San Luis Obispo City Council
August 15, 2023

SPECIAL PROVISIONS

SPECIAL PROVISIONS
12 restraint shall be achieved by the use of restrained couplings as shown on the plans and as described herein, or if not shown, through installation of external joint restraints, 1700 Megalug harness, or approved equal. Thrust restraints on existing steel or cast iron piping shall be accomplished with the installation of joint restraints, Series 1100 HD Megalug Restraints by EBAA Iron, Inc., or approved equal. Provide thrust blocks to all fittings greater than 11.25 degrees in addition to other required joint restraints.

Mechanical joint fittings shall be fully restrained by the use of mechanical joint restraints. Mechanical joint restraints for PVC C900 pipe shall be 2000PV Megalug restraints by EBAA Iron, Inc., or approved equal. Mechanical joint restraints for ductile iron pipe shall be 1000 Megalug restraints by EBAA Iron, Inc., or approved equal.

Field closure connections for restrained joints: Pipe cut in the field where necessary and when favorably reviewed by the Engineer shall be connected by one of the following methods:
• Series 3800 Mega-Coupling by EBAA Iron, Inc.
• Series 2100 restrained flange adapter by EBAA Iron, Inc. • Mechanical joint sleeve complying with the Standard Specifications with two Series 1100 Megalug Restraints by EBAA Iron, Inc.
• JCM Industries 219 coupling, or approved equal.
• Romac 400RG restrained transition coupling, or approved equal. • Romac Alpha restrained coupling, or approved equal.

Add Section 77-2.02I Coatings:

Where standards of surface preparation are described by citing SSPC specification numbers, reference is made to the current edition of the “Steel Structures Painting Manual” Volume 2 published by the Steel Structures Painting Council.

Prior to ordering material, submit a complete schedule of materials to be used.

Include manufacturer's brand name, product name, and designation number for each coat of each system to be used. Provide Material Safety Data Sheets (MSDSs) for all products. Coatings used in each system to be the product of one manufacturer.

All work, material, procedures, and practices under this Section shall conform with requirements of the local Air Resources Board or Air Quality Management District having jurisdiction. Prime or finish coat painting done in locations other than the project site shall be in accordance with air quality regulations in effect at the place the coating is applied. Products specified herein are, to the best of the Engineer's knowledge, in compliance with the applicable volatile organic compounds (VOC) levels allowable at the date these Specifications were issued for bid. If the Contractor applies coatings that have been modified or thinned

SPECIAL PROVISIONS

SPECIAL PROVISIONS
13 other than as recommended by manufacturer, the Contractor will be responsible for any fines, costs, remedies or legal actions that may result.

Deliver all coating materials in unopened containers with manufacturer's label, which must include name, batch number and date and VOC content. Store in an assigned area onsite with concurrence from the coating manufacturer. Maintain storage area clean and fire safe. Dispose of used rags, thinner and buckets daily. Store solvents in closed approved storage containers. Submerge solvent soaked rags in water.

Protect all surfaces adjacent to, or downwind of Work area from overspray.

Contractor shall be responsible for any damages resulting from overspray.

Protect working parts of mechanical and electrical equipment from damage.

Colors are to be factory mixed, using light-fast colorants proportioned by accurate measurement into proper type base. All coatings must be formulated to perform in the climate and environment to which they will be exposed.

Prepare surfaces to be coated as follows:
• Previously coated and installed surfaces: SSPC-SP2, "Hand Tool Cleaning."
• Newly installed ductile iron surfaces: SSPC-SP3, "Power Tool Cleaning."
Exterior above grade piping shown on the plans to be coated shall be coated with a high solids epoxy coating, minimum of 12 mils dry film thickness, followed by an aliphatic polyurethane, minimum 2 mils dry film thickness.

High Solids Epoxy shall be Amerlock 400, Tnemec Series 135, or approved equal. Aliphatic Polyurethane shall be Amercoat 450 H, Tnemec Endura-Sheild Series 72, or approved equal. Provide color samples to City for review and approval.

Colors shall match existing coatings on the pipe on the exterior of the Bishop Street Pump Station.

Apply all material in strict accordance with manufacturer's instructions. Apply first coat immediately after surface preparation. Keep all paints at a consistency and applied in accordance with the printed directions of the manufacturer. The painting shall be done by hand, spray or roller as approved by the Engineer in conformance to individual paint manufacturer's recommendations. All painted surfaces are to be free from drips, ridges and brush marks. Thinning permitted only when recommended by the manufacturer and only with thinner recommended for use with the particular product. The use of additives to improve working characteristics or to lengthen or shorten set time is prohibited. Apply each coat to a uniform, even coating; lay material on in one direction and finish at

SPECIAL PROVISIONS

SPECIAL PROVISIONS
14 right angles. Allow material to thoroughly dry between coats. Scuff, sand and remove all runs, sags, overspray, surface roughness and other defects between each coat. Dust and wipe surface clean before applying next coat. Redo any imperfect work. Apply not less than the number of coats or dry film thickness specified. Apply additional coats if required for uniform coverage, full hiding, and to achieve film continuity. Finished work to be uniform in color, full coverage, smooth and free of sags and brush marks. Apply the last finish coat on all work after all major construction is complete and the work areas have been cleaned up and are dust free.

Add to Section 77-2.03H Existing Waterlines:

If, at any point during the project, a trench is excavated such that an existing active waterline is within 5 feet of the wall of the trench, the Contractor shall provide shoring as necessary to prevent movement of existing waterlines. Any material, including soil, pavement, aggregate, existing trench bedding, or existing backfill material, that falls into the pipeline trench from the surrounding area, as well as the restoration, repair, backfill, pavement or other work related to the location of existing utilities shall be the responsibility of the Contractor, and no additional payment will be made.

The Contractor shall submit a tie-in plan, which shall be reviewed and accepted by the Engineer prior to any shutdown of existing waterlines. The plan shall detail the Contractor’s staffing levels, tie-in materials, equipment to be on site during tie-in procedures, and step-by-step plan for completing all tie-ins within the allotted times.

The Contractor shall coordinate with the City to shut down waterlines. Contractor shall notify the Engineer a minimum of 5 working days prior to any waterline being taken out of service.

The Contractor should assume that a complete shutdown of the existing water system cannot be completed, and all tie-in work will be completed in wet conditions.

The Contractor shall ensure necessary labor, materials, and equipment including pumps to complete this work are on-site.

Tie-ins shall be completed within eight (8) hours from the time water is turned off until water supplies are restored. The Contractor will be assessed liquidated damages in the amount set forth in this section for each hour or portion thereof for which the reinstatement of water supplies is delayed beyond 8 hours.

Tie-In Liquidated Damages:

The fixed liquidated damages amount is hereby established as $500 per hour for each hour in excess of 8 hours that the existing 12” waterline or 16” waterline is not in service during the first and second phases of tie-ins. The City will notify the Contractor when the 8 hour period begins and ends.

SPECIAL PROVISIONS

SPECIAL PROVISIONS
15 Add to Section 77-2.03H(1) Abandonment of Waterlines:

All abandoned waterlines encountered entirely or partially within the trench section for the new waterline shall be removed and disposed of in compliance with all federal, state, and local regulations. The active/abandoned status of all waterlines have been shown on the plans to the best of the City’s knowledge. The Contractor shall notify the City immediately if any waterline shown as abandoned is found to be active. Any increase in excavation, pavement, markings, striping, or other work necessitated by the removal of existing abandoned waterline partially within the trench section shall be the responsibility of the Contractor, and shall be at no additional cost to the City.

Add to Section 77-2.03J(3) Testing:

Water used for filling, testing, and disinfecting the waterline shall be obtained from a potable water fire hydrant. No meter is required for City water obtained from a hydrant. Contractor shall coordinate with City Water Distribution staff for potable water hydrant use.

Add to Section 77-2.04 Payment:

Payment for COMPLY WITH OSHA shall include full compensation for furnishing all labor, materials, tools, equipment, personnel, medical screening and incidentals, including shoring and all trench stabilization, and for doing all the work involved to comply with all OSHA regulations pertinent to the types of work to be done under this contract, including preparation of worker protection plan required by Sections 6705 and 6707 of the Labor Code, and no additional compensation shall be allowed therefor.

DIVISION IX TRAFFIC CONTROL DEVICES
84 MARKINGS
Add to Section 84-2.03C Application of Stripes and Markings:

Preformed thermoplastic is only allowed with the approval of the Engineer.

Replace Section 84-2.04
Full compensation for work specified in Section 84 and applicable Engineering Standards is by lump sum payment. The contract lump sum price shall include full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and for doing all the work involved in surface preparation, coating application, testing, complete and in place, as shown on the plans, and as specified in the Standard Specifications, these Special Provisions, and as directed by the Engineer.

DIVISION XIII APPENDICES

SPECIAL PROVISIONS

SPECIAL PROVISIONS
16

APPENDIX

APPENDIX
0 APPENDIX A - FORM OF 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 COMPANY NAME (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
Johnson Avenue 16 Inch Waterline Replacement Project Phase 1, SPEC NO. in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.

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

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

Item
No.

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

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

11.

APPENDIX

APPENDIX
1 12.

BID TOTAL: $ .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.

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

APPENDIX

APPENDIX
2 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.

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.

CITY OF SAN LUIS OBISPO
A Municipal Corporation

__________________________________
Derek Johnson, City Manager
APPROVED AS TO FORM CONTRACTOR:

Name of Company
________________________________

By:________________________________
J. Christine Dietrick
City Attorney
Name of CAO/President
Its: CAO/PRESIDENT
(2nd signature required if Corporation):

By:________________________________
Name of Corporate Officer
Its: ____________________

APPENDIX

APPENDIX
3 APPENDIX B – SHUT DOWN MAPS

Shutdown No. 1 – Ella/Binns Shutdown Overview Map

Shutdown No. 1 – Ella/Binns Shutdown Map 1
Shutdown No. 1 – Ella – Binns Shutdown Map 2

Shutdown No. 2 – Sierra/Ella Shutdown Map

Shutdown No. 3 – Johnson – Iris High Pressure Tie-in Map 1 Note: City will provide temporary highline to surgery center at French Hospital during Johnson to Iris Shutdown.

Shutdown No. 3 – Johnson – Iris High Pressure Tie-in Map 2

Shutdown No. 3 – Johnson – Iris High Pressure Tie-in Map 3

Shutdown No. 4 – Ella Tie-in Shutdown Map 1
Shutdown No. 4 – Ella Tie-in Shutdown Map 2

Shutdown No. 5 – Iris Tie-in Shutdown Overview Map

Shutdown No. 5 – Iris Tie-in Shutdown Map 1
Shutdown No. 5 – Iris Tie-in Shutdown Map 2

Shutdown No. 6 - Bishop/Sierra Tie-In Shutdown Map

Shutdown No. 7 - Bishop – Agusta Shutdown Map 1
Shutdown No. 7 - Bishop – Agusta Tie-in Shutdown Map 2

Shutdown No. 8 – Bishop – Johnson Tie-in Overall Map

Shutdown No. 8 – Bishop – Johnson Tie-In 1
Shutdown No. 8 – Bishop – Johnson Tie-in 2

Shutdown No. 9 - 6” in Bishop Pump StaƟon Easement 6” Abandonment Shutdown Map

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING USE OF THE WATER FUND

UNRESERVED WORKING CAPITAL FUND TO SUPPORT THE
JOHNSON WATERLINE REPLACEMENT – IRIS TO BISHOP,
SPECIFICATION NUMBER 2000578
WHEREAS, in June of 2022, City Council approved the 2022-23 Budget Supplement Plan, which identified the Johnson Waterline Replacement – Iris to Bishop (Project) with a budget of $180,000 for design efforts; and WHEREAS, in June of 2023, City Council approved the 2023-25 Financial Plan and appropriated $3,300,000 in the 2023-24 budget to support construction efforts of the Johnson Waterline Replacement – Iris to Bishop project (2000578); and WHEREAS, the Project’s total construction cost is estimated to be $5,010,000; therefore, an additional $1,710,000 is needed to fund the construction contract; and WHEREAS, the Project involves the replacement of corrugated metal pipe totaling a cost of $165,000 that will be funded through a transfer from the Storm Drain Annual Asset Maintenance Account’s (2090742) available balance of $350,894; and WHEREAS, to partially fund the additional Project costs, $1,061,031 will be transferred in from the Recycled Water Broad Street – Tank Farm to Aerovista project (2000528); and
WHEREAS, to cover the remaining budget needed to support the construction contract, staff recommend that City Council appropriate $483,969 from the Water Fund Unreserved Working Capital Balance to Project 2000578; and WHEREAS, the Water Fund has an Unreserved Working Capital balance of $10,172,837.

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

Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 1. The City Council appropriates $483,969 from the Water Fund Unreserved Working Capital Balance to the Johnson Waterline Replacement – Iris to Bishop project account 2000578.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _____________________ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Item 5f
Department: Community Development
Cost Center: 4006
For Agenda of: 8/15/2023
Placement: Consent
Estimated Time: NA
FROM: Timmi Tway, Community Development Director
Prepared By: Michael Loew, Deputy Director/Chief Building Official SUBJECT: AUTHORIZATION TO AMEND THE “BUY LOCAL BONUS” PROGRAM TO

INCLUDE INCENTIVES FOR PARTICIPATING IN CUSTOMER

SATISFACTION SURVEY

RECOMMENDATION
Authorize the City Manager to amend the “Buy Local Bonus” Memorandum of Understanding with the San Luis Obispo Chamber of Commerce to include the purchase of gift cards as an incentive for participating in the Community Development Department customer satisfaction survey in an amount not to exceed $600.

POLICY CONTEXT
The 2023-2025 financial plan identifies “excellent customer service” as a strategic goal for the Community Development Department (CDD). One of the key performance indicators to measure staff’s success in this area is to verify customer satisfaction through survey data. Staff uses the survey data to adjust business processes, and greater participation in the survey is necessary to ensure that staff is making business process improvements based on experiences shared by all customers. Furthermore, the survey now includes optional demographic questions so that staff can analyze the data to also ensure that all customers receive the same level of service. Therefore, more participation would benefit operations, and thus the public, by informing staff of actual customer service needs in areas that are accurately identified as unsatisfactory by survey participants.

Section 805 of the City Charter permits the use of public funds in the form of grants when it serves as a public benefit. Greater participation in the survey would ultimately be to the benefit of the public for the reasons stated above; additionally, staff is recommending using this incentivization for survey participation as another opportunity to contribute to local economic recovery efforts that are necessary as a result of the unprecedented impacts of Covid-19. Therefore, staff recommends amending the MOU with the Chamber to use the Buy Local Bonus program as a vehicle to deliver the incentive to the public to contribute to the same economic recovery initiative.

DISCUSSION

Item 5f
Background
Community Development staff is working with Information Technology (IT) staff to implement more transparent business processes. The Community Development Department (CDD) has several Key Performance Indicators (KPI) to measure CDD staff’s success in providing excellent customer service. One KPI is to provide satisfactory customer service, which is measured by a voluntary survey that is sent to customers during the building and planning application process and after inspections.

Incentive Program
During the 2021-2023 Financial Plan period, the Community Development Department issued 5,629 unique permits and reviewed 675 unique planning applications. Customer satisfaction surveys were sent to applicants for each of these applications through an automatic email. During that same time, staff received only 79 survey responses, equating to a 1.25% response rate. In order to encourage greater participation, staff is proposing to create an incentive program that will allow survey participants to voluntarily enter a drawing managed by the Chamber of Commerce for a 50-dollar gift card to a local business.

Survey respondents who wish to enter the drawing will provide their email at the time of survey submission. Each month, for a total of 12 months, CDD staff will be notified of a random winner selected by an automated database process configured by IT staff. The winner will have the opportunity to claim one gift card through the Chamber. Survey respondents who were not selected will remain in the pool to be considered in the proceeding months. While individuals may submit multiple surveys if they have multiple applications into the department, they will not be eligible to win multiple times throughout the duration of the Incentive Program.

Previous Council or Advisory Body Action
On July 7, 2020, City Council authorized the City Manager to enter into various contracts and program expenditures for Community Promotions based on the recommendations of the Promotional Coordinating Committee. This authorization resulted in a Memorandum of Understanding with the SLO Chamber of Commerce.

On December 14, 2020, the City Manager executed a Memorandum of Understanding with the Chamber to create the “Shop Local Incentive” Program.

On November 15, 2022, the City Manager executed a new Memorandum of Understanding with Chamber to create the Buy Local Bonus Program (Attachment B) Public Engagement
No public engagement has been done for this item; however, the public will have an opportunity to comment on this at the meeting. Furthermore, any individual who submits an application to the Community Development Department receives an email requesting their participation in the customer satisfaction survey.

Item 5f

CONCURRENCE
The Economic Development team supports this approach and MOU amendment.

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

FISCAL IMPACT
Budgeted: No Budget Year: 2023-2024
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $600 $ $
State
Federal
Fees
Other:

Total $NA $600 $NA $NA
Staff is proposing that this one-time expenditure be funded through discretionary spending accounts within the current fiscal year’s operating budget.

ALTERNATIVES
Council could decide not to approve the amendment to the current MOU and not authorize staff to incentivize survey participation. This action is not recommended by staff because greater survey participation will yield more accurate data that informs staff on how to better serve the community and customers of the Community Development Department.

ATTACHMENTS
A - Draft Amendment to the MOU with SLO Chamber of Commerce B - Buy Local Bonus MOU between the City and the Chamber

AMENDMENT TO AGREEMENT NO. 1
THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on _______________________________, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, the SAN LUIS OBISPO CHAMBER OF COMMERCE, a California non-profit organization (herein referred to as “the Chamber”).

WITNESSETH:

WHEREAS, on November 15, 2022, the City entered into a Memorandum of Understanding with the Chamber regarding a Buy Local Bonus (the “Agreement”); and WHEREAS the Buy Local Bonus in the form of business grants to acquire gift cards for those who shop local, is intended to stimulate the local economy because of the lasting negative impacts to local businesses because of the COVID-19 pandemic; and WHEREAS amending the Agreement is necessary to include additional incentives in Buy Local Bonus for participation in the Community Development Department customer satisfaction survey; and
WHEREAS the survey incentive is considered a benefit to the public by increasing survey participation so that the city can be accurately informed when adjusting business processes to improve customer service;
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. The Agreement, under Section 2 (b), shall also include the acquisition of gift cards for those who are identified by the city as the randomly selected participants of the Community Development customer satisfaction survey.

2. All other terms and conditions of the Agreement remain in full force and effect.

Amendment to Agreement No. 1 with the Chamber of Commerce Amendments to “Shop Local Incentive” Program

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

CITY OF SAN LUIS OBISPO SAN LUIS OBISPO CHAMBER OF

COMMERCE
Derek Johnson,
City Manager
Jim Dantona,
President & Chief Executive Officer
Date: Date:

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CHAMBER OF COMMERCE REGARDING THE FY 22-23 BUY LOCAL BONUS

PROGRAM
This Memorandum of Understanding (“Agreement”) is entered into on ____________ (the “Effective Date”) by and between the City of San Luis Obispo, a municipal corporation and charter city (herein referred to as “the City”), and the San Luis Obispo Chamber of Commerce, a California non-profit organization (herein referred to as “the Chamber”). The City and the Chamber are sometimes referred to herein as a “Party” and collectively as the “the Parties.”

WITNESSETH
WHEREAS, local businesses operating within the City are experiencing unprecedented economic impacts associated with the COVID-19 pandemic; and WHEREAS, economic stimulus is a reasonable and necessary public purpose; and WHEREAS, the City has adopted a Major City Goal and corresponding work program to support the economic recovery of the community, including local businesses; and WHEREAS, the City implemented a shop local incentive program called Buy Local Bonus in December 2020; and
WHEREAS, the program has been successful over the last two years, and the City is interested in continuing the program; and
WHEREAS, the Parties share long-standing organizational values of supporting local businesses to nourish a healthy and thriving economy; and WHEREAS, the Buy Local Bonus program, including similar programs like Eat Local Bonus program (herein referred to as Buy Local Bonus) in the form of business grants to acquire gift cards for those who shop and dine local, would stimulate the local economy; and WHEREAS, it is recognized that each Party possesses the complimentary experience, relationships, and skill sets, and therefore the City and the Chamber will each make specific contributions to the Buy Local Bonus program effort, as further described herein, by providing administrative and accounting functions; providing businesses applications for the program; qualifying, acquisition, and fulfillment functions; facilitating public participation; providing communications, media, and public outreach to ensure broad awareness of the program and local impact results; and providing tracking, reporting, and follow up duties as required and appropriate for the program; and
DocuSign Envelope ID: DEDFB180-C709-49AD-982E-AF07C28A0D9A 11/15/2022 | 12:37 PM PST

2 WHEREAS, in consideration of the foregoing, the Parties desire to work together collaboratively on a local business economic stimulus Buy Local Bonus program to provide efficient administration and delivery of grant funds throughout the community to help local businesses mitigate the economic impacts associated with the COVID-19 pandemic and wish to work together and support each other toward the attainment of these mutual goals.

NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises, and agreements herein set forth, the Parties hereby agree as follows:

TERMS

1. Recognition of Mutual Benefit. It is in the interest of the Parties to work in partnership towards efficiently achieving the goals of the Buy Local Bonus program. The City and the Chamber have aligned goals in this regard, and this agreement will serve to broadly articulate the scope and respective duties of the Parties to achieve the objectives of the economic stimulus Buy Local Bonus program.

2. Scope and Responsibilities of the Parties. The Parties will collectively support the implementation of the Buy Local Bonus program through the following actions and responsibilities:
a. City of San Luis Obispo:
i. Provide this subject Memorandum of Understanding;
ii. Provide program framework including timeline, program parameters, eligibility, and qualification specifications required by the City; iii. Provide a designated staff person to coordinate with the Chamber on program development and implementation;
iv. Provide a designated staff person to coordinate marketing and communications, including program graphics, press releases, social media, and business resources;
v. Communicate the program via the City channels, including email, website, and social media;
vi. Serve as the primary spokesperson for media inquiries and community outreach about the program;
vii. Provide a designated staff person to assist in the business qualification process; viii. Provide program landing page, email alias ([email protected]), business application form, and application repository;
ix. Provide funds received by Measure G in installments to the Chamber, not to exceed the amount authorized by the City Council in the Major City Goal work program, to acquire economic stimulus gift cards;
x. Coordinate with the Chamber on tracking, reporting, and program close-out duties, as necessary or required.
xi. Compensate the Chamber with a 10% administrative fee rate calculated from the funds spent to acquire economic stimulus gift cards; DocuSign Envelope ID: DEDFB180-C709-49AD-982E-AF07C28A0D9A

3 b. San Luis Obispo Chamber of Commerce:
i. Serve as the primary contact to individual businesses, the public, and field media inquiries about the Buy Local Bonus program;
ii. Respond to all email inquiries received in email alias ([email protected]); iii. Prepare and distribute press releases; social media content; digital content relating to the program and coordinate those communications with the City; iv. Communicate the program via the Chamber’s channels, including email, website, and social media;
v. Administer and manage the business participation process, including qualification, communication, gift card acquisition, inventory management, and tracking;
vi. Facilitate the public qualification (receipt verification) process, including qualification, communication, gift card selection and distribution, conflict resolution, and tracking;
vii. Create and maintain a shared business and public tracking database shared with the City;
viii. Provide the gift card selection and distribution (digital and physical) system, including by serving as the physical pick-up location and providing a digital/mail option;
ix. Coordinate with the City on tracking, reporting, and program close-out duties, as necessary or required.

3. Facilities. The Parties will each use their facilities and equipment to carry out their respective roles, and responsibilities for the “buy local bonus and eat local bonus” program.

4. Funding. The City will use its best efforts to provide funding for the Buy Local Bonus program to the Chamber in a timely manner; however, this MOU does not obligate the City to deliver funds to the Chamber in the event of unforeseen circumstances that might arise that would prevent its ability to provide such funds. Once received, the Chamber shall use the funds solely and exclusively for the purpose of carrying out the objective of the economic stimulus gift card acquisition with local businesses in accordance with this MOU.

5. Termination of Agreement by Parties. Any of the Parties may terminate this MOU for any reason whatsoever upon five working days following written notification of such termination.

6. Relationship of Parties. The Parties shall each be considered an independent organization and not an agent, officer, or employee of any other Party. Each Party’s officers, members, affiliates, volunteers, employees, and independent contractors shall not be considered agents, officers, or employees of any other Party.

7. Compliance with Laws. All Parties shall comply with all applicable statutes, ordinances, or regulations now or hereafter adopted by any federal, state, or county governmental entity and with all ordinances, regulations, policies, and guidelines now or hereafter adopted.

DocuSign Envelope ID: DEDFB180-C709-49AD-982E-AF07C28A0D9A

4 8. Amendments. Any Party may propose amendments to this MOU. Proposed amendments that do not significantly affect scope, objectives, outcomes, or deliverables that are considered minor in nature may be approved by the ranking Principal Contact for this MOU, as identified in paragraph 12 below. Other material amendments require approval by the City Council or the Chamber Board of Directors.

9. Counterparts. This MOU may be executed in digital counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument, binding on each signatory thereto.

10. Costs and Liabilities. The City will pay, and the Chamber will be compensated with a 10% administrative fee rate based on the total amount spent on gift card acquisition. Beyond the administrative fee, each Party to this MOU shall be financially responsible for absorbing costs incurred for their own participation and in carrying out the duties and responsibilities described herein. It is understood that none of the Parties to this MOU are the agent of either other Party and are not liable for the wrongful acts, omissions, or negligence of either other Party. Each Party shall be responsible for its wrongful or negligent acts or omissions and those of its officials, officers, employees, and agents, howsoever caused, to the extent allowed by law, and shall be responsible for their own Commercial General Liability, Auto, Worker’s Compensation and Errors and Omissions insurance and adherence to their respective organizational policies.

11. No Assignment. The rights and obligations of the Parties to this MOU may not be assigned or delegated.

12. Principal Contacts.

CITY OF SAN LUIS OBISPO:

Name Role:

Derek Johnson City Manager & Emergency Services Director Molly Cano City Tourism Manager
SAN LUIS OBISPO CHAMBER OF COMMERCE:

Name Role:

Jim Dantona President & Chief Executive Officer
Jacqui Clark-Charlesworth Director of Communications
DocuSign Envelope ID: DEDFB180-C709-49AD-982E-AF07C28A0D9A

5 12. Commencement and Expiration Date. This MOU is executed as of the date of the last signature and is effective until all of the duties and responsibilities described herein are mutually deemed complete unless any of the Parties initiates termination under paragraph 5 above.

ATTEST CITY OF SAN LUIS OBISPO
Teresa Purrington
City Clerk
Date Derek Johnson
City Manager
Date

APPROVED AS TO FORM

SLO CHAMBER OF COMMERCE
J. Christine Dietrick
City Attorney
Date Jim Dantona
President & Chief Executive Officer
Date
DocuSign Envelope ID: DEDFB180-C709-49AD-982E-AF07C28A0D9A 11/14/2022 | 3:34 PM PST 11/1/2022 | 11:42 AM PDT
11/15/2022 | 12:37 PM PST 11/14/2022 | 5:14 PM PST

Item 5g
Department: Community Development
Cost Center: 4003
For Agenda of: 8/15/2023
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Steve LaChaine, Senior Civil Engineer
SUBJECT: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 3044 – A RESIDENTIAL SUBDIVISION AT 3725 ORCUTT ROAD

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the completed public improvements for Tract 3044; certifying the completed private subdivision improvements for Tract 3044; releasing the securities for the completed portions of Tract 3044; and authorizing the Director of Public Works to release the remaining securities once all Tract 3044 improvements are deemed complete.”

POLICY CONTEXT
The City Council accepts public improvements and certifies the completion of private improvements in accordance with the Subdivision Map Act and the City’s Subdivision Regulations.

DISCUSSION
Background
Tract 3044, located at 3725 Orcutt Road as shown on the attached Vicinity Map (Attachment A, Vicinity Map), includes a total of 48 lots consisting of 47 single-family lots, and one lot for future additional single-family and multi-family residential purposes (Parcel maps PM SLO 17-0115 and PM SLO 19-0081).

Acceptance of Off-Site Improvements
Work has been completed for the Off-Site public improvements for Tract 3044. In general, the off-site improvements on Orcutt Road consist of street construction, street widening, medians, curb, gutter, sidewalks, streetlights, water main and sewer main extensions, fire hydrants, storm drain improvements, and landscaping, depicted on Figure 1.

Item 5g
Figure 1 - Off-Site Public Improvements
Acceptance of In-Tract Improvements
Work has been completed for the public improvements within the Tract 3044 boundary.

In general, the in-tract improvements consist of street construction, street widening, medians, curb, gutter, sidewalks, streetlights, water main and sewer main extensions, fire hydrants, storm drain improvements, and landscaping, depicted on Figure 2.

Figure 2 - In-Tract Public Improvements

Item 5g
Previous Council Action
The tentative subdivision map for Tract 3044 was approved by City Council on October 1st, 2013, by Resolution No. 10462 (2013 Series).

The final map for Tract 3044 was approved by City Council on January 15, 2019, by Resolution No. 10973 (2019 Series).

Public Engagement
Public engagement was completed with the approval of the Tentative Map and the development of the Orcutt Area Specific Plan.

CONCURRENCE
The Public Works Director and Utilities Director concur with the recommended action.

ENVIRONMENTAL REVIEW
The Orcutt Area Specific Plan (OASP) and its Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Consistent with Public Resources Code Section 21080.7, Council determined on October 1, 2013, that no additional environmental review was required since the tentative map is in an urbanized area, the project involves the construction of housing that is consistent with a specific plan that has a certified EIR that was adopted not more than five years prior, and the initial study (IS) prepared for the project identified no new impacts (City Council Resolution 10462 (2013 Series). Both the 2010 FEIR and subsequent IS constitute the complete environmental determination for the project. The final map is substantially in compliance with the tentative map evaluated with this prior environmental determination.

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

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

Total $ $ $ $

Item 5g
Typical maintenance and operation of newly accepted public facilities will be required for the street and utility improvements. Increasing the maintenance budget for the small, incremental increase in infrastructure to be maintained does not occur with each acceptance of public facilities. The maintenance budget for these improvements is evaluated and adjusted as needed with the City’s adoption of its two-year budget.

However, the Council action of accepting these improvements itself does not have an associated budget increase.

ALTERNATIVES
Council could decide to continue consideration of the request. Ultimately, however, acceptance of the public improvements is required in accordance with the OASP, Tentative and Final Map approvals, Department of Real Estate process assumptions, and Homeowners Association CC&R’s. Limited alternatives exist and only regarding the timing of acceptance of these improvements.

ATTACHMENTS
A - Tract 3044 Vicinity Map
B - Tract 3044 Final Map
C - Draft Resolution accepting the completed public improvements for Tract 3044

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, ACCEPTING THE COMPLETED PUBLIC
IMPROVEMENTS FOR TRACT 3044; CERTIFYING THE COMPLETED
PRIVATE SUBDIVISION IMPROVEMENTS FOR TRACT 3044;

RELEASING THE SECURITIES FOR THE COMPLETED PORTIONS OF
TRACT 3044; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO RELEASE THE REMAINING SECURITIES ONCE ALL TRACT 3044

IMPROVEMENTS ARE DEEMED COMPLETE
WHEREAS, the City Council made certain findings concerning Tract 3044, as prescribed in Resolution 10462 (2013 Series); and
WHEREAS, the City Council approved the final map for Tract 3044 per Resolution 10973 (2019 Series); and
WHEREAS, the subdivider has satisfactorily completed the required public improvements in accordance with City standards, specifications, and the subdivision agreement; and has requested the City accept these public improvements for maintenance and operation by the City; and
WHEREAS, the subdivider has satisfactorily completed the private improvements in accordance with City standards, specifications, and the approved plans; and has requested the City certify completion of these private improvements; and WHEREAS, the subdivider has on file the appropriate securities to guarantee the completion of the remaining subdivision improvements as shown on the approved plans.

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

SECTION 1. The City Council hereby accepts the public improvements for Tract 3044, including those improvements off-site located in the County of San Luis Obispo (Orcutt Road Improvements), specifically as follows:
a) The in-tract public improvements for Ranch House Road, Sponza Drive, Rock Garden Lane, Park Ridge Lane, Quarry Court; and
b) Off-site improvements including a portion of Orcutt Road SECTION 2. The City Council hereby certifies the completion of the required private subdivision improvements within the Tract 3044 boundary.

SECTION 3. The Faithful Performance securities guaranteeing completion of the in-tract and off-site public improvements may be released with the approval of the Director of Public Works upon submittal of the following items:

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

1. Record drawings for the completed improvements; and

2. Certification by the Engineer of Record for the completion of the public improvements.

SECTION 4. The corresponding Labor & Materials security may be released after 90 days from the date of acceptance of the improvements, or after 60 days from the date of recordation of a Notice of Completion, in accordance with Section 66499.7(h) of the California Government Code.

SECTION 5. The security guaranteeing the workmanship and materials may be released by the Director of Public Works upon the successful completion of the 12-month warranty time period from the date of acceptance of the improvements.

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 5h
Department: Fire
Cost Center: 8502
For Agenda of: 8/15/2023
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: Nicole Vert, Administrative Analyst
SUBJECT: AUTHORIZATION TO APPLY FOR FEDERAL EMERGENCY

MANAGEMENT AGENCY (FEMA) ASSISTANCE TO FIREFIGHTERS

GRANT (AFG)

RECOMMENDATION

1. Authorize the Fire Department to submit a grant application to the Federal Assistance to Firefighters Grant (AFG) Program in the amount of $98,845.45 to send two EMT firefighters through certified paramedic training; and

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

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

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

The Fire Department actively seeks out these opportunities to enhance the effectiveness of the Department while contributing to the fiscal sustainability of the City. A recent grant opportunity was identified, which is in line with these goals and addresses a current need for the City: the Federal Fiscal Year (FY) 2022 AFG Program. The (FY) 2022 grant applications open 2023.

Background
The Federal FY 2022 AFG Program is one of three grant programs that constitute the Department of Homeland Security’s (DHS) and the Federal Emergency Management Agency’s (FEMA) focuses on enhancing the safety of the public and firefighters with respect to fire and fire-related hazards. The AFG Program accomplishes this goal by

Item 5h
providing direct financial assistance to eligible fire departments for critical training and equipment. The AFG Program represents one part of a comprehensive set of measures authorized by Congress and implemented by DHS.

Among the five basic homeland security missions noted in the DHS Quadrennial Homeland Security Review, the AFG Program supports the goal to Strengthen National Preparedness and Resilience. For federal FY 2022, Congress appropriated $360,000,000 in funding for AFG and is projecting to award grants to 2,500 applicants.

The objectives of the AFG program are to provide critically needed resources that equip and train emergency personnel to recognized standards, enhance operational efficiencies, foster interoperability, and support community resilience.

In calendar year 2022, the Fire Department responded to more than 7,100 calls, 65% of which were medical-related. Advanced Life Support (ALS) is the highest level of prehospital emergency medical services that the Department is authorized to provide and is utilized during the majority of EMS incidents. The Department is currently understaffed with paramedics and does not have the funding for tuition, overtime, and travel costs needed to train EMT Firefighters to the level of Paramedic. If awarded, the AFG will allow the Department to train two EMT Firefighters as Paramedics at the City’s local community college. Of the 47 allocated firefighter positions, the Department has 24 allocated Paramedic positions. Currently, the city staffs 47 firefighters, 22 of which are Paramedics.

Of those 22, two are on long term injury related leave leaving only 20 available for field assignment. An increase in paramedics will not only help maintain the level of available pre-hospital care but will also assist with the strain put on current paramedic staff and can improve the level of care available to staff members suffering from medical emergencies while on duty.

Previous Council or Advisory Body Action
On August 18, 2020, the City Council authorized the fire department to apply for an AFG Program to send two firefighters to paramedic school and authorized the City Manager, or designee, to execute the grant documents and approve the budget changes necessary upon notification that the grant had been awarded.

On March 15, 2022, the City Council authorized the fire department to apply for an AFG Program to purchase Urban Search & Rescue equipment and authorized the City Manager, or designee, to execute the grant documents and approve the budget changes necessary upon notification that the grant had been awarded.

Public Engagement
This item is on the agenda for the August 15, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

Item 5h

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

Sec. 15378. If the work associated with the grant funding requires environmental review, staff will not proceed with the project until a review has been completed.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $9,884.55 $ $
State
Federal $98,845.45 $98,845.45
Fees
Other:

Total $98,845.45 $108,730.00 $ $
If the Fire Department were to receive funding from the AFG Program, the City would have to match the Federal grant funds equal to 10% of the total project cost. The total grant request is $108,730.00 and if fully funded would require a match from the city of $9,884.55. The Fire Department can absorb this match requirement within the existing appropriated operating budget for FY 2023-24.

The Fire Department anticipates the cost of sending two firefighters to paramedic school to be $108,730. Education costs will total $14,331.90, that includes books, tuition and other expenses. The remainder of the funds will be to cover backfill and overtime while the firefighters are in class.

The two firefighters who receive the training will be eligible for paramedic incentive pay once certified. The Department has already received authorization to fund a total of 24 paramedic positions, two of which are currently on long term work-related injury leaves.

The Department anticipates the leaves will lead to retirement creating available funds for the incentive pay for the new paramedics once they are eligible.

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

Item 5i
Department: Fire
Cost Center: 402-5008
For Agenda of: 8/15/2023
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: Nicole Vert, Administrative Analyst
SUBJECT: APPROVE THE SOLE SOURCE PURCHASE OF FIRE ENGINE 4

RECOMMENDATION
Approve the sole source purchase of a 2022 Pierce Arrow Type 1 Pumping Fire Engine in the amount of $881,584.76.

POLICY CONTEXT

1. The recommended actions are consistent with the City of San Luis Obispo’s Municipal Code, Section 3.24.060 - Sole Source purchasing. The Municipal Code states that regular bid procedures can be waived when the item(s) to be purchased can be obtained from only one vendor or supplier, and when supplies or equipment have been uniformly adopted in the city or otherwise when standardized. (SLMC §

3.24.060(C)(D)).

2. This action is considered a purchase of goods and in compliance with the City of San Luis Obispo’s Municipal Code 3.24.080, which requires Council approval for any purchase in excess of $200,000.

DISCUSSION
Emergency vehicles are a vital part of the service delivery for the City of San Luis Obispo Fire Department. A fire engine pumper (“fire engine”) has a standard lifespan of 10,000 hours and is staffed with emergency response personnel, tools, and equipment to provide all-hazards emergency services, Through the utilization of an internal apparatus committee, staff developed fire engine specifications that were used to build the pricing for the replacement of Engine 4, a 2014 Pierce Arrow XT Type 1 Pumper.

The specifications considered the community’s unique features and sought the best overall fire engine to complement the existing apparatus fleet. The specifications also align with the most recently purchased fire engine, Engine 3, with minor modifications based on experience. The new fire engine provides the same capabilities as the previous engine but with improved safety, efficiency, and reliability resulting in less cost and time associated with repair and maintenance.

Item 5i
Background
Accelerated Replacement
As part of the FY 2021-22 Fourth-Quarter Financial Report (Year-End) to Council, staff recommended the acceleration of Engine 4 replacement to ensure a sustainable reserve engine fleet. The replacement was scheduled for FY 2024-25; however, the current reserve engine has been encountering a higher than an expected number of mechanical issues that jeopardize the availability of a reliable reserve apparatus over the next several years.

Additionally, the City is not immune to the supply shortages brought on by the COVID 19 pandemic. Many fleet replacements have been delayed and commitment letters are being issued to ensure delivery from vendors as far out as 18 months in the future. This engine is immediately available through Pierce, which is the City’s standard for fire engines.

Council approved this recommendation and funded the replacement. In order to avoid a nearly $60,000 increase, the City authorized a purchase order for the replacement engine in October and Council approval is necessary to finalize the purchase.

Sole Source Purchase Recommended
Staff recommends a sole source purchase award to South Coast Fire Equipment in the amount of $881,584.76 for the purchase of a 2022 Pierce Arrow Type 1 Pumping Fire Engine. City purchasing regulations allow for sole source purchases when supplies or equipment in use have been uniformly adopted by the City or otherwise standardized.

The Pierce fire engine has been the standard apparatus for the City of San Luis Obispo for the last quarter century.

South Coast Fire Equipment, the sole provider of Pierce engines in this region (Attachment B), provided the purchasing quote (Attachment C) for the pumper. The quote was good through October 31, 2022, if allowed to expire, without issuing a purchase order the cost would increase by at least 7% or nearly $60,000.

The Fire Department has made significant parts, equipment, and training investment in maintaining Pierce-manufactured apparatus. Fire fleet already has an inventory of spare parts, filters, and maintenance items specific to the Pierce fire apparatus platform.

Additionally, the Fire Department’s Fire Vehicle Mechanic is specially trained to provide maintenance to Pierce manufactured fire apparatus.

Previous Council or Advisory Body Action
On October 4, 2022, the City Council approved Resolution No. 11367 (2022 Series) authorizing unassigned Local Revenue Measure Fund Balance be allocated to the accelerated replacement of Fire Pumper (Engine 4).

On August 21, 2018, the City Council authorized the sole source purchase of a 2018 Pierce Arrow PUC Type 1 Fire Engine.

Item 5i
Public Engagement
This item is a consent item for the August 15, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

CONCURRENCE
The Finance Department concurs with the Fire Department’s request to sole source the new engine using the current quote from South Coast Fire Equipment. Additionally, after consultation with the previous Finance Director and the fact that the price will increase exponentially, staff was advised that a City Manager Report should be routed to execute a purchase order for the fire engine replacement. This was due to the October 4, 2022 appropriation of needed funding by Council, and the significant cost increases that would be incurred by delaying the issuance of a purchase order. Staff included the details of the purchase commitment in the 1st quarter report that was presented to Council on November 15, 2022.

Staff was advised to return to Council with a consent item to affirm this purchase at the next available meeting after the City Manager’s Report approved the purchase (Attachment A).

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

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $900,000 $881,584.76 $18,415.24 $
State
Federal
Fees
Other:

Total $900,000 $881,584.76 $18,415.24 $

Item 5i
Council approved advancing the funding for the new engine on October 4, 2022 with Resolution No. 11367 (2022 Series) appropriating unassigned Local Revenue Measure Fund Balance to the accelerated purchase of the new engine. With the appropriated $900,000, the purchase of the engine is fully funded and will not need any financing. The remaining $18,415.24 budget for the apparatus replacement is needed to fully outfit the vehicle with the necessary communications and agency-specific equipment.

Pierce Manufacturing pricing and the corresponding quote from South Coast expired on October 31, 2022 due to the manufacturer's annual price adjustments. Had we allowed quote to expire without committing to a purchase the engine would have increased the cost of the engine by a minimum of $60,000, due to a scheduled 7% cost increase.

Anecdotally, SLOFD has confirmed with surrounding agencies that the pricing for similar apparatus now exceeds $1 million.

ALTERNATIVES
Deny the sole source purchase. This action is not recommended by staff as the funds are approved as part of the budget amendment. Pierce engines, the City’s standard fire engine, is only available through South Coast Fire Equipment that covers the west coast territory.

ATTACHMENTS
A - City Manager Report - Engine 4 Accelerated Purchase B - Sole Source Verification
C - South Coast Quote

City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved City Administration GH for DJ 10/25/22
Reviewer Routing List Reviewer Name Date Reviewed
Finance NH 10/25/2022
Date:

FROM: Keith Aggson, Fire Chief KAA 10/25/2022
PREPARED BY: Nicole Vert, Administrative Analyst
SUBJECT: Purchase of Fire Engine

RECOMMENDATION

1. Approve the sole source purchase of a 2022 Pierce Arrow Type 1 Pumping Fire Engine in the amount of $881,584.76 and return to Council with a consent item to affirm the purchase at the next available meeting.

DISCUSSION
Emergency vehicles are a vital part of the service delivery for the City of San Luis Obispo Fire Department. A fire engine pumper (“fire engine”) is staffed with emergency response personnel, tools, and equipment to provide all-hazards emergency services. Through the utilization of an internal apparatus committee, staff developed fire engine specifications that were used to build the pricing for the replacement of Engine 4, a 2014 Pierce Arrow XT Type 1 Pumper. The specifications considered the community’s unique features and sought the best overall fire engine to complement the existing apparatus fleet. The specifications also align with the most recently purchased fire engine, Engine 3 with minor modifications based on experience. The new fire engine provides the same capabilities as the previous engine but with improved safety, efficiency, and reliability resulting in less cost and time associated with repair and maintenance.

Background
Accelerated Replacement
As part of the FY 2021-22 Fourth-Quarter Financial Report (Year-End) F to Council, staff recommended the acceleration of Engine 4 replacement to ensure a sustainable reserve engine fleet. The replacement was currently scheduled for FY 2024-25; however, the aged reserve engine

Authorization to sole source purchase Pierce Arrow Fire Engine Page 2 has been encountering more than an expected number of mechanical issues which jeopardizes the availability of a reliable reserve apparatus over the next several years. Additionally, the City is not immune to the supply shortages brought on by the COVID 19 pandemic. Many fleet replacements have been delayed and commitment letters issued to secure delivery up to 18 months in the future.

This engine is immediately available through Pierce which is the City’s standard for fire engines.

Council approved this recommendation and funded the replacement.

Sole Source Purchase Recommended
Staff recommends a sole source purchase award to South Coast Fire Equipment in the amount of $881,584.76 for the purchase of a 2022 Pierce Arrow Type 1 Pumping Fire Engine. City purchasing guidelines allow for sole source when supplies or equipment in use have been uniformly adopted by the City or otherwise standardized. The Pierce fire engine has been the standard apparatus for the City of San Luis Obispo for the last quarter century. South Coast Fire Equipment, the sole provider of Pierce engines in this region, is providing the purchasing quote (Attachment A) for the pumper at the base price reflective of a nationally utilized cooperative purchasing agreement. Used as a pricing standard throughout the fire service, this master contract is commonly known as the HGAC, or Houston Galveston Area Council Cooperative Purchasing Agreement. While the City is not purchasing through HGAC, the City’s price for this apparatus is the same as this cooperative purchasing agreement. The quote is only good through October 31, 2022 and the cost is expected to increase by 7%.

The Fire Department has made significant parts, equipment, and training investment in maintaining Pierce-manufactured apparatus. Fire fleet already has an inventory of spare parts, filters, and maintenance items specific to the Pierce fire apparatus platform. Additionally, the Fire Department’s Fire Vehicle Mechanic is specially trained to provide maintenance to Pierce manufactured fire apparatus.

Staff will return to Council with a consent item to affirm this purchase at the next available meeting.

CONCURRENCES
The Finance Department concurs with the Fire Department staff to sole source the new engine using the current quote from South Coast Fire Equipment. Additionally, after consultation with the Finance Director and the fact that the price will increase exponentially, staff was advised that a City Manager Report should be routed to execute a purchase order for the fire engine replacement. This was due to the October 4, 2022, appropriation of needed funding by Council, and the significant cost increases that would be incurred by delaying the issuance of a purchase order. Staff will include the details of the purchase commitment in the 1st quarter report that will be presented to Council on November 15, 2022.

FISCAL IMPACT
Council approved advancing the funding for the new engine on October 4, 2022,, by appropriating unassigned Local Revenue Measure Fund Balance to the accelerated purchase of the new engine.

With the appropriated $900,000, the purchase of the engine is currently fully funded and will not need any financing.

Authorization to sole source purchase Pierce Arrow Fire Engine Page 3 Pierce Manufacturer pricing and the corresponding quote from South Coast expire on October 31, 2022, due to the manufacturer's annual price adjustments. Allowing the current quote to expire would increase the cost of the engine by a minimum $60,000, due to a scheduled 7% cost increase.

Additionally, South Coast is providing a 100% prepayment discount of $36,000. Due to the availability of the funding, staff recommends the full prepayment of the fire engine purchase.

Equipment Replacement Fund Project Costs
Adopted Budget (FY 2022-23) $ 900,000.00
Base Unit Cost $ 847,343.00
100% Prepayment Discount $ (36,700.00)
Adjusted Base Unit Cost $ 810,643.00
Sales Tax (8.75%) $ 70,931.26
California Tire Fee $ 10.50
Cost From Dealer $ 881,584.76
Internal Vehicle Assembly Cost $ 18,415.24
Total Vehicle/Project Cost $ 900,000.00

ALTERNATIVES
Deny the sole source purchase. Staff does not recommend this as the funds are approved as part of the budget amendment. Delaying the purchase will jeopardize the reliability of the Fire Department’s reserve apparatus fleet and likely result in significant replacement cost increases due to current market conditions. Pierce engines, the City’s standard fire engine, is only available through South Coast Fire Equipment that covers the west coast territory.

ATTACHMENTS
A - SLO City Type-1 to Fleet
B - Sole Source Approval Memo

Item 5j
Department: Fire
Cost Center: 8599
For Agenda of: 8/15/2023
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: James Blattler, Emergency Manager
SUBJECT: MULTI-JURISDICTIONAL HAZARD MITIGATION GRANT PROGRAM

RECOMMENDATION

1. Authorize Fire Department to participate in a grant application process from the Federal Emergency Management Agency (FEMA) for funding to develop a multijurisdictional Hazard Mitigation Plan (HMP); and

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

POLICY CONTEXT
Through the Hazard Mitigation Act of 2000 (DMA 2000), the U.S. Congress set a goal to encourage local governments and states to develop plans and undertake projects to mitigate the impact of natural disasters on a community before disasters occur. Federal requirements established by FEMA as a result of this legislation, include a requirement that hazard mitigation plans be reviewed and updated a minimum of every five years, and following any major disaster declaration, to maintain eligibility for funding and technical assistance from state and Federal hazard mitigation programs.

The Hazard Mitigation Plan aligns with the Council’s Major City Goal of Climate Action, as the plan is required to address the mitigation of climate-related emergencies and disasters.

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

DISCUSSION

Item 5j
Background
City Council adopted the City’s first Local Hazard Mitigation Plan (HMP) in 2006 and later adopted the updated Local HMP in 2014. At the time of adoption, both documents were subsequently reviewed by the California Office of Emergency Services (Cal OES), and approved by FEMA.

In 2017, the County of San Luis Obispo approached the City and proposed developing a multi-jurisdictional HMP for participating agencies throughout the County, which would meet the Federal requirements established by FEMA. The County would seek a grant to support the development of the plan requiring participating agencies to supply a proportional funding match based on each participating agency’s population.

After considering the significant staff time and funding required to update the City’s 2014 HMP, the city partnered with the County to participate in the first multi-jurisdictional HMP which was updated in 2019 and formally approved in June 2020.

As recommended by the FEMA’s Local Multi-Hazard Mitigation Planning Guidance, the County is now initiating the process of updating the current HMP by seeking a grant to manage the update.

Staff is requesting authorization to partner with the County of San Luis Obispo who will submit the grant to FEMA. For the current HMP, the City’s cost-share was $4,500, which is expected to be similar to the match requirement for this 2025 update.

Previous Council or Advisory Body Action
On February 6, 2018, Council Authorized the Fire Department to participate in a Countyled grant for updating the 2014 LHMP. On June 2, 2020, Council adopted the 2019 MultiJurisdictional HMP.

Public Engagement
This item is on the agenda for the June 20, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

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

FISCAL IMPACT
Budgeted: No Budget Year: 2024-25
Funding Identified: Yes

Item 5j
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $4,500 $4,500 $ $0
State
Federal
Fees
Other:

Total $4,500 $ $ $0
A County-led multi-jurisdiction grant will result in significant cost savings to the city which it would otherwise bear through a sole-agency HMP grant. The City’s estimated grant match of $4,500 is considerably lower than the match required in 2012 which totaled $16,200. Additionally, the City would incur staff time needed to develop the grant. FEMA requires a 25% match for the grant program.

If awarded, the match for the grant would not be expended until fiscal year 2025. The department has the capacity to absorb this expense.

ALTERNATIVE
The Council could decide not to pursue the grant monies through a cooperative grant. This action is not recommended by staff as the grant opportunities are limited and the grant funds would only serve to enhance preparedness for, response to, and recovery from local disasters.

Item 6a
Department: Fire
Cost Center: 8599 – Emergency Management
For Agenda of: 8/15/2023
Placement: Business
Estimated Time: 30 minutes
FROM: Todd Tuggle, Fire Chief
Prepared By: James Blattler, Emergency Manager
SUBJECT: 2022-23 STORMS AFTER-ACTION REPORT AND POST-INCIDENT

ACTION PLAN

RECOMMENDATION
Receive and file the 2022-2023 Storms After-Action Report and Post-Incident Improvement Plan.

POLICY CONTEXT
Per California Code of Regulations, Title 19, § 2450, any city, city and county, or county declaring a local emergency for which the governor proclaims a state of emergency, and any state agency responding to that emergency shall complete and transmit an afteraction report to Cal OES.

DISCUSSION
In addition to California Code of Regulations requirements, it is best practice within emergency management to complete an after-action report and associated improvement plan with every Emergency Operations Center (EOC) activation. This allows for both successes and challenges to be highlighted and evaluated, which can either be continued or improved for future activations. The City of San Luis Obispo 2022-23 Storm AfterAction Report & Post-Incident Improvement Plan (Attachment A) was completed in June 2023 and transmitted to Cal OES, as required, and to the San Luis Obispo County Office of Emergency Services, who act as the county’s operational area coordinator. This report and plan are specific to the late December and January storms. A separate report will be created for the late February and March storms at a future date.

Background
The after-action report and improvement plan were developed to capture City response actions and identify preparedness, response, and recovery actions to improve the City’s ability to manage future flood events and EOC activations. The report and improvement plan are not intended to judge success or failures, but rather to identify and assess processes that can be improved for future emergencies.

Item 6b
The report and improvement plan were developed internally by the City’s Emergency Management Division under the Fire Department through the collection of internal and external feedback and observations provided through a variety of methods. The feedback collection process began in mid-January to ensure key events and observations were not lost due to time. Feedback was collected through individual conversations, departmentcompiled reports, emails, a City-wide survey, partner agency outreach, and a comprehensive debrief with the City’s leadership team held on April 25, 2023.

The information provided through the report and improvement plan are not intended to include specific field-level actions, but rather high-level incident management and activities through the City’s EOC and Public Works Department Operations Center (DOC). Department-specific field after-action reviews were recommended to be completed internally by all departments.

After-Action Report Highlights
Overall, the feedback and observed activity showed that the City was effective in responding to and managing the impacts related to the series of winter storms encountered between the incident period of December 27, 2022, to January 31, 2023.

Much of this success can likely be attributed to City investments in an effective policy and operational structure and support of training and investment into preparedness activities leading up to the incident period, recent experience managing the COVID-19 emergency, and inter-agency relationships. Council’s coordination with operational staff in highlighting key information and timely relaying community concerns was also critical.

While the report highlights these successes, many areas of improvement were identified, which will improve the City’s performance during future events. The primary areas of improvement identified included communications, facilities, technology, and planning processes.

Post-Incident Improvement Plan
While the goal of the after-action report is to identify the successes and challenges that occurred during the incident, the improvement plan is used to create actions items out of the report’s findings. The improvement plan will be used to assist staff in planning, executing, and tracking action items moving forward. Each item was assigned a delivery timeframe, resource needs and priority level. Out of the 27 action items in the improvement plan, eight (8) were identified as high priority, fifteen (15) as medium priority, and four (4) as low priority. While most of the items only require staff time, some may require operating budget dollars, or capital improvement funding. Any action items that require funding outside of the City’s appropriated operating budgets will be added for consideration for future budgets or through external funding opportunities, such as grants.

Previous Council or Advisory Body Action
On January 10, 2023 City Council confirmed approval of the Emergency Services Director’s proclamation of existence of a local emergency issued on January 9, 2023.

Item 6b
Public Engagement
This item is on the agenda for the August 15, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

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

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

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

Total $ $0 $ $
There are no financial impacts associated with the recommendation to receive and file the report and improvement plan. Any costs associated with implementing the improvement plan will fall under currently appropriated operating budgets or put for council consideration for future budget or grant opportunities.

ALTERNATIVES
Council could decide not to receive and file the 2022-2023 Storms After-Action Report and Post-Incident Improvement Plan. This action is not recommended by staff because the report and improvement plan codify important learning lessons for current and future staff and are used to enhance the City’s ability to prepare for, respond to, and recover from future emergencies and disasters.

ATTACHMENTS
A - 2022-2023 Storms After-Action Report and Post-Incident Improvement Plan

CITY OF SAN LUIS OBISPO
2022-23 STORMS AFTER-ACTION REPORT
& POST-INCIDENT IMPROVEMENT PLAN
FEMA-4683-DR-CA / CDAA 2023-01
INCIDENT PERIOD: DECEMBER 27, 2022 - JANAUARY 31, 2023
Derek Johnson
City Manager / Emergency Services Director
Todd Tuggle
Fire Chief
James Blattler
Emergency Manager

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

CONTENTS
I. Executive Summary...............................................................................................................................................3 Report and Action Plan Summary..............................................................................................................................3 Report Highlights.......................................................................................................................................................3 II. Report development process & report limitations...............................................................................................5 Feedback Process ......................................................................................................................................................5 Report Methodology .................................................................................................................................................5 Report & improvement Plan Limitations...................................................................................................................5 III. Summary of Events & Response Activities............................................................................................................6 Weather and Incident Summary................................................................................................................................6 Response Activities Summary....................................................................................................................................7 Activated Emergency Plans & Procedures...............................................................................................................11 Recovery Activites To Date......................................................................................................................................12 IV. Strengths and Challenges Assessment................................................................................................................13 Emergency Operations Center (EOC).......................................................................................................................13 Public Works Department Operations Center (DOC) ..............................................................................................15 Internal and External Communications...................................................................................................................16 External Agency Coordination .................................................................................................................................18 Relevent Plans .........................................................................................................................................................20 Training....................................................................................................................................................................22 Recovery ..................................................................................................................................................................22 Incident-Specific Actions .........................................................................................................................................23 V. Application of the Standardized Emergency Management System (SEMS) & National Incident Management System (NIMS) .............................................................................................................................................................25 California Standardized Emergency Management System (SEMS) .........................................................................25 National Incident Management System..................................................................................................................25 VI. Report Conclusion...............................................................................................................................................27 VII. Post-Incident improvement Plan ........................................................................................................................28 VIII. Report References & Resources .........................................................................................................................31 Acronyms.................................................................................................................................................................31 Referenced and supporting resources.....................................................................................................................31

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

I. EXECUTIVE SUMMARY

REPORT AND ACTION PLAN SUMMARY
The City of San Luis Obispo 2022-23 Storm After-Action Report & Post-Incident Improvement Plan have been developed to capture city response actions and identify preparedness, response, and recovery actions to improve the City’s ability to manage future flood events and Emergency Operations Center (EOC) activations. The Report and Improvement Plan are not intended to judge success or failures but rather identify and assess processes that can be improved for future emergencies.

The Report and Improvement Plan were developed internally by the City’s Emergency Management Division under the Fire Department through the collection of internal and external feedback and observations provided to the Emergency Manager through a variety of methods and mediums.

REPORT HIGHLIGHTS
Overall, the feedback and observed activity showed that the city was effective in responding to and managing the impacts related to the series of winter storms encountered between December 27, 2022, and January 31, 2023. Much of this success can likely be attributed to (1) the City’s top-leadership support of training and investment into preparedness activities leading up to the incident period, (2) recent experience managing the COVID-19 emergency, and (3) inter-agency relationships. While this report highlights these successes, many areas of improvement were identified, which will improve the City’s performance during future events. The primary areas of improvement identified included communications, facilities, technology, and planning processes. • Internal communications improvements likely would have resulted in more timely and complete external communications, increased support to the Public Works Department Operation Center (DOC), and overall improved efficiency within the Emergency Operations Center and general City operations.
• The Emergency Operations Center (EOC) has both space and technology limitationsthat impacted operational efficiencies. While the space challenges are more difficult to overcome in the short term, leveraging existing City software platforms can help alleviate some current limitations. • Earlier integrations of a Geospatial Information Systems (GIS) specialist into the DOC would have likely improved the EOC’s situational status awareness and the external facing City website dashboard featuring road closures and storm impacts.
• The relocation of the DOC from the Corporation Yard to the Ludwick Center caused some operational impacts.
• Overall, partner agency feedback was very positive with potential improvements in the accessibility of current road closure and storm impact information.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

• Proactive early alerting and outreach to homeless community members living in and near the creeks potentially saved lives.
• Strengthening the connection between pre-planned shelter locations, the city, Red Cross, and County OES likely would have resulted in faster activation of shelters for evacuees. • Improved floodgate program awareness and outreach efforts can improve the number of floodgate deployments for future events.
• The City highly relied upon non-profits to meet sheltering needs of unhoused community members.
• Rapidly conducting initial damage estimates utilizing mobile GIS technology assisted in the recovery efforts of both public and individual needs, however earlier integration and review of senior engineering staff may have improved the accuracy of damage estimates which increased over time.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

II. REPORT DEVELOPMENT PROCESS & REPORT LIMITATIONS

FEEDBACK PROCESS
Internal and external feedback used to inform this report was gathered through a variety of methods. The feedback collection process began in mid-January to ensure key events and observations were not lost due to time. Feedback was collected through individual conversations, department-compiled reports, emails, a City-wide survey, partner agency outreach, and a comprehensive debrief with the City’s leadership team that was held on April 25, 2023.

REPORT METHODOLOGY
The information provided through this report and subsequent action plan are not intended to include specific field-level actions, but rather high-level incident management and activities through the City’s Emergency Operations Center and Public Works Department Operations Center. Department-specific field after-action reviews were recommended to be completed internally by all departments.

REPORT & IMPROVEMENT PLAN LIMITATIONS
While a comprehensive attempt was made to gather feedback from both internal and external stakeholders, it is inherent that not all useful feedback was gathered through the input process. Without a complete evaluation from all response personnel and cooperating partner agencies, the report has limitations in its ability to identify all areas of success and challenges. Additionally, not all incident-related improvements will have been captured by this report as City staff members made quick, individual adaptations during their response.

It is also expected that additional challenges and resource restrictions will be encountered while implementing the Post-Incident Improvement Plan recommendations. Staff will work to identify and overcome these challenges within the available resources and leverage available external resources to complete the Improvement Plan as they become available.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

III. SUMMARY OF EVENTS & RESPONSE ACTIVITIES

WEATHER AND INCIDENT SUMMARY
A series of winter storms that occurred between the period of December 27, 2022, and January 31, 2023, resulted in significant flooding and other storm-related impacts City-wide. These impacts peaked on January 9th when parts of San Luis Obispo received over 6” of rain over 24-hours, most of which fell within the first 12 hours of the day. The impacts of this rainfall were exacerbated by previous rain events during the period, which oversaturated the ground and led to widespread flooding. Estimated to be a 25-year flood event and was the worst flooding observed in San Luis Obispo since the winters of 1995 and 1998.

High winds with the winter storms also created impacts due to downed trees which fell on the City rightsof-way, private property, and into the creek system. Creek flows transported debris to collection points such as culverts and bridges and resulted in blockages at various points throughout the city.

This section summarizes the four distinct weather periods and resulting impacts during the entire incident period between December 27 and January 31.

RAIN AND CREEK LEVEL DATA
Rainfall increment and accumulation, and creek level data were pulled from the County of San Luis Obispo Public Works Department Water Resources Division website.

The rainfall totals referenced below are an average between the three local rain gauge monitoring sites, (1) the “Gas Company” near Broad St. and Industrial Way, (2) “Camp San Luis” located North of the city limits, and “SLO Reservoir – P” located North of Highway 101, Northeast of the City limits.

The creek levels mentioned in this report will use two locations of reference, the “Marsh Street Bridge” near the intersection of Marsh St and S Higuera St. and “Madonna Road” where laguna lake outflows into Prefumo Creek underneath Madonna Rd. While flooding was observed in many locations throughout the city, these are the primary areas where flooding most significantly impacted residents and businesses.

DECEMBER 27 – JANUARY 7
Over the 12-days between December 27 and January 8 parts of San Luis Obispo received over 6” of rain that was delivered over a series of storms. While the creek systems were able to convey the amount of rainfall during this period without reaching flood stages, this recurring rainfall led to significant ground saturation leading up to the January 9 weather event. Additionally, these series of storms also brought high winds which resulted in fallen trees throughout the city. The Marsh St. sensor reached “Full Storm Flow Stage” on December 31 and January 4, but did not reach the bottom of the bridge. The Madonna Rd. sensor peaked at approximately 3.6’ below the bottom of the bridge on these days as well.

JANUARY 8 – 10
Between January 8th and 10th, San Luis Obispo received nearly 7” of rainfall, with the majority of this rain falling during the first 12 hours of January 9. The steady and heavy rainfall and high winds in the early

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

morning hours on January 9 led to most creek gauges reaching or exceeding flood stage between 5:15 AM and 6:15 AM. San Luis Obispo Creek under Marsh St. Bridge exceeded the roadway level after 5:30 AM and significant flooding was observed in the area along S. Higuera St., Parker St., and Beebee St. between Marsh St. and Madonna Rd by 6:00 AM. At the Madonna Rd. sensor, water levels peaked at approximately 4 PM on January 9. The areas most impacted by the heightened water levels at this point in the day were on the West side of Oceanaire Dr.

Other areas that observed significant flooding included the areas of (1) Los Osos Valley Rd. and Calle Joaquin, (2) Tank Farm Rd. between S. Higuera St. and Broad St., and (3) Fiero Lane off of Broad St.

NOTE: The Marsh St. sensor became damaged and was removed by San Luis Obispo County Public Works Staff at approximately 6:17 AM on January 9.

JANUARY 11 – 16
A brief break in weather systems on January 11 and 12 allowed the creek levels to recede, which helped reduce the impacts associated with a significant weather system that delivered over 3” of rain between January 13 and 16. This system brought periods of heavy rainfall, which was most active on January 14.

The creek systems were stressed during this event, however, only limited flooding occurred throughout the city. The Marsh St sensor was reinstalled on January 13 and registered San Luis Obispo Creek exceeding the bottom of the bridge on January 14 between 12:00 PM and 1:00 PM but later fell below the “Full Storm Flow Stage” by 3:45 PM that day.

JANUARY 17 – 31
Limited rainfall was observed in San Luis Obispo between January 17 and 31. Nearly 0.5” fell during this period which was delivered between small weather systems on January 19th and 29th.

RESPONSE ACTIVITIES SUMMARY
For the purposes of this report the City’s response activities have been divided up into three separate sections: (1) field operations, (2) emergency operations center, and (3) pre-EOC activation response activities.

FIELD OPERATIONS
Public Works: The City’s Public Works response team was active during the entire incident period from response to recovery efforts. The public works storm patrol was activated for a total of eight days with the Public Works Department Operations Center (DOC) supporting those efforts each day. Storm Patrol & Department Operations Center Active Days: December 27, 31, January 4, 5, 9, 10, 11, 14.

During these active periods, the Public Works Department led the City’s effort to manage city-wide impacts including inspecting known flood sites, clearing rock guards, replenishing sand at the four sandfill locations throughout the city, processing storm-related calls for service, rapid removal of debris and downed branches and trees in the city right-of-way, traffic control for road closures, removal of debris

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

from creeks that hindered water conveyance, inspected damage sites, and managed contract crews to augment the high service demand. While active, the storm patrol operated 24 hours/a day through day and night shifts.

One particularly notable action taken by Public Works was the proactive closure of the Marsh St. / Highway 101 on and off ramps to allow for the closure of the Marsh St. Bridge at South Higuera. This action was first taken in advance of the January 14 storm. The closure allowed public works staff to partially remove bridge railings to reduce potential strainers for San Luis Obispo Creek flowing underneath and, install k-rail barriers to re-divert flood waters back into the creek channel. This location was the source of much of the flooding that impacted the South Higuera Corridor.

AfterJanuary 14 through the end of the incident period, the Public Works department activity was focused on recovery activities including debris and contractor management addressing both emergency and exigent needs that resulted from the storm and flooding.

Utilities: The Utilities Department provided significant support to the public works storm response teams and department operations center, particularly during the January 9-14 period. Some of the highlights of the Utilities Department-specific response activities throughout the incident period include:
• Utilities staff were initially assigned to storm patrol areas with Public Works Streets crews to monitor and identify flood-prone areas. As the incident period progressed, Utilities staff became more familiar with the storm patrol areas more were able to assume responsibility for field response from Public Works crews, affording them rest from the continuous work. • Crews utilized specialized Utilities equipment including hydro-excavating trucks with high ground clearance to clear drainage and remove mud and other debris. • The Chief Water Distribution Operator acted as a field coordinator for storm patrol and field response crews, provided City administration with a tour of affected areas, and later during the storm event moved to the DOC to supplement command staff with field response and communications. The Utilities Director aided in the DOC during the event, assisting the Public Works Director and City Administration.
• Crews proactively serviced sewer facilities to improve the system’s ability to convey sewage to the Water Resource Recovery Facility (WRRF) and reduce the potential for overflows. • Staff located level monitoring devices in key, high-risk locations to monitor for potential spills.

While the WRRF received the highest flows on record, the facility remained in compliance for the duration of the storms. The wastewater collection system had only one minor spill (<5,000 gallons) on 12/31/2022 related to grease accumulation in the downtown corridor. While other agencies in the region had numerous high-volume spills, no other spills were recorded in SLO, which is a testament to an effective pretreatment program and sewer preventative maintenance and active monitoring. Staff responded to a downed power line near the Calle Joaquin lift station, which resulted in flooding and pump failures, and kept the system operational with no spills.

Crews were able to mitigate the damage to the control panels and keep the 250,000+ gallon per day station operational without issue.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

• Crews proactively serviced stormwater facilities to improve the system’s ability to convey stormwater through the multiple storm events.
• Staff coordinated dumpster drop-off locations in city limits for residents to dispose of their stormgenerated debris from their homes and yards at no cost to residents. Over 19 tons (38,000 pounds) of materials were disposed of.

Public Safety: Public safety teams participated in both proactive outreach and emergency response activities. The proactive activities are summarized in the “Pre-EOC Activation Response Activities” section below. During the early morning hours of January 9, the on-duty Fire Department Battalion Chief began patrolling the city to identify potential rain-related impacts. Between 6:00 and 6:30 AM the Battalion Chief identified rising creek waters approaching and exceeding flood levels and began to coordinate and assign resources to assist with potential rescues and evacuations that may be needed should waters continue to rise. The Fire Department identified two temporary refuge sites to send evacuees until conditions improved or a Red Cross shelter was established. These sites were at the Marigold Shopping Center at Broad St. and Tank Farm Rd. and the Foothill Plaza at Foothill Blvd. and Broad St. One Fire Inspector was sent to each location to help liaison with evacuees however no evacuees were identified at these temporary sites. To help manage the incident, Fire Incident Commander organized their response by splitting the city into two branches. Branch 1 covered areas North of South St. and Brach 2 covered areasto the South. On January 9th the fire department responded to a total of 55 calls for services including 3 swift water rescues, 12 medical emergencies, and a water evacuation. To put the number of calls for service in perspective, the annual average daily calls for service in 2022 was less than 20. In response to the surge in demand for service and widespread flooding, the fire department held all personnel on-duty and called in all off-duty staff to augment to standard daily staffing numbers of 14 bringing to total to 39 allowing the department to up-staff three additional response units including Patrol 1 (a type 6 fire engine), Engine 5 (a type 1 reserve fire engine) and Engine 6 (a type 3 fire engine).

The Police Department also saw a surge in response demand on January 9 as they responded to a total of 95 calls for service. The dispatch center received a total of 746 9-1-1 and non-emergency calls from the public while the average daily numbers in comparison are 296. The response focus from the police department on January 9 included evacuations, road closures, and traffic hazards related to the storm.

Additionally, after the January 9 storm event began to subside, staff conducted creek checks related to the unhoused population. The evacuation notifications were made at 7 different locations including Dana St. Matthews Trailer Lodge at 274 Higuera St, and Valle Vista Trailer Park at 333 Elks Ln. The Police Department also issued a “Shelter-in-Place” advisory on January 9 due to continued forecasted rainfall and existing flooding. Staffing levels also increased significantly on January 9 with a total of 33 officers on duty for both day and night shifts, 16 of which were on overtime, and a total of 7 dispatchers for both day and night shifts which was an increase of 3 dispatchers from their normal levels.

EMERGENCY OPERATIONS CENTER
The Emergency Services Director first activated the Emergency Operations Center (EOC) at 0745 on January 9 at the recommendation of the Fire Chief after receiving field reports of widespread flooding, evacuation, and rescue operations. The EOC was opened at a Level 2 activation and remained physically

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

staffed between 0745 to 2100 on January 9 and 0530 to 1700 on January 10 at which point the EOC was transitioned into a virtual Level 3 EOC through the remainder of the incident period. The Emergency Manager began assembling the EOC at 0630 based on observed conditions and anticipated need to activate and notified the County OES Duty Officer of local conditions and impacts at 0700.

After activation, the EOC focused on gathering operational intelligence for the 0930 “Initial EOC Briefing” and established management objectives to meet incident needs. The initial operational period length was established at 12 hours which remained in place for two periods before switching to a 24-hour operation period on January 10 and a 7-day operational period beginning on January 11. EOC Staff followed the EOC Operational Period planning cycle to produce an EOC Action Plan and continued this cycle through operational periods throughout the activation.

The primary activities of the EOC involved public communications, supporting the Public Works DOC and field staff, supporting the EOC staff, and ensuring appropriate coordination between County OES, allied agencies, and participating local volunteer and non-profit organizations. The EOC also established temporary sheltering at local hotels for city staff members who were unable to travel home due to safety concerns or road closures. Several employees utilized this sheltering.

As immediate threats to life and safety diminished, the EOC began actively managing recovery activities through the coordination of initial damage estimates and documentation for state and federal public assistance programs.

PRE-EOC ACTIVATION RESPONSE ACTIVITIES
City and County Coordination Calls: In preparation for potential widespread impacts associated with the forecasted storms, the city Emergency Manager attended several County Operational Area Coordination calls that were organized and facilitated by the San Luis Obispo County Office of Emergency Services.

These calls included San Luis Obispo County-specific weather briefings from the National Weather Service and County-wide updates on preparedness actions across jurisdictions. Prior to January 9, these briefings took place on January 3 and January 8. The city also held a storm coordination call among all departments on January 4 to ensure all departments were informed of the anticipated storm impacts and that internal resource needs were met leading into the forecasted significant weather events.

Staff also attended National Weather Service (NWS) briefings provided by the NWS Los Angeles Office which here held to inform area agencies of the forecasted weather events that had the potential to bring flooding and other storm-related impacts.

Public Communications: The Fire Department and City shared multiple public communications leading up to the EOC activation on January 9th. The information focused on the weather forecast, preparedness actions, and how to report storm-related issues. Social Media alerts were issued on January 3rd in anticipation of significant weather on January 4 and 5, and on January 8 in anticipation of significant weather between January 9 and 10. A City news release was issued on January 4th. Additionally, the City Emergency Manager completed a media interview regarding city and community preparedness actions.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

Homeless Outreach: City staff and departments involved in homeless services or response attended a “Creek Encampment Discussion – Storm Impacts” meeting to discuss the best approach and strategy to address safety concerns for unhoused community members living in encampment areas in and adjacent to the Creek. The meeting resulted in an agreed-upon strategy to conduct extensive outreach to all known encampments along the city creeks to communicate the impending danger and stress the need to move to higher ground. The primary teams conducting this outreach included the Mobile Crisis Unit, Community Action Team, fire and police emergency response staff, and ranger services. All areas where occupants refused to leave or showed resistance to leaving were identified.

ACTIVATED EMERGENCY PLANS & PROCEDURES

EMERGENCY OPERATIONS PLAN
The City’s Emergency Operations Plan (EOP) underwent a comprehensive update in 2020 and was again updated in 2022, prior to these changes the City’s EOP was a 2011 document. The city benefited greatly from these changes as it added both a Debris Management and Recovery Plan, both of which were leveraged during the incident period. In addition to these plans, the EOC activated the Adverse Weather Annex of the EOP which includes storms, windstorms, severe winter storms, and localized flooding among other adverse weather conditions. Information on how the plans were specifically leveraged is discussed in the Strengths and Challenges Assessment section below.

PUBLIC WORKS STORM AND FLOOD RESPONSE PLAN
The Public Works Storm and Flood Response plan was most recently revised in March 2018 but has not undergone a comprehensive update since at least 2009. The plan provides response staff guidance on response levels, emergency call-taker procedures between City dispatch and the DOC, objectives and priorities, roles and responsibilities, resource inventories, and communication procedures. The Response Plan was leveraged by the Public Works team during the eight days that both the storm patrol and DOC were active during the incident period.

INCIDENT AND EOC ACTION PLANS
The Public Works Department developed Incident Action Plans for each Storm Patrol and DOC activation.

These plans provided incident objectives, details on the weather event forecast and anticipated impacts, operational deployment structure based on the level of actual storm impacts, and communication resources including contact information, public information news releases, and social media copy. The operational period of the Incident Action Plans was set to match the forecasted adverse weather period.

The EOC produced a total of six (6) Action Plans to support the City’s response to the storms during the incident period, beginning on the morning of January 9. The operational periods began at 12 hours and ran for two cycles. On January 10 at 0800 the EOC moved to a 24-hour operational period and on January 11 the EOC moved to a seven-day operational period after the EOC was downgraded to a level 3 virtual activation.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

RECOVERY ACTIVITES TO DATE

SUMMARY
The city began recovery activities in the early hours of the initial EOC activation on January 9 through various functions of the EOC. The local emergency proclamation, documentation, and initial damage estimate planning all occurred on January 9 which set the city up for success through short- and long-term recovery activities.

RECOVER BRANCH & ACTION PLANS
On January 10 the EOC formalized the Recovery function of the EOC by establishing an organizational structure of a Recovery Unit under the Finance Section, as outlined in the City’s EOP. The initial recovery objectives focused on completing public and private damage estimates, restoring city services to prestorm condition, connecting impacted businesses and community members to support resources, and conducting debris management activities.

The objectives and activities of the recovery unit were captured under the EOC Action Plan through the Incident Period. As the workload and complexities of recovery increased after the incident period ending January 31, the city moved from an EOC Action Plan to a Recovery Action Plan which provided a more robust and defined organizational structure, objectives, and assignments.

PUBLIC AND INDIVIDUAL ASSISTANCE PROGRAMS
Due to the impacts the storm and flooding had on both public and individual property. On January 17, San Luis Obispo County was added to the Presidential Major Disaster Declaration including both Public and Individual Assistance. The Public Assistance categories initially only covered categories A and B (debris removal and emergency protective measures accordingly) until the permanent work categories C-G were later added on February 1. Categories A & B were added at 100% FEMA coverage, 25% the normal cost share for the first 60 days of the incident.

For Public Assistance the City has participated in the Cal OES Applicants Briefing, FEMA Exploratory Call, FEMA Recovery Scoping Meeting, completed the Damage Inventory and is working through project site visits and scoping, along with project formation at the time this report was written. The city hired a consultant agency to assist with subject matter expertise to help maximize cost recovery through FEMA Public Assistance through the use of Category Z, management costs.

To assist with Individuals, the city expanded permit review hours to help streamline any construction permits needed to resolve storm-related damage and widely promoted the available federal programs offered under Individual Assistance. Additionally, the County’s Disaster Recovery Center (DAC) / Local Assistance Center (LAC) was opened in San Luis Obispo at the Veterans Memorial Building which provided services for those seeking Individual Assistance. The DAC/LAC remained open until February 14. Limited support was provided to the DAC / LAC from the City staff as the facility was managed by FEMA, Cal OES, and County OES.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

IV. STRENGTHS AND CHALLENGES ASSESSMENT

EMERGENCY OPERATIONS CENTER (EOC)
Overall, the City quickly and effectively activated the Emergency Operations Center (EOC) and was successful at reaching established objectives supporting the protection of life, and safety and limiting the loss of property and should be commended for the effectiveness that the EOC operated given that outside of COVID-19, the City’s EOC had likely not been activated since the flooding that occurred in the mid-late 1990s.

The rapid and successful activation can be attributed to several factors: (1) much preparedness work was completed the week prior due to anticipated impacts associated with the January 4-5 storms system including ensuring position-specific resources were organized and readily available, updating and printing maps and EOC aids including the Planning P, (2) City storm coordination calls that took place the previous week, (3) proactive communications between emergency response field staff, City Emergency Manager and Fire Chief Officers the morning of January 9, (4) decisive action from the City Manager/Emergency Services Director to activate, and (5) rapid response of personnel to the EOC.

The success of the EOC was aided by City leadership’s investment in emergency management and preparedness. Prior to the incident, this support translated to funding contract EOC training for City staff between 2021 and 2022, participating in the FEMA Emergency Management Institute’s CommunitySpecific Integrated Emergency Management Course in April 2022, and funding a full-time emergency manager position. These investments increased the skills and depth of the EOC team and provided a strong foundation for staff to fill the roles required with an EOC activation.

Despite the overall success, there were several challenges that the EOC encountered:
(1) The Public Works DOC voiced that EOC support could have been improved during the first 24 hours following activation. Based on feedback received from the DOC at the end of the first operation period, the EOC was able to focus attention on these shortcomings to make improvements. Some of the areas of needed support included assigning a GIS specialist to the DOC, improved direct communications between the DOC and EOC, and improved timing of meals being delivered for field staff coming off the night shift. The lack of a GIS specialist in the DOC resulted in delayed and incomplete road-closure details populating the City’s public dashboard.

Communications between the DOC and EOC may have been improved through a change in EOC Operations Section staffing structure. On January 9, the Fire Chief filled the Operations Section Coordinator role, and the Deputy Director of Public Works / City Engineer filled the Public Works Branch Leader position which is the structure that continued throughout the incident period.

Placing the Public Works Director into the EOC Deputy Operations Coordinator on January 9 would likely have improved communications and support to the DOC. Additionally, the support likely would have been improved had the EOC transitioned the Operations Coordinator position to the Public Works Director beginning on January 10 after rescue and evacuation life safety concerns diminished.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

(2) The EOC facility is a shared space and is limited in both size and technology which impacted operational efficiencies. The facility, which primarily serves as the Fire Department Training room, lacks the square footage necessary to seat the staffing required to operate a level 2 or level 1 EOC activation and requires sections and staff to work in separate areas. Additionally, because the space is shared, the EOC resources must be pulled from storage and assembled at the time of activation. Additionally, the EOC contains a total of three monitor screens and a projector. The maximum variation of displays currently capable is 2. This limitation limits what essential elements of information can be in the EOC. Finally, the city has yet to deploy a robust EOC Software Program to manage documentation and communications during an activation. This challenge was lessened by the prior development of an EOC Resource Page on SharePoint, which serves as the central repository of all EOC documentation including incident-specific documents.

An integration of this site and EOC Microsoft Teams may be a viable, low cost, and near-term solution to the software shortcoming.
(3) Communication flow gaps between the various response groups including the EOC, DOC, field, and dispatch impacted the timeliness and accuracy of information to both internal and external stakeholders. One of the most apparent items was the status of road closures. It became clear that a number of issues and concerns that were identified in the DOC were not relayed to the EOC due to a lack of staffing resources to relay the information. An EOC software with situation status reporting and defined liaison roles between the working groups may be a solution to these gaps. (4) At times meetings used for the planning process to develop the EOC Action Plans lacked clarity on who should participate and the agendas of the meetings. These resources were available but did not get fully leveraged. Training and verbiage updates to the “Planning P” should help overcome these challenges.
(5) Request tracking from the DOC and other field staff was limited. While all resource requests seemed to have been met, having a tracking spreadsheet would have helped confirm this and improved the accountability of resources. Additionally, this tracking would have likely expedited any resource requests needed to be made to the Operational Area Coordinator, County OES. (6) The City has a Disabilities, Access, and Functional Needs Officer identified in the EOC organizational structure; however, a staff member was not assigned to fill this role and ultimately responsibilities were assumed by the Emergency Services Director who lacked the capacity to address the position’s responsibilities. A conversation occurred early on January 9 to staff the position, however, there was a lack of follow-through by EOC staff to activate it. Part of the reason this occurred is the pre-identified staff position in the city was vacant at the time of the activation.

Training and pre-established expectations should resolve this from being repeated for future events.
(7) While ultimately not needed, the EOC lacked an identified plan or structure to staff the EOC overnight beyond a small skeleton crew. This may have caused significant operational impacts should the incident have required full EOC staffing overnight. (8) Currently no robust notification system exists to push notifications to staff, which is the policy under the EOP when the EOC is activated. This challenge did not ultimately impact the EOC as an email sent to EOC staff members on January 9 successfully reached staff, however, emails are not effective ways to reach staff, especially during off-work hours.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

PUBLIC WORKS DEPARTMENT OPERATIONS CENTER (DOC)
Overall, the Public Works Department Operations Center (DOC) effectively managed the demanding and complex response needed to manage the impacts caused by the series of storms that San Luis Obispo experienced during the incident period. The DOC was especially successful at adapting response levels to meet community and incident needs, including the relocation of the DOC facility and the proactive closure of the Marsh Street bridge at the intersection of S. Higuera St. The incident response also provided an opportunity to conduct knowledge transfer between seasoned staff and newer employees. Additionally, the DOC was successful at deploying a combination of city staff and hired contractors to address reported hazards and staff road closures.

Several DOC challenges were identified above as they were related to EOC activities (see items 1, 3, and 5). In addition to these aforementioned items, the DOC faced some other notable challenges:
(1) DOC Location: The Public Works DOC’s primary location is the City Corporation Yard at 25 Prado Ln. which is the operational headquarters for the department and houses fleet, equipment, and supplies. Under normal circumstances this is the ideal location for a Public Works DOC, however, the property sits in a flood plain and was impacted by flooding during the January 9 Storm which required staff to move the DOC to the alternate site, the Ludwick Community Center (Ludwick).

This site served the DOC well as it provides ample staging area for equipment and vehicles, has the needed infrastructure to support DOC activities, and is well outside any flood zone. The transition to Ludwick caused some operational impacts and subsequently staff preemptively located future DOC activations at the Ludwick. It is recommended that the DOC’s primary location be moved to the Ludwick for all flood-related incidents unless a more suitable location is identified outside of flood-prone areas.
(2) Staffing: Due to the extended and repetitive nature of the storms during the incident period, Public Works Staff worked extended hours for multiple days at a time, with little relief. While DOC staff did an admirable job at keeping up with the incident despite the challenging conditions, and effectively managed the storm, a staffing plan including outside department staff member support would likely establish a more sustainable schedule for staff. Additionally, this will help ensure department leadership can maintain a presence within the City EOC as Operations Section Coordinator or Deputy Operations Section Coordinator. Finally, better leverage of the Incident Command System can improve the DOC’s ability to match staffing levels to meet incident demands.
(3) Resource Tracking (location availability): While the DOC effectively assigned resources, significant communication and coordination was required to dispatch the proper units needed to address a newly identified incident, or an existing incident that required additional resources. Having a visual location identification system, similar to technology used by police and fire, would create efficiencies for DOC dispatching staff and the incident commander. (4) Communications between the Field and DOC: Per the Public Works Storm and Flood Response Plan, radio communications utilize plain talk and first and last names. Mixed feedback was received regarding the use of names as some feedback indicated that call signs might avoid confusion for staff with duplicate first names. Radio communications naming structure should be

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

evaluated during future Storm and Flood Response Plan updates. Additionally, the high call volume, specifically on January 9, caused staff to be overwhelmed, which impacted communications. A reflexive staffing model built into the storm response plan would be beneficial for future responses.

INTERNAL AND EXTERNAL COMMUNICATIONS

SUMMARY
One of the most essential elements of an effective response and management of large-scale incidents and natural disasters is communication but is also of the greatest challenges in emergency management.

Communication needs apply to both internal (response staff, leadership, policymakers, and nonresponding employees) and external (the general public, and partner agencies) stakeholders to ensure these groups get the right information, at the right time, so they can make the right decisions.

Overall, feedback regarding communications was widely positive from both internal and external stakeholders. Despite this positive feedback, there were many challenges that impacted communications.

Many of these challenges have been identified in the EOC and DOC sections above (see EOC items I, 2, 3, and 8 and DOC item 1), this section outlines other key findings related to communications.

INTERNAL
(1) One of the most frequent public-city interactions occurs at the front desk and general phone lines of city departments and facilities. As such, most city administrative assistant staff who are responsible for these areas saw a significant number of requests for information from community members. During the incident period, most of these staff members lacked access to the incident update chat that the EOC and DOC used on Microsoft Teams and did not have current information to answer public inquiries. As the incident period progressed, more and more of these staff members gained access but very few had the information available on January 9. Moving forward a process should be formalized to ensure that these staff members are automatically included on updates of verified and publicly approved essential elements of information. Additionally, quick sheets with key incident information and referral sites (phone numbers, websites) should be provided to these employees as quickly as possible.
(2) The city currently lacks any program to provide instant notification to City employees outside of email or computer-based platforms. This delays essential information from being received by staff until they review emails, causing even further delays if the employee does not have a city-issued cell phone with email capabilities. On January 9 the EOC decided to close non-essential city facilities and encourages staff to work from home, if possible. Most employees did not learn or see this information until arriving at work that morning. A mobile phone-based notification system can make significant improvements to this challenge. (3) To improve the situational awareness of the storms and associated hazards a total of 17 “All City Employee” emails were issued to alert staff to severe weather forecasts and issued warnings from the National Weather Service. Additionally, an All-City Email was sent out at 7:56 AM on January 9 informing staff that the City EOC had been activated and included some instructions for actions

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

that staff should take along with a brief situation status report and safety message. These communications received a significant amount of positive feedback both during and after the incident. One area of improvement that was expressed was for City leadership to conduct a citywide virtual briefing summarizing the extent of the emergency, actions taken by the city, and future outlook.

EXTERNAL
(1) On January 9 the EOC developed a city landing page with a website banner that included essential incident-related information including storm preparedness, sandbag fill locations, and a map dashboard showing road closures and hazard details. This site remained open throughout the incident period and later added key recovery information for community members. One of the biggest challenges with this page was the timely updating of the road-closure map on January 9.

This challenge has been previously discussed and likely occurred due to the communication gaps between the EOC and DOC and the DOC not having a GIS specialist in-house on that day. (2) Communication challenges were observed with the business community. While communications were reaching these groups, feedback received from downtown businesses was that earlier proactive communications would have been helpful. This includes information on floodgates and potential pre-established trigger points for floodgate deployment or evacuations. Given the successive nature of the storms during the incident period, there was general fatigue reported from businesses regarding closures and business disruptions. Additionally, certain areas, even within downtown, saw very limited storm impacts while others experience significant flooding and loss. Education on emergency procedures around shelter-in-place, evacuation warnings and orders, and road closures and legal authorities from the city would be very impactful for some business owners.
(3) While there is limited feedback on how well the information was received, a significant amount of proactive storm communications took place leading up to the January 9 events. A summary of these activities is included in the “Pre-EOC Activation Public Communications” section above.

Communications took place over traditional and social media platforms, some lacked multilanguage formatting, which means the messaging may have missed certain community groups.

Additionally, these traditional communication methods don’t reach a large group of the population as they require community members to be active on social media, watch local news, or subscribe to City news notifications. Leveraging other communication methods would likely improve the reach of key messaging and may include door-to-door notifications, targeted mailers, and physical signage.
(4) After the immediate health and safety threats diminished, external communications transitioned to focus on recovery resources and established an abbreviated recovery URL for the City website (slocity.org/recover). This included possible individual recovery resources available through the City, County, State, FEMA, the Small Business Administration, and other programs. Additionally, an initial concern and focus related to assisting community members handle debris associated with the storms, which very shortly after the January 9 and January 14 weather events began to be deposited onto City right-of-way areas, posing health and environmental concerns. To assist

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

the community with debris removal and management, the city provided several roll-off dumpsters near the hardest hit areas and the City Corp Yard at no cost to the community. While these events were widely used and a huge help and benefit, some feedback stated that communications could have been improved by showing the rules, requirements, and operating hours of these resources. Detailed signage, door hangers, and improved knowledge from those staffing these sites would have likely eased some community frustrations over the lack of information.
(5) After the storm, the city sent out several staff members to conduct damage surveys. Because these staff members were often the first direct post-storm interaction with residents, the community members were often hungry for information. While the damage survey teams were equipped with some key talking points and direction on where to send community members for questions they weren’t able to answer, some feedback reported frustration over the lack of information these staff members were able to provide. A more robust resource page for these teams would have likely helped this challenge.

EXTERNAL AGENCY COORDINATION

SUMMARY
A critical component to managing complex incidents that require the activation of the EOC is effective external agency and partner coordination. This function is primarily managed by EOC staff and led by the Liaison Officer. The primary external agencies that the City coordinated or partnered with fall under four categories: (1) educational institutions, (2) government agencies, (3) private industry, and (4) nongovernmental organizations or non-profits.

The city proactively fosters these relationships through day-to-day business interactions and through the provision of city services, which helped the city leverage these relationships during the incident to ensure community groups were informed on critical information, and secured assistance when needed.

While most of this coordination was successful, a few notable challenges were identified both during the incident and during the after-action surveys, interviews, and outreach.

EDUCATION
Local lower-education institutions including the local school district, private, and charter schools often look for information and guidance from the County Board of Education. Due to the county-wide nature of the storms, information making it to local agencies may have been delayed and impacted local lowereducational institutions to make timely decisions on school closures or altered operations.

Cal Poly State University and the City EOC were in continuous contact with each other. Cal Poly had critical decisions to make regarding the cancellation of in-person classes and the closure of non-essential services.

The city provided information to the University to assist in their decision making including an early morning conference call on January 10. One challenge that occurred between Cal Poly and the City related to the disposal of dairy lagoon supernatant. The University needed to dispose of this contaminated water

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

as it was at risk of spilling into nearby waterways and sought disposal sites. Early confusion on January 9 led the University to temporarily believe the City’s Wastewater Treatment Plant would accept the pond volume, however, the City Utilities Department quickly corrected this miscommunication and attempted to assist the university in an alternate disposal site including the City of Santa Maria while continuously evaluating their ability to later accept the lagoon water. Ultimately, Cal Poly was able to resolve the issue.

GOVERNMENT AGENCY
An isolated challenge between the EOC and the County of San Luis Obispo was related to local homeless shelter overflow. The EOC requested assistance with sheltering these individuals as traditional Red Cross Evacuation Shelters are not generally able to accept transient populations who have not been evacuated due to the incident. Ultimately a solution was found by transporting shelter overflow individuals to other County homeless shelters run by non-profit organizations. While a solution to was identified and successfully implemented, a lack of issue ownership of the issue resulted in unnecessary delays.

PRIVATE
The ability of local private organizations to withstand and recover from natural disasters is vital to the local economy and vitality of the city. One of the most robust hazard mitigation programs in place is the floodgate program for businessesin flood zones. While many businesses successfully deployed floodgates, the deployment was not universal and if the flooding were more widespread, many local businesses that did not deploy floodgates would have likely sustained more damage than businesses that did. Because the successful deployment of floodgates requires a partnership between the city and private businesses, an improved coordinated effort should yield higher deployment rates. The effort will likely require communication, inspections, information and training resources, maintenance and accountability of the gates and installation sites, and reliable deployment plans.

NON-GOVERNMENTAL ORGANIZATIONS / NON-PROFITS
Non-governmental organizations and non-profits played a major role in aiding the unhoused community members in San Luis Obispo. Because a significant number of this population group reside in creek areas, many were displaced by the flood waters and sought shelter at the CAPSLO’s 40 Prado Homeless Shelter Facility. Because of the influx in demand, the facility quickly ran out of space. To add to this challenge, Red Cross Evacuation Shelters, are not generally able to support this population group. This required the city to identify a place to shelter the 40 Prado overflow group and sought assistance from the County of San Luis Obispo. Fortunately, CAPSLO worked with other non-profit facilities in the county including 5Cities Homeless Coalition and El Camino Homeless Organization to temporarily house this group. Without these organizations’ facilities and willingness to assist, the city would have been met with a significant challenge in meeting the needs of this group.

Separately, the city requested through Country OES to activate an evacuation shelter due to approximately 100 local evacuees from the storm. Red Cross initially experienced challenges establishing a shelter on January 9. During “blue sky” conditions, the Central Coast Red Cross establishes pre-existing agreements with shelter sites throughout the County. While many of these agreements were in place

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

locally, Red Cross struggled to identify a facility that was willing to honor the agreement. Additionally, Red Cross has experienced a significant drop in volunteer numbers organization-wide, reducing the staffing available to stand up a shelter. Eventually Red Cross was able to open an evacuation shelter at 4:30 PM on January 9 at the Church of the Nazarene, which housed approximately 10 individuals overnight. The shelter was closed the next day due to improved storm conditions, low census numbers, the lifting of a local shelter-in-place, and the cancellation of flash flood warnings. The challenge of activating a shelter persists and will require further coordination between the city, County OES, and Red Cross to address.

RELEVENT PLANS

EMERGENCY OPERATIONS PLAN (EOP)
The Adverse Weather Annex guides when to activate the EOP and EOC, including the EOC location and activation level provides a structure for situation reporting and department responsibilities, communication considerations, and resources. One section of the annex that was not utilized was the “Situation Reporting Zones” which provides a written description of four pre-identified zones in the city.

It would be beneficial to update the written zones with a map and ensure the map and zones are aligned with the Public Works Storm Response Plan zones and other public safety response zones.

The City’s Recovery Plan is a robust document that provides direction on short-term and long-term recovery activities and operations to improve the City’s ability to manage the impacts of an emergency.

The plan also outlines department roles and responsibilities. A particularly useful portion of the plan includes different state and federal recovery assistance programs and the pre-requisites for each program to be activated, or available. It also provides details of the assistance programs including cost share requirements, implementation criteria and helped identify the possible assistance of private landowners through the Emergency Watershed Program under the Natural Resource Conservation Service. Detailed information on the FEMA Public Assistance Program was also useful outlining the different categories, program eligibility, procurement processes, and closeout. Finally, the plan includes specific resources such as a Recovery Unit Leader checklist and damage estimate and assessment worksheets. Staff identified some inconsistencies with these worksheet titles and FEMA terminology. An update to these document titles along with the details collected by County OES will improve the usefulness of these resources.

Due to the complexities of debris management after a natural disaster, staff created a specific Debris Management Plan within the EOP to help City staff maximize cost recovery eligibility within the California Disaster Assistance Act (CDAA) and Federal programs including FEMA Public Assistance. This plan provides significant guidance on the activities that can and should be taken while removing debris from various locations including roads, buildings, natural streams, and private property. While the Plan provides guidance, the lack of plan familiarity from Public Works staff led to confusion during the early days of debris removal activities, specifically the scope of work and potential public assistance eligibility.

Additional confusion was encountered when it became difficult to define what may meet an “immediate threat to life and health” for debris within waterways. Staff found several FEMA public assistance guidance documents and appeal decisions that used a 5-year rain event as the threshold for the debris to cause a threat to life and health. This information was shared with the staff managing the debris removal;

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

however, it would be beneficial to provide this guidance within the plan. It would also be beneficial to have established routine debris management training for public works and Utilities Staff who manage debris and waste post-natural disasters.

PUBLIC WORKS STORM AND FLOOD RESPONSE PLAN
The Public Works Storm and Flood Response plan was most recently revised in March 2018 but has not undergone a comprehensive update since at least 2009. Due to its extended age, Public Works staff identified the need to conduct a comprehensive update and had been scoping out a process to complete this update before the incident period. The current plan was originally developed by a staff member that had not experienced significant flood events and subsequently lacks key components. Additionally, the plan was not updated when the city completed a comprehensive update to the EOP in 2020 and contains incongruencies. For example, a level 1 activation in the EOC is the largest response, while level 5 is the largest response in the Storm and Flood Response Plan. Staff are planning to utilize many lessons learned from this incident to inform a comprehensive update scheduled to take place mid-late 2023 and will work with city emergency management to ensure the plan is aligned with the EOP.

PUBLIC WORKS INCIDENT ACTION PLANS (IAP)
The Public Works leadership team developed Incident Actions Plans (IAP) for each major storm event during the incident period. The IAPs provide essential elements of information for the DOC to operate including objectives, weather event forecasts and anticipated impacts, operational deployment structure based on observed storm impacts, and communication resources including contact information and public information news releases, and social media copy.

There is an opportunity to have the DOC utilize the formatting and standard forms of the EOC action plan.

These are well-vetted ICS forms and documents and have continually shown success in providing structure to action plans. This transition will require training, however once initial draft action plans are developed, they can be easily duplicated for future events. Additionally, it will improve familiarity with staff that cross between the EOC and DOC.

EOC ACTION PLANS
EOC staff successfully generated six EOC Action Plans during the incident period. These plans were essential to ensuring roles, responsibilities, and work efforts were known to EOC staff so they can meet the management objectives established by the Emergency Services Director. One of the challenges of the development of the modified ICS 202 is that the form was widely used by existing staff during COVID-19 which was a unique incident with extended operational periods and many ongoing work efforts. This experience has led to an overly detailed 202 form which may be easily managed during initial operational periods but becomes difficult to manage once the incident transitions away from the initial response.

Many activities identified within the EOC Action Plan spanned beyond operational periods, and the list of activities was often unachievable within the operational period. The modified ICS 202 should be explored as more of a working document outside of the EOC Action Plan to help improve efficiencies and ease the administrative management of this plan. Leveraging ICS 204 forms should help with this transition.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

Additionally, the number of management objectives began to grow to an unmanageable level due to the specificity of the objectives. Many of the assigned management objectives could have been condensed into broader objectives. Limited management object changes should occur from one operational period to another without a significant change in incident status.

TRAINING
As mentioned in the EOC section above, previous training was key to the success in responding to and managing the incident. The training provided strong familiarity with both the response and recovery aspects of the storms. In the two years leading up to the incident period, the city held the following trainings:
• 2 EOC functional exercises (one covering a flood event, another covering a downed commercial passenger aircraft)
• 3 EOC position-specific courses
• 1 general-employee EOC course
• 1 elected official’s course
• A 4-day FEMA Emergency Management Institute’s Community-Specific Integrated Emergency Management Course, which included:
o Multiple PowerPoint-led training sessions
o 2 EOC tabletop exercises (one involving an earthquake recovery, another involving a passenger train derailment)
While these training opportunities provided a strong foundation for staff to respond to this incident, several future training opportunities have been identified to both enhance existing capabilities and improved response. This includes Disaster Service Worker training for all employees to improve employee expectations and home preparedness when those employees are required to work during times of a locally proclaimed emergency or state of emergency. Additionally, specific sections within the EOC have expressed a desire to have more focused training within their section of the EOC outside of the larger EOC group. Finally, field-level training was identified including regular “tailgate” training and incorporating emergency documentation requirements that are not utilized during day-to-day operations.

Another area in which training will likely improve response is the incorporation of DOC training into EOC training opportunities or holding DOC exercises outside of EOC drills. Finally, significant feedback was received to improve the depth of positions which will require additional staff to participate in training opportunities including shadowing opportunities.

RECOVERY
Initially, a Public Works employee was designated to lead the recovery unit and filled that role during the first two weeks of the incident and primarily oversaw the initial damage estimate work effort. Once that was concluded, the management of the Recovery transitioned to the Assistant City Manager as the Recover Branch Director and the Emergency Manager as the Deputy Director, and a Recovery Branch was formalized with an established organizational structure. This organizational transition was more in-line

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

with the City EOP, which designates the Assistant City Manager as the primary position to lead the City’s recovery efforts.

Due to the complexities of the recovery effort and the needed support from both the Finance and Public Works Departments, the Recovery Branch developed a Recovery Action Plan to replace the EOC Action Plan. This organization remained in place for several months until the work became operationalized, and the FEMA Public Assistance Process was initiated and well-established.

The earlier establishment of this structure would have likely resulted in a more organized response and support of the departments involved in Recovery. Additionally, as mentioned previously prior training with the City’s Recovery and Debris Management Plan would have improved staff’s clarity on recommended actions to take, and documentation to collect.

One of the greatest assets put in place during recovery was the use of a mobile “field maps” application to document and track damaged locations. This data was easily pulled into an Excel format, allowing an initial damage estimate to be comprehensively made, continuously updated for project tracking, and also fed into a dashboard showing estimated damages and damaged site locations. The early activation of this resource was invaluable to staff. Some challenges that did exist with this process were the high number of staff inputting data and inconsistencies between damage estimates and the level of detail. Previous training and pre-identified staff would help resolve this. Additionally, earlier assessment from more qualified staff to estimate damage totals would have likely resulted in more accurate damage estimate numbers earlier on during the recovery process. This was partially delayed by the higher creek levels that hid the full extent of the damage and the high demand for engineering staff to address emergency repairs.

INCIDENT-SPECIFIC ACTIONS
While this report is not intended to address the variety of operational response actions and tactics, several notable items should be considered for future incidents.

Temporary Refuge Areas(TRA): Fire staff (Battalion Chiefs and Emergency Manager) quickly identified two locations as temporary refuge sites until the hazard was mitigated, or until an evacuation shelter was established. These sites were located in the southern and northern portions of the city (Marigold Shopping Center and Foothill Plaza). One Fire Inspector was sent to each location to help liaison with evacuees however no evacuees were identified at these temporary sites. The lack of evacuees may have been due to insufficient communications, lag-time of establishing and communicating the zones from the actual evacuations, difficulty navigating City streets to the locations due to roadway flooding, or the lack of temporary sheltering needs around the impacted areas. Staff noted that other areas of the city would be well served for a TRA including central and eastern portions of the city.

Pro-Active Marsh Street Closure: The proactive closure of the Marsh St. / Highway 101 on and off ramps to allow for the closure of the Marsh St. Bridge at South Higuera was seen as a success and operationalized since the January 14 event. Per public works leadership staff, this tactic had been previously identified, but the speed at which the January 9 storm materialized prevented public works from implementing this tactic due to the dangerous flood waters moving across the bridge. The January 14 and subsequent storms

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did not generate as large of an impact as January 9 and so it is difficult to assess the effect the tactic would have had the morning of January 9. Regardless, there seemed to be enough benefit to continue making this an operational response option to adverse weather conditions. It would be recommended to explore trigger points for making this proactive step to avoid missing the opportunity to implement this flood reduction tactic prior to flooding across the roadway.

Sandbag fill locations: The City maintains four sandbag locations throughout the city, the Corp Yard at 25 Prado Rd., Laguna Lake Golf Course at 11175 Los Osos Valley Rd., Santa Rosa Park at 190 Santa Rosa St. and Sinsheimer Park at 900 Southwood Dr which are activated at certain forecasted rain amounts. These locations remained stocked with sand throughout the incident, however, access became a challenge at Prado Rd on January 9 due to flooding. While sand remained sufficient, the City has not historically provided sandbags at the fill locations but alternatively provide a list of local vendors that sell the bags.

On January 9 these vendors saw a sudden surge in demand for sandbags and ran out of inventory. To help improve access to sandbags, it would be recommended to explore (1) providing sandbags at the fill locations to ensure adequate supply, and (2) providing staffing or coordinating volunteer efforts to assist with filling sandbags to improve accessibility to those with access, disability, or functional needs to help improve the likelihood these community members can secure and deploy sandbags.

Homeless encampment surveys: The proactive notification and outreach to the homeless populations living in and near the creek was seen as a huge success due to the lack of any reported injuries, or rescues among this group who was in the direct path of the dangerous flooding that occurred during the incident period. This work was accomplished by a large team of staff members including the Community Action Team (CAT), Mobile Crisis Unit, Ranger Staff, Police, and Fire staff. While staff observed some groups as being resistant to moving, most individuals and groups moved to higher ground before the storms. Prior to the January 5 storm staff explored conducting an actual evacuation of the areas, or instead taking the outreach approach. The outreach model was ultimately selected due to the anticipated low evacuation participation rate and the lack of a realistic housing plan to support the group. This decision is viewed as a success. It may be beneficial to explore a written and exercised outreach and evacuation plan for the unhoused community to formalize procedures during emergency events including post-incident surveys.

Police staff did conduct several creek surveys after the storms; however, they were done pro-actively and independently, rather than part of a pre-identified plan.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

V. APPLICATION OF THE STANDARDIZED EMERGENCY MANAGEMENT SYSTEM (SEMS) & NATIONAL INCIDENT MANAGEMENT SYSTEM (NIMS)

CALIFORNIA STANDARDIZED EMERGENCY MANAGEMENT SYSTEM (SEMS) The California Standardized Emergency Management System (SEMS) is the State’s emergency response system and provides the structure for the response phase of emergency management. The system brings together the different elements of the State’s emergency response community into a single integrated and standardized system including the Incident Command System (ICS), Multi/Inter-agency coordination, Mutual Aid, and the Operational Area Concept. At its heart, SEMS helps ensure incidents start and end locally. Per the California Emergency Services Act 2021 (ESA) local government agencies must use SEMS in order to be eligible for any reimbursement of response-related costs under California’s disaster assistance programs.

During the incident period, the city utilized many pre-established SEMS elements. ICS was used at the incident level by response staff up to the Emergency Operations Structure. ICS allowed the city staff to manage the incident by objectives and included the development of Incident Actions Plans at the field level and EOC Action Plans at the EOC level. The EOC utilized the Operational Area Concept and multi/inter-agency coordination to support incident needs that the city lacked the resources to accomplish on its own. The City participated in Operational Area Coordination calls to provide County OES with conditions, actions, and needs, communicated the activation of the EOC and proclamation of a local emergency on January 9, and continued to remain in direct contact throughout the incident through established communication methods. Ultimately neither fire nor police mutual assistance was requested by the city, however sheltering support requests were made to the Operational Area Coordinator, County OES. The City Public Information Officer also coordinated with the County’s EOC PIO to help ensure unified messaging and critical information was shared appropriately. City staff also ran all information and details that needed to be provided to Cal OES and FEMA for recovery purposes through the Operational Area Coordinator, who ultimately transmitted the details up the SEMS structure to OES Region who passed it along to the State. Finally, the City’s current 2022 Emergency Operations Plan is SEMS compliant and was used to manage operational response to the incident.

To improve city staff member familiarity with SEMS, city emergency management is rolling out a training requirement for all staff to complete G-606 “Standardized Emergency Management System Introduction”.

All staff are expected to have this training completed prior to the end of the calendar year 2023.

NATIONAL INCIDENT MANAGEMENT SYSTEM
Per the Federal Emergency Management Agency (FEMA) The National Incident Management System (NIMS) guides all levels of government, nongovernmental organizations, and the private sector to work together to prevent, protect against, mitigate, respond to, and recover from incidents. NIMS provides stakeholders across the whole community with the shared vocabulary, systems, and processes to successfully deliver the capabilities described in the National Preparedness System. NIMS defines

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

operational systems that guide how personnel works together during incidents. Local, state, territorial, and tribal nation jurisdictions are required to adopt NIMS to receive federal preparedness grants.

The city has adopted NIMS throughout the organization and the City Emergency Operations Plan is an extension of the State Emergency Plan and is written to be NIMS compliant and the National Response Framework. Additionally, the city requires all staff members to complete basic level ICS and NIMS training to ensure all first responders can respond and act in accordance with NIMS during emergencies. By law, all City employees are emergency responders during times of local emergency, state of emergency, or wartime. Depending on the rank of the employees the training includes ICS 100 “Introduction to the Incident Command System”, ICS 200 “Basic Incident Command System for Initial Response”, IS 700 “An Introduction to the National Incident Management System”, IS 800 “National Response Framework, An Introduction” and IS-908 “Emergency Management for Senior Officials”. At a minimum, all staff must complete ICS-100 and IS-700.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

VI. REPORT CONCLUSION
The City of San Luis Obispo faced a challenging natural disaster event during the incident period. The resulting impacts challenged the organization, its staff, and community members in ways the city has not experienced in decades. The resulting whole community response to meet the needs of the incident was nothing short of impressive. This includes the city, governmental and non-governmental partners, the private business community, educational institutions, and grassroots volunteer groups.

Despite many successes experienced by all levels of the community, there were many areas of improvement that will make future responses more effective. This report hopes to formalize these areas, especially due to the low frequency that these events do occur.

An important note is that the value of this report diminishes as time passes if staff does not carry out, institutionalize, and share the identified improvements and lessons learned with future staff members.

This report should be incorporated into all succession planning that occurs at the emergency management level of the city and regular training should take place to ensure the items outlined in this report and subsequent improvement plan are institutionalized moving forward.

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

VII. POST-INCIDENT IMPROVEMENT PLAN
The goal of the after-action report is to identify actions to improve future responses and EOC activations which will allow the city to manage major emergencies and disasters more effectively while also providing essential services. The following table outlines the identified improvement items during the after-action review and reporting process. This improvement plan is intended to assist city emergency management in planning, executing, and tracking action items moving forward. It is important to identify the priority level, and resources needed to accomplish each action item to allow staff to provide a realistic framework to achieve the work effort.

The priority levels were defined as follows:
• High: Action item addresses an issue that either hampered response during the incident period, has a high likelihood of hampering future response, or addresses a safety issue. • Medium: Action item would provide measurable improvement for future responses. • Low: Action item would assist in future responses, or improve operational efficiencies, however lack of action would not likely hamper or reduce response capabilities.

Item
#
Subject Area(s) Description Delivery
Timeframe
Resource
Needs
Priority
Level
1 EOC, DOC,
Communications,
Training
Identify and implement an EOC software program
for communication and document tracking. Once
identified, train staff to use within both DOC & EOC
< 1 Year Staff time High
2 Plans, DOC Update the Public Works Storm and Flood Response Plan that is compatible with City EOP and ensures
adequate organizational structure and capacity.
< 1 Year Staff Time,
possible
contract
funding
High
3 DOC Explore updating the primary PW DOC location to
the Ludwick Center or an alternate site located
outside of the flood zone. Ensure selected option
has infrastructure capable of housing the DOC.
< 1 Year Staff Time,
possible
infrastructure
funding
Medium
4 DOC, Planning,
EOC
Incorporate GIS specialist into DOC activation
staffing and designate PW staff to fill Operations
role in EOC.

Immediate Minimal staff
time
High
5 EOC, Planning Update the City Emergency Operations Center SetUp Plan including staff resources such as wall mounted job-aids, position-specific binders, and IT
needs. Include deployment plans based on
activation level and information on what each
activation level means.
<1 Year Staff Time,
possible
operating
expenses
Medium
6 EOC Improve flexibility to display information on EOC screens and explore the addition of more connected
screens throughout the EOC/Station 1 (offices,
training room, work areas, engine bay)
1-2 Years Staff Time,
Infrastructure
costs
Medium
7 Communications,
Coordination,
Update City Floodgate program to ensure (1)
business locations are inspected in some capacity to
< 1 Year Staff Time High

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

Planning,
Training
ensure compliance and deployment plans are in
place, (2) improve public communication and
training resources, (3) Explore the development of
trigger points to make recommendation for
businesses to deploy flood gates.
8 Coordination Work with County Office of Emergency Services and Red Cross to improve reliability of shelter locations
and expediency of activation.
< 1 Year Staff Time High
9 Coordination Work with the County Office of Emergency Services, Social Services, and no-profits such as CAPSLO to
ensure pre-plans are established to house homeless
populations and accommodate local shelter
overflow.
< 1 Year Staff Time Medium
10 Planning Update Emergency Operations Plan Situation
Reporting Zones and align with other City response
plans such as the Public Works Storm and Flood
Response. Use map images to go along with written
zone descriptions.
1 – 2 Years Staff Time Low
11 Planning,
Recovery
Update the City Recovery Plan resources to match
correct terminology and required information for
Initial Damage Estimates for Preliminary Damages
Assessments.
1 – 2 Years Staff Time Low
12 Training,
Recovery
Train appropriate city staff on City Recovery and
Debris Management Plan at least once every two
years.

Ongoing Staff Time Low
13 Recovery,
Training
Pre-train damage assessment teams for more
uniformity in damage cost estimates. Incorporate
City Engineering staff earlier into the process to
update costs as needed.

Ongoing Staff Time,
possible
training
budget for offsite training
Medium
14 Planning Update the Debris Management Plan with best practices on evaluating immediate threats to life,
health, and safety, especially with guidance on
handling debris removal in waterways.
1 – 2 Years Staff Time Low
15 Flood-Specific
Response Actions
Explore including sandbags at sandbag fill locations.

Explore a staffing or volunteer led model for
assisting with filling and loading of sandbags for
community members. Include evaluating trigger
points for these actions. Incorporate all decisions
into the PW Storm and Flood Response Plan.
< 1 Year Staff Time High
16 Flood-Specific
Response Actions
Pre-identify Safe Refuge Areas from flooding at 4
separate locations in the city and ensure they are
known to public safety staff ordering or
implementing evacuations (South, North, West and
Central)
Immediate Minimal Staff
Time
Medium

City of San Luis Obispo 2022-23 Storms After-Action Report & Post-Incident Improvement Plan

17 Flood-Specific
Response
Actions, Planning
Identify trigger points for deployment k-rails at of
the Marsh St. / S. Higuera intersection and removal
of railings on bridge. Incorporate into Storm and
Flood Response Plan.
< 1 Year Staff Time Medium
18 Flood-Specific
Response Actions
Establish protocol for conducting creek outreach to
homeless encampments and groups. Develop creek
evacuation plan along with mid- and postemergency survey of area. < 1 Year Staff Time High
19 Planning, training Update PW Incident Action Plan for to utilize ICS established forms. Train staff on proper use of the
forms and field staff with how to use the new IAPS
< 1 Year Staff Time Medium
20 Communications
and Coordination
Incorporate local schools (school district, private,
charters) into city communications and liaison
efforts regarding emergency incidents.

Immediate Minimal
resources
required
Medium
21 Communications Identify and implement process to ensure staff who regularly field public calls or occupy a city facility
front-desk are provided with essential elements of
information about major emergency incidents.
< 1 Year Staff time Medium
22 Communication Identify and operationalize a mobile phone-based mass notification system to provide critical
emergency information to internal staff members.
< 1 Year to
2 years
Staff time,
possible
subsc. costs
High
23 Coordination Provide annual disaster preparedness training available to the business community. Work with
Downtown SLO and the Chamber of Commerce.

Ongoing Staff Time Medium
24 Communication Identify and operationalize non-digital based public communication systems to leverage during
anticipated events or during events to maximize
reach of communications including the addition of
Spanish language communications
<1 Year Staff Time,
possible
contract
services
Medium
25 Training, DOC Cross train public works dispatch staff for DOC with City ECC Dispatchers to help establish best practices
and efficiencies while dispatching high call volumes.
< 1 Year Staff time Medium
26 DOC Identify system to improve non-public safety field response vehicle tracking and availability similar to a computer-aided dispatching (CAD) system leveraged
by public safety for use by DOC dispatchers.
1 - 2 Years Staff time and
technology
investment
costs.

Medium
27 EOC, Planning Train with Planning Section Team to refocus how forms ICS-202 is utilized. Train with Emergency
Services Director and Deputy Director on
management objectives
<1 Year Staff Time Medium

City of San Luis Obispo                                     2022‐23 Storms After‐Action Report & Post‐Incident Improvement Plan

VIII.  REPORT REFERENCES & RESOURCES

ACRONYMS
Cal OES – California Governor’s Office of Emergency Services Cal Poly – California Polytechnic State University, San Luis Obispo CAT – Community Action Team
CAPSLO – Community Action Partnership of San Luis Obispo CDAA – California Disaster Assistance Act
DAC – Disaster Recovery Center
DOC – Department Operations Center
EOC – Emergency Operations Center
EOP – Emergency Operations Plan
ESA – California Emergency Services Act
FEMA – Federal Emergency Management Agency
GIS ‐ Geospatial Information Systems
IAP – Incident Action Plan
ICS – Incident Command System
IS – Independent Study
LAC – Local Assistance Center
NIMS – National Incident Management System
NWS – National Weather Service
OES – Office of Emergency Services
PIO – Public Information Officer
SEMS – Standardized Emergency Management System
TRA – Temporary Refuge Area
WRRF – Water Resource Recovery Facility
REFERENCED AND SUPPORTING RESOURCES

1. Storm of January 9‐10, 2023 Hydrologic Brief for Executive and Engineering Staff – County of San Luis Obispo Public Works Development Services

2. San Luis Obispo County Public Works Department Water Resources Division

3. City Staff After Action Storm Survey Results

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: August 15, 2023
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6B - APPROVING THE SALE OF LEASE REVENUE BONDS, SERIES 2023 (CULTURAL ARTS DISTRICT PARKING PROJECT) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $50,000,000,

EXECUTION OF BOND DOCUMENTS AND RELATED ACTIONS
After finalizing the Council Agenda Report for this item, staff received formal notification that S&P Global Ratings had assigned a rating of ‘AA’ for the 2023 Series Lease Revenue Bonds for the Cultural Arts Parking Project. As a part of this report, S&P Global Ratings also affirmed its ‘AA+’ issue credit rating on the City and its ‘AA’ long-term rating on the City’s lease revenue bonds outstanding. S&P Global Ratings’ report notes that the outlook for the ratings is stable. A ‘AA’ rating indicates a very strong capacity to meet financial commitments. The report from S&P is attached to this correspondence and provides the rationale supporting the rating.

In addition, staff noted an error in the Council Agenda Report after it was published. The Agenda Report notes that the underwriter’s discount will not exceed 4% of the par amount of the bonds (shown below). The 4% should be revised to 0.4%.

ATTACHMENT
S&P Global Ratings Report

Summary:

San Luis Obispo Public Finance
Authority
San Luis Obispo, California;
Appropriations; General Obligation
Primary Credit Analyst:

Amahad K Brown, Dallas + 1 (214) 765 5876; [email protected] Secondary Contact:

Alyssa B Farrell, Englewood + 1 (303) 721 4184; [email protected] Table Of Contents
Credit Highlights
Outlook
Related Research
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 11, 2023 1

Summary:

San Luis Obispo Public Finance Authority
San Luis Obispo, California; Appropriations;
General Obligation
Credit Profile
US$46.025 mil lse rev bnds (San Luis Obispo) (Cultural Arts Parking Project) ser 2023 due 12/01/2053 Long Term Rating AA/Stable New
Credit Highlights
• S&P Global Ratings assigned its 'AA' rating to San Luis Obispo (SLO), Calif.'s proposed $46 million series 2023 lease revenue bonds, issued by the San Luis Obispo Public Finance Authority. • S&P Global Ratings also affirmed its 'AA+' issuer credit rating (ICR) on the city and its 'AA' long-term rating on the city's lease revenue bonds outstanding.
• The outlook is stable
Security
The lease revenue bonds are secured by lease payments made by the city, as lessee, to the authority, as lessor, for the use of the leased assets. In our view, the lease features and terms are standard for an abatement lease, and the leased asset meets our minimum threshold for seismic risk during the life of the bonds. Late budget adoption risk is mitigated by debt service due dates that fall well within the fiscal year (June and December). We rate these obligations one notch lower than our view of the city's general creditworthiness to account for the risk of nonappropriation associated with the lease payments. Although revenues are not specifically pledged to the bonds, we understand that the city will use revenues from its parking fund to finance the debt service payments on the series 2023 bonds, reducing general fund exposure to the new debt.

Proceeds from the series 2023 bonds will be used to finance the construction of a new parking structure in SLO's cultural arts district. In addition, a portion of the proceeds will be used to refund the city's series 2012 lease revenue bonds for debt service savings.

The ICR reflects our view of the city's general creditworthiness and does not incorporate the features of any particular debt instrument.

Credit overview
The city remains well positioned financially, with a local economy that has continued to expand post-pandemic. SLO's credit fundamentals are supported by a strong and institutionalized framework of financial management including regular budget monitoring and long-term planning. In recognition of the city's need for additional resources to support long-term fiscal stability and infrastructure maintenance, voters in the city approved the Measure G-20 sales tax (no WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 11, 2023 2

sunset), which increased the local sales tax rate by 1% and replaced the 2014 local sales tax measure. The Measure G-20 sales tax has contributed about $20 million of additional annual revenue to the city. This level of local support has been key to allowing SLO to fund local priorities without affecting the general fund budget or requiring significant debt financing.

Despite these credit strengths, we believe that the city's exposure to large retirement liabilities remains its most salient credit weakness. As of the latest measurement date (June 30, 2021), the city reported a total California Public Employees' Retirement System (CalPERS) pension liability of about $145 million with a funded ratio of 70%. However, we understand that SLO continues to evaluate improvements to its pension funding through various means, including making additional discretionary payments to its CalPERS plans, most recently in 2022 when it made an additional $12 million discretionary payment. The city's commitment to addressing its long-term retirement obligations is now guided by a formal policy introduced with the 2023-2025 financial plan. Without material and sustained improvements in plan funding, SLO remains exposed to potential cost escalations and higher fixed costs associated with its CalPERS liabilities. However, we do not expect these liabilities to meaningfully affect budgetary performance in the near term, particularly given increasing primary revenues.

The rating reflects our view of the city's:
• Stable local economy that is anchored by government employment, tourism, and a higher education presence that includes California Polytechnic State University;
• Strong financial profile characterized by a track record of positive operating results, maintenance of robust reserves, and a revenue profile that is largely supported by local taxes including sales, property, and transient occupancy taxes;
• Comprehensive collection of financial policies and practices including a robust budget development framework, quarterly budget and investment monitoring, long-term capital and financial planning, formalized policies for debt and investments, and formal reserve policies requiring balances of at least 20% of expenditures for the general fund contingency and the capital reserve tied to the Measure G-20 sales tax; • Strong institutional framework score; and
• Modest debt burden but exposure to elevated fixed costs and large long-term pension liabilities.

Environmental, social, and governance
We analyzed the city's environmental, social, and governance (ESG) risks relative to its economy, management, financial measures, and debt-and-liability profile. In our view, SLO is exposed to acute physical risks including flooding, wildfires, and earthquakes. Of note, it experienced two widespread flooding events in early 2023 that caused an estimated $9 million-$12 million in damages that the city considers to be a high priority, including expenditures associated with road repairs and debris removal. However, given its strong reserve and liquidity position, SLO has been able to absorb these one-time costs without materially affecting its financial position while it files for potential reimbursement from Federal Emergency Management Agency. In our view, social and governance risks are neutral within our credit analysis.

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 11, 2023 3 Summary: San Luis Obispo Public Finance Authority San Luis Obispo, California; Appropriations; General Obligation

Outlook
The stable outlook reflects our expectation that SLO will be able to maintain its strong financial profile supported by positive momentum in the local economy and a robust framework of financial planning and budget monitoring.

Downside scenario
We could lower the rating if the city enters a period of sustained budgetary weakness leading to an erosion of general fund reserves without a credible plan to restore them.

Upside scenario
We could raise the rating if SLO is able to demonstrate meaningful steps to sustainably improve the funding of its pension plans, thereby mitigating budgetary exposure and cost escalations tied to its CalPERS pension plans.

San Luis Obispo, California -- key credit metrics
Most recent Historical information
2022 2021 2020
Very strong economy
Projected per capita EBI % of U.S. 114 111 110 106
Market value per capita ($) 246,617 234,921 221,051 203,609 Population 46,069 46,365 46,762
County unemployment rate(%) 3.0 5.3 7.8
Market value ($000) 11,361,385 10,822,584 10,249,056 9,521,174 Ten largest taxpayers % of taxable value 5.3 6.3 6.1 6.7 Strong budgetary performance
Operating fund result % of expenditures 4.2 16.5 2.6
Total governmental fund result % of expenditures 21.6 23.0 11.7 Very strong budgetary flexibility
Available reserves % of operating expenditures 38.9 44.5 44.2 Total available reserves ($000) 33,113 35,821 33,651
Very strong liquidity
Total government cash % of governmental fund expenditures 210 186 180 Total government cash % of governmental fund debt service 9145 6685 5595 Very strong management
Financial Management Assessment Strong
Adequate debt & long-term liabilities
Debt service % of governmental fund expenditures 2.3 2.8 3.2 Net direct debt % of governmental fund revenue 55 16 19 23 Overall net debt % of market value 1.7
Direct debt 10-year amortization (%) 35
Required pension contribution % of governmental fund expenditures 16.7 18.1 18.4 OPEB actual contribution % of governmental fund expenditures 1.3 1.1 2.0 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 11, 2023 4 Summary: San Luis Obispo Public Finance Authority San Luis Obispo, California; Appropriations; General Obligation

San Luis Obispo, California -- key credit metrics (cont.) Most recent Historical information
2022 2021 2020
Strong institutional framework
EBI--Effective buying income. OPEB--Other postemployment benefits. Data points and ratios may reflect analytical adjustments.

Related Research
Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March 2, 2022
Ratings Detail (As Of August 11, 2023)
San Luis Obispo ICR due 12/01/2055
Long Term Rating AA+/Stable Affirmed
San Luis Obispo
Long Term Rating AA/Stable Affirmed
San Luis Obispo Public Finance Authority, California
San Luis Obispo, California
San Luis Obispo Pub Fin Auth APPROP
Long Term Rating AA/Stable Affirmed
San Luis Obispo Pub Fin Auth (San Luis Obispo)
Long Term Rating AA/Stable Affirmed
Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 11, 2023 5 Summary: San Luis Obispo Public Finance Authority San Luis Obispo, California; Appropriations; General Obligation

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Item 6b
Department: Finance
Cost Center: 2001
For Agenda of: 8/15/2023
Placement: Public Hearing
Estimated Time: 30 minutes
FROM: Emily Jackson, Finance Director
Prepared By: PFM Financial Advisors LLC and Emily Jackson, Finance Director

CITY COUNCIL & PUBLIC FINANCING AUTHORITY BOARD OF DIRECTORS SUBJECT: APPROVING THE SALE OF LEASE REVENUE BONDS, SERIES 2023 (CULTURAL ARTS DISTRICT PARKING PROJECT) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $50,000,000, EXECUTION OF

BOND DOCUMENTS AND RELATED ACTIONS

RECOMMENDATION
City Council Action:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo authorizing the execution and delivery by the City of a 1) Ground Lease, 2) a Lease Agreement, 3) an Indenture, 4) a Bond Purchase Agreement and a 5) Continuing Disclosure Certificate in connection with the issuance of San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project), Series 2023, approving the issuance of such bonds in an aggregate principal amount of not to exceed $50,000,000, authorizing the distribution of an Official Statement in connection with the offering and sale of such bonds and authorizing the execution of necessary documents and certificates and related actions.”
San Luis Obispo Public Financing Authority Board of Directors Action:

Adopt a Draft Resolution entitled, “A Resolution of the Board of Directors of the San Luis Obispo Public Financing Authority authorizing the execution and delivery of a 1) Ground Lease, 2) a Lease Agreement, 3) an Indenture, and a 4) Bond Purchase Agreement in connection with the issuance of San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project), Series 2023, authorizing the issuance of such bonds in an aggregate principal amount of not to exceed $50,000,000, authorizing the distribution of an Official Statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions.”

REPORT-IN-BRIEF
The City has been planning for construction of a fourth parking structure in the downtown area for the last twenty years. The Cultural Arts District Parking Structure (CADPS) will be located at the corner of Palm, Nipomo and Monterey streets and will anchor and support future development of the Cultural Arts District in the downtown. The City plans to issue bonds to finance costs of the acquisition, design, engineering, fabrication, construction, improvement and installation of the new structure.

Item 6b
In late July, the City received construction bids, with the low bid coming in at $41.1 million dollars, approximately $3.5 million below the engineer’s estimate. In addition to financing construction of the CADPS, staff is also recommending a potential refinancing of the Series 2012 bonds in order to generate positive net present value savings and release the Damon Garcia Sports Fields which is the leased asset that currently secures those bonds.

POLICY CONTEXT
The recommended action is consistent with the City’s Capital Financing and Debt Management policy which requires that the City’s debt management practices are “fiscally prudent, consistent with State and Federal law, and reflective of the most opportune financing strategies to deliver on the needs and goals of the community and the City organization.”
In accordance with this policy, the City’s general purpose debt capacity cannot exceed 15% of General Fund revenues, and direct debt will not exceed 2% of assessed valuations, and no more than 60% of capital improvement outlays will be funded from long-term debt. Debt should only be incurred for one-time capital expenditures and not for on-going operations. Borrowing for one-time capital expenditures allows for the cost of the project to be spread over the useful life of the asset and results in the cost being paid by future beneficiaries as well as current taxpayers.

As noted, the City’s debt management policy sets a debt limit of 2% of assessed valuation, which equals $235.4 million for Fiscal Year 2022-23. Including this debt issuance, the City’s General Fund long-term debt will be approximately $67.5 million, or 0.006% of assessed valuation, well below the established debt limit.

DISCUSSION
Background
Since 2003, the City has been planning for a fourth parking structure to fit the current and future needs of the community and downtown. Total future investments in the downtown constitute nearly $250 million. This structure will be sited on Parking Lot 14, which is located at the corner of Palm, Nipomo, and Monterey streets. The structure is known the Cultural Arts District Parking Structure (CADPS) due to its proximity to the History Museum, SLO Museum of Art, and the SLO Children’s Museum, as well as the future site for the SLO Repertory Theater that will abut the structure The Cultural Arts District Parking Structure will be a 163,000 square foot, five-story castin-place concrete structure that will provide the community with 397 new parking spaces, 41 of which will have electric vehicle (EV) charging stations.

Item 6b
Analysis
The proposed transaction (the “2023 Bonds”) will be issued to fund construction of the Cultural Arts District Parking Structure. In addition, it is expected that the 2023 Bonds will fully refund the outstanding San Luis Obispo Capital Improvement Board’s Series 2012 Refunding Lease Revenue Bonds (the “2012 Bonds”), subject to market conditions1. The 2012 Bonds are currently callable.

The 2023 Bonds will be lease revenue bonds issued by the San Luis Obispo Public Financing Authority (the “PFA”). The City will lease to the PFA its existing Marsh Street Parking Structure, located at 871 Marsh Street. The PFA will then lease the property back to the City in exchange for rental payments.

The use of an existing structure as the leased asset for the 2023 Bonds that will fund the construction of the new facility, is referred to as an “asset transfer” and allows the City to avoid borrowing bond interest during the construction period, thus reducing the size of the borrowing. The City’s rental payments to the PFA will be assigned to the trustee of the 2023 Bonds and will be used to make the bond payments. This legal structure is the same as that of the City’s most recent Lease Revenue Bond financing in 2018, and the same as that of the 2012 Bonds, but for the Public Financing Authority serving in the role held by the Capital Improvement Board on the 2012 Bonds.

The Resolution will authorize staff to proceed with the transaction funding the construction of the Cultural Arts District Parking Structure provided certain parameters are met. The par amount will not exceed $50,000,000, the true interest cost will not exceed 5.25%, and the underwriter’s discount will not exceed 4% of the par amount of the bonds. The City received construction bids in late July, with the low bid coming in approximately $3.5 million below the engineer’s estimate. The difference between the engineer’s estimated amount and the construction bid results is approximately $210,000 of annual debt service savings for the City. The table below provides an estimated budget for remaining project costs, provided by Public Works:

Cultural Arts District Parking Structure - Phase 2, Specification No. 90435 ID Estimated Construction Costs
1 Construction Bid* $41,070,044
2 Construction Contingencies (15%) $6,160,507
3 Total Construction Bid + Contingency $47,230,551
4 Estimated Soft Costs
5 Final Design Administration, Permitting, and Construction Support $150,550
6 Construction Management/Inspection/Testing - Phase 2 $3,925,894 7 10% Design and Construction Management
Contingencies $407,644
8 Easements - allowance $50,000

1 Meaning, if the City can realize debt service savings by consolidating the 2012 issuance and further combine pledged leased assets.

Item 6b
9 Phase 1A/1B Construction Contingencies $200,000
10 PG&E/Telecom Phase 2 Facility Relocations $250,000
11 Transactional Costs $480,000
12 Printing & Advertising $25,000
13 Soil Abatement (estimate) $785,565
14 Total Project Estimate $53,505,204
15 Budget
16 Current Available Project Budget $4,923,264
17 Additional Funding on 7/1/2024 (General Fund) $1,500,000 18 Additional Funding on 7/1/2025 (General Fund) $490,000 19 Phase 2 Debt Financing $47,000,000
20 Total Project Budget $53,913,264
21 Total Project Cost $53,505,204
22 Remaining Budget $408,061
In addition, staff is recommending that the refinancing of the Series 2012 bonds be authorized so long as it generates positive net present value savings. The City’s Debt Management Policy states that refinancings for economic savings should meet a minimum threshold of 5% net present value savings, except in certain circumstances.

However, in this instance, the primary benefit of refinancing the 2012 Bonds is not economic savings, but to enable the release of the leased asset that currently secures them, the Damon Garcia Sports Fields. The 2012 Bonds are currently outstanding in the amount of $2,415,000, while the estimated value of the Damon Garcia Sports Fields is in excess of $10 million.

The Resolutions (Attachments A and B) also approve the following transaction documents in substantially final forms2:

1. Ground Lease (Attachment C): Leases the properties from the PFA back to the City.

2. Lease Agreement (Attachment D): Leases certain property from the City to the PFA.

3. Indenture (Attachment E): Provides detailed information on terms, clauses and covenants for purposes of the Trustee’s duties and responsibilities to administer the payment of bonds and management of funds.

4. Bond Purchase Agreement (Attachment F): Details terms of the transaction between the City, PFA, and underwriter.

5. Preliminary Official Statement (Attachment G): Primary disclosure document used to market the 2023 Bonds to investors. The Continuing Disclosure Certificate is included in this document as Appendix E and designates the City’s obligations to disclose financial information to bond investors during the period of lease or financing period.

2 The authorized officers of the City and Financing Authority can finalize documents as long as any changes do not otherwise change the terms or substantially affect the structure of the proposed financing.

Item 6b
The financing team will be composed of several firms. PFM Financial Advisors LLC (PFM) will serve as municipal advisor. Raymond James & Associates, Inc. will serve as underwriter. Orrick, Herrington & Sutcliffe LLP will serve as bond and disclosure counsel.

U.S. Bank Trust Company, National Association is the trustee for the 2012 Bonds and will serve as trustee for the 2023 Bonds. S&P Global Ratings will provide a bond rating, which is expected to be received by August 14th. The City may also engage a financial printer, escrow agent, escrow verification agent, title insurance provider, and other providers as needed in order to process and market the proposed bond sale. Sarah Hollenbeck, the City’s Municipal Advisor from PFM Financial Advisors LLP and Trish Eichar, the Bond Counsel for this issuance form Orrick, Herrington & Sutcliffe LLP will participate remotely in the August 15th presentation.

Next Steps
Upon Council’s approval, staff and the financing team will proceed to execute a bond transaction that meets the parameters defined in the Resolution. The 2023 Bonds are currently expected to be priced the week of August 21st, with closing and delivery of funds the week of September 11th, prior to the award of the construction contract for the Cultural Arts District Parking Structure on September 19th. Details of pricing and the final par amount for each tranche (i.e., term of bonds, 0-10, 10-20, 20-30 years) shall be reported at the September 19th meeting.

As noted above, in addition to providing funding for the construction of the Cultural Arts District Parking Structure, the refunding portion of the 2023 Bonds will enable the City to unencumber the leased assets that are currently pledged to the 2012 Bonds. In particular, the refinancing will enable the City to release the Damon Garcia Sports Fields from the pledge associated with the 2012 Bonds, thus providing the City greater flexibility for future financings related to its long-term capital plans.

Previous Council or Advisory Body Action
The Cultural Arts District Parking Structure project has been included in the City’s Capital Improvement Plan for several years, and Council has previously appropriated funding to this project, with adoption of both the 2021-23 and 2023-25 Financial Plans.

Public Engagement
Representatives from Downtown SLO, San Luis Obispo Museum of Art, and San Luis Obispo Repertory Theatre have been invited to participate in the City’s Parking Operations Steering Committee meetings for the last several months. In compliance with Government Code Section 6586.5, a legal notice was published in the New Times five (5) days prior to the public hearing. Members of the general public will have the opportunity to provide comment on this item before or during the City Council meeting on August 15th.

CONCURRENCE
The Public Works Department is the lead on the construction of the Cultural Arts District Parking Structure and concurs with the recommendations outlined in this item, as the ability to obtain debt financing is critical in order to proceed with vertical construction of the structure.

Item 6b

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: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $ $ $ $
State
Federal
Fees
Other: Lease
Revenue Bond
$50,000,000 $50,000,000 $0 $0
Total $50,000,000* $50,000,000 $0 $0
* Staff is seeking authorization to issue bonds in an aggregate principal amount not to exceed $50,000,000, to include both the financing for the CADPS as well as the refunding of the 2012 Series bonds.

The new money component of the 2023 Bonds is expected to result in annual debt service of $2,860,866. The refunding component is currently expected to result in approximately $28,499 of net present value debt service savings, or 1.18% of refunded par, based on market conditions as of August 2nd.

The table below shows good faith estimates provided by PFM of key statistics related to the 2023 Bonds based on current market conditions, though it is important to note that conditions could change prior to bond pricing.

Value Estimate Notes
Par Amount $47,585,000 Principal amount of bonds issued True Interest Cost 4.37% Measure of overall interest rate Finance Charges
(transaction costs)
$500,743 Underwriter’s discount plus costs of
issuance
Total Proceeds $49,374,254 Price paid for bonds less underwriter’s discount
Total Payments $88,769,052 Total debt service

Item 6b
This table provides a breakdown of the good faith estimated sources and uses for both the CADPS financing as well as the refunding of the 2012 Series bonds:

Sources: CADPS
2012
Refunding Total
Bond Proceeds
Par Amount 45,645,000 1,940,000 47,585,000
Net Premium 1,834,424 125,871 1,960,295
47,479,424 2,065,871 49,545,295
Other Sources
2012 Reserve Fund Release 405,600 405,600
47,479,424 2,471,471 49,950,895
Uses: CADPS
2012
Refunding Total
Project Fund Deposit
Bond Proceeds 47,000,000 47,000,000
Refunding Escrow Deposit
2012 Reserve Fund Release 405,600 405,600
Bond Proceeds 2,044,552 2,044,552
2,450,152 2,450,152
Transaction Costs
Underwriter's Discount 164,068 6,973 171,041
Cost of Issuance 315,356 14,346 329,702
479,424 21,319 500,743
47,479,424 2,471,471 49,950,895

ALTERNATIVES

1. Do not adopt the proposed Resolutions. The City Council could choose not to adopt the proposed resolutions, in which case the bonds will not be issued. In this case, the project will not move forward without the bonded debt that is required to fund construction of the project and the 2012 Bonds will not be refinanced, leaving the Damon Garcia Sports Fields subject to encumbrance.

2. Direct modifications and continue the approval of the proposed Resolutions to a date certain. If additional information is needed, the direction should be provided to staff so that it can be presented on that date.

Item 6b

ATTACHMENTS
A – Draft Resolution of the City Council of the City of San Luis Obispo B – Draft Resolution of the Board of Directors of the San Luis Obispo Public Financing Authority
C – Ground Lease
D – Lease Agreement
E – Indenture
F – Bond Purchase Agreement
G – Preliminary Official Statement (Continuing Disclosure Certificate included in Appendix E)

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RESOLUTION NO. ______ (2023 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING THE EXECUTION AND

DELIVERY BY THE CITY OF A GROUND LEASE, A LEASE

AGREEMENT, AN INDENTURE, A BOND PURCHASE AGREEMENT

AND A CONTINUING DISCLOSURE CERTIFICATE IN CONNECTION

WITH THE ISSUANCE OF SAN LUIS OBISPO PUBLIC FINANCING

AUTHORITY LEASE REVENUE BONDS (CULTURAL ARTS DISTRICT
PARKING PROJECT), SERIES 2023, APPROVING THE ISSUANCE OF

SUCH BONDS IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO
EXCEED $50,000,000, AUTHORIZING THE DISTRIBUTION OF AN

OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND

SALE OF SUCH BONDS AND AUTHORIZING THE EXECUTION OF

NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED

ACTIONS
WHEREAS, the City of San Luis Obispo (the “City”) desires (i) to finance costs of the acquisition, design, engineering, fabrication, construction, improvement and installation of a parking structure in the City’s Cultural Arts District and certain other public capital improvements (the “Project”) and (ii) to refinance and defease its City of San Luis Obispo Capital Improvement Board 2012 Refunding Lease Revenue Bonds (the “2012 Bonds”); and
WHEREAS, the City previously entered into a lease agreement (the “2012 Lease”) with the City of San Luis Obispo Capital Improvement Board (the “Capital Improvement Board”) for the purpose of refinancing certain outstanding obligations of the City; and
WHEREAS, the Capital Improvement Board previously issued 2012 Bonds pursuant to an Indenture of Trust dated as of June 1, 2012, by and between the Capital Improvement Board and U.S. Bank National Association, as trustee, in the aggregate principal amount of $5,050,000 for the purpose of refinancing prior leases and defeasing prior obligations of the City; and
WHEREAS, the San Luis Obispo Public Financing Authority (the “Authority”) desires to assist the City with such financing; and
WHEREAS, in order to finance the Project, the City will lease certain real property, and the improvements thereto (the “Property”), to the Authority pursuant to a Ground Lease (such Ground Lease, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Ground Lease”); and

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WHEREAS, the City will sublease the Property back from the Authority pursuant to a Lease Agreement (such Lease Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Lease Agreement”); and WHEREAS, in order to provide the funds necessary to finance the Project and to refinance and defease the 2012 Bonds, the City and the Authority desire that the Authority issue its San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project), Series 2023 (the “Bonds”), in an aggregate principal amount not to exceed $50,000,000, payable from the base rental payments (the “Base Rental Payments”) to be made by the City pursuant to the Lease Agreement; and
WHEREAS, the Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code (the “Act”); and
WHEREAS, in order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal thereof, premium, if any, and interest thereon, the City, the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee), propose to enter into an Indenture (such Indenture, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Indenture”); and
WHEREAS, all rights to receive the Base Rental Payments will be assigned without recourse by the Authority to the Trustee pursuant to the Indenture; and WHEREAS, Raymond James & Associates, Inc. (the “Underwriter”), has presented a proposal, in the form of a Bond Purchase Agreement by and among the Underwriter, the Authority and the City, to purchase the Bonds from the Authority (such Bond Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Purchase Agreement”); and
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”) requires that, in order to be able to purchase or sell the Bonds, the underwriters thereof must have reasonably determined that the issuer thereof has, or one or more appropriate obligated persons have, undertaken in a written agreement or contract for the benefit of the holders of the Bonds to provide disclosure of certain financial information and certain material events on an ongoing basis; and

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WHEREAS, in order to cause such requirement to be satisfied, the City desires to execute and deliver a Continuing Disclosure Certificate (such Continuing Disclosure Certificate, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Continuing Disclosure Certificate”); and
WHEREAS, a form of the Preliminary Official Statement to be distributed in connection with the public offering of the Bonds has been prepared (such Preliminary Official Statement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Preliminary Official Statement”); and
WHEREAS, the City Council has adopted a Debt Management Policy for the City (the “Debt Management Policy”), as last amended on November 15, 2022, that complies with Government Code Section 8855(i), and the sale and issuance of the Bonds as contemplated by this Resolution is in compliance with the Debt Management Policy; and WHEREAS, Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) (“SB 450”) requires that the City obtain from an underwriter, municipal advisor or private lender and disclose, prior to authorization of the issuance of bonds, including debt instruments such as the Bonds, with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds; and
WHEREAS, in compliance with SB 450, the City has obtained from its Municipal Advisor, the required good faith estimates and such estimates are disclosed at this meeting; and
WHEREAS, the City is a member of the Authority and the Project is to be located within the boundaries of the City; and
WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Ground Lease;
(b) the Lease Agreement;
(c) the Indenture;
(d) the Purchase Agreement;
(e) the Continuing Disclosure Certificate; and
(f) the Preliminary Official Statement;

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WHEREAS, the City desires to authorize the execution of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and issuance of the Bonds; and
WHEREAS, all acts, conditions and things required by the Constitution, laws of the State of California and the City Charter of the City to exist, to have happened and to have been performed precedent to and in connection with the consummation of the transactions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such transactions for the purpose, in the manner and upon the terms herein provided.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo, as follows: and
The foregoing recitals are true and correct, and the City Council of the City (the “City Council”) so finds and determines.

The City Council, on behalf of the City, hereby finds that the use of the Act to assist the City in financing the Project will result in significant public benefits to the citizens of the City because it is expected that such use will provide demonstrable savings in effective interest rate costs.

The form of the Ground Lease, on file with the City Clerk of the City (the “City Clerk”), is hereby approved. Each of the Mayor, the Mayor Pro Tem, the City Manager of the City, the Deputy City Manager, the Finance Director or any officer designated in writing by the City Manager (each, an “Authorized Officer”) is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Ground Lease in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Ground Lease by such Authorized Officer.

The form of the Lease Agreement, on file with the City Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Lease Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Lease Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate principal amount of the Bonds payable from the Base Rental Payments in excess of $50,000,000, shall not result in the term of the Lease Agreement terminating later than December 1, 2053 (provided that such term may be extended as provided therein) and shall not result in a true interest cost attributable to the Base Rental Payments in excess of 5.25%.

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Subject to the provisions of Section 6 hereof, the issuance of the Bonds, in an aggregate principal amount of not to exceed $50,000,000, on the terms and conditions set forth in, and subject to the limitations specified in, the Indenture, be and the same is hereby authorized and approved. The Bonds shall be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to call and redemption, shall be issued in the form and shall be as otherwise provided in the Indenture, as the same shall be completed as provided in this Resolution.

The form of the Indenture, on file with the City Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Indenture in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Indenture by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate principal amount of the Bonds payable from the Base Rental Payments in excess of $50,000,000, shall not result in the term of the Lease Agreement terminating later than December 1, 2053 (provided that such term may be extended as provided therein) and shall not result in a true interest cost attributable to the Base Rental Payments in excess of 5.25%.

The form of the Purchase Agreement, on file with the City Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Purchase Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Purchase Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate underwriters’ discount (not including any original issue discount) from the principal amount of the Bonds in excess of 4.00% of the aggregate principal amount of the Bonds.

The form of the Continuing Disclosure Certificate, on file with the City Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute and deliver the Continuing Disclosure Certificate in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Continuing Disclosure Certificate by such Authorized Officer.

The form of the Preliminary Official Statement, on file with the City Clerk, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved. The Authorized Officers are each hereby authorized to certify on behalf

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of the City that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12).

The preparation and delivery of a final Official Statement (the “Official Statement”), and its use in connection with the offering and sale of the Bonds, be and the same is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the City, to execute the final Official Statement and any amendment or supplement thereto.

With the passage of this Resolution, the City hereby certifies that the City’s Debt Management Policy complies with Government Code Section 8855(i), and that the Bonds authorized to be issued pursuant to this Resolution are consistent with such policy, and instructs Orrick, Herrington & Sutcliffe LLP, as Bond Counsel, on behalf of the City, with respect to the Bonds issued pursuant to this Resolution, (a) to cause notices of the proposed sale and final sale of the Bonds to be filed in a timely manner with the California Debt and Investment Advisory Commission pursuant to Government Code Section 8855, and (b) to check, on behalf of the City, the “Yes” box relating to such certifications in the notice of proposed sale filed pursuant to Government Code Section 8855.

In accordance with SB 450, good faith estimates of the following have been obtained from the Municipal Advisor and have been disclosed at this meeting: (a) the true interest cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds.

The Authorized Officers are hereby authorized to retain, in connection with the transactions contemplated by this Resolution, the firm of PFM Financial Advisors LLC, as Municipal Advisor, the firm of Orrick, Herrington & Sutcliffe LLP, as Bond Counsel and Disclosure Counsel, and to execute professional services agreement with each such firm. Additionally, the selection of U.S. Bank Trust Company, National Association, as trustee, is hereby confirmed.

The City Council hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.

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The Authorized Officers and the officers and employees of the City are, and each of them is, hereby authorized and directed, for and in the name of the City to do any and all things and to execute and deliver any and all certificates, escrow agreements, tax certificates, and other documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution.

All actions heretofore taken by the officers and employees of the City with respect to the issuance and sale of the Bonds, or in connection with or related to any of the agreements or documents referred to herein, are hereby approved, confirmed and ratified.

This Resolution shall take effect immediately upon its adoption.

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

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CITY CLERK’S CERTIFICATE
I, the undersigned, duly appointed and qualified City Clerk of the City of San Luis Obispo (the “City”), certify that attached is a full, true and correct copy of Resolution No. _______, adopted August 15, 2023, during a meeting of the City Council of the City.

Such meeting was duly and legally held at the regular meeting place of the City Council. All of the members of said council had due notice of such meeting and a majority thereof was present at such meeting.

I have carefully compared the same with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of such resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect.

WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.

Dated:

By:

Teresa Purrington, City Clerk

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RESOLUTION NO. _____ (2023 SERIES)

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN LUIS

OBISPO PUBLIC FINANCING AUTHORITY AUTHORIZING THE

EXECUTION AND DELIVERY OF A GROUND LEASE, A LEASE

AGREEMENT, AN INDENTURE, AND A BOND PURCHASE

AGREEMENT IN CONNECTION WITH THE ISSUANCE OF SAN LUIS

OBISPO PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS
(CULTURAL ARTS DISTRICT PARKING PROJECT), SERIES 2023,

AUTHORIZING THE ISSUANCE OF SUCH BONDS IN AN AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED $50,000,000, AUTHORIZING

THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNECTION

THEREWITH AND AUTHORIZING THE EXECUTION OF NECESSARY

DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS
WHEREAS, the San Luis Obispo Public Financing Authority (the “Authority”) has been created pursuant to a Joint Exercise of Powers Agreement, effective September 15, 2014 (the “Joint Powers Agreement”), between the City of San Luis Obispo (the “City”) and the Parking Authority of the City of San Luis Obispo; and WHEREAS, the City desires (i) to finance costs of the acquisition, design, engineering, fabrication, construction, improvement and installation of a parking structure in the City’s Cultural Arts District and certain other public capital improvements (the “Project”) and (ii) to refinance and defease its City of San Luis Obispo Capital Improvement Board 2012 Refunding Lease Revenue Bonds (the “2012 Bonds”); and WHEREAS, the City previously entered into a lease agreement (the “2012 Lease”) with the City of San Luis Obispo Capital Improvement Board (the “Capital Improvement Board”) for the purpose of refinancing certain outstanding obligations of the City; and WHEREAS, the Capital Improvement Board previously issued 2012 Bonds pursuant to an Indenture of Trust dated as of June 1, 2012, by and between the Capital Improvement Board and U.S. Bank National Association, as trustee, in the aggregate principal amount of $5,050,000 for the purpose of refinancing prior leases and defeasing prior obligations of the City; and
WHEREAS, the Authority desires to assist the City with such financing; and WHEREAS, in order to finance the Project, the City will lease certain real property, and the improvements thereto (the “Property”), to the Authority pursuant to a Ground Lease (such Ground Lease, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Ground Lease”); and
WHEREAS, the City will sublease the Property back from the Authority pursuant to a Lease Agreement (such Lease Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Lease Agreement”); and

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WHEREAS, in order to provide the funds necessary to finance the Project and to refinance and defease the 2012 Bonds, the City and the Authority desire that the Authority issue its San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project), Series 2023 (the “Bonds”), in an aggregate principal amount not to exceed $50,000,000, payable from the base rental payments (the “Base Rental Payments”) to be made by the City pursuant to the Lease Agreement; and WHEREAS, on this date, the City held a public hearing on the financing of the Project in accordance with Section 6586.5 of the Act, which hearing was held at 990 Palm Street, San Luis Obispo, California; and
WHEREAS, in accordance with Section 6586.5 of the Act, notice of such hearing was published once at least five days prior to the hearing in the New Times, a newspaper of general circulation in the City; and
WHEREAS, in order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal thereof, premium, if any, and interest thereon, the City, the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), propose to enter into an Indenture (such Indenture, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Indenture”); and
WHEREAS, all rights to receive the Base Rental Payments will be assigned without recourse by the Authority to the Trustee pursuant to the Indenture; and WHEREAS, Raymond James & Associates, Inc. (the “Underwriter”) has presented a proposal, in the form of a Bond Purchase Agreement by and among the Underwriter, the Authority and the City, to purchase the Bonds from the Authority (such Bond Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Purchase Agreement”); and
WHEREAS, a form of the Preliminary Official Statement to be distributed in connection with the public offering of the Bonds has been prepared (such Preliminary Official Statement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Preliminary Official Statement”); and
WHEREAS, the City is a member of the Authority and the Project is to be located within the boundaries of the City; and
WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Ground Lease;
(b) the Lease Agreement;
(c) the Indenture;
(d) the Purchase Agreement; and
(e) the Preliminary Official Statement;

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WHEREAS, the Authority desires to authorize the execution of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and issuance of the Bonds; and
WHEREAS, Section 5852.1 of the California Government Code (the “Government Code”) requires that the Board of Directors of the Authority (“Board of Directors”) obtain from an underwriter, financial advisor or private lender and disclose, in a meeting open to the public, prior to authorization of the issuance of the Bonds, good faith estimates of (a) the true interest cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the Bonds, plus the fees and charges paid to third parties not paid with the proceeds of the Bonds; and WHEREAS, in compliance with Government Code Section 5852.1, the Board of Directors has obtained from PFM Financial Advisors LLC, as the City’s municipal advisor (the “Municipal Advisor”), the required good faith estimates and such estimates have been disclosed at this meeting; and
WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the transactions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the Authority is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such transactions for the purpose, in the manner and upon the terms herein provided.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the San Luis Obispo Public Financing Authority, as follows:

The foregoing recitals are true and correct, and the Board of Directors so finds and determines.

The form of the Ground Lease, on file with the Secretary of the Authority (the “Secretary”), is hereby approved. Each of the Chairperson, the Vice Chairperson, the Executive Director, the Deputy Executive Director, the Treasurer or any officer designated in writing by the Executive Director (each, an “Authorized Officer”) is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Authority, to execute and deliver the Ground Lease in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Ground Lease by such Authorized Officer.

The form of the Lease Agreement, on file with the Secretary, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Authority, to execute and deliver the Lease Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may

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require or approve, such requirement or approval to be conclusively evidenced by the execution of the Lease Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate principal amount of the Bonds payable from the Base Rental Payments in excess of $50,000,000, shall not result in the term of the Lease Agreement terminating later than December 1, 2053 (provided that such term may be extended as provided therein) and shall not result in a true interest cost attributable to the Base Rental Payments exceeding 5.25%.

Subject to the provisions of Section 5 hereof, the issuance of the Bonds, in an aggregate principal amount of not to exceed $50,000,000, on the terms and conditions set forth in, and subject to the limitations specified in, the Indenture, be and the same is hereby authorized and approved. The Bonds shall be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to call and redemption, shall be issued in the form and shall be as otherwise provided in the Indenture, as the same shall be completed as provided in this Resolution.

The form of the Indenture, on file with the Secretary, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Authority, to execute and deliver the Indenture in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Indenture by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate principal amount of Bonds in excess of $50,000,000, shall not result in a final maturity date of the Bonds later than December 1, 2053 and shall not result in a true interest cost for the Bonds in excess of

5.25%.

The form of the Purchase Agreement, on file with the Secretary, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Authority, to execute and deliver the Purchase Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Purchase Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate underwriter’s discount (not including any original issue discount) from the principal amount of the Bonds in excess of 4.00% of the aggregate principal amount of the Bonds.

The form of the Preliminary Official Statement, on file with the Secretary, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved. The Authorized Officers are each hereby authorized to certify on behalf of the Authority that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (except for the omission of certain final pricing, rating and related information as permitted by said Rule).

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The preparation and delivery of a final Official Statement (the “Official Statement”), and its use in connection with the offering and sale of the Bonds, be and the same is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the Authority, to execute the final Official Statement and any amendment or supplement thereto.

The Board of Directors hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.

The officers and agents of the Authority are, and each of them is, hereby authorized and directed, for and in the name of the Authority to do any and all things and to execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution.

All actions heretofore taken by the officers and agents of the Authority with respect to the issuance and sale of the Bonds or in connection with or related to any of the agreements or documents referred to herein, are hereby approved, confirmed and ratified.

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The Secretary shall certify to the adoption of this Resolution and thenceforth and thereafter the same shall be in full force and effect.

This Resolution shall take effect immediately upon its adoption.

Upon motion of San Luis Obispo Public Financing Authority Board Member _________, seconded by Board Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _____________ 2023. _________________________
Chair Erica A. Stewart
ATTEST:

Teresa Purrington, Secretary
APPROVED AS TO FORM:

J. Christine Dietrick, Authority Counsel
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, Secretary

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SECRETARY’S CERTIFICATE
I, the undersigned, duly appointed and qualified Secretary of the San Luis Obispo Public Financing Authority (the “Authority”), certify that attached is a full, true and correct copy of Authority Resolution No. _____, adopted August 15, 2023, during a meeting of the governing board of the Authority.

Such meeting was duly and legally held at the regular meeting place of the Authority. All of the members of said governing board had due notice of such meeting and a majority thereof was present at such meeting.

I have carefully compared the same with the original minutes of said meeting on file and of record in my office, and the foregoing is a full, true and correct copy of such resolution adopted at said meeting and entered in said minutes. Said resolution has not been amended, modified or rescinded since the date of its adoption, and the same is now in full force and effect.

WITNESS MY HAND AND THE SEAL OF THE CITY OF SAN LUIS OBISPO.

Dated:

By: __________________________________
Teresa Purrington, Secretary

OHS 08/03/2023
4157-5237-3830.7

TO BE RECORDED FOR THE BENEFIT OF

THE CITY OF SAN LUIS OBISPO, CALIFORNIA
AND WHEN RECORDED RETURN TO:

Orrick, Herrington & Sutcliffe LLP
777 South Figueroa Street, 32nd Floor
Los Angeles, California 90017
Attention: Laura Gao

THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE.

THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE.

GROUND LEASE
by and between

CITY OF SAN LUIS OBISPO
and

SAN LUIS OBISPO PUBLIC FINANCING AUTHORITY
Dated as of [September 1, 2023]

4157-5237-3830.7

GROUND LEASE
THIS GROUND LEASE (this “Ground Lease”), dated as of [September 1, 2023], is by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city organized and existing under the laws of the State of California (the “City”), as lessor, and the SAN LUIS OBISPO PUBLIC FINANCING AUTHORITY, a joint powers authority organized and existing under the laws of the State of California (the “Authority”), as lessee.

RECITALS
WHEREAS, the Authority is a joint exercise of powers authority duly organized and operating pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California; WHEREAS, Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California authorizes and empowers joint powers authorities to issue bonds to assist local agencies in financing projects and programs consisting of certain public improvements or working capital or liability and other insurance needs whenever a local agency determines that there are significant public benefits from so doing;
WHEREAS, the City desires to finance costs of the acquisition, design, engineering, fabrication, construction, improvement and installation of a parking structure in the City’s Cultural Arts District and certain other public capital improvements (the “Project”); WHEREAS, the City previously entered into a lease agreement (the “2012 Lease”) with the City of San Luis Obispo Capital Improvement Board (the “Capital Improvement Board”) for the purpose of refinancing certain outstanding obligations of the City; WHEREAS, the Capital Improvement Board previously issued its City of San Luis Obispo Capital Improvement Board 2012 Refunding Lease Revenue Bonds (the “2012 Bonds”) pursuant to an Indenture of Trust dated as of June 1, 2012, by and between the Capital Improvement Board and U.S. Bank National Association, as trustee, in the aggregate principal amount of $5,050,000 for the purpose of refinancing prior leases and defeasing prior obligations of the City;
WHEREAS, the City proposes to refinance the 2012 Lease to allow for the defeasance and refunding of the 2012 Bonds;
WHEREAS, the Authority is empowered pursuant to the aforementioned Article 4 to issue its bonds and to apply the proceeds thereof to assist in financing the Project and the refinancing of the 2012 Lease to allow for the defeasance and refunding of the 2012 Bonds; WHEREAS, in order to finance the Project and to refinance and defease the 2012 Bonds, the City is leasing certain real property, and the improvements thereto (the “Property”), to the Authority pursuant to this Ground Lease, dated as of the date hereof, and the City is subleasing the Property back from the Authority pursuant to the Lease Agreement, dated as of the date hereof (the “Lease Agreement”); WHEREAS, the Property is more particularly described in Exhibit A attached hereto; WHEREAS, in order to provide the funds necessary to finance the Project and to refinance and defease the 2012 Bonds, the Authority is issuing $[PAR AMOUNT] aggregate principal amount of its San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project), Series 2023 (the “Bonds”), payable from the base rental payments to be made by the City pursuant to the Lease Agreement; and

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WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Ground Lease do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Ground Lease; NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the parties hereto do hereby agree as follows:

ARTICLE I

DEFINITIONS
Except as otherwise defined herein, or unless the context clearly otherwise requires, capitalized undefined terms used herein shall have the meanings ascribed thereto in the Lease Agreement.

ARTICLE II
LEASE OF THE PROPERTY; RENTAL
Section 2.01. Lease of Property. The City hereby leases to the Authority, and the Authority hereby leases from the City, for the benefit of the Owners of the Bonds, the Property, subject only to Permitted Encumbrances, to have and to hold for the term of this Ground Lease.

Section 2.02. Rental. (a) The Authority shall pay to the City as and for rental of the Property hereunder, the sum of not to exceed $[LEASE PAYMENT] (the “Ground Lease Payment”). The Ground Lease Payment shall be paid from the proceeds of the Bonds; provided, however, that in the event the available proceeds of the Bonds are not sufficient to enable the Authority to pay such amount in full, the remaining amount of the Ground Lease Payment shall be reduced to an amount equal to the amount of such available proceeds.
(b) The City shall deposit the Ground Lease Payment in one or more separate funds or accounts to be held and administered for the purpose of financing the Project. The Authority and the City hereby find and determine that the amount of the Ground Lease Payment does not exceed the fair market value of the leasehold interest in the Property that is conveyed hereunder by the City to the Authority. No other amounts of rental shall be due and payable by the Authority for the use and occupancy of the Property under this Ground Lease.

ARTICLE III

QUIET ENJOYMENT
The parties intend that the Property will be leased back to the City pursuant to the Lease Agreement for the term thereof. Subject to any rights the City may have under the Lease Agreement (in the absence of a Lease Default Event) to possession and enjoyment of the Property, the City hereby covenants and agrees that it will not take any action to prevent the Authority from having quiet and peaceable possession and enjoyment of the Property during the term hereof and will, at the request of the Authority and at the City’s cost, to the extent that it may lawfully do so, join in any legal action in which the Authority asserts its right to such possession and enjoyment.

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ARTICLE IV

SPECIAL COVENANTS AND PROVISIONS
Section 4.01. Waste. At all times that the Authority is in possession of the Property, it shall not commit, suffer or permit any waste on the Property, and shall not willfully or knowingly use or permit the use of the Property for any illegal purpose or act.

Section 4.02. Further Assurances and Corrective Instruments. Each of the City and the Authority shall, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property hereby leased or intended so to be or for carrying out the expressed intention of this Ground Lease, the Indenture and the Lease Agreement.

Section 4.03. Waiver of Personal Liability. (a) All liabilities under this Ground Lease on the part of the Authority shall be solely liabilities of the Authority as a joint powers authority, and the City hereby releases each and every director, officer and employee of the Authority of and from any personal or individual liability under this Ground Lease. No director, officer or employee of the Authority shall at any time or under any circumstances be individually or personally liable under this Ground Lease to the City or to any other party whomsoever for anything done or omitted to be done by the Authority hereunder. (b) All liabilities under this Ground Lease on the part of the City shall be solely liabilities of the City as a city and municipal corporation, and the Authority hereby releases each and every member, officer and employee of the City of and from any personal or individual liability under this Ground Lease.

No member, officer or employee of the City shall at any time or under any circumstances be individually or personally liable under this Ground Lease to the Authority or to any other party whomsoever for anything done or omitted to be done by the City hereunder.

Section 4.04. Taxes. The City shall pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Property.

Section 4.05. Right of Entry. The City reserves the right for any of its duly authorized representatives to enter upon the Property at any reasonable time to inspect the same.

Section 4.06. Representations and Warranties of the City. The City represents and warrants as follows:
(a) the City has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution of this Ground Lease;
(b) except for Permitted Encumbrances, the Property is not subject to any dedication, easement, right of way, reservation in patent, covenant, condition, restriction, lien or encumbrance which would prohibit or materially interfere with the use of the Property for governmental purposes as contemplated by the City; and
(c) all taxes, assessments or impositions of any kind with respect to the Property, except current taxes, have been paid in full.

Section 4.07. Representations and Warranties of the Authority. The Authority represents and warrants that the Authority has the full power and authority to enter into, to execute and to deliver this

4 4157-5237-3830.7
Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution and delivery of this Ground Lease.

ARTICLE V

RESTRICTIONS ON CITY
Except with respect to Permitted Encumbrances, the City shall not mortgage, sell, encumber, assign, transfer or convey the Property or any portion thereof during the term of this Ground Lease.

ARTICLE VI

IMPROVEMENTS
Title to all improvements made on the Property during the term hereof shall vest in the City.

ARTICLE VII
TERM; TERMINATION
Section 7.01. Term. The term of this Ground Lease shall commence as of the date of commencement of the term of the Lease Agreement and shall remain in full force and effect from such date to and including [December 1, 20__], unless such term is extended or sooner terminated as hereinafter provided.

Section 7.02. Extension; Early Termination. If, on [December 1, 20__], the Bonds shall not be fully paid, or provision therefor made in accordance with Article X of the Indenture, or the Indenture shall not be discharged by its terms, or if the Rental Payments payable under the Lease Agreement shall have been abated at any time, then the term of this Ground Lease shall be automatically extended until the date upon which all Bonds shall be fully paid, or provision therefor made in accordance with Article X of the Indenture, and the Indenture shall be discharged by its terms, except that the term of this Ground Lease shall in no event be extended more than ten years. If, prior to [December 1, 20__], all Bonds shall be fully paid, or provisions therefor made in accordance with Article X of the Indenture, and the Indenture shall be discharged by its terms, the term of this Ground Lease shall end simultaneously therewith.

ARTICLE VIII

MISCELLANEOUS
Section 8.01. Binding Effect. This Ground Lease shall inure to the benefit of and shall be binding upon the City, the Authority and their respective successors and assigns.

Section 8.02. Severability. In the event any provision of this Ground Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof.

Section 8.03. Amendments; Substitution and Release. This Ground Lease may be amended, supplemented or otherwise modified only in accordance with the provisions of the Lease Agreement. The City shall have the right to substitute alternate real property for the Property or to release portions of the Property as provided in the Lease Agreement.

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Section 8.04. Assignment. The Authority and City acknowledge that the Authority has assigned and transferred certain of its right, title and interest in and to this Ground Lease to the Trustee pursuant to the Indenture. The City consents to such assignment.

Section 8.05. Section Headings. Headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Ground Lease.

Section 8.06. Governing Laws. This Ground Lease shall be governed by and construed in accordance with the laws of the State of California.

Section 8.07. Execution in Counterparts. This Ground Lease may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

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IN WITNESS WHEREOF, the parties hereto have caused this Ground Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first written above.

CITY OF SAN LUIS OBISPO, as Lessor
By:

Derek Johnson, City Manager

SAN LUIS OBISPO PUBLIC FINANCING
AUTHORITY, as Lessee
By:

Derek Jonson, Treasurer

A-1
4157-5237-3830.7

EXHIBIT A

DESCRIPTION OF THE PROPERTY
All of that real property situated in the City of San Luis Obispo, County of San Luis Obispo, State of California, described as follows, and any improvements thereto:
[TO COME]

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ACKNOWLEDGMENT

STATE OF CALIFORNIA )
) ss

COUNTY OF SAN LUIS OBISPO )
On _____________, 2023, before me, ________________________, Notary Public, personally appeared ________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature [SEAL]

4157-5237-3830.7

STATE OF CALIFORNIA )
) ss

COUNTY OF SAN LUIS OBISPO )
On _____________, 2023, before me, ________________________, Notary Public, personally appeared ________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature [SEAL]

4157-5237-3830.7

CERTIFICATE OF ACCEPTANCE
In accordance with Section 27281 of the California Government Code, this is to certify that the interest in the real property conveyed by the Ground Lease, dated as of [September 1, 2023], by and between the City of San Luis Obispo, a municipal corporation and charter city organized and existing under and by virtue of the laws of the State of California (the “City”), and the San Luis Obispo Public Financing Authority, a joint powers authority organized and existing under the laws of the State of California (the “Authority”), from the City to the Authority, is hereby accepted by the undersigned on behalf of the Authority pursuant to authority conferred by resolution of the Board of Directors of the Authority adopted on August 15, 2023, and the Authority consents to recordation thereof by its duly authorized officer.

Dated: ____________

SAN LUIS OBISPO PUBLIC FINANCING

AUTHORITY
By:

Derek Johnson, Treasurer

OHS DRAFT 08/03/2023
4142-7460-2566.8

LEASE AGREEMENT
by and between

CITY OF SAN LUIS OBISPO
and

SAN LUIS OBISPO PUBLIC FINANCING AUTHORITY
Dated as of [September 1, 2023]

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ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION....................................................................2 Definitions...................................................................................................................2 Rules of Construction..................................................................................................4 ARTICLE II LEASE OF PROPERTY; TERM...........................................................................................5 Lease of Property ........................................................................................................5 Occupancy; Term........................................................................................................5 ARTICLE III RENTAL PAYMENTS ........................................................................................................6 Rental Payments..........................................................................................................6 Base Rental Payments.................................................................................................6 Additional Rental Payments........................................................................................6 Fair Rental Value ........................................................................................................7 Payment Provisions.....................................................................................................7 Appropriations Covenant ............................................................................................7 Rental Abatement........................................................................................................7 Prepayment..................................................................................................................8 ARTICLE IV QUIET ENJOYMENT; MAINTENANCE; ALTERATIONS; LIENS ...............................8 Quiet Enjoyment .........................................................................................................8 Net-Net-Net Lease.......................................................................................................8 Right of Entry..............................................................................................................8 Maintenance and Utilities............................................................................................9 Additions to Property ..................................................................................................9 Installation of City’s Equipment .................................................................................9 Mechanics’, Etc. Liens................................................................................................9 Other Liens..................................................................................................................9 ARTICLE V INSURANCE; NET PROCEEDS; EMINENT DOMAIN ..................................................10 Public Liability and Property Damage Insurance; Workers’ Compensation Insurance ...................................................................................................................10 Title Insurance...........................................................................................................11 Additional Insurance Provision; Form of Policies ....................................................11 Self-Insurance............................................................................................................11 Damage or Destruction..............................................................................................11

TABLE OF CONTENTS
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Net Proceeds of Title Insurance ................................................................................12 Eminent Domain .......................................................................................................13 ARTICLE VI REPRESENTATIONS; COVENANTS .............................................................................13 Representations of the City .......................................................................................13 Representation of the Authority ................................................................................13 Recordation ...............................................................................................................13 Use of the Property....................................................................................................13 Other Liens................................................................................................................13 Taxes.........................................................................................................................14 No Liability; Indemnification....................................................................................14 Further Assurances....................................................................................................15 ARTICLE VII LEASE DEFAULT EVENTS AND REMEDIES.............................................................15 Lease Default Events and Remedies.........................................................................15 Waiver.......................................................................................................................17 ARTICLE VIII AMENDMENTS; ASSIGNMENT AND SUBLEASING; SUBSTITUTION OR RELEASE .................................................................................................................18 Amendments..............................................................................................................18 Assignment and Subleasing.......................................................................................19 Substitution or Release of the Property.....................................................................19 ARTICLE IX MISCELLANEOUS ...........................................................................................................20 Assignment to Trustee...............................................................................................20 Validity and Severability...........................................................................................20 Notices.......................................................................................................................20 Section Headings.......................................................................................................21 Governing Laws........................................................................................................21 Electronic Signature ..................................................................................................21 Execution in Counterparts.........................................................................................21 Exhibit A DESCRIPTION OF THE PROPERTY...................................................................................A-1 Exhibit B DESCRIPTION OF THE PROJECT ......................................................................................B-1

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LEASE AGREEMENT
THIS LEASE AGREEMENT (this “Lease Agreement”), dated as of [September 1, 2023], is by and between the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city organized and existing under the laws of the State of California (the “City”), as lessee, and the SAN LUIS OBISPO PUBLIC FINANCING AUTHORITY, a joint powers authority organized and existing under the laws of the State of California (the “Authority”), as lessor.

RECITALS
WHEREAS, the Authority is a joint exercise of powers authority duly organized and operating pursuant to Article 1 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California; WHEREAS, Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California authorizes and empowers joint powers authorities to issue bonds to assist local agencies in financing projects and programs consisting of certain public improvements or working capital or liability and other insurance needs whenever a local agency determines that there are significant public benefits from so doing;
WHEREAS, the City desires to finance costs of the acquisition, design, engineering, fabrication, construction, improvement and installation of a parking structure in the City’s Cultural Arts District and certain other public capital improvements (the “Project”); WHEREAS, the City previously entered into a lease agreement (the “2012 Lease”) with the City of San Luis Obispo Capital Improvement Board (the “Capital Improvement Board”) for the purpose of refinancing certain outstanding obligations of the City; WHEREAS, the Capital Improvement Board previously issued its City of San Luis Obispo Capital Improvement Board 2012 Refunding Lease Revenue Bonds (the “2012 Bonds”) pursuant to an Indenture of Trust dated as of June 1, 2012, by and between the Capital Improvement Board and U.S. Bank National Association, as trustee, in the aggregate principal amount of $5,050,000 for the purpose of refinancing prior leases and defeasing prior obligations of the City;
WHEREAS, the City proposes to refinance the 2012 Lease to allow for the defeasance and refunding of the 2012 Bonds;
WHEREAS, the Authority is empowered pursuant to the aforementioned Article 4 to issue its bonds and to apply the proceeds thereof to assist in financing the Project and the refinancing of the 2012 Lease to allow for the defeasance and refunding of the 2012 Bonds; WHEREAS, in order to finance the Project and to refinance and defease the 2012 Bonds, the City is leasing certain real property, and the improvements thereto (the “Property”), to the Authority pursuant to a Ground Lease, dated as of the date hereof, and the City is subleasing the Property back from the Authority pursuant to this Lease Agreement;
WHEREAS, the Property is more particularly described in Exhibit A attached hereto; WHEREAS, in order to provide the funds necessary to finance the Project and to refinance and defease the 2012 Bonds, the Authority is issuing $[PAR AMOUNT] aggregate principal amount of its San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project),

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Series 2023 (the “Bonds”), payable from the base rental payments to be made by the City pursuant to this Lease Agreement; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Lease Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Lease Agreement; NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the parties hereto do hereby agree as follows:

ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Definitions. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Lease Agreement, have the meanings herein specified, which meanings shall be equally applicable to both the singular and plural forms of any of the terms herein defined.

Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Indenture. “Additional Rental Payments” means all amounts payable by the City as Additional Rental Payments pursuant to Section 3.03 hereof.
“Authority” means the San Luis Obispo Public Financing Authority, a joint powers authority organized and existing under the laws of the State, and any successor thereto. “Authorized Representative” means (a) with respect to the Authority, the Chairperson, the Vice Chairperson, the Executive Director, the Deputy Executive Director and the Treasurer of the Authority, and any other Person designated as an Authorized Representative of the Authority in a Written Certificate of the Authority filed with the Trustee, and (b) with respect to the City, the Mayor, the Mayor Pro Tem, the City Manager, the Deputy City Manager, the Treasurer, and the Finance Director of the City, and any other Person designated as an Authorized Representative of the City in a Written Certificate of the City filed with the Trustee.
“Base Rental Deposit Date” has the meaning given to such term in Section 3.02 hereof. “Base Rental Payments” means all amounts payable to the Authority from the City as Base Rental Payments pursuant to Section 3.02 hereof.
“Bonds” means the San Luis Obispo Public Financing Authority Lease Revenue Bonds (Cultural Arts District Parking Project), Series 2023.
“City” means the City of San Luis Obispo, a municipal corporation and charter city organized and existing under the laws of the State, and any successor thereto. “Code” means the Internal Revenue Code of 1986.
“Closing Date” means [CLOSING DATE].
“Fair Rental Value” means, with respect to the Property, the annual fair rental value thereof.

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“Fiscal Year” means the period beginning on July 1 of each year and ending on the next succeeding June 30, or any other twelve-month period hereafter selected and designated as the official fiscal year period of the City.
“Ground Lease” means the Ground Lease, dated as of [September 1, 2023], by and between the City and the Authority, as originally executed and as it may from time to time be amended in accordance with the provisions thereof and hereof.
“Indenture” means the Indenture, dated as of [September 1, 2023], by and among the Authority, the City and U.S. Bank Trust Company, National Association, as Trustee, as originally executed and as it may be amended or supplemented from time to time in accordance with the provisions thereof. “Interest Payment Dates” means June 1 and December 1 of each year, commencing December 1, 2023.
“Lease Agreement” means this Lease Agreement, dated as of [September 1, 2023], by and between the City and the Authority, as the same may be amended or supplemented pursuant to the provisions hereof.
“Lease Default Event” means any event or circumstance specified in Section 7.01 hereof as a Lease Default Event.
“Net Proceeds” means any insurance proceeds or condemnation award in excess of $50,000, paid with respect to any of the Property, remaining after payment therefrom of all reasonable expenses incurred in the collection thereof.
“Opinion of Bond Counsel” means a written opinion of counsel of recognized national standing in the field of law relating to municipal bonds, appointed and paid by the Authority and satisfactory to and approved by the Trustee.
“Outstanding” has the meaning ascribed to such term in the Indenture. “Permitted Encumbrances” means with respect to the Property, as of any particular time (a) liens for general ad valorem taxes and assessments, if any, not then delinquent, or that the City may, pursuant to provisions of Section 6.06 hereof, permit to remain unpaid, (b) this Lease Agreement, (c) the Ground Lease, (d) any right or claim of any mechanic, laborer, materialman, supplier or vendor not filed or perfected in the manner prescribed by law as normally exist with respect to properties similar to the Property for the purposes for which it was acquired or is held by the City, (e) easements, rights of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions that exist of record as of the Closing Date, (f) any license with respect to the use of, or lease agreement for, the solar equipment and footprint thereof as may be entered into by the City in support of a loan by the State of California Energy Commission that the City certifies in writing does not affect the intended use of the Property or impair the security granted to the Trustee for the benefit of the Owners of the Bonds by the Indenture; and (g) easements, rights of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions established following the Closing Date that the City certifies in writing do not affect the intended use of the Property or impair the security granted to the Trustee for the benefit of the Owners of the Bonds by the Indenture.
“Project” means costs of the acquisition, design, engineering, fabrication, construction, improvement and installation of a parking structure in the City’s Cultural Arts District [and certain other

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public capital improvements], as described in Exhibit B hereto, all or a portion of the costs of which are to be financed with proceeds of the Bonds.
“Property” means the real property described in Exhibit A hereto and any improvements thereto. “Rental Payments” means, collectively, the Base Rental Payments and the Additional Rental Payments.
“Rental Period” means the period from the Closing Date through [December 31, 2024] and, thereafter, the twelve-month period commencing on [January 1] of each year during the term of the Lease Agreement.
“Scheduled Termination Date” means [December 1, 20__].
“State” means the State of California.
“Trustee” means U.S. Bank Trust Company, National Association, as trustee under the Indenture, or any successor thereto as trustee thereunder substituted in its place as provided therein. “Written Certificate” and “Written Request” of the City mean, respectively, a written certificate or written request signed in the name of the City by an Authorized Representative of the City. Any such certificate or request may, but need not, be combined in a single instrument with any other instrument, opinion or representation, and the two or more so combined shall be read and construed as a single instrument.

Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document. (d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Lease Agreement. (h) The words “hereof” (except when preceded by a specific Section or Article reference) “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases

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used herein refer to this Indenture and not solely to the particular portion hereof in which any such word is used.

ARTICLE II
LEASE OF PROPERTY; TERM
Lease of Property. (a) The Authority hereby leases to the City and the City hereby leases from the Authority the Property, on the terms and conditions hereinafter set forth, and subject to all Permitted Encumbrances.
(b) The parties intend and agree that the leasing of the Property by the City to the Authority under the Ground Lease does not affect or result in a merger of the City’s leasehold estate in the Property as lessee under this Lease Agreement and its leasehold or fee estate, as applicable, in the Property as lessor under the Ground Lease, and the Authority will continue to have a leasehold estate in the Property under the Ground Lease throughout the terms of both leases. This Lease Agreement constitutes a sublease with respect to the Property. The leasehold interest in the Property granted by the City to the Authority pursuant to the Ground Lease is independent of this Lease Agreement and this Lease Agreement is not an assignment or surrender of the leasehold interest in the Property granted to the Authority under the Ground Lease.

Occupancy; Term. (a) The City shall take possession of the Property on the Closing Date.
(b) The term of this Lease Agreement shall commence on the Closing Date and shall end on the Scheduled Termination Date, unless such term is extended or sooner terminated as hereinafter provided. (c) If all of the Property shall be taken under the power of eminent domain, and the City does not elect to cause alternate real property to be substituted for all or a portion of the Property pursuant to, and in accordance with the provisions of, Section 8.03 hereof, as provided in clause (i) of Section 5.07(c) hereof but, rather, elects to deliver or cause to be delivered any award made in eminent domain proceedings for such taking to the Trustee for the application to the redemption, pursuant to Section 4.01 of the Indenture, of all or a portion of the Outstanding Bonds, as provided in clause (ii) of Section 5.07(c) hereof, then, on the date that possession thereof shall be so taken, the term of this Lease Agreement shall terminate. (d) If, prior to the Scheduled Termination Date, all Bonds shall be fully paid, or deemed paid in accordance with Article X of the Indenture, then, on the date of such payment or deemed payment, the term of this Lease Agreement shall terminate.
(e) If on the Scheduled Termination Date, the Rental Payments payable hereunder shall have been abated at any time and for any reason, then the term of this Lease Agreement shall be extended until the date upon which all such Rental Payments shall have been paid in full, except that the term of this Lease Agreement shall in no event be extended more than ten years beyond the Scheduled Termination Date. (f) Upon the termination of the term of this Lease Agreement (other than as provided in Section 7.01 hereof), and the first date upon which the Bonds are no longer Outstanding, all right, title and interest in and to the Property shall vest in the City. Upon any such termination or expiration, the Authority and the Trustee shall execute such conveyances, deeds and other documents as may be necessary to effect such vesting of record.

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ARTICLE III

RENTAL PAYMENTS
Rental Payments. (a) Rental Payments, consisting of Base Rental Payments and Additional Rental Payments, shall be paid by the City to the Authority for and in consideration of the right to use and occupy the Property and in consideration of the continued right to the quiet use and enjoyment thereof during each Rental Period for which such Rental Payments are to be paid. (b) The obligation of the City to make the Rental Payments, including the Base Rental Payments, does not constitute a debt of the City or of the State or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State is obligated to levy or pledge any form of taxation or for which the City or the State has levied or pledged any form of taxation.
(c) If the term of this Lease Agreement shall have been extended pursuant to Section 2.02 hereof, the obligation of the City to pay Rental Payments shall continue to and including the Base Rental Deposit Date preceding the date of termination of this Lease Agreement, as so extended.

Base Rental Payments. (a) The City, subject to the provisions of Section 3.07 hereof, shall pay Base Rental Payments to the Authority. The Base Rental Payments shall be due and payable no later than the fifth Business Day next preceding each Interest Payment Date (the “Base Rental Deposit Date”) on which such Base Rental Payment is due in an amount equal to the principal, if any, of and interest on the Bonds due and payable on such Interest Payment Date, including principal due and payable by reason of mandatory sinking fund redemption of the Bonds. (b) If the term of this Lease Agreement shall have been extended pursuant to Section 2.02 hereof, the Base Rental Payments shall be established so that the Base Rental Payment payable on each Base Rental Deposit Date after the Scheduled Termination Date shall be equal to the principal, if any, of and interest on the Bonds remaining due and payable on such Base Rental Deposit Date; provided, however, that the Rental Payments payable in any Rental Period shall not exceed the annual fair rental value of the Property.

Additional Rental Payments. (a) The City shall also pay, as Additional Rental Payments, such amounts as shall be required for the payment of the following:
(i) all taxes and assessments of any type or nature charged to the Authority or the City or affecting the Property or the respective interests or estates of the Authority or the City therein; (ii) insurance premiums for all insurance required pursuant to Article V hereof; and (iii) all other payments not constituting Base Rental Payments required to be paid by the City pursuant to the provisions of this Lease Agreement. (b) Amounts constituting Additional Rental Payments payable hereunder shall be paid by the City directly to the person or persons to whom such amounts shall be payable. The City shall pay all such amounts when due or at such later time as such amounts may be paid without penalty or, in any other case, within 60 days after notice in writing from the Trustee to the City stating the amount of Additional Rental Payments then due and payable and the purpose thereof.