San Luis Obispo City Council
November 14, 2023

City Council
AGENDA

Tuesday, November 14, 2023, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo

RESCHEDULED REGULAR MEETING OF THE CITY COUNCIL
HYBRID MEETING PARTICIPATION INSTRUCTIONS:

Council Meetings are held in a hybrid format, which means participation is allowed both in-person and virtually through teleconference. Below are instructions to participate via Zoom or by telephone. For a complete list of ways to view/participate in meetings, review the Participation Guide. Contact the City Clerk's Office with questions by emailing [email protected] or call (805) 781-7114.

REGULAR MEETING BEGINS AT 5:30 PM
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Pages

1. CALL TO ORDER
Mayor Erica A. Stewart will call the rescheduled Regular Meeting of the San Luis Obispo City Council to order. The regularly scheduled meeting on November 21st was rescheduled to November 14th due to the Thanksgiving holiday; this action was approved by Council during their annual review of the meeting schedule on December 13, 2022.

2. PLEDGE OF ALLEGIANCE
Mayor Erica A. Stewart will lead the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a INTRODUCTIONS - POLICY & PROJECT MANAGER AND

INFORMATION SYSTEMS MANAGER
Deputy City Manager Greg Hermann will introduce Natalie Harnett, the new Policy & Projects Manager for the Administration Department, and Josh Erquiaga, the new IT Manager.

3.b SAN LUIS OBISPO ROTARY CLUB CENTENNIAL PROCLAMATION Mayor Stewart will present a proclamation recognizing the San Luis Obispo Rotary Club for 100 years of service.

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

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

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

Recommendation:

To approve Consent Calendar Items 5a to 5g.

5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

5.b APPROVE A 5-YEAR USE AGREEMENT WITH SAN LUIS BASEBALL

ALLIANCE (SLO BLUES) FOR USE OF THE BASEBALL STADIUM AT

SINSHEIMER PARK
9 Recommendation:

Authorize the Mayor to execute a Use Agreement with the San Luis Obispo Baseball Alliance, LLC (SLO Blues) for the San Luis Obispo Baseball Stadium at Sinsheimer Park for 2023 to 2028.

5.c APPROVE THE SCHEDULE OF CITY COUNCIL MEETINGS FOR
2024
27 Recommendation:

Adopt the proposed 2024 Regular City Council Meeting Schedule with meetings normally held on the first and third Tuesday of every month, with the following exceptions:

Reschedule the Regular City Council meeting of January 3 to January 9, 2024; and

1. Reschedule the Regular City Council meeting of January 16 to January 23, 2024; and

2. Cancel the Regular City Council meetings of August 6, and December 17, 2024; and

3. Reschedule the Regular City Council meeting of November 5 to November 12, 2024.

4. 5.d AUTHORIZE AN UPDATED AGREEMENT BETWEEN THE CITY OF

SAN LUIS OBISPO AND SESLOC CREDIT UNION FOR PARKING

LOT USE DURING EVENTS AT DAMON-GARCIA SPORTS

COMPLEX
33 Recommendation:

Authorize the City Manager to enter into an updated agreement between City of San Luis Obispo and SESLOC Federal Credit Union (SESLOC) for the use of its parking lot as overflow parking for events held at the Damon-Garcia Sports Complex.

5.e AUTHORIZE THE FIRE DEPARTMENT TO APPLY FOR PUBLIC

SAFETY GRANTS
69 Recommendation:

Authorize the Fire Department to apply to the 2023 Ready, Set, Go! Program’s Fuels Reduction Project Grant Funding for a grant to conduct fuel reduction work along the Islay Creek; and

1. Authorize the Fire Department to apply to the San Luis Obispo County Off-Highway Vehicle Grant Program to replace UTV-2;

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.

3. 5.f VICE MAYOR APPOINTMENT FOR 2024 73
Recommendation:

Appoint Council Member Andy Pease to serve as Vice Mayor for a oneyear term commencing on December 1, 2023.

5.g COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2024 77 Recommendation:

Approve the Council Liaison Subcommittee assignments for the 2024 calendar year.

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a FISCAL YEAR 2023-24 1ST QUARTER BUDGET REVIEW (Estimated Time: 20 minutes)
83 Recommendation:

Receive and file the Fiscal Year 2023-24 First Quarter Budget report; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the Fiscal Year 2023-24 Budget” to appropriate $150,000 of the General Fund Assigned Fund Balance for
economic development efforts.

2. 6.b APPROVE THE PURCHASE OF 1166 HIGUERA STREET AND

AUTHORIZE THE EXECUTION OF THE PURCHASE AND SALE
AGREEMENT (Estimated Time: 60 minutes)
107
Recommendation:

1. Approve the purchase of 1166 Higuera Street; and
Authorize the execution of the Purchase and Sale Agreement; and

2. Approve a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the 2023-24 Budget Allocation for Fiscal Year 2023-24 for purchase and use of the property located at 1166 Higuera Street,” authorizing an interfund loan to fund the acquisition under the terms and conditions set forth in Exhibit A.

3. 6.c INTRODUCTION OF ORDINANCE ALLOWING LIMITED ACCESS TO

PUBLIC PARK PARKING LOTS AFTER HOURS FOR ACTIVELY
CHARGING ELECTRIC VEHICLES (Estimated Time: 30 minutes) 141
Recommendation:

Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 12, Streets, Sidewalks and Public Places, of the Municipal Code to allow limited after hours charging of electric vehicles in public park parking lots.”

6.d ADOPT AN AMENDED AND RESTATED RESOLUTION TO CONFIRM THE CITY’S PARTICIPATION IN THE STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM (Estimated Time: 30 minutes)
149
Recommendation:

Adopt an Amended and Restated Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City to join the Statewide Community Infrastructure Program; authorizing the California Statewide Communities Development Authority to accept applications from property owners, conduct special assessment proceedings and levy assessments and special taxes and to form Assessment Districts and Community Facilities Districts within the territory of the City of San Luis Obispo; embodying a Joint Community Facilities Agreement setting forth the terms and conditions of Community Facilities District Financings; approving forms of Acquisition Agreement for use when applicable; and authorizing related actions.”

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

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

LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.

The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410.

City Council meetings are televised live on Charter Channel 20 and the City's YouTube Chanel: www.youtube.com/CityofSanLuisObispo. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 14, 2023
TO: Mayor and Council
FROM: Greg Avakian, Director of Parks and Recreation
Prepared By: Devin Hyfield, Recreation Manager
VIA: Derek Johnson, City Manager
SUBJECT: APPROVE A 5-YEAR USE AGREEMENT WITH SAN LUIS BASEBALL

ALLIANCE (SLO BLUES) FOR USE OF THE BASEBALL STADIUM AT

SINSHEIMER PARK
Staff received the following questions, regarding specification within the agreement between the City and SLO Blues. The questions are below with staff’s response shown in italics:
1) Is the language about the Bike Valet new and is the service now going to be required at all games? That’s not clear to me.

Within the agreement for the SLO Blues, the bike valet is required for games where attendance is expected to be higher than standard games. This follows the Active Transportation Plan (Guideline 7.14) for large special events. Based on average attendance compared to the key larger special events, the City requires the host to institute a bike valet program. Typically, average attendance at SLO Blues games are between 700 (weekdays) and 1200 (weekends). Heavily impacted dates are normally around the three games per season that feature fireworks at the conclusion of the games with attendance over 2000. While there are impacts to the Sinsheimer parking lot during regular season games, the bike valet is not required for regular games as the bike racks within the park and adjacent to the stadium are normally sufficient for game attendees. The Parks and Recreation department provides additional temporary bike fencing to be utilized throughout the season for overflow bike racks and can assess additional fencing for the upcoming season.
2) In the past, there has been a car that has parked by the second set of gates, at almost every game. It has often made it hard for people to get in and out of the bike rack and is part of the reason I have asked for additional bike racks to be added by the grass on the first base side of the building. If there is not a bike valet every game, can we do something to guide them to park their car somewhere else?

Approve a 5-Year Use Agreement with San Luis Baseball Alliance Page 2 The City allows for one to two support vehicles to have direct access to the stadium within the park and Staff will work with SLO Blues for the best locations to park vehicles beyond the fencing during game times to ensure they do not impact any available bike parking or emergency access.
3) I am glad to see that they will now be required to have food waste bins as well as trash and recycling. Can we make sure their bins have good signage about what goes in each one? (I’ve noticed even the recycling bins have been a little bit messy and not utilized properly in the past.) During the preparation for the 2024 season, the City continues to emphasize sustainability to adhere to the Major City Goals and will be setting up meetings between the City’s sustainability division and SLO Blues to discuss the use of the green waste, recycle, and trash bins at the stadium for the Blues season. The City has been working diligently on proper signages for each individual bin and has been posting them at City facilities this past month as well as developing information sheets for public uses which the Blues will be receiving during said meetings. In addition, the City will be ensuring that proper dumpsters for green, recycle and trash are onsite and being utilized properly by SLO Blues.

Item 5b
Department: Parks and Recreation
Cost Center: 7002
For Agenda of: 11/14/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Avakian, Parks & Recreation Director
Prepared By: Devin Hyfield, Parks & Recreation Manager
Brendan Pringle, Business Analyst
SUBJECT: APPROVE A 5-YEAR USE AGREEMENT WITH SAN LUIS BASEBALL

ALLIANCE (SLO BLUES) FOR USE OF THE BASEBALL STADIUM AT

SINSHEIMER PARK

RECOMMENDATION
Authorize the Mayor to execute a Use Agreement with the San Luis Obispo Baseball Alliance, LLC (SLO Blues) for the San Luis Obispo Baseball Stadium at Sinsheimer Park for 2023 to 2028.

POLICY CONTEXT
The City of San Luis Obispo Partnership and Foundation Policy states that “City resources can be used in partnership with others to create opportunities for otherwise unfeasible projects or programs.” SLO Blues has a long-standing relationship with the City and is recognized as a community partner under this definition. In addition, SLO Blues provides a clear and measurable community benefit in alignment with the City’s Major City Goal of “Economic Resiliency, Cultural Vitality and Fiscal Sustainability.”

DISCUSSION
Background
Since its opening in the mid-1960’s, the San Luis Obispo Baseball Stadium (Sinsheimer Stadium) has been the home to a variety of baseball organizations, including a college summer baseball team (the SLO Blues).

The San Luis Obispo Baseball Alliance, LLC, operates as SLO Blues under the guidance and direction of owner Adam Stowe. The San Luis Obispo Baseball Alliance, LLC, obtained the legal right to the “SLO Blues” baseball name and logo; however, legally, it is not the same business. On December 15, 2009, Council agreed to a new one-year agreement with SLO Blues that included an option for a long-term extension, which the City exercised, thereby allowing use of the stadium by the SLO Blues for the 2010-2015 seasons. Upon expiration of the 2009 agreement, the City entered into an agreement for the 2015-2021 seasons, with extension options for the 2022 and the 2023 seasons.

Item 5b
SLO Blues has demonstrated a highly competent and community-focused management staff and has excellent relations and communication with the City and other stadium users each year. SLO Blues has complied with all past facility use agreements and rental payment plans with the City and is requesting another long-term use agreement for the Sinsheimer Stadium.

Request for Long-Term Use of the Stadium
The most recent stadium use agreement extension with the SLO Blues, which aligns to their season, expired on September 1, and City staff and SLO Blues are requesting to finalize a long-term agreement prior to the 2024 season. In order for the team to market, promote, and schedule games, a long-term use agreement is beneficial to both the SLO Blues and the City. The SLO Blues request for a long-term agreement allows for adequate preparation of its long-range strategic business and marketing plans.

Staff recommends continuing the City’s relationship with SLO Blues via the facility use agreement. The SLO Blues have demonstrated a consistent and positive working community relationship and are an accommodating organization to the City and other adult and youth local baseball organizations.

CONCURRENCE
The City Attorney’s Office concurs with the recommendation.

ENVIRONMENTAL REVIEW
The item is categorically exempt from provisions of the California Environmental Quality Act (CEQA) described in Section 15301 (Existing Facilities) of the CEQA Guidelines because it consists of the operation, permitting and licensing of an existing facility that involves no expansion of said facility.

FISCAL IMPACT
Budgeted: N/A Budget Year: 2023-24
Funding Identified: N/A
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:

Total $0 $0 $0 $0

Item 5b
SLO Blues utilizes the Sinsheimer Stadium from May through August and has game attendance ranging from 825 to 2,000 with a seasonal attendance of 30,000. Under the agreement, SLO Blues will be charged the current City facility rental fee, with fees adjusted annually. The current facility fee charges are anticipated to be approximately $22,000 annually under this agreement; expected revenue to the City is included in the Parks and Recreation budgets for the duration of the 2023-25 Financial Plan. As Sinsheimer Stadium is categorized as a multi-use facility utilized by a variety of community sports groups, as well as City programs, the Parks and Recreation and Public Works staff will continue to supervise and maintain the Stadium activities.

ALTERNATIVES
Issue a Year-to-Year Agreement Extension. This would allow for the SLO Blues to continue operations and run their programs. However, a short-term agreement would limit the team’s, as well as the City’s, ability to coordinate and promote their programs due to uncertainty of use for the following seasons.

ATTACHMENTS
A – Draft Use Agreement with SLO Blues for use of Sinsheimer Stadium

AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND SLO BASEBALL ALLIANCE

FOR CITY SINSHEIMER BASEBALL STADIUM
This Agreement made and entered into on by and between the CITY of San Luis of San Luis Obispo, hereinafter “CITY,” and San Luis Obispo Baseball Alliance, LCC, hereinafter referred to as “PERMITTEE”.

RECITALS
WHEREAS, CITY is the owner and operator of Sinsheimer Baseball Stadium, hereinafter “FACILITY” and
WHEREAS, in accordance with the provisions of the San Luis Obispo Municipal Code, the CITY, within its discretion, allows for the use of the FACILITY by interested persons and groups, both public and private; and
WHEREAS, the parties hereby agree they shall carry out this agreement in good faith, and in a manner that demonstrates professionalism, respect and accountability.

WHEREAS, PERMITTEE, seeksto schedule baseball games, tournaments, and clinics at the FACILITY.

NOW, THEREFORE, in consideration of the mutual promises, agreements, covenants and conditions herein set forth, CITY and PERMITTEE mutually agree and covenant asfollows:

1. TERM
The term of this agreement shall be for a period of five (5) years from the date entered. The terms of the Agreement may be extended for two (2) years.

2. USE APPLICATION

2.1 This agreement applies to the use of FACILITY and the adjacent barbeque area only. The use of the FACILITY is for regulation baseball games and clinics only.

2.2 Non-exclusivity. Use of the FACILITY and adjacent Sinsheimer parking lot by PERMITTEE is not exclusive.

2.3 Cancellations. Any cancellation of permitted FACILITY use must be submitted inwriting, including email, ten (10) days in advance to give Park Maintenance weekly planning updates.

2.3.1 Failure to utilize a permitted date at Sinsheimer Stadium will result in PERMITTEE being charged a maintenance fee per occurrence.

2.4 Opening the FACILITY. The PERMITTEE will be provided GK-2 keys for access to the FACILITY.

Quantity of keys will be discussed in accordance with Section 4.1 between CITY and PERMITTEE. Access is granted to the field, BBQ, seating area, concession stand and press box.

2.5 FACILITY Hours. Sinsheimer Park closes at 10:00 PM per CITY ordinance. No new inning may begin thirty (30) minutes prior to park closure.

2.6 Bounce House. PERMITTEE maybe allowed to use the area outside the Stadium located near the first base side gate access, for placement of a bounce house during their permitted use times. Final location of the bounce house will be at the discretion of the CITY Parks Maintenance Division Supervisor.

DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

3. FEES

3.1 All FACILITY fees are based on CITY of San Luis Obispo’s Fee Schedule as is subject to change per CITY Council direction.

3.2 Rental fees associated with the use of the FACILITY are due no later than thirty (30) days after the final permitted rental date of the FACILITY.

4. OPERATION AND MANAGEMENT PLAN

4.1 Preseason Meeting. CITY Recreation Manager will schedule a meeting with PERMITTEE and CITY Parks Maintenance Division Supervisor sixty (60) to ninety (90) days prior to first permitted FACILITY use date.

4.2 Field Preparation Needs. No later than fourteen (14) to thirty (30) working days prior to the first scheduled game, PERMITTEE shall submit in writing to the CITY Parks Maintenance Division Supervisor its field preparation needs; pre-season and during season. PERMITTEE may incur additional cost if determined that the CITY will need to perform additional field preparations for the PERMITTEE beyond those completed during the normal work hours.

4.2.1 PERMITTEE may opt to complete its own field preparation. Access to the playing field will be permitted as outlined in the FACILITY use permit prior to scheduled game times.

PERMITTEE will be required to have a point of contact for all field maintenance issues and will be required to attend a field preparation training offered by Parks Maintenance, if determined.

4.3 Special Events. All special event activities that utilize the FACILITY shall comply with the current CITY special event application process. PERMITTEE must abide by the terms set forth in Special Events Agreement per occurrence.

4.4 Public Safety Plan. Where the fire code official determines that outdoor gathering of persons has an adverse impact on public safety through diminished access to buildings, structures, fire hydrants, and fire apparatus access roads or where such gatherings adversely affect public safety services of any kind, the fire code official shall have the authority to order the development of or prescribe a public safety plan that provides an approved level of public safety and address the following items:

4.4.1 Emergency vehicle ingress and egress.

4.4.2 Fire protection.

4.4.3 Emergency egress or escape routes.

4.4.4 Emergency assembly areas.

4.4.5 Public assembly areas.

4.4.6 The directing of both attendees and vehicles, including the parking of vehicles.

4.4.7 Vendor and food concession distribution.

4.4.8 The need for the presence of law enforcement.

4.4.9 The need for fire and emergency medical services personnel.

4.4.10 The need for a weather monitoring person

4.5 Use of Banners. PERMITTEE has permission to place advertising banners in the FACILITY for the term of the permitted use. Installation of banner shall be coordinated with CITY Parks Maintenance Division Supervisor.

4.5.1 Definition of Banner. Advertising banners are defined as cloth or vinyl material attached to fence (or other designated areas) in accordance with CITY Parks Maintenance Staff. Banners along the fence are not to exceed 6 feet in height by 16 feet in length. Dugout banner type and length subject to approval from with CITY Parks Maintenance Division Supervisor.

4.5.2 Banner Postings. Banners may be posted in the FACILITY annually beginning the first of May through the permitted move-out date.

4.5.3 Banner Fees. In-lieu of paying the City directly for banners, the PERMITTEE is required to provide a donation to the CITY determined by the number of banners and the associated cost based upon size of the banners (banner fees are $25.00 for banners up to 4'X8'; and $50.00 for banners over 4'X8 '). Donation can be in the form of facility DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

upgrades and/or contributions equal to the value of the banner program.

4.5.4 Installation and Damage. Banner installation must be made in a manner acceptable to the Parks Maintenance Supervisor. PERMITTEE is responsible for any damage caused as a result of banner installation. The CITY reserves the right to have any banners removed if deemed inappropriate. If CITY finds banners present after the conclusion of the permitted dates, those items will be removed without notice to PERMITTEE and PERMITTEE shall bear all associated costs with removal.

4.5.5 Special Signage. Signs are defined as any material other than cloth or vinyl. If PERMITTEE desires advertising signs other than banners, a formal request must be forwarded to the Parks and Recreation designee two weeks prior to the desired date of installation. Permission to install signage is at the discretion of the Parks Maintenance Supervisor upon review of the request and shall follow installation guidelines set forth by Public Works.

4.6 Storage. PERMITTEE has permission to place the following storage containers:

4.6.1 Two (2) permanent twenty (20) foot unmarked storage units year-round.

4.6.2 One (1) temporary seasonal sixteen (16) foot unit to be placed in an area behind the left field backstop or to be determined by the CITY Parks Maintenance Division Supervisor.

4.6.3 One (1) ten by ten (10x10) foot non-permanent structure and storage closet place behind the right field bullpen annually.

No alcohol is allowed to be stored in these unit(s). PERMITTEE may store concession items, except alcohol, in the concession/press box building and storage unit, subject to availability of storage and County Health regulations. Items are stored at the PERMITTEE's own risk. If PERMITTEE wishes to store additional items on site, written permission from CITY must be obtained in advance.

4.7 Cleaning of FACILITY. PERMITTEE shall ensure that the FACILITY, including the concession stand and press box, is neat, clean, and in sanitary condition and the SLO Baseball Stadium User Checklist is completed and submitted to City at the conclusion of each event.

4.7.1 CITY will schedule a cleaning of the concession stand and press box area prior to the permitted move-in date per season.

4.8 Portable Restrooms. The CITY shall provide portable restrooms from a licensed vendor for the right and left field foul areas for players to use and portable restrooms within the FACILITY as determined during the preseason meeting. The increased cost to the CITY shall be covered by users and will be billed based upon percentage during the season of scheduled stadium usage.

For any special event activities, additional portable restrooms must be provided.

5. SECURITY

5.1 PERMITTEE shall be responsible for procuring and paying for security personnel from a private security agency for the purpose of monitoring the stadium area, alcohol sales and consumption and outside parking lot.

5.2 CITY, at its sole discretion, may require additional security personnel per permitted use. Should circumstances dictate the need for additional security, PERMITTEE shall provide such upon written request to the CITY.

5.3 Security personnel shall be on duty one (1) hour prior to game time and stay one (1) hour after the completion of the game.

5.4 CITY is not responsible for providing supervision of attendees per permitted use. However, CITY may evict individuals from the permitted use if their conduct is not in the best interest of the public or is deemed to be detrimental in any way.

6. AMENITIES

6.1 Alcohol Concessions. PERMITTEE shall not keep alcoholic beverages inside the FACILITY premises overnight. PERMITTEE also agrees to contact the CITY Parks Maintenance Division DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

Supervisor for written authorization to locate any portable structures used to sell alcohol inside the FACILITY. Two (2) single locked beverage trailers are approved for the use at FACILITY for the season:

6.1.1 One (1) adjacent to the left field gate in the Sinsheimer Parking lot for the season.

6.1.2 One (1) adjacent to the right field gate along the turf area next to the FACILITY.

Vehicles and/or trailers used for concessions must be parked in the parking lot near the third base stairway. PERMITTEE shall comply with all rules and regulations of the California Department of Alcohol Beverage Control and obtain any required permits prior to engaging in the sale of alcoholic beverages. At least thirty (30) working days prior to the first scheduled game, PERMITTEE shall obtain permission to sell alcoholic beverage from the Parks & Recreation Department; such permission may be denied if proof of adherence to applicable California Department of Alcohol Beverage Control rules and regulations is not demonstrated.

Permission to sell alcohol can be revoked for violations of the terms of the agreement, or as a result of any inappropriate actions by PERMITTEE's representatives in conjunction with the distribution of alcohol. Revocation of the right to sell alcohol can be made by either the CITY or the California Department of Alcohol Beverage Control. Relocation of the beverage trailer may be required during CITY special events.

6.2 Electrical Hookup for Trailer. The CITY shall provide an electrical hookup at the bottom of the third base stairway for the PERMITTEE's concession trailer. In-lieu of paying the CITY directly for the electrical hookup utility, the PERMITTEE is required to provide a donation to the CITY determined for the associated cost of the electrical hookup in the amount of $10 for each day of use. Donation can be in the form of facility upgrades and/or contributions equal to the value of the electrical hookup.

6.3 Food Vendors. All vendors shall be subject to an inspection by the CITY Fire Department prior to the start of the season. Each vendor must have a completed Fire Department Special Event Permit in their possession during the inspection. PERMITTEE must also have an event staff member available to assist the Fire Inspector with their inspections. PERMITTEE is required to contact the Fire Department at 805-781-7386 to confirm inspection arrangements prior to the start of the season.

6.3.1 Food must be protected from airborne particles and PERMITTEE is responsible for ensuring food handlers are masked while serving at the permitted events.

6.3.2 PERMITTEE is responsible for ensuring that the vendors at the permitted uses comply with California Health and Safety Code’s regulations for food vendors. PERMITTEE may contact SLO County Health at 805-781-5544 to obtain requirements for temporary food facilities and necessary permits.

7. SUSTAINABILITY REQUIREMENTS

7.1 In accordance with Municipal Code Sections 8,06, 8.07, and 8.09 of the Health and Safety plan, the PERMITTEE shall not:

7.1.1 Sell/distribute single-use plastic bottles or cups for the permitted uses.

7.1.2 Distribute plastic straws, unless upon request.

7.1.3 Provide disposable food containers that are not biodegradable, compostable, or recyclable. The use of disposal food containers made from expanded polystyrene is prohibited.

7.2 In accordance with Integrated Waste Management Authority Ordinance 2008-3, PERMITTEE must provide sufficient garbage and recycling services, including organics.

7.3 CITY Parks Maintenance Division Supervisor will establish garbage and recycling service requirements. PERMITTEE and the Parks Maintenance Division Supervisor shall discuss the following:

7.3.1 Sufficient Service: The number and size of cans needed for each permitted use will be determined by the Parks Maintenance Division.

DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

7.3.2 Additional Service: If additional cans and service are required per the Parks Maintenance Supervisor, PERMITTEE is responsible for arranging service via San Luis Garbage (805-543-0875).

7.4 It is the PERMITTEE’s responsibility to monitor solid waste and recycling source separation practices for the permitted uses to prevent contamination of bins.

8. PARKING REQUIREMENTS

8.1 Parking Plan. PERMITTEE shall provide a written parking plan for heavily impacted dates noting bike valet services, alternative parking, and steps to minimize parking impacts.

8.2 Parking Monitoring. PERMITTEE shall provide at least one parking monitor in addition to the security personnel, before, during and after all scheduled games. The Parking Monitor's responsibility is to see that vehicles are legally parked in designated spaces and keep all fire lanes open in accordance with Fire Codes and Regulations.

8.3 PERMITTEE acknowledges that use of the adjacent parking lot is non-exclusive and serves surrounding facilities such as Sinsheimer Park and Sinsheimer Pool. In consideration of these other uses, PERMITTEE shall encourage players and staff to park in locations other than the parking lot during games and/or carpool to reduce the number of parking spaces rendered unavailable to other users of the FACILITY and surrounding areas.

8.4 If any disabled parking is covered by the beverage trailer, additional disabled parking near the stadium must be made available.

8.5 Gate Access (Vehicles beyond the gate). Up to two (2) Authorized vehicles are permitted to park beyond the park gates per event occurrence. Other pre-authorized vehicles are approved for deliveries only for a maximum of 15 minutes.

9. BIKE VALET REQUIREMENTS. In accordance with Design Guidelines Policy 7.14 of the Active Transportation Plan, PERMITTEE must provide bike valet services in compliance with the requirements below per scheduled use:

9.1 Space: Provide a space that is enclosed and secured on three sides (“Corral”). The fourth side of the Corral shall consist of a table for checking in bicycles. The Corral shall be placed at an easily accessible and visible location, preferably at the entrance gate to the event, or another location approved by CITY staff.

9.2 Hours: Hours of operation of the bike valet must be at least one hour prior to the scheduled game hours and conclude upon completion of the scheduled game.

9.3 Advance Promotion: The availability of the bike valet service shall be noticed on all promotion including print, website, radio, and social media. Notice shall consist of the phrase “Free Bike Valet.” Bike valet info must be provided whenever any kind of transportation or directional info is advertised for the scheduled season.

9.4 Handling/Care of Bicycles: The bike valet area must be monitored at all times. Valet staff must handle the receiving and returning of bicycles. Valet staff must also have a system in place for keeping track of the owners of bicycles and their contact info (in case the owner does not pick up the bike). Tracking is usually accomplished with a sign-in sheet and numbering system with claim check tickets. A sufficient number of staff must be provided, and that number will vary depending on whether attendees arrive all at one time or are staggered over a period of time.

Valet staff must record the number of bicycles parked at the event and be able to provide the number to CITY staff.

9.5 Theft/Loss: PERMITTEE shall be responsible for any loss or theft to checked bikes.

11. DAMAGES. PERMITTEE accepts the condition of the FACILITY as is. PERMITTEE shall be responsible for any damage to the FACILITY beyond normal wear and tear. The CITY must be notified of any damage to equipment within one day of its occurrence.

12. ALTERATIONS. PERMITTEE is not authorized to make any other alterations to the FACILITY other than those outlined in this agreement without prior written authorization from the CITY DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

Parks Maintenance Division Supervisor.

13. INSURANCE & INDEMNIFICATION
Indemnification. PERMITTEE shall defend, indemnify, save, and hold harmlessthe CITY, its city council, members of board and commissions, its officers, agents, employees and volunteers (“herein for the purposes of this provision collectively referred to as “AGENCY”) from and against any and all causes of action, claims, liabilities, obligations, judgments, losses, costs, expenses or damages, including liability for injuries or illnesses to any person, or persons or damage to property arising out of or in any way connected with PERMITTEE’S use of the FACILITY. PERMITTEE’s duties hereunder include, but are not limited to, claims, allegations, or liabilities, in whatever form, arising from breach of contract, bodily injury, economic loss, death, personal injury, property damage, loss of use, or property loss. The PERMITTEE’s obligation to indemnify, defend and hold harmless includes, but is not limited to, any liability or expense, including defense costs and legal fees, arising from the negligent acts or omissions, or willful misconduct of PERMITTEE, its officers, employees, agents, participants, representatives, or vendors. It is further agreed, PERMITTEE’s obligations to indemnify, defend and hold harmless will apply even in the event of concurrent active or passive negligence on the part of AGENCY except for liability resulting from the sole negligence or willful misconduct of AGENCY relating to PERMITTEE’s use of the FACILITY under this AGREEMENT. In the event the AGENCY is made a party to any action, lawsuit, or other adversarial proceeding arising from PERMITTEE’s use of the FACILITY encompassed by this AGREEMENT, and upon demand by AGENCY, PERMITTEE shall have an immediate duty to defend the AGENCY at PERMITTEE’s cost or at AGENCY’s option, to reimburse AGENCY for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters.

Insurance. PERMITTEE shall maintain insurance in conformance with the requirements set forth in this section and Exhibit A (attached hereto and incorporated herein by reference). PERMITTEE will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, PERMITTEE agrees to amend, supplement, or endorse the existing coverage to do so.

PERMITTEE acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to PERMITTEE in excess of the limits and coverage identified in this AGREEMENT and which is applicable to a given loss, claim or demand, will be equally available to CITY.

CITY reserves the right to require additional insurance coverage(s) not specified in this section, if, in the sole discretion of the CITY, such additional coverages are necessary to protect the CITY.

14. ANNUAL AGREEMENT REVIEW
Once each year, before the start of the ball season, PERMITTEE and CITY representatives will meet on site to review the requirements of the agreement, identify contacts, establish priority usage of FACILITY for PERMITTEE league, and review any problem areas forthe prior year. CITY will initiate such meetings working with PERMITTEE to arrive at a reasonably convenient time for both parties.

15. SAFETY
PERMITTEE shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

Whenever PERMITTEE operations create a condition hazardous to the public or CITY employees, it shall, at its expense and without cost to the CITY, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees.

DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

16. COMMUNICATIONS

16.1.CITY Point of Contact. The Recreation Manager is the CITY representative that PERMITTEE shall contact for all issues related to the use of the FACILITY and the operation of this Agreement. All contacts must be in writing, including email. If the Recreation Manager cannot be reached, the Parks and Recreation Director may be contacted.

16.2.PERMITTEE Point of Contact. Adam Stowe is the San Luis Obispo Baseball Alliance the CITY shall contact for all issues related to the FACILITY and operation of this Agreement. All contacts must be in writing, including email.

16.3.Written Notice. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows:

CITY: Parks & Recreation Department
Attn: Devin Hyfield, Recreation Manager
1341 Nipomo Street
San Luis Obispo, CA 93401
[email protected]
PERMITTEE: San Luis Obispo Baseball Alliance
Attn: Adam Stowe
3591 Sacramento Dr, STE 114
San Luis Obispo, CA 93401
[email protected]

17. TERMINATION
Either party may terminate the Agreement for convenience, provided 30 days written notice is given.

The Agreement may be terminated by either party for cause, provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within 10 days, or to make substantial progress toward cure to the satisfaction of the parting demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein.

18. AUTHORITY TO EXECUTE AGREEMENT.

Both CITY and PERMITTEE do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreementsfor such party.

19. COMPLIANCE WITH LAW.

The PERMITTEE shall keep him/her/itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws and regulations.

The CITY, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this Section.

20. GOVERNING LAW.

The CITY and PERMITTEE understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in San Luis Obispo County Superior Court, regardless of other courts with jurisdiction over the matter.

21. BUSINESS LICENSE AND TAX.

The PERMITTEE shall maintain a valid CITY of San Luis Obispo business license & tax certificate when applicable before execution of the contract. Additional information regarding the CITY’s business license and tax program may be obtained by calling (805) 781-7134. Should the business tax license expire DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

during the term of the FACILITY use permit, PERMITTEE shall present proof of license renewal on or before the due date of the license in order to continue use of the FACILITY for the remainder of FACILITY use permit.

22. ASSIGNMENT. The PERMITTEE shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the CITY.

23. NON-DISCRIMINATION.

23.1.There shall be no discrimination against or segregation of any person or group of persons on account of race, religion, sex, sexual orientation, national origin or ancestry, age, physical, mental or economic status in the operation, lease, use, occupancy, tenure or enjoyment of the FACILITY or the improvements thereon, or any part thereof, and PERMITEE, or any person claiming under or through it, shall not establish or permit any such practice of discrimination or segregation with reference to the selection, location, number, use or occupancy of employees, contractors, subcontractors, laborers, or material men, tenants, lessees, subtenants, sublessees, invitees or vendees of the FACILITY or the improvements thereon, or any part thereof.

23.2. PERMITTEE shall not restrict access or use of the FACILITY or the improvements thereon, or any portion thereof, on the basis of race, religion, sex, sexual orientation, national origin or ancestry, age, physical, mental, or economic status of any person.

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

ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: By:

Teresa Purrington, City Clerk Erica Stewart, Mayor
APPROVED AS TO FORM: PERMITEE – San Luis Obispo Baseball Alliance, LLC By: By:

Christine Dietrick, City Attorney
DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

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

Liquor liability insurance. PERMITTEE shall maintain full liquor liability insurance coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate.

Athletic Participant’s Medical Expense. Sports associations or events with athletic participants shall provide evidence of athletic participant's medical expense coverage to respond to athletic participant's injuries. This coverage may be part of commercial general liability coverage.

Other provisions or requirements
Proof of insurance. PERMITTEE shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by CITY prior to commencement of the use of the FACILITY. Current certification of insurance shall be kept on file with CITY at all times during the term of this AGREEMENT. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. PERMITTEE shall procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the use of the FACILITY hereunder by PERMITTEE, its agents, representatives, employees, or volunteers.

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

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

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

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

CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by PERMITTEE. In DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

the alternative, CITY may cancel this AGREEMENT.

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

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

Notice of cancellation. PERMITTEE agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the PERMITTEE’s insurers are unwilling to provide such notice, then PERMITTEE shall have the responsibility of notifying the City immediately in the event of PERMITTEE’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal.

Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies, as applicable, shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. Prohibition of undisclosed coverage limitations. None of the coverages required herein shall comply with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

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

Pass through clause. PERMITTEE agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by PERMITTEE (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of PERMITTEE. PERMITTEE agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event PERMITTEE’s subcontractor cannot comply with this requirement, which proof must be submitted to the City, PERMITTEE shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the PERMITTEE, but in all other terms consistent with the PERMITTEE’s requirements under this agreement. This provision does not relieve the PERMITTEE of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide PERMITTEE with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the PERMITTEE under this agreement given the limited scope of work or services provided by the subcontractor. PERMITTEE agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to City for review.

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

DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

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

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

CITY reserves the right to require additional lines of insurance, such as:

1. Sexual abuse/molestation insurance. PERMITTEE shall procure and maintain sexual abuse and molestation liability coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate. This coverage may be part of commercial general liability coverage, professional liability coverage, or a separate policy.

2. Other. If PERMITTEE contracts with a third-party service provider (e.g., caterer), PERMITTEE will require the service provider to procure and maintain at its sole cost and expense comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, and if applicable, liquor liability coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, or other lines of coverage CITY requires. Both CITY and PERMITTEE shall be endorsed as additional insureds.

DocuSign Envelope ID: ED4F4C19-A8F6-4FCA-BCE2-B0D2907A241E

Item 5c
Department: Administration
Cost Center: 1021
For Agenda of: 11/14/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: APPROVE THE SCHEDULE OF CITY COUNCIL MEETINGS FOR 2024

RECOMMENDATION
Adopt the proposed 2024 Regular City Council Meeting Schedule with meetings normally held on the first and third Tuesday of every month, with the following exceptions:

1. Reschedule the Regular City Council meeting of January 3 to January 9, 2024; and

2. Reschedule the Regular City Council meeting of January 16 to January 23, 2024; and

3. Cancel the Regular City Council meetings of August 6, and December 17, 2024; and

4. Reschedule the Regular City Council meeting of November 5 to November 12, 2024.

POLICY CONTEXT
The recommended action follows previously established practices for canceling and rescheduling meetings.

DISCUSSION
The City Council’s regular meetings are scheduled for the first and third Tuesday of every month pursuant to Section 1.1.2.1 of the Council Policies and Procedures. The proposed 2024 meeting schedule is provided for Council consideration (Attachment A).

Summer and Winter Council Meeting Schedule
Since 1994, it has been the practice of the City Council to cancel a regular meeting in the months of August and December. This practice allows the Council an opportunity to plan vacations, reduce meeting absences and maximize public participation. Historically, the first meeting in August has been canceled and, when the second meeting in December falls close to the holidays, the second meeting in December has been canceled.

Item 5c
The draft schedule proposes to cancel the first meeting in August and the second meeting in December. In addition, due to the first meeting in January falling so close to the New Year’s Day holiday, staff is proposing to reschedule the January 2 nd regular meeting to
January 9
th
. Subsequently, the second meeting in January also falls close to a holiday, Martin Luther King Jr. Day, therefore staff proposes to reschedule the January 16th regular meeting to January 23rd.

Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at 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: N/A Budget Year:

Funding Identified:

Fiscal Analysis:

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

Total $ $ $ $
There are no fiscal impacts associated with approving the Council meeting dates for 2024 as all expenditures related to the meetings are accounted for in the annual budget appropriation.

Item 5c

ALTERNATIVES

1. Council could choose to not reschedule the first meeting in January.

2. Council could choose to not reschedule the second meeting in January.

3. Council could choose not to cancel the first meeting in August and the second meeting in December.

ATTACHMENTS
A – Draft 2024 City Council Meeting Calendar

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City Council Meeting Schedule
December
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Re-scheduled Regular
January February March
Regular Meetings
Recommend Cancellation
Holidays
September
2024
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Item 5d
Department: Parks and Recreation
Cost Center: 7002
For Agenda of: 11/14/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Avakian, Parks & Recreation Director
Prepared By: Devin Hyfield, Parks & Recreation Manager
Brendan Pringle, Business Analyst
SUBJECT: AUTHORIZE AN UPDATED AGREEMENT BETWEEN THE CITY OF SAN

LUIS OBISPO AND SESLOC CREDIT UNION FOR PARKING LOT USE

DURING EVENTS AT DAMON-GARCIA SPORTS COMPLEX

RECOMMENDATION
Authorize the City Manager to enter into an updated agreement between City of San Luis Obispo and SESLOC Federal Credit Union (SESLOC) for the use of its parking lot as overflow parking for events held at the Damon-Garcia Sports Complex.

POLICY CONTEXT
The City of San Luis Obispo Partnership and Foundation Policy states that "City resources can be used in partnership with others to create opportunities for otherwise unfeasible projects or programs." Since 2005, the City has partnered with SESLOC to address the need for overflow parking. This partnership has benefited community members and visitors for the last two decades.

DISCUSSION
Background
When the Damon-Garcia Sports Fields were designed and built between the late 1990s and 2005, the Initial Environmental Study determined that additional parking spaces would be needed to meet the demands of users during peak usage. The report indicated that using parking management techniques such as scheduling gaps between games, staggering start times, and requiring youth sports leagues to carpool or add shuttle service, could meet most, but not all, of the parking shortfall. In addition, the report suggested that the City could reduce this parking deficit even further by “entering into an agreement with the owner of the property immediately to the south of the site to provide Saturday overflow parking.”
The City conducted initial conversations with the then-property owner, but the property was sold to SESLOC Federal Credit Union (SESLOC) before a formal overflow parking agreement was reached. During the initial year of operations at the Damon-Garcia Sports Complex, the City assessed the parking situation, during which there were major parking impacts to the surrounding area, including the Marigold Shopping Center and Industrial Avenue across the street, as well as along Highway 227 (Broad Street).

Item 5d
Initial Short-Term Use Agreements with SESLOC
In 2006, the City entered into discussions with SESLOC for use of SESLOC’s unimproved vacant lot adjacent to the sports fields as a temporary parking facility. The City and SESLOC were able to come to a short-term agreement on parking solutions for the sports fields (Attachment A). The SESLOC Board of Directors agreed to allow the City to construct and manage a temporary overflow parking lot on SESLOC’s property (previously a dirt lot) at the end of Industrial Way (Attachment B).

As part of the initial, annual use agreement, the City: 1) installed and paid for the cost of lighting for the vacant, unimproved lot, 2) facilitated the necessary zoning changes and permits, 3) coordinated and contracted the construction of a temporary parking lot, 4) maintained the lot, and 5) agreed to hold harmless, indemnify, and defend SESLOC against claims. In return, SESLOC leased the lot to the City for $1.00 per year. The estimated construction costs incurred by the City at this time was $100,000.

The City re-entered into an updated version of the Agreement in 2010, and the temporary overflow parking lot was used effectively to alleviate parking issues at the site during peak seasonal demand periods. Peak usage is predominantly on Saturdays during the fall AYSO soccer season and during soccer and other turf sports tournament uses.

Initial Long-Term Lease Agreement with SESLOC
In 2013, SESLOC notified the City of its intention to terminate the lease as a result of its construction plans to develop its corporate headquarters at 3807 and 3855 Broad Street in 2013 and 2014. As a result, the temporary City-constructed parking located on its property was deconstructed, as required by the short-term agreement.

As part of the SESLOC headquarters project, a formalized parking lot was constructed which included the North Lot, comprised of 57 spaces (not including two ATM-designated spaces), and the South Lot, comprised of 105 spaces.

The City entered into a 10-year term lease agreement (Attachment C), on November 5, 2013, which required a one-time, up-front payment of $32,000 upon execution. In return, peak-use parking has been allowed on SESLOC premises, with the City providing parking monitor staffing during events that utilized the overflow parking areas, as well as ensuring proper clean-up after events.

The parking lot has effectively served the overflow parking needs of the Damon Garcia Sports Fields for the past ten years. With the end of the current 10-year lease agreement term approaching, the City and SESLOC have been in negotiations to update the lease agreement over the past several months with the expectation of finalizing the terms in November. Based on the positive relationship over the previous years, SESLOC has allowed the City to continue using the facility while an agreement is being finalized as the current lease expired on November 5, 2023.

Item 5d
Proposed Lease Agreement
City staff and SESLOC representatives have negotiated an updated lease agreement that will continue to serve the overflow parking needs of users of the Damon-Garcia fields.

The new proposed agreement (Attachment D) accounts for the adjustments to the fair market value of the leased parking spaces, and outlines the following terms:
1) The term of the agreement will be for a period of five (5) years, terminating on April 30, 2029 (see #4 below for additional information).
2) The term of the Agreement may be extended for five (5) or ten (10) years upon mutual agreement.
3) For the use of the premises, the City will pay SESLOC an annual sum of $10,000 per year by July 31 of each year.
4) For the period of November 5, 2023 to April 30, 2024, which is the remainder of the current athletic season, the City will pay SESLOC a prorated sum of $6,500 upon execution of the lease.

In terms of usage, all 105 spaces in the South Lot would be available Monday-Friday, 6:00 pm-10:00 pm, and Saturday and Sunday, 7:00 am-10:00 pm. Based on SESLOC operational needs for a specific number of parking spaces to support SESLOC personnel, the North Lot (57 spaces) would be available as follows:
1) Monday-Friday from 6:00 pm-10:00 pm, all 57 spaces would be available. 2) Saturdays and Sundays (if overflow is predicted to be 50 or more vehicles) from 7:00 am-5:00 pm, 41 parking spaces and 7 ADA stalls would be available, and from 5pm-10pm, all 57 parking spaces would be available. 3) Saturdays and Sundays (if overflow is predicted to be less than 50 vehicles), all 57 parking spaces would be available from 7:00 am-10:00 pm.

City staff would continue to provide parking monitors when overflow parking is required.

Previous Council or Advisory Body Action
On August 15, 2006, Council approved a short-term lease agreement with SESLOC for their property at 3807 and 3855 Broad Street as a temporary overflow parking facility for Damon-Garcia Sports Fields.

On November 5, 2013, Council approved a long-term lease agreement with SESLOC.

CONCURRENCE
The City Attorney’s Office concurs with the recommendation.

ENVIRONMENTAL REVIEW
This item is categorically exempt from provisions of the California Environmental Quality Act (CEQA) described in Section 15301 (Existing Facilities) of the CEQA Guidelines because it consists of the operation, permitting and licensing of an existing facility that involves no expansion of said facility.

Item 5d

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 $6,500 $6,500 $0 $10,000
State
Federal
Fees
Other:

Total $6,500 $6,500 $0 $10,000
Under the new agreement, the City would pay SESLOC $10,000 per year for the use of the lots, and due upon execution of the agreement, a prorated sum of $6,500 for the remainder of the current athletic season (November 5, 2023 to April 30, 2024). As a result of the proration, the current Parks and Recreation Department budget can accommodate the FY 24 impact of $6,500. With the anticipated timing of the City-wide Fee Survey results occurring in spring 2024 and incorporated updated fee structures initiated in July 2024, it is anticipated that the annual fiscal impact for FY25-29 of $10,000 per year would be incorporated into the field reservation fee formats that require the use of the overflow parking to support large programs, tournaments, and events.

ALTERNATIVES

1. Do not renew the Lease Agreement with SESLOC. This is not recommended due to the vital need of additional parking at the site during its peak uses. SESLOC and its Board of Directors have graciously agreed to continue to partner with the City in a collaborative fashion and this partnership benefits community members and visitors.

2. Direct staff to look at other parking options located near the Damon-Garcia site.

There are extremely limited options in close proximity and the cost benefit of this alternative does not make fiscal sense at this time.

ATTACHMENTS
A - Short-Term Lease Agreement with the City of San Luis Obispo and SESLOC (2006) B - Site Map of Overflow Parking Lot
C - Long-Term Lease Agreement with the City of San Luis Obispo and SESLOC (2013) D - Updated SESLOC Overflow Parking Lease (2023)

Mntiue Da¢ 8-15-06
Ium Number
council
acenba Report

C I T Y O F S A N L U I S O B I S P O
FROM : Betsy Kiser, Parks and Recreation Directo r
SUBJECT: LEASE AGREEMENT WITH SESLOC FEDERAL CREDIT UNION FO R

TEMPORARY OVERFLOW PARKING FACILIT Y

CAO RECOMMENDATION
Approve a lease agreement with SESLOC Federal Credit Union (SESLOC) for the use of property at 3807 and 3855 Broad Street for the use as a temporary overflow parking facility fo r the Damon-Garcia Sports Fields and authorize the Mayor to execute the lease agreement .

DISCUSSION
Background
When the Damon-Garcia Sports Fields were designed, the Initial Environmental Study determined that additional parking spaces would be needed to meet the demands of users durin g peak usage (peak usage was then estimated to occur on about 10 Saturdays a year during yout h soccer season) . The report indicated that using parking management techniques such a s scheduling gaps between games, staggering start times, and requiring youth sports leagues t o carpool or add shuttle service, could meet most, but not all of the parking shortfall . To reduce the peak seasonal parking deficit even further, the Study indicated that the City could "enter int o an agreement with the owner of the property immediately to the south of the site to provid e Saturday overflow parking ." This measure was the outcome of conversations with the then owner of the property ; however the property was sold prior to the establishment of a forma l agreement for overflow parking.

Current Situatio n
The Damon-Garcia Sports Fields have been in regular use for the past year giving staff sufficien t time to evaluate the parking situation. During this time, overflow parking has occurred acros s the street from the fields in the Marigold Center and Goodwill parking lots . While the users have been instructed to park in the "center" of the Marigold parking lot, so patrons can par k close to its retail shops, the reality of the situation is that it is impossible to police and retailer s have complained that overflow parking takes place in spaces closest to the fields .

Based upon the facility's use for the last year and anticipated uses over the next year, Parks & Recreation staff expects that there will be between 19-22 weekends (rather than the origina l estimate of 10 weekends) with scheduled events that may have an impact on the existing parking. The majority of these dates fall between August 1 and November 30, which happen t o be the peak use time for local youth soccer organizations . Even by employing the previously mentioned mitigation strategies, staff estimates the need for an additional 75-100 parking spaces.

Discussions with SESLOC

SESLOC Lease Agreement Page 2
Discussions with SESLO C
SESLOC is the current owner of the property immediately to the south of Damon-Garcia Sport s Fields and is the site previously mentioned as a possible overflow parking area . Over the past several months Mayor Romero, Councilmember Ewan, and City staff from the Public Works , Parks and Recreation departments, and the Assistant City Attorney met on a number of occasion s with members of SESLOC's Board of Directors and staff to discuss the possibility o f collaborating on short and long-term parking solutions for Damon-Garcia Sports Fields. What has evolved is a plan to resolve parking issues for the short-term and an agreement to continu e the dialogue relative to a long-term solution.

Short-term Parking Solutio n
To meet the present peak parking needs of Damon-Garcia Sports Fields, the SESLOC Board o f Directors has agreed to allow the City to construct and manage a temporary overflow parking lo t on SESLOC's property at the end of Industrial Way (Attachment 1, Vicinity Map an d Conceptual Plan). To make this a reality, several actions need to occur:

1. A lease agreement must be entered into between the City and SESLOC (the subject o f this report).

2. The Airport Area Specific Plan must be amended to allow temporary parking in the Business Park zone and an ordinance amending the City's Zoning Regulations to allow temporary parking in the Business Park zone must be introduced (these land us e modifications will be considered as a separate item before Council at the August 15th Meeting).

3. The City must apply for a Director of Community Development's Use Permit for a temporary parking lot at the leased location.

4. The temporary parking lot design must receive all requisite permits and approvals from the SESLOC Board and the City .

5. The necessary contractual agreements to facilitate construction must be bid, approved, and entered into by the City .

Once all issues are resolved, the intent is to complete the temporary parking lot by early December, 2006 .

Terms of the Proposed Lease Agreement
The proposed Lease Agreement (Attachment 2) has been reviewed and approved by the SESLOC Board of Directors. Highlights of the agreement include, but are not limited to, th e following:

1. Lighting. The City will install and pay for the cost of providing lighting for the lot area .

2. One-year agreement with option to extend. The agreement has been limited to a one - year term, subject to extension in one year increments, not to exceed a total of three year s to reflect the temporary nature of the facility .

3. Cost. The City will pay SESLOC an annual rent of $1 .00 per year.

4. Security. The City will provide for supervision of the lot area during use of the premise s for City sponsored functions.

G:\Staff\Stanwyck\Council Agenda Reports\CAR - SESLOC Agreement 8 .01 .06 .doc eq- Page 38 of 206
SESLOC Lease Agreement Page 3

5. Maintenance. The City will maintain the lot and perform weed abatement on area s surrounding the lot.

6. Hold Harmless and Indemnification . The City agrees to hold harmless, indemnify an d defend SESLOC in the event of a claim for damages by a third party.

Long-term Parking Solution
SESLOC and the City discussed various options for a long-term parking solution, includin g developing a long-term lease agreement with SESLOC to use its future parking lot for th e overflow parking needs of the Damon-Garcia Sports Fields, as was recommended in the initia l Environmental Study and envisioned by the City and the former property owner ; and negotiating the purchase of a portion of the SESLOC property to build the City's own permanent parking area. Both organizations agreed that, in time, we could further examine both (and other) option s in greater detail. SESLOC has also indicated that they have development plans for the site, an d would be willing to work with the City on some type of a shared parking arrangement .

CONCURRENCES
The Assistant City Attorney and Public Works Director assisted with the development of th e agreement. The SESLOC Board of Directors reviewed the terms of the agreement at its July 18 , 2006 meeting and approved of the terms.

FISCAL IMPACT
There is minimal fiscal impact associated with the approval of the lease agreement. SESLOC has offered to lease the lot to the City for a fee of $1 .00 per year. A preliminary cost estimate o f the construction of the temporary parking lot is $90,000 based on staff from the Public Works Department performing a portion of the work . Staff is investigating these costs further and wil l bring back to Council a proposed project budget for consideration in the near future .

ALTERNATIVES
Do not enter into a lease agreement with SESLOC for use of its premises for a temporar y overflow parking facility. This is not recommended because of the critical need to address this issue in a timely and effective manner. The temporary lease of SESLOC's property presents th e best short term solution to the problem.

ATTACHMENTS

1. Vicinity Map and Conceptual Plan

2. Lease Agreement
G:\Sta£f\Stanwyck\Council Agenda Reports\CAR - SESLOC Agreement 8 .01 .06 .doc

ATTACHMENT 2

TEMPORARY OVERFLOW PARKING FACILITY LEAS E
This Lease is made and entered into this _ day of , 2006, by and between SESLOC FEDERAL CREDIT UNION, a member-owned financial institution (hereinafter referred to as "Lessor" ) and the CITY OF SAN LUIS OBISPO, a municipal corporation and charter city, (hereinafter referred t o as "Lessee").

RECITALS
This Lease is made and entered into with respect to the following facts :

A. Lessor is the owner of the property depicted in Exhibits "A" and "B," located at 3807 an d 3855 Broad Street, San Luis Obispo, California (hereinafter, "Premises") .

B. Lessee has requested permission to construct a temporary overflow parking lot to b e located on Premises and Lessor is willing to lease a portion of Premises to Lessee for that purpose upo n the terms and conditions hereinafter set forth .

NOW THEREFORE, the parties hereto agree as follows :
1 . Premises and Equipment . Lessor is the owner of parcels of land located in the City of San Luis Obispo, County of San Luis Obispo, State of California, located at 3807 and 3855 Broad Street.

The Premises are more particularly depicted in Exhibits "A" and "B," attached hereto . Lessor hereby agrees to lease to Lessee and Lessee hereby agrees to lease from Lessor approximately 4845 square meters of Premises (hereinafter "Lot Area"), more specifically depicted as that area within the "ne w fence" line in Exhibit "B," which is attached hereto and by this reference made a part hereof. Lessor further agrees to permit Lessee access to and use of certain equipment (hereinafter "Equipment"), a s depicted in Exhibit "B" hereto, located on the Premises in order to support the use, operation an d maintenance of the Lot Area . This Lease is subject to the terms, covenants and conditions hereinafter se t forth and Lessee covenants, as a material part of the consideration for this Lease, to keep and perfor m each and every term, covenant and condition of said Lease .

During the term of this Lease, Lessor also grants to Lessee an irrevocable, nonexclusive right of ingress and egress, seven days a week, twenty-four (24) hours a day to the Premises, Lot Area an d &1-4

ATTACHMENT .

Equipment referenced herein as may be necessary or expedient to construct, operate and maintain the Lot Area, Equipment and portions of the Premises specified herein .

2. Improvements and Weed Abatement .

A. Lessee shall perform, design, construct or erect or cause to be constructed o r erected at its sole cost the following improvements as shown on Exhibit "B" (hereinafter "Lot Improvements"):
1) Design Lot Area, including appropriate ingress as egress as specifie d herein, and install Lot Area surfaces, at or about location specified in Exhibi t 2) Design and construct enclosure of Lot Area, with gated access for ingress and egress, as specified in Exhibit "B .".

B . The Lot Improvements shall be performed by Lessee after consultation with Lessor and Lessee shall permit Lessor to review and comment on construction plans prior to submittin g the application and plans to the Community Development Department for processing and approval .

C. The required enclosure shall be designed and constructed so as to permit Lo t Area traffic ingress and egress simultaneously and shall include an additional gate access to provid e Lessor with ingress and egress to the rear portion of the Premises at approximately the location of the agricultural crossing of the creek, as depicted in Exhibit "B," as that crossing is now or may subsequentl y be located.

D. Any grading necessary to the construction of the Lot Improvements shall be conducted so as to maintain the existing grade of the property to the extent possible . There shall be no offsite movement or storage of graded material and Lessee shall be permitted to store any graded materia l on site at the approximate location specified in Exhibit "B. " E. Lessee shall remove weeds and debris in the Lot Area and limited surroundin g areas, as more specifically depicted in Exhibit "A ."

ATTACHMENT .

3. Lighting. Lessee shall provide for lighting of the Lot Area during any nighttime event use. Lessor shall permit lessee to utilize, and/or relocate as necessary, an existing metered power pole o n the Premises (as depicted in Exhibit "B") for the purpose of providing lighting for the Lot Area. Lessee shall be responsible for costs associated with the lighting use upon receipt of monthly invoices for suc h costs, which Lessor shall forward to Lessee at the address specified herein .

4. Term, The term of this Lease shall be for an initial term of one year commencing wit h the issuance of building permits and ("Commencement Date") may be subject to extension in one yea r increments, not to exceed a total term of three years, subject to annual review and mutual agreement o f the parties. Any extension to which the parties may agree will be subject to City approval procedures .

5. Rent. Rent shall be paid annually in advance as follows :

A. Lessee shall pay to Lessor as annual rent, on or before the Commencement Date of the Lease, the sum of $1 ("Annual Rent") without deduction, setoff, notice or demand provided .

6. Use.

A. Lessee shall use the Premises for the sole purpose of constructing, maintaining , securing and operating a temporary parking lot as overflow parking for scheduled events held at Damon Garcia Sports Fields. Any other use of the Premises or use of Equipment not depicted in Exhibit "B," is not authorized and shall constitute a breach of this Lease . Lessee shall have first priority of use, but shall permit reasonable use of the Lot Area by Lessor, upon request made at least two business days i n advance, and on such dates and at such times as may be accommodated by Lessee's event schedule .

B. Lessee shall provide for supervision of the Lot Area by a lot attendant or securit y staff during use of the Premises associated with Lessee's scheduled events .

C. Lessee must obtain all permits and approvals necessary to construct, maintain , secure and operate the Lot Improvements. Lessor shall reasonably cooperate (at no expense to Lessor ) with Lessee in connection with Lessee's efforts to obtain all such permits and approvals ; provided , however, Lessor shall not be obligated to apply for any permits or approvals with Lessee . Construction o f Lessee's Lot Improvements shall be at Lessee's sole expense . Further, Lessee shall maintain those

ATTACHMENT .
portions of the Premises subject to its use free from hazards or risk to the public health, safety an d welfare.

D. At all times throughout the term of this Lease, Lessee's use of the Premises shal l be in conformance with, and subject to all conditions of, any and all discretionary permits and approval s in effect.

E. In the event Lessee is unable to obtain any necessary permit or other approval i n order to operate or construct the Lot Improvements, either party may terminate this Lease as provide d herein, upon thirty (30) days prior written notice .

7. Nondiscrimination . Subject to applicable laws, rules, and regulations, Lessee shall no t discriminate against any person or group on the basis of age, sex, sexual orientation, medical condition, marital status, race, religion, creed, ancestry, national origin, disability, or handicap .

8. Maintenance .

A. Lessee shall, at Lessee's sole cost and to the satisfaction of Lessor, maintain the Lo t Improvements and Equipment, as depicted in Exhibit "B," in good condition, free of weeds, noxiou s plants and wild growth, in substantial repair, in a safe and sanitary condition, and in compliance with al l applicable laws and regulations and shall promptly repair any damage caused by Lessee . If Lessee fails to maintain any portion of the Premises as required herein, Lessor may notify Lessee of said failure . If Lessee fails to correct the situation within thirty (30) days after notice or such longer period as may be established by Lessor, Lessor may make the necessary correction and the cost thereof, including but no t limited to the cost of administration, and labor, materials, equipment, shall be paid by Lessee within thirt y (30) days after receipt of a statement of said cost from Lessor. If said statement is not timely paid, Lesso r may, at its option, choose any remedy available herein or by law, including the termination of this Lease .

B. Lessor shall have no duty to maintain or repair the Lot Area or Lot Improvements, except that Lessor shall bear the expense of any damage to the Lot Area and/or Lo t Improvements caused by Lessor's use or use by parties authorized by Lessor .

9. Hold Harmless and Indemnification: Lessee agrees to defend, indemnify, protect an d hold Lessor, its agents, officers and employees harmless from and against any and all claims asserted o r

ATTACHMENT
liability established for damages or injuries to any person or property, which arise from, relate to or ar e connected with or are caused or claimed to be caused by the acts or omissions of Lessee, its agents , officers, employees, or authorized parties in the design, construction, use, operation or maintenance of th e Premises, Lot Area, Lot Improvements or Equipment . Lessee shall assume, in addition, all expenses o f investigating and defending against same, including reasonable attorney's fees, of any kind or natur e whatsoever; provided, however, that the Lessee's duty to indemnify and hold harmless shall not includ e any claims or liability arising from the established sole negligence or willful misconduct of the Lessor, its agents, officers or employees.

Lessor agrees to defend, indemnify, protect and hold Lessee, its agents, officers and employee s harmless from and against any and all claims asserted or liability established for damages or injuries t o any person or property, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Lessor, its agents, officers, employees or authorized parties related to Lessor' s use or occupation of the Premises, Lot Area, Lot Improvements or Equipment . Lessor shall assume, in addition, all expenses of investigating and defending against same, including reasonable attorney's fees , of any kind or nature whatsoever; provided, however, that the Lessor's duty to indemnify and hol d harmless shall not include any claims or liability arising from the established sole negligence or willfu l misconduct of the Lessee, its agents, officers or employees .

10. Lessee Insurance. Concurrent with the execution of this Lease, Lessee shall provid e Lessor with proof of the following insurance coverages:

A. Comprehensive General Liability insurance with a combined single limit of at least One Million Dollars ($1,000,000) for each occurrence for bodily injury, personal injury and propert y damage . Lessor, its officials, employees and agents shall be covered as additional insureds with respec t to liability arising from activities within the scope of this agreement performed or authorized by or o n behalf of Lessee . Said insurance shall be primary and non-contributory insurance with respect to Lessor, its officers, employees, agents and representatives.

B. Automobile Liability : $1,000,000 per accident for bodily injury and propert y damage . Lessor, its officials, employees and agents shall be covered as additional insureds with respect to

ATTACHMENT
liability arising from activities within the scope of this agreement performed or authorized by or on behal f of Lessee . Said insurance shall be primary and non-contributory insurance with respect to Lessor, it s officers, employees, agents and representatives.

C. Workers' Compensation insurance as required by the State of California .

D. Upon the execution of this Lease, Lessee shall deliver to Lessor certificates o f insurance with original endorsements evidencing the coverage required by this Lease .

E. The procuring of insurance shall not be construed as a limitation on Lessee' s liability or as full performance on Lessee's part of the indemnification provision of this Lease . Lessee understands and agrees that, notwithstanding any insurance, Lessee's obligation to defend and indemnify Lessor, its officials and employees hereunder is for the full amount of any damage, loss cost or expense .

F Any modification or waiver of these insurance requirements shall only be made with the written approval of the Lessor's Risk Manager or designee . 11 . Lessor Insurance : Concurrent with the execution of this Lease, or prior to any Lessor or Lessor-authorized use of the Lot Improvements, Lessor shall provide Lessee with proof of th e following insurance coverages:

A. Comprehensive General Liability insurance with a combined single limit of a t least One Million Dollars ($1,000,000) for each occurrence for bodily injury, personal injury and propert y damage . Lessee, its officials, employees and agents shall be covered as additional insureds with respec t to liability arising from activities within the scope of this agreement performed or authorized by or o n behalf of Lessor. Said insurance shall be primary and non-contributory with respect to Lessee, it s officers, employees, agents and representatives.

B. Automobile Liability : $1,000,000 per accident for bodily injury and propert y damage . Lessee, its officials, employees and agents shall be covered as additional insureds with respect t o liability arising from activities performed or authorized by or on behalf of Lessor . Lessee, its officials, employees and agents shall be covered as additional insureds with respect to liability arising fro m activities within the scope of this agreement performed or authorized by or on behalf of Lessor. Said

ATTACHMENT
insurance shall be primary and non-contributory with respect to Lessee, its officers, employees, agent s and representatives.

C. Workers' Compensation insurance as required by the State of California .

D. Upon the execution of this Lease or prior to any Lessor or Lessor-authorized us e of the Lot Improvements, Lessor shall deliver to Lessee certificates of insurance with origina l endorsements evidencing the coverage required by this Lease.

E. The procuring of insurance shall not be construed as a limitation on Lessor' s liability or as full performance on Lessor's part of the indemnification provision of this Lease . Lessor understands and agrees that, notwithstanding any insurance, Lessor's obligation to defend and indemnify Lessee, its officials and employees hereunder is for the full amount of any damage, loss cost or expense .

F. Any modification or waiver of these insurance requirements shall only be mad e with the written approval of the Lessee's Risk Manager or designee .

12. Removal of Improvements. On the expiration or sooner termination of this Lease, or at such time as Lessee procures permanent overflow parking accommodations, Lessee, at Lessee's sole cost , shall remove all Lot Improvements erected on the Premises by Lessee following notice of its intention t o do so to Lessor and by removing same within forty-five (45) days after expiration or sooner terminatio n of this Lease. Lessee may elect not to remove the Lot Improvements only upon written authorization b y Lessor. Should Lessee fail to obtain such written authorization, Lessor may treat any such improvement s as abandoned if Lessee fails to timely remove them and, in such event, (a) Lessor shall be deemed owne r of them without accounting to Lessee, or (b) Lessor may cause their removal at Lessee's cost .

13. Notice. Any notice required hereunder shall be in writing and personally delivered o r deposited in the U .S. Postal Service, registered or certified, return receipt, postage prepaid, to the addres s of the respective parties set forth below:

LESSOR: LESSEE:

SESLOC Federal Credit Union Parks and Recreation Director Post Office Box 5360 City of San Luis Obispo
San Luis Obispo, CA 93403-5360 1341 Nipomo Street
San Luis Obispo, CA 93401

ATTACHMENT .

Notice shall be deemed effective on the date shown on the return receipt or on the date personal deliver y is made, whichever first occurs. If delivery is refused, the date of deposit of the copy in the mail shall b e deemed the date of notice. Change of address shall be given as provided herein for notices .

14. Right of Entry. In the event of an emergency which poses an immediate threat of harm or damage to persons or property, Lessor may enter the Premises and take such actions as are required t o protect persons or property from such immediate threat of harm or damage, provided that promptly afte r such emergency entry into the Premises (and in no event later than twenty-four (24) hours) Lessor give s telephonic and written notice to Lessee of Lessor's entry into the Premises .

15. Partial Invalidity . If any term, covenant or condition of this Lease is held by a court o f competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shal l remain in full force and effect .

16. Successors in Interest. This Lease shall be binding on and inure to the benefit of th e parties and their successors, heirs, personal representatives, approved transferees and assignees, and all o f the parties hereto shall be jointly and severally liable hereunder.

17. Attorney's Fees. In any action or proceeding relating to this Lease, the prevailing part y shall be entitled to its costs, including reasonable attorney's fees and court costs .

18. Integration and Amendments. This Lease represents and constitutes the entire understanding between the parties and supercedes all other agreements and communication between th e parties, oral or written, concerning the subject matter herein . This Lease shall not be modified except in writing duly signed by the parties and referring to this Lease .

ATTACHMEN T

19. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California .

20. Captions. The various headings and numbers herein and the grouping of the terms hereo f into separate sections, paragraphs and clauses are for convenience only and shall not be considered a par t hereof, and shall have no effect on the construction or interpretation of this Lease .

21. Lessor's Representation of Authority. Lessor represents that it has title to the Premise s and full authority to execute this Lease and to grant the easements and access to the Premises . Lessor further represents that there are no undisclosed liens, judgments, impediments or exceptions of title on th e Premises that would affect this Lease .

IN WITNESS WHEREOF, the parties have executed this Lease with all of the formalitie s required by law as of the date first above written.

LESSOR: LESSEE:

SESLOC FEDERAL CREDIT UNION
By:

ATTEST:

CITY OF SAN LUIS OBISPO ,
a Municipal Corporatio n
By:

Dave Romero, Mayor
By:

Audrey Hooper, City Clerk
APPROVED AS TO FORM :

X
W
H
p

DAMON-GARCIA SPORTS COMPLEX PARKING LEASE AGREEMENT

ON SESLOC FEDERAL CREDIT UNION PROPERTY
This Agreement made and entered into on _______________________________ by and between the CITY OF SAN LUIS OF SAN LUIS OBISPO, hereinafter “CITY,” and SESLOC FEDERAL CREDIT UNION, a member-owned financial institution hereinafter referred to as “SESLOC”.

RECITALS
WHEREAS, SESLOC is the owner of the property located at 3807 and 3855 Broad St, San Luis Obispo, California (hereinafter, “PREMISES”); and
WHEREAS, the CITY has requested continued permission to use the PREMISES as a parking lot for CITY-owned sport complex; and
WHEREAS, SESLOC is willing to continue to lease rights of PREMISES to CITY for that purpose upon the terms and conditions set forth in this Agreement (or “Lease.”)

1. TERM
The term of this agreement shall be for a period of five (5) years from the date entered and shall terminate on April 30, 2029 (the end of that contract year). The terms of the Agreement may be extended for five (5) or ten (10) years upon mutual agreement. As set forth more fully in section 3.4, the CITY will use the PREMISES during the season which begins on August 1st each year and ends on April 30th the following year (each such period referred to as a “contract year.”) This lease is subject to the terms, covenants and conditions hereinafter set forth and SESLOC covenants, as a material part of the consideration for this lease, to keep and perform each and every term, covenant and condition of lease.

2. FEES
For the use of PREMISES as outlined in this agreement, CITY agrees to pay SESLOC the sum of tenthousand dollars ($10,000) (the “annual sum”) each contract year by July 31 of each year. This amount is subject to prorated reimbursement as set forth in Section 9.0 of this Agreement. For the period of November 5th 2023 to April 30th 2024, which is the remainder of the current season, CITY agrees to pay SESLOC the prorated sum of six thousand five hundred dollars ($6,500) upon execution of this lease.

3. USE APPLICATION

3.1 PREMISES. SESLOC is the owner of the parcels of land located in the City of San Luis Obispo, County of San Luis Obispo, State of California, located at 3807 and 3855 Broad St. SESLOC hereby agrees to lease to CITY parking lot rights from SESLOC Credit Union parking spaces in PREMISES to augment the overflow parking needs of the Damon-Garcia Sports Complex as noted under Exhibit A. As noted under Exhibit A, and by this reference made a part hereof, designates the PREMISES included in this lease, which is further detailed by a North lot, comprised of fifty-seven (57) parking spaces and a South Lot, comprised of one-hundred and five (105) spaces. Overflow parking is permitted in the lots as described in Section 3.1.1 and 3.1.2.

3.1.1 North Lot
• Monday through Friday: 6:00 PM – 10:00 PM, fifty-seven (57) parking spaces. • Saturdays and Sundays if overflow predicted to be fifty (50) vehicles or more (“high use event”):
• 7:00 AM – 5:00 PM, Forty-one (41) parking spaces west of the ATM kiosk.

Remaining nine (9) open, non-ADA/ATM stalls closest to the branch building to be reserved for SESLOC employees or vendors working onsite, and SESLOC members while using the ATMs. Seven (7) ADA stalls may be used for overflow parking, subject to section 3.6.
• 5:00 PM – 10:00 PM, fifty-seven (57) parking spaces.
• Saturdays and Sundays if overflow predicted to be less than fifty (50) vehicles: 7:00 AM – 10:00 PM, fifty-seven (57) parking spaces.
• Two (2) ATM parking spaces marked exclusively for SESLOC ATM parking twenty-four (24) hours per day, seven (7) days a week are excluded from available parking, and not included in above count.

3.1.2 South Lot
• One-hundred and five (105) parking spaces
• Monday through Friday: 6:00 PM – 10:00 PM
• Saturday and Sunday: 7:00 AM – 10:00 PM

3.1.3 SESLOC will communicate with CITY Point of Contact as noted in Section 8 if use of PREMISES will be restricted due to maintenance or unavailable uses as circumstances arise.

3.2 CITY shall use the PREMISES for the sole purpose of maintaining, securing and operating a parking lot as overflow parking for permitted uses, scheduled by CITY Parks and Recreation department, held at Damon-Garcia Sports Complex. Overflow parking shall be exclusively used in association with permitted uses that are large scale in nature and cannot be accommodated by available on-site parking at the Damon-Garcia Sports Complex.

3.3 CITY will provide SESLOC a bi-annual schedule of events scheduled for the use of Damon-Garcia Sports Complex.

3.4 CITY completes field restoration of Damon-Garcia Complex annually typically during the months of May through July, a ten (10) to twelve (12) week period. During the months of May through July, CITY will not require use of PREMISES for overflow parking. Any overflow parking use requested within this period will be considered by SESLOC on an ad hoc basis and will not be unreasonably refused.

3.5 Consistent with CITY ordinances, no overnight parking will be permitted.

3.6 Specific restrictions on the PREMISES prohibit large RV’s that require multiple parking spaces, tailgating, use of barbeques, loud noises, consuming alcoholic beverages, smoking, amplified music, and bringing hazardous substances on the PREMISES. Use of American Disabilities Act (ADA) parking spaces to follow applicable laws.

3.7 SESLOC acknowledges that its regular business hours do not conflict with the CITY’s schedule of use set forth in this agreement and therefore agrees that, during scheduled permitted DamonGarcia Uses where overflow parking is required as described in herein, SESLOC will not schedule events, meetings, or other uses of the property which would reduce the number of available parking spaces described in 3.1.1 and 3.1.2 for CITY’S use as set forth in this agreement, subject to 3.1.3.

3.8 Should the property to the south of SESLOC be developed during the time of this lease, the following shall apply:

3.8.1 Ten (10) of the South Lot parking spaces, each of which is along the private boulevard, are temporarily permitted and must be removed when the boulevard is extended through to Tank Farm Rd. This will reduce the number of parking spaces in the South Lot to ninety-five (95).

3.8.2 During construction, the boulevard and the entrances from it to one or both lots may be closed. All reasonable efforts will be made to keep the lots open and available.

3.8.3 During and after construction of the boulevard extension, no parking will be allowed along the boulevard.

3.8.4 See 4.1.1.

4. PARKING ENFORCEMENT REQUIREMENTS

4.1 CITY shall provide at CITY’s expense, or through field participant groups, staffed parking lot enforcement to protect the North and South Lots for SESLOC’s and SESLOC’s tenant’s exclusive use for business subject to the location and time limitations set forth below during scheduled permitted Damon-Garcia uses where overflow parking is required as described in Section 3.

4.1.1 Monday through Friday: 3:30 PM – 6:00 PM. CITY will station parking enforcement staff at the entrances of PREMISES on Industrial Way and Broad Street and monitor the exit of PREMISES on Industrial Way to redirect Damon-Garcia permitted use groups to CITY parking lot. CITY will place No Parking Signs at ATM parking spaces at the conclusion of shift. City will remove No Parking Signs at the end of the event Monday through Thursday; signs placed on Friday may remain in place until the end of scheduled weekend overflow use.
• Should the private boulevard be extended to Tank Farm Rd. during the term of this lease, CITY will station parking enforcement staff and signage, or barriers as needed at the entrances to the South and North Lots from the Boulevard as necessary to prevent parking in those areas, Monday through Friday: 3:30 PM – 6:00 PM.
• Damon-Garcia permitted use groups may use the North and South lots as stated in sections 3.1.1. and 3.1.2 after 6:00pm on weeknights.

4.1.2 Saturdays and Sundays when overflow of fifty (50) or more vehicles is predicted (“high use event”): 6:00 AM – 5:00 PM. CITY will station parking enforcement staff and signage or barriers as needed in the North Lot of PREMISES from the ATM kiosk east to the branch building, to protect both the two (2) ATM parking stalls and the nine (9) non-ADA parking stalls from overflow use. CITY will also monitor the exit to PREMISES off Industrial Way, to redirect Damon-Garcia permitted use groups to SESLOC South Lot and the allowable stalls in the western half of the North Lot, or CITY parking lot. CITY will place No Parking Signs at ATM parking spaces when the entire North Lot opens for parking; signs may remain in place until the end of scheduled weekend overflow use.

4.2 After first documented occurrence where SESLOC member parking is impacted during business hours or at the ATM spaces, CITY and SESLOC will meet to review and discuss further mitigation efforts. If the CITY has not adequately performed parking lot security on more than three (3) occasions without significant efforts by the City to mitigate concerns, SESLOC has the option to take over management of parking services for scheduled Damon-Garcia events requiring overflow parking for the remainder of the season (ending on April 30th of each year) and invoice the CITY for direct costs on a monthly basis plus a fifteen percent (15%) administrative charge for SESLOC’s management of parking services.

4.2.1 CITY and SESLOC shall meet each contract year during the Damon-Garcia Sports Complex annual restoration period as defined in Section 3.4 to review and reassess the expectations to ensure proper enforcement for the following contract year. Parking enforcement shall be staffed by CITY at the commencement of each contract year and continue unless and until SESLOC assumes management of parking enforcement during a given contract year pursuant to Section 4.2.

4.3 CITY shall provide at CITY’s expense, or through field participant groups, parking lot cleanup after permitted uses and will empty receptacles of trash by the end of any weekend on which the parking spaces were used by a scheduled permitted Damon-Garcia event.

4.3.1 After the first documented occurrence (photographs provided) of trash being left behind on SESLOC’s property, City and SESLOC will meet to discuss further mitigation efforts.

After three (3) documented incidents of trash being left behind and affecting the appearance of SELOC PREMISES, SESLOC has the option to assume responsibility for trash maintenance after scheduled Damon-Garcia event requiring overflow parking and invoice the CITY for direct costs on a monthly basis plus a fifteen percent (15%) administrative charge for SESLOC’s management of trash services.

5. MANAGEMENT OF PREMISES
SESLOC shall maintain in good and lighted condition the parking spaces in North and South lots made available to CITY. Parking lot lighting on PREMISES will be lit daily till 10:00 PM. CITY will repair any damage to the PREMISES beyond ordinary wear and tear that was caused during CITY use.

6. ALTERATION
CITY is not authorized to make any other alterations to PREMISES without prior written authorization from the SESLOC.

7. INSURANCE AND INDEMNIFICATION

7.1 Indemnification. CITY agrees to defend, indemnify, protect and hold SESLOC, its agents, offices and employees harmless from and against any and all claims asserted, or liability established for damages or injuries to any person or property, arising out of, involving, or in connection with the use and/or occupancy of the PREMISES by CITY, its agents, officers, employees, authorized or unauthorized parties. CITY shall assume, in addition, all expenses of investigating and defending against same including reasonable attorney’s fees, or any kind or nature whatsoever. CITY’s duty to indemnify and hold harmless shall not include claims for the gross negligence or willful misconduct of SESLOC, its agents, offices or employees.

Should SESLOC assume management of parking enforcement pursuant to Section 4.2 of this Agreement, SESLOC agrees to, for the duration of said management, defend, indemnify, protect and hold CITY, its agents, offices and employees harmless from and against any and all claims asserted, or liability established for damages or injuries to any person or property, arising out of, involving, or in connection with the use and/or occupancy of the PREMISES by SESLOC, its agents, officers, employees, authorized or unauthorized parties. SESLOC shall assume, in addition, all expenses of investigating and defending against same including reasonable attorney’s fees, or any kind or nature whatsoever. SESLOC’s duty to indemnify and hold harmless set forth herein shall not include claims for the gross negligence or willful misconduct of CITY, its agents, offices or employees.

CITY Insurance. Prior to the use of PREMISES annually in August, CITY shall provide SESLOC with proof of the following insurance coverage and maintain the following coverage at all times during the term of the least, and shall upon request of SESLOC provide proof of insurance:

7.1.1. Comprehensive General Liability Insurance with a combined single limit of at least Five Million dollars ($5,000,000) for each occurrence for bodily injury, personal injury and property damage. SESLOC, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities within the scope of the agreement performed or authorized by or on behalf of CITY. Said insurance shall be primary and noncontributory insurance with respect to SESLOC, its officers, employees, agents and representatives.

7.1.2. Automobile Liability: Five Million dollars ($5,000,000) per accident for bodily injury and property damage. SESLOC, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities within the scope of the agreement performed or authorized by or on behalf of CITY. Said insurance shall be primary and non-contributory insurance with respect to SESLOC, its officers, employees, agents and representatives.

7.1.3. Workers’ Compensation insurance as required by the State of California.

7.1.4. Upon execution of this Lease, CITY shall deliver to SESLOC certificates of insurance with original endorsements evidencing the coverage required by this Lease.

7.1.5. The procuring of insurance shall not be construed as a limitation of CITY’s liability or as full performance on CITY’s part of the indemnification provision of this Lease. CITY understands and agrees that, notwithstanding any insurance, CITY’s obligation to defend and indemnify SESLOC, its officials and employees hereunder is for the full amount of any damage, loss cost or expense.

7.1.6. Any modifications or waiver of these insurance requirements shall only be made with the written approval of the SESLOC risk manager or designee.

SESLOC Insurance. Prior to the use of PREMISES annually in August, SESLOC shall provide CITY with proof of the following insurance coverage and maintain the following coverage at all times during the term of the least, and shall upon request of CITY provide proof of insurance:

7.1.7. Comprehensive General Liability Insurance with a combined single limit of at least Five Million dollars ($5,000,000) for each occurrence for bodily injury, personal injury and property damage. CITY, its officials, employees and agents shall be covered as additional

insureds with respect to liability arising from activities within the scope of the agreement performed or authorized by or on behalf of SESLOC. Said insurance shall be primary and noncontributory insurance with respect to CITY, its officers, employees, agents and representatives.

7.1.8. Automobile Liability: Five Million dollars ($5,000,000) per accident for bodily injury and property damage. CITY, its officials, employees and agents shall be covered as additional insureds with respect to liability arising from activities within the scope of the agreement performed or authorized by or on behalf of SESLOC. Said insurance shall be primary and non-contributory insurance with respect to CITY, its officers, employees, agents and representatives.

7.1.9. Workers’ Compensation insurance as required by the State of California.

7.1.10. Upon execution of this Lease, SESLOC shall deliver to CITY certificates of insurance with original endorsements evidencing the coverage required by this Lease.

7.1.11. The procuring of insurance shall not be construed as a limitation of SESLOC’s liability or as full performance on SESLOC’s part of the indemnification provision of this Lease.

SESLOC understands and agrees that, notwithstanding any insurance, SESLOC’s obligation to defend and indemnify CITY, its officials and employees hereunder is for the full amount of any damage, loss cost or expense.

7.1.12. Any modifications or waiver of these insurance requirements shall only be made with the written approval of the CITY risk manager or designee.

8. COMMUNICATIONS

8.1 CITY Point of Contact. The Recreation Manager is the CITY representative that SESLOC shall contact for all issues related to the use of PREMISES and the operation of this Agreement. All contacts must be in writing (for this purpose, email communication is acceptable.) If the Recreation Manager cannot be reached, or for escalation, the Parks and Recreation Director may be contacted.

8.2 SESLOC Point of Contact. Vice President, Administration is the SESLOC representative the CITY shall contact for all issues related to PREMISES and operation of this Agreement. If a timely response is not received, CITY shall contact [email protected], and may contact the President/CEO for escalation. All contacts must be in writing, including email.

8.3 Written Notice. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows:

CITY:

Parks & Recreation Department
Attn: Greg Avakian, Director and
Devin Hyfield, Recreation Manager
1341 Nipomo Street
San Luis Obispo, CA 93401
[email protected]
[email protected]
SESLOC:

SESLOC Federal Credit Union
Attn: Colleen Murphy, Vice President,
Administration
P.O. Box 5360
San Luis Obispo, CA 93403
[email protected]

9. TERMINATION
Either party may terminate the Agreement for convenience, provided 90 days written notice is given.

The Agreement may be terminated by either party for cause, provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refusesto cure the alleged breach within 10 days, or to make substantial progress toward cure to the satisfaction of the parting demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein. If the Agreement is terminated, the CITY shall be reimbursed by SESLOC a prorated share of the annual sum that reflects the remainder of the contract year the CITY will not be permitted to use the PREMISES as set forth in this Agreement.

10. AUTHORITY TO EXECUTE AGREEMENT
Both CITY and SESLOC do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

11. COMPLIANCE WITH LAW
The CITY and SESLOC shall keep him/her/itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. SESLOC shall at all times observe and comply with all such laws and regulations. The CITY, and its officers and employees, shall not be liable at law or in equity occasioned by failure of SESLOC to comply with this Section.

12. GOVERNING LAW
The CITY and SESLOC understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in San Luis Obispo County Superior Court, regardless of other courts with jurisdiction over the matter.

13. ASSIGNMENT
The CITY and SESLOC shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the CITY and SESLOC.

14. NON-DISCRIMINATION

14.1 There shall be no discrimination against or segregation of any person or group of persons on account of race, religion, sex, sexual orientation, national origin or ancestry, age, physical, mental or economic status in the operation, lease, use, occupancy, tenure or enjoyment of the PREMISES or the improvements thereon, or any part thereof, and SESLOC, or any person claiming under or through it, shall not establish or permit any such practice of discrimination or segregation with reference to the selection, location, number, use or occupancy of employees, contractors, subcontractors, laborers, or material men, tenants, lessees, subtenants, sublessees, invitees or vendees of the PREMISES or the improvements thereon, or any part thereof.

14.2 SESLOC shall not restrict access or use of the PERMISES or the improvements thereon, or any portion thereof, on the basis of race, religion, sex, sexual orientation, national origin or ancestry, age, physical, mental, or economic status of any person.

15. PARTIAL INVALIDITY
If any term, covenant, or condition of this Lease is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect.

16. SUCCESSORS IN INTEREST
This Lease shall be binding on and inure to the benefit of the parties and their successors, heirs, personal representatives, approved transferees and assignees, and all of the parties hereto shall be jointly and severally liable hereunder.

17. ATTORNEY’S FEES
In any action of proceeding relating to this Lease, the prevailing party shall be entitled to its costs, including reasonable attorney’s fees and court costs.

18. INTEGRATION AND AMENDMENTS
This Lease represents and constitutes the entire understanding between the parties and supersedes all other agreements and communication between the parties, oral or written, concerning the subject matter herein. This Lease shall not be modified except in writing duly signed by the parties and referring to this Lease.

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

CITY OF SAN LUIS OBISPO, a Municipal Corporation SESLOC FEDERAL CREDIT UNION By:______________________________ By:_______________________________ Derek Johnson, City Manager Geri LaChance, President/CE ATTEST:

By: ____________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:

By: _______
J. Christine Dietrick, City Attorney

Item 5e
Department: Fire
Cost Center: 8506, 8599
For Agenda of: 11/7/2023
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: James Blattler, Emergency Manager & Nicole Vert, Business Analyst SUBJECT: AUTHORIZE THE FIRE DEPARTMENT TO APPLY FOR PUBLIC SAFETY GRANTS

RECOMMENDATION

1. Authorize the Fire Department to apply to the 2023 Ready, Set, Go! Program’s Fuels Reduction Project Grant Funding for a grant to conduct fuel reduction work along the Islay Creek; and

2. Authorize the Fire Department to apply to the San Luis Obispo County Off-Highway Vehicle Grant Program to replace UTV-2;

3. 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 approval is required for all grant applications in excess of $5,000. Council may delegate receipt and contract execution to the City Manager.

The work conducted under the grants is in line with the City’s Major City Goal of Climate Action, Open Space, and Sustainable Transportation by proactively addressing the climate crisis through fire and flood hazard mitigation efforts and improved resilience and improved accessibility to open space areas, maintaining the ability to provide rapid emergency services in remote areas.

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. Recently, two grant opportunities were identified, which address current needs for the city: the 2023 Ready, Set, Go! Program Fuels Reduction Grant and the San Luis Obispo County OffHighway Vehicle (OHV) Grant Program.

Item 5e
Background
Off-Highway Vehicle Grant
Off Highway Motor Vehicle’s (OHMV) operating on publicly accessible land in California must pay registration fees to the state. A portion of the fees collected are distributed to counties. The San Luis Obispo Board of Supervisors has approved a competitive grant program for the distribution of sixty percent (60%) of the County’s annual receipts of OffHighway Vehicle In-Lieu Fees to other governmental agencies and non-profit organizations for several eligible uses, including law enforcement entities and related equipment.

The City of San Luis Obispo is home to some of the busiest open space areas in the county. Over 200 people enjoy the mountain bike, hiking and off-highway trails every day.

These areas are difficult to reach by traditional motor vehicles and sometimes only accessible on foot or by helicopter. Routinely there are incidents where individuals become injured, trapped, or lost and require prompt life saving measures and need extrication from these limited access areas where every minute is critical. The department is requesting grant funds to replace an aging UTV. The UTV has increased the ability to access these difficult areas and reach critical patients quickly, however, as a result of the frequent use, repairs on the UTV are increasing in both cost and time out of service.

Fire Fuel Reduction Grant
The Ready, Set, Go! (RSG) Program is managed by the International Association of Fire Chief’s (AIFC) and has funding available through the USDA Forest Service with the goal to facilitate on-the-ground fuels reduction projects in communities across the country to assist them with implementing or expanding community fuels reduction projects in their jurisdictions. A maximum of $20,000 per agency is available and requires a minimum inkind match of 25% of the award total.

Staff is scoping out a fuel reduction project aligned with the grant program’s goals and have identified Islay Creek in the southeast portion of the City. The project scoping includes the removal of dead and downed vegetation, hazard trees, and vegetation categorized as “ladder fuels” which can carry fire from the understory to tree canopies where fire can spread faster and produce more significant ember cast. This area is a high priority due to its proximity to the Cal Fire designated Very High Fire Severity Zone and transverses residential neighborhoods.

Previous Council or Advisory Body Action
On January 3, 2017, Council Authorized the Fire Department to submit a grant application to San Luis Obispo County Off Highway Vehicle grant program.

Public Engagement
This item is on the agenda for the November 14, 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 5e

CONCURRENCE
The Parks & Recreation Department and Office of Sustainability and Natural Resources concur with the report and proposed application.

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: Yes Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:

Off-Highway Vehicle Grant
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $0 $ $500.00
State
Federal
Fees
Other:

Total $0 $500.00
The OHV grant program does not require any City matching funds. The department has requested funds to fully fund a new UTV plus necessary accompaniments for use as a rescue vehicle. If the grant is awarded to the City, the department estimates costs of $500.00 annually for ongoing maintenance which can be absorbed by the mechanic’s current budget, as repairs are already budgeted and a new UTV would require fewer repairs than the current UTV.

Item 5e
Fire Fuel Reduction Grant
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $6,750 $0 $ $0
State
Federal
Fees
Other: RSG! $0
Total $6,750 $ $0
The RSG! Program Fuels Reduction Funding 2023 does not require any City hardmatching funds, but rather a 25% in-kind match which staff recommends meeting with staff time dedicated towards the project. The in-kind match can be met through appropriated operating budgets. Awards are expected to be announced in Winter 2023/2024. If the project is not funded by the Ready, Set, Go! Program, the department will look for other external funding opportunities to accomplish unfunded climate-related wildfire & disaster prevention and preparedness projects.

ALTERNATIVES
Council could decide not to pursue the grant monies or approve only one grant application. This action is not recommended by staff 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.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 13, 2023
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5F & 5G – 2024 APPOINTMENT OF VICE MAYOR AND COUNCIL

LIAISON SUBCOMMITTEE ASSIGNMENTS
Consent Item 5f, Vice Mayor Appointment for 2024, and Item 5g, Approval of Council Liaison Subcommittee Assignments for 2024, are being continued to the December 5, 2023 City Council meeting.

A revised staff report for Item 5g, Approval of the Council Liaison Subcommittee Assignments for 2024, will be prepared and published as a part of the December 5, 2023 City Council Agenda Packet.

Item 5f
Department: Administration
Cost Center: 1021
For Agenda of: 11/14/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: VICE MAYOR APPOINTMENT FOR 2024

RECOMMENDATION
Appoint Council Member Andy Pease to serve as Vice Mayor for a one-year term commencing on December 1, 2023.

POLICY CONTEXT
This action follows current Council policy, Section 3.2 - Appointment of Vice Mayor of rotating the Vice Mayor position.

DISCUSSION
Section 408 of the City’s Charter requires that the Council elect one of its members to serve in the position of Vice Mayor.

Section 3.2 - Appointment of Vice Mayor of the Council Policies and Procedures Manual provides that the appointment of the Vice Mayor shall be for a one-year term, that the appointment shall be made on a rotational basis, and that the appointment shall go to the next senior member. This practice ensures that each Council Member will have an opportunity to serve as Vice Mayor during their term.

Following the current Council policy of rotating the Vice Mayor position, and consistent with Council practice over the past 10 years, Council Member Pease is the next in line for the opportunity to serve as Vice Mayor. The appointment of Vice Mayor for the prior 10 years has been as follows:

1. Council Member Christianson 2014

2. Council Member Ashbaugh 2015

3. Council Member Carpenter 2016

4. Council Member Rivoire 2017

5. Council Member Christianson 2018

6. Council Member Pease 2019

7. Council Member Gomez 2020

8. Council Member Stewart 2021

9. Council Member Christianson 2022

10.Council Member Jan Marx 2023
Looking to the future, the rotation indicates Council Member Shoresman will serve in 2025.

Item 5f
Public Engagement
There was no public engagement for this action as it is an administrative action. However, the public has the opportunity to provide public comment in writing prior to the meeting or as public comment during the meeting.

ENVIRONMENTAL REVIEW
The California Environment Quality Act (CEQA) does not apply to the recommended action because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
Fiscal Analysis:

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

Total $N/A $ $ $
There are no fiscal impacts associated with this recommendation, as this is an administrative item.

ALTERNATIVES
Council could choose not to appoint Council Member Pease as Vice Mayor. This action is not recommended as this would not follow the Council’s approved Policies and Procedures Manual.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 13, 2023
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5F & 5G – 2024 APPOINTMENT OF VICE MAYOR AND COUNCIL

LIAISON SUBCOMMITTEE ASSIGNMENTS
Consent Item 5f, Vice Mayor Appointment for 2024, and Item 5g, Approval of Council Liaison Subcommittee Assignments for 2024, are being continued to the December 5, 2023 City Council meeting.

A revised staff report for Item 5g, Approval of the Council Liaison Subcommittee Assignments for 2024, will be prepared and published as a part of the December 5, 2023 City Council Agenda Packet.

Item 5g
Department: Administration
Cost Center: 1021
For Agenda of: 11/14/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2024

RECOMMENDATION
Approve the Council Liaison Subcommittee assignments for the 2024 calendar year.

POLICY CONTEXT
Council Policies and Procedures and the Advisory Body Handbook prescribe the method of Council Liaison Subcommittee assignments:

The Mayor and Vice Mayor shall submit recommendations to the full Council rotating nominations for Council Member Subcommittees, thereby ensuring an opportunity for each member to serve as liaison at least once on each advisory body when possible. When terms of office do not allow each member to serve once, members with greatest seniority shall have first right of selection (CP&P 6.5.2, ABH III, C, 6).

Council Policies and Procedures defines the role, purpose and attendance of the Council Liaison as:

Council liaisons do not serve as ex-officio members of the advisory bodies, but rather as a conduit to express the position of the Council and to gain a better understanding of the issues considered by the advisory body. (CP&P

6.1.2) The purpose of the liaison assignment is to facilitate communication between the Council and advisory body. (CP&P 6.1.3) From time to time, attend advisory body meetings for observation purposes only. Liaison members should be sensitive to the fact that they are not participating members of the advisory body but are there rather to create a linkage between the City Council and advisory body. (CP&P 6.1.6)

DISCUSSION
Every year, Council Members submit their list of requested Subcommittee assignments.

Mayor Stewart and Vice Mayor Marx reviewed that information along with the past several years’ appointments and recommend the Council Liaison Subcommittee assignments listed in Attachment A.

Item 5g
As in past years, automatic rotation for all technical and regional committees is not being recommended. The recommended appointments allow for continuity where appropriate as well as permitting Council Members to develop a higher level of expertise for some of the more complex committees.

Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at 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: Yes Budget Year: FY 2023-24
Funding Identified: N/A
Fiscal Analysis:

Funding Sources
Current FY
Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:

Total
There are no new fiscal impacts associated with the Council Liaison Subcommittee assignments.

ALTERNATIVES
Council may decide to forego the recommendations of the Mayor and Vice Mayor and request changes to the Council Liaison Subcommittee assignments.

ATTACHMENT
A - Council Liaison Subcommittee Assignments for 2024

COUNCIL SUBCOMMITTEE ASSIGNMENTS 2024

CITY ADVISORY BODIES
• Interviews & makes recommendations for appointments
to the full Council.
• Facilitates communication between Council and
committees.
2023

CHAIR MEMBER
2024

CHAIR MEMBER
Active Transportation Committee Pease Francis Francis Shoresman Administrative Review Board Shoresman Marx Shoresman Marx Architectural Review Commission Francis Pease Francis Pease Construction Board of Appeals Shoresman Francis Shoresman Francis Citizens’ Revenue Enhancement Oversight
Commission Marx Shoresman Marx Shoresman
Cultural Heritage Committee Marx Francis Marx Francis
Housing Authority
(Mayor by state mandate) Stewart N/A Stewart N/A
Human Relations Commission Stewart Shoresman Stewart Shoresman Investment Oversight Committee
(This is not an advisory committee) Stewart Pease Marx Pease Mass Transportation Committee Francis Shoreman Francis Shoreman Parks & Recreation Commission Shoresman Francis Shoresman Francis Personnel Board Stewart Marx Stewart Marx
Planning Commission Marx Shoresman Marx Shoresman
Promotional Coordinating Committee Francis Pease Francis Pease Tourism Business Improvement District Board Pease Marx Pease Marx Tree Committee Francis Marx Francis Marx

SPECIAL PURPOSE

SUBCOMMITTEES
Serves as liaison representative.
2023

MEMBER ALTERNATE MEMBER ALTERNATE
Cal Poly Campus Planning Committee (Master Plan)
(Quarterly)
Marx Francis Francis Shoresman
City/University
(Mayor/Rotation) (Quarterly) Stewart Rotation Stewart Rotation Downtown Association Board (Monthly) Pease Shoresman Pease Shoresman REACH Stewart Stewart Pease
Mayor’s Advisory Body Quarterly Meeting Stewart Rotation Stewart Rotation Student Community Liaison Committee
(Mayor/Rotation) (Monthly) Stewart Rotation Stewart Rotation

COUNCIL SUBCOMMITTEE ASSIGNMENTS 2024

COUNTY/REGIONAL
Serves as voting representative.
2023

CHAIR MEMBER
2024

MEMBER ALTERNATE
Air Pollution Control District (APCD) (Quarterly) Marx Francis Marx Francis City Selection Committee
(1-2 times per year)
Stewart Marx Stewart Marx
CMC Citizens Advisory Committee (Monthly)
(*2-year term)
Shoresman Pease Shoresman Pease
Community Action Partnership (Monthly) Francis Francis
County Water Resources Advisory Committee
(County Supervisors) (Monthly) Pease Francis Pease Francis County Regional Water Management Group
(RWMG) Pease Francis Pease Shoresman
Homeless Services Oversight Committee Shoresman Stewart Shoresman Stewart Integrated Waste Management Authority (IWMA)
(Monthly)
Marx Pease Marx Pease
Local Agency Formation Commission (LAFCO)
(Liaison Only) (Monthly)
Francis Pease Francis Pease
Nacimiento Water Project Francis Shoresman Francis Shoresman Performing Arts Center Commission
(Mayor/Vice Mayor as alternate) (Quarterly)
Stewart
Johnson
Marx
Hermann
Stewart
Johnson
Marx
Hermann
San Luis Obispo Council of Governments
(SLOCOG) (Monthly)
Pease Francis Pease Francis
San Luis Obispo Regional Transit Authority
(SLORTA) (Monthly)
Pease Francis Pease Francis
San Luis Obispo Valley Basin Groundwater
Sustainability Agency (GSA) Pease Floyd Pease Floyd
Visit SLO County Advisory Committee Stewart
Johnson
Marx
Hermann
Stewart
Johnson
Marx
Hermann
Whale Rock Commission
(Mayor/Vice Mayor serves as alternate) (June & as needed) Stewart Marx Stewart Pease
Zone 9 Advisory Committee (Monthly) Shoresman Francis Shoresman Francis

AD HOC SUBCOMMITTEE MEMBER ALTERNATE MEMBER ALTERNATE
Airport Land Use Marx Stewart Marx Stewart
SLO Climate Coalition Liaison Shoresman Marx Shoresman Marx Central Coast Clean Energy (3CE) – Policy
Board Director Marx Stewart Marx Stewart

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 14, 2023
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6A – FISCAL YEAR 2023-24 1ST QUARTER BUDGET REVIEW Staff received the following questions, regarding use of economic development funds in the FY 2023-24 First Quarter Budget Review. The questions are below with staff’s response shown in italics:
1) There was originally $2,000,000 set aside from LRM back in 2020 for Economic Development. However, that funding was never used as planned, except for a portion of it. So, now, we have the following remaining:

How did we get from the $2,000,000 originally set aside from the Local Revenue Measure to the $1.416,441 noted as the starting point for this table above?
Response: The first $300,000 was used for TI permits through the TIPP-Fast 2.0 permit program in FY 2020-21 ($50,000) and FY 2021-22 ($250,000). The remainder was allocated in FY 2022-23, as per the below table.

Fiscal Year 2023-24 1st Quarter Budget Review Page 2
2) How was the $792,000 arrived upon for FY 2023-24 and FY 2024-25? Response: The funding was allocated as one time funding for various Economic Development Programs as outlined in the following table from the 2023-25 Financial Plan:
3) What is the proposed $25K targeted for (in addition to the $125K for a doubling of the buy local bonus program)?
Response: The additional $25,000 in funding is being requested to provide expanded support for activations, promotions, and other community benefit programs to support economic development during the traditionally slow season in February, March and April of 2024.
4) Why not allocate the other $474,441, rather than continue to carry it over for additional years?
Response: The intention of staff is to keep this as unallocated fund balance in order to address future economic development related issues as they arise at which point staff will bring the recommendations to the City Council for direction and approval. Should Council wish to appropriate these funds to a specific economic development program or project staff would recommend that to occur as of the Mid-Year Budget update on February 6, 2024.

Fiscal Year 2023-24 1st Quarter Budget Review Page 3
5) In December 2020 Council allocated $3.4 million of FY 2018-19 General Fund undesignated fund balance to economic development efforts and homeless services. Can a portion of the remaining funding be used for homeless services?
Response: The $3.4 million was allocated as shown in the table below, with $300,000 of the total amount identified for homeless services. The $300,000 for homeless services has been expended, with the remaining balance available for economic development activities, per Council’s direction. The recommendation tonight relates only to the $2,000,000 that was initially allocated for tenant improvement grants and subsequently held for economic development efforts.

Use Amount
Create grant funding opportunities for tenant improvements (TIs) $2,000,000 Expand the SLO City small business relief grant program $500,000 Increase efforts to support downtown vitality $425,000
Implement an economic development shop local incentive $200,000 Homeless services support and coordination $300,000
Total $3,425,000

Item 6a
Department: Finance
Cost Center: 2002
For Agenda of: 11/14/2023
Placement: Business
Estimated Time: 20 minutes
FROM: Emily Jackson, Finance Director
Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: FISCAL YEAR 2023-24 1ST QUARTER BUDGET REVIEW

RECOMMENDATION

1. Receive and file the Fiscal Year 2023-24 First Quarter Budget report; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the Fiscal Year 2023-24 Budget” to appropriate $150,000 of the General Fund Assigned Fund Balance for economic development efforts.

POLICY CONTEXT
Development and presentation of the quarterly reports conforms with the following adopted Budget Policies:
 Financial Plan Purpose and Organization- Goal Status Reports which requires that the status of major program objectives be formally reported to the Council on an ongoing, periodic basis.
 Financial Reporting and Budget Administration- Interim Reporting which requires the City to prepare and issue timely interim reports on the City’s fiscal status to the Council and staff.

DISCUSSION
The accompanying Financial Report for the first quarter of FY 2023-24 (Attachment A) provides a high-level overview of the City’s financial condition as of September 30, 2023.

The attached report highlights revenue and expenditure actuals for the first three months of the fiscal year and an update on the Major City Goal (MCG) tasks and the Capital Improvement Plan (CIP). The report’s focus is on the General Fund and each of the City’s four enterprise funds. The report also provides an update on the City’s storm-related expenditures.

Item 6a
Background
Section 1: General Fund Update: As of September 30, 2023, operating expenditures trend on target with past years’ first quarters. Property tax revenues are benefiting from higher than anticipated property value assessments, but sales tax and transient occupancy taxes are showing signs of general economic cooling.

Section 2: Enterprise Funds: The enterprise funds are also tracking in line with projected budget and will likely end the year as stated in the adopted budget.

Section 3: Major City Goal (MCG) Update: The City continues to make progress on its MCG efforts, many of which are continued from the 2021-23 Financial Plan. The two efforts that were scheduled to be completed in the first quarter are very close to completion but have updated completion dates were moved to either Q2 or Q3.

Section 4: Capital Improvement Plan Update: The City has completed four CIP projects between July 2023 and September 2023. Some of the major completed projects include the Railroad Safety Trail Fencing, Santa Rosa at Monterey Intersection improvements, and the 2023 Silt Removal project. Some of the major upcoming or active projects include the North Chorro Greenway and the Marsh Street Bridge Emergency Debris Clearing.

Section 5: Fund Balances: This section provides the current fund balances for all major funds considering Council action to date. Because the City’s business license renewal cycle happens in the first quarter, there is also an update on the renewed versus delinquent licenses.

Section 6: Outlook and Conclusion: Based on the first quarter results, the City is in a good financial condition and on track to meet or exceed its overall revenue projections; however, future uncertainties remain around storm reimbursements, the spectre of an economic slowdown and/or more turbulence, and the impact of CalPERS investment losses which have increased unfunded pension liabilities. Staff will return to Council with the mid-year report on February 6, 2024, with updated fiscal forecasts.

Budget Amendment to Support Economic Development
On December 8, 2020 Council appropriated $3,425,000 in Local Revenue Measure funds to be used on a number of efforts described in the agenda report that help support economic activity and homeless services1. Specifically, one of the recommendations included local investment into short term Certificates of Deposit to generate interest for a grant program to help offset the cost of a Tenant Improvement permit.

Due to the low interest rate environment that began shortly after, the city did not make these investments. Instead, it appropriated over $250,000 to directly offer credits for TI permits through the TIPP‐Fast 2.0 permitting program and placed the remaining amount in the General Fund assigned fund balance for use on future economic development efforts. Since then, some of the funding was used in FY 2022-23 and some was allocated in the 2023-25 Financial Plan. The remaining balance is $624,441.

1 Resolution 11203, 2020 Series

Item 6a
Staff recommends appropriating $150,000 of this balance for the following uses to help support economic recovery:

1. Buy Local Bonus & Eat Local Bonus Programs ($125,000): This funding will provide expanded support for local programs including the Buy Local Bonus and the Eat Local Bonus. This program was very successful last year and is a great way to encourage people to shop and eat at local businesses. Currently there is $125,000 already allocated for these programs specifically for the purchase of gift cards, however, the additional funds will allow for more gift card funding to expand the participation opportunity for more businesses and consumers. This is also expected to extend the duration of the programs since both “sold out” prior to the programs’ published end dates last year. Additionally, this funding will support the development of a new campaign during January, similar to a “Restaurant Week” campaign to supplement the Eat Local Bonus program, as well as other business support programs during the season.

2. Downtown & Community Activations ($25,000): This funding will provide expanded support for activations, promotions, and other community benefit programs to support economic development. Currently, the City has $25,000 allocated within Economic Development for these types of programs to implement the Major City Goal, however this additional funding will provide the City the flexibility to supplement this program.

Table 1: Economic Development Funding Balance
Balance as of June 30, 2023 $1,416,441
2023-25 Budget Allocations2 $792,000
Current Balance $624,441
One-time Requests $150,000
Remaining Balance (after request) $474,441
Public Engagement
Public comment on this item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. The First Quarter Financial Report for FY 2023-24 (Attachment A) will be posted on the City’s website for public review.

CONCURRENCE
Operating departments review and monitor financial results on a regular basis.

Departmental fiscal officers reviewed the numbers and will be closely monitoring the budget for the remainder of the year.

2 2023-25 Financial Plan Page 107: $396,000 in FY 2023-24 and $396,000 in FY 2024-25.

Item 6a

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) 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 (Assigned
Fund Balance: Economic
Development)
$624,441 $150,000 $474,441 N/A
State
Federal
Fees
Other:

Total $624,441 $150,000 $474,441 N/A

ALTERNATIVES
Do not appropriate $150,000 of the General Fund Assigned Fund Balance to be used for economic development efforts supporting holiday activation and community programs. This is not recommended because this funding is intended for this purpose and the proposed budget allocations are a great way to get funding out into the community and encourage people to shop and eat at local businesses.

ATTACHMENTS
A - Fiscal Year 2023-24 First Quarter Budget Report
B - Draft Resolution approving an amendment to the Fiscal Year 2023-24 Budget

Q1 Financial Report Page 1
First Quarter Financial Report
Fiscal Year 2023-24
Introduction
This financial report provides an overview of the City’s financial position through the first quarter of fiscal year 2023-24 (July 1 - September 30, 2023) for the General Fund and the four enterprise operating funds.

It also provides an update on the status of the City’s Capital Improvement Program (CIP) projects and progress on Major City Goals. Notable milestones or trends within the first quarter are addressed and detailed throughout the document. The report is broken down into the following sections:

Contents
Section 1: General Fund Update...................................................................................................................2 1a. General Fund Revenue....................................................................................................................2 1b. General Fund Expenditures.............................................................................................................5 1c. An Update on Storm Expenditures..................................................................................................6 Section 2: Enterprise Fund Update ...............................................................................................................7 2a. Utilities: Water and Sewer Funds....................................................................................................7 2b. Parking Fund ...................................................................................................................................8 2c. Transit Fund.....................................................................................................................................9 Section 3: Major City Goal Update..............................................................................................................11 Section 4. CIP Update – Completed and Ongoing Projects.........................................................................12 Section 5: Fund Balances ............................................................................................................................14 Section 6: Outlook and Conclusion.............................................................................................................14

Q1 Financial Report Page 2
Section 1: General Fund Update
As of September 30, 2023, operating expenditures and revenues generally trend on target with past years’ first quarters.
1a. General Fund Revenue
Table 1 - Q1 General Fund Revenue
Sales and Use Tax (including Measure G): The actuals listed above are for July and August remittances from the California Department of Tax and Fee Administration (CDTFA). While these two months show a reduction compared to the prior year, the numbers above do not provide a complete picture of Q1 revenue. The city will receive September actuals in late November, which often includes a significant “cleanup” amount. Categorical sales tax data for Q1 is not available yet but based on the recent FY 2022- 23 Q4 data (see Figure 1 on next page), some industries are seeing a “cooling”; however, increases in the City’s share of the County pool have largely made of up for the gap from the declining industry groups.

At a macroeconomic scale, U.S. Bureau of Economic Analysisreported that U.S. GDP grew at a 4.9% annual pace in the third quarter, buoyed by a strong consumer despite higher interest rates and inflation.

According to Deloitte’s 2023 Holiday Retail Survey, this year’s holiday spending is predicted to surpass pre-pandemic levels and Amazon recently reported that their October “prime day” outpaced last year’s event. Despite these positive reports, the reactivation of student loan repayments and relentlessly high interest rates may impact consumer spending in the coming months. Staff doesn’t anticipate any need to General Fund Revenues Q1 Actuals % Received Total Budget Q1 Actuals % Received Variance from prior year
Tax & Franchise Revenue
1 Sales Tax: Bradley Burns (July-Aug only) $ 3,945,734 18% $ 22,578,995 $ 3,639,635 16.1% -7.8% 2 Sales Tax: LRM G20 (July-Aug only) $ 5,114,415 19% $ 30,262,098 $ 4,570,414 15.1% -10.6% 3 Property Tax $ 311,029 1% $ 21,999,786 $ 697,541 3.2% 124.3% 4 Safety Prop 172 $ 99,220 20% $ 498,988 $ 92,001 18.4% -7.3% 5 Transient Occupancy Tax $ 3,490,625 40% $ 10,704,000 $ 3,205,153 29.9% -8.2% 6 Utility User Tax $ 1,397,746 25% $ 5,710,320 $ 1,277,683 22.4% -8.6% 7 Business Tax* $ 3,108,125 108% $ 3,252,293 $ 2,946,108 90.6% -5.2% 8 Cannabis Tax $ 244,581 17% $ 1,100,000 $ 286,865 26.1% 17.3% 9 Franchise Fees $ 207,841 13% $ 1,854,000 $ 234,808 12.7% 13.0% 10 Gas Tax (Special Revenue Fund) $ 339,663 27% $ 1,389,292 $ 366,000 26.3% 7.8% 11 SB1 - Gas Tax (Special Revenue Fund) $ 176,565 17% $ 1,177,994 $ 201,792 17.1% 14.3% 12 Total Tax & Franchise Revenue $18,435,543 20% $100,527,765 $ 17,518,001 17% -5% 13 Development Review $ 1,734,393 28% $ 6,275,536 $ 1,674,326 26.7% -3.5% 14 Fire $ 377,831 19% $ 1,577,836 $ 409,081 25.9% 8.3%
15 Parks & Recreation $ 329,467 21% $ 2,021,599 $ 533,156 26.4% 61.8% 16 Police $ 93,182 15% $ 615,561 $ 118,693 19.3% 27.4%
17 Grants & Subventions $ 598,226 91% $ 676,750 $ 225,846 33.4% -62.2% 18 Business Licenses* (Incl Cannabis) $ 159,518 16% $ 666,600 $ 420,274 63.0% 163.5% 19 Other Revenue $ 287,097 43% $ 1,017,872 $ 253,939 24.9% -11.5% 20 Total $22,015,256 21% $113,379,519 $ 21,153,315 19% -4% *Business license and tax certificate renewals are due before September 30th, therefore anticipated revenue for the year has been collected. 2022-23 2023-24

Q1 Financial Report Page 3
adjust the revenue budget at this point but will provide an update at the mid-year review on February 6, 2024.

Figure 1- City of SLO Sales Tax Revenue by Category: Year-over-year for FY 23 Q4 (Calendar year Q2) Property Tax: Although the days of record‐low mortgage rates are over for the time being and the market has cooled, home prices remain sticky because inventory is low, and the demand remains high. In October, the County provided updated 2023-24 Property Tax estimates that are about $600,000 higher than the City’s current budget. Staff will update the budget and forecasts at mid-year to account for the increase.

Overall County assessed property value increased by 6.24% (Jan 2022 to Dec 2022), with the City increasing slightly higher at 7.42%. Property tax assessment increases are limited to no more than 2% per year as long as the property does not have a change in ownership or any new construction. As a reminder, only 7.22% of property taxes are distributed to Cities. Approximately 63% goes to schools, with the County receiving the next highest amount.

Table 2 -City of San Luis Obispo Total Property Assessed Value 2022 2023 Change % Change
$11,732,942,322 $12,604,023,619 $871,081,297 7.42%
Transient Occupancy Tax (TOT): TOT revenue is about 8% lower than last year; however, there are still four missing hotel payments for the month of September which is not atypical. The missing remittances could easily turn that number around. Overall, the city is seeing a slight decline in its hotel occupancy rates (See table 3 below) but given that 2022-23 set a record high for TOT revenue, this cooldown was anticipated.

Q1 Financial Report Page 4
Table 3 - Year over Year Hotel Occupancy Rates (Based on Smith Travel Research Report) Month
Occupancy %
2022-23 2023-24 Change +/-
July 82.6 83.5 1.1%
August 75.8 74 -2.4%
September 72.7 71.2 -2.1%
Utility User Tax (UUT): Despite the Q2 UUT revenue being slightly lower than the same period last year, it is important to note that FY 2022-23 UUT revenue was a high outlier. The total year end revenue was about 11% higher than the budget in FY 2022-23. Additionally, the quarter-to-quarter revenue can fluctuate slightly depending on when businesses remit their taxes. Staff expect this revenue to exceed the budget and are preparing an updated UUT budget and forecast for the mid-year review.

Business Tax: The City collects business taxes at the beginning of the fiscal year, and they are based on individual businesses’ gross receipts in the previous calendar year. FY 2023-24 business tax revenues through Q1 are lower than last year because there are still about 650 businesses that need to remit (see table 16 in the last section 6 of this report). This is nearly double the delinquent number of businesses from last year.

The Finance Department makes considerable effort to enforcement business tax compliance, and businesses are assessed fees and penalties for non-compliance with business tax requirements as outlined in the Municipal Code. The Revenue division has recently been impacted by vacancies and inconsistent staffing, which has delayed business tax compliance efforts, but staff is currently working to catch up and expects to be able to collect revenue from the delinquent businesses and meet its revenue budget for the year.

Cannabis Tax: Cannabis tax revenue is on track with projections.

Franchise Fees: Franchise Fees are on track with projections. In general, the city has seen an increase in Franchise revenue over the last 10 months because of the spikes in utility rates. The franchise agreements are based on the utility providers’ gross receipts.

Gas Taxes: Gas taxes are slightly outpacing projections and are higher than last year. Although the gas tax is a “per gallon” tax, annual adjustments on the tax help maintain modest growth on this revenue stream.

The FY 2023-24 budget is based on information provided by the state. Gas Tax SB1 (Line 11) has a twomonth delay in remittance so the $201,792 represents only two months of revenue, explaining why it is only at 17% collected.

Development Review: Development services revenue is on track with projections. July and August had above-average revenue totals but September slightly lower than average. July’s above-average revenue can be attributed to mixed-use building permit fees, new single-family building permits, and Accessory Dwelling Unit permits (ADU). In August, Development review fees, building permits, plan check fees, inspection fees, and encroachment fees all came in with above-average revenue totals. Planning and

Q1 Financial Report Page 5
zoning fees and application fees did not meet their average revenue threshold, but they are not far enough off course to make any adjustments to current projections. Supply chain issues, workforce constraints, and rising interest rates could slow development for the year. Development Review revenues tend to be unpredictable, meaning large projects with large fees influence total revenue collection. A weak or strong quarter could shift the overall outlook, so monthly revenues will be closely monitored by staff.

Parks & Recreation: The Parks & Recreation budget is on track with projections. Youth Services revenue is tracking higher (year over year) for Q1 due to a shift in the timing that July summer camp was received due to new partnership with SLCUSD paying for childcare expenses. In the past, it was collected in the prior fiscal year, when individual families registered and paid for their care. Outdoor Rental fees have outpaced Q1 of FY 2022-23, due to earlier collection of summer permit fees than last year. First quarter for the Golf division revenue was forecasting higher than the prior year and general round sales were approximately 7% less than pre-pandemic (Q1 FY 2019-20) totals, but higher than prior fiscal year quarter (15%). Within the first quarter, the Aquatics division had an increase of 13% attendance from the prior year with revenue increase within the same time.

Other Departmental Revenue (Police & Fire): Police and Fire department revenue are on track with projections.

Grants and Subventions: Grant revenues fluctuate from year-to-year based on availability and award success. The budget is adjusted throughout the year as grants are awarded. Year-to-date, the city is on track to receive all its budgeted revenue in this category.

Business and Cannabis Licenses: Business license fees are on track with projections. Business licenses are renewed at the beginning of the fiscal year; therefore, most of the revenue for the year has been collected.

An update on the number of renewed licenses is provided in Section 5 of this report. The cannabis operator license fee budget was developed based on the projected number of businesses that would be open this year.

Other Revenue: The “Other Revenue” category includes things like interest revenue, lease revenue, and miscellaneous revenue that is not department specific. This category also includes “net zero” revenues that are offset by expenditures.
1b. General Fund Expenditures
Overall expenditure trends are on track with budget. The tables below include year-to-date consumption for FY 2023-24 compared to budget.

Q1 Financial Report Page 6
Table 4 - Q1 General Fund Expenditures by Type
As of the first quarter, there are no significant variances to point out in the General Fund departments.

Table 5 - Q1 Expenditures by Department
*Includes the City-wide staffing contingency budget which will be moved into the department budgets as needed later in the year, explaining why this category is only 12% is spent. 1c. An Update on Storm Expenditures
The City’s winter storms resulted in emergency declarations at the Federal and State level, in addition to the Emergency Services Director’s local emergency proclamation. The City Council has authorized use of up to $9 million from the City’s operating reserve in FY 2022-23 and FY 2023-24 to address unbudgeted storm costs and with adoption of the 20-23-25 Financial Plan, the City Council also approved allocation of Expenditure Type Total Budget Obligations Expenditures Total Obligations &
%
Consumed
1 Salaries $ 46,545,721 $ - $ 9,169,608 $ 9,169,608 20% 2 Retirement/Benefits $ 11,508,563 $ - $ 2,963,119 $ 2,963,119 26% 3 PERS Unfunded Liability $ 11,132,870 $ - $ 10,998,102 $ 10,998,102 99% 4 Contract Services $ 12,875,121 $4,269,716 $ 2,528,209 $ 6,846,846 53% 5 Other OpEx $ 5,297,703 $1,138,849 $ 1,156,583 $ 2,308,287 44% 6 Utilities $ 3,309,822 $ 42,559 $ 821,906 $ 864,465 26% 7 Grand Total $ 90,669,799 $5,451,124 $ 27,637,528 $ 33,150,427 37% FY 2023-24 (July -September)
Department Total Budget Obligations Expenditures
Total
Obligations &
Expenditures
%
Consumed
1 Public Safety
2 Police $ 22,164,567 $ 353,221 $ 8,229,428 $ 8,595,389 39% 3 Fire $ 15,293,168 $ 267,579 $ 5,621,868 $ 5,890,867 39% 4 Community Services Group (CSG)
5 CSG Admin $ 840,784 $ 37,240 $ 305,874 $ 343,114 41%
6 CDD $ 8,807,387 $ 787,159 $ 2,108,783 $ 2,895,942 33% 7 Public Works $ 17,989,265 $2,054,320 $ 4,824,220 $ 6,883,366 38% 8 Parks & Recreation $ 5,706,488 $ 98,930 $ 1,526,101 $ 1,625,031 28% 9 Solid Waste - AB 939 $ 406,797 $ 54,736 $ 124,491 $ 179,226 44% 10 Internal Services
11 Admin/IT $ 11,694,286 $1,161,498 $ 2,988,218 $ 4,171,755 36% 12 City Attorney $ 1,698,051 $ 240,196 $ 446,357 $ 691,345 41% 13 Finance $ 2,485,965 $ 161,704 $ 782,206 $ 943,910 38% 14 Human Resources $ 2,158,158 $ 200,277 $ 554,509 $ 765,761 35% 15 Non-Departmental* $ 1,424,883 $ 34,266 $ 125,473 $ 164,722 12% 16 Total $ 90,669,799 $5,451,124 $ 27,637,528 $ 33,150,427 37% FY 2023-24 (July -September)

Q1 Financial Report Page 7
$2.75 million to a capital project to fund projects to repair storm damages and mitigate against future damage.

The Federal and State declarations enable the City eligible to seek reimbursement for certain stormrelated costs. The maximum reimbursement for eligible costs is 93.75% (75% from FEMA and 18.75% from CalOES), meaning that the City will pay a minimum of 6.25% for certain storm related costs. Based upon information provided by EY (the consultant hired to provide disaster recovery technical assistance), staff expects that reimbursement will be received approximately 12 months following formal submittal of projects to FEMA.

Currently, the city has expended approximately $7.5 million on storm response, including debris removal, emergency protective measures, and projects to make permanent repairs to damaged facilities. As noted in prior updates, storm related costs continue to shift as projects are scoped and designed. Currently, the total storm costs are estimated at $35.6 million. Staff continue to work to prioritize the repairs and identify which projects will be eligible for the highest reimbursement.

Section 2: Enterprise Fund Update
2a. Utilities: Water and Sewer Funds
The tables below include first quarter actuals for FY 2023-24 compared to the budget.

Table 6 – Q1 Water and Sewer Revenue
Water/Sewer Fund Revenue Q1 Actuals
%
Received Total Budget Q1 Actuals
%
Received
Variance from
prior year
601-Water Fund $ 5,578,487 21% $ 27,353,319 $ 5,854,193 21% 5% 602-Sewer Fund $ 3,845,425 20% $ 21,457,327 $ 3,650,466 17% -5% Grand Total $ 9,423,912 21% $ 48,810,646 $ 9,504,659 19% 1% FY 2022-23 FY 2023-24

Q1 Financial Report Page 8
Table 7 - Q1 Water and Sewer Expenditures
Revenue: Due to utility billing timings, revenues reflect roughly two months of revenue. Relative to projected revenues for FY 2023-24, first quarter revenues put the Utilities department on track to achieve revenue targets. Relative to the FY 2022-23 revenue actuals, water is trending higher, and sewer is trending lower. Water revenue is trending higher because the rates were increased by 8.5% on July 1, 2023 (Resolution No. 11427). Sewer revenue is currently trending lower due to the timing of Cal Poly capacity interest payments. Cal Poly contributes to major utility infrastructure in exchange for reserved capacity in the wastewater system. In the previous fiscal year Cal Poly contributed $243,568 for the design of the WRRF upgrade. Cal Poly contributions for the construction of the WRRF upgrade will begin December 2024.

Expenditures: There are no significant variances to point out at this time. It is normal and expected that contract services and other operating expenses track above 25% because annual purchase orders are set up at the beginning of the year and the funds are considered “Obligated” from that point forward.

Additionally, costs like contributions to source water reservoirs, permits, and subscriptions are frontloaded in the fiscal year. Variance in salaries can be attributed to staff vacancies and standby, call back, and overtime that have not been used yet.
2b. Parking Fund
The tables below include first quarter actuals for FY 2023-24 compared to budget.

Expenditure Type by
Fund Total Budget Obligations Expenditures
Total
Obligations &
Expenditures
% Consumed
1 601-Water Fund
2 Salaries $ 3,887,239 $ - $ 724,126 $ 724,126 19%
3 Retirement/Benefits $ 936,831 $ - $ 237,025 $ 237,025 25% 4 Debt Service $ 1,870,392 $ - $ - $ - 0%
5 PERS Unfunded Liability $ 678,507 $ - $ 668,626 $ 668,626 99% 6 Contract Services $ 1,067,009 $ 321,794 $ 142,911 $ 464,705 44% 7 Other OpEx $ 13,005,131 $ 1,971,737 $ 6,612,225 $ 8,583,962 66% 8 Utilities $ 1,033,720 $ 18,756 $ 219,701 $ 238,457 23% 9 Water Fund Total $ 22,478,829 $ 2,312,287 $ 8,604,615 $ 10,916,902 49% 10 602-Sewer Fund
11 Salaries $ 3,889,630 $ - $ 731,540 $ 731,540 19%
12 Retirement/Benefits $ 909,393 $ - $ 228,444 $ 228,444 25% 13 Debt Service $ 1,382,346 $ - $ - $ - 0%
14 PERS Unfunded Liability $ 692,112 $ - $ 682,034 $ 682,034 99% 15 Contract Services $ 1,251,733 $ 517,081 $ 175,631 $ 692,713 55% 16 Other OpEx $ 1,595,059 $ 398,077 $ 208,601 $ 606,677 38% 17 Utilities $ 1,062,892 $ 32,086 $ 213,099 $ 245,186 23% 18 Sewer Fund Total $ 10,783,165 $ 947,244 $ 2,239,348 $ 3,186,593 30% FY 2023-24 (July -September)

Q1 Financial Report Page 9
Table 8 - Q1 Parking Fund Revenue
Table 9 - Q1 Parking Fund Expenditures by Type
Revenue: Parking revenues compared to budget are tracking similar to the first quarter of the previous fiscal year. The hourly rate increases in the parking structures and on-street spaces approved by Council as part of the FY 2022-23 Supplemental Budget adoption were implemented July 1, 2023, which explains the significant variance in actual revenue compared to the prior year. Fines and Forfeitures, which is mainly comprised of parking citation revenue is tracking higher than the budgeted amount and an adjustment will be recommended with the Mid-Year Review. The Parking Fund also implemented a gateless operation as well as pilot parking program for in-county residents at the 842 Palm Street parking structure. So far, these programs have not significantly affected revenues. Staff is continually monitoring the programs and may recommend adjustments based on further analysis. The totality is that revenues are tracking to achieve original estimates and will be adjusted based on any Council action at the November 7, 2023 meeting.

Expenditures: Salaries and Retirement/Benefits are tracking low through the first quarter due to staff turnover and a minor delay in hiring for the vacant Administrative Assistant position. Contract Services and Other Operating Expenses are significantly above 25% because most of these funds are obligated at the beginning of the fiscal year for annual service contracts which is consistent with prior years. 2c. Transit Fund
The tables below include first quarter actuals for FY 2023-24 compared to budget.

Parking Fund
Revenue
Q1 Actuals % Received Total Budget Q1 Actuals % Received Variance from prior year
Parking Fund $ 1,866,772 32% $ 10,203,324 $ 3,282,085 32% 76% Grand Total $ 1,866,772 32% $ 10,203,324 $ 3,282,085 32% 76% FY 2022-23 FY 2023-24
Expenditure Type Total Budget Obligations Expenditures
Total
Obligations &
Expenditures
% Consumed
1 Salaries $ 1,405,279 $ - $ 270,807 $ 270,807 19%
2 Retirement/Benefits $ 321,392 $ - $ 73,589 $ 73,589 23% 3 Debt Service $ 852,116 $ - $ 369,156 $ 369,156 43%
4 PERS Unfunded Liability $ 196,276 $ - $ 177,823 $ 177,823 91% 5 Contract Services $ 969,370 $ 589,720 $ 163,334 $ 753,054 78% 6 Other OpEx $ 392,450 $ 18,146 $ 189,421 $ 207,567 53% 7 Utilities $ 264,172 $ - $ 51,685 $ 51,685 20%
8 Parking Fund Total $ 4,401,055 $ 607,866 $ 1,295,815 $ 1,903,681 43% FY 2023-24 (July -September)

Q1 Financial Report Page 10
Table 10 - Q1 Transit Revenue
Table 11 - Q1 Transit Expenditures
Revenue: Transit revenues are primarily made up of federal and state grant funding which require reimbursement only after funds have been expended. Transit has not drawn down any federal funds through the first quarter for either operating assistance or capital projects. Similarly, the only state funding received so far is for formula funds which are not provided via reimbursements. Bus fare is higher compared to the first quarter of the previous year because Cal Poly’s contribution for student transit services increased from $600,000 to $750,000 this year.

Expenditures: There are no significant variances through the first quarter. Percentage consumed for Contract Services and Other Operating Expenses are significantly above 25% because most of these funds are obligated at the beginning of the fiscal year for annual service contracts which is consistent with prior years.

Transit Fund Revenue Q1 Actuals % Received Total Budget Q1 Actuals % Received Variance from prior year
Federal $ - 0% $ 7,571,830 $ - 0%
Local (Bus Fare) $ 194,947 23% $ 990,000 $ 225,864 23% 16% Other Revenue/ Interest Revenue $ 344,183 116% $ 13,579 $ - 0% -100% State $ 751,816 37% $ 3,179,564 $ 684,577 22% -9%
Grand Total $ 1,290,946 12% $ 11,754,973 $ 910,440 8% -29% FY 2022-23 FY 2023-24
Expenditure Type Total Budget Obligations Expenditures
Total
Obligations &
Expenditures
% Consumed
1 Salaries $ 337,815 $ - $ 77,414 $ 77,414 23%
2 Retirement/Benefits $ 74,554 $ - $ 21,217 $ 21,217 28% 3 PERS Unfunded Liability $ 45,388 $ - $ 44,728 $ 44,728 99% 4 Contract Services $ 4,487,341 $ 2,863,564 $ 360,568 $ 3,224,132 72% 5 Other Operating Expenditures $ 410,200 $ 262,321 $ 79,291 $ 341,612 83% 6 Transit Fund Total $ 5,355,298 $ 3,125,884 $ 583,218 $ 3,709,103 69% FY 2023-24 (July -September)

Q1 Financial Report Page 11
Section 3: Major City Goal Update
Table 12 - Major City Goal Tasks with Completion Dates in FY 2023-24 Q1 Task
Original
Completion
Date
Updated
Completion
Date
Comments (if applicable)
Diversity, Equity,
Inclusion (DEI)
Strategy 2.4: Enhance
Inclusive & Equitable
Workplace Environment:

Task a. Develop and adopt
a DEI statement for the
organization.

FY 23-24 Q1 FY 23-24 Q3
DEI Statement is being developed as
part of the DEI Strategic Plan that will be
before Council in Winter 2024.

Housing and
Homelessness
Strategy 3.4: Public Safety:

Task b. Implement the
new Community Service
Officer (CSO) program
over the next fiscal year to
ensure effectiveness and
improvements in qualityof-life surrounding
homelessness issues in
the downtown (funding
approved on March 7,
2023)
FY 23-24 Q1 FY 23-24 Q2
Contract CSO's have recently
interviewed and are in the process of
being converted from contract
employees to FTE's. In addition, two
CSO vacancies are being filled with an
expected start date in late 2023. (Both
candidates are starting the background
process) The contract CSO's have proven
to be a force multiplier downtown and
have made a significant improvement in
our ability to proactively address quality
of life issues in the downtown.

Q1 Financial Report Page 12
Section 4. CIP Update – Completed and Ongoing Projects
Table 13 - Completed and Ongoing Construction Projects (July 2023 – September 2023) *Includes carry over budget from prior years.

ID# Project Total Budget*
Estimated
Construction
Completion
Date
Additional Comments
1 842 Palm Parking Structure Gateless Entry $ 175,000 Complete 2 2022 Pedestrian Crossing Improvements $ 841,644 Complete 3 Railroad Safety Trail Fencing $ 350,000 Complete
4 Santa Rosa at Montery Intersection
Improvements
$ 1,067,084 Complete
5 Silt Removal 2023 $ 38,055 Complete
6 Wastewater Resource Recovery Facility Upgrade $ 143,376,754 Q2 FY 23-24 Construction Ongoing 7 Calle Joaquin Lift Station Replacement $ 9,225,565 Q2 FY 23-24 Construction Ongoing 8 2022 Roadway Sealing $ 5,550,000 Q2 FY 23-24
Construction almost complete.

Pending delivery of electrical
cabinet.
9 Whale Rock Dam Maintenance-Spillway
Underdrain Repairs
$ 455,360 Q2 FY 23-24 Construction Ongoing
10 San Luis Obispo Creek Emergency Bank
Stabilization Project near Johnson Avenue
$ 1,700,455.00 Q2 FY 23-24 Construction Ongoing
11 Marsh Street Bridge Emergency Debris Clearing $ 325,370 Q2 FY 23-24 Construction Ongoing 12 CDBG Curb Ramps 2022 $ 800,128 Q2 FY 23-24 Construction Ongoing 13 San Luis Drive Emergency Repair $ 7,000,000 Q2 FY 23-24 Construction Ongoing 14 Cultural Arts District Parking Structure $ 54,614,116 Q3 FY 25-26 Construction Ongoing. All
Phases(Phase 1A, 1B, and 2) in
construction.
15 North Chorro Neighborhood Greenway $ 8,218,904 Q3 FY 23-24 Construction Ongoing 16 2023 Arterials $ 8,521,058 Q3 FY 23-24 Construction Ongoing 17 Transit Facility Electric Vehicle Charging
Infrastructure
$ 2,025,408 Q4 FY 23-24 Construction Ongoing
18 Water Treatment Plant Generator Improvement
Project at Facility 98
$3,527,523 Q4 FY 24-25 Construction Ongoing
19 North Broad Street Neighborhood Park $ 1,739,474 Q4 FY 23-24 Construction Contract Awarded. 20 Buchon Street Traffic Calming $ 337,370 Q2 FY 23-24 Awarded 21 Ruth and Iris Storm Drain Repair $ 321,656 Q2 FY 23-24 Awarded 22 842 & 919 Palm Parking Structure Repairs $ 3,462,180 Q2 FY 23-24 Awarded 23 Prefumo Creek LOVR to Laguna Lake $ 335,950 Q2 FY 23-24 Awarded 24 Fire Station 1 Fleet Maintenance Roof $ 361,436 Q3 FY 23-24 Awarded 25 Cheng Park Revitalization $ 807,786 Q3 FY 23-24 Awarded 26 Tank Farm Lift Station Discharge Pipe
Replacement
$ 200,000 Q4 FY 23-24 Advertising for Construction Bids 27 Corporation Yard Fuel Island and Wash Station
Rehabilitation
$ 847,688 Q4 FY 23-24 Advertising
28 Reservoir No. 2 Cover Replacement Project $ 2,834,678 Q1 FY 24-25 Advertising Completed & Ongoing Construction Capital Projects (July 2023 - September 2023)

Q1 Financial Report Page 13
Table 14 - Status of Major Projects in Design
ID# Project Total Budget
Estimated
Construction
Start Date
Additional Comments
29 Mission Plaza Restrooms and Kiosk Cafe $ 3,377,529 Q4 FY 23-24 Finalizing design documents. 30 Mid-Higuera Bypass $ 9,077,709 Q4 FY 23-24 Finalizing design documents and easement acquisition process.
31 Prado Road Bridge and Road Widening $ 5,560,380 Q1 FY 25-26 Working on regulatory permits
and 90% constuction documents
32 California and Taft Roundabout $ 655,824 Q1 FY 25-26 Right of way acquisition in
progress and finalizing design
documents.
33 Prado Road Interchange $ 4,426,375 Q1 FY 27-28
Alternative analysis and
environmental document.

Pursuing advertisement of CEQA
document and final project
report.
34 Public Safety Center $ 399,215 To Be
Determined
Consultant to analyze two site
option and present conceptual
design for review. Currenlty
working on 1106 Tenant
Improvement project.

Status of Major and Legacy Projects in Design

Q1 Financial Report Page 14
Section 5: Fund Balances
Fund balance represents unspent expenditures, and revenues over expense brought forward from the previous year (ending balance) in order to fund the next year’s budget. In the case of the enterprise funds, the “Working Capital” is a shown below. Working Capital is equal to the fund’s current assets minus current liabilities. The total balance includes reserved or restricted amounts.

Table 15 - Fund Balance/Working Capital by Fund
Fund Balance/Working Capital by Fund
101 - General Fund $ 18,712,486
601 - Water Fund $ 42,559,433
602 - Sewer Fund $ 50,916,875
611 - Parking Fund $ 14,531,947
621 - Transit Fund $ 1,570,068
Q1 Update on Business License and Other Permit Renewals Annual business licenses and various permit renewals and fees are due to the city in the first quarter of the fiscal year. Staff were successful in collecting most of the renewals by the due date (July 31, 2023).

Delinquent customer accounts are now subject to late fees and/or administrative fines. The table below provides a snapshot of status made relative to collection of these license and permit renewals as of October 31, 2023.

Table 16 - License and Permit Renewal Status
License/Permit Type Renewed Delinquent
Business Licenses 8,150 661
Business Licenses – Homestays 146 8
Fire Permits 196 73
Industrial User Permits 420 111
Section 6: Outlook and Conclusion
All the City’s major funds began FY 2023-24 in good financial standing and overall, on track with budgets.

While revenue trends are looking favorable, there are some indications of a “cooldown”. Staff anticipated this in preparing the 2023-25 Financial Plan and created the revenue budgets accordingly. It also worth noting that the City has a fully funded 20% operating reserve and a $2 million “Revenue Stabilization Reserve” to help hedge against any sudden fluctuations. Updated long-term forecasts will be presented to Council at the February 6, 2024, Mid-year review.

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE
FISCAL YEAR 2023-24 BUDGET
WHEREAS, on June 6, 2023, the City Council adopted the 2023-25 Financial Plan and the Fiscal Year 2023-24 budget (Resolution 11429, 2023 Series); and WHEREAS, in accordance with San Luis Obispo Charter Section 804, at any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion adopted by a majority vote of the Council; and WHEREAS, on December 8, 2020, Council approved $3,425,000 of Local Revenue Measure funds to be transferred into the General Fund for economic development efforts and homeless services (Resolution 11203, 2020 Series); and WHEREAS, after considering the adopted use of funds as outlined on page 107 in the 2023-25 Financial Plan, a balance of approximately $624,000 is available for future use; and
WHEREAS, staff have identified an immediate use for the some of the funds to help support local programs and community activations; and 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 2023-24 budget is hereby amended to appropriate $150,000 from the General Fund Assigned Fund Balance to the Economic Development program’s operating budget to support economic development efforts.

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

City of San Lu is Obispo, Council Memorandu m
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 14, 2023
TO: Mayor and Council
FROM: Whitney McDonald, Assistant City Manager
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6B – APPROVE THE PURCHASE OF 1166 HIGUERA STREET AND

AUTHORIZE THE EXECUTION OF THE PURCHASE AND SALE

AGREEMENT
Staff received the following questions, regarding the Purchase of 1166 Higuera Street.

The questions are below with staff’s response shown in italics:
1) How did we come to the estimate of $60,800 revenue from the 1166 lot for 24- 25, but $71,000 for subsequent years? And what are the parking utilization rates of meters already in that area of town?
Response: The revenue estimation of $60,800 in FY 24-25 is based on surrounding on-street metered parking collected between July 2022 and December 2022 and paid citations issued in existing surface parking lots between January 2023 and June 2023. The revenue estimation of $71,100 for FY 25-26 and beyond for the specific 1166 Higuera line item is based on the same data but adjusted for a previously approved hourly rate increase. However, while the entire LTF does include the previously approved July 1, 2025 rate increase, this specific line item was missed in the update of the LTF. As staff plans to come back to Council with an ordinance amendment to remove the rate increase in 2025, a revised LTF is included in this agenda correspondence to remove the additional revenue mistakenly included beginning in FY 25-26.
2) Where does the other estimated $85,000 in revenue come from? (fifth line down in the table)
Response: The Other Revenues line item consists of revenue from monthly parking structure fees for approximately 92 City employees (General Fund employee parking programs are paid for from the employee’s respective division), reimbursements for damage to Parking Fund owned property, and miscellaneous revenues.

Approve the Purchase of 1166 Higuera Street Page 2
3) Am I correct that if we were to decline purchase of the lot, we would add an estimated $176,000 annually back to the Parking Fund that is not available in this chart? That could be used for other rate adjustments, programs, technology or communication improvements, etc. or to cover some of what we provided already last week?
Response: Correct; however, any additional adjustments using the funds identified for the purchase of 1166 Higuera would be subject to the same considerations regarding the long-term fund balance as discussed on November 7, 2023. 4) What would be the impact on parking staff of adding this parking lot to your land portfolio? Would it cause delay of other projects/existing work program items and if so, what would be postponed to get this lot online and monitor ongoing?
Response: The addition of a City parking lot at 1166 Higuera would have minimal impact to current Parking operations and enforcement. New signage, pay stations, and minor site improvements at to facilitate public parking at 1166 Higuera will be able to be completed with minimal staff time and the use of new pay stations that were purchased for the anticipated expansion of paid parking in the Upper Monterey Street area.

Additionally, as much of this area is already paid on-street parking, enforcement officers are already in the vicinity of 1166 Higuera, so additional enforcement time is negligible.
5) What is the impact on the IIF of “lending” the balance needed for this purchase to the parking fund? Isn’t this money earmarked for other priority infrastructure like the Prado Overpass and Public Safety Center and would it delay this project further?
Response: Funding in the IIF is currently planned to be used to help fund the Prado Road Bridge & Road Widening and Prado Road Interchange in FY 2024-25 and FY 2025-26, as shown in the table below:

Project FY 2024-25 FY 2025-26 Total
Prado Road Bridge & Road
Widening
$10,000,000 $0 $10,000,000
Prado Road Interchange $2,750,000 $1,150,000 $3,900,000 Total $12,750,000 $1,150,000 $13,900,000
At this time, it is expected that funding for these projects will be needed starting in the first quarter of FY 2025-26. As a part of the FY 2023-24 Mid-Year Budget Report, staff plans to recommend that a portion of the FY 2022-23 General Fund unassigned fund balance be used to repay the IIF for the use of funding for the 1166 Higuera acquisition. Assuming approval of that recommendation, use of IIF for the property acquisition should not impact the timing of both projects noted above.

Approve the Purchase of 1166 Higuera Street Page 3
6) Also, since storm damage is estimated to cost approximately $35M, is it our intention to use IIF to cover the portion of these costs that FEMA does not cover?
Response: IIF is not currently planned to be used to fund storm damage repair work. Funding that is contemplated to be used to repay the IIF is the FY 2022-23 General Fund unassigned fund balance, which has also been contemplated to be used to fund storm damage repair projects and other infrastructure needs. IIF repayment needs are not required until after the 2025-27 Financial Plan, when repayment needs of the IIF can be addressed in the context of the larger Capital Improvement Plan Budget. Funding would be required to be allocated to the IIF to offset this expenditure from the 2025-27 Financial Plan if not addressed with FY 2022-23 General Fund unassigned fund balance.

Long Term Forecast With Changes to CIP and No Rate Reductions

PARKING FUND LONG-TERM FORECAST

UNAUDITED ACTUAL

ADOPTED
BUDGET

REVISED PROJECTED

BUDGET BUDGETED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED 2022-23 2023-24 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30

REVENUES
Service Charges
Potential Acquisition of Surface Lot - 30,400 60,800 60,800 60,800 60,800 60,800 60,800 First Hour Free - (830,000) (1,420,000) (1,420,000) (1,420,000) (1,420,000) (1,420,000) (1,420,000) Free Parking Sunday (96,000) (163,000) (163,000) (163,000) (163,000) (163,000) (163,000) Other Revenues 829,710 37,800 80,460 85,000 85,000 85,000 85,000 85,000 85,000 TOTAL REVENUES 7,965,182 10,203,324 9,867,163 9,395,434 9,355,034 9,811,987 9,831,306 9,601,101 9,613,340 Proceeds from Debt Financing 46,315,169 47,427,585
TOTAL REVENUES INCL. DEBT FINANCING 7,965,182 56,518,493 57,294,748 9,395,434 9,355,034 9,811,987 9,831,306 9,601,101 9,613,340

EXPENDITURES
Staffing 1,690,052 1,922,948 2,088,629 2,197,468 2,262,973 2,332,493 2,429,976 2,532,079 2,638,989 Contract Services 829,932 950,946 950,946 632,861 646,015 659,463 673,210 687,266 701,638 Other Operating Expenditures 733,292 695,046 667,660 694,888 738,601 799,681 867,973 944,469 1,030,308 General Government (CAP) 872,976 1,019,048 1,019,048 1,049,619 1,102,100 1,157,205 1,215,066 1,275,819 1,339,610 Operating Transfers Out 390,646 368,233 368,233 372,223 376,333 380,566 384,926 154,183 158,809 Total Operating Expenditures 4,516,898 4,956,220 5,094,516 4,947,060 5,126,022 5,329,408 5,571,151 5,593,816 5,869,353 Potential Acquisition of Surface Lot Improvements - 125,000 - - - - - - Total Capital Expenditures 1,936,247 48,594,961 58,989,800 882,467 631,665 1,102,292 507,612 998,814 1,209,136 Potential Acquisition of Surface Lot Loan Repayment - - 118,500 237,100 237,100 237,100 237,100 237,100 237,100 Total Debt Service 819,617 4,195,421 2,565,990 3,928,434 3,933,635 3,830,590 3,826,182 3,827,455 3,826,080 TOTAL EXPENDITURES 7,272,762 57,746,602 66,650,306 9,757,960 9,691,322 10,262,290 9,904,944 10,420,085 10,904,570

CHANGES IN FINANCIAL POSITION
BEGINNING FUND BALANCE 13,129,005 13,210,257 13,210,257 3,793,696 3,370,167 2,972,876 2,461,570 2,326,929 1,446,942 Revenue Over/(Under) Expenses $692,420 (1,228,109) ($9,355,558) (362,526) (336,288) (450,303) (73,638) (818,984) (1,291,229) ENDING FUND BALANCE W/O CALPERS DOWN PAYMENT 13,821,425 11,982,148 3,854,699 3,431,170 3,033,879 2,522,573 2,387,932 1,507,945 155,713 Cal PERS Additional Discretionary Payment (ADP) 61,003 61,003 61,003 61,003 61,003 61,003 61,003 61,003 ENDING FUND BALANCE 13,210,257 11,921,145 3,793,696 3,370,167 2,972,876 2,461,570 2,326,929 1,446,942 94,710 Policy Reserve Level - 20% 896,927 1,000,202 1,027,900 997,356 1,032,104 1,071,705 1,118,945 1,169,383 1,223,314 CalPERS Trust Fund 64,896 64,896 64,896 64,896 64,896 64,896 64,896 64,896 64,896 UNRESERVED FUND BALANCE 12,248,434 10,856,047 2,700,900 2,307,915 1,875,877 1,324,969 1,143,088 212,664 (1,193,500) 2023-2025 FINANCIAL PLAN

Item 6b
Department: Administration
Cost Center: 5101
For Agenda of: 11/14/2023
Placement: Business
Estimated Time: 30 minutes
FROM: Whitney McDonald, Assistant City Manager
Prepared By: Rebecca Bernstorff, Business Services and Administrative Manager SUBJECT: APPROVE THE PURCHASE OF 1166 HIGUERA STREET AND

AUTHORIZE THE EXECUTION OF THE PURCHASE AND SALE

AGREEMENT

RECOMMENDATION

1. Approve the purchase of 1166 Higuera Street; and

2. Authorize the execution of the Purchase and Sale Agreement; and

3. Approve a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the 2023-24 Budget Allocation for Fiscal Year 2023-24 for purchase and use of the property located at 1166 Higuera Street,” authorizing an interfund loan to fund the acquisition under the terms and conditions set forth in Exhibit A.

REPORT-IN-BRIEF
The City has been presented with the opportunity to purchase the property located at 1166 Higuera, which would provide a total of 441 new paid parking spaces, as well as two additional ADA spaces, for use by the public. Purchase and use of this property for public parking would facilitate greater access and economic development in the upper Monterey Street area, as contemplated in the Downtown Concept Plan and other City General Plan policies. The proposed acquisition would also provide additional parking capacity in the downtown area and otherwise partially relieve any real or perceived challenges to both distribution and availability of parking spaces.

Staff have completed negotiations with the seller, as authorized by the City Council, and the final Purchase and Sale Agreement is ready for approval. The purchase price is the equivalent of the property’s appraised value of $4,720,000, and it is anticipated that improvement costs of $125,000 will be needed to fully prepare the site for use as paid public parking. It is recommended that the purchase and improvement costs be provided by the City’s Infrastructure Investment Fund, with the Parking Fund repaying the costs through a 30-year loan.

1 44 spaces is the number under the current configuration and may increase as part of efforts to maximize parking yield for the site in conjunction with any improvements.

Item 6b

POLICY CONTEXT
The City’s Financial Management Manual, Section 475 - Real Property Acquisition & Disposal Policy, was adopted by Council on May 18, 2010 (Resolution No.10175) and guides real property acquisitions. The City Council’s role is to authorize and approve the acquisition of real property. The Planning Commission’s role is to review the same for General Plan consistency in compliance with City’s policy and California Government Code Section 65402(a)2.

DISCUSSION
Background
The City Council authorized City staff to initiate real property negotiations for the acquisition of 1166 Higuera Street for use as a public parking lot. The property is a 21,607 SF parcel located on the corner of Toro Street and Higuera Street addressed as 1,166 Higuera Street.

Acquiring this property will increase public parking supply in the Upper Monterey area, in conformance with the City’s General Plan Land Use Element. Development of the upper Monterey Street area of the City will support the evolving needs of the community, including build out of the Downtown Concept Plan The lack of public parking has been a hurdle to realizing this long-term vision, which includes more residential and commercial development. The strategic purchase of 1166 Higuera will support this vision by creating better access and parking to the upper Monterey Street area.

Pursuant to the authorization provided by City Council on October 17, 2023, the Purchase and Sale Agreement is ready for execution, and escrow is expected to close by the end of December 2023.

2 65402. (a) If a general plan or part thereof has been adopted, no real property shall be acquired by dedication or otherwise for street, square, park or other public purposes, and no real property shall be disposed of, no street shall be vacated or abandoned, and no public building or structure shall be constructed or authorized, if the adopted general plan or part thereof applies thereto, until the location, purpose and extent of such acquisition or disposition, such street vacation or abandonment, or such public building or structure have been submitted to and reported upon by the planning agency as to conformity with said adopted general plan or part thereof. The planning agency shall render its report as to conformity with said adopted general plan or part thereof within forty (40) days after the matter was submitted to it, or such longer period of time as may be designated by the legislative body.

Item 6b
General Plan and Zoning Considerations
The property is designated as General Retail Commercial in the City’s General Plan Land Use Element and is zoned Retail Commercial (C-R). The Retail Commercial (C-R) zone is intended to accommodate retail, business, personal, and professional services as well as recreation, entertainment, transient lodging, and limited residential uses. The property is located within the Upper Monterey Special Focus Area of the General Plan Land Use Element (LUE Policy 8.2.2). The City of San Luis Obispo General Plan Land Use Element establishes specific guidance on the development/redevelopment of sites in special planning areas. The guidance for sites located in the Upper Monterey Special Focus Area is as follows:

Item 6b
“In the Upper Monterey area, the emphasis will be on revitalization and enhancement. The area above Johnson shall have an emphasis on land use compatibility and neighborhood preservation. The following actions will be pursued in this area:

A. The City shall investigate adding the Upper Monterey area to the Downtown Parking District, thereby allowing in-lieu payment towards common parking facilities.

B. The City shall integrate a new Downtown Transit Center in the Upper Monterey area and provide enhanced connectivity to the center from the Upper Monterey area.

C. The City will work with hotels in the Upper Monterey area to provide shuttle service to the Downtown and Downtown Transit Center.

D. The City will promote restaurant development in the Upper Monterey area, and include outdoor dining opportunities and other public activities oriented toward Monterey Street. North of California, these types of activities shall be prohibited on the creek side of buildings.

E. The City will evaluate reconfiguring Monterey Street in this area to enhance bicycle and pedestrian connectivity to Downtown and to Cal Poly.

F. The City will work with local hotels and Cal Poly to develop enhanced meeting rooms and conference facilities. These types of facilities would not be located on the east side of Monterey north of California Street, nor is a stand-alone conference center appropriate for this area.

G. The City will work with developers to assemble adjacent properties into lots of suitable size for redevelopment limited to areas southwest of California Street.

H. The City will develop an Upper Monterey area master plan and design guide that will provide guidance on street enhancements, façade improvement programs, and pedestrian enhancement along Monterey Street. As part of this effort, the City will investigate the ability to apply form-based codes to guide future development and will involve residents in adjoining areas as well as business and property owners along Monterey Street as part of the public review process in development of the master plan/design guide. Particular attention will be given to creek protection, noise, safety, light and glare, and privacy impacts to adjoining neighborhoods”.

Per City regulations, parking is an allowed use with a Conditional Use Permit on this property. In addition, the block bounded by Monterey Street, Higuera Street, Toro Street and Santa Rosa Street, and specifically the subject parcel, is shown as public parking in the Downtown Concept Plan (see block number 23 in the excerpt from the Illustrative Downtown Concept Plan below). If Council accepts staff recommendations, the Planning Commission on December 13, 2023will consider a request fora determination of General Plan Conformance per California Government Code Section 65402 and for consideration of approval of a Conditional Use Permit for a public parking lot prior to the close of escrow.

Item 6b
Results of Due Diligence Process
Staff identified initial primary public uses of the property (primarily parking) and estimated costs associated with activating public parking on the property.

In order to accommodate the 44 paid parking stalls, two ADA parking stalls, and prepare the site for use as public parking, staff have identified several improvements (total cost estimate of $125,000) that will be necessary:

1. Parking lot improvements including signage, striping, installation of wheel stops, and installation of pay station are estimated to cost $15,000 in total; and

2. Landscape improvements, including reconstructing the planter areas are estimated to cost $10,000; and

3. Demolition of existing structure(s) as at least one of the existing structures will need to be removed as it was determined to be unhabitable and are estimated to cost $100,000.

Financing Options
Staff have completed a thorough financial analysis to determine the feasibility of acquiring this real property. The analysis considered the one-time expenses of $125,000, as described above, for site improvements and potential revenue assumptions using data collected from the on-street area surrounding the property, as well as paid citation revenue from the existing surface parking lots. Additionally, the Parking Fund’s LongTerm Forecast (Attachment C) has been revised to include the debt financing assumptions of the Cultural Arts District Parking Structure, following the construction contract award in Fall 2023. Furthermore, the Long-Term Forecast includes updated revenue projections for the fund based on the unaudited year-end actuals for Fisal Year 2022-23, as well as revenue impacts of a one-hour free program and free Sunday parking program, as approved by Council on November 7, 2023, and the removal of a rate increase for on-street parking that was planned for July 1, 2025.

Item 6b
The City received the appraisal from the seller on October 3, 2023, stating that the appraised value of the property is $4,720,000. The appraised value is identified as the purchase price of the property and included in the Purchase and Sale Agreement (PSA).

In order to finance this acquisition, staff recommends that the Infrastructure Investment Fund (IIF) make a loan in the amount of $4,720,000 to the Parking Enterprise Fund to fund the acquisition of the property. The proposed use of funds is consistent with the adopted guidelines for use of the IIF established under Resolution 10603. Most notably, the acquisition is a critical link to the orderly infill development of upper Monterey Street and is the advancement of General Plan policies and objectives.

The funding in the IIF is currently programmed for projects noted below. In order to be able to proceed with the planned projects as well as support the loan to the Parking Enterprise, staff would recommend prioritization of unassigned General Fund balance in future years to reimburse the IIF. Over the long-term, repayment of the loan from the Parking Enterprise will reimburse the IIF and General Fund.

Staff recommends that the Parking Enterprise pay interest on the loan at a rate of 2.88%.

The recommended interest rate represents the average interest earned on the City’s investments with the Local Agency Investment Fund (LAIF) to date in 2023. This interest rate acknowledges the impact that the loan to the Parking Enterprise will have to the IIF and General Fund, as the funding would otherwise earn interest if not expended. The interest rate also considers the sensitivities of the Parking Enterprise by providing a lower rate than would otherwise be obtained in the market (by comparison, the recent financing of the Cultural Arts District Parking Structure includes repayment with a 4.37% interest rate).

To ensure the Parking Enterprise’s ability to fund the debt service while maintaining operations and capital investments in parking facilities, it is recommended that this loan be repaid over a 30-year term. Using these loan terms and the purchase price for the property, the repayment is estimated to be $118,500 in FY 2023-24 and $237,100 annually thereafter. These terms have been incorporated into the Resolution provided in Attachment B, as it is important to reference the policies3 applicable to the interfund loan and the responsibility of the Parking Fund to repay the General Fund in supporting this acquisition.

3 Financial Plan 2023-25 Fiscal Policy Section 3.A. Water, Sewer, and Parking. The City will set fees and rates at levels which fully cover the total direct and indirect costs—including operations, capital outlay, and debt service—of the following enterprise programs: water, sewer, and parking.

General Plan Circulation Element 13.1.2. City Parking Programs. Parking programs shall be financially self-supporting.

Item 6b
The IIF currently has a balance of $12,500,000 to support this request of $4,720,000.

With the 2023-25 Financial Plan, the IIF balance was planned to be used to support design services for the Prado Road Interchange Project and portions of the construction costs for the Prado Creek Bridge Project. Due to the current delivery timeframe for both projects, the IIF can support the request for $4,720,000 at this time. Staff intends to recommend a significant portion of unappropriated/unaudited 2022-2023 funds be appropriated to the IIF to both replenish loaned funds and address the need for other projects consistent with the IIF.

Additional alternatives for funding the purchase are described in more detail under the Alternatives section below.

Previous Council or Advisory Body Action
City staff met with the City Council at the July 18 and October 17, 2023, Closed Sessions to seek authorization to pursue the property negotiations, and to discuss purchase terms.

There was no reportable action taken at these meetings.

Staff will bring the acquisition of the property to the Planning Commission on December 13, 2023, for a determination of General Plan Conformance per California Government Code Section 65402 and for consideration of approval of a Conditional Use Permit to allow public parking on the property prior to the close of escrow. These two actions are a required step to close escrow and are contingency of the purchase and sales agreement.

Public Engagement
The community will have an opportunity to engage in public comment at the November 14, 2023, City Council meeting.

The project will be reviewed by the Planning Commission on December 13, 2023.

CONCURRENCE
The coordination of this report has been in partnership with Community Development, Mobility Services, Economic Development, Finance and Capital Improvement Program.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended actions in this report because the actions do not constitute a “Project” under CEQA Guidelines Sec. 15378. This project is also exempt pursuant to Section 15301 of the CEQA Guidelines, which applies to the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.

Item 6b

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
Infrastructure
Investment Fund
$ $4,720,000 $ $
Parking Fund $125,000
State
Federal
Fees
Other:

Total $ $4,845,000 $ $
As described in the attached resolution (Attachment B), staff is recommending funding the acquisition of $4,720,000 with an interfund loan by the IIF with a repayment by the Parking Fund at a rate of 2.88% over 30 years. Council may provide direction to fund the purchase differently, in which the resolution will be modified accordingly.

ALTERNATIVES

1. Do not execute the Purchase and Sale Agreement and proceed with the property acquisition of 1166 Higuera Street. This is not recommended, as this purchase will develop parking supply in the Upper Monterey area and is consistent with the City’s General Plan goals and allows for the orderly development of upper Monterey.

2. Approve the Purchase and Sale Agreement and provide alternative direction regarding funding the purchase. Additional funding options may include:
a. An interfund loan from the IIF that incorporates alternative terms, such as deferral of payments for five years.
b. Purchase of the property by the General Fund without any repayment requirement from the Parking Fund. This alternative is not recommended in light of City General Plan Policy Section 13.1.2, which states that “City parking programs shall be financially self‐supporting.” Alternatively, returning revenue from paid parking on this site to the General Fund may lessen concerns regarding consistency with this General Plan policy.

ATTACHMENTS
A - Final Draft Purchase and Sale Agreement
B - Draft Resolution appropriating funding for the purchase of 1166 Higuera C - Parking Fund Long Term Forecast

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STANDARD OFFER, AGREEMENT AND ESCROW INSTRUCTIONS

FOR PURCHASE OF REAL ESTATE
(Non Residen al)
Dated: October 31, 2023

1. Buyer.

1.1 City of San Luis Obispo, a Municipal Corporation , ("Buyer") hereby o ers to purchase the real property, hereina er described, from the owner thereof ("Seller") (collec vely, the "Par es" or individually, a "Party"), through an escrow ("Escrow") to close 30 or on or before December 22, 2023 days a er the waiver or sa sfac on of the Buyer's Con ngencies, ("Expected Closing Date") to be held by Fidelity National Title Company, Attn: Cindy Ioimo ("Escrow Holder") whose address is 2222 S.

Broadway, Suite G, Santa Maria, CA 93454 , Phone No. 805-922-8331 , Facsimile No. 805-928-6064 upon the terms and condi ons set forth in this agreement ("Agreement"). Buyershall have the right to assign Buyer's rights hereunder, but any such assignmentshall not relieve Buyer of Buyer's obliga ons herein unless Seller expressly releases Buyer.

1.2 The term "Date of Agreement" as used herein shall be the date when by execu on and delivery (as dened in paragraph 20.2) of this document or a subsequent countero er thereto, Buyer and Seller have reached agreement in wri ng whereby Seller agrees to sell, and Buyer agrees to purchase, the Property upon terms accepted by both Par es.

2. Property.

2.1 The real property ("Property") that is the subject of this o er consists of (insert a brief physical descrip on) improved real property is located in the County of San Luis Obispo , is commonly known as (street address, city, state, zip) 1166 Higuera Street and is legally described as: per title report (APN: 002-436-022 ).

2.2 If the legal descrip on of the Property is not complete or isinaccurate, this Agreement shall not be invalid and the legal descrip on shall be completed or corrected to meet the requirements of Fidelity National Title Company ("Title Company"), which shall issue the tle policy hereina er described.

2.3 The Property includes, at no addi onal cost to Buyer, the permanent improvementsthereon, including those items which pursuant to applicable law are a part of the property, as well as the following items, if any, owned by Seller and at present located on the Property: electrical distribu on systems(power panel, bus duc ng, conduits, disconnects, ligh ng xtures); telephone distribu on systems(lines, jacks and connec ons only); space heaters; hea ng, ven la ng, air condi oning equipment ("HVAC"); air lines; re sprinkler systems; security and re detec on systems; carpets; window coverings; wall coverings; and (collec vely, the "Improvements").

2.4 The re sprinkler monitor: is owned by Seller and included in the Purchase Price, is leased by Seller, and Buyer will need to nego ate a new lease with the re monitoring company, ownership will be determined during Escrow, or there is no re sprinkler monitor.

2.5 Except as provided in Paragraph 2.3, the Purchase Price does not include Seller's personal property, furniture and furnishings, and stored items all of which shall be removed by Seller prior to Closing.

3. Purchase Price.

3.1 The purchase price ("Purchase Price") to be paid by Buyer to Seller for the Property shall be $4,720,000.00 , payable as follows:
(Strike any not applicable)
(a) Cash down payment, including the Deposit as dened in paragraph 4.3 (or if an all cash transac on, the Purchase Price):
$4,720,000.00
(b) Amount of "New Loan" as dened in paragraph 5.1, if any:
(c) Buyershall take tle to the Property subject to and/or assume the following exis ng deed(s) of trust ("Exis ng Deed(s) of Trust") securing the exis ng promissory note(s) ("Exis ng Note(s)"):
(i) An Exis ng Note ("First Note") with an unpaid principal balance as of the Closing of approximately:

Said First Note is payable at per month, including interest at the rate of % per annum un l paid (and/or the en re unpaid balance is due on ). (ii) An Exis ng Note ("Second Note") with an unpaid principal balance as of the Closing of approximately:

Said Second Note is payable at per month, including interest at the rate of % per annum un l paid (and/or the en re unpaid balance is due on ). (d) Buyer shall give Seller a deed of trust ("Purchase Money Deed of Trust") on the property, to secure the promissory note of Buyer to Seller described in paragraph 6 ("Purchase Money Note") in the amount of:

Total Purchase Price: $4,720,000.00

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3.2 If Buyer is taking tle to the Property subject to, or assuming, an Exis ng Deed of Trust and such deed of trust permits the beneciary to demand payment of fees including, but not limited to, points, processing fees, and appraisal fees as a condi on to the transfer of the Property, Buyer agrees to pay such fees up to a maximum of 1.5% of the unpaid principal balance of the applicable Exis ng Note.

4. Deposits.

4.1 Buyer has delivered to Broker a check in the sum of , payable to Escrow Holder, to be delivered by Broker to Escrow Holder within 2 or business days a er both Par es have executed this Agreement and the executed Agreement has been delivered to Escrow Holder, or within 2 or business days a er both Par es have executed this Agreement and the executed Agreement has been delivered to Escrow Holder Buyer shall deliver to Escrow Holder a check in the sum of . If said check is not received by Escrow Holder within said me period then Seller may elect to unilaterally terminate this transac on by giving wri en no ce of such elec on to Escrow Holder whereupon neither Party shall have any further liability to the other under this Agreement. Should Buyer and Seller not enter into an agreement for purchase and sale, Buyer's check or fundsshall, upon request by Buyer, be promptly returned to Buyer.

4.2 Addi onal deposits:
(a) Within 5 business days a er the Date of Agreement, Buyer shall deposit with Escrow Holder the addi onal sum of to be applied to the Purchase Price at the Closing.
(b) Within 5 business days a er the con ngencies discussed in paragraph 9.1 (a) through (m) are approved or waived, Buyer shall deposit with Escrow Holder the addi onal sum of to be applied to the Purchase Price at the Closing. (c) If an Addi onal Deposit is not received by Escrow Holder within the me period provided then Seller may no fy Buyer, Escrow Holder, and Brokers, in wri ng that, unlessthe Addi onal Deposit is received by Escrow Holder within 2 business daysfollowing said no ce, the Escrow shall be deemed terminated without further no ce or instruc ons.

4.3 Escrow Holdershall deposit the funds deposited with it by Buyer pursuant to paragraphs 4.1 and 4.2 (collec vely the "Deposit"), in a State or Federally chartered bank in an interest bearing account whose term is appropriate and consistent with the ming requirements of this transac on. The interest therefrom shall accrue to the benet of Buyer, who hereby acknowledges that there may be penal es or interest forfeituresif the applicable instrument isredeemed prior to its specied maturity. Buyer's Federal Tax Iden ca on Number is . NOTE: Such interest bearing account cannot be opened un l Buyer's Federal Tax Iden ca on Number is provided.

4.4 Notwithstanding the foregoing, within 5 days a er Escrow Holder receives the monies described in paragraph 4.1 above, Escrow Holder shall release $100 of said moniesto Seller as and for independent considera on for Seller's' execu on of this Agreement and the gran ng of the con ngency period to Buyer as herein provided. Such independent considera on is non refundable to Buyer but shall be credited to the Purchase Price in the event that the purchase of the Property is completed.

4.5 Upon waiver of all of Buyer's con ngencies the Deposit shall become non refundable but applicable to the Purchase Price except in the event of a Seller breach, or in the event that the Escrow is terminated pursuant to the provisions of Paragraph 9.1(n) (Destruc on, Damage or Loss) or 9.1(o) (Material Change).

5. Financing Con ngency. (Strike if not applicable)

5.1 This o er is con ngent upon Buyer obtaining from an insurance company, nancial ins tu on or other lender, a commitment to lend to Buyer a sum equal to at least % of the Purchase Price, on terms acceptable to Buyer. Such loan ("New Loan") shall be secured by a rst deed of trust or mortgage on the Property. If this Agreement provides for Seller to carry back junior nancing, then Sellershall have the right to approve the terms of the New Loan. Sellershall have 7 daysfollowing receipt of the commitmentse ng forth the proposed terms of the New Loan to approve or disapprove of such proposed terms. If Seller failsto no fy Escrow Holder, in wri ng, of the disapproval within said 7 days itshall be conclusively presumed that Seller has approved the terms of the New Loan.

5.2 If Buyer shall fail to no fy its Broker, Escrow Holder and Seller, in wri ng within days following the Date of Agreement, that the New Loan has not been obtained, itshall be conclusively presumed that Buyer has either obtained said New Loan or has waived this New Loan con ngency.

5.3 If Buyershall no fy its Broker, Escrow Holder and Seller, in wri ng, within the me specied in paragraph 5.2 hereof, that Buyer has not obtained said New Loan, this Agreementshall be terminated, and Buyershall be en tled to the prompt return of the Deposit, plus any interest earned thereon, less only Escrow Holder and Title Company cancella on fees and costs, which Buyer shall pay.

6. Seller Financing. (Purchase Money Note). (Strike if not applicable)

6.1 If Seller approves Buyer's nancials (see paragraph 6.5) the Purchase Money Note shall provide for interest on unpaid principal at the rate of % per annum, with principal and interest paid as follows: . The Purchase Money Note and Purchase Money Deed of Trust shall be on the current forms commonly used by Escrow Holder, and be junior and subordinate only to the Exis ng Note(s) and/or the New Loan expressly called for by this Agreement.

6.2 The Purchase Money Note and/or the Purchase Money Deed of Trust shall contain provisions regarding the following (see also paragraph 10.3 (b)):
(a) Prepayment. Principal may be prepaid in whole or in part at any me without penalty, at the op on of the Buyer. (b) Late Charge. A late charge of 6% shall be payable with respect to any payment of principal, interest, or other charges, not made within 10 days a er it is due.
(c) Due On Sale. In the event the Buyer sells or transfers tle to the Property or any por on thereof, then the Seller may, at Seller's op on, require the en re unpaid balance of said Note to be paid in full.

6.3 If the Purchase Money Deed of Trust is to be subordinate to other nancing, Escrow Holder shall, at Buyer's expense prepare and record on Seller's behalf a request for no ce of default and/or sale with regard to each mortgage or deed of trust to which it will be subordinate.

6.4 WARNING: CALIFORNIA LAW DOES NOT ALLOW DEFICIENCY JUDGEMENTS ON SELLER FINANCING. IF BUYER ULTIMATELY DEFAULTS ON THE LOAN, SELLER'S SOLE REMEDY IS TO FORECLOSE ON THE PROPERTY.

6.5 Seller's obliga on to provide nancing is con ngent upon Seller'sreasonable approval of Buyer's nancial condi on. Buyer to provide a current nancial statement and copies of its Federal tax returns for the last 3 yearsto Seller within 10 days following the Date of Agreement. Seller has 10 days following receipt of such documenta on to sa sfy itself with regard to Buyer's nancial condi on and to no fy Escrow Holder asto whether or not Buyer's nancial condi on is acceptable. If Seller failsto no fy Escrow Holder, in wri ng, of the disapproval of this con ngency within said me period, it shall be conclusively presumed that Seller has approved Buyer's nancial condi on. If Seller is notsa sed with Buyer's nancial condi on or if Buyer fails to deliver the required documenta on then Seller may no fy Escrow Holder in wri ng that Seller Financing will not be available, and Buyer shall have the op on, within 10 days of the receipt of such no ce, to either terminate this transac on or to purchase the Property without Seller nancing. If Buyer failsto no fy Escrow Holder within said me period of its elec on to terminate this transac on then Buyershall be conclusively presumed to have elected to purchase the Property without Seller nancing. If Buyer electsto terminate,

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Buyer's Deposit shall be refunded less Title Company and Escrow Holder cancella on fees and costs, all of which shall be Buyer's obliga on.

7. Real Estate Brokers. If a Party uses a broker, such broker shall not be considered a Party to the Agreement, all terms between a broker and a Party will be governed by separate agreement, and in no event is Seller responsible for payments of commissions should Buyer use a broker under separate agreement.

7.1 Each Party acknowledges receiving a Disclosure Regarding Real Estate Agency Rela onship, conrms and consentsto the following agency rela onshipsin thistransac on with the following real estate broker(s) ("Brokers") and/or their agents(“Agent(s)”):

Seller's Brokerage Firm N/A License No. is the broker of (check one): the Seller; or both the Buyer and Seller (dual agent).

Seller's Agent License No. is (check one): the Seller's Agent (salesperson or broker associate); or both the Seller's Agent and the Buyer's Agent (dual agent).

Buyer's Brokerage Firm N/A License No. is the broker of (check one): the Buyer; or both the Buyer and Seller (dual agent).

Buyer's Agent License No. is (check one): the Buyer's Agent (salesperson or broker associate); or both the Buyer's Agent and the Seller's Agent (dual agent).

The Par es acknowledge that other than the Brokers and Agentslisted above, there are no other brokers or agentsrepresen ng the Par es or due any fees and/or commissions under this Agreement. Buyer shall use the services of Buyer's Broker exclusively in connec on with any and all nego a ons and o ers with respect to the Property for a period of 1 year from the date inserted for reference purposes at the top of page 1.

7.2 Buyer and Seller each represent and warrant to the other that he/she/it has had no dealings with any person, rm, broker, agent or nder in connec on with the nego a on of this Agreement and/or the consumma on of the purchase and sale contemplated herein, other than the Brokers and Agents named in paragraph 7.1, and no broker, agent or other person, rm or en ty, other than said Brokers and Agents is/are en tled to any commission or nder's fee in connec on with this transac on as the result of any dealings or acts of such Party. Buyer and Seller do each hereby agree to indemnify, defend, protect and hold the other harmlessfrom and against any costs, expenses or liability for compensa on, commission or charges which may be claimed by any broker, agent, nder or othersimilar party, other than said named Brokers and Agents by reason of any dealings or act of the indemnifying Party.

8. Escrow and Closing.

8.1 Upon acceptance hereof by Seller, this Agreement, including any countero ers incorporated herein by the Par es, shall cons tute not only the agreement of purchase and sale between Buyer and Seller, but also instruc ons to Escrow Holder for the consumma on of the Agreement through the Escrow. Escrow Holder shall not prepare any further escrow instruc ons resta ng or amending the Agreement unlessspecically so instructed by the Par es or a Broker herein. Subject to the reasonable approval of the Par es, Escrow Holder may, however, include itsstandard general escrow provisions. In the event that there is any conict between the provisions of the Agreement and the provisions of any addi onal escrow instruc ons the provisions of the Agreementshall prevail as to the Par es and the Escrow Holder.

8.2 As soon as prac cal a er the receipt of this Agreement and any relevant countero ers, Escrow Holder shall ascertain the Date of Agreement as dened in paragraphs 1.2 and 20.2 and advise the Par es and Brokers, in wri ng, of the date ascertained.

8.3 Escrow Holder is hereby authorized and instructed to conduct the Escrow in accordance with this Agreement, applicable law and custom and prac ce of the community in which Escrow Holder is located, including any repor ng requirements of the Internal Revenue Code. In the event of a conict between the law of the state where the Property islocated and the law of the state where the Escrow Holder islocated, the law of the state where the Property is located shall prevail.

8.4 Subject to sa sfac on of the con ngencies herein described, Escrow Holder shall close this escrow (the "Closing") by recording a general warranty deed (a grant deed, substantially in the form of the grant deed attached to the Addendum as Attachment One, as may be modified to accommodate requirements of any exchange accommodator, in California) and the other documents required to be recorded, and by disbursing the funds and documentsin accordance with this Agreement.

8.5 Buyer and Seller shall each pay one half of the Escrow Holder's charges and Seller Buyer shall pay the usual recording fees and any required documentary transfer taxes. Seller shall pay the premium for a standard coverage owner's or joint protec on policy of tle insurance. (See also paragraph 11.)

8.6 Escrow Holdershall verify that all of Buyer's con ngencies have been sa sed or waived prior to Closing. The ma ers contained in paragraphs 9.1 subparagraphs (b), (c), (d), (e), (g), (i), (n), and (o), 9.4, 12, 13, 14, 16, 18, 20, 21, 22, and 24 are, however, ma ers of agreement between the Par es only and are not instruc onsto Escrow Holder.

8.7 If thistransac on isterminated for non sa sfac on and non waiver of a Buyer's Con ngency, as dened in paragraph 9.2 or disapproval of any other ma ersubject to Buyer's approval, then neither of the Par esshall therea er have any liability to the other under this Agreement, except to the extent of a breach of any a rma ve covenant or warranty in this Agreement. In the event of such termina on, Buyer shall,subject to the provisions of paragraph 8.10, be promptly refunded all funds deposited by Buyer with Escrow Holder, less only the $100 provided for in paragraph 4.4 and the Title Company and Escrow Holder cancella on fees and costs, all of which shall be Buyer's obliga on. If thistransac on is terminated as a result of Seller's breach of this Agreement then Sellershall pay the Title Company and Escrow Holder cancella on fees and costs.

8.8 The Closing shall occur on the Expected Closing Date, or assoon therea er asthe Escrow isin condi on for Closing; provided, however, that if the Closing does not occur by the Expected Closing Date and said Date is not extended by mutual instruc ons of the Par es, a Party not then in default under this Agreement may no fy the other Party, Escrow Holder, and Brokers, in wri ng that, unlessthe Closing occurs within 5 business days following said no ce, the Escrow shall be deemed terminated without further no ce or instruc ons.

8.9 Except as otherwise provided herein, the termina on of Escrow shall not relieve or release either Party from any obliga on to pay Escrow Holder'sfees and costs or cons tute a waiver, release or discharge of any breach or default that has occurred in the performance of the obliga ons, agreements, covenants or warran es contained therein.

8.10 If this Escrow is terminated for any reason other than Seller's breach or default, then as a condi on to the return of Buyer's deposit, Buyer shall within 5 days a er wri en request deliver to Seller, at no charge, copies of all surveys, engineering studies, soil reports, maps, master plans, feasibility studies and othersimilar items prepared by or for Buyer that pertain to the Property.

9. Con ngencies to Closing.

9.1 IF, BEFORE EXPIRATION OF THE APPLICABLE TIME, BUYER FAILS TO PROVIDE ESCROW HOLDER WRITTEN NOTICE OF BUYER'S DISAPPROVAL OF ANY OF

BUYER'S CONTINGENCIES OR ANY OTHER MATTER THAT IS SUBJECT TO BUYER'S APPROVAL IN THIS AGREEMENT, THEN BUYER SHALL BE CONCLUSIVELY DEEMED TO HAVE SATISFIED SUCH BUYER'S CONTINGENCIES AND/OR APPROVED OF SUCH OTHER MATTERS. If a number of daysis completed in any of the op onal spaces in subparagraphs 9.1 (a) through (m), then such number shall apply and override the pre printed number, even if the pre printed number is notstricken (collectively, "Buyer's Contingency Period"). The Closing of this transac on is con ngent upon the sa sfac on or waiver of the following con ngencies:

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(a) Disclosure. Seller shall make to Buyer, through Escrow, all of the applicable disclosures required by law (See AIR CRE ("AIR") standard form en tled "Seller's Mandatory Disclosure Statement") and provide Buyer with a completed Property Informa on Sheet ("Property Informa on Sheet") concerning the Property, duly executed by or on behalf of Seller in the current form or equivalent to that published by the AIR within 10 or days following the Date of Agreement.

Buyer has 10 days from the receipt of said disclosuresto approve or disapprove the ma ers disclosed. (b) Physical Inspec on. Buyer has 10 or 30 days following the receipt of the Property Informa on Sheet or the Date of Agreement, whichever islater, to sa sfy itself with regard to the physical aspects and size of the Property. (c) Hazardous Substance Condi ons Report. Buyer has 30 or days following the receipt of the Property Informa on Sheet or the Date of Agreement, whichever islater, to sa sfy itself with regard to the environmental aspects of the Property. Seller recommends that Buyer obtain a Hazardous Substance Condi ons Report concerning the Property and relevant adjoining proper es. Any such report shall be paid for by Buyer. A "Hazardous Substance" for purposes of this Agreement is dened as any substance whose nature and/or quan ty of existence, use, manufacture, disposal or e ect, render itsubject to Federal, state or local regula on, inves ga on, remedia on or removal as poten ally injuriousto public health or welfare. A "Hazardous Substance Condi on" for purposes of this Agreement is dened as the existence on, under or relevantly adjacent to the Property of a Hazardous Substance that would require remedia on and/or removal under applicable Federal, state or local law.
(d) Soil Inspec on. Buyer has 30 or days following the receipt of the Property Informa on Sheet or the Date of Agreement, whichever is later, to sa sfy itself with regard to the condi on of the soils on the Property. Seller recommends that Buyer obtain a soil test report. Any such report shall be paid for by Buyer. Seller shall provide Buyer copies of any soils report that Seller may have within 10 days following the Date of Agreement. (e) Governmental Approvals. Buyer has 30 or days following the Date of Agreement to sa sfy itself with regard to approvals and permits from governmental agencies or departments which have or may have jurisdic on over the Property and which Buyer deems necessary or desirable in connec on with itsintended use of the Property, including, but not limited to, permits and approvals required with respect to zoning, planning, building and safety, re, police, handicapped and Americans with Disabili es Act requirements, transporta on and environmental ma ers. (f) Condi ons of Title. Escrow Holder shall cause a current commitment for tle insurance ("Title Commitment") concerning the Property issued by the Title Company, as well aslegible copies of all documents referred to in the Title Commitment ("Underlying Documents"), and a scaled and dimensioned plot showing the loca on of any easements to be delivered to Buyer within 10 or days following the Date of Agreement. Buyer has 10 days from the receipt of the Title Commitment, the Underlying Documents and the plot plan to sa sfy itself with regard to the condi on of tle. The disapproval by Buyer of any monetary encumbrance, which by the terms of this Agreement is not to remain against the Property a er the Closing,shall not be considered a failure of this con ngency, as Sellershall have the obliga on, at Seller's expense, to sa sfy and remove such disapproved monetary encumbrance at or before the Closing. (g) Survey. Buyer has 30 or days following the Date of Agreement receipt of the Title Commitment and Underlying Documents to sa sfy itself with regard to any ALTA tle supplement based upon a survey prepared to American Land Title Associa on ("ALTA") standards for an owner's policy by a licensed surveyor, showing the legal descrip on and boundary lines of the Property, any easements of record, and any improvements, poles, structures and thingslocated within 10 feet of eitherside of the Property boundary lines. Any such survey shall be prepared at Buyer's direc on and expense. If Buyer has obtained a survey and approved the ALTA tle supplement, Buyer may elect within the period allowed for Buyer's approval of a survey to have an ALTA extended coverage owner'sform of tle policy, in which event Buyershall pay any addi onal premium a ributable thereto. (h) Exis ng Leases and Tenancy Statements. Seller shall within 10 or days following the Date of Agreement provide both Buyer and Escrow Holder with legible copies of all leases, subleases or rental arrangements (collec vely, "Exis ng Leases") a ec ng the Property., and with a tenancy statement ("Estoppel Cer cate") in the latest form or equivalent to that published by the AIR, executed by Seller and/or each tenant and subtenant of the Property. Sellershall use its best e orts to have each tenant complete and execute an Estoppel Cer cate. If any tenant fails or refuses to provide an Estoppel Cer cate then Seller shall complete and execute an Estoppel Cer cate for that tenancy. Buyer has 10 days from the receipt of said Exis ng Leases and Estoppel Cer catesto sa sfy itself with regard to the Exis ng Leases and any other tenancy issues. See Addendum at Paragraph 30. (i) Owner's Associa on. Seller shall within 10 or days following the Date of Agreement provide Buyer with a statement and transfer package from any owner's associa on servicing the Property. Such transfer package shall at a minimum include: copies of the associa on's bylaws, ar cles of incorpora on, current budget and nancial statement. Buyer has 10 days from the receipt of such documents to sa sfy itself with regard to the associa on. (j) Other Agreements. Seller shall within 10 or 5 days following the Date of Agreement provide Buyer with legible copies of all other agreements("Other Agreements") known to Seller that will a ect the Property a er Closing. Buyer has 10 daysfrom the receipt of said Other Agreementsto sa sfy itself with regard to such Agreements.
(k) Financing. If paragraph 5 hereof dealing with a nancing con ngency has not been stricken, the sa sfac on or waiver of such New Loan con ngency. (l) Exis ng Notes. If paragraph 3.1(c) has not been stricken, Seller shall within 10 or days following the Date of Agreement provide Buyer with legible copies of the Exis ng Notes, Exis ng Deeds of Trust and related agreements (collec vely, "Loan Documents") to which the Property will remain subject a er the Closing. Escrow Holdershall promptly request from the holders of the Exis ng Notes a beneciary statement ("Beneciary Statement") conrming: (1) the amount of the unpaid principal balance, the current interest rate, and the date to which interest is paid, and (2) the nature and amount of any impounds held by the beneciary in connec on with such loan. Buyer has 10 or days following the receipt of the Loan Documents and Beneciary Statements to sa sfy itself with regard to such nancing. Buyer's obliga on to close is condi oned upon Buyer being able to purchase the Property without accelera on or change in the terms of any Exis ng Notes or chargesto Buyer except as otherwise provided in this Agreement or approved by Buyer, provided, however, Buyershall pay the transfer fee referred to in paragraph 3.2 hereof. Likewise if Seller is to carry back a Purchase Money Note then Seller shall within 10 or days following the Date of Agreement provide Buyer with a copy of the proposed Purchase Money Note and Purchase Money Deed of Trust. Buyer has 10 or days following the receipt of such documents to sa sfy itself with regard to the form and content thereof. (m) Personal Property. None included. In the event that any personal property is included in the Purchase Price, Buyer has 10 or days following the Date of Agreement to sa sfy itself with regard to the tle condi on of such personal property. Seller recommends that Buyer obtain a UCC 1 report.

Any such report shall be paid for by Buyer. Seller shall provide Buyer copies of any liens or encumbrances a ec ng such personal property that it is aware of within 10 or days following the Date of Agreement.
(n) Destruc on, Damage or Loss. Subsequent to the Date of Agreement and prior to Closing there shall not have occurred a destruc on of, or damage or lossto, the Property or any por on thereof, from any cause whatsoever, which would cost more than $100,000.0010,000.00 to repair or cure. If the cost of repair or cure is $10,000.00100,000.00 or less, Seller shall repair or cure the loss prior to the Closing. For repairs costing more than $100,000 in which Seller elects not to repair, Buyer shall have the op on, within 10 days a er receipt of wri en no ce of a loss cos ng more than $100,000.0010,000.00 to repair or cure, to either terminate this Agreement or to purchase the Property notwithstanding such loss, but without deduc on or o set against the Purchase Price. If the cost to repair or cure is more than $10,000.00100,000.00, and Buyer does not elect to terminate this Agreement, Buyer shall be en tled to any insurance proceeds applicable to such

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loss. Unless otherwise no ed in wri ng, Escrow Holder shall assume no such destruc on, damage or loss has occurred prior to Closing. (o) Material Change. Buyer shall have 10 daysfollowing receipt of wri en no ce of a Material Change within which to sa sfy itself with regard to such change. "Material Change" shall mean a substan al adverse change in the use, occupancy, tenants, tle, or condi on of the Property that occurs a er the date of this o er and prior to the Closing. Unless otherwise no ed in wri ng, Escrow Holder shall assume that no Material Change has occurred prior to the Closing. (p) Seller Performance. The delivery of all documents and the due performance by Seller of each and every undertaking and agreement to be performed by Seller under this Agreement.
(q) Brokerage Fee. Payment at the Closing of such brokerage fee as is specied in this Agreement or later wri en instruc onsto Escrow Holder executed by Seller and Brokers ("Brokerage Fee"). It is agreed by the Par es and Escrow Holder that Brokers are a third party beneciary of this Agreement insofar as the Brokerage Fee is concerned, and that no change shall be made with respect to the payment of the Brokerage Fee specied in this Agreement, without the wri en consent of Brokers.
(r) Determination from Planning Commission Regarding Conformance with General Plan and approval of a Conditional Use Permit for Public Parking. Buyer's purchase of the property and close of escrow is contingent on a determination by the City of San Luis Obispo's Planning COmmission that the acquisition of the Property conforms to the General Plan and approval of a Conditional Use Permit to allow paid public parking on the Property. (s) Grant Deed. See Paragraph 28 of Addendum to Purchase and Sale Agreement regarding soil contamination.

9.2 The con ngencies specied in subparagraphs 9.1(a) through (m) are for the benet of, and may be waived by, Buyer, and are referred to collec vely as "Buyer's Con ngencies" and individually as a "Buyer's Con ngency."

9.3 Buyer's mely and wri en disapproval or condi onal approval of a Buyer's Con ngency or any other ma er that is subject to Buyer's approval in this Agreementshall cons tute disapproval thereof ("Disapproved Item(s)"). Concurrent with no ce of a Disapproved Item, Buyer may make a request to Seller regarding such Disapproved Item ("Buyer's Request"). If Buyer fails to make a mely and wri en Buyer's Request, then this Agreementshall terminate due to the non sa sfac on and non waiver of a con ngency. Seller may respond to a Buyer's Request within 10 days following Seller's receipt thereof ("Seller's Response").

Seller's acceptance of a Buyer's Request shall amend this Agreement accordingly. If Seller failsto provide a mely and wri en Seller's Response, then Seller's Response shall be deemed to be a rejec on of Buyer's Request. Buyer may, within 10 daysfollowing the earlier of Buyer'sreceipt of a Seller's Response (which is not an acceptance of Buyer's Request) or the date of Seller's deemed rejec on of a Buyer's Request ("Buyer's Reply Period"), reply to a Seller's Response ("Buyer's Reply") and elect to (i) terminate this Agreement due to the non sa sfac on and non waiver of the applicable con ngency, (ii) accept the Seller's Response in which event this Agreement shall be amended accordingly, or (iii) withdraw Buyer's Request and waive the Disapproved Item in which event Buyer shall accept the Property subject to the Disapproved Item. If Buyer fails to provide a mely and wri en Buyer's Reply, then Buyer shall be deemed to have elected to terminate this Agreement as of the end of the Buyer's Reply Period. The date Buyer accepts a Seller's Response or withdraws a Buyer's Request and waives a Disapproved Item shall be the date of Buyer's approval of the Disapproved Item. A Party shall provide to Escrow Holder copy of all no ces of a Disapproved Item, Buyer's Request, Seller's Response and Buyer's Reply and Escrow Holder shall promptly provide copies thereof to the other Party. Unless the Par esin wri ng agree otherwise, if the Expected Closing Date is a specic calendar date and a Buyer's Reply Period expires a ersuch specic calendar date, then notwithstanding paragraph 1.1, the Expected Closing Date shall be extended to be 3 business days a er the earlier of the date Buyer withdraws a Buyer's Request and waives the applicable Disapproved Item or Buyer accepts the applicable Seller's Response.

9.4 The Par es acknowledge that extensive local, state and Federal legisla on establish broad liability upon owners and/or users of real property for the inves ga on and remedia on of Hazardous Substances. The determina on of the existence of a Hazardous Substance Condi on and the evalua on of the impact of such a condi on are highly technical and beyond the exper se of Brokers. The Par es acknowledge that they have been advised by Brokers to consult their own technical and legal experts with respect to the possible presence of Hazardous Substances on the Property or adjoining proper es, and Buyer and Seller are not relying upon any inves ga on by orstatement of Brokers with respect thereto. The Par es hereby assume all responsibility for the impact of such Hazardous Substances upon their respec ve interests herein.

10. Documents andOther Items Required at or Before Closing.

10.1 Five days prior to the Closing date Escrow Holder shall obtain an updated Title Commitment concerning the Property from the Title Company and provide copiesthereof to each of the Par es.

10.2 Seller shall deliver to Escrow Holder in me for delivery to Buyer at the Closing:
(a) Grant or general warranty deed, duly executed and in recordable form, conveying fee tle to the Property to Buyer. (b) If applicable, the Beneciary Statements concerning Exis ng Note(s). (c) If applicable, the Exis ng Leases and Other Agreementstogether with duly executed assignments thereof by Seller and Buyer. The assignment of Exis ng Leases shall be on the most recent Assignment and Assump on of Lessor'sInterest in Lease form published by the AIR or its equivalent. (d) An a davit executed by Seller to the e ect that Seller is not a "foreign person" within the meaning of Internal Revenue Code Sec on 1445 or successorstatutes. If Seller does not provide such a davit in form reasonably sa sfactory to Buyer at least 3 business days prior to the Closing, Escrow Holdershall at the Closing deduct from Seller's proceeds and remit to the Internal Revenue Service such sum as isrequired by applicable Federal law with respect to purchases from foreign sellers.
(e) If the Property is located in California, an a davit executed by Seller to the e ect that Seller is not a ''nonresident" within the meaning of California Revenue and Tax Code Sec on 18662 or successor statutes. If Seller does not provide such a davit in form reasonably sa sfactory to Buyer at least 3 business days prior to the Closing, Escrow Holder shall at the Closing deduct from Seller's proceeds and remit to the Franchise Tax Board such sum as isrequired by such statute. (f) If applicable, a bill of sale, duly executed, conveying tle to any included personal property to Buyer. (g) If the Seller is a corpora on, a duly executed corporate resolu on authorizing the execu on of this Agreement and the sale of the Property.

10.3 Buyer shall deliver to Seller through Escrow:
(a) The cash por on of the Purchase Price and such addi onal sums as are required of Buyer under this Agreement shall be deposited by Buyer with Escrow Holder, by federal funds wire transfer, or any other method acceptable to Escrow Holder in immediately collectable funds, no later than 2:00 P.M. on the business day prior to the Expected Closing Date provided, however, that Buyershall not be required to depositsuch moniesinto Escrow if at the me set for the deposit of such monies Seller isin default or hasindicated that it will not perform any of its obliga ons hereunder. Instead, in such circumstances in order to reserve itsrights to proceed Buyer need only provide Escrow with evidence establishing that the required monies were available. (b) If a Purchase Money Note and Purchase Money Deed of Trust are called for by this Agreement, the duly executed originals of those documents, the Purchase Money Deed of Trust being in recordable form, together with evidence of re insurance on the improvementsin the amount of the full replacement cost naming Seller as a mortgage loss payee, and a real estate tax service contract (at Buyer's expense), assuring Seller of no ce of the status of payment of real property taxes during the life of the Purchase Money Note.
(c) The Assignment and Assump on of Lessor'sInterest in Lease form specied in paragraph 10.2(c) above, duly executed by Buyer. (d) Assump ons duly executed by Buyer of the obliga ons of Seller that accrue a er Closing under any Other Agreements.

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(e) If applicable, a wri en assump on duly executed by Buyer of the loan documents with respect to Exis ng Notes. (f) If the Buyer is a corpora on, a duly executed corporate resolu on authorizing the execu on of this Agreement and the purchase of the Property.

10.4 At Closing, Escrow Holder shall cause to be issued to Buyer a standard coverage (or ALTA extended, if elected pursuant to 9.1(g)) owner's form policy of tle insurance e ec ve as of the Closing, issued by the Title Company in the full amount of the Purchase Price, insuring tle to the Property vested in Buyer,subject only to the excep ons approved by Buyer. In the event there is a Purchase Money Deed of Trust in this transac on, the policy of tle insurance shall be a joint protec on policy insuring both Buyer and Seller.

IMPORTANT: IN A PURCHASE OR EXCHANGE OF REAL PROPERTY, IT MAY BE ADVISABLE TO OBTAIN TITLE INSURANCE IN CONNECTION WITH THE CLOSE OF ESCROW SINCE THERE MAY BE PRIOR RECORDED LIENS AND ENCUMBRANCES WHICH AFFECT YOUR INTEREST IN THE PROPERTY BEING ACQUIRED. A NEW POLICY OF TITLE INSURANCE SHOULD BE OBTAINED IN ORDER TO ENSURE YOUR INTEREST IN THE PROPERTY THAT YOU ARE ACQUIRING.

11. Prora ons and Adjustments.

11.1 Taxes. Applicable real property taxes and special assessment bonds shall be prorated through Escrow as of the date of the Closing, based upon the latest tax bill available. The Par es agree to prorate as of the Closing any taxes assessed against the Property by supplemental bill levied by reason of events occurring prior to the Closing. Payment of the prorated amount shall be made promptly in cash upon receipt of a copy of any supplemental bill.

11.2 Insurance. WARNING: Any insurance which Seller may have maintained will terminate on the Closing. Buyer is advised to obtain appropriate insurance to cover the Property.

11.3 Rentals, Interest and Expenses. Scheduled rentals, interest on Exis ng Notes, u li es, and opera ng expenses shall be prorated as of the date of Closing.

The Par es agree to promptly adjust between themselves outside of Escrow any rentsreceived a er the Closing.

11.4 Security Deposit. Security Deposits held by Sellershall be given to Buyer as a credit to the cash required of Buyer at the Closing.

11.5 Post Closing Ma ers. Any item to be prorated that is not determined or determinable at the Closing shall be promptly adjusted by the Par es by appropriate cash payment outside of the Escrow when the amount due is determined.

11.6 Varia ons in Exis ng Note Balances. In the event that Buyer is purchasing the Property subject to an Exis ng Deed of Trust(s), and in the event that a Beneciary Statement asto the applicable Exis ng Note(s) discloses that the unpaid principal balance of such Exis ng Note(s) at the closing will be more or less than the amount set forth in paragraph 3.1(c) hereof ("Exis ng Note Varia on"), then the Purchase Money Note(s) shall be reduced or increased by an amount equal to such Exis ng Note Varia on. If there isto be no Purchase Money Note, the cash required at the Closing per paragraph 3.1(a) shall be reduced or increased by the amount of such Exis ng Note Varia on.

11.7 Varia ons in New Loan Balance. In the event Buyer is obtaining a New Loan and the amount ul mately obtained exceeds the amountset forth in paragraph 5.1, then the amount of the Purchase Money Note, if any, shall be reduced by the amount of such excess.

11.8 Owner's Associa on Fees. Escrow Holder shall: (i) bring Seller's account with the associa on current and pay any delinquencies or transfer feesfrom Seller's proceeds, and (ii) pay any up front fees required by the associa on from Buyer's funds.

12. Representa ons and Warran es of Seller and Disclaimers.

12.1 Seller's warran es and representa ons shall survive the Closing and delivery of the deed for a period of 3 years, and any lawsuit or ac on based upon them must be commenced within such me period. Seller's warran es and representa ons are true, material and relied upon by Buyer and Brokersin all respects. Seller hereby makes the following warran es and representa ons to Buyer and Brokers:
(a) Authority of Seller. Seller is the owner of the Property and/or has the full right, power and authority to sell, convey and transfer the Property to Buyer as provided herein, and to perform Seller's obliga ons hereunder. (b) Maintenance During Escrow and Equipment Condi on At Closing. Except as otherwise provided in paragraph 9.1(n) hereof, Sellershall maintain the Property un l the Closing in its present condi on, ordinary wear and tear excepted. (c) Hazardous Substances/Storage Tanks. Seller has no knowledge, except as otherwise disclosed to Buyer in wri ng, of the existence or prior existence on the Property of any Hazardous Substance, nor of the existence or prior existence of any above or below ground storage tank. See Addendum at Paragraph 28. (d) Compliance. Except as otherwise disclosed in wri ng, Seller has no knowledge of any aspect or condi on of the Property which violates applicable laws, rules, regula ons, codes or covenants, condi ons or restric ons, or of improvements or altera ons made to the Property without a permit where one was required, or of any unfullled order or direc ve of any applicable governmental agency or casualty insurance company requiring any inves ga on, remedia on, repair, maintenance or improvement be performed on the Property. (e) Changes in Agreements. Prior to the Closing, Seller will not violate or modify any Exis ng Lease or Other Agreement, or create any new leases or other agreements a ec ng the Property, without Buyer's wri en approval, which approval will not be unreasonably withheld. (f) Possessory Rights. Seller has no knowledge that anyone will, at the Closing, have any right to possession of the Property, except as disclosed by this Agreement or otherwise in wri ng to Buyer.
(g) Mechanics' Liens. There are no unsa sed mechanics' or materialmens' lien rights concerning the Property. (h) Ac ons, Suits or Proceedings. Seller has no knowledge of any ac ons, suits or proceedings pending or threatened before any commission, board, bureau, agency, arbitrator, court or tribunal that would a ect the Property or the right to occupy or u lize same. (i) No ce of Changes. Seller will promptly no fy Buyer and Brokers in wri ng of any Material Change (see paragraph 9.1(o)) a ec ng the Property that becomes known to Seller prior to the Closing.
(j) No Tenant Bankruptcy Proceedings. Seller has no no ce or knowledge that any tenant of the Property isthe subject of a bankruptcy or insolvency proceeding.
(k) No Seller Bankruptcy Proceedings. Seller is not the subject of a bankruptcy, insolvency or probate proceeding. (l) Personal Property. Seller has no knowledge that anyone will, at the Closing, have any right to possession of any personal property included in the Purchase Price nor knowledge of any liens or encumbrances a ec ng such personal property, except as disclosed by this Agreement or otherwise in wri ng to Buyer.

12.2 Buyer hereby acknowledgesthat, except as otherwise stated in this Agreement, Buyer is purchasing the Property in its exis ng condi on and will, by the me called for herein, make or have waived all inspec ons of the Property Buyer believes are necessary to protect its own interest in, and its contemplated use of, the Property. The Par es acknowledge that, except as otherwise stated in this Agreement, no representa ons, inducements, promises, agreements, assurances, oral or wri en, concerning the Property, or any aspect of the occupa onal safety and health laws, Hazardous Substance laws, or any other act, ordinance or law, have been made by either Party or Brokers, or relied upon by either Party hereto. See Addendum at Paragraph 29.

12.3 In the event that Buyer learns is informed in writing that a Seller representa on or warranty might be untrue prior to the Closing, and Buyer electsto purchase the Property anyway then, and in that event, Buyer waives any right that it may have to bring an ac on or proceeding against Seller or Brokersregarding said representa on or warranty.

12.4 Any environmental reports, soils reports, surveys, and othersimilar documents which were prepared by third party consultants and provided to Buyer by

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Seller or Seller'srepresenta ves, have been delivered as an accommoda on to Buyer and without any representa on or warranty as to the su ciency, accuracy, completeness, and/or validity of said documents, all of which Buyer relies on at its own risk. Seller believes said documents to be accurate, but Buyer is advised to retain appropriate consultantsto review said documents and inves gate the Property.

13. Possession.

Possession of the Property shall be given to Buyer at the Closing subject to the rights of tenants under Exis ng Leases. See Paragraph 30 of Addendum to Purchase and Sale Agreement.

14. Buyer's Entry.

At any me during the Escrow period, Buyer, and its agents and representa ves, shall have the right at reasonable mes and subject to rights of tenants, to enter upon the Property for the purpose of making inspec ons and testsspecied in this Agreement. No destruc ve tes ng shall be conducted, however, without Seller's prior approval which shall not be unreasonably withheld. Following any such entry or work, unless otherwise directed in wri ng by Seller, Buyer shall return the Property to the condi on it was in prior to such entry or work, including the re compac on or removal of any disrupted soil or material as Seller may reasonably direct. All such inspec ons and tests and any other work conducted or materials furnished with respect to the Property by or for Buyershall be paid for by Buyer as and when due and Buyer shall indemnify, defend, protect and hold harmless Seller and the Property of and from any and all claims, liabili es, losses, expenses(including reasonable a orneys' fees), damages, including those for injury to person or property, arising out of or rela ng to any such work or materials or the acts or omissions of Buyer, its agents or employeesin connec on therewith.

15. Further Documents and Assurances.

The Par es shall each, diligently and in good faith, undertake all ac ons and procedures reasonably required to place the Escrow in condi on for Closing as and when required by this Agreement. The Par es agree to provide all further informa on, and to execute and deliver all further documents, reasonably required by Escrow Holder or the Title Company.

16. A orneys' Fees.

If any Party or Broker brings an ac on or proceeding (including arbitra on) involving the Property whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as herea er dened) in any such proceeding, ac on, or appeal thereon, shall be en tled to reasonable a orneys' fees and costs. Such fees may be awarded in the same suit or recovered in a separate suit, whether or notsuch ac on or proceeding is pursued to decision or judgment. The term "Prevailing Party" shall include, without limita on, a Party or Broker who substan ally obtains or defeatsthe relief sought, as the case may be, whether by compromise, se lement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The a orneys' fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all a orneys' feesreasonably incurred.

17. Prior Agreements/Amendments.

17.1 This Agreementsupersedes any and all prior agreements between Seller and Buyer regarding the Property.

17.2 Amendments to this Agreement are e ec ve only if made in wri ng and executed by Buyer and Seller.

18. Broker's Rights.

18.1 If thissale is not consummated due to the default of either the Buyer or Seller, the defaul ng Party shall be liable to and shall pay to Brokers the Brokerage Fee that Brokers would have received had the sale been consummated. If Buyer isthe defaul ng party, payment of said Brokerage Fee is in addi on to any obliga on with respect to liquidated or other damages.

18.2 Upon the Closing, Brokers are authorized to publicize the facts of thistransac on.

19. No ces.

19.1 Whenever any Party, Escrow Holder or Brokers herein shall desire to give or serve any no ce, demand, request, approval, disapproval or other communica on, each such communica on shall be in wri ng and shall be delivered personally, by messenger, or by mail, postage prepaid, to the address set forth in this agreement or by facsimile transmission, electronic signature, digital signature, or email.

19.2 Service of any such communica on shall be deemed made on the date of actual receipt if personally delivered, or transmi ed by facsimile transmission, electronic signature, digital signature, or email. Any such communica on sent by regular mail shall be deemed given 48 hours a er the same is mailed.

Communica ons sent by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed delivered 24 hours a er delivery of the same to the Postal Service or courier. If such communica on isreceived on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.

19.3 Any Party or Broker hereto may from me to me, by no ce in wri ng, designate a di erent address to which, or a di erent person or addi onal persons to whom, all communica ons are therea er to be made.

20. Dura on of O er.

20.1 If this o er is not accepted by Seller on or before 5:00 P.M. according to the me standard applicable to the city of San Luis Obispo on the date of November 27, 2023 , it shall be deemed automa cally revoked.

20.2 The acceptance of this o er, or of any subsequent countero er hereto, that creates an agreement between the Par es as described in paragraph 1.2, shall be deemed made upon delivery to the other Party or either Broker herein of a duly executed wri ng uncondi onally accep ng the last outstanding o er or countero er.

21. LIQUIDATED DAMAGES. (This Liquidated Damages paragraph is applicable only if ini aled by both Par es).

THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, PRIOR TO SIGNING THIS AGREEMENT, THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY SELLER IF BUYER FAILS TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT. THEREFORE, IF, AFTER THE SATISFACTION OR WAIVER

OF ALL CONTINGENCIES PROVIDED FOR THE BUYER'S BENEFIT, BUYER BREACHES THIS AGREEMENT, SELLER SHALL BE ENTITLED TO LIQUIDATED DAMAGES IN THE AMOUNT OF . UPON PAYMENT OF SAID SUM TO SELLER, BUYER SHALL BE RELEASED FROM ANY FURTHER LIABILITY TO SELLER, AND ANY ESCROW CANCELLATION FEES AND TITLE COMPANY CHARGES SHALL BE PAID BY SELLER.

Buyer'sIni als Seller'sIni als

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22. ARBITRATION OF DISPUTES. N/A (This Arbitra on of Disputes paragraph is applicable only if ini aled by both Par es.)

22.1 ANY CONTROVERSY AS TO WHETHER SELLER IS ENTITLED TO LIQUIDATED DAMAGES AND/OR BUYER IS ENTITLED TO THE RETURN OF THE DEPOSIT SHALL BE DETERMINED BY BINDING ARBITRATION ADMINISTERED BY THE JUDICIAL ARBITRATION & MEDIATION SERVICES, INC. ("JAMS") IN ACCORDANCE WITH ITS COMMERCIAL ARBITRATION RULES ("COMMERCIAL RULES"). ARBITRATION HEARINGS SHALL BE HELD IN THE COUNTY WHERE THE PROPERTY IS LOCATED.

SUCH CONTROVERSY SHALL BE ARBITRATED BY A SINGLE ARBITRATOR, APPOINTED UNDER THE COMMERCIAL RULES WHO HAS HAD AT LEAST 5 YEARS OF EXPERIENCE IN THE TYPE OF REAL ESTATE THAT IS THE SUBJECT OF THIS AGREEMENT. THE ARBITRATOR SHALL HEAR AND DETERMINE SAID CONTROVERSY IN

ACCORDANCE WITH APPLICABLE LAW OF THE JURISDICTION WHERE THE PROPERTY IS LOCATED, THE INTENTION OF THE PARTIES AS EXPRESSED IN THIS AGREEMENT AND ANY AMENDMENTS THERETO, AND UPON THE EVIDENCE PRODUCED AT AN ARBITRATION HEARING. PRE ARBITRATION DISCOVERY SHALL BE PERMITTED IN ACCORDANCE WITH THE COMMERCIAL RULES OR STATE LAW APPLICABLE TO ARBITRATION PROCEEDINGS. THE ARBITRATOR SHALL RENDER AN AWARD WITHIN 30 DAYS AFTER THE CONCLUSION OF THE HEARING, WHICH MAY INCLUDE ATTORNEYS' FEES AND COSTS TO THE PREVAILING PARTY PER PARAGRAPH 16 HEREOF AND SHALL BE ACCOMPANIED BY A REASONED OPINION. THE FAILURE OR REFUSAL OF A PARTY TO PAY SUCH PARTY'S REQUIRED SHARE

OF THE DEPOSITS FOR ARBITRATOR COMPENSATION OR ADMINISTRATIVE CHARGES SHALL CONSTITUTE A WAIVER BY SUCH PARTY TO PRESENT EVIDENCE OR

CROSS EXAMINE WITNESSES, BUT SUCH WAIVER SHALL NOT ALLOW FOR A DEFAULT JUDGMENT AGAINST THE NON PAYING PARTY IN THE ABSENCE OF EVIDENCE AND LEGAL ARGUMENT AS THE ARBITRATOR MAY REQUIRE FOR MAKING AN AWARD. JUDGMENT MAY BE ENTERED ON THE AWARD IN ANY COURT OF COMPETENT JURISDICTION NOTWITHSTANDING THE FAILURE OF A PARTY DULY NOTIFIED OF THE ARBITRATION HEARING TO APPEAR THEREAT.

22.2 BUYER'S RESORT TO OR PARTICIPATION IN SUCH ARBITRATION PROCEEDINGS SHALL NOT BAR SUIT IN A COURT OF COMPETENT JURISDICTION BY THE

BUYER FOR DAMAGES AND/OR SPECIFIC PERFORMANCE UNLESS AND UNTIL THE ARBITRATION RESULTS IN AN AWARD TO THE SELLER OF LIQUIDATED DAMAGES, IN WHICH EVENT SUCH AWARD SHALL ACT AS A BAR AGAINST ANY ACTION BY BUYER FOR DAMAGES AND/OR SPECIFIC PERFORMANCE.

22.3 NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.

WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE "ARBITRATION OF DISPUTES" PROVISION TO NEUTRAL ARBITRATION.

Buyer'sIni als Seller'sIni als

23. Miscellaneous.

23.1 Binding E ect. This Agreementshall be binding on the Par es without regard to whether or not paragraphs 21 and 22 are ini aled by both of the Par es.

Paragraphs 21 and 22 are each incorporated into this Agreement only if ini aled by both Par es at the me that the Agreement is executed. Signatures to this Agreement accomplished by means of electronic signature orsimilar technology shall be legal and binding.

23.2 Applicable Law. This Agreementshall be governed by, and paragraph 22.3 is amended to refer to, the laws of the state in which the Property islocated.

Any li ga on or arbitra on between the Par es hereto concerning this Agreement shall be ini ated in the county in which the Property islocated.

23.3 Time of Essence. Time is of the essence of this Agreement.

23.4 Counterparts. This Agreement may be executed by Buyer and Seller in counterparts, each of which shall be deemed an original, and all of which together shall cons tute one and the same instrument. Escrow Holder, a er verifying that the counterparts are iden cal except for the signatures, is authorized and instructed to combine the signed signature pages on one of the counterparts, which shall then cons tute the Agreement.

23.5 Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.

23.6 Conict. Any conict between the printed provisions of this Agreement and the typewri en or handwri en provisions shall be controlled by the typewri en or handwri en provisions. Seller and Buyer must ini al any and all handwri en provisions.

23.7 1031 Exchange. Both Seller and Buyer agree to cooperate with each other in the event that either or both wish to par cipate in a 1031 exchange. Any party ini a ng an exchange shall bear all costs of such exchange. The coopera ng Party shall not have any liability (special or otherwise) for damagesto the exchanging Party in the event that the sale is delayed and/or that the sale otherwise fails to qualify as a 1031 exchange.

23.8 Days. Unless otherwise specically indicated to the contrary, the word "days" as used in this Agreementshall mean and refer to calendar days.

24. Disclosures Regarding The Nature of a Real Estate Agency Rela onship.

24.1 The Par es and Brokers agree that their rela onship(s) shall be governed by the principles set forth in the applicable sec ons of the California Civil Code, as summarized in paragraph 24.2.

24.2 When entering into a discussion with a real estate agent regarding a real estate transac on, a Buyer or Seller should from the outset understand what type of agency rela onship or representa on it has with the agent or agentsin the transac on. Buyer and Seller acknowledge being advised by the Brokersin this transac on, as follows:
(a) Seller's Agent. A Seller's agent under a lis ng agreement with the Seller acts as the agent for the Seller only. A Seller's agent orsubagent hasthe following a rma ve obliga ons: (1) To the Seller: A duciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller. (2) To the Buyer and the Seller: a. Diligent exercise of reasonable skills and care in performance of the agent's du es. b. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially a ec ng the value or desirability of the property that are not known to, or within the diligent a en on and observa on of, the Par es. An agent is not obligated to reveal to either Party any conden al informa on obtained from the other Party which does not involve the a rma ve du es set forth above.
(b) Buyer's Agent. A selling agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situa ons, the agent is not the Seller's agent, even if by agreement the agent may receive compensa on for servicesrendered, either in full or in part from the Seller. An agent ac ng only for a Buyer has the following a rma ve obliga ons. (1) To the Buyer: A duciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer. (2) To the Buyer and the Seller: a. Diligent exercise of reasonable skills and care in performance of the agent's du es. b. A duty of honest and fair dealing and good faith. c. A duty to disclose all facts known to the agent materially a ec ng the value or desirability of the property that are not known to, or within the diligent a en on and

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observa on of, the Par es. An agent is not obligated to reveal to either Party any conden al informa on obtained from the other Party which does not involve the a rma ve du es set forth above.
(c) Agent Represen ng Both Seller and Buyer. A real estate agent, either ac ng directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transac on, but only with the knowledge and consent of both the Seller and the Buyer. (1) In a dual agency situa on, the agent has the following a rma ve obliga onsto both the Seller and the Buyer: a. A duciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Seller or the Buyer. b. Other du es to the Seller and the Buyer asstated above in their respec ve sec ons (a) or (b) of this paragraph 24.2. (2) In represen ng both Seller and Buyer, the agent may not, without the express permission of the respec ve Party, disclose to the other Party conden al informa on, including, but not limited to, facts rela ng to either Buyer's or Seller's nancial posi on, mo va ons, bargaining posi on, or other personal informa on that may impact price, including Seller's willingnessto accept a price lessthan the lis ng price or Buyer's willingnessto pay a price greater than the price o ered. (3) The above du es of the agent in a real estate transac on do not relieve a Seller or Buyer from the responsibility to protect their own interests. Buyer and Sellershould carefully read all agreementsto assure that they adequately express their understanding of the transac on. A real estate agent is a person qualied to advise about real estate. If legal or tax advice is desired, consult a competent professional. Buyer hasthe duty to exercise reasonable care to protect Buyer, including asto those facts about the Property which are known to Buyer or within Buyer's diligent a en on and observa on. Both Seller and Buyershould strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transac on can be complex and subject to change. (d) Further Disclosures. Throughout thistransac on Buyer and Seller may receive more than one disclosure, depending upon the number of agents assis ng in the transac on. Buyer and Sellershould each read its contents each me it is presented, considering the rela onship between them and the real estate agent in thistransac on and that disclosure. Buyer and Seller each acknowledge receipt of a disclosure of the possibility of mul ple representa on by the Broker represen ng that principal. This disclosure may be part of a lis ng agreement, buyer representa on agreement orseparate document. Buyer understands that Broker represen ng Buyer may also represent other poten al buyers, who may consider, make o ers on or ul mately acquire the Property. Seller understands that Broker represen ng Seller may also represent other sellers with compe ng proper es that may be of interest to this Buyer. Brokers have no responsibility with respect to any default or breach hereof by either Party. The Par es agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission rela ng to thistransac on may be brought against Broker more than one year a er the Date of Agreement and that the liability (including court costs and a orneys' fees), of any Broker with respect to any breach of duty, error or omission rela ng to this Agreementshall not exceed the fee received by such Broker pursuant to this Agreement; provided, however, that the foregoing limita on on each Broker'sliability shall not be applicable to any gross negligence or willful misconduct of such Broker.

24.3 Conden al Informa on. Buyer and Seller agree to iden fy to Brokers as "Conden al" any communica on or informa on given Brokers that is considered by such Party to be conden al.

25. Construc on of Agreement. In construing this Agreement, all headings and tles are for the convenience of the Par es only and shall not be considered a part of this Agreement. Whenever required by the context, the singular shall include the plural and vice versa. This Agreement shall not be construed as if prepared by one of the Par es, but rather according to its fair meaning as a whole, asif both Par es had prepared it.

26. Addi onal Provisions.

Addi onal provisions of this o er, if any, are as follows or are a ached hereto by an addendum or addenda consis ng of paragraphs 28 through 32 . (If there are no addi onal provisions write "NONE".) ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY AIR CRE OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS AGREEMENT OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS AGREEMENT.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PROPERTY. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PROPERTY, THE INTEGRITY AND CONDITION OF ANY STRUCTURES AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PROPERTY FOR BUYER'S INTENDED USE.

WARNING: IF THE PROPERTY IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THIS AGREEMENT MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED.

NOTE:

1. THIS FORM IS NOT FOR USE IN CONNECTION WITH THE SALE OF RESIDENTIAL PROPERTY.

2. IF EITHER PARTY IS A CORPORATION, IT IS RECOMMENDED THAT THIS AGREEMENT BE SIGNED BY TWO CORPORATE OFFICERS.

The undersigned Buyer o ers and agreesto buy the Property on the terms and condi ons stated and acknowledges receipt of a copy hereof.

BROKER
N/A
A n:

Title:

Address:

Phone:

Fax:

Date:

BUYER
City of San Luis Obispo, a Municipal
Corporation
By:

Name Printed:

Title:

Phone:

Fax:

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Email:

Federal ID No.:

Broker DRE License #:

Agent DRE License #:

Email:

By:

Name Printed:

Title:

Phone:

Fax:

Email:

Address:

Federal ID No.:

27. Acceptance.

27.1 Seller acceptsthe foregoing o er to purchase the Property and hereby agreesto sell the Property to Buyer on the terms and condi ons therein specied.

27.2 In considera on of real estate brokerage service rendered by Brokers, Seller agreesto pay Brokers a real estate Brokerage Fee in a sum equal to % of the Purchase Price to be divided between the Brokers as follows: Seller's Broker % and Buyer's Broker %. This Agreementshall serve as an irrevocable instruc on to Escrow Holder to pay such Brokerage Fee to Brokers out of the proceeds accruing to the account of Seller at the Closing.

27.3 Seller acknowledges receipt of a copy hereof and authorizes Brokersto deliver a signed copy to Buyer.

NOTE: A PROPERTY INFORMATION SHEET IS REQUIRED TO BE DELIVERED TO BUYER BY SELLER UNDER THIS AGREEMENT.

BROKER
N/A
A n:

Title:

Address:

Phone:

Fax:

Email:

Federal ID No.:

Broker DRE License #:

Agent's DRE License #:

Date:

SELLER
1166 Higuera Street, LLC
By:

Name Printed: Nicholas Tompkins
Title: Manager
Phone: 805-440-1839
Fax:

Email: [email protected]
By:

Name Printed:

Title:

Phone:

Fax:

Email:

Address:

Federal ID No.:

AIR CRE * h ps://www.aircre.com * 213 687 8777 * [email protected] NOTICE: No part of these works may be reproduced in any form without permission in wri ng.

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ADDENDUM TO STANDARD OFFER, AGREEMENT AND ESCROW

INSTRUCTIONS FOR PURCHASE OF REAL ESTATE (NON-RESIDENTIAL) DATED OCTOBER 31, 2023
BUYER: CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION SELLER: 1166 HIGUERA STREET, LLC
This Addendum, including additional or modified terms in Paragraphs 28-32, is attached to and made part of the above-referenced Agreement (said Agreement and the Addendum are hereinafter collectively referred to as the Agreement ). In the event of any conflict between the provisions of this Addendum and the printed provisions of the Agreement, this provisions in this Addendum shall control.

28. Hazardous Substances. The title report for the Property includes a 1997 grant deed Seller is aware of discovery of lead in the soil from historic origin, but received a Closure Letter For Abatement of Lead Contaminated Soil dated August 7, 2019, from documents. As set forth in the Contingencies to Closing at Paragraph 9(s), the Grant Deed conveying the Property to the City will not include the soil contamination statement contained in the 1997 grant deed.

29. Condition/As Is.
(A) No Representations as to Property. There are no representations, agreements, arrangements, or circumstances, oral or written, between the parties relating to the subject matter contained in this Agreement that are not fully expressed in the Agreement, and Seller has not made and does not make any representation or warranty concerning any matter or thing affecting or relating to the Property, including but not limited to its fitness for a particular use, its physical condition or any other matter;
(B) -IS representations and warranties contained herein, election to purchase the Property will be based upon and will constitute evidence of independent investigation of the Property, its use, development potential and suitability for intended use, including (without limitation) the following: the feasibility of operating and maintaining the Property in compliance applicable zoning; the size and dimensions of the Property; the availability, cost and adequacy of water, sewerage and any utilities serving or required to serve the Property; the presence and adequacy of current or required infrastructure or other improvements on, near or affecting the Property; any surface, soil, subsoil, fill or other physical conditions of or affecting the Property, such as climate, geological, drainage, air, water or mineral conditions; the condition of title to the Property; the existence of governmental laws, statutes, rules, regulations, ordinances, limitations, restrictions or requirements concerning the use, density, location or suitability of the Property for any existing or proposed development thereof including but not limited to zoning, building, subdivision, environmental or other such regulations;

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the necessity or availability of any general or specific plan amendments, rezoning, zoning variances, conditional use permits, building permits, environmental impact reports, parcel or subdivision maps and public reports, requirements of any improvement agreements; requirements of the California Subdivision Map Act, and any other governmental permits, approvals or acts; the necessity or existence of any dedications, taxes, fees, charges, costs or assessments which may be imposed in connection with any governmental regulations or the obtaining of any required permits; and all of the matters concerning the condition, use, development or sale of the Property. Seller will not be liable for any loss, damage, injury or claim to any person or property arising from or caused by the use of the Property by Buyer. Except with respect to a default by Seller hereunder (including a breach of warranties and representations), Buyer at the Closing expressly waives its rights granted under California Civil Code Section 1542, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR

RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR

AT THE TIME OF EXECUTING THE RELEASE, THAT IF KNOWN BY HIM OR HER

WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

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(C) Environmental Matters/Release
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901, et seq.), and under the applicable laws of California. The City must rely on its own investigation and not on any representation by Seller regarding Hazardous Materials. Buyer shall rely solely upon its own investigation and inspection of the Property and the improvements thereon and upon the aid and advice of ndependent expert(s) in purchasing the Property, and shall take title to the Property without any warranty, express or implied, by the Seller. Except for any statements contained in the Agreement, Seller makes no representations regarding Hazardous Materials in, on or under the Property. knowledge and disclosures regarding Hazardous Materials are limited to the contents of Accordingly, Buyer hereby expressly waives and relinquishes any and all rights and remedies Buyer may now or hereafter have against Seller, whether known or unknown, with respect to any past present, or future presence of Hazardous Materials on, under or about the Property or with respect to any past, present or future violations of any rules, regulations or laws, now or hereinafter enacted, regulating or governing use, handling, storage or disposable of Hazardous Materials, including, without limitation (i) any and all remedies Buyer may now or hereafter have under the Comprehensive Environmental law, rule or regulation, (ii) any and all rights Buyer may now or hereafter have against Seller under the Carpenter-PresleyTanner Hazardous Substance Account Act (California Health and Safety