efforts. Funding needs could include modifications or enhancements to current or new TBID materials to focus on a different target audience or target market.

2. What was the cost of the contract to develop this plan with the contractor? Answer: $100,000. For reference, in 2019 the City released a Request for Proposals for an EDSP update with a budget of $75,000 and there were no responses.

ITEM 7A - ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE Page 2

3. On page 108 of the packet, it says this:

Another notable change relates to the reframing of HOH jobs. Changes in society and community feedback led to revisiting the HOH job classification to assess how well the term aligns with the City’s inclusivity goals and national best practices. The process involved evaluating numerous options to define and track quality jobs. Ultimately, it was determined that using the City’s moderate-income levels as specified in the current Below Market Rate Housing Standards would create greater alignment with an existing reference and be better understood Citywide. The moderate-income guidelines also allow for target income levels to vary based on household size to adjust to changing conditions over time. Adding the + symbol to moderate income represents that jobs with an income level above moderate are welcome and that the other criteria related to the former HOH job classification remain (career ladder, education level and technical skill, employer sponsored benefits, and stability).

The resulting quality job indicator going forward, and referenced here, will be Moderate Income+.

Can you please explain more about how and why the Below Market Rate Housing Standards were used in your analysis?
Answer: In early 2012, San Luis Obispo created its first Economic Development Strategic Plan (EDSP). The intent behind the 2012 EDSP was to improve the City’s economic development function through the creation of targeted strategies aimed at increasing the number of Head of Household (HOH) jobs. During the public engagement for this update, it was communicated multiple times in various forums that the term “Head of Household” was outdated and not inclusive. City staff worked with the consultants to find a new reference point that was inclusive, standardized, readily available and regularly updated. In discussions with the Community Development Department it was determined that using the moderate income level associated with the City’s “Below Market Housing Standards” would be appropriate for this reference point. The Moderate-income levels from table 1 of the standards are highlighted below:

ITEM 7A - ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE Page 3

4. Can you please explain the activities that will occur to further these two items in the action plans:

2.5.2. Evaluate a more structured community-based neighborhood planning effort with the Community Development Department and the Community Services and Support group for inclusion in the 2025– 2027 goal-setting process.

3.3.3. Facilitate stronger connections among students, employers, and the broader community to help retain graduating high school and college students.

Answer: Action 2.5.2 was a concept that has been discussed between the Community Development Department and the Economic Development and Tourism Program during the 2023-25 Goal setting process. The general idea is that resources would be set aside for the relevant City departments to meet with both residents and businesses in the various neighborhoods in the City to discuss what the City can do and work with the neighborhood to determine prioritization and opportunities for partnership. Given the recent, current and planned changes in management in the Community Development Department, the Community Services Group and the Office of Economic Development and Tourism it was decided to postpone further discussions of the concept until the 2025-27 goal setting process.

For action 3.3.3, while the concept of connecting with current residents prior to their entering the workforce to retain them once they enter the workforce is an ongoing effort, a defined program or process has not been developed to this point. In the short term, the next steps will involve discussion with the Center for Innovation and Entrepreneurship and Workforce Investment Board and then work back through the “pipeline” (Cal Poly, Cuesta and San Luis Coastal Unified School District) to determine the longer-term actions.

Item 7a
Department: Administration
Cost Center: 1004
For Agenda of: 7/18/2023
Placement: Business
Estimated Time: 60 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Lee Johnson Economic Development Manager
SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE

RECOMMENDATION
Approve the Economic Development Strategic Plan Update.

POLICY CONTEXT
As part of the 2021-23 Major City Goal of Economic Recovery, Resiliency, and Fiscal Sustainability, the City Council approved an action to update the City’s Economic Development Strategic Plan (EDSP).

Chapter #1 (Land Use Element)1
Society and Economy San Luis Obispo should be a well-balanced community.

Environmental, social, and economic factors must be taken into account in important decisions about San Luis Obispo's future. A healthy economy depends on a healthy environment. The social fabric of the community for both residents and visitors must also be a part of that balance. Therefore, complementary to the goals and objectives of this element, the City shall maintain and bi-annually review goals and objectives that promote the economic well-being of the community.

REPORT-IN-BRIEF
The existing Economic Development Strategic Plan was originally adopted in 2012 and updated in 2015. The primary goal of the current plan is to help create Head of Household jobs.

The City’s EDSP is intended to be updated every 4 to 5 years. This plan (Attachment A) is a full update which is consistent with the City Council’s Vision Statement and current Major City Goals. The implementation of the updated EDSP will continue to promote, encourage, and enhance an economic environment that is dynamic and resilient with a focus on sustainable and equitable policies, programs, and processes. The major pillars of the plan are Business and Entrepreneur Vitality, Placemaking and Promotion, and Talent Development and Attraction.

1 2014 Land Use Element: Chapter 1, Page 20.

Item 7a
The ongoing implementation of the plan will be tracked via the Implementation Matrix (Attachment B).

DISCUSSION
Background
The City’s Economic Development Program was established in 1996. The original focus of the program was the generation of revenue, primarily through increasing sales tax and Transient Occupancy Tax (TOT). The economic challenges of 2008-2010 created additional focus on the City’s role in economic development. As a result of this focus, the City Council approved the first EDSP in 2012. The primary focus of that plan was focusing on a system to create Head of Household (HOH) Jobs.

In 2015, the original EDSP received a minor update to increase the focus on property development in conjunction with the update of the Land Use and Circulation Element of the City’s General Plan. After 2015, it was recommended to update the EDSP every five years to ensure that the work of the newly titled “Economic Development and Tourism Program” (ED&T Program) remains relevant and consistent with the goals of the community.

It is important to note, that while outside impacts and macroeconomic factors have an influence on the economic activities within the City (e.g. inflation, interest rates, etc.), the EDSP focuses on strategies and actions that are able to be implemented by, advocated for, or supported by, the Economic Development and Tourism Program. There are also significant issues that impact the economic health of the community that are part of ongoing City efforts through the Major City Goal work plans such as housing affordability, homelessness response, sustainability, and diversity, equity, and inclusion. The updated EDSP includes strategies and actions that intersect with these and other City programs and require joint action involving the ED&T Program, but the substantive work in those other areas is located in those programs’ respective work plans.

EDSP Update
It was originally planned to update the EDSP in the 2019-20 fiscal year. Due to the pandemic, however, the update was delayed to fiscal year 2022-23. In addition to the general target to update strategic plans every five years, the City’s EDSP needed to be updated for several other reasons:

1. The appropriate strategies and actions from the 2015 update have been completed or operationalized.

2. The general changes in the economic environment, for example, increased online shopping and the consumer focus on seeking experiences rather than purchasing things.

3. The changes in the way people work, not only from the pandemic but also due to generational shifts and the focus on work-life balance.

4. The need to incorporate sustainability, diversity, equity, and inclusion to ensure that economic development planning meets the current and future needs of the community.

Item 7a

5. The internal organizational change to better align economic development and tourism efforts approved in the 2023-25 Financial Plan.

In October 2022, the City released a Request for Proposals (RFP) for the update of the EDSP. The City received 11 responses. Those responses were narrowed to a final vendor via a series of evaluations and interviews by City staff and key community partners.

TIP Strategies, Inc. (TIP) was selected. TIP is a privately held Austin, TX-based firm providing consulting and advisory services to public and private sector clients.

Established in 1995, the firm’s core competencies are strategic planning for economic development, talent strategies, organizational development, resiliency planning, and equity initiatives. TIP is also the consultant on the San Luis Obispo and Santa Barbara County effort to establish a Comprehensive Economic Development Strategy (CEDS) led by REACH.

The City’s update followed TIP’s three-phase planning model: discovery, opportunity, and implementation. The initial discovery phase included an extensive quantitative analysis of the City economy. This economic analysis was supplemented by interviews and focus groups, as well as a community survey that garnered nearly 1,000 responses.

The second phase examined the opportunities available to the City. As part of this process, TIP assessed the City’s current economic development efforts, prioritized potential catalyst projects, and conducted a review of national best practices. The phase culminated with the facilitation of an opportunity workshop with key internal and external partners. The main goal of the workshop was to gain consensus on the overall plan framework and to receive initial feedback on the preliminary goals and strategies.

The implementation phase consisted of prioritizing and refining the goals and strategies and preparing the plan. The draft plan was reviewed by multiple internal and external partners and was posted for public review and comment on the City’s website from June 20th, 2023, to June 26th, 2023. In addition, the City hosted a virtual “First Look” webinar on June 21st, 2023 that was open to all members of the community. The “First Look” session was also recorded and made available online.

Key Findings
The economic analysis and community engagement activities, coupled with multiple onsite visits and the experience of the consulting team, resulted in a number of insights that shaped the update of the EDSP. These key findings played a crucial role in shaping the framework for the plan update. They provided essential insights that helped to guide the recommendations and ensure that the planning effort was grounded in a realistic assessment of San Luis Obispo’s strengths, weaknesses, opportunities, and threats.

1. Quality of place in San Luis Obispo is important to residents, employees, and employers.

2. Diversity, equity, and inclusion, as well as sustainability and resiliency, are important to the community and its continued economic vitality.

3. Cal Poly has a significant influence on the community.

Item 7a

4. San Luis Obispo’s visitor economy is a critical economic driver and is part of a virtuous circle.

5. Systemic challenges impede talent retention and attraction.

6. A continued strategic approach to commercial development should contribute to economic growth.

Plan Framework
Originally adopted in 2012 and revised in 2015, the previous EDSP was centered on the creation and retention of HOH jobs. The plan was built around four pillars: 1) Break Down Barriers to Job Creation; 2) Actively Support Knowledge and Innovation; 3) Promote and Enhance the San Luis Obispo Quality of Life; and 4) Build on Existing Efforts and Strengthen Regional Partnerships. The relevant strategies and actions from the previous EDSP have either been completed or operationalized as of the end of the 2021-22 fiscal year.

For the 2023 EDSP Update, the plan framework has been updated to respond to the dramatic changes that have taken place in the intervening years, both in terms of the City’s internal efforts and the external economic development landscape. These changes include the effects of the economic and social changes resulting from the COVID-19 pandemic; the increasing economic threats posed by the climate crisis and the related economic opportunities created by the transition to a clean energy economy; and the growing attention and value being placed on diversity, equity, and inclusion (DEI) across the economic development community.

Item 7a
The plan has three major components: the mission statement, guiding principles, and major pillars. The mission statement is the primary foundational element of the plan as it sets the tone, provides direction, and informs the development of the strategies in the sections that follow. The guiding principles that emerged from the planning process reflect the impact of the changes outlined above. Guiding principles shape the direction of the plan and are interwoven throughout the strategies and actions.

1. Economic Resilience. Maintaining a dynamic economic and business environment.

2. Equitable and Inclusive Economic Development. Expanding economic opportunities for all residents and businesses in San Luis Obispo.

3. Sustainable Economic Development. Ensuring economic vitality through climate- and system-focused sustainable growth.

4. Holistic Approach. Enhancing internal and external collaboration for effective execution and implementation.

5. Regional Collaboration. Expanding partnerships with organizations across the region.

Finally, the major pillars are the broad focus areas that underpin the overall strategy. The pillars are streamlined and refined to three areas:

1. Business and Entrepreneur Vitality: Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities.

2. Placemaking and Promotion: Maintaining the City’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors.

3. Talent Development and Attraction: Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce.

The plan is also accompanied by an implementation matrix for tracking and reporting.

Implementation and Tracking
The focus on implementation has always been part of the economic development activities in the City. This plan includes an implementation matrix that is similar in format to the Major City Goal work plans. Given the timing with the Major City Goal process for the 2023-25 Financial Plan, all cross-departmental strategies and actions in the EDSP are aligned with the current MCG work plans. Additional one-time funding of $75,000 per year for two years was approved by the Council in the 2023-25 Financial Plan for new economic development work efforts that were not included in the current Major City Goal workplan.

The ED&T program is also fortunate to have operationalized many of the metrics that will be used to track the impact of the work being implemented. These measurements are available on the City’s website where applicable.

Item 7a
The ED&T Program will update the implementation matrix at least quarterly and post the updated version to the City’s website. The ED&T Program will also prepare a memo to Council in the spring of each year and make a presentation to the City Council in the fall of each year in conjunction with the regular update regarding the Tourism Business Improvement District (TBID).

Previous Council or Advisory Body Action
The Tourism Business Improvement District (TBID) Board, the Promotional Coordinating Committee (PCC) and the Human Relations Commission (HRC), all received updates during the process of the EDSP Update.

Public Engagement
In addition to the engagement efforts listed in the table and in section 1 of the plan, there were significant additional outreach measures that were employed, including:

1. A dedicated page on the City’s website

2. Regular updates to all City businesses via email and the City’s social media channels.

3. A “first look” webinar with 40+ participants that was recorded and made available on the City’s website.

4. The draft was available on Open City Hall for review and comment by the general public.

City staff also conducted many one-on-one meetings with community members to address individual questions via email and a web-based form.

Item 7a

CONCURRENCE
The Office of Sustainability and Natural Resources and the Office of Diversity, Equity and Inclusion were engaged throughout the entire process to ensure programmatic alignment.

The Finance and Community Development Departments also played significant roles in the update to the EDSP.

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, which excludes from the definition of "Project" all "Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment."

FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-25
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $150,000 $150,000 $150,000 $0
Total $150,000 $150,000 $150,000 $0

ALTERNATIVES
Council could decide not to approve the update to the Economic Development Strategic Plan. This action is not recommended by staff because the plan is a key component of managing the City’s economic development efforts.

ATTACHMENTS
A - Draft Economic Development Strategic Plan
B - Draft Implementation Matrix

June 2023

ECONOMIC DEVELOPMENT

STRATEGIC PLAN UPDATE

PREPARED FOR THE CITY OF SAN LUIS OBISPO

ACKNOWLEDGMENTS
TIP Strategies would like to extend special thanks to the San Luis Obispo City Council, Steering Committee, City staff, and members of the community who generously gave their time to prepare the City’s Economic Development Strategic Plan Update.

CITY COUNCIL
• Erica A. Stewart, Mayor
• Jan Marx, Vice Mayor
• Emily Francis, Council Member
• Andy Pease, Council Member
• Michelle Shoresman, Council Member

CITY STAFF
• Derek Johnson, City Manager
• Greg Hermann, Deputy City Manager
• Michael Codron, Community Development Director
• Emily Jackson, Finance Director
• Chris Read, Sustainability Manager
• Nestor Veloz-Passalacqua, Diversity Equity &
Inclusion Manager
• Lee Johnson, Economic Development Manager
• Molly Cano, Tourism Manager

CONSULTING TEAM
TIP STRATEGIES, INC., is a privately held Austinbased firm providing consulting and advisory services to public and private sector clients.

Established in 1995, the firm’s core competencies
are strategic planning for economic development,
talent strategies, organizational development,
resiliency planning, and equity initiatives.

CONTACT
TIP Strategies
13492 N Hwy 183, Suite 120-254, Austin, TX 78750
PH: +1 512 3439113
www.tipstrategies.com

PROJECT CONTRIBUTORS
Jeff Marcell, Senior Partner
Alex Cooke, SVP Consulting
Mishka Parkins, Consultant
All images in this document are courtesy of the City of San Luis Obispo.

CONTENTS
SECTION 1.......................................................................................................................................................... 1 Introduction ..................................................................................................................................................... 2 Approach ..................................................................................................................................................... 3 Key Findings ................................................................................................................................................ 5 Plan Framework ........................................................................................................................................... 9 SECTION 2........................................................................................................................................................ 11 Action Plan .................................................................................................................................................... 12 Pillar 1. Business and Entrepreneur Vitality................................................................................................ 12 Pillar 2. Placemaking and Promotion.......................................................................................................... 16 Pillar 3. Talent Development and Attraction ............................................................................................... 19 SECTION 3........................................................................................................................................................ 22 Implementation.............................................................................................................................................. 23 SECTION 4 ....................................................................................................................................................... 24 Context .......................................................................................................................................................... 25 Survey Overview ........................................................................................................................................ 25 Economic Context...................................................................................................................................... 29 SWOT Analysis........................................................................................................................................... 32

City of San Luis Obispo, California

SECTION 1

City of San Luis Obispo, California

INTRODUCTION
Located on the Central Coast of California, the City of San Luis Obispo (the City or SLO) serves as the county seat for San Luis Obispo County and one of the region’s economic centers. The City’s economic development landscape is characterized by a blend of industries, including agriculture, tourism, and education, as well as technology and emerging clean energy sectors. Given its location, agriculture has long been a cornerstone of the local and regional economies. Its Central Coast location, coupled with targeted quality-of-place investments, has also helped the City develop and maintain a strong visitor economy. The City's investment in the Downtown and its proximity to outdoor recreational amenities continue to attract visitors from near and far.

The local economy is further bolstered by the presence of both California Polytechnic State University (Cal Poly) and Cuesta College, which serve as major employers and sources of skilled talent and innovation. The community’s efforts to advance entrepreneurship and innovation have fueled a growing regional tech sector.

Energy and innovation have also been important to the City's economy in the past and will likely be in the future, as regional projects including offshore wind and battery storage, and the innovation ecosystem that supports them, continue to emerge. San Luis Obispo City's economy is currently in a period of growth, with unemployment rates well below the national average and a steady increase in job opportunities.

Despite the City’s economic strengths and assets, it must still contend with local constraints as well as some external threats that are largely beyond its control. Systemic barriers related to affordable housing, for example, are influenced by macroeconomic factors that limit the City’s potential for inclusive economic growth. Rising community concerns regarding the impacts of climate change and community support for diversity, equity, and inclusion require that the City is intentional about how it advances in the coming years.

National and global economic trends also have a significant impact on the City’s growth potential. Interest and inflation rates, along with consumer confidence, all affect the spending patterns of San Luis Obispo residents, businesses, and visitors. While many of these external factors fall outside of the levers accessible by municipal government, there are opportunities to address local challenges through a proactive and strategic approach to economic growth.

In early 2012, San Luis Obispo created its first Economic Development Strategic Plan (EDSP). The intent behind the 2012 EDSP was to improve the City’s economic development function through the creation of targeted strategies aimed at increasing the number of Head of Household (HOH) jobs. A 2015 update later built on the successes of the original EDSP with an additional attention on fostering innovation and creating the infrastructure needed to further spur investment and encourage development. Both planning efforts sought to address a wide range of economic barriers and possibilities for San Luis Obispo. Since the 2015 update, however, both the economic development landscape and the City’s priorities have evolved. Changes from the COVID-19 pandemic, along with the increasing impacts of climate change, have highlighted the need to prioritize not only economic growth but also economic resiliency Citywide. As a result, this update places greater emphasis on the retention of current businesses, the continued expansion of the arts and culture scene, and ongoing efforts to contribute to the vibrancy of Downtown.

The City has also recognized the need to expand the traditional function of economic development to include practices that incorporate sustainability and social equity to maximize the community’s economic vitality. The

City of San Luis Obispo, California

City’s leadership has conveyed its intent to prioritize growth that is beneficial for all residents while also preparing for the opportunities and challenges related to climate change and social justice.

Another notable change relates to the reframing of HOH jobs. Changes in society and community feedback led to revisiting the HOH job classification to assess how well the term aligns with the City’s inclusivity goals and national best practices. The process involved evaluating numerous options to define and track quality jobs. Ultimately, it was determined that using the City’s moderate-income levels as specified in the current Below Market Rate Housing Standards would create greater alignment with an existing reference and be better understood Citywide. The moderate-income guidelines also allow for target income levels to vary based on household size to adjust to changing conditions over time. Adding the + symbol to moderate income represents that jobs with an income level above moderate are welcome and that the other criteria related to the former HOH job classification remain (career ladder, education level and technical skill, employer sponsored benefits, and stability). The resulting quality job indicator going forward, and referenced here, will be Moderate Income+.

This 2023 EDSP update is meant to reflect the City’s new priorities, where appropriate, along with its everevolving economic landscape. Careful consideration was made to ensure that the recommendations that follow fall within the scale and scope of the City’s economic development function. As such, the update is guided by the following goal: “to continue to advance the economic vitality of the City of San Luis Obispo and develop strategies that strengthen the City's economic development efforts while integrating the principles of sustainability, diversity, equity, and inclusion.”

APPROACH
In 2022, the City engaged Austin-based TIP Strategies, Inc., (TIP) to update its Economic Development Strategic Plan (EDSP). The current planning engagement followed TIP’s three-phase planning model:
discovery, opportunity, and implementation.

The initial discovery phase included an extensive quantitative analysis of the SLO economy. This economic analysis (which was delivered as an interactive data visualization) was supplemented by interviews and focus groups, as well as a community survey, which garnered nearly 1,000 responses. An overview of the engagement process is shown in Figure 1. Additional details and findings of the discovery phase tasks are provided in the Context section of the plan.

The second phase examined the opportunities available to SLO. As part of this process, TIP assessed the City’s current economic development efforts, prioritized potential catalyst projects, and conducted a review of national best practices. The phase culminated with the facilitation of an opportunity workshop with internal partners from the City team, including the Office of Sustainability and Natural Resources; the Office of Diversity, Equity, and Inclusion; Community Development; Finance; and the City Manager. External partners from Cal Poly, the San Luis Obispo Chamber of Commerce, Downtown SLO, and the Regional Economic Action Coalition (REACH) also participated in the session. The main goal of the workshop was to finalize the plan framework and receive initial feedback on the preliminary goals and strategies.

The final phase, implementation, consisted of prioritizing and refining the recommendations and preparing the plan. The draft plan was reviewed by multiple internal and external partners and was posted for review and

City of San Luis Obispo, California

comment on the City’s website. In addition, the City hosted a virtual “First Look” session that was open to all members of the community. The “First Look” session was recorded and made available online. The final plan is supplemented by a separate detailed implementation matrix to guide the efforts of the Economic Development & Tourism (ED&T) program over the next five years. This implementation matrix closely mirrors the format that the City currently uses to track all the efforts related to its Major City Goal process. The final draft of the EDSP was approved by the Council on (date will the updated following Council approval).

The Council’s approval is just the beginning of the work to put the plan into motion. To ensure accountability, the ED&T program will update the implementation matrix at least quarterly and post the updated version to the City’s website. The ED&T program will also prepare a memo to the Council in the spring of each year and a make a presentation to the Council in the fall of each year in conjunction with the update to the Council regarding the Tourism Business Improvement District (TBID). Both reporting methods will highlight progress on the plan’s implementation in the coming years.

Figure 1. Community Engagement Overview

COMMUNITY SURVEY ROUNDTABLES INTERVIEWS GENERAL OUTREACH 982
Responses
9 Virtual Sessions
140+
Participants
9 One-on-One Sessions
2 Neighborhood & Real Estate Tours
Relationship to City of SLO
• Live and work 64%
• Live only 11%
• Work only 15%
• Neither live nor work 10%
City of SLO Department Heads &
Key Managers • Downtown •
Development • Arts & Nonprofits •
Major Employers & Business
Owners • Sustainability •
Diversity, Equity, & Inclusion •
SLO Chamber Legislative Action &
Economic Development Committee
SLO County • Madonna
Enterprises • Downtown SLO •
SLO Chamber of Commerce
• Jamestown LP • Cal Poly (2) •
Visit SLO CAL • City of SLO City
Manager’s Office 2
Public Workshops
Source(s): TIP Strategies, Inc.

City of San Luis Obispo, California

KEY FINDINGS
The economic analysis and community engagement activities, coupled with multiple onsite visits and the experience of the consulting team, resulted in a number of insights that shaped the EDSP update. The findings outlined here played a crucial role in shaping the framework for the plan update. They provided essential insights that helped to guide the recommendations and ensure that the planning effort was grounded in a realistic assessment of SLO’s strengths, weaknesses, opportunities, and threats.

Quality of place in San Luis Obispo is important to residents, employees, and employers.

Community engagement revealed a range of assets that help to make SLO a desirable place to live, work, and visit. The City’s natural beauty and small-town charm were often referenced in roundtable discussions. The City's location on the Central Coast of California provides access to beautiful beaches, rolling hills, and scenic hiking trails, which makes SLO an ideal destination for outdoor enthusiasts. A mild climate allows for yearround outdoor activities, making the City a haven for those who enjoy an active lifestyle.

The City has also made intentional efforts to build on its quality of place. These investments range from acquiring land in the greenbelt outside the City and in parks within the City, to active transportation infrastructure and a high-quality built environment, not only in the Downtown but also Citywide. The City has also invested in programs like the Farmers’ Market and Concerts in the Plaza, as well as other arts and cultural events that have provided visitors and residents with a variety of shopping, dining, and entertainment options. Historic landmarks and cultural attractions, such as the Mission San Luis Obispo de Tolosa, San Luis Obispo Repertory Theatre, and the San Luis Obispo Museum of Art, add to SLO’s unique character. The City has also made significant investments to ensure that it is walkable, bikeable, and bus-able, which attracts potential employees and aligns with established equity and climate goals.

In addition to investing in its physical attributes, the City has recognized that diversity, equity, and inclusion (DEI) needs to be prioritized in order to promote a greater sense of belonging within the community. During the public engagement phase of the EDSP update, the City was described by some community members as a welcoming and inclusive place. It was clear from the feedback that residents take pride in the City and are central to fostering a strong sense of community that provides a warm and friendly environment for locals and visitors. Going forward, however, the City will need to continue its emphasis on DEI and sustainable development to improve and maintain its quality of place.

Diversity, equity, and inclusion, as well as sustainability and resiliency, are important to the community and its continued economic vitality.

Since the last update to the EDSP, the community has increasingly highlighted the need to advance growth strategies that reduce social imbalances. Rising income disparities have proven that traditional approaches to economic development do not automatically ensure that the benefits of conventional efforts are distributed equitably. Intentional efforts, that explicitly target vulnerable and disenfranchised communities, are often required to address the systemic barriers and the historical impacts that prevent the full economic participation of all groups. Embracing a diverse and inclusive approach to economic development is not just a matter of fairness and social justice. It is also a strategic imperative for sustainable growth as the economic

City of San Luis Obispo, California

exclusion of any segment of the population lessens the likelihood that the City will reach its full economic potential.

The City’s Climate Action Plan and Climate Adaptation and Safety Element of the General Plan both call for integrating climate change considerations into the Economic Development Strategic Plan. The nexus between climate change and economic development is multifaceted and includes the opportunity to capitalize on the economic development potential of the clean energy transition, the need to mitigate the shocks and disruptions brought by a changing climate on the economic system, and the potential to support businesses as they reduce their own emissions and enhance their own resiliency.

Social equity and sustainability considerations are not unique to SLO as they are also coming to the forefront of national and international economic development planning efforts. Factors like DEI, sustainability, and resiliency are all now considered essential to ensuring that the economic system of a community or region functions at a high level.

Cal Poly has significant influence on the community.

Cal Poly was frequently cited as a significant local asset. As one of the top public universities in California, Cal Poly attracts thousands of students, faculty, and staff from all over the state and beyond, which adds to the community’s diversity. The university is renowned for its traditional undergraduate and graduate programs in engineering, agriculture, business, and science, which aid in producing a highly skilled and educated workforce both locally and regionally. Cal Poly Extended Education programs also aim to upskill and reskill individuals already in the workforce, providing them with the necessary training and certifications needed to enhance their career prospects and contribute to the labor pool with specialized skills.

As one of the City’s major sources of higher-wage jobs, Cal Poly employs a large faculty and staff, who contribute to the local economy through their volunteerism and spending on housing, groceries, dining, and other goods and services. The university’s operations also require a range of support services (such as construction, maintenance, and administration), which further stimulate the local job market.

University students also play a vital role in the economy. They work and volunteer in the community and support the local retail sector by shopping at stores, dining at restaurants and bars, and utilizing various services. Their visiting families also contribute to the local hospitality industry by staying in hotels, eating at restaurants, and exploring the City’s amenities. The students who live off campus increase the demand for rental housing, which benefits local landlords and property owners.

The university serves a vital role in the regional entrepreneurial and business support ecosystem. The Cal Poly Center for Innovation and Entrepreneurship (CIE) and the Cal Poly CIE Small Business Development Center (SBDC) have not only fostered a culture of innovation and championed cleantech advancements, but both have also supported local and regional business creation.

San Luis Obispo’s visitor economy is a critical economic driver and is part of a virtuous circle.

San Luis Obispo is a popular destination for visitors, due to its central location; its diversity of arts, culture, and commercial amenities; and its overall vibrancy and quality of place. While visitors come for the quality of place, they also contribute to it. Visitors help make the City more vibrant and diverse, they help the arts and

City of San Luis Obispo, California

cultural activities be sustainable, and they contribute to the local business community. Almost 70 percent of sales tax comes from visitors as well as 100 percent of the Transient Occupancy Tax, which combines to represent over 40 percent of the City’s general fund budget. These dollars help to fund open space, parks, bike paths, and other amenities that contribute to the quality of place.

Finally, a strong visitor economy contributes to the health of the City’s overall economic development ecosystem. Visitors may return to the community later to live or to start a new venture, helping to balance the outmigration of businesses and residents and the normal churn of businesses.

Figure 2. San Luis Obispo Economic Development Ecosystem Source(s): City of San Luis Obispo.

City of San Luis Obispo, California

Systemic challenges impede talent retention and attraction.

Housing affordability ranks as one of the City’s greatest challenges. The limited supply of housing, limited available land, and high demand due to the area’s desirability have constrained the affordable housing stock.

The City has been a leader in attempting to address these and other systemic challenges through initiatives such as affordable housing development, inclusionary zoning, and preservation of existing affordable housing. Yet the demand for more affordable options still outweighs the supply and more policy incentives and innovation are needed to create workforce and affordable housing. The lack of affordable housing, coupled with the prevalence of retail and hospitality jobs, makes it difficult, and oftentimes impossible, for workers to live in the City. Many who work in the City choose to commute from neighboring areas where housing costs are relatively lower but regional transportation options are limited. Additionally, students who may desire to stay in SLO lack access to jobs that would support residing in the City permanently. Maintaining the balance between economic growth and housing affordability is a challenge across the country and is particularly acute in Coastal California and other desirable locations.

The City continues to address affordable housing and other systemic issues through its Major City Goals and implementation of other specialized plans, such as the Housing Element. By prioritizing activities that are within the City’s control to take action on, participate in, and advocate for, the goal-setting process has proven an effective strategy for tackling these problems. The EDSP takes a similar approach by addressing what the ED&T program can accomplish that is not already adopted in the work program for the City’s Housing and Homelessness Major City Goal.

A continued strategic approach to commercial development should contribute to economic growth.

As mentioned previously, the strong sense of place and opportunities for outdoor recreation are primary reasons that many citizens and businesses choose to locate in SLO. The City has established a legacy of land conservation in the San Luis Obispo Greenbelt to maintain and improve its outdoor assets. Over the past 25 years, the City has taken action to protect nearly 8,000 acres of land through direct purchases of properties, which has preserved natural open space characteristics and maintained recreational opportunities. It has also successfully utilized conservation easements to support agricultural productivity and secure the pastoral setting of farms and ranches on the periphery of the City.

At the same time, the amount of flat land available for development is constrained due to the City’s topography, which is characterized by rolling hills and rugged terrain. As a result, the City’s General Plan goals envision maintaining a compact urban form through infill development and the redevelopment of underutilized sites. This strategy also reflects a prudent approach to land use that avoids costly extension of infrastructure to outlying locations that is ultimately a burden on both the City and private developers. Efforts to balance growth through environmental protection, conservation, and smart urban planning can overcome these challenges and create a “win-win” model of sustainable development.

City of San Luis Obispo, California

PLAN FRAMEWORK
Figure 3. Plan Framework

MISSION STATEMENT
Promote, encourage, and enhance an economic environment that is dynamic and resilient with a focus on sustainable and equitable policies, programs, and processes.

GUIDING PRINCIPLES
Economic
Resilience
Equitable & Inclusive
Economic
Development
Sustainable Economic
Development
Holistic
Approach
Regional
Collaboration

MAJOR PILLARS
Business & Entrepreneur
Vitality
Placemaking &
Promotion
Talent Development
& Attraction
Source(s): TIP Strategies, Inc.

Originally adopted in 2012 and revised in 2015, the previous EDSP was centered on the creation and retention of HOH jobs. The plan was built around four pillars: (1) Break Down Barriers to Job Creation; (2) Actively Support Knowledge and Innovation; (3) Promote and Enhance the San Luis Obispo Quality of Life; and (4) Build on Existing Efforts and Strengthen Regional Partnerships. The relevant strategies and actions from the previous EDSP have either been completed or operationalized as of the end of the 2021–2022 fiscal year.

For the 2023 EDSP, the plan framework has been updated to respond to the dramatic changes that have taken place in the intervening years, both in terms of the City’s internal efforts and the external economic development landscape. These changes include the effects of the economic and social change resulting from the COVID-19 pandemic; the increasing economic threats posed by the climate crisis and the related economic opportunities created by the transition to a clean energy economy; and the growing attention being placed on diversity, equity, and inclusion (DEI) across the economic development community. The plan has three major components: mission statement, guiding principles, and major pillars. The mission statement is the primary foundational element of the plan as it sets the tone, provides direction, and informs the development of the strategies in the Action Plan section.

City of San Luis Obispo, California

The guiding principles that emerged from the planning process reflect the impact of the changes outlined previously. Guiding principles shape the direction of the plan and are interwoven throughout the strategies and actions.

1. ECONOMIC RESILIENCE. Maintaining a dynamic economic and business environment.

2. EQUITABLE AND INCLUSIVE ECONOMIC DEVELOPMENT. Expanding economic opportunities for all residents and businesses in San Luis Obispo.

3. SUSTAINABLE ECONOMIC DEVELOPMENT. Ensuring economic vitality through climate- and system-focused sustainable growth.

4. HOLISTIC APPROACH. Enhancing internal and external collaboration for effective execution and implementation.

5. REGIONAL COLLABORATION. Expanding partnerships with organizations across the region.

Finally, the major pillars are the broad themes that underpin the overall strategy. The pillars are streamlined and refined to three areas: (1) Business and Entrepreneur Vitality; (2) Placemaking and Promotion; and (3) Talent Development and Attraction.

The plan is accompanied by an implementation matrix (as previously mentioned) A memorandum with DEI strategies will be provided prior to the completion of the engagement. The DEI memorandum will provide a potential action list for the City’s Office of Diversity, Equity, and Inclusion that can be referenced in the office’s strategy development process.

City of San Luis Obispo, California

SECTION 2

City of San Luis Obispo, California

ACTION PLAN
PILLAR 1. BUSINESS AND ENTREPRENEUR VITALITY
Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities.

San Luis Obispo is fortunate to be home to a vibrant Downtown and thriving business community. The City has demonstrated a commitment to supporting local businesses and entrepreneurs by maintaining strong relationships with business owners and leveraging partners to deliver resources and technical assistance. The results of these efforts are apparent. From an eclectic mix of retail shops and one-of-a-kind restaurants to boutique wineries, the City supports a wide variety of small businesses that cater to the needs of residents and visitors. The high-tech scene has also been on the rise in recent years due, in large part, to the collaborative efforts of the City, the County, the Chamber, Cal Poly, and the business community to give precedence to growing SLO’s economic base. Through continued assistance and engagement with this group and new partners, such as REACH, the City can further bolster the business support infrastructure, build a diverse entrepreneurial ecosystem, reduce barriers to small business development, and improve business resilience.

1.1. BUSINESS RETENTION AND EXPANSION (BRE). Develop a proactive and targeted approach to identify and address the needs of existing businesses, while creating an environment that fosters growth and innovation.

1.1.1. Continue to work with partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business community through retention, creation, attraction, education, and communication efforts. [M.C.G. 1.2(b)]1

1.1.2. Continue to proactively communicate with the business community on a regular basis as it relates to important economic development programs, opportunities, and activities.

1.1.3. Expand business outreach efforts with a formal BRE program that assists new and existing businesses, monitors employer trends, and pinpoints enterprises and sectors that require support.

1.1.3.1 Establish a business welcome program that provides support to new businesses. This can include everything from welcome materials, business visits and training, and support. The appropriate partners can be included in this process where relevant.

1.1.3.2 Reestablish the business visit program with the Chamber of Commerce (including all businesses) to identify needs of important geographic areas or business sectors in the community.

1.1.3.3 Participate in the Downtown SLO business visits program on a regular basis.

1.1.3.4 Determine the feasibility of an ongoing annual business survey to begin to develop data and trend analysis specific to the City and the business community. 1 Strategies with an M.C.G. tag are included in the 2023- 2025 Major City Goal Work Program. The numbers following M.C.G. indicate the strategic approach number and the letter identifies the related task.

City of San Luis Obispo, California

1.1.3.5 Investigate the use of an existing City technology platform (e.g., Ask SLO) to act as a customer relationship management system to document detailed notes, follow-ups, and touchpoints over time.

1.1.3.6 Continue to maintain relationships with the development real estate community through the Developer’s Roundtable; the Building, Design, and Construction Group; and other formal and informal meetings to understand potential commercial and residential development projects, potential tenants, and upcoming vacancies.

1.1.3.7 Compile information collected from business licenses, surveys, visits, and other sources to track trends among employers and distribute these findings to business support partners, such as business and workforce training providers, as well as other local and regional economic development partners.

1.1.3.8 Highlight the City’s BRE accomplishments to showcase successful economic development efforts, maintain the confidence of the local business community, and encourage continued investment in business support activities. Share success stories of businesses that have expanded and retained operations in the City. Emphasize the impact these businesses have had on the community (e.g., job creation or increased revenue).

1.1.4. Ensure broad and inclusive engagement in area and specific plans updated by the Community Development Department to represent the needs of local businesses. [M.C.G. 1.2(e]

1.1.5. Connect businesses to the SLO Green Business Network and other third-party resources for operational sustainability and efficiency (e.g., electric fleet rebates and lighting rebates).

1.1.6. Provide support to help entrepreneurs, innovators, and new businesses participate in the clean energy transition.

1.2. ENTREPRENEURIAL SUPPORT. Continue to bolster the entrepreneurial ecosystem by improving access to resources, education, and networks for entrepreneurs.

1.2.1. Support the creation of coworking, shared resource facilities, maker spaces, and other innovative ways to lower the barriers to entry and provide additional resources.

1.2.2. Maintain and build on the efforts with the Cal Poly CIE (CIE), which includes the HotHouse and other activities, to help ensure its continued success and the success of the local entrepreneurs it supports. Where possible, increase the promotion of the outcomes from the contributions of the City.

1.2.3. Develop tools to anchor businesses that graduate from the CIE programs and other incubator programs into the community. In addition to the location assistance and other support, address continued access to business support resources and funding.

1.2.4. Maintain support of organizations like the SBDC, the Service Corps of Retired Executives (SCORE), and Softec to address the needs of both startup and existing businesses.

1.2.5. Collaborate with the CIE, the Chamber, REACH, and other partners to conduct familiarization tours with venture capitalists mirroring the successful approach used in the City’s tourism marketing.

City of San Luis Obispo, California

1.2.6. Work with REACH and other partners to promote the region in general and the City specifically as an entrepreneur destination in select markets, such as the Silicon Valley area. Target highgrowth entrepreneurs who do not require a significant amount of operating space to grow.

1.2.6.1 Create a clear message about what the City has to offer entrepreneurs and highlight the City’s values, culture, quality-of-place amenities, and other strengths.

1.2.6.2 Continue to enhance the online presence of the region and the City to attract entrepreneurs and investors.

1.2.6.3 Partner with local organizations to amplify the City’s messaging and reach a wider audience.

1.2.6.4 Publicize current success stories by showcasing successful startups, highlighting innovation in critical industries, and promoting successful entrepreneurs who have made SLO their home.

1.3. BUSINESS PREPAREDNESS, SUSTAINABILITY, AND RESILIENCY. Implement disaster preparedness measures that enhance the City’s ability to respond to economic disruptions and effectively support business recovery following natural disasters and other disruptions.

1.3.1. Build capacity for post-disaster recovery by working in conjunction with the emergency management function to develop a plan for business preparedness and recovery. The resulting plan, at minimum, should provide the following.

1.3.1.1 Continue to build on existing education efforts around natural disasters identified in the City’s Local Hazard Mitigation Plan and relevant hazard mitigation resources.

1.3.1.2 Increase the business community’s awareness of the City’s emergency management preparation and response protocols related to business operations, in advance of disruptive incidents.

1.3.1.3 Outline a protocol for business re-entry in the event of an evacuation or temporary business closures. Establishing a tiered re-entry system will help to ensure an orderly return to operations by clarifying which businesses and industries are to be prioritized for reentry.

1.3.1.4 Include a communications plan for keeping businesses informed before, during, and after a disaster.

1.3.1.5 Specify the roles and responsibilities of business support partners pre-disaster, during, and post-disaster.

1.3.2. Leverage partners, such as the SBDC and Downtown SLO, as well as the Chamber, to improve business disaster preparedness, awareness, and response.

1.3.2.1 Increase awareness of the need for, and benefits of, continuity planning through seminars, workshops, webinars, or other educational programs.

1.3.2.2 Expand the continuity planning resources on Slocity.org. Videos or recordings of previous training sessions will increase accessibility for business owners who do not have the time to attend live training.

City of San Luis Obispo, California

1.3.3. Partner with the SBDC to evaluate post-disaster funding options and increase local business awareness of federal post-disaster financial resources, such as US Small Business Administration disaster loans.

1.3.4. Facilitate the communication of City programs that support preparedness, sustainability, and resiliency to the business community, including but not limited to fire and disaster preparedness, water conservation, building retrofit, and waste management.

1.3.5. Advocate for regional transportation initiatives and other solutions that support lower cost, more sustainable, and more efficient transportation and infrastructure for employees and businesses.

1.4. SMALL BUSINESS DEVELOPMENT. Continue to support the small business community to sustain growth.

1.4.1. Continue activations, promotions, and programs like "Buy Local Bonus," "Eat Local Bonus," and "Shop Local" to build economic resiliency throughout the City and including Downtown. [M.C.G.

1.2(a)]

1.4.2. Encourage business development in sectors that support the long-terms goals of the City as it relates to sustainability and diversity, equity, and inclusion. These efforts should be made in addition to the City’s targeting of traditional businesses sectors, like clean tech, green tech, specialized manufacturing, professional services, and healthcare. For example, the City can target and foster businesses that rely on new technologies related to sustainability or support the creation of new businesses through creator spaces, pop-ups, shared kitchens, food truck support facilities, maker markets, and other similar types of concepts that lower the barriers to entry for enterprising individuals and teams.

1.4.3. Use information gathered from the business license demographic questions to reach out to specific types of businesses to help determine the unique needs of minority-owned businesses and develop a plan to address identified challenges with assistance from relevant partners. To be successful, minority businesses often need additional access to capital, targeted mentorship and training, and increased networking opportunities with their peers.

1.4.4. Encourage and promote inclusive business practices Citywide by capturing and showcasing best practices discovered from the DEI Business Grant program and other relevant programs.

Share and distribute creative solutions to the broader business community.

1.5. BUSINESS SUPPORT INFRASTRUCTURE. Maintain efforts to develop and grow business support infrastructure and tools.

1.5.1. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan. [M.C.G. 1.1(b)]

1.5.2. Continue to partner with the Office of Diversity, Equity, and Inclusion (DEI) to implement the economic development related actions in the DEI Major City Goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP). [M.C.G. 1.1(c)]

1.5.3. Leverage information gathered from surveys, business visitations, insights from local partners, and other sources to determine business support gaps and monitor improvements over time.

City of San Luis Obispo, California

1.5.4. Ensure awareness of business support and economic development resources, especially within minority communities and among business owners who are new to the area or may have language barriers.

1.5.5. Build on efforts to improve the entitlement and permitting processes. Continue to make improvements, as needed, based on data and community feedback.

1.5.5.1 Attend the Developer’s Roundtable events and other economic development related sessions.

1.5.5.2 Support the new Community Development Department and Community Services leadership on process improvements

1.5.6. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools. Report recurring performance measures or permit processing times during General Plan Annual Report. [M.C.G. 1.2(d)]

1.5.7. Represent the interests of the business community during the implementation of the broadband strategic plan. [M.C.G. 1.2(j)]

1.5.8. Continue to advocate for solutions to macroeconomic and systemic issues, like housing, transportation, and childcare, in line with the City’s legislative platform, in economic development related settings at the local, regional (REACH), super-regional (Uplift the Central Coast), and state levels.

PILLAR 2. PLACEMAKING AND PROMOTION
Maintaining the City’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors.

Quality of place was referenced frequently by community members as one of the City’s greatest strengths.

The intentional design and management of public spaces coupled with the creation of unique experiences have fostered a strong sense of place for the City’s residents and visitors. Mission Plaza serves as a hub for community events and a gathering spot for visitors and locals. The Thursday Night Farmers’ Market draws thousands of visitors each week, and the area’s variety of recreational activities are a magnet for outdoor enthusiasts. In addition to implementing these and other effective placemaking initiatives, the City has successfully articulated the SLO brand to visitors. There are, however, opportunities to leverage existing tourism efforts to strengthen the quality of place experienced by all City residents as well as to attract talent and businesses. Placemaking and promotion, with an emphasis on inclusion, will play an important role in positioning San Luis Obispo to meet the goals of the City’s DEI efforts.

2.1. QUALITY-OF-PLACE PROMOTION. Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest.

2.1.1. Continue to promote the City to tourists, visitors, and locals through the efforts of the TBID and the PCC. [M.C.G. 1.2(c)]

2.1.1.1 Support activities as outlined in the City’s Tourism Business Improvement District (TBID) Strategic Marketing and Business Plan and sustain promotional activities targeted toward visitors and locals through continued engagement with the TBID and the Promotional Coordinating Committee (PCC).

City of San Luis Obispo, California

2.1.2. Ensure that the City’s efforts related to sustainability and open space protection (as documented in the CAP) and DEI (as documented in the forthcoming DEI Strategic Plan) are incorporated into the ED&T work program, as appropriate.

2.1.3. Ensure continued messaging alignment with Visit SLO CAL where appropriate.

2.1.4. Elevate the unique identity of each neighborhood to increase awareness of amenities beyond the Downtown core.

2.1.4.1 Develop and promote an identity for each neighborhood that reflects its culture and history.

2.1.4.2 Showcase and support neighborhood businesses through marketing and promotional efforts.

2.1.4.3 Involve residents in the process of identifying and celebrating the unique attributes and character of their neighborhoods. Convene interested parties in the neighborhood to discuss priority economic development and tourism opportunities.

2.1.4.4 Empower neighborhood leaders or identify champions to take an active role in highlighting the unique characteristics of their communities.

2.2. WELCOMING ENVIRONMENT. Create an inclusive and friendly environment for residents, workers, and visitors.

2.2.1. Personalize the SLO experience and advance the “Live the SLO Life” brand by leveraging storytelling.

2.2.1.1 Highlight diverse residents, visitors, business owners, and employees to share testimonials of their experiences in SLO. This could be individuals sharing stories of their business, occupation, hobbies, personal history, or experience with local events and destinations. These stories can then be shared on social media platforms.

2.2.1.2 Manage online sources that highlight local information—including Wikipedia pages for the City—and ensure they reflect the “Live the SLO Life” brand.

2.2.2. Highlight the diverse culture, history, assets, and amenities of the City to help foster a sense of inclusion.

2.2.2.1 Leverage the History Center of San Luis Obispo County and other community partners in telling the SLO story.

2.2.2.2 Publicize historical or cultural landmarks that represent diverse communities.

2.2.2.3 Continue to support cultural events that celebrate the various cultures within the City through the Cultural Grants-in-Aid Program (GIA) and the Tourism and Community Promotions Program.

2.2.2.4 Partner with local business that reflect the diversity of the City.

2.2.3. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors, and homelessness support. [M.C.G. 1.3(c)]

2.2.4. Continue to work with Downtown SLO to build on the success of the historic Thursday Night Farmers’ Market and the Concerts in the Plaza program.

City of San Luis Obispo, California

2.2.5. Enhance both the virtual and the physical wayfinding between the various areas of the City and Downtown.

2.3. DOWNTOWN VITALITY. Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses.

2.3.1. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and vitality of the Downtown. [M.C.G. 1.3(a)]

2.3.2. Continue to financially and operationally support Downtown SLO during the winter holidays including incentivizing private participation through the matching program. [M.C.G. 1.3(b)]

2.3.3. Restart discussions with partners regarding the potential of a conference facility and explore potential funding structures (i.e., public, private, or public-private partnership).

2.3.3.1 Determine additional sites to be added to the current feasibility study.

2.3.4. Support innovative and alternative funding methods and service models to address the needs of the Downtown area.

2.3.5. Support opportunities that speed the implementation of the Downtown Concept Plan.

2.3.6. Develop a Council Report and Study Session on downtown vacancies, the status, and possible options to address any issues identified. [M.C.G. 1.3(d)]

2.4. CULTURAL VITALITY. Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City.

2.4.1. Develop a Council Memorandum on the current base level of economic support for Arts and Cultural activities across the various departments in the City. [M.C.G. 1.4(h)]

2.4.2. Continue to financially support the Arts and Cultural activities of the City through the PCC's GIA program and the additional grant funding via the PCC. [M.C.G. 1.4(d)]

2.4.3. Investigate the alignment of artistic and cultural initiatives across the City.

2.4.4. Ensure that the City promotes the various City and privately owned art installations through programs like the public art promotional plan developed by the PCC. [M.C.G. 1.4(c)]

2.4.5. Engage the Office of DEI to develop initiatives that encourage increased participation in arts programming by underserved groups, including youth.

2.4.6. Continue to work with community partners to ensure the cultural vitality of the City. [M.C.G.

1.4(a)]

2.4.7. Continue the Citywide banner program. [M.C.G. 1.4(e)]

2.4.8. Evaluate additional opportunities to expand support of the cultural vitality of the community as part of the 2025–2027 goal-setting process.

2.5. INCLUSIVE NEIGHBORHOOD PLANNING. Encourage inclusive neighborhood planning efforts that benefit residents and encourage both housing production and economic activity.

2.5.1. Maintain joint efforts with the Community Development Department and other partners to communicate the need to increase the supply of workforce and multifamily housing by supporting the implementation of the City’s Housing Element Policies and Programs as they align with the City’s Major City Goals.

City of San Luis Obispo, California

2.5.2. Evaluate a more structured community-based neighborhood planning effort with the Community Development Department and the Community Services Group for inclusion in the 2025–2027 goal-setting process.

2.5.3. Advocate for greater accessibility to commercial centers, jobs, open spaces, amenities, hospitals, and schools as outlined in the City’s various planning documents, like the Conservation and Open Space Element, Parks and Recreation Blueprint for the Future, and Active Transportation Plan.

2.5.4. Support the development and expansion of multimodal transportation solutions that encourage access to and around Downtown as well as between residential and commercial corridors.

Options should address the following.

2.5.4.1 Aligning with the City’s sustainability goals.

2.5.4.2 Expanding mass transit by increasing frequency of service and providing more routes.

2.5.4.3 Integrating different modes of transportation, such as shared bikes or electric scooters.

2.5.4.4 Improving the pedestrian and cycling infrastructure.

PILLAR 3. TALENT DEVELOPMENT AND ATTRACTION
Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce.

Talent development and attraction are important considerations for any community looking to grow and thrive in today's competitive economy. Cal Poly and Cuesta College play a pivotal role in training and developing new talent in the City. Both institutions also contribute to attracting skilled talent by providing higher education employment opportunities. Another fundamental initiative in talent attraction is the SLO Partners program, which trains workers in high-demand fields, like advanced manufacturing and information technology. The program offers paid apprenticeships and training programs, which help to draw new talent to the area, while also providing local businesses with the skilled workers they need to grow and thrive. While the region/community has notable workforce development resources, significant barriers to talent attraction and retention remain. The most significant of these hurdles are the availability of affordable housing and the prevalence of lower-wage jobs. Over time, however, and with continued investment, the region can strengthen the talent pipeline and address barriers to attracting skilled labor to help balance the need for new talent to support the system and the additional housing required.

3.1. SYSTEM DEVELOPMENT. Encourage the continued strengthening of the system to create Moderate Income+ jobs.

3.1.1. Continue to update the employment scorecard and the economic activity scorecard. [M.C.G.

1.1(e)]

3.1.2. Promote and increase awareness of Moderate Income+ jobs with existing and potential employers.

3.1.2.1 Work with the Chamber to recruit local business leaders willing to speak out on the need for improved job quality as a driver of inclusive economic growth with their peers.

City of San Luis Obispo, California

3.1.3. Prioritize support for talent development efforts that target occupations offering higher wages and benefits. Leading occupations within the City that fall at or above Moderate Income+ wage levels include registered nurses, professionals, sales representatives, and managers.

3.1.4. Partner with industry and workforce training providers and encourage the County to broaden and measure the effectiveness of the Workforce Investment Board (WIB) to proactively identify and address skilled labor gaps.

3.1.5. Investigate ways to determine a proxy measurement to track progress of growing Moderate Income+ jobs.

3.1.6. Work with local employers to identify and promote professional and career development opportunities for workers outside the workplace.

3.1.7. Continue to support new and expanded private childcare options through the use of grant funding and other programs. [M.C.G. 1.2(g)]

3.1.8. Initiate an update to the zoning regulations, with Community Development leaders, to further incentivize and streamline the review and permitting of day care centers, including consideration of relaxed property development standards.

3.1.9. Proactively evaluate opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer-supported childcare programs. [M.C.G. 1.2(i)]

3.2. EMPLOYER AND EMPLOYEE INTEGRATION. Develop methodologies, tools, and programs to welcome and acclimate new employers and employees to the community.

3.2.1. Promote the availability of the coworking space available to remote workers and home-based business owners. Coworking spaces help to foster a sense of community and connect workers to potential clients, partners, and mentors.

3.2.2. Develop relationships with the coworking facilities to promote opportunities to engage with and contribute to the community.

3.2.3. Maintain and expand partnerships with the Chamber on initiatives like the SLO Onboarding Assistance Resource (SOAR) program that help to attract and retain talent.

3.2.4. Investigate with partners opportunities to develop programs and tools to help engage new employees.

3.3. TALENT ATTRACTION AND RETENTION. Position the City as not just a place to visit but also a desirable location to live and work.

3.3.1. Leverage existing tourism marketing materials and strategies detailed in the TBID marketing plan to support any new talent attraction efforts. Expanding the use of the “Live the SLO Life” brand personality beyond targeting visitors can appeal to talent who values an active outdoor lifestyle and charming small-town feel.

3.3.2. Enhance collaboration with local and regional partners to showcase the unique selling points of the City, such as its natural beauty, the vibrant arts and culture scene, and recreational activities.

This will help to create a compelling message that resonates with individuals seeking locations with a high quality of place.

3.3.3. Facilitate stronger connections among students, employers, and the broader community to help retain graduating high school and college students. Work with K–12, Cal Poly, and Cuesta