San Luis Obispo City Council
December 5, 2023

Applicant R.A.C.E. Matters
Project
Description
Funds will be used to support programs dedicated to creating health equity and wellbeing for BIPOC community members. The funds will cover 1) an initiative called "shop talk" to support free, monthly, therapist and/or clinician-led discussion groups intended to foster healing, community making, well-being, and joy. This will cover 4 monthly sessions (48 total sessions); and 2) another initiative for a hair fund that enable local folks with financial barriers to receive hair services at texture salon.

Requested
Amount $20,000
Recommended
Amount
$16,8000 - Partially funded proposal. Cover the Shop Talk sessions, but not the hair fund. Make sure Shop Talk sessions are open to all community members.

Applicant Restorative Partners
Project
Description
Funds are designed to expand the Restorative Justice Conferencing Program. Funds will cover staff time and to hire a part-time coordinator for the program. The Coordinator will facilitate restorative conferences, lead outreach efforts with community partners, coordinate logistics, and work closely with volunteers and interns. Funds will be used to potentially increase conferences from 10 to 20 in the 2024 calendar year.

Requested
Amount $20,000
Recommended
Amount
$0 – Funds requested are fully directed to staff. While proposal discusses an equity gap service, it lacked sufficient information connecting the project to structural and systemic needs and to the impact in the community that is long-lasting and sustainable.

Applicant San Luis Obispo County UndocuSupport
Project
Description
Funds will be used to create 14 "how to" videos covering seven (7) topics with easy to understand, step-by-step instructions on eligibility and basis of how to apply which will target Spanish and Mixteco-speaking immigrants and community members. Videos will be created in Spanish with English subtitles, and a second format will be created with Mixteco voiceover in partnership with Promotores and Herencia Indígena.

Requested
Amount $39,775.62
Recommended
Amount
$39,775.62 – Fully fund as proposed project scope. Project is sustainable with wide long-lasting impact in the City and the entire community.

Applicant SLO Child Development Resource Center (SLO CDRC) Project
Description
Funds will be used to support direct services, which include 150 hours of therapy and allow for $500 of professional development for two (2) therapists centered on cultural and linguistic competencies.

Requested
Amount $5,000
Recommended
Amount
$0 – Identified an equity gap, but other applications better addressed larger structural/systemic issues.

Applicant SLO Climate Coalition
Project
Description
Funds will be used for an equity assessment to make our organizations' programming more inclusive to people with disabilities. The funds will be used to purchase accessibility upgrades (using non-city funding) to Ludwick Community Center and make modifications to their Stronger Together meetings and ResilientSLO online climate resource.

Requested
Amount $2,500
Recommended
Amount
$0 – Application did not meet the minimum requested amount requirement.

Application identified an equity gap, but other applications better addressed larger structural/systemic issues.

Applicant SLO Hillel
Project
Description
The funds will be used to cover the expenses of one presentation from a speaker during the Jews of Color Speaker Series.

Requested
Amount $20,000
Recommended
Amount
$10,000 – Partially funded project, organization to adjust scope of project accordingly and ensure presentation is available to all community members.

Applicant SLO International Film Festival
Project
Description
Funds will be used to continue the free program designed to highlight films and storytelling from BIPOC filmmakers. Funds will cover five (5) short films programmed through R.A.C.E. Matters SLO focusing on BIPOC filmmakers and different perspectives. Themes for this year include voting/activism or indigenous perspectives on water. Funds will cover two (2) panel discussions with guest speakers.

Requested
Amount $8,700
Recommended
Amount
$0 - Identified an equity gap, but other applications better addressed larger structural/systemic issues.

Applicant SLO Museum of Art
Project
Description
Funds will be used to cover two (2) exhibitions showcasing artists from historically underserved and excluded communities, as well as free public programming for youths and adults presented in collaboration with community partners. One exhibition is by artist Maria Molteni, and the

second exhibition showcases a group of BIPOC artists from the Central Coast and the State exploring historic segregation.

Requested
Amount $20,000
Recommended
Amount
$9,424.38 – Partially fund. Reduce staffing but allow for projects to be funded based on scope of proposal.

Applicant SLO Noor Foundation
Project
Description
Community Care project meant to serve uninsured, low income, and hard to reach populations for the purpose to directly engage individuals to ongoing healthcare, health education, and support services. The funds will cover 1) fulltime multilingual healthcare and support services, 2) deliver continuity in care through preventive and diagnostic laboratory and radiology service, 3) deliver regular multilingual outreach, and 4) launch multilingual marketing campaign.

Requested
Amount $25,000
Recommended
Amount
$0 - Proposal best suited to apply for Human Services Grant (HSG) program. Requested amount only covers 4% of the total project cost ($595,017) therefore difficult to gauge community impact.

Applicant The San Luis Obispo Wind Orchestra
Project
Description
Funds will be used to spotlight women composers and for performances by accomplished women soloists and conductors. Funds will be used to conduct a multi-pronged outreach approach including social media, direct mail, posters, collaborations with local art and music organizations, and TV commercials.

Requested
Amount $20,000
Recommended
Amount
$0 - Identified an equity gap, but other applications better addressed larger structural/systemic issues.

Applicant Transitions-Mental Health Association (TMHA)
Project
Description
Funds will be used to expand the current services they offer. Funds will cover the development and implementation of Spanish-language support groups led by Promotores on a monthly basis using TMHA's three (3) wellness centers. These groups will be culturally and linguistically appropriate to engage with the Latino/Latinx/Latine/Hispanic/ and Mixteco population and will be referred to as Charlas Educativas. This application is a joint effort with Promotores.

Requested
Amount $40,000
Recommended
Amount
$0 – Proposal best suited to apply for Human Services Grant (HSG) program.

1 DRAFT Human Relations Commission Minutes
October 4, 2023, 5:00 p.m.

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

Present:

Commissioner Catuih Campos, Commissioner Stephanie
Carlotti, Commissioner Vincent DeTurris, Commissioner Sierra Smith, Commissioner Taryn Warrecker, Vice Chair Angie
Kasprzak, Chair Dusty Colyer-Worth
City Staff Present: DEI Manager Nestor Veloz-Passalacqua, DEI Management Fellow Matthew Melendrez, City Clerk Teresa Purrington
_____________________________________________________________________

1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was called to order on October 4, 2023, at 5:05 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo, by Chair Colyer-Worth.

2. STAFF INTRODUCTIONS
DEI Manager Nestor Veloz-Passalacqua introduced Assistant City Manager, Whitney McDonald.

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

Walker Burdick
--End of Public Comment--

4. CONSENT

4.a CONSIDERATION OF MINUTES - SEPTEMBER 6, 2023, HUMAN

RELATIONS COMMISSION MINUTES
Motion By Commissioner Carlotti
Second By Commissioner Smith
To approve the Human Relations Commission Minutes of September 6, 2023.

Ayes (7): Commissioner Campos, Commissioner Carlotti, Commissioner DeTurris, Commissioner Smith, Commissioner Warrecker, Vice Chair Kasprzak, and Chair Colyer-Worth
CARRIED (7 to 0)

5. PUBLIC HEARINGS

2 5.a ANNUAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDGB)

COMMUNITY NEEDS GRANT WORKSHOP
Assistant Planner Owen Goode presented the staff report and responded to inquiries.

Public Comment:

Joanna Dominguez
--End of Public Comment--
Motion By Vice Chair Kasprzak
Second By Commissioner Campos
To approve the CDBG funding priorities as presented during the Community Needs Grant Workshop.

Ayes (7): Commissioner Campos, Commissioner Carlotti, Commissioner DeTurris, Commissioner Smith, Commissioner Warrecker, Vice Chair Kasprzak, and Chair Colyer-Worth
CARRIED (7 to 0)

5.b 2023-24 DEI HIGH IMPACT GRANT FUNDING RECOMMENDATION Chair Colyer-Worth declared a conflict and recused himself from the discussion regarding GALA Pride & Diversity Center due to his employment with GALA Pride & Diversity Center.

Commissioner Carlotti declared a conflict and recused herself from the discussion regarding Transitions Mental Health Association due to her employment with Transitions Mental Health Association.

DEI Manager Nestor Veloz-Passalacqua presented the staff report and responded to inquiries.

Public Comment:

Greg Ellis
Wendy Wendt
Rita Casaverde
Courtney Haile
Chelsea Ruiz
Dan Rivoire
Nicole Mullikin
--End of Public Comment--

3 Motion By Commissioner Smith
Second By Commissioner Carlotti
To provide the following 2023-24 DEI High Impact Grant funding recommendation to City Council:

Organization Project/Program Recommended
Funding Amount
GALA Pride & Diversity
Center
SLO Queer Cultural
Revitalization Project $20,000
Ayes (6): Commissioner Campos, Commissioner Carlotti, Commissioner DeTurris, Commissioner Smith, Commissioner Warrecker, and Vice Chair Kasprzak
Recused (1): Chair Colyer-Worth
CARRIED (6 to 0)
Motion By Vice Chair Kasprzak
Second By Commissioner Campos
To provide the following 2023-24 DEI High Impact Grant funding recommendations to City Council:

Organization Project/Program Recommended
Funding Amount
Diversity Coalition BIPOC Board
Leadership Program $40,000
History Center of SLO
County
Translation &
Multilingual Access $6,000
Race Matters Shop Talk & Hair Fund $16,800
San Luis Obispo
County UndocuSupport
San Luis Obispo County
UndocuSupport $39,775.62
SLO Hillel Jews of Color Speaker
Series Presentation $10,000
SLO Museum of Art Expanding Equity
Exhibitions $9,424.38
Court Appointed
Special Advocates
(CASA)
Diversity is the Power of
Change - Year 2 $8,000
Ayes (7): Commissioner Campos, Commissioner Carlotti, Commissioner DeTurris, Commissioner Smith, Commissioner Warrecker, Vice Chair Kasprzak, and Chair Colyer-Worth
CARRIED (7 to 0)

4 5.c DEI STRATEGIC PLAN COMMUNITY WORKSHOP
DEI Manager Nestor Veloz-Passalacqua presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Action: No action taken on this item.

6. COMMENT AND DISCUSSION

6.a STAFF & COMMISSIONER UPDATES AND AGENDA FORECAST
Diversity, Equity, and Inclusion Manager Nestor Veloz-Passalacqua provided an update on upcoming projects.

7. ADJOURNMENT
The meeting was adjourned at 7:55 p.m. The next Regular Meeting of the Human Relations Commission is scheduled for December 6, 2023 at 5:00 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY HUMAN RELATIONS COMMISSION: XX/XX/2023

Item 5e
Department: Public Works
Cost Center: 5104
For Agenda of: 12/5/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Jennifer Rice, Deputy Director of Mobility Services Brendan Pringle, Sr. Business Analyst
Lucia Pohlman, Sustainability and Natural Resources Analyst SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1731 (2023 SERIES) AMENDING CHAPTER 12.20 OF THE SAN LUIS OBISPO

MUNICIPAL CODE TO ALLOW LIMITED ACCESS TO PUBLIC PARK

PARKING LOTS AFTER HOURS FOR ACTIVELY CHARGING ELECTRIC

VEHICLES

RECOMMENDATION
Adopt Ordinance No. 1731 (2023 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 12.20, Park Regulations, of the Municipal Code to allow limited after-hours charging of electric vehicles in public park parking lots,” previously referred to as “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.”

POLICY CONTEXT
Major City Goal Strategy 4.3 notes that “[f]or those that need to drive, the City will focus on enabling and deploying publicly accessible electric vehicle charging infrastructure.” Strategy 2.C.5. of the San Luis Obispo Access and Parking Management Plan, (“Continue to expand off-street electric vehicle (EV) charging for vehicles and e-bikes”), and Task

6.1.A of the Climate Action Plan 2023-27 Work Program (“Enable the installation of publicly accessible EV chargers on public property to meet community need”) both align with this Major City Goal.

The City is quickly advancing the installation of EV charging stations at Santa Rosa Park and Johnson Park to meet these objectives, and the charging stations would be publicly accessible at any time of day. However, presence in any public park between the hours of 10:00 pm and 5:00 am without approval from the director is currently forbidden (Municipal Code 12.20).

Item 5e

DISCUSSION
Background
On November 14, 2023, the City Council introduced Ordinance No. 1731 (2023 Series), amending Chapter 12.20 to allow limited after hours charging of electric vehicles in public park parking lots. The Council discussed the recommendation and unanimously approved the introduction of the ordinance.

Ordinance Summary
The proposed ordinance (Attachment A) amends Chapter 12.20 of the City’s Municipal Code to provide a limited exception to the prohibition on presence in parks during closure hours for EV drivers and passengers to access the parking areas of public parks after hours for the purpose of charging their vehicle only. The ordinance continues to prohibit usage of any other park amenities after hours, including benches, playground equipment, barbecues, and tables.

Additionally, the proposed ordinance requires that vehicle owners and passengers must be actively charging their vehicle (as indicated by a light on the charger), and access is limited to a maximum of two (2) hours. The ordinance does not allow any park usage after 10pm. This charging exception only allows them to be in the parking lot in their vehicle or going to and from the charger.

Overnight camping is prohibited in City parks, with limited exceptions, by Section

10.34.020 of the Municipal Code, and such prohibition would not be affected by this ordinance.

Public Engagement
Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.  No public comment was received during introduction of the ordinance at the November 14, 2023 City Council meeting.

CONCURRENCE
This report reflects a multi-departmental effort with Administration, Police, and Community Services Group, including Public Works and Parks and Recreation, all in concurrence with the above-described approach and recommendation. The City Attorney has reviewed and concurs as to form and effect.

ENVIRONMENTAL REVIEW
Pursuant to the California Environmental Quality Act (CEQA), it can be seen with certainty that there is no possibility that the proposed Municipal Code Amendment will have any effect on the environment (General Rule Exemption CEQA Guidelines Sec. 15061(b)(3)). Additionally, the proposed ordinance is exempt from environmental review per CEQA Section 15301 (Existing Facilities), as there would be negligible or no expansion of use of City facilities.

Item 5e

FISCAL IMPACT
Budgeted: N/A Budget Year: 2023-24
Funding Identified: N/A
Fiscal Analysis:

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
There are no direct fiscal impacts associated with this action. The chargers are offered through a zero-cost licensing agreement with Valta Energy, in which Valta Energy covers the installation and the usage costs.

ALTERNATIVES

1. Modify the ordinance as proposed. The City Council may modify the ordinance before adoption. Depending on the type of changes proposed, modification of the ordinance may require reintroduction during a subsequent public hearing.

2. Do not adopt the ordinance as proposed.  This action is not recommended by staff as it would inhibit the expansion of off-street electric vehicle (EV) charging for vehicles, as recommended by the Access and Parking Management Plan.

3. Provide further direction to staff regarding the ordinance. The City Council may request further public outreach or further research.

ATTACHMENTS
A - Ordinance No. 1731 (2023 Series)

O 1731
ORDINANCE NO. 1731 (2023 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 12.20, PARK

REGULATIONS, OF THE MUNICIPAL CODE TO ALLOW LIMITED

AFTER-HOURS CHARGING OF ELECTRIC VEHICLES IN PUBLIC

PARK PARKING LOTS
WHEREAS, The City has a substantial interest in promoting the public health, safety and welfare of its residents, visitors and businesses, and the safety and aesthetic qualities of City parks; and
WHEREAS, The City is working to install numerous public-facing electric vehicle (EV) chargers at City-owned parking lots to meet the demand of increased electric vehicle ownership, some of which will be located in City park parking areas; and WHEREAS, City of San Luis Obispo residents and businesses have repeatedly identified climate action as a top community priority; and WHEREAS, the City of San Luis Obispo City Council has directed staff to evaluate strategies and options to achieve community-wide carbon neutrality by 2035, which includes supporting electric vehicle infrastructure; and WHEREAS, Resolution R-11381 (2022 Series) adopts the City of San Luis Obispo Climate Action Plan 2023-27 Work Program, which includes task 6.1.A to enable the installation of publicly accessible EV chargers on public property to meet community needs; and
WHEREAS, The City recognizes that in some cases, after-hours charging of electric vehicles may be necessary; and
WHEREAS, Section 12.20.040 of the City’s Municipal Code states that it shall be unlawful to enter, remain, or stay in any public park between the hours of ten p.m. and five a.m. of the following day without approval from the director; and WHEREAS, by providing a limited exception to Section 12.20.040 for EV vehicle drivers and passengers to access the parking areas of public parks after hours for the sole purpose of charging their electric vehicle, this ordinance will promote the public health, safety and welfare, and support the lawful use and access to City parks by all community members consistent with the intended legal uses and aesthetic activities of City parks; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on November 14, 2023, for the purpose of considering the recommended changes to Section 12.20.040 of the Municipal Code; and

Ordinance No. 1731 (2023 Series) Page 2
O 1731
WHEREAS, the City Council has duly considered public testimony and the evaluation and recommendations by staff.

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

SECTION 1. Section 12.20.040 of the San Luis Obispo Municipal Code is hereby amended to make a limited exception for the presence of drivers and passengers charging their EV vehicles, to read as follows:

E. Presence in Parks During Certain Hours Prohibited. It shall be unlawful to enter, remain, or stay in any public park between the hours of ten p.m. and five a.m. of the following day without approval from the director, except for drivers and passengers of electric vehicles that are actively charging in a park parking lot. Use of park facilities while charging an electric vehicle during closure hours, including, but not limited to sitting on benches, use of playgrounds, and use of other park amenities, is not permitted. Nothing herein is intended to modify or affect the prohibition on overnight camping set forth in Section 10.34.020 of the Municipal Code. Access to a public park during closure hours for the purpose of charging an electric vehicle is limited to a maximum of two (2) consecutive hours.

SECTION 2. All prior ordinances, resolutions or administrative orders relating to parks regulations are hereby superseded to the extent inconsistent herewith.

Ordinance No. 1731 (2023 Series) Page 3
O 1731
SECTION 3. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the 14th day of November 2023, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2023, on the following vote:

AYES:

NOES:

ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: December 5, 2023
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: Nate Stong, Supervising Civil Engineer
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5f. - APPROVAL OF THE FINAL MAP FOR TRACT 3136, 3580 BULLOCK LANE (SBDV-0490-2019)
Per a request from the project applicants, Barry Ephraim and John Young, staff is requesting that the City Council remove this item from the agenda. Staff will work with the applicant team to re-agendize the item as soon as appropriate.

Item 5f
Department: Community Development
Cost Center: 4003
For Agenda of: 12/5/2022
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Steve LaChaine, Senior Civil Engineer
SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3136, 3580 BULLOCK LANE (SBDV-0490-2019)

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 3136 (3580 Bullock Lane, SBDV-0490-2019),” and authorizing the Mayor to execute a Subdivision Agreement in a form subject to the approval of the City Attorney.

POLICY CONTEXT
This item supports the development of 192 housing units, which directly advances a Major City Goal for additional housing needs. City Council approval is required for subdivision final maps pursuant to Government Code 66458(a).

DISCUSSION
Background
Tract 3136 (SBDV-0490-2019), commonly known as Bullock Ranch, is located at 3580 Bullock Lane (Attachment A) in the Orcutt Area Specific Plan (OASP) area. A vesting tentative tract map for Tract 3136 was approved by the City Council on January 11, 2022, by Resolution No. 11299 (2022 Series). The tentative map (Attachment B) approved a 192-unit mixed-use development, including seven live/work units, a 585-square-foot commercial unit, on-site parking, and other residential community amenities for the subdivider (Bullock Ranch, LLC) to develop. The final map creates a total of 14 lots on the 10.93-acre site.

The tentative map and project conditions of approval included the finished buildout of Bullock Lane as a public collector street from its existing southerly terminus south of Orcutt Road to the recently constructed roundabout at Tiburon Way/Bullock Lane/Righetti Ranch Road, providing new connectivity between Orcutt Road and the Orcutt Specific Plan Area. The developer was successful in acquiring the necessary private right-of-way required for these improvements and is required to complete construction prior to occupancy of the development.

Item 5f
The tentative map and Condition of Approval 83 required the developer to design and construct an extension of the Railroad Safety Trail shared-use path between Tiburon Way and Orcutt Road along the west side of Bullock Lane, parallel to the Union Pacific Railroad (UPRR) tracks. However, this condition was contingent on the City acquiring the necessary easements from UPRR needed to construct the facility.

Unfortunately, after nearly two years of coordination and negotiations between UPRR and City staff, UPRR ultimately rejected the City’s request for the easement needed to construct the shared-use path extension. Instead, UPRR has requested that the City first complete a series of improvements to the existing at-grade rail crossing on Orcutt Road before they will grant the easements needed for the shared-use path extension, such as the installation of additional flashers, medians, ADA improvements, and other minor improvements related to striping and signage.

The developer has substantially completed the design for the path extension per the project conditions of approval, however, they are no longer obligated to construct the facility due to the lack of the required easement. Instead, they will provide all design materials to the City and pay their fair share financial contribution towards future construction of these improvements by the City through participation in the Citywide and Orcutt Subarea Transportation Impact Fee programs. As part of the City’s 2023-25 Financial Plan, funding was allocated for City staff to initiate design work for the Orcutt Road rail crossing improvements requested by UPRR as a condition of the granting the easement. The Financial Plan also allocated funding for construction of the shared-use path extension as a City-led capital improvement project.

The Tract 3136 map will create the following units, lots and easements:

1. 12 lots for 192 multi-family condominium units and one commercial unit.

2. Common areas for parking, private streets, and private drive aisles.

3. Easement for vehicular, pedestrian, bicycle access and utilities.

4. 2 lots for shared access.

Subdivision Improvements
The public improvements required for this subdivision consist of street and utility improvements to Bullock Lane and Ranch House Road along the project frontage and to Bullock Lane extending north approximately 300 feet. Access to the subdivision is provided via Bullock Lane on the west side, and on the east side of the project, Sponza Drive extends into the project site as a private street, creating a four-way intersection at the intersection of Sponza Drive and Ranch House Road. All of the in-tract utilities and streets will be privately owned and maintained.

The scope of the proposed subdivision improvements to be constructed with Tract 3136 are consistent with the approved project entitlements and conditions of approval, except for the bicycle and pedestrian path along the railroad right-of-way, which has been deferred due to the inability to come to an agreement with UPRR as explained above.

Excerpted plan sheets for the improvements are shown in Attachment C.

Item 5f
Affordable Housing
As identified in Condition #18, the City is actively working with the Subdivider to complete the Affordable Housing Agreement. The Agreement outlines the inclusionary units between required for the project. The number and type of inclusionary units are consistent with the requirements of Housing Element policy 4.1, Municipal Code Section 17.138.040 and policies 3.3.1 through 3.3.7 of the Orcutt Area Specific Plan (OASP). Notably, OASP Policy 3.3.5 exempts the Community Commercial Mixed-Use portions of any project from Inclusionary Housing requirements. Resolution No. 11299 (2022 Series) Condition No. 18 identifies that seven (7) deed restricted affordable units are required within he project (2 low and 5 moderate income households). The agreement will be reviewed and approved by the Community Development Director and be recorded concurrent with recordation of the final map.

Approving the Final Map
The tentative map has an initial two-year life per Municipal Code Section 16.10.150, therefore, this vesting tentative map originally had an expiration date of October 27, 2023.

The expirations of tentative map approvals were automatically extended 18 months pursuant to City Council Resolution 11264 related to Covid-19 emergency actions which extended the tentative map approval for Bullock Ranch to August 28, 2024.

The draft final map for Tract 3136 (Attachment D) is ready for review and approval and then to be recorded. Pursuant to Section 16.14.080 of the Municipal Code, the Public Works Director has determined that the final map is in substantial compliance with the tentative map. Section 66474.1 of the Subdivision Map Act states that “a Legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with the previously approved tentative map.” In other words, the approval of a final map is considered a ministerial because approval is required if the final map is in substantial conformance with the approved tentative map.

Appropriate securities will be submitted prior to map recordation to guarantee completion of the required subdivision improvements as shown in the Subdivision Agreement (Attachment F). The resolution approving the final map (Attachment G) also authorizes the Mayor to sign the Subdivision Agreement requiring the Subdivider to complete the subdivision improvements.

CONCURRENCE
The Public Works Department and Natural Resources Manager concur with the recommended action.

Item 5f

ENVIRONMENTAL REVIEW
The Orcutt Area Specific Plan and an associated Final Environmental Impact Report (FEIR) were approved and certified by City Council on March 2, 2010. The Bullock Ranch Vesting Tentative Tract Map #3136 (VTM) was analyzed in a project-specific Initial Study/Mitigated Negative Declaration (IS/MND), which tiered off the 2010 FEIR. The VTM was approved and the IS/MND was adopted by City Council Resolution 11299 on January 11, 2022. Both the 2010 FEIR and subsequent IS/MND constitute the complete environmental determination for the project.

Approval of the final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further environmental review is required.

FISCAL IMPACT
Budgeted: Yes/No Budget Year: 20XX-2X
Funding Identified: Yes/No
Fiscal Analysis:

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

Total $ $ $ $
There is no new fiscal impact to the City associated with approving the final map for Tract 3136. The public improvements that will be constructed with this tract will result in an increase in maintenance costs for the public street improvements, water/fire services, and other infrastructure upon acceptance of the improvements by the City. These costs will be shown in future Financial Plans as the facilities are accepted and begin to require standard maintenance. The interior access roads/drive aisles, on-site utilities, and stormwater improvements are private and will be maintained by the property owners/Homeowners Association.

Item 5f

ALTERNATIVES
Deny approval of the final map. Denying approval of the final map can apply if findings are made that the requirements or conditions of the tentative map have not been met or performed (Section 66473 of the Subdivision Map Act) or if findings are made that the final map is not in substantial compliance with the previously approved tentative map (Section 66474.1 of the Subdivision Map Act). Since the final map is in substantial compliance with the tentative map, Sections 66474.1 and 66473 of the Subdivision Map Act require that City Council approve the map. Therefore, denying approval of the final map is not a recommended alternative unless the required findings are made.

ATTACHMENTS
A - Vicinity Map
B - Vesting Tentative Tract Map
C - Subdivision Improvement Plans – Excerpt
D - Draft Final Map
E - Draft Subdivision Improvement Agreement
F - Draft Resolution Approving Final Map

VICINITY MAP
TRACT 3136 NOT TO SCALE

OH OH OH OH OH OH OH ARV
APN 053-061-053
225 230 235 223 224
226 227 228 229
231 231231 232 233 233 233 234 236 237 23 2
N 32°01'02" W 231.32'
50' 50' 30' 27'
100' 57'

PIPE LINES EASEMENT
2348/OR/112

SLOPE MAINTENANCE EASEMENT
31/OR/409

STREET RIGHT-OF-WAY
DOC #17-24305

PUBLIC ROAD/UTILITY
DOC #90-38260
22' SEWER EASEMENT
DOC #17-24306
(TO BE ABANDONED)

PIPE LINES EASEMENT
2348/OR/112

PUBLIC STREET/UTILITIES
DOC #17-25192

STORM DRAIN EASEMENT
DOC #17-24540

TO BE ABANDONED
30' OFFER OF

DEDICATION
27' OFFER OF

DEDICATION
193.42' 152.83' 182.00' 180.00' 204.00' 53.19'
240.14' 59.00' 163.47'
158.33' 79.28' 225.00'
224.90' 79.30' 158.34'
240.25' 222.30' (E) PARCEL LINE TO BE DELETED

STREET IMPROVMENTS

PER APPROVED PLANS
TYP

STREET IMPROVMENTS

PER APPROVED PLANS
TYP

PROPOSED AIRSPACE

CONDOMINIUM TYP
PHASE 2
PHASE 1
PHASE 2
PHASE 1
PHASE 2
PHASE 1
3 35,707 SF
2 19,639 SF
9 13,046 SF
8 31,713 SF
4 43,243 SF
5 46,590 SF
11 34,375 SF
10 12,118 SF
12 41,880 SF
13 50,146 SF
14 24,199 SF
6 31,713 SF
7 29,424 SF
1 36,851 SF

PROPOSED AIRSPACE

CONDOMINIUM TYP
8' PRIVATE

DRAINAGE

EASEMENT
6' DRAINAGE EASEMENT TO
BENEFIT APN 076-481-007 PROPOSED AIRSPACE CONDOMINIUM TYP

PROPOSED AIRSPACE

CONDOMINIUM TYP

ZONED 'MIXED USE/NEIGHBORHOOD

COMMERCIAL (SHADED AREA)

SPONZA PL
'B' STREET
'B' STREET
'C' STREET
COURT '1'
COURT '2'
COURT '4'
COURT '3'
COURT '5'
COURT '6'
'C' STREET
COURT '11'
COURT '10'
COURT '9'
COURT '7'
COURT '8'

SPONZA PL
'A' STREET
'A' STREET
Architecture + Planning
17911 Von Karman Ave,
Suite 200
Irvine, CA 92614
949.851.2133
ktgy.com
Bullock Ranch
SAN LUIS OBISPO, CA # 2018-1068
Vesting Tentative Tract 3136
SEPTEMBER 28, 2021
NORTH
40 20 0 40 80
SCALE: 1" = 40'

B U L L O C K L N

U P R R
Proposed Parcel Index
Lot Phase Area (sf) Condominiums
11 36,851 0
2 1 19,639 8
31 34,707 10
4 1 43,243 18
5 1 46,590 16
61 31,713 12
7 1 29,424 12
81 31,843 12
91 13,046 8
10 2 12,118 0
11 2 34,375 30
12 2 41,880 2413 2 50,146 2414 2 24,199 18
OFFERS - 25,161 -
TOTAL - 475,935 192
Existing Parcel Index
Prior APN Gross Net

OWNER PRIOR CURRENT LOT SF ACRE SF ACRE
Anderson 076-481-008 004-705-009 PORTION LOT 133 1/LS/92 237,930 5.46 231,739 5.32 Evans 076-491-008 053-061-053 PORTION LOT 134 1/LS/92 238,005 5.46 219,974 5.05 TOTAL 475,935 10.93 451,713 10.37

SANDPIPER INVESTMENTS (PRATT)
APN 004-705-010

PEPPERTREE PROPERTIES (JONES)
APN 004-709-026, -027, -028
TRACT 3066
PSSH
APN 053-061-057
MUICK
APN 004-705-005
TRACT 3044

SANDPIPER INVESTMENTS (PRATT)
APN 053-061-056
TRACT 3111
BLANKET EASEMENT NOTE:

ALL ON-SITE AREAS EXCEPT BUILDINGS, PRIVATE PATIOS/PORCHES,AND FENCED REAR YARDS ARE RESERVED FOR COMMON USE, PUE, PRIVATE ACCESS, UTILITY, SEWER, WATER, AND DRAINAGE EASEMENTS.

PRIVATE RECIPROCAL

ACCESS EASEMENT

PRIVATE RECIPROCALPEDESTRIAN

ACCESS EASEMENT

TO THE NORTH OF THE OASP CITY OWNS LAND
UNDER WESTERN 30 FEET OF BULLOCK LANE






 


 
 

 
 



 
 


 

 

 

 
 
   
 
 


 




 

 

 
 
 


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1 SUBDIVISION AGREEMENT – TRACT 3136
THIS SUBDIVISION AGREEMENT – TRACT 3136 (“Agreement”) is dated __________________________ by and between BULLOCK RANCH, LLC, a California limited liability company, herein referred to as "Subdivider," and the CITY OF SAN LUIS OBISPO, herein referred to as the "City."

RECITALS
REFERENCE IS HEREBY MADE to that certain proposed subdivision of real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, a description of which is shown on the Final Map of Tract 3136, City of San Luis Obispo, California, as approved by the City Council on the _____ day of ______________, 20___.

The Subdivider desires that said Tract 3136 be accepted and approved as a Final Map pursuant to the Subdivision Regulations of the City of San Luis Obispo (Title 16 of the San Luis Obispo Municipal Code), and
It is a condition of said regulations that the Subdivider agree to install the improvements set forth in this Agreement.

TERMS AND CONDITIONS:

In consideration of the foregoing, the Subdivider, or assignee, does hereby agree to construct and install the following subdivision improvements (collectively, the “Improvements”), in accordance with said subdivision regulations and the approved plans and specifications on file in the office of the City Engineer, to wit:

1. CURB, GUTTERS AND SIDEWALKS

2. STREET BASE AND SURFACING

3. WATER MAINS and SEWER MAINS, including sewer laterals to the property line and water services to the curb stop.

2 4. LANDSCAPING

5. DRAINAGE STRUCTURES

6. STREET LIGHTS

7. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the inspection and approval of such facilities by the City, each public utility shall be required to file a letter stating that the Subdivider has properly installed all facilities to be provided by him, and that the said utility is prepared to provide service to residents upon request.

8. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by project approvals.

All of the Improvements shall be installed per the plans and specifications as approved by said City Engineer and any approved modifications (the “Approved Plans”).

The lines and grades for all of said Improvements shall be established by the Subdivider in accordance with the Approved Plans.

The Subdivider agrees that the work of installing the Improvements shall begin within Ninety (90) days from the date of recording of the Tract 3136 final map, and that the work shall be completed within Twenty-Four (24) months of said recording date, unless an extension has been granted by the City; the grant of any such extension shall not be unreasonably withheld by the City. Subdivider further agrees to annually renew the securities guaranteeing the Improvements until such time as the Improvements are complete and accepted by the City. It is further provided that if completion of said work is delayed by acts of God or labor disputes resulting in strike action, the Subdivider shall have an additional period of time equivalent to such period of delay in which to complete such work. Any extension of time hereunder shall not operate to release the securities

3 filed with the City pursuant to this Agreement. In this connection, the surety waives the provisions of Section 2819 of the Civil Code of the State of California.

The Subdivider does also agree to comply with the conditions established by the City Council and has paid the necessary fees as indicated on the attached Exhibits 1 and 2.

The setting of new survey monuments or resetting of disturbed monuments shall be in accordance with Article 5, paragraph 8771 et seq., of the Professional Land Surveyors Act, Chapter 15 of the Business and Professions Code of the State of California.

The Subdivider attaches hereto, as an integral part hereof, and as security for the faithful performance of this Agreement, instrument(s) of credit or bond approved by and in favor of the City. Said instrument(s) of credit or bond is/are in the amount(s) shown in Exhibit 2, which is the amount of the estimated cost of the Improvements.

Subdivider agrees to remedy any defects in the Improvements arising from faulty workmanship or materials or defective construction of said Improvements occurring within twelve (12) months after the City Department of Buildings Final Checkoff of the Improvements. In accordance with Sections 66499.7 and 66499.9 of the Government Code of the State of California, upon final completion and acceptance of the work, City will release all but 10% of the improvement security, that amount being deemed sufficient to guarantee faithful performance by the Subdivider of his obligation to remedy any defects in the Improvements arising within a period of one year following the completion and acceptance thereof.

Completion of the Improvements shall be deemed to have occurred on the date of Final Acceptance of the Improvements per the Approved Plans for the public improvement plans, and the date of final inspection by the Building Division for the private

4 improvements. Neither periodic nor progress inspections or approvals shall bind the City to accept the Improvements or waive any defects in the same or any breach of this Agreement.

If the Subdivider fails to complete the Improvements within the prescribed time, the Subdivider agrees that City may, at its option, declare any instrument of credit or bond which has been posted by Subdivider to guarantee faithful performance, forfeited and utilize the proceeds to complete the Improvements, or City may complete said Improvements and recover the full cost and expense thereof from the Subdivider or its surety.

The Subdivider has deposited with the City a labor and materials surety or sureties in the amount of 50% of the Improvements in accordance with State law.

Said Subdivider shall pay an inspection fee for City to inspect the installation of said Improvements, and to verify that they have been completed in accordance with the Approved Plans.

If off-site dedication of property is necessary to facilitate the construction of the required Improvements, the Subdivider and City shall adhere to the requirements of Resolution Number 11299 approved by the City Council on January 11, 2022, with regards to acquiring said off-site dedication.

Pursuant to Government Code Section 66474.9(b), the Subdivider shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or annul, the approval by the City of this subdivision, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”).

The City shall promptly notify the Subdivider of any Indemnified Claim upon being

5 presented with the Indemnified Claim and City shall fully cooperate in the defense against an Indemnified Claim.

It is understood and agreed by and between the Subdivider and the City hereto that this Agreement shall bind the heirs, executors, administrators, successors and assigns of the respective parties to this Agreement.
[signatures on following page]

6 IN WITNESS WHEREOF, this Agreement has been executed by:

SUBDIVIDER

BULLOCK RANCH, LLC,
a California limited liability company
____________________________
Barry Ephraim,
Manager
____________________________
John Young,
Manager

CITY OF SAN LUIS OBISPO
___
Mayor Erica A. Stewart
ATTEST:

Teresa Purrington, City Clerk
APPROVED AS TO FORM:
__
J. Christine Dietrick, City Attorney

7 EXHIBIT 1
TRACT 3136

SUBDIVISION AGREEMENT

1. The Subdivider has shall deposit a monumentation security in the amount of $12,400 to guarantee the installation of survey monuments in accordance with the approved map and payment for same. Said guarantee will be released once the installation of monuments has been verified and that existing monuments have not been disturbed, and upon receipt by the City of a letter from the Surveyor indicating that they have completed the work and have been paid. Subdivider shall adhere to the requirements of California Business and Professions Code Section 8771 with regards to monument preservation. The monumentation security also guarantees the replacement of any monuments that were disturbed during construction, along with filing of Records of Survey or Corner Records required by said Section 8771.

2. Park in-lieu fees (parkland Quimby fee) for the multi-family Tract 3136 are to be paid prior to final map recordation per this Subdivision Agreement. The Park Improvement fees are deferred to time of building permit issuance per the conditions of approval of Tract 3136.

3. The Subdivider shall pay a roadway maintenance fee to satisfy the roads maintenance requirements of the City, specifically maintenance caused by a surplus of heavy vehicles during the temporary construction activities of the project. The fee of $15,000 was estimated and approved by the City Engineer in accordance with City Engineering Standards and guidelines.

4. The subdivider shall comply with all requirements of City Council Resolution No. 11299 and Council Resolutions related to approval of the tentative map, approving the Orcutt Area Specific Plan, and certifying the Final Environmental Impact Report. (3580/3584 BULLOCK LANE FILE #ARCH-0489-2019, SBDV-0490-2019, EID-0345-2020)

8 EXHIBIT 2
TRACT 3136 - FEE AND BOND LIST,

BULLOCK LANE
Amount Form Date
Received
Bond Release Status
Bonds and Guarantees:

Faithful Performance: Can be released upon Building Final Checkoff of private subdivision improvements. 1 OFF-SITE IMPROVEMENTS (PIPs)
(FMAP-0177-2022)
$1,649,500 Bond Based on Engineer’s estimate of
probable cost, minus minor items
subtracted.

ON-SITE IMPROVEMENTS
(FMAP-0177-2022)
$6,180,000 Bond Based on Engineer’s estimate of
probable cost, minus % of early grading
and minor other items, round to the
nearest $10,000
2 Monument Guarantee $12,400 Bond
or CD
Can be released upon verification that
monuments have been set and surveyor
has been paid.

Labor & Materials (50% of cost of each of
the above improvements)
Can be released 90 days after Building
Final Checkoff of private subdivision
improvements, if no claims. (Civil Code
Section 8412)
Amount Form Date
Received
Bond Release Status
1 OFF-SITE IMPROVEMENTS (PIPs)
(FMAP-0177-2022)
$1,649,500 / 2
= $ 824,750
Bond Based on Engineer’s estimate of
probable cost, divided by two.
2 ON-SITE IMPROVEMENTS
(FMAP-0177-2022)
$6,180,000 / 2
= $ 3,590,000
Bond
10% Warranty
To be collected prior to release of
Faithful Performance Bonds
Can be released one-year after Building
Final Checkoff of private subdivision
improvements, if no defects, and
approval of record drawings.

9 Fees:

Amount Form Date
Received
Status
Map Check Fee (Paid) $18,562.00 Check Paid

1. Improvement Plan check Fees
For all on-site and off-site applicable
items from case FMAP-0177-2022
$102,114.55 Check May
2023
PAID IN FULL, MAY 2023
Based on approved construction
estimates

2. Construction Inspection Fees
For all of on-site and off-site applicable
items from case FMAP-0177-2022
Amount
$288,000.84
Form Received Status
Based on approved construction
estimates
Roadway Maintenance Fee $15,000 To be deposited in Acct # 40050300- 90346953 Streets Reconstruction and
Resurfacing Master per Matt Horn
“Park In-Lieu Fees” for multi-family units $690,724 Lump sum, Per Righetti Ranch Reimbursement Agreement . City shall
deposit check to GL String
501.9104.47203
“Park Development Fees” for multifamily units (Orcutt specific area)To be collected with building
permits
Number of Units x current fee.

Fee shall be the amount on the most
current fee schedule.

To be collected with building permits.

Funds collected to go to GL String
511.9104.47201
Public Infrastructure reimbursement
Agreement Fee
$116,763 Per Righetti Ranch Reimbursement
Agreement. Amount was Recalculated
September 2023
Amount Form
Date
Received
Other Impact Fees:

Transportation Impact fees With building permits
Plus OASP Add On
Water and Sewer Impact fees With building permits
Other typical Impact fees created with
building permits
With building permits
Affordable Housing Requirements See Affordable
Housing
Agreement
Planning Fees for ARCH-0489-2019 $10,619.22 Pay prior to map recordation. Invoiced 11/21/23

R _____
RESOLUTION NO. ___________ (2023 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN LUIS OBISPO, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT 3136 (3580 BULLOCK LANE, SBDV-0490-2019)
WHEREAS, the City Council made certain findings concerning the vesting tentative map for Tract 3136, as prescribed in Resolution No. 11299 (2022 Series); and WHEREAS, the City is actively working with the subdivider on an Affordable Housing Agreement for seven (7) deed restricted affordable housing units, as prescribed in Resolution No. 11299 (2022 Series). The agreement will be recorded concurrent with recordation of the final map; and
WHEREAS, all the requirements, conditions and mitigation measures of said Resolution No. 11299 (2022 Series) will be completed or appropriate securities will be in place prior to map recordation to guarantee their completion; and WHEREAS, the Orcutt Area Specific Plan and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. The Bullock Ranch Vesting Tentative Tract Map #3136 (VTM) was analyzed in a project-specific Initial Study/Mitigated Negative Declaration (IS/MND), which tiered off the 2010 FEIR. The VTM was approved and the IS/MND was adopted on January 11, 2022. Both the 2010 FEIR and subsequent IS/MND constitute the complete environmental determination for the project.

Approval of a final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines).

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

SECTION 1. The final map for Tract 3136 is found to be in substantial compliance with the tentative map.

SECTION 2. The Subdivision Agreement for Tract 3136 is approved and the Mayor is authorized to approve minor revisions to the agreement and execute the document.

SECTION 3. Approval of the final map for Tract 3136 is hereby granted.

SECTION 4. The Mayor and City staff are authorized to take action necessary to carry out the intent of this resolution.

Resolution No. _________ (2023 Series) Page 2
R _____
SECTION 5. Environmental Review. The 2010 Final Environmental Impact Report for the Orcutt Area Specific Plan and the Initial Study/Mitigated Negative Declaration for Vesting Tentative Tract Map 3136 constitute the complete environmental determination for the project. Approval of a final map is statutorily exempt under the California Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines).

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

AYES:

NOES:

ABSENT:

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

Item 5g
Department: Public Works
Cost Center: 5201
For Agenda of: 12/5/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Alex Fuchs, Mobility Services Business Manager SUBJECT: APPROVE AMENDMENTS TO THE MASS TRANSPORTATION

COMMITTEE BYLAWS

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of San Luis Obispo, California, amending the Advisory Body Handbook revising the Mass Transportation Committee Bylaws” expanding the potential candidacy pool for the representative position for persons with disabilities.

POLICY CONTEXT
City Charter Section 1202 – Eligibility, Appointment, and Length of Terms – permits nonregistered voter and non-city resident participation on citizen committees, commissions, boards, and authorities depending upon the nature and purpose of the advisory body, as determined by City Council. City Council approval is required to amend the Advisory Body Handbook revising the participation requirements for committee members.

DISCUSSION
Background
The purpose of the Mass Transportation Committee (MTC) is to advise City staff and the City Council on matters related to public transportation in San Luis Obispo including buses, trolley, and taxi services. The MTC has seven voting members, consisting of:

1. one Cal Poly employee,

2. one Cal Poly student,

3. one person 62 years of age or older;

4. one person from the business community;

5. one person with technical transportation planning experience;

6. one person with a disability; and

7. one member-at-large. When possible, one alternate member selected from the public will be appointed.

The Cal Poly employee representative, ASI representative, and technical planning representative are exempt from the residency requirements. All other members must be residents and registered voters of the City.

Item 5g
Committee Membership Revision
The restriction on residency requirements for the “person with a disability” member has made filling the position difficult for the past few years. Of the eight regularly scheduled meetings between May 2022 and July 2023, four were held but were unable to make a quorum, two were canceled due to lack of items on the agenda, and two were canceled due to staff absences. Now that the Transit program is fully staffed and reorganized under the new Mobility Services Division, there is a greater need than ever to hold regular MTC meetings and have sufficient member attendance to act on relevant items. Significant policy and budget items are on the horizon such as the Transit Innovation Study and Short-Range Transit Plan.

Staff is, therefore, recommending revisions to Article 2 – Committee Membership – of the MTC bylaws modifying the residency requirements for the person with disability position.

The Draft Resolution (Attachment A) would revise the current membership requirement to read as follows1:

The Committee has seven voting members, consisting of one Cal Poly employee designated by Cal Poly and one Cal Poly student representative designated by Associated Students, Inc. (ASI), with City Council review for acceptance; one person 62 years of age or older; one person from the business community; one person with technical transportation planning experience; one person with a disability disability community representative*; and one member-at-large. In addition, when possible, one alternate member selected from the general public will be appointed. The Cal Poly employee representative, ASI representative, and technical planning representative, and disability community representative* are exempt from the residency requirements.

All other members must be residents and registered voters of the City. * Disability Community Representative
Preference will be given to individuals who are registered City of San Luis Obispo voters and who identify as an individual with a disability or are a member of the disability community2. However, if recruitment for this position does not result in sufficient qualified registered City voters, membership may be considered for:
 A disability community member who lives outside the City limits, but within the County of San Luis Obispo.
 A registered City voter who has a close connection with the disabled community, such as an individual who works in a professional or advocacy capacity serving the disabled community, has a disabled household or family member/loved one, serves as a caregiver, or similar connection.

1 Proposed new text shown underlined and text to be removed shown with strikethrough. 2 A person that identifies as an individual with a disability may acknowledge their disability but not necessarily see themselves reflected within the disability community. A person that is a member of the disability community may be involved with and advocate for the disability community but does not have a disability themselves.

Item 5g
Previous Council or Advisory Body Action
On November 15, 2022, Council adopted Resolution No. 11377 (2022 Series) amending the Human Relations Commission’s (HRC) purpose statement and bylaws section of the Advisory Body Handbook. The amendment expanded the residency requirements for two of the commissioner positions allowing up to two members to be residents and registered voters of San Luis Obispo County or Cal Poly campus with a significant connection to the City of San Luis Obispo. The HRC amendments were supported by the HRC itself as well as the Diversity, Equity, and Inclusion (DEI) Taskforce.

Public Engagement
The proposed amendments were discussed at a scheduled public meeting of the Mass Transportation Committee Meeting on November 13, 2023. This item is on the agenda for the December 5, 2023, Council meeting which also allows for public comment and followed the required postings and notifications.

CONCURRENCE
The Mass Transportation Committee (MTC) met on November 13, 2023, to discuss the Advisory Body Handbook amendments. The Committee was unable to meet quorum, so no action was taken on the proposed amendments.

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: No Budget Year: 2023-24
Funding Identified: N/A
Fiscal Analysis:

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
The Advisory Body Handbook amendments have no fiscal impact.

Item 5g

ALTERNATIVE
Council could decide not to adopt the Draft Resolution amending the Advisory Body Handbook. The action is not recommended by staff because the Mass Transportation Committee has several position vacancies and struggles to make quorum for regularly scheduled meetings.

ATTACHMENTS
A - Draft Resolution amending the MTC Bylaws

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, AMENDING THE ADVISORY BODY

HANDBOOK TO REVISE THE MASS TRANSPORTATION COMMITTEE
BYLAWS
WHEREAS, in accordance with the Charter of the City of San Luis Obispo, the San Luis Obispo Municipal Code, and it’s own Resolutions, the City Council of San Luis Obispo appoints individuals to serve on its advisory bodies; and WHEREAS, those advisory bodies have bylaws to aid them in conducting their meetings fairly, smoothly, efficiently, and in accordance with law; and WHEREAS, pursuant to Charter section 1202, the City Council is permitted to allow non-registered voter and non-city resident participation on citizen committees, commissions, boards, and authorities depending upon the nature and purpose of the advisory body; and
WHEREAS, the City’s Mass Transportation Committee has failed to make quorum at four of the past eight regularly scheduled meetings; and WHEREAS, a quorum is required for committees to take formal action on agendized items and make recommendations to the City Council for their consideration, and
WHEREAS, the City’s Mass Transportation Committee has reviewed the amendments to their bylaws at a special meeting on November 13, 2023, but was unable to take action due to the lack of a quorum; and
WHEREAS, at its regular meeting on December 5, 2023, the City Council reviewed the proposed changes to the advisory body bylaws, as recommended by the Mass Transportation Committee.

Resolution No. _____ (2023 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo that Article 2 of the bylaws of the Mass Transportation Committee are hereby amended to read as set forth and incorporated herein as Exhibit A.

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

AYES:

NOES:

ABSENT:

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

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

EXHIBIT A

MASS TRANSPORTATION COMMITTEE BYLAWS
Amended by Resolution No. XXXXX (2023 Series)
Article 2. COMMITTEE MEMBERSHIP
The Committee has seven voting members, consisting of one Cal Poly employee designated by Cal Poly and one Cal Poly student representative designated by Associated Students, Inc. (ASI), with City Council review for acceptance; one person 62 years of age or older; one person from the business community; one person with technical transportation planning experience; one disability community representative*; and one member-at-large. In addition, when possible, one alternate member selected from the general public will be appointed. The Cal Poly employee representative, ASI representative, technical planning representative, and Disability Community representative* are exempt from the residency requirements. All other members must be residents and registered voters of the City.
*Disability Community Representative
Preference will be given to individuals who are registered City of SLO voters and who identify as an individual with a disability or are a member of the disability community.

However, if recruitment for this position does not result in sufficient qualified registered City voters, membership may be considered for:
 A disability community member who lives outside the City limits, but within the County of San Luis Obispo.
 A registered City voter who has a close connection with the disabled community, such as an individual who works in a professional or advocacy capacity serving the disabled community, has a disabled household or family member/ loved one, serves as a caregiver, or similar connection.

Item 5h
Department: Human Resources
Cost Center: 3001
For Agenda of: 12/5/2023
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Jeff Andrews, Human Resources Analyst
SUBJECT: ADOPT A MODIFIED SUPPLEMENTAL SALARY SCHEDULE
REFLECTING 2024 MINIMUM WAGE INCREASES

RECOMMENDATION
Adopt a modified Supplemental Employee Salary Schedule as necessary to comply with Senate Bill No. 3, Chapter 4, an act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor, requiring a minimum wage of $16.00 per hour effective December 21, 2023.

POLICY CONTEXT
Recommendations in this report are following Senate Bill No. 3, Chapter 4, an act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor (Attachment A).

DISCUSSION
Background
A qualified supplemental or temporary workforce is instrumental to the City of San Luis Obispo’s ability to provide consistent services to the community by adjusting more easily and quickly to workload fluctuations, unexpected vacancies, leaves of absence, or demands from limited-term projects, seasonal, or peak periods. A supplemental workforce also provides programs that would otherwise be difficult to staff due to the intermittent, seasonal, or non-traditional work hours (e.g., early mornings, weekends, evenings, etc.). For example, the City’s Parks and Recreation Department typically employs over 175 supplemental, part-time (less than 30 hours per week on average) employees at any given time. While many of these employees are seasonal (working only three to five months), they sustain programs and services essential to the community.

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

Item 5h
Departments across the organization utilize supplemental staff, and in some cases, the City has experienced increasing difficulty recruiting and retaining qualified candidates. In particular, supplemental positions that require certifications or State licenses, such as childcare teachers and lifeguards, have been particularly challenging to fill during the past few years. During the 2020 minimum wage update, staff adjusted the salary ranges associated with these classifications in an attempt to attract and retain well-qualified employees. While the Parks and Recreation Department continues to face challenges recruiting and retaining employees for these key supplemental positions, the recommended changes to the supplemental salary schedule (Attachment B) are designed to help address these issues. This entails commencing pay at a slightly higher level to enhance recruitment and retention efforts, while also adjusting the compensation for current staff members to align with this revised structure. This approach seeks to strike a balance between attracting new talent and ensuring equitable compensation for the existing workforce.

Supplemental Salary Schedule Reflects Minimum Wage Increase California's $15 minimum wage bill, Senate Bill No. 3, Chapter 4, An act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, was signed into law on April 4, 2016, when the State minimum wage amount was $10.00. The bill required an annual increase in the minimum wage until it reached $15.00 on January 1, 2022, for employers with 26 or more workers. The minimum wage increased to $15.50 per hour, effective January 1, 2023, for all employers.

During the first two years of Senate Bill 3’s impacts, the City’s response was to eliminate supplemental salary ranges or steps within salary ranges below minimum wage. The effect of this approach is that employees with less experience or fewer qualifications earn the same salary as employees who have more experience with the City. This approach creates a condition called “compaction,” which describes a lack of differentiation between more and less seasoned or experienced employees.

Staff addressed compaction issues during the subsequent years of the minimum wage changes through adjusting the salary model and providing additional increases to impacted positions, such as the childcare career series. Staff have been monitoring recruitment and retention results with the new model and found that it has addressed many identified issues. A provision in Senate Bill 3 states that minimum wage will increase by the lesser of 3.5% or US CPI-W (the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers), with the results rounded to the neared $0.10. This brings the California minimum wage amount to $16.00 for 2024. As a result, staff recommends minimum wage changes to the supplemental salary schedule for 2024.

Previous Council or Advisory Body Action
Council has been approving updates to minimum wage annually since 2016. The most recent Council approval was on October 5, 2022, for the 2023 minimum wage changes.

Item 5h
Public Engagement
This item is on the agenda for the December 5, 2023, City Council meeting and will follow all required postings and notifications. The public may comment on this item at or before the meeting.

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

Additionally, Human Resources staff provided recommendations for classification placement to fiscal officers across all City departments; fiscal officers concurred with the recommendations.

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

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $21,254 $21,254 $0 $21,254
State
Federal
Fees
Other:

Total $21,254 $21,254 $0 $21,254
The only fiscal impacts to the recommended salary schedule changes impact the Parks and Recreation Department. Due to salary savings resulting from full-time position vacancies, as well as hiring challenges for supplemental staff this fiscal year, the Parks and Recreation Department can absorb the unbudgeted $21,254 estimated cost associated with the updates to the supplemental salary schedule within the department budget for 2023-24 and will be included into future departmental budgets. If the future budget request cannot be accommodated, it will be absorbed into existing budgets and staff will highlight any necessary trade-offs.

Item 5h

ALTERNATIVES
Do not adopt the 2024 Minimum Wage Compliant Supplemental Employee Salary Schedule. This is not advised as it would put the City in a position of being non-compliant with State law.

ATTACHMENTS
A - Senate Bill No. 3, Chapter 4 (An act to amend Sections 245.5, 246, and 1182.12 of the Labor Code)
B - Supplemental Salary Ranges 231221 (MW2024)

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 1/7 Senate Bill No. 3
CHAPTER 4
An act to amend Sections 245.5, 246, and 1182.12 of the Labor Code, relating to labor.
[Approved by Governor April 4, 2016. Filed with Secretary of State April 4, 2016.]
LEGISLATIVE COUNSEL’S DIGEST
SB 3, Leno. Minimum wage: in-home supportive services: paid sick days. (1) Under existing law, the Healthy Workplaces, Healthy Families Act of 2014, an employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days, as specified. Existing law requires an employee to accrue paid sick days at the rate of not less than one hour per every 30 hours worked subject to specified use and accrual limitations. For the purposes of the act, an “employee” does not include a provider of in-home supportive services, as described.

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

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

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

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

The people of the State of California do enact as follows:

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 2/7 SECTION 1. Section 245.5 of the Labor Code is amended to read:
245.5. As used in this article:
(a) “Employee” does not include the following:
(1) An employee covered by a valid collective bargaining agreement if the agreement expressly provides for the wages, hours of work, and working conditions of employees, and expressly provides for paid sick days or a paid leave or paid time off policy that permits the use of sick days for those employees, final and binding arbitration of disputes concerning the application of its paid sick days provisions, premium wage rates for all overtime hours worked, and regular hourly rate of pay of not less than 30 percent more than the state minimum wage rate.
(2) An employee in the construction industry covered by a valid collective bargaining agreement if the agreement expressly provides for the wages, hours of work, and working conditions of employees, premium wage rates for all overtime hours worked, and regular hourly pay of not less than 30 percent more than the state minimum wage rate, and the agreement either (A) was entered into before January 1, 2015, or (B) expressly waives the requirements of this article in clear and unambiguous terms. For purposes of this subparagraph, “employee in the construction industry” means an employee performing work associated with construction, including work involving alteration, demolition, building, excavation, renovation, remodeling, maintenance, improvement, repair work, and any other work as described by Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, and other similar or related occupations or trades.
(3) An individual employed by an air carrier as a flight deck or cabin crew member that is subject to the provisions of Title II of the federal Railway Labor Act (45 U.S.C.

Sec. 151 et seq.), provided that the individual is provided with compensated time off equal to or exceeding the amount established in paragraph (1) of subdivision (b) of Section 246.
(4) An employee of the state, city, county, city and county, district, or any other public entity who is a recipient of a retirement allowance and employed without reinstatement into his or her respective retirement system pursuant to either Article 8 (commencing with Section 21220) of Chapter 12 of Part 3 of Division 5 of Title 2 of the Government Code, or Article 8 (commencing with Section 31680) of Chapter 3 of Part 3 of Division 4 of Title 3 of the Government Code.
(b) “Employer” means any person employing another under any appointment or contract of hire and includes the state, political subdivisions of the state, and municipalities.
(c) “Family member” means any of the following:
(1) A child, which for purposes of this article means a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis.

This definition of a child is applicable regardless of age or dependency status. (2) A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child. (3) A spouse.
(4) A registered domestic partner.
(5) A grandparent.
(6) A grandchild.
(7) A sibling.
(d) “Health care provider” has the same meaning as defined in paragraph (6) of subdivision (c) of Section 12945.2 of the Government Code. (e) “Paid sick days” means time that is compensated at the same wage as the employee normally earns during regular work hours and is provided by an employer to an employee for the purposes described in Section 246.5.

SEC. 2. Section 246 of the Labor Code is amended to read:
246. (a) (1) An employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days as specified in this section.

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 3/7 (2) On and after July 1, 2018, a provider of in-home supportive services under Section 14132.95, 14132.952, or 14132.956 of, or Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the Welfare and Institutions Code, who works in California for 30 or more days within a year from the commencement of employment is entitled to paid sick days as specified in subdivision (e) and subject to the rate of accrual in paragraph (1) of subdivision (b).
(b) (1) An employee shall accrue paid sick days at the rate of not less than one hour per every 30 hours worked, beginning at the commencement of employment or the operative date of this article, whichever is later, subject to the use and accrual limitations set forth in this section.
(2) An employee who is exempt from overtime requirements as an administrative, executive, or professional employee under a wage order of the Industrial Welfare Commission is deemed to work 40 hours per workweek for the purposes of this section, unless the employee’s normal workweek is less than 40 hours, in which case the employee shall accrue paid sick days based upon that normal workweek. (3) An employer may use a different accrual method, other than providing one hour per every 30 hours worked, provided that the accrual is on a regular basis so that an employee has no less than 24 hours of accrued sick leave or paid time off by the 120th calendar day of employment or each calendar year, or in each 12-month period. (4) An employer may satisfy the accrual requirements of this section by providing not less than 24 hours or three days of paid sick leave that is available to the employee to use by the completion of his or her 120th calendar day of employment. (c) An employee shall be entitled to use accrued paid sick days beginning on the 90th day of employment, after which day the employee may use paid sick days as they are accrued.
(d) Accrued paid sick days shall carry over to the following year of employment.

However, an employer may limit an employee’s use of accrued paid sick days to 24 hours or three days in each year of employment, calendar year, or 12-month period.

This section shall be satisfied and no accrual or carryover is required if the full amount of leave is received at the beginning of each year of employment, calendar year, or 12- month period. The term “full amount of leave” means three days or 24 hours. (e) For a provider of in-home supportive services under Section 14132.95, 14132.952, or 14132.956 of, or Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of, the Welfare and Institutions Code, the term “full amount of leave” is defined as follows:
(1) Eight hours or one day in each year of employment, calendar year, or 12-month period beginning July 1, 2018.
(2) Sixteen hours or two days in each year of employment, calendar year, or 12- month period beginning when the minimum wage, as set forth in paragraph (1) of subdivision (b) of Section 1182.12 and accounting for any years postponed under subparagraph (D) of paragraph (3) of subdivision (d) of Section 1182.12, has reached thirteen dollars ($13) per hour.
(3) Twenty-four hours or three days in each year of employment, calendar year, or 12- month period beginning when the minimum wage, as set forth in paragraph (1) of subdivision (b) of Section 1182.12 and accounting for any years postponed under subparagraph (D) of paragraph (3) of subdivision (d) of Section 1182.12, has reached fifteen dollars ($15) per hour.
(f) An employer is not required to provide additional paid sick days pursuant to this section if the employer has a paid leave policy or paid time off policy, the employer makes available an amount of leave applicable to employees that may be used for the same purposes and under the same conditions as specified in this section, and the policy satisfies one of the following:
(1) Satisfies the accrual, carryover, and use requirements of this section. (2) Provided paid sick leave or paid time off to a class of employees before January 1, 2015, pursuant to a sick leave policy or paid time off policy that used an accrual method different than providing one hour per 30 hours worked, provided that the accrual is on a regular basis so that an employee, including an employee hired into that class after

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 4/7 January 1, 2015, has no less than one day or eight hours of accrued sick leave or paid time off within three months of employment of each calendar year, or each 12-month period, and the employee was eligible to earn at least three days or 24 hours of sick leave or paid time off within nine months of employment. If an employer modifies the accrual method used in the policy it had in place prior to January 1, 2015, the employer shall comply with any accrual method set forth in subdivision (b) or provide the full amount of leave at the beginning of each year of employment, calendar year, or 12- month period. This section does not prohibit the employer from increasing the accrual amount or rate for a class of employees covered by this subdivision. (3) Notwithstanding any other law, sick leave benefits provided pursuant to the provisions of Sections 19859 to 19868.3, inclusive, of the Government Code, or annual leave benefits provided pursuant to the provisions of Sections 19858.3 to 19858.7, inclusive, of the Government Code, or by provisions of a memorandum of understanding reached pursuant to Section 3517.5 that incorporate or supersede provisions of Section 19859 to 19868.3, inclusive, or Sections 19858.3 to 19858.7, inclusive of the Government Code, meet the requirements of this section. (g) (1) Except as specified in paragraph (2), an employer is not required to provide compensation to an employee for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from employment. (2) If an employee separates from an employer and is rehired by the employer within one year from the date of separation, previously accrued and unused paid sick days shall be reinstated. The employee shall be entitled to use those previously accrued and unused paid sick days and to accrue additional paid sick days upon rehiring, subject to the use and accrual limitations set forth in this section. An employer is not required to reinstate accrued paid time off to an employee that was paid out at the time of termination, resignation, or separation of employment.
(h) An employer may lend paid sick days to an employee in advance of accrual, at the employer’s discretion and with proper documentation.
(i) An employer shall provide an employee with written notice that sets forth the amount of paid sick leave available, or paid time off leave an employer provides in lieu of sick leave, for use on either the employee’s itemized wage statement described in Section 226 or in a separate writing provided on the designated pay date with the employee’s payment of wages. If an employer provides unlimited paid sick leave or unlimited paid time off to an employee, the employer may satisfy this section by indicating on the notice or the employee’s itemized wage statement “unlimited.” The penalties described in this article for a violation of this subdivision shall be in lieu of the penalties for a violation of Section 226. This subdivision shall apply to employers covered by Wage Order 11 or 12 of the Industrial Welfare Commission only on and after January 21, 2016.
(j) An employer has no obligation under this section to allow an employee’s total accrual of paid sick leave to exceed 48 hours or 6 days, provided that an employee’s rights to accrue and use paid sick leave are not limited other than as allowed under this section.
(k) An employee may determine how much paid sick leave he or she needs to use, provided that an employer may set a reasonable minimum increment, not to exceed two hours, for the use of paid sick leave.
(l) For the purposes of this section, an employer shall calculate paid sick leave using any of the following calculations:
(1) Paid sick time for nonexempt employees shall be calculated in the same manner as the regular rate of pay for the workweek in which the employee uses paid sick time, whether or not the employee actually works overtime in that workweek. (2) Paid sick time for nonexempt employees shall be calculated by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods of the prior 90 days of employment. (3) Paid sick time for exempt employees shall be calculated in the same manner as the employer calculates wages for other forms of paid leave time.

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 5/7 (m) If the need for paid sick leave is foreseeable, the employee shall provide reasonable advance notification. If the need for paid sick leave is unforeseeable, the employee shall provide notice of the need for the leave as soon as practicable. (n) An employer shall provide payment for sick leave taken by an employee no later than the payday for the next regular payroll period after the sick leave was taken. (o) The State Department of Social Services, in consultation with stakeholders, shall convene a workgroup to implement paid sick leave for in-home supportive services providers as specified in this section. This workgroup shall finish its implementation work by November 1, 2017, and the State Department of Social Services shall issue guidance such as an all-county letter or similar instructions by December 1, 2017. (p) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the State Department of Social Services may implement, interpret, or make specific this section by means of an all-county letter, or similar instructions, without taking any regulatory action.

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

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 6/7 effective date of this section, shall be considered employees of that taxpayer for purposes of this subdivision.
(c) (1) Following the implementation of the minimum wage increase specified in subparagraph (F) of paragraph (2) of subdivision (b), on or before August 1 of that year, and on or before each August 1 thereafter, the Director of Finance shall calculate an adjusted minimum wage. The calculation shall increase the minimum wage by the lesser of 3.5 percent and the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted United States Consumer Price Index for Urban Wage Earners and Clerical Workers (U.S. CPI-W). The result shall be rounded to the nearest ten cents ($0.10). Each adjusted minimum wage increase calculated under this subdivision shall take effect on the following January 1. (2) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W is negative, there shall be no increase or decrease in the minimum wage pursuant to this subdivision on the following January 1.
(3) (A) Notwithstanding the implementation timing described in paragraph (1) of this subdivision, if the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W exceeds 7 percent in the first year that the minimum wage specified in subparagraph (F) of paragraph (1) of subdivision (b) is implemented, the indexing provisions described in paragraph (1) of this subdivision shall be implemented immediately, such that the indexing will be effective on the following January 1.
(B) If the rate of change in the averages of the most recent July 1 to June 30, inclusive, period over the preceding July 1 to June 30, inclusive, period for the United States Bureau of Labor Statistics nonseasonally adjusted U.S. CPI-W exceeds 7 percent in the first year that the minimum wage specified in subparagraph (F) of paragraph (1) of subdivision (b) is implemented, notwithstanding any other law, for employers with 25 or fewer employees the minimum wage shall be set equal to the minimum wage for employers with 26 or more employees, effective on the following January 1, and the minimum wage increase specified in subparagraph (F) of paragraph (2) of subdivision (b) shall be considered to have been implemented for purposes of this subdivision. (d) (1) On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is fifteen dollars ($15) per hour pursuant to paragraph (1) of subdivision (b), to ensure that economic conditions can support a minimum wage increase, the Director of Finance shall annually make a determination and certify to the Governor and the Legislature whether each of the following conditions is met:
(A) Total nonfarm employment for California, seasonally adjusted, decreased over the three-month period from April to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in March, as reported by the Employment Development Department.
(B) Total nonfarm employment for California, seasonally adjusted, decreased over the six-month period from January to June, inclusive, prior to the July 28 determination.

This calculation shall compare seasonally adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in December, as reported by the Employment Development Department.
(C) Retail sales and use tax cash receipts from a 3.9375-percent tax rate for the July 1 to June 30, inclusive, period ending one month prior to the July 28 determination is less than retail sales and use tax cash receipts from a 3.9375-percent tax rate for the July 1 to June 30, inclusive, period ending 13 months prior to the July 28 determination.

The calculation for the condition specified in this subparagraph shall be made as follows:
(i) The State Board of Equalization shall publish by the 10th of each month on its Internet Web site the total retail sales (sales before adjustments) for the prior month derived from their daily retail sales and use tax reports.

10/23/23, 5:32 PM SB 3 Senate Bill – CHAPTERED
www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sb_3_bill_20160404_chaptered.htm 7/7 (ii) The State Board of Equalization shall publish by the 10th of each month on its Internet Web site the monthly factor required to convert the prior month’s retail sales and use tax total from all tax rates to a retail sales and use tax total from a 3.9375- percent tax rate.
(iii) The Department of Finance shall multiply the monthly total from clause (i) by the monthly factor from clause (ii) for each month.
(iv) The Department of Finance shall sum the monthly totals calculated in clause (iii) to calculate the 12-month July 1 to June 30, inclusive, totals needed for the comparison in this subparagraph.
(2) (A) On or before July 28, 2017, and on or before every July 28 thereafter until the minimum wage is fifteen dollars ($15) per hour pursuant to paragraph (1) of subdivision (b), to ensure that the state General Fund fiscal condition can support the next scheduled minimum wage increase, the Director of Finance shall annually make a determination and certify to the Governor and the Legislature whether the state General Fund would be in a deficit in the current fiscal year, or in either of the following two fiscal years.
(B) For purposes of this subdivision, deficit is defined as a negative balance in the Special Fund for Economic Uncertainties, as provided for in Section 16418 of the Government Code, that exceeds, in absolute value, 1 percent of total state General Fund revenue and transfers, based on the most recent Department of Finance estimates required by Section 12.5 of Article IV of the California Constitution. For purposes of this subdivision, the estimates shall include the assumption that only the minimum wage increases scheduled for the following calendar year pursuant to subdivision (b) will be implemented.
(3) (A) (i) If, for any year, the condition in either subparagraph (A) or (B) of paragraph (1) is met, and if the condition in subparagraph (C) of paragraph (1) is met, the Governor may, on or before August 1 of that year, notify the Legislature of an initial determination to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year.
(ii) If the Director of Finance certifies under paragraph (2) that the state General Fund would be in a deficit in the current fiscal year, or in either of the following two fiscal years, the Governor may, on or before August 1 of that fiscal year, notify the Legislature of an initial determination to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year. (B) If the Governor provides notice to the Legislature pursuant to subparagraph (A), the Governor shall, on September 1 of any such year, make a final determination whether to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year. The determination to temporarily suspend the minimum wage increases scheduled pursuant to subdivision (b) for the following year shall be made by proclamation.
(C) The Governor may temporarily suspend scheduled minimum wage increases pursuant to clause (ii) of subparagraph (A) no more than two times. (D) If the Governor makes a final determination to temporarily suspend the scheduled minimum wage increases pursuant to subdivision (b) for the following year, all dates specified in subdivision (b) that are subsequent to the September 1 final determination date shall be postponed by an additional year.

O
95

Supplemental Employee Salary Schedule
Classification Class Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Accessibility and Process Improvement Manager 9933 333 53.55 $ 53.55 $ 53.55 $ 53.55 $ 66.95 $ - $ - $ - $ - $ Accounting Asssistant I 941400 400 22.45 $ 23.63 $ 24.86 $ 26.18 $ 27.55 $ - $ - $ - $ - $ Accounting Asssistant II 9234 402 23.64 $ 24.89 $ 26.20 $ 27.58 $ 29.03 $ - $ - $ - $ - $ Administrative Aide I 9172 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Administrative Aide II 9371 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Administrative Assistant III 943700 405 25.54 $ 26.89 $ 28.30 $ 29.79 $ 31.35 $ - $ - $ - $ - $ Administrative Specialist 9472 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Adult Sports Official 9265 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Aquatics Specialist* 9461 908 19.50 $ 19.99 $ 20.49 $ 21.00 $ 21.53 $ 22.07 $ 22.62 $ 23.19 $ 23.77 $ Assistant City Attorney 9473 997 78.13 $ - $ - $ - $ - $ - $ - $ - $ - $ Business Analyst 922302 300 38.80 $ 38.80 $ 38.80 $ 38.80 $ 48.50 $ - $ - $ - $ - $ Childcare Aide Emergency Sub Afternoon* 91615 970 #REF! #REF! 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.19 $ 23.76 $ 24.36 $ Childcare Aide Emergency Sub Morning* 91619 971 #REF! #REF! 25.22 $ 25.85 $ 26.49 $ 27.15 $ 27.83 $ 28.52 $ 29.24 $ Childcare Aide* 9161 900 #REF! #REF! 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Childcare Teacher Emergency Sub Afternoon* 92625 972 21.88 $ 22.43 $ 22.99 $ 23.56 $ 24.15 $ 24.75 $ 25.38 $ 26.01 $ 26.66 $ Childcare Teacher Emergency Sub Morning* 92629 973 26.25 $ 26.91 $ 27.59 $ 28.28 $ 28.98 $ 29.70 $ 30.45 $ 31.22 $ 32.00 $ Childcare Teacher* 9262 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Commissioner 9861 990 80.00 $ - $ - $ - $ - $ - $ - $ - $ - $ Engineering Consultant 9332 980 50.00 $ 51.56 $ 55.00 $ 65.00 $ 75.00 $ - $ - $ - $ - $ Facilities Aide Farmer's Market 9292 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Facilities Aide Pool 9293 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Facilities Assistant 9264 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Facilities Specialist 9463 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Facility Host 9162 900 16.00 $ 16.40 $ 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Fire Intern 9151 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Flood Control Technician 9287 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ GIS Technician 9231 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ Hazardous Materials Team Business Manager 9651 996 28.00 $ 29.00 $ 30.00 $ - $ - $ - $ - $ - $ - $ Head Childcare Teacher Emergency Sub Afternoon* 93605 974 24.38 $ 24.99 $ 25.61 $ 26.25 $ 26.91 $ 27.59 $ 28.28 $ 28.99 $ 29.71 $ Head Childcare Teacher Emergency Sub Morning* 93609 975 29.25 $ 29.99 $ 30.74 $ 31.50 $ 32.30 $ 33.11 $ 33.93 $ 34.79 $ 35.66 $ Head Childcare Teacher* 9360 908 19.50 $ 19.99 $ 20.49 $ 21.00 $ 21.53 $ 22.07 $ 22.62 $ 23.19 $ 23.77 $ Head Lifeguard* 9351 904 #REF! 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Human Resources Intern 91702 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Human Resources Manager 926301 340 57.34 $ 57.34 $ 57.34 $ 57.34 $ 71.66 $ - $ - $ - $ - $ Human Resources Specialist 932401 261 30.84 $ 32.46 $ 34.18 $ 35.98 $ 37.86 $ - $ - $ - $ - $ Intern I 9111 900 16.00 $ 16.40 $ 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Intern II 9211 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Intern III 9311 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Intern IV 9411 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ IT Assistant Help Desk 9232 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ Laboratory Analyst (SBP) 942301 484 32.84 $ 34.56 $ 36.39 $ 38.30 $ 40.31 $ 42.44 $ 44.68 $ 47.03 $ 49.50 $ Landscape Inspector 9282 914 22.50 $ 23.06 $ 23.64 $ 24.23 $ 24.84 $ 25.46 $ 26.10 $ 26.75 $ 27.42 $ Lead Parking Attendant 9471 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Lifeguard Dock Pay* 92519 900 16.00 $ 16.40 $ 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Lifeguard* 9251 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Open Space Technician 9289 902 #REF! 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Parking Ambassador 9271 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Parking Enforcement Officer 9266 405 25.54 $ 26.89 $ 28.30 $ 29.79 $ 31.35 $ - $ - $ - $ - $ Parks Maintenance Aide I 9182 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Parks Maintenance Aide II 9281 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Rec Cashier* 9171 900 16.00 $ 16.40 $ 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Recording Secretary 9272 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Recreation Services Leader I* 91600 900 16.00 $ 16.40 $ 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Recreation Services Leader II* 92600 904 17.50 $ 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Skate Park Ambassador* 9290 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ SNAP 9352 910 20.50 $ 21.01 $ 21.54 $ 22.08 $ 22.63 $ 23.20 $ 23.78 $ 24.37 $ 24.98 $ Special Swim Instructor* 9369 906 #REF! #REF! 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Swim Instructor* 9263 904 #REF! 17.94 $ 18.39 $ 18.85 $ 19.32 $ 19.80 $ 20.30 $ 20.81 $ 21.33 $ Transit Coordinator 944406 408 27.61 $ 29.06 $ 30.59 $ 32.20 $ 33.90 $ - $ - $ - $ - $ Tree Care Specialist I 9192 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Tree Care Specialist II 9294 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Wastewater Intern 91301 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Water Quality Lab Aide 9141 902 16.50 $ 16.91 $ 17.33 $ 17.76 $ 18.20 $ 18.66 $ 19.13 $ 19.61 $ 20.10 $ Water Treatment Plant Intern 91302 906 18.50 $ 18.96 $ 19.43 $ 19.92 $ 20.42 $ 20.93 $ 21.45 $ 21.99 $ 22.54 $ Youth Sports Official* 9261 900 16.00 $ 16.40 $ 16.81 $ 17.23 $ 17.66 $ 18.10 $ 18.55 $ 19.01 $ 19.49 $ Key
Blue = P&R Positions
* = Classifications that work with children (AB
218 doesn't apply)

Item 5i
Department: Public Works
Cost Center: 6102
For Agenda of: 12/5/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Hai Nguyen, Senior Civil Engineer
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR THE TANK FARM LIFT

STATION DISCHARGE PIPE REPLACEMENT PROJECT,
SPECIFICATION NO. 2001050

RECOMMENDATION

1. Award the construction contract for Tank Farm Lift Station Discharge Pipe Replacement, Specification Number 2001050, to MGE Underground Inc. in the amount of $215,853; and

2. Approve a budget transfer of $76,000 from the Sewer Fund Undesignated Capital Account (Completed Projects) to the project account; and

3. Authorize the City Engineer to execute Contract Change Orders within the available project budget of $276,000.

POLICY CONTEXT
On May 17, 2022, Council approved a Purchasing Policy Update to the Financial Management Manual that required Council approval for Public Projects that cost over $200,000.

DISCUSSION
On July 28, 2023, the City Manager authorized staff to advertise construction bids for the Tank Farm Lift Station Discharge Pipe Replacement (Attachment A) and authorized the Director of Public Works to award the contract if the lowest responsible bid was within the Engineer’s Estimate of $170,000.

The project originally went out to bid in August 2023, with bid opening on August 31, 2023. During the first advertising period, two bids were received and publicly opened.

RCH Construction was the apparent lowest bidder with a bid of $282,231. This bid exceeds the Engineer’s estimate of $170,000 by $112,231. Due to the bid results significantly exceeding the estimate, the City Manager approved rejecting all bids and readvertising the project. Furthermore, to reduce project costs, staff modified the project scope by removing the requirement for the contractor to complete sewer bypass pumping (Attachment B).

Item 5i
During the second advertising period, two bids were received (Attachment C) and opened on October 31, 2023, and MGE Underground Inc. (MGE) was the apparent lowest bidder with a bid of $215,853. This bid is greater than the Engineer’s estimate by $45,853, but less than the bid amount received during of the first advertisement. Generally, the increase in costs above the Engineer’s estimate may be attributed to recent economic trends leading to overall cost increases in construction related to high demand for work with a limited pool of qualified contractors.

Rank Contractor Bid Total
1 MGE Underground Inc $215,853
2 Ellison Environment Inc $243,429
Award Recommendation
Staff reviewed MGE’s bid proposal and determined that the bid from MGE required clarification to determine the responsiveness of the bid requirements stated in Section 2-

1.33 of the City Standard Specifications, which requires all spaces for bid prices and totals filled in. MGE provided the total prices for Bid Items 7 and 8, but no item price was written.

MGE was given an opportunity to respond with information on why its bid should be considered responsive (Attachment D). MGE responded and provided the item prices (Attachment E) that are arithmetically consistent with the original total prices for Bid Items 7 and 8 and staff concluded that all requirements as established in Section 2-1.33 of the City Standard Specifications have been met.

The Contractor’s references, license, and registration with the Department of Industrial Relations have been verified. Staff is recommending that the project be awarded to MGE (Attachment F).

Previous Council or Advisory Body Action
This project was identified in the 2023-25 Financial Plan that was approved by Council.

Public Engagement
Public engagement was conducted during the initial identification of this project to be included in the 2023-25 Financial Plan.

CONCURRENCE
There is concurrence from the Utilities Department to award the project to the lowest responsive bid based on the final review of the bid documents.

ENVIRONMENTAL REVIEW
The project is categorically exempt from environmental review under Section 15302 Class 2(c) of the California Environmental Quality Act (CEQA) Guidelines because the replacement of discharge piping would result in no expansion of use. Section 15302 Class 2(c) specifies that “Replacement or reconstruction of existing utility systems and/or

Item 5i
facilities involving negligible or no expansion of use” is categorically exempt from environmental review. A Notice of Exemption has been filed through the Community Development Department.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Sewer Fund $627,921 $276,000 $351,921
Total $627,921 $276,000 $351,921
Tank Farm Lift Station Discharge Pipe Replacement (2001050) Project Account
(2001050)
Sewer Fund
Undesignated Capital
(Completed Projects)
Project Total
Costs
Total Project Bid $200,000 $15,853 $215,853
Contingencies
(25%) $0 $54,647 $54,647
Material Testing $0 $5,000 $5,000
Printing $0 $500 $500
Total Cost of
Project $200,000 $76,000 $276,000
Current Project
Balance $200,000 $427,921
Remaining Balance $0 $351,921
Funding for this project is available in the Project Account (2001050) which has a current balance of $200,000. Staff is recommending a transfer of $76,000 from the Sewer Fund Undesignated Capital (Completed Projects) to fund this project.

ALTERNATIVES
The City Council could deny the request to award the project. Staff does not recommend this option, as discharge piping included in this project will continue to deteriorate and pose a high risk of catastrophic failure, requiring expensive repairs.

Item 5i

ATTACHMENTS
A - City Manager Report Authorizing Advertising
B - City Manager Report Authorizing Re-advertising
C - Bid Results
D - MGE Underground, Inc. Bid Responsiveness Letter
E - MGE Underground, Inc. Bid Item List
F - Draft Construction Agreement with MGE Underground, Inc.

City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved ACM Community Services Shelly 7/28/23
Reviewer Routing List Reviewer Name Date Reviewed
City Engineer BN 7/26/23
City Attorney SMS 7/26/23
Utilities CL 7/26/23
Finance nh 7/26/23
Department Analyst AA 7/24/23
CIP Manager GC 7/24/23
July 24, 2023
FROM: Matt Horn, Director of Public Works G. Cruce
for MH 7/26/2023
PREPARED BY: Hai Nguyen, Senior Civil Engineer
SUBJECT: Tank Farm Lift Station Discharge Pipe Replacement, Specifications No. 2001050

RECOMMENDATION

1. Approve the projects plans (Attachment A) and specifications (Attachment B) for Tank Farm Lift Station Discharge Pipe Replacement, Specification No. 2001050 (Project); and

2. Authorize staff to advertise for bids; and

3. Authorize the Director of Public Works to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $170,000.

DISCUSSION
Background
Replacements of pumps, valves, fittings, electrical components, telemetry, and related infrastructure are an ongoing need for reliable wastewater lift stations. The purpose of this program is to replace major assets needed at lift stations to extend the life of the infrastructure without having to replace the entire facility.

The Project
The Tank Farm Lift Station Discharge Pipe Replacement (Project) proposes replacement of discharge piping at the Tank Farm Lift Station originally installed in 2008. With the addition of East Airport and Avila Ranch Annexations, the lift station has experienced increased sewer flows that have also increase corrosion problems within the wet well. The corrosive gas within the wet well has compromised the protective coating of the existing ductile iron pipe and is rapidly corroding the discharge piping of the four existing sewer pumps. Stainless steel pipe is being proposed to replace the ductile iron discharge piping for a longer useful life, and these minor

Tank Farm Lift Station Discharge Pipe Replacement (2001050) Page 2 improvements will extend the life of the entire sewer facility. Stainless steel is highly resistant to corrosion because a protective layer forms naturally on stainless steel to protect the steel from corrosion and no additional coating is required.

FISCAL IMPACT
Funding for this project is described in the 2023-25 Financial Plan, Capital Improvement Plan (page 412). Account 2001050 has a current balance of $200,000 and is sufficient to support the project costs, estimated at $200,000. This project is funded in full by the Sewer Fund.

Tank Farm Lift Station Discharge Pipe Replacement (2001050) Construction Estimate $170,000
Contingencies (15%) $25,000
Material Testing $5,000
Printing $500
Total Cost of Project $200,000
Total Funding Available (2001050) $200,000
Remaining Balance $0

ALTERNATIVES
Deny or defer approval to advertise. The City Manager may choose to deny or defer the approval to advertise this project. Staff does not recommend this option, as discharge piping included in this project will continue to deteriorate and pose a high risk of catastrophic failure, requiring expensive repairs.

ATTACHMENTS

1. 2001050 Plans

2. 2001050 Specifications
G:\Projects\ActiveProjects\Sewer\2001050 Tank Farm Lift Station\100 Project Control\102 Staff Reports\CMR to Advertise\2001050 CMR to Advertise.docx

City of San Luis Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved City Administration WM 9/22/23
Reviewer Routing List Reviewer Name Date Reviewed
City Engineer BN 9/13/2023
Utilities MB 9-14-2023
City Attorney SMS 9/18/2023
Finance EJ 9/21/23
CIP Administrative Manager BN 9/13/2023
UT Financial Analyst AA 9/13/2023
September 12, 2023
FROM: Matt Horn, Director of Public Works MH 9/15/2023
PREPARED BY: Hai Nguyen, Senior Civil Engineer
SUBJECT: Re-advertise Tank Farm Lift Station Discharge Pipe Replacement, Specifications No. 2001050

RECOMMENDATION

1. Reject all bids and authorize staff to re-advertise the Tank Farm Lift Station Discharge Pipe Replacement, Specification No. 2001050 for bids.

2. Authorize the Director of Public Works to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $170,000.

DISCUSSION
On July 28, 2023, the City Manager authorized inviting bids (Attachment 1) for the Tank Farm Lift Station Discharge Pipe Replacement, Specification Number 2001050. The same action also authorized the Director of Public Works to award the contract if the lowest bid was within the Engineer’s Estimate of $170,000. Two bids were received (Attachment 2) and opened on August 31, 2023, and RCH Construction was the apparent lowest bidder with a bid of $282,231. This bid is greater than the Engineer’s estimate of $170,000 by $112,231.

Rank Contractor Bid Total
1 RCH Construction $282,231
2 Specialty Construction $1,113,222
Staff reviewed the bids and the increase in costs may be attributed to the requirement for contractors to complete sewer bypass pumping during construction operations. Staff is recommending that all bids be rejected, and the project be re-advertised without the requirement for contractors to complete sewer bypass pumping in the contract documents. The Utilities

Tank Farm Lift Station Discharge Pipe Replacement (2001050) Page 2 Department will be responsible for sewer bypass pumping during construction which staff believes will lower costs and result in multiple competitive bids.

FISCAL IMPACT
There is no direct fiscal impact of the recommended action. No additional funding is being requested currently.

Funding for this project is described in the 2023-25 Financial Plan, Capital Improvement Plan (page 412). Account 2001050 has a current balance of $200,000 and is sufficient to support the total project costs, estimated at $200,000. This project is funded in full by the Sewer Fund.

ALTERNATIVES
Deny project re-advertisement. The City Manager may choose to deny approval to re-advertise.

Staff does not recommend this option, as discharge piping included in this project will continue to deteriorate and pose a high risk of catastrophic failure, requiring expensive repairs.

ATTACHMENTS

1. City Manager Authorizing Advertising

2. Bid Results
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/Shared Documents/City Manager Reports/Public Works/2023/CIP Engineering/2001050 Re-advertise Tank Farm Lift Station Discharge Pipe Replacement/2001050 CMR Re-advertise.docx

TANK FARM LIFT STATION DISCHARGE PIPE REPLACEMENT, SPECIFICATION NO. 2001050 Bid Opening: 10/17/2023 UNIT TOTAL UNIT TOTAL
No. ITEM UNIT QUAN PRICE PRICE PRICE PRICE
1 COMPLY WITH OSHA LS 1 $8,179.00 $8,179.00 $6,465.00 $6,465.00 2 VERIFICATION OF PIPE LENGTHS, FITTINGS AND APPURTENANCES LS 1 $11,642.00 $20,008.00 $8,190.00 $8,190.003 PUMP 1 ‐ FITTINGS AND APPURTENANCES REPLACEMENT LS 1 $11,642.00 $11,642.00 $38,083.41 $38,083.414 PUMP 2 ‐ FITTINGS AND APPURTENANCES REPLACEMENT LS 1 $11,642.00 $11,642.00 $38,083.41 $38,083.415 PUMP 3 ‐ FITTINGS AND APPURTENANCES REPLACEMENT LS 1 $11,642.00 $11,642.00 $38,083.44 $38,083.446 PUMP 4 ‐ FITTINGS AND APPURTENANCES REPLACEMENT LS 1 $11,642.00 $11,642.00 $38,083.44 $38,083.447 REMOVE EXISTING AND INSTALL (N) 8" STAINLESS STEEL PIPE LF 81 $1,150.00 $93,150.00 $685.93 $55,560.338 REMOVE EXISTING AND INSTALL (N) CHECK VALVE EA 4 $11,987.00 $47,948.00 $5,220.00 $20,880.00 $215,853.00 $243,429.03
Ellison Environmental
TOTAL PROJECT BID
BASE BID
MGE Underground

City of San Luis Obispo, Public Works, 919 Palm Street, San Luis Obispo, CA, 93401‐3218, 805.781.7200, slocity.org October 20, 2023
MGE Underground Inc.

Michael Jo Goldstein
PO Box 4189
Paso Robles, CA 93447
Subject: Tank Farm Lift Station Discharge Pipe Replacement, Specification No. 2001050 On October 19, 2023, bids were opened for the “Tank Farm Lift Station Discharge Pipe Replacement,” Specification No. 2001050 (“Project”). Staff reviewed MGE Underground Inc.’s (MGE) bid proposal and determined that the bid from MGE requires clarification to determine responsiveness to the bid requirements stated in Section 2‐1.33 of the City Standard Specifications. Bids must have all spaces for bid prices and totals filled in. MGE’s bid proposal requires clarification to the following items:
 The Total price for Bid Item Number 7 (Remove Existing and Install (N) 8” Stainless Steel Pipe) was listed as $93,150; however, no Item Price was written.  The Total price for Bid Item Number 8 (Remove Existing and Install (N) Check Valve) was listed as $47,948; however, no Item Price was written.

Bid Item 7 ‐ Based on the total price of $93,150 and the estimated quantity of 81 LF, the calculated item price would be $1,150/LF.

Bid Item 8 ‐ Based on the total price of $47,948 and the estimated quantity of 4 EA, the calculated item price would be $11,987/EA.

In response, MGE has an opportunity to clarify the reason for the above bid discrepancy, including an action for the City to consider regarding the item price. This information will be evaluated prior to any determination.

MGE may submit written material to the City clarifying its bid no later than 5:00 PM, Friday October 27, 2023. If submitted, the written materials will be evaluated and provided to the City Council for consideration. The City Council will make a decision following the review of any submitted materials and you will be notified of that decision.

If you have any questions regarding this matter, please email me at [email protected] or call me at (805) 781‐7108.

Sincerely,
Hai Nguyen, PE
Senior Civil Engineer

1,150.00
11,987.00

1 Nguyen, Hai
From: Jordyn Lundy <[email protected]>
Sent: Monday, October 23, 2023 1:00 PM
To: Nguyen, Hai; Jeremy Gearhart
Cc: Beech, Ryan
Subject: RE: Tank Farm Lift Station Discharge Pipe Replacement, Specification No. 2001050 - Bid Responsiveness
Attachments: MGE Underground Inc_.pdf
This message is from an External Source. Use caution when deciding to open attachments, click links, or respond.

Good afternoon Hai,
I appreciate you catching that and sending it over. I’ve filled in all appropriate/required spaces for MGE’s bid. Please don’t hesitate to reach out if you have any questions or if there is anything else I can help you with.

Please see attached document. Thank you,
Jordyn Lundy
Construction Project Coordinator | Junior Estimator
O: 805‐238‐3510 P: 805‐423‐7473
E: [email protected]
www.mgeunderground.com
From: Nguyen, Hai <[email protected]>
Sent: Monday, October 23, 2023 11:39 AM
To: Jeremy Gearhart <[email protected]>; Jordyn Lundy <[email protected]> Cc: Beech, Ryan <[email protected]>
Subject: FW: Tank Farm Lift Station Discharge Pipe Replacement, Specification No. 2001050 ‐ Bid Responsiveness Jeremy, Jordyn,
Please see attached letter regarding your bid proposal for the Tank Farm Lift Station Discharge Pipe Replacement Project. Staff reviewed MGE Underground Inc.’s (MGE) bid proposal and determined that the bid from MGE requires clarification to determine responsiveness to the bid requirements stated in Section 2-1.33 of the City Standard Specifications. Bids must have all spaces for bid prices and totals filled in. MGE’s bid proposal requires clarification to the following items:
 The Total price for Bid Item Number 7 (Remove Existing and Install (N) 8” Stainless Steel Pipe) was listed as $93,150; however, no Item Price was written.
 The Total price for Bid Item Number 8 (Remove Existing and Install (N) Check Valve) was listed as $47,948; however, no Item Price was written.

MGE may submit written material to the City clarifying its bid no later than 5:00 PM, Friday October 27, 2023.

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

WITNESSETH:

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

ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of

TANK FARM LIFT STATION DISCHARGE PIPE REPLACEMENT,
SPECIFICATION NO. 2001050
in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.

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

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

Item Item Estimated Item Price Total
No. SS(1) Description Quantity (in figures) (in figures) 1 5,7 COMPLY WITH OSHA 1 ‐‐‐  $8,179.00
2 77 VERIFICATION OF PIPE LENGTHS,
FITTINGS AND APPURTENANCES 1 ‐‐‐  $20,008.00
3 77 PUMP 1 ‐ FITTINGS AND
APPURTENANCES REPLACEMENT 1 ‐‐‐  $11,642.00
4 77 PUMP 2 ‐ FITTINGS AND
APPURTENANCES REPLACEMENT 1 ‐‐‐  $11,642.00
5 77 PUMP 3 ‐ FITTINGS AND
APPURTENANCES REPLACEMENT 1 ‐‐‐  $11,642.00
6 77 PUMP 4 ‐ FITTINGS AND
APPURTENANCES REPLACEMENT 1 ‐‐‐  $11,642.00
7 77 REMOVE EXISTING AND INSTALL (N)
8" STAINLESS STEEL PIPE 81 $1,150.00  $93,150.00
DocuSign Envelope ID: 450DCB96-ABBC-4EBD-8161-A9DFD49958DE

8 77 REMOVE EXISTING AND INSTALL (N)
CHECK VALVE 4 $11,987.00  $47,948.00
BID TOTAL: $ 215,853.00
Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract.

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

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

1. Notice to Bidders and Information for Bidders

2. Standard Specifications and Engineering Standards

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

4. Caltrans Standard Specifications and Standard Plans 2015

5. Accepted Bid and Bid Bond

6. List of Subcontractors

7. Public Contract Code Sections 10285.1 Statement

8. Public Contract Code Section 10162 Questionnaire

9. Public Contract Code Section 10232 Statement

10. Labor Code Section 1725.5 Statements

11. Bidder Acknowledgements

12. Qualifications

13. Non-collusion Declaration

14. Agreement and Bonds

15. Insurance Requirements and Forms
ARTICLE IV INDEMNIFICATION: The Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with the Contractor’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both the City and the Contractor, or should the City otherwise find the Contractor’s legal counsel unacceptable, then the Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful DocuSign Envelope ID: 450DCB96-ABBC-4EBD-8161-A9DFD49958DE

performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

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

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

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

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

ATTEST:
___________________________________
Teresa Purrington, City Clerk

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

APPROVED AS TO FORM
___________________________________
J. Christine Dietrick
City Attorney
CONTRACTOR:

MGE Underground, Inc.
________________________________
Michaeljoe Goldstein
Chief Executive Officer
________________________________
Elizabeth Summer Goldstein
Chief Financial Officer
DocuSign Envelope ID: 450DCB96-ABBC-4EBD-8161-A9DFD49958DE

Item 5j
Department: Public Works
Cost Center: 6004
For Agenda of: 12/5/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Anthony Ramos, Engineer III
SUBJECT: AWARD A CONSTRUCTION CONTRACT FOR THE RESERVOIR NO. 2 COVER REPLACEMENT PROJECT, SPECIFICATION 2000034-2

RECOMMENDATION

1. Authorize the City Manager to award a Construction Contract to Layfield USA Corporation in the amount of $2,891,917.26 for the Reservoir No. 2 Cover Replacement project, Specification Number 2000034-2; and

2. Authorize the appropriation and budget transfers to the Reservoir No. 2 Cover Replacement Project account (2000034) as follows:
a. $516,031 from Water Fund Unreserved Working Capital; and b. $60,379.26 from Water Fund Undesignated Capital (Completed Projects); and

3. Authorize the City Engineer to approve Contract Change Orders up to the available project budget; and

4. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Unreserved Working Capital Fund to support the Reservoir No. 2 Cover Replacement, Specification Number 2000034-2.”

POLICY CONTEXT
Per the May 16, 2023 Council Agenda Report, the Reservoir No. 2 Cover Replacement Project (Project) must be awarded by Council if the construction contract is higher than the publicly disclosed funding amount.

DISCUSSION
Background
Reservoir 2 is the City’s largest treated water storage reservoir with a capacity of approximately 7.50 million gallons and provides supply for both drinking and firefighting uses. The reinforced concrete reservoir has been in operation since its original construction in the early 1940s. The reservoir has two separate basins that include a floating cover and plastic liner for each basin designed to protect the water from contamination and reduce evaporation from the reservoir. The Project will replace the existing floating cover and liner that have reached the end of their service life and upgrade water quality sampling instrumentation and the chlorine feed system.

Item 5j
On May 16, 2023, City Council authorized the invitation of bids for the Reservoir No. 2 Cover Replacement. On July 20, 2023, a bid opening was held where one bid was received by Layfield USA Corporation at a price of $3,264,881.00 (Attachment A).

On September 22, 2023, the City Manager authorized staff to reject all bids and readvertise the Project (Attachment B). After review of the bid results from the first project advertisement, staff split the bid items into a base bid and an additive alternative “A”. The base bid includes all work required to replace the floating cover, reservoir liner, and stormwater discharge pumps. Additive alternative “A” includes the chlorine analyzer system, chemical metering pumps and delivery system, tank mixers, the instrumentation and controls, and the electrical work required to complete these items. The goal of the base bid and additive alternative was to solicit responsive bids within the publicly disclosed funding amount to begin repairs at the beginning of next year. While the intent of this action was to complete all work items of the original project plan with the awarded contract, the priority is to replace the cover and liner since the existing cover and liner will likely not last another year.

The project went out to bid a second time on October 12, 2023, including the base bid and an additive alternative A. On November 2, 2023, a bid opening was held where a bid was submitted by Layfield USA Corporation and came in at a price of $2,891,917.26 for the total bid (Base Bid + Add. Alt. “A”) which was over the engineer's estimate of $2,403,000 for the total bid (Attachment C).

Table 1: Bid results for bid opening on November 2, 2023 Engineer’s Estimate Layfield USA Corporation
Base Bid $2,232,000 $2,498,107.90
Additive Alternative A $171,000 $393,809.36
Total Bid (Base + Add Alt. “A”) $2,403,000 $2,891,917.26 The bid price may be attributed to overall construction cost escalation as well as a lack of competitiveness in this specialized area of construction as demonstrated by the number of bids received for both bid openings.

Although the bid from Layfield USA Corporation was over the engineer’s estimate, staff is recommending the award of the contract (Attachment D) and transferring $516,031 from Water Fund Unreserved Working Capital to the project account and $60,379.26 from Water Fund Undesignated Capital (Completed Projects) to the project account to fund the Project as described in the Fiscal Impact section of this report. Staff recommends award of the Project to ensure the cover is replaced before November 2024 due to seasonal demands of the water treatment system.

Previous Council or Advisory Body Action
On May 16, 2023, the City Council authorized staff to advertise for bids for the Reservoir No. 2 Cover Replacement project. Award of the project contract requires consideration and approval by Council if the construction bids are higher than the publicly disclosed funding limit.

Item 5j
Public Engagement
This project was included in the public engagement process as a part of the 2021-23 Financial Plan. No specific public engagement was performed for this project.

CONCURRENCE
The Public Works Department and Utilities Department concur with the recommendations in this report.

ENVIRONMENTAL REVIEW
This project is categorically exempt from environmental review pursuant to section 15301 of the CEQA Guidelines (Existing Facilities) since it is a maintenance and replacement project. A Notice of Exemption has been filed through the Community Development Department.

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

Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Water Fund –
Reservoir No. 2
Cover Replacement
(2000034, Task 01)
$2,752,007 $0 $0
Water Fund –
Unreserved
Working Capital
$12,545,850 $516,031 $12,029,819
Water Fund –
Undesignated
Capital (Completed
Projects)
$296,224.24 $60,379.26 $235,844.98
Total $15,594,081.24 $576,410.26 $12,265,663.98 $0

Item 5j
Reservoir 2 Cover Replacement, Specification No. 2000034-2 Reservoir
Maintenance
Account
(2000034, Task
01)
Unreserved
Working
Capital
Water Completed
Projects
(601.9501.71501)
Project Total
Costs
Total Project Bid $2,315,507 $516,031 $60,379.26 $2,891,917.26 Contingencies (15%) $434,000 $0 $0 $434,000
Printing: $2,500 $0 $0 $2,500
Total Project Cost $2,752,007 $516,031 $60,379.26 $3,328,417.26 Current Project Balance $2,752,007 $12,545,850 $296,224.24 Remaining Balance $0 $12,029,819 $235,844.98
The Reservoir 2 Cover Replacement Project had a $714,126 project balance after appropriations in FY 2019-20 and FY 2020-21. Additional funding was appropriated in FY 2021-22 for $10,000, in FY 2022-23 for $950,000, and in FY 2023-24 for $200,000. To support the project cost, staff transferred $999,279.70 from the Water Fund Undesignated Capital account based on the available balance described in the Council Report to advertise the project (Item 6h, 5/16/2023). After all design expenses have been expended or obligated, the Reservoir 2 Cover Replacement Project has an available balance of $2,752,007.

Staff are requesting approval for $576,410.26 more for the Reservoir 2 Cover Replacement project, due to bids exceeding the publicly disclosed funding limit. Staff are proposing that this additional funding be transferred from the following accounts:

1. $516,031 is being requested from Water Fund Unreserved Working Capital (Draft Resolution - Attachment E). This amount will be offset by a deferral of the Edna Saddle Water Tank Coating project identified in the 2023-25 Financial Plan for FY2024-25. Resolution 11440 previously appropriated $483,969 from Water Fund Unreserved Working Capital for the Johnson Waterline Replacement project and was also offset by Edna Saddle Water Tank Coating project.

2. $60,379.26 is being requested from the Water Fund Undesignated Capital account, which represents cost savings from projects that have been completed underbudget.

Item 5j

ALTERNATIVES

1. Deny the award of the construction contract and defer the project for readvertisement in the Winter of 2024. The City Council may choose to not award the contract at this time, reject all bids, and defer the project for re-advertisement in Winter of 2024. Staff does not recommend this option as it would further delay construction and risk catastrophic failure. The risk also includes that project costs continue to rise resulting in an increased bid price.

2. Deny the award of the construction contract and cancel or defer the project to a future budget cycle. The City Council may choose to not award the contract, reject all bids, cancel the project entirely, or defer the project for a future budget cycle. Staff does not recommend this option because the condition of the floating cover is in poor condition and needs to be repaired prior to failure.

ATTACHMENTS
A - Bid Results from 07-20-2023
B - City Manager Report Authorizing Re-advertising
C - Bid Results from 11-02-2023
D - Draft Agreement with Layfield USA Corporation
E - Draft Resolution authorizing use of Water Fund Unreserved Working Capital to support the Reservoir No. 2 Cover Replacement

Item No. SS Item Description Unit of Measure Estimated Quantity Unit Price Total 1 7, 013233,
019310 GENERAL CONDITIONS/MOBILIZATION LS 1 $ 69,548.00 69,548.00 $ 2 334700,
334713 REMOVE AND DISPOSE OF EXISTING LINER AND COVER LS 1 $ 185,328.00 185,328.00 $ 3 334713 CONDUCTIVE GEOTEXTILE UNDERLAYMENT SYSTEM LS 1 $ 153,985.00 153,985.00 $ 4 334713 RESERVOIR LINER SYSTEM LS 1 $ 386,796.00 386,796.00 $ 5 334700 FLOATING RESERVOIR COVER WITH EIGHT (8) ACCESS HATCHES, AND RAINWATER COLLECTION/DISPOSAL SYSTEM LS 1 $ 1,275,361.00 1,275,361.00 $ 6 431000 TANK MIXER EA 2 $ 72,081.00 36,040.50 $
7 TS DIV. 26,
TS DIV. 40 CHEMICAL METERING PUMPS AND DELIVER SYSTEM LS 1 $ 220,187.00 220,187.00 $ 8 TS DIV. 26,
TS DIV. 40 CHLORINE ANALYZER SYSTEM LS 1 $ 63,157.00 63,157.00 $ 9 TS DIV. 26 ELECTRICAL LS 1 $ 461,410.00 461,410.00 $
10 TS DIV. 26,
TS DIV. 40 INSTRUMENTATION AND CONTROLS LS 1 $ - - $
11 334700 FLOATING COVER INFLATIN/INSPECTION LS 1 $ 184,713.00 184,713.00 $ 12 334700 DISINFECTION LS 1 $ 91,005.00 91,005.00 $
13 7 OSHA COMPLIANCE LS 1 $ - - $
14 334700 REPLACE CONCRETE ANCHOR BOLTS FOR LINER/COVER EA 50 $ 8,125.00 162.50 $ 15 334700 REPLACE SS BATTEN BARS LF 50 $ 2,075.00 41.50 $ 16 030130 CONCRETE CRACK REPAIR LF 50 $ 2,050.00 41.00 $ 17 030130 REPAIR OF SPALLED CONCRETE TO A DEPTH OF TWO (2) INCHES SQFT 100 $ 23,650.00 236.50 $ 18 15 REPLACEMENT FENCE POSTS EA 20 $ 65,410.00 3,270.50 $ Layfield

BASE BID ITEMS
TOTAL PROJECT BID $ 3,264,881.00

City of San Lu is Obispo, City Manager Report
Final City Manager Approval Approver Name Date Approved ACM Community Services WM 9/21/23
Reviewer Routing List Reviewer Name Date Reviewed
Finance EJ 9/22/23
City Attorney SMS (please see
approval note)
9/18/23
Department Analyst Nicole Lindner 9/17/23
City Engineer Brian Nelson 9/15/23
September 7, 2023
FROM: Matt Horn, Director of Public Works MH 9/17/2023
PREPARED BY: Anthony Ramos, Engineer III
SUBJECT: Authorization to Reject All Bids and Re-Advertise the Reservoir No. 2 Cover Replacement Project, Specification No. 2000034-2

RECOMMENDATION
Reject all bids and authorize staff to re-advertise the Reservoir No. 2 Cover Replacement Project for bids with a Base Bid and Additive Alternative.

DISCUSSION
On May 16, 2023, the City Council authorized inviting bids (Attachment A) for the Reservoir No. 2 Cover Replacement Project, Specification Number 2000034-1. The same action also authorized the City Manager to award the contract if the lowest bid was within the publicly disclosed funding amount of $2,500,000. One bid was received (Attachment B) and opened on July 26, 2023; Layfield USA Corporation was the only bidder with a bid of $3,264,881, which is greater than the Publicly Disclosed Funding Amount by $764,881.

Staff is recommending that the bid from Layfield USA Corporation be rejected and the project be re-advertised in September of 2023 with a Base Bid and an Additive Alternative “A” in order to provide additional flexibility to award the project. After bid opening, staff will prepare a recommendation to award the construction contract if the lowest responsible bid is within the publicly disclosed funding amount of $2,500,000 authorized by Council using either:
• TOTAL PROJECT BID, if bid for Base Bid + Add. Alt. “A” is less than $2,500,000; or • BASE BID, if Base Bid is less than $2,500,000 and Base Bid + Add. Alt. “A” is greater than $2,500,000.

Authorization to Reject and Re-Advertise Bids - Res 2 Cover Replacement Page 2 Due to the deteriorating condition of the reservoir’s floating cover, the Base Bid will include all work required to replace the floating cover, reservoir liner, and stormwater discharge pumps. The base bid will also include any electrical and mechanical work within the reservoir that requires the reservoir to be drained. The Additive Alternative will include the chlorine analyzer system, chemical metering pumps and delivery system, tank mixers, the instrumentation and controls, and the electrical work required to complete these items. These items came in significantly higher than the Engineer’s Estimate, so staff believes that separating them into an Additive Alternative will solicit responsive bids within the publicly disclosed funding amount to allow staff to begin needed repairs at the beginning of this next year. The goal is that all elements of the original project plan be completed under the awarded contract, but the priority (as made clear in the Council Agenda Report) is to replace the cover and liner since staff does not believe the existing cover and liner will last another year.

Staff believes this to be the most expeditious route in order to ensure construction can start in early February and be complete by the 2024 winter season.

FISCAL IMPACT
There are no fiscal impacts associated with rejecting all bids. Completing the project fiscal impacts are unchanged as detailed in the Council Agenda Report (See Attachment A).

ALTERNATIVES
Reject All Bids and Cancel Project – The City Manager could reject all bids and decide not to re-advertise. Staff advises against this action, as the condition of the floating cover is in poor condition and needs to be repaired prior to failure.

ATTACHMENTS

1. Attachment A – CAR to Advertise

2. Attachment B – Bid Results
https://slocitycloud.sharepoint.com/sites/SLOHub/Administration/Documents/City Manager Reports/Public Works/2023/CIP Engineering/2000034-2 Reservoir No. 2 Cover Replacement - Reject Bids CMR to Reject and Re-Advertise - Spec 2000034-2.docx

Item No. SS Item Description Unit of Measure Estimated Quantity Unit Price Total 1 7, 013233,
019310 GENERAL CONDITIONS/MOBILIZATION LS 1 $ 14,109.57 14,109.57 $ 2 334700,
334713 REMOVE AND DISPOSE OF EXISTING LINER AND COVER LS 1 $ 211,552.43 211,552.43 $ 3 334713 CONDUCTIVE GEOTEXTILE UNDERLAYMENT SYSTEM LS 1 $ 137,126.65 137,126.65 $ 4 334713 RESERVOIR LINER SYSTEM LS 1 $ 376,039.10 376,039.10 $ 5 334700 FLOATING RESERVOIR COVER WITH EIGHT (8) ACCESS HATCHES, AND RAINWATER COLLECTION/DISPOSAL SYSTEM LS 1 $ 1,391,644.86 1,391,644.86 $ 6 7 OSHA COMPLIANCE LS 1 $ - - $
7 334700 CONCRETE ANCHOR BOLTS FOR LINER/COVER EA 50 $ 7,999.50 159.99 $ 8 334700 SS BATTEN BARS LF 50 $ 1,971.50 39.43 $
9 30130 CONCRETE CRACK REPAIR LF 50 $ 1,920.00 38.40 $
10 30130 REPAIR OF SPALLED CONCRETE TO A DEPTH OF TWO (2) INCHES SQFT 100 $ 22,535.00 225.35 $ 11 15 FENCE POSTS EA 20 $ 64,431.00 3,221.55 $
12 334700 FLOATING COVER INFLATION/INSPECTION LS 1 $ 179,053.99 179,053.99 $ 13 334700 DISINFECTION LS 1 $ 89,724.30 89,724.30 $
14 431000 TANK MIXER EA 2 $ 118,670.38 59,335.19 $
15 TS DIV. 26,
TS DIV. 40 CHEMICAL METERING PUMPS AND DELIVER SYSTEM LS 1 $ 213,547.25 213,547.25 $ 16 TS DIV. 26,
TS DIV. 40 CHLORINE ANALYZER SYSTEM LS 1 $ 61,591.73 61,591.73 $ Layfield

BASE BID ITEMS
TOTAL PROJECT BID $ 2,891,917.26
BASE BID $ 2,498,107.90
ADDITIVE ALTERNATIVE A $ 393,809.36

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

WITNESSETH:

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

ARTICLE 1, SCOPE OF WORK: The Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required to complete all the work of construction of
RESERVOIR NO. 2 COVER REPLACEMENT PROJECT, SPEC NO. 2000034-2 in strict compliance with the plans and specifications therefor, including any and all Addenda, adopted by the Owner, in strict compliance with the Contract Documents hereinafter enumerated.

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

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

Item
No.

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

BASE BID ITEMS
1 GENERAL

CONDITIONS/MOBILIZATION
LS 1 --- $14,109.57
2 REMOVE AND DISPOSE OF

EXISTING LINER AND COVER
LS 1 --- $211,552.43
3 CONDUCTIVE GEOTEXTILE

UNDERLAYMENT SYSTEM
LS 1 --- $137,126.65
4 RESERVOIR LINER SYSTEM LS 1 --- $376,039.10
5 FLOATING RESERVOIR COVER
WITH EIGHT (8) ACCESS

HATCHES, AND RAINWATER

COLLECTION/DISPOSAL SYSTEM
LS 1 --- $1,391,644.86
6 OSHA COMPLIANCE LS 1 --- $0
7 CONCRETE ANCHOR BOLTS FOR

LINER/COVER
EA 50 $159.99 $7,999.50
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC

8 SS BATEN BARS LF 50 $39.43 $1,971.50
9 CONCRETE CRACK REPAIR LF 50 $38.40 $1,920.00
10 REPAIR OF SPALLED CONCRETE
TO A DEPTH OF TWO (2) INCHES
SQFT 100 $225.35 $22,535.00
11 FENCE POSTS EA 20 $3,221.55 $64,431.00
12 FLOATING COVER

INFLATION/INSPECTION
LS 1 --- $179,053.99
13 DISINFECTION LS 1 --- $89,724.30
Base Bid $2,498,107.90
Item
No.

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

ADDITIVE ALTERNATIVE A BID ITEMS
14 TANK MIXER EA 2 $59,335.19 $118,670.38
15 CHEMICAL METERING PUMPS

AND DELIVERY SYSTEM
LS 1 --- $213,547.25
16 CHLORINE ANALYZER SYSTEM LS 1 --- $61,591.73
Additive Alternative A $393,809.36
Base Bid $2,498,107.90
BID TOTAL: $2,891,917.26
Payments are to be made to the Contractor in compliance with and subject to the provisions embodied in the documents made a part of this Contract.

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

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

1. Notice to Bidders and Information for Bidders

2. Standard Specifications and Engineering Standards

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

4. Caltrans Standard Specifications and Standard Plans 2015

5. Accepted Bid and Bid Bond

6. List of Subcontractors

7. Public Contract Code Sections 10285.1 Statement

8. Public Contract Code Section 10162 Questionnaire

9. Public Contract Code Section 10232 Statement

10.Labor Code Section 1725.5 Statements
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC

11.Bidder Acknowledgements

12.Qualifications

13.Non-collusion Declaration

14.Agreement and Bonds

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

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

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

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

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

DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC

ATTEST:
_____________________________
Teresa Purrington
City Clerk

APPROVED AS TO FORM

CITY OF SAN LUIS OBISPO
A Municipal Corporation
_______________________________
Erica A. Stewart
Mayor
CONTRACTOR:

Layfield USA Corporation
________________________________
J. Christine Dietrick
City Attorney
________________________________
Robert Rempel
Vice President
________________________________
Steve Palubiski
Chief Financial Officer
DocuSign Envelope ID: 96E97ED1-DB2A-4537-A28B-18BF7DB4E6CC

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING USE OF UNRESERVED
WORKING CAPITAL FUND TO SUPPORT THE RESERVOIR NO. 2

COVER REPLACEMENT PROJECT, SPECIFICATION NUMBER
2000034-2
WHEREAS, in June of 2019, City Council approved the 2019-21 Financial Plan, which identified funds for Reservoir Maintenance, including the Reservoir No. 2 Cover Replacement Project (Project) and a balance of $714,146 was carried forward to the Project account for design and construction efforts; and WHEREAS, in June of 2021, City Council approved the 2021-23 Financial Plan which identified the Reservoir No. 2 Cover Replacement project with a budget of $960,000 for design and construction efforts; and
WHEREAS, in June of 2023, City Council approved the 2023-25 Financial Plan which identified the Reservoir No. 2 Cover Replacement project with the budget of $200,000 to support construction efforts; and
WHEREAS, in May of 2023, staff transferred $999,279.70 from the Water Fund Undesignated Capital account to support construction efforts for the Reservoir No. 2 Cover Replacement project (Project); and
WHEREAS, the Project total cost is estimated to be $3,328,417.26 and the available project balance is $2,752,007, therefore, an additional $576,410.26 is needed to fund the construction contract; and
WHEREAS, to fund the Project, a transfer of $60,379.26 from the Water Fund Undesignated Capital account will be made, which has a balance of $296,224.24 to supplement partial funding needed; and
WHEREAS, to provide funding to fully support the total construction contract for the Project, staff is recommending City Council approve the use of an additional $516,031 from the Unreserved Working Capital Fund; and
WHEREAS, a balance of $12,545,850 is available in the Unreserved Working Capital fund.

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

Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 1. The City Council appropriates $516,031 from the Unreserved Working Capital Fund to the Reservoir No. 2 Cover Replacement project account 2000034.

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

AYES:

NOES:

ABSENT:

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

Item 5k
Department: Administration
Cost Center: 1021
For Agenda of: 12/5/2023
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 upon appointment.

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

Item 5k
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.

Item 5l
Department: Administration
Cost Center: 1021
For Agenda of: 12/5/2023
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-elect Pease reviewed that information along with the past several years’ appointments and recommended the Council Liaison Subcommittee assignments listed in Attachment A.

Item 5l
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-elect 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
2024

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
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
Pease
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
Pease
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: December 4, 2023
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 6a – RESOLUTION ON PUBLIC NOTIFICATION FOR LONG-TERM

CONSTRUCTION PROJECTS IN THE DOWNTOWN
Staff would like to provide the following information and clarification to supplement the Council Agenda Report.
1) Revision to the second staff recommendation as follows (added text in highlight):

Revised recommendation: Provide direction to staff on whether the Council has an interest in pursuing the development of a “Public Inconvenience Fee”, which would assess a fee for private construction that requires extended closures of public sidewalls, roadways, and parking lanes. Staff is not recommending pursuing a “Public Inconvenience Fee” at this time.

The Council Agenda Report includes a discussion of the development of a Public Inconvenience Fee, however, this concept has not yet been discussed with the development or construction industry nor with downtown businesses or property owners. Additional research and outreach are needed before such a fee would be ready to be discussed further with the Council. As a result, staff is no longer recommending that this fee be considered by the Council as part of this item. 2) A revised draft resolution is attached with the following changes:
a. Section 2. Unless necessary for emergency access or maintenance, construction activities that affect a City streets travel lane, bike lane, parking lane, or sidewalk in the Downtown Area shall not occur between Thanksgiving and New Year’s Day and shall be restricted by the Public Works Department through the project specifications and through the Encroachment Permit issued pursuant to Municipal Code Section 12.04.060.
b. Section 7. Pursuant to the authority provided to the Director in Municipal Code Section 12.04.060, Council hereby directs the Director to impose the following conditions on Encroachment Permits issued within the Downtown Area where a travel lane, bike lane, parking lane, or sidewalk is closed for ten, cumulative business days or more:

Resolution On Public Notification For Long-Term Construction Projects In The Downtown Page 2 These proposed changes to the resolution are reflected in Attachment A with new additions highlighted and omissions in strikethrough.

ATTACHMENT
A - Revised Resolution on Public Notification for Long-Term Construction Projects in the Downtown

RESOLUTION NO. _____ (2023 SERIES)

A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, REQUIRING ADVANCED NOTIFICATION FOR

LONG-TERM CONSTRUCTION PROJECTS AND RIGHT OF WAY

ENCROACHMENT IN THE DOWNTOWN AREA AND A RESTRICTION

OF CONSTRUCTION ACTIVITIES WITHIN THE DOWNTOWN CORE

DURING THE HOLIDAYS THAT IMPACT THE PUBLIC RIGHT OF WAY WHEREAS, it is essential to maintain and upgrade City infrastructure in order to provide reliable municipal services and to maintain a healthy local economy; and WHEREAS, prolonged construction impacts associated with traffic detours and vehicular, sidewalk, and bike lane closures, as well as materials and equipment deliveries, can be disruptive to the flow of traffic in the downtown area and affect access for consumers to the downtown retail core; and
WHEREAS, most businesses and residents are willing to accept a level of inconvenience, provided that projects are coordinated and managed carefully, and that the need for anticipated impacts to public circulation and access is communicated; and WHEREAS, Downtown SLO has requested improved coordination in the coordination of capital projects in the downtown core, and in the level of communication between the City and Downtown SLO regarding project purpose and status; and WHEREAS, long-term construction projects can be disruptive to the success of Downtown merchants and businesses; and
WHEREAS, the City Council adopted Resolution 9487 (2003 Series), titled: A

RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING

POLICY REGARDING CITY CAPITAL IMPROVEMENT PROJECTS AND RIGHT OF WAY ENCROACHMENT IN THE DOWNTOWN AREA; and
WHEREAS, Resolution 9487 (2003 Series) only restricted construction activity during the Holiday period between Thanksgiving and New Year’s Day, but there is also a need to mitigate long-term disruptions in the downtown at all times of year via advanced notification to affected businesses; and
WHEREAS, the area bound by this policy should expand to include all areas of the downtown core as defined in the Land Use Element due to the businesses located there; and
WHEREAS, Resolution 9487 (2003 Series) only imposed noticing requirements on City-led construction projects but noticing should also be imposed for private-led construction projects; and

Resolution No._______(2023 Series) Page 2
R _____
WHEREAS, pursuant to City Municipal Code Section 12.04.060, upon receiving an application for an encroachment permit, the City Engineer shall either approve, conditionally approve, or reject it and the permit shall include all the conditions required by City Code and conditions set by the Public Works Director (Director).

NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo that the following policy is to be followed in the completion of capital improvement projects and the issuance of Encroachment Permits in the downtown area:

SECTION 1. Resolution 9487 (2003 Series) is hereby repealed and replaced by this Resolution.

SECTION 2. Unless necessary for emergency access or maintenance, construction activities that affects a City Streets travel lane, bike lane, parking lane, or sidewalk in the Downtown Area shall not occur between Thanksgiving and New Year’s Day and shall be restricted by the Public Works Department through the project specifications and through the Encroachment Permit issued pursuant to Municipal Code Section 12.04.060.

SECTION 3. For purposes of this policy the “Downtown Area” shall include the Downtown Core as defined in the Land Use Element of the General Plan (Exhibit A).

SECTION 4. For purposes of this policy, “long-term” shall be defined as ten cumulative business days or more.

SECTION 5. The Public Works Director shall have discretion in allowing long-term construction projects to commence or to continue between Thanksgiving and New Year’s Day if it is adequately demonstrated that the project is necessary for emergency access or maintenance, or that the delay to new construction or suspension of ongoing construction activities would be overly burdensome to the project proponent while also minimally disruptive and impactful to downtown businesses and the general public.

SECTION 6. The City shall be bound by the following requirements for Capital Improvement Projects in the Downtown Area:
a) Provide ample notification to businesses and residents within an area of at least 300 feet of the impacted area, either directly or through its contractors, regarding planned Capital Improvement Plan projects; and b) All reasonable steps will be taken by the City staff to ensure ample communication and coordination relative to planned City projects (nonemergency) in the downtown, including:
i. A minimum of 30-days notification to Downtown SLO prior to construction; ii. The preparation of project “fact sheets” for Downtown SLO to fully explain project purpose and other important information;

Resolution No._______(2023 Series) Page 3
R _____
iii. Participation in quarterly “project coordination meetings” with Downtown SLO;
iv. Attending or conducting community meetings and/or forums and making presentations for larger complex projects when requested by Downtown SLO, or as determined by staff;
v. Including in the project specifications requirements that the contractor is responsible for notification, signage, and procedures to minimize impacts on affected businesses to the extent feasible; and
c) Downtown SLO shall be responsible for communicating with its membership regarding project plans and status following receipt of project information from the City; and
d) The City staff will make every reasonable effort to ensure that:
i. All involved staff members share and communicate accurate information; and
ii. Projects managed by all departments in the City are properly coordinated.

SECTION 7. Pursuant to the authority provided to the Director in Municipal Code Section 12.04.060, Council hereby directs the Director to impose the following conditions on Encroachment Permits issued within the Downtown Area where a travel lane, bike lane, parking lane, or sidewalk is closed for ten, cumulative business days or more:
a) The Contractor will provide ample notification to businesses and residents within an area of at least 300 feet of the impacted area, regarding planned encroachment of the public right-of-way in the downtown area; and b) All reasonable steps will be taken by the contractor to ensure ample communication and coordination relative to planned encroachment permit projects (non-emergency) in the downtown, including:
i. A minimum of 30-days written notification to Downtown SLO prior to construction. Contractor shall be required to show proof of communication;
ii. Mailers, doorhangers, and email to all businesses or residents within 300 feet of the impacted right of way a minimum of 30 days prior to impact.

Contractor shall be required to show proof of communication. c) Downtown SLO shall be responsible for communicating with its membership regarding project plans and status following receipt of project information from the Contractor; and

Resolution No._______(2023 Series) Page 4
R _____
SECTION 8. The Council hereby directs staff to return to Council with recommended updates to the Municipal Code to codify the policy contained herein.

On motion of Council Member _______, seconded by Council Member _____________ and on the following roll call vote:

AYES:

NOES:

ABSENT:

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

Resolution No._______(2023 Series) Page 5
R _____
Exhibit A
Downtown Core as Defined in the Land Use Element of the General Plan

Item 6a
Department: Public Works
Cost Center: 5010
For Agenda of: 12/5/2023
Placement: Public Hearing
Estimated Time: 30 Minutes
FROM: Matt Horn, Public Works Director
Prepared By: Adam Fukushima, Active Transportation Manager SUBJECT: ADOPT A RESOLUTION ON PUBLIC NOTIFICATION FOR LONG-TERM

CONSTRUCTION PROJECTS IN THE DOWNTOWN AREA

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis Obispo, California, approving policy regarding City Capital Improvement Projects and Right of Way Encroachment in the Downtown Area”; and

2. Provide direction to staff on whether the Council has an interest in pursuing the development of a “Public Inconvenience Fee”, which would assess a fee for private construction that requires extended closures of public sidewalks, roadways, and parking lanes.

POLICY CONTEXT
The City of San Luis Obispo supports downtown businesses during the busy holiday season by limiting long-term, City-led construction projects in the downtown and provides prior notification to local businesses when construction activities are necessary. These City policies were adopted through Resolution 9487 (Attachment A).

Since long-term construction projects led by the City or private parties can be disruptive to downtown businesses at any time of year, staff recommends the adoption of an amended resolution (Attachment B), which would bring policy consistency to both Cityled and private-led construction projects regarding notification procedures as well as limiting all downtown construction projects during the busy holiday season regardless of leading party. The City is enabled to impose this policy via San Luis Obispo Municipal Code Section 12.04.060 concerning the City’s authority to approve or deny an encroachment permit application.

DISCUSSION

Item 6a
Background
In 2003, the Council adopted Resolution 9487 (2003 Series) Agreement (Attachment A) to support downtown businesses during the busy holiday season by limiting long-term, City-led projects in the downtown between Thanksgiving Day and New Year’s Day. When construction activities are necessary and unavoidable, the policy requires the City to provide ample notification to neighboring businesses and to Downtown SLO (then known as the Downtown Association) to minimize the disruption. This policy has been received favorably by downtown businesses. However, there has been increasing input from local businesses that the policy needs to apply any time of year as well as include private-led construction projects that may cause similar long-term inconveniences to the public.

Proposed Policy Changes
Staff recommends the adoption of a resolution (Attachment B) to:
1) Support downtown businesses during the busy holiday season by limiting longterm, City-led and private-led projects in the downtown between Thanksgiving Day and New Year’s Day.
2) Require ample notification of any construction projects (both City and private led) proposed in the downtown area that have the potential to create long-term inconveniences for the public at any time of the year. Notification will be the responsibility of the party leading the construction.

Therefore, with the adoption of the proposed resolution all City-led projects will require notification by the City and all private-led projects will require notification by the private property owner or contractor. Proposed policy changes for both City-led and private-led projects include the following elements:

Conditions Requiring Notification – All projects that would require the closure of a sidewalk, bike lane, parking lane, or vehicular lane of traffic in the downtown for 10 business days or more.

Required Notification – All projects would require 30 days written notice sent to all businesses within 300 feet of the impacted area as well as the Downtown SLO Association. Forms of written notice could include mailers, doorhangers, as well as email correspondence (when available).

Expanded Area of Downtown – Currently, Resolution 9487 (2003 Series) defines the downtown area to which the policy applies as the Downtown SLO boundary. Staff proposes to expand the “downtown” area bound by this policy to the Downtown Planning Area and Core that is defined in the Land Use Element of the General Plan (Attachment B) given that these additional areas can also be impacted by long-term construction projects.

Item 6a
Potential for Public Inconvenience Fee for Long-Term Construction Impacts At this time, staff proposes that notifications for private-led projects be the responsibility of the private property owner or contractor. However, the potential to bring that responsibility under the City to be offset by a fee is currently under exploration and could be tied to a potential public inconvenience fee.

With several large construction projects taking place in the downtown over the past several years, including construction of Hotel SLO, Hotel Cerro, and the Anderson Hotel, there have been several construction projects that required long-duration closures of traffic lanes, bicycle lanes, on-street parking, and sidewalks. This can be particularly challenging with private construction projects, where the City has limited control over work schedules and duration of impacts once an encroachment permit and traffic control plan has been approved.

In addition to exploring enhanced public noticing policies, which are the focus of this staff report, staff have also been investigating potential options to incentivize private construction projects to reduce the duration of work that requires closure of public streets and/or sidewalks. One potential strategy could be to explore the development of a “Public Inconvenience Fee”—a fee assessed for the extended temporary occupancy of public streets and sidewalks. Before investing further resources or staff time in developing the policy framework for such a fee, staff would first like to present this concept to the Council for discussion purposes to see if there is interest in pursuing it further.

Several other U.S. cities, including Washington, D.C., and San Antonio, Texas, have some form of financial mechanism to incentivize private encroachment projects to restore the use of streets and sidewalks to the general public in a timelier fashion, or to serve as a catalyst for projects that exceed the number of working days originally agreed upon per their approved encroachment permits. For reference, the general framework for Washington, D.C.’s Public Inconvenience Fee1is summarized as follows:
1) A fee is assessed for private construction projects that occupy public roadways and/or sidewalks for more than 30 days. The fee is assessed with a daily rate based on area of impact.
2) Within the Central Business District (CBD), the typical fees are as follows:
a. Closing one block of traffic lane (including bike lanes) costs $200 per day, with a maximum fee of $2,250 per 30-day period.
b. Closing one block of sidewalk costs $84 per day, with a maximum fee of $3,000 per 30-day period. No sidewalk fee is charged if a temporary pedestrian walkway is provided.
c. Occupying one metered parking stall incurs a fee equal to the minimum daily paid parking rate for the stall.
d. Occupying one non-metered parking stall incurs a fee of approximately $5 per day.
3) Outside of the CBD, fees are 25%-30% lower, except for use of parking lanes, where the fee is the same as within the CBD.

1 Source: https://ddot.dc.gov/publication/public-inconvenience-fee-faqs

Item 6a
If Council has interest in developing a similar fee in San Luis Obispo, it could be structured similar to Washington, D.C.’s fees, which are applied for all projects that exceed 30 days, or similar to San Antonio’s fees, which have similar rates, but are only applied for each day that a construction project exceeds its approved number of working days as per an encroachment permit. The primary advantage of introducing a Public Inconvenience Fee would be potential to reduce duration of construction impacts to public access and circulation. The primary disadvantages of pursuing a fee of this type would be (a) additional impact to City resources to develop and administer this fee, and (b) potential increases in construction costs for private encroachment projects.

There is no formal recommendation from staff on this topic. Staff is simply asking that the Council provide preliminary direction and input on whether there is interest in exploring this concept further, in which case staff would return to Council at a future date with more specific recommendations. The following are some preliminary questions to help guide this discussion further:

1. Is the Council interested in pursuing a Public Inconvenience Fee at this time or should this topic be shelved for the foreseeable future?

2. If the Council is interested in pursing a Public Inconvenience Fee, should this fee be assessed within the downtown only, or throughout the city?

3. If this fee is pursued, does the Council have input on an appropriate duration of construction activities that would trigger assessment of this fee (i.e., where auto/bike/parking lane or sidewalk closures exceed 30 days in duration, etc.)?

4. If Council is interested in pursuing a Public Inconvenience Fee, are there any other specific policy considerations you would like staff to evaluate in developing the framework for this fee?
Based on current staffing resources, if Council is interested in pursuing a Public Inconvenience Fee, staff would most likely return with specific recommendations and a draft ordinance for Council consideration in spring of 2024.

Public Engagement
Staff presented the proposed changes for notification of construction projects to Downtown SLO’s Parking and Access Committee in September 2023, where the committee expressed general support for the proposed changes. The proposed changes were also provided to members of the Developers Roundtable, an informal group of local developers that provide input to city staff. In addition, the City invited input to the proposed changes in a news release in October of 2023.

No public engagement has yet been provided on the potential for a public inconvenience fee for long-term construction impacts. If Council considers this as a potential benefit, public engagement for this activity would occur prior to returning to Council for consideration of adoption.

Item 6a

CONCURRENCE
Staff in Public Works, Community Development and Public Communications have provided input on the proposed resolution amendments.

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

FISCAL IMPACT
Budgeted: No Budget Year: Ongoing
Funding Identified: No
Fiscal Analysis:

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

Total $ $ $ $
Since notification is already provided for city-led projects, there is no fiscal impact. The proposed changes to private-led construction projects will not require additional budget expenditures other than staff time to verify the completion of notifications. However, it is hoped that the notifications for private-led projects will also reduce the burden on staff to respond to public inquiries.

ALTERNATIVES

1. Council could decide not to adopt the proposed Resolution or could adopt an amended Resolution.

2. Council could also decide not to pursue the potential for a Public Inconvenience Fee at this time.

ATTACHMENTS
A - Resolution No. 9487 (2003 Series)
B - Draft Resolution approving the policy regarding City Capital Improvement Projects and Right of Way Encroachment in the Downtown Area

RESOLUTION NO. _____ (2023 SERIES)

A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, REQUIRING ADVANCED NOTIFICATION FOR

LONG-TERM CONSTRUCTION PROJECTS AND RIGHT OF WAY

ENCROACHMENT IN THE DOWNTOWN AREA AND A RESTRICTION

OF CONSTRUCTION ACTIVITIES WITHIN THE DOWNTOWN CORE

DURING THE HOLIDAYS THAT IMPACT THE PUBLIC RIGHT OF WAY WHEREAS, it is essential to maintain and upgrade City infrastructure in order to provide reliable municipal services and to maintain a healthy local economy; and WHEREAS, prolonged construction impacts associated with traffic detours and vehicular, sidewalk, and bike lane closures, as well as materials and equipment deliveries, can be disruptive to the flow of traffic in the downtown area and affect access for consumers to the downtown retail core; and
WHEREAS, most businesses and residents are willing to accept a level of inconvenience, provided that projects are coordinated and managed carefully, and that the need for anticipated impacts to public circulation and access is communicated; and WHEREAS, Downtown SLO has requested improved coordination in the coordination of capital projects in the downtown core, and in the level of communication between the City and Downtown SLO regarding project purpose and status; and WHEREAS, long-term construction projects can be disruptive to the success of Downtown merchants and businesses; and
WHEREAS, the City Council adopted Resolution 9487 (2003 Series), titled: A

RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING

POLICY REGARDING CITY CAPITAL IMPROVEMENT PROJECTS AND RIGHT OF WAY ENCROACHMENT IN THE DOWNTOWN AREA; and
WHEREAS, Resolution 9487 (2003 Series) only restricted construction activity during the Holiday period between Thanksgiving and New Year’s Day, but there is also a need to mitigate long-term disruptions in the downtown at all times of year via advanced notification to affected businesses; and
WHEREAS, the area bound by this policy should expand to include all areas of the downtown core as defined in the Land Use Element due to the businesses located there; and
WHEREAS, Resolution 9487 (2003 Series) only imposed noticing requirements on City-led construction projects but noticing should also be imposed for private-led construction projects; and

Resolution No._______(2023 Series) Page 2
R_____
WHEREAS, pursuant to City Municipal Code Section 12.04.060, upon receiving an application for an encroachment permit, the City Engineer shall either approve, conditionally approve, or reject it and the permit shall include all the conditions required by City Code and conditions set by the Public Works Director (Director).

NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo that the following policy is to be followed in the completion of capital improvement projects and the issuance of Encroachment Permits in the downtown area:

SECTION 1. Resolution No. 9487 (2003 Series) is hereby repealed and replaced by this Resolution.

SECTION 2. Unless necessary for emergency access or maintenance, construction activities that affects City Streets in the Downtown Area shall not occur between Thanksgiving and New Year’s Day and shall be restricted by the Public Works Department through the project specifications and through the Encroachment Permit issued pursuant to Municipal Code Section 12.04.060.

SECTION 3. For purposes of this policy the “Downtown Area” shall include the Downtown Core as defined in the Land Use Element of the General Plan (Exhibit A).

SECTION 4. For purposes of this policy, “long-term” shall be defined as ten cumulative business days or more.

SECTION 5. The Public Works Director shall have discretion in allowing long-term construction projects to commence or to continue between Thanksgiving and New Year’s Day if it is adequately demonstrated that the project is necessary for emergency access or maintenance, or that the delay to new construction or suspension of ongoing construction activities would be overly burdensome to the project proponent while also minimally disruptive and impactful to downtown businesses and the general public.

SECTION 6. The City shall be bound by the following requirements for Capital Improvement Projects in the Downtown Area:
a) Provide ample notification to businesses and residents within an area of at least 300 feet of the impacted area, either directly or through its contractors, regarding planned Capital Improvement Plan projects; and b) All reasonable steps will be taken by the City staff to ensure ample communication and coordination relative to planned City projects (nonemergency) in the downtown, including:
i. A minimum of 30-days notification to Downtown SLO prior to construction; ii. The preparation of project “fact sheets” for Downtown SLO to fully explain project purpose and other important information;

Resolution No._______(2023 Series) Page 3
R_____
iii. Participation in quarterly “project coordination meetings” with Downtown SLO;
iv. Attending or conducting community meetings and/or forums and making presentations for larger complex projects when requested by Downtown SLO, or as determined by staff;
v. Including in the project specifications requirements that the contractor is responsible for notification, signage, and procedures to minimize impacts on affected businesses to the extent feasible; and
c) Downtown SLO shall be responsible for communicating with its membership regarding project plans and status following receipt of project information from the City; and
d) The City staff will make every reasonable effort to ensure that:
i. All involved staff members share and communicate accurate information; and
ii. Projects managed by all departments in the City are properly coordinated.

SECTION 7. Pursuant to the authority provided to the Director in Municipal Code Section 12.04.060, Council hereby directs the Director to impose the following conditions on Encroachment Permits issued within the Downtown Area where a travel lane, bike lane, or sidewalk is closed for ten, cumulative business days or more:
a) The Contractor will provide ample notification to businesses and residents within an area of at least 300 feet of the impacted area, regarding planned encroachment of the public right-of-way in the downtown area; and b) All reasonable steps will be taken by the contractor to ensure ample communication and coordination relative to planned encroachment permit projects (non-emergency) in the downtown, including:
i. A minimum of 30-days written notification to Downtown SLO prior to construction. Contractor shall be required to show proof of communication. ii. Mailers, doorhangers, and email to all businesses or residents within 300 feet of the impacted right of way a minimum of 30 days prior to impact.

Contractor shall be required to show proof of communication. c) Downtown SLO shall be responsible for communicating with its membership regarding project plans and status following receipt of project information from the Contractor; and

Resolution No._______(2023 Series) Page 4
R_____
SECTION 8. The Council hereby directs staff to return to Council with recommended updates to the Municipal Code to codify the policy contained herein.

On motion of Council Member _______, seconded by Council Member _____________ and on the following roll call vote:

AYES:

NOES:

ABSENT:

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

Resolution No._______(2023 Series) Page 5
R_____
Exhibit A
Downtown Core as Defined in the Land Use Element of the General Plan

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: December 5, 2023
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Chris Read, Sustainability Manager
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 7a - STUDY SESSION ON EXISTING BUILDING ENERGY

EFFICIENCY RETROFIT POLICY OPTIONS
Staff received a series of question about the Item 7a Council Agenda Report. The questions, which staff combined from multiple commenters and edited for clarity, are provided below; staff’s response are shown in italics:
1) Why doesn’t the City include policy options for reducing emissions from gas fueled fireplaces, outdoor heaters, or decorative fire features? In 2022, Council adopted an energy policy for new buildings that functionally prohibited outdoor natural gas fireplaces and outdoor space heaters in new projects via Municipal Code Chapter 8.11(All-Electric New Buildings). Enforcement of this ordinance is currently on pause while an appeal to the Ninth Circuit Court of Appeals is being considered in the case of California Restaurant Association v.

City of Berkeley.1 Given the City’s interpretation of the current ruling, the City is limited in what it can regulate in new and existing buildings.

When the City adopted an interim energy policy for new buildings in 2023, it did so via amendments to the California Energy Code. This approach was identified as the best available path forward, but effectively precluded any regulation on indoor cooking appliances, clothes drying appliances, and other equipment not regulated by the California Energy Code (including gas fueled outdoor and decorative fixtures). These same restrictions apply to existing building energy retrofit policies and therefore are not presented as policy options for Council’s consideration in the Council Agenda Report.

Electric equipment for outdoor space heating and decorative fireplaces exist and are becoming common in commercial uses ranging from delis to high-end hotels.

Staff encourages local businesses to transition to these electric uses and will look for ways to support that transition.

1 The ruling and its implications for City policy are discussed in this Council Agenda Report from September 19, 2023: https://pub-slocity.escribemeetings.com/filestream.ashx?DocumentId=10293

Existing Building Energy Efficiency Retrofit Policy Options Page 2 2) How does the City account for lifecycle emissions in redevelopment; how does the City account for embodied emissions in materials like concrete? As discussed at the Climate Action Plan update adoption in December of 2022, the City’s uses standard national and international emissions inventory protocols.

Given the ambitious goals it is working to achieve, the City’s climate work focuses narrowly and deeply on the protocol’s required emissions sectors, which includes emissions from on-road vehicles, landfilled organic waste, and energy (electricity and natural gas) used in buildings and facilities. While not the focus of the City’s climate work, other emission sectors are still important, and there are numerous regional and statewide initiatives focused on embodied emissions, lifecycle emissions, and emissions from other sectors.
2 3) Why does the proposed additions and alterations policy name 250 square feet as the threshold for applicability? Does that trigger point apply equally to newly constructed space as it does to a conversion of an existing space? The purpose of the study session is to familiarize the community and Council with the available policy option, listen to the community and Council about the relative value and risks of each approach, and should Council direct staff to continue working on one or more policies, come away from the session understanding the most important questions to answer in the next phase of policy development. As a result of the outreach conducted and the feedback received after the Council Agenda Report was posted, staff already benefited from a wide range of considerations related to the policy options presented in the report.

Staff has identified the Additions and Alterations policy as a potential near term option and as such, provided key considerations at a level of detail greater than the other policies presented in the report. Staff has identified initial considerations as critical for policy success and has narrowed the options in each based on research to date. The numbers provided in the Council Agenda report were provided as examples for illustrative purposes. As noted in the report, this includes the type of building the policy would apply to (applicability), what would trigger the policy (size), and what exemptions would be in place to ensure that the requirements are reasonable relative to the proposed addition or alteration.

The Council Agenda Report presents each of these categories and asks questions based on research to date. For clarity, staff is rephrasing these questions as recommendations here:

2 For example, the standards were recently added to California Building Code for lower carbon requirements in concrete used for large buildings. For more information, see this explainer posted by the American Institute for Architects : https://aiacalifornia.org/news/calgreen-mandatory-measures-for-embodied-carbonreduction/).

Existing Building Energy Efficiency Retrofit Policy Options Page 3 a. Applicability – The policy should be applicable to single-family and multifamily residential major additions and alterations. The definition for additions is relatively straightforward. As noted in public agenda correspondence, the definition for an alteration is more complicated. An initial definition provided in the report notes that a major alteration is an alteration that has structural, plumbing, and/or electrical components. The City has reviewed example ordinances from other cities, which include definitions of minor alterations don’t trigger the policy (minor cosmetic alterations that cover a large surface area, like replacing the floor or roof, for example, would not be included). Should Council direct staff to continue developing an Additions and Alterations policy, the definition would be further refined.
b. Size - The policy requirement should be triggered by a project’s square footage size and/or a percentage of the projects size relative to the existing building area. The specific numbers would be identified and refined during the policy development phase.
c. Exemptions - Reasonable exemptions should be included to ensure that the required improvements are a reasonable part of the overall project costs, have a clear nexus to the project, and are feasible given unexpected site conditions. Exemptions would be further identified and refined during the policy development phase.

These recommendations provide a starting place for policy development. Based on the considerable feedback provided to date and at the Study Session, the specific standards would be refined to develop policy that is clear, reasonable, and proportionate to the addition or alteration project. Additionally, as mentioned in the Council Agenda Report, should further exploration indicate that a policy is infeasible (e.g., further diligence indicates that there are not cost-effective energy retrofit measures for multi-family additions), staff would return to Council with that finding.
4) What does the staff mean by “cost effective”?
A “cost effective” energy efficiency measure is one whose energy savings are equal to or greater than the cost of the measure. Should Council direct staff to move forward with developing an Additions and Alterations policy, this would be operationalized as the net cost of utility bills over a 20 year period relative to the labor and material costs to install the measure or measures.

Cost effectiveness findings are typically made using conservative assumptions about costs and do not typically include rebates, incentives, or tax credits. These additional resources, along with new incentive resources for moderate income households set to be available in 2024, are expected to substantially enhance the cost effectiveness of most energy efficiency measures, especially heat pump hot water heaters.

Existing Building Energy Efficiency Retrofit Policy Options Page 4 Additionally, staff has identified certain exemptions for Additions and Alteration policies that would limit the cost of complying with the policy to a certain percentage of total project cost, ensuring that, not only would the measure pay for itself over time, but that the initial up front cost is also only a small portion of the total project cost.

Should Council direct staff to move forward with developing an Additions and Alterations policy, these costs and savings would be further analyzed and would be presented to Council for consideration as part of the adoption process. 5) Can staff describe the Time of Sale policy option in more detail and explain what staff’s recommendation would entail?
As described in the Council Agenda Report, the sale of a building is a time when improvements are typically made. Staff are not proposing a particular policy, nor is adoption of a policy an action Council can take at the December 5, 2023 meeting.

Rather, staff is presenting several options that can be pursued alone or together that range from a simple energy disclosure requirement on one end of the spectrum to mandatory retrofit requirements on the other end. Due to the range of options available, staff recommends taking a year to partner with key stakeholders and further explore the economic, regulatory, and technical feasibility of these options.
6) Will the policy approaches presented in this report enable the City to reduce emissions from existing buildings in half by 2030?
The City’s ambitious goal to reduce emissions from existing buildings in half by the end of the decade will be challenging to achieve. The City and regional partners will continue to look for ways to rapidly increase uptake of energy efficient, low emissions projects. If the City can increase voluntary retrofits and can find ways to cost effectively increase policy performance over time, the framework as proposed lays the foundation and puts the City on a trajectory towards achieving its 2030 goals while also supporting the City’s other Major City Goals.

Staff identified incorrect terminology in the Council Agenda Report. The phrase “point of sale” is used unintentionally several times in the report. Where this phrase is used, staff intended to write “time of sale.” The correct “time of sale” phrase wording will be used in staff’s presentation to Council.

Item 7a
Department: Administration
Cost Center: 1005
For Agenda of: 12/5/2023
Placement: Study Session
Estimated Time: 75 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Chris Read, Sustainability Manager
SUBJECT: STUDY SESSION ON EXISTING BUILDING ENERGY EFFICIENCY

RETROFIT POLICY OPTIONS

RECOMMENDATION
Receive a presentation and conduct a study session on energy efficiency retrofit policy options for existing buildings and provide strategic direction to staff for pursuing those options.

REPORT-IN-BRIEF
The City’s Climate Action Plan includes a goal of reducing emissions from existing buildings by 50% by 2030. Historic levels of resources are available to support community members as they choose to upgrade their buildings with zero emission appliances and equipment. However, these resources are likely insufficient to achieve the City’s goal.

Anticipating this fact, the 2023-25 Major City Goal work plan provides staff direction to:
“Conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E.” Staff conducted extensive research on the topic and identified 4 key findings:

1. Available incentives and rebates are likely not sufficient to achieve adopted City goals.

2. The City’s building stock and its occupants are diverse and require diverse energy retrofit solutions.

3. The large majority of natural gas consumed in existing buildings comes from water heating and space heating.

4. There are a limited number of times when building owners make substantial improvements to their buildings, and a City policy is likely necessary for each of those events in order for the City to achieve its goals.

Related to key finding #4, the report includes three potential policies for Council’s consideration including: 1) requirements for energy efficiency improvements concurrent with major additions and alterations; 2) requirements for energy disclosure or improvements at time of sale; and 3) the development of a building performance standard for large buildings.

Item 7a
Staff recommends returning to Council in early Spring 2024 with an additions and alterations ordinance and will also spend the next year further assessing the feasibility of a time-of-sale policy and a building performance standard. Assuming a concurrent and rapid increase in voluntary emissions reductions, the proposed suite of policies puts the City on a trajectory to achieving the Climate Action Plan’s goals related to energy use in existing buildings.

POLICY CONTEXT
A suite of adopted City Council policies support the staff recommendation to evaluate energy efficiency retrofit policy options for existing buildings, from the General Plan level, to approving resolutions for the City’s Climate Action Plan for Community Recovery and associated work programs, to the current Financial Plan Major City Goals. A select summary of this policy framework is below:
 Land Use Element of the General Plan:
o Policy 9.4 (Climate Action Plan) - The City shall maintain and implement its Climate Action Plan to reduce community and municipal GHG emissions consistent with State laws and objectives.
o Policy 9.7 (Sustainable Design) - The City shall promote and, where appropriate, require sustainable building practices that consume less energy, water and other resources, facilitate natural ventilation, use daylight effectively, and are healthy, safe, comfortable, and durable.  Climate Adaptation and Safety Element of the General Plan:
o Policy HE-4.3 (Green and Healthy Buildings) - The City shall support fuel switching retrofits (from fossil fuel to high-efficiency electric appliances), energy efficiency retrofits, and distributed energy resources as low-carbon solutions to create safe, cool, and healthy buildings and consider programs and projects that support these retrofits as critical to maintaining community safety and to supporting disaster preparedness.
 Resolution 11159 (2020 Series) adopted the Climate Action Plan for Community Recovery with the goal of community carbon neutrality by 2035 and a sub-goal of 50 percent reduction in emissions from existing buildings by 2030.  Resolution No. 11381 (2022 Series) reaffirmed these goals and created a work program for fiscal years 2023-27, including Green Buildings Action 2.1.E, which directs staff to, “Develop an equitable framework for requiring electrification retrofits and develop cost effective building electrification policies for additions and alterations.”
 2023-25 Financial Plan Climate Action Major City Goal action 4.1.i directs staff to conduct a study session, and pending Council direction, develop an equitable framework for cost-effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task

2.1.E

Item 7a

DISCUSSION
Background
On August 19, 2020, Council approved the City’s Climate Action Plan for Community Recovery (“CAP”), and adopted Resolution 11159 (2020 Series), which includes the goal of carbon neutrality by 2035 and building sector goals of zero emissions from new buildings and a 50 percent reduction in emissions from existing buildings by 2030.

On December 6, 2022, the Climate Action Plan was updated, and the building sector goals mentioned above were reaffirmed. In addition to a suite of solutions to support voluntary retrofits, the updated Climate Action Plan includes work task “Green Buildings

4.1.A”, which directs staff to “Develop an equitable framework for requiring electrification retrofits and develop cost-effective building electrification policies for additions and alterations.” This action is included in the 2023-25 Financial Plan as Climate Action Major City Goal Task 4.1.i.

Emissions reductions from existing buildings come from reducing energy use by adding solar, replacing old appliances with high-efficiency heat pump hot-water heaters and HVAC systems, and making building envelope improvements like installing new windows and adding insulation. As the City’s electricity approaches 100% renewable by 2030 through Central Coast Community Energy (3CE), this primarily means reducing natural gas consumption. Due to current regulatory limitations, the City is excluding stoves or laundry dryers from this policy discussion.

As the City has initiated research on this topic, it has been guided by three ongoing commitments. First, the City is committed to cost-effective strategies that stabilize energy bills and save people money. Second, the City is committed to equity by making sure lowincome community members are not negatively impacted by energy retrofit policies while being directly supported to improve their homes at the time that works for them via access to rebates, incentives, and technical assistance. Finally, the City is committed to developing a building energy retrofit policy that is aligned with other Major City Goals including housing and economic development.

In support of developing an equitable and effective policy framework for building energy retrofits, staff have been conducting research to answer the following questions:

1. Are existing incentives and rebates sufficient to achieve the City’s goals?

2. What do we know about buildings in the City?

3. How is energy used in buildings in the City?

4. When are major building upgrades typically made and what have other Cities done to leverage these upgrade points for energy efficiency improvements? This Council Agenda Report walks through these four questions and provides a key finding for each.

Item 7a
Question #1: Are existing incentives and rebates sufficient to achieve the City’s goals?
As of 2023, historic levels of rebates and incentives for retrofits are being provided at the local, regional, state, and federal levels. Nearly every building owner in the City has access to financial incentives to improve their buildings, reduce greenhouse gas emissions, and reduce their energy use. Many of these financial resources are focused on helping low-income homeowners install electric appliances when the time is right for them. The 2022 CAP update includes a suite of actions to support market development and increase zero-emission appliance adoption rates, including:
 Expansion of high visibility pilot projects (CAP Action Green Buildings 2.1.A) – the City is currently supporting the Housing Authority of San Luis Obispo (HASLO) in electrifying water heating and space heating appliances in one of its affordable housing developments and is supporting a broader look at helping affordable housing developers strategically decarbonize their buildings.  Creation of an equity focused “Green and Healthy Buildings” service to educate the community and connect low-income building owners with resources, incentives, financing, and contractors (CAP Action Green Buildings 2.1.B) – In October of 2023, the US Department of Energy awarded the City $400,000 to develop a program that initially supports mobile home and manufactured home retrofits with the intent of expanding to serve other low-income building types in the future. The award enables the City to pursue significant additional funding for a future implementation phase of the program.
 Establishing a “Green and Healthy Buildings” permit streamlining program. (CAP Action Green Buildings 2.1.C) – In 2023, the Tri-County Regional Energy Network (3C-REN) issued a survey asking if local governments would be interested in permit streamlining support. The City has provided a response and staff will continue collaborating with 3C-REN staff on permit streamlining program development.

Staff are also advocating for a zero interest “on bill” forgivable loan program from Central Coast Community Energy (CAP Action Green Buildings 2.1.D) and collaborating with City and regional partners to support the workforce development required to implement the Climate Action Plan (CAP Action Leadership 2.2.A). In addition to local action, a wide range of regional, state, and federal programs are also available, including federal tax incentives, statewide income-qualified direct-install program, statewide incentives and rebates, and regional incentives through 3C-REN and 3CE.1 Using data provided by the California Air Resources Board, California Energy Commission, and Lawrence Berkeley National Laboratory, among others, staff modeled the rate of natural gas to electric conversions for water heating and space heating. The retrofit rate estimate includes many variables, including assumptions about future City programs, community access to incentives and rebates, workforce availability, and

1 For information about the full suite of programs available, visit https://incentives.switchison.org/ .

Item 7a
continued supply chain improvement. Staff conducted various model runs, with emissions reductions outcomes ranging from 15 percent (low uptake model run) to 27 percent (high uptake model run) by 2030. Staff believes the high-uptake model to be the more likely scenario, but even in this circumstance, the City would need to reduce overall existing building emissions by an additional 23 percent to achieve the adopted goal.

Key Finding #1: Available incentives and rebates are likely not sufficient to achieve adopted City goals.

Question #2: What do we know about buildings in the City? The City contains approximately 24,000 parcels. Most of these parcels have buildings on them and those buildings vary widely in age, size, use, and existing energy systems.

Due to the reporting requirements in state housing law, the City knows substantially more about the residential building stock than the nonresidential building stock. As described in Table 1 (recreated from the 2020 Housing Element of the General Plan), the city contains approximately 21,403 residential units in buildings including single-family detached, single family attached, small multi-family (2-4 units), large multi-family (5+ units), and mobile homes. Within each housing type, there is a wide variety of sizes, property values, and material conditions. There is also a wide variability of occupants and building owners. Although there are a small number of older all-electric buildings (and new all-electric buildings constructed since 2020), the large majority of residential buildings in the City are mixed fuel (meaning they use electricity and natural gas).

Table 1. Housing Units by Type, 2020
Unit Type Number of Units Percent of Total
Single-Family Detached 9,882 46%
Single-Family Attached 1,403 7%
Multi-Family (2-4 Units) 2,723 13%
Multi-Family (5+ Units( 5,912 27%
Mobile Homes, Other 1,482 7%
Total 21,403 100%
The picture is more complicated for non-residential and mixed-use buildings. Similar data does not exist for this building stock; however, based on an analysis of Assessor’s Parcel Data conducted by Lawrence Berkeley National Laboratory staff in conjunction with City staff, there are approximately 1,500 parcels that contain at least one nonresidential building. Of these, it is estimated that there are more than 150 nonresidential and large multi-family buildings over 25,000 square feet. Like smaller residential buildings, these buildings have types, sizes, values, ages, and occupancies that vary widely. Importantly, the mechanical equipment for water heating and space conditioning, as well as the other energy using systems and appliances vary widely across building types. For example, the energy use in the City’s largest strip-mall retailer (with large cooling and heating loads) will be very different than the energy use in a large restaurant (large water heating loads).

Item 7a
Given this diversity, it is clear that any energy retrofit policy or program must be tuned to the building type it is serving. A “one-size fits all” approach to building energy retrofits would not be effective, and instead there is likely a need for multiple programs and policies to serve different buildings stocks and community members.

Key Finding #2: The City’s building stock and its occupants are diverse and require diverse energy retrofit solutions.

Question #3: How is energy used in buildings in the City? As discussed above, most of the buildings in San Luis Obispo use some combination of natural gas or electricity to power buildings systems (e.g., space heating and cooling, water heating, etc.) and consumer appliances (e.g., ovens and stoves, clothing dryers, etc.).

For residential buildings, a 2019 study by the California Energy Commission found that over 90% of natural gas use in residential buildings was used to heat water and heat air. 2 A study conducted by XeroHome3recently modeled energy use in single family homes in San Luis Obispo using publicly available information and came to a similar conclusion:
while energy use might vary from house to house, the large majority of residential natural gas use is for heating water and air.

The picture is more complicated in nonresidential buildings. For most of these buildings, water heating and space heating continue to make up the large majority of natural gas use. Whether space or water heating uses more energy or generates more emissions is dependent on the use and size of the building. As described above, special end uses also play a larger role in nonresidential buildings. For example, high temperature water for commercial dish washing and process loads can be energy and gas use intensive. While the nonresidential building sector is more varied in its energy use, the sector has two potential upsides: 1) a smaller number of buildings consume a substantially larger amount of energy on a per-building basis, and 2) larger nonresidential buildings tend to have standard maintenance cycles where energy efficiency improvements can be made.

There are many paths to achieving the goal of reducing emissions 50 percent by 2030.

For building owners choosing to reduce their own emissions, this could mean everything from a new water heater to a new stove. In developing an energy retrofit requirement, the City will focus on water and space heating along with energy efficiency improvements and distributed energy resources such as solar and battery storage systems.

Key Finding #3: The large majority of natural gas consumed in existing buildings comes from water heating and space heating.

2 https://www.energy.ca.gov/publications/2021/2019-california-residential-appliance-saturation-study-rass 3 The XeroHome platform also provides insights to local single-family residential occupants and is available at: https://xerohome.com/app/#/

Item 7a
Question #4: When are major building upgrades typically made and what have other cities done what have other Cities done to leverage these upgrade points for energy efficiency improvements??
In order to achieve Council’s existing building reduction goals while honoring the City’s commitment to cost effectiveness, equity and other Major City Goals including housing and economic development, staff sought to identify times when major building improvements were already being made. Typical major improvements in a building’s life, including electrical and plumbing system improvements and appliance replacements, occur when a major addition or alteration is completed, when a building is sold, or when a large building is undergoing routine maintenance. The remainder of this section discusses each of these opportunities for improvement and shares additional details about policies adopted by other cities.

Improvement Opportunity 1: Time of Permit for Additions and Alterations – An instance when building owners make building energy upgrades is when they are constructing a major addition or alteration. Major additions will typically include electrical and plumbing components and are often high value improvements. The City is aware of an approach to require certain cost-effective energy retrofit improvements, the costs of which are low relative to the larger addition/alteration project.

An example of a local government that added an energy retrofit requirement to additions and alterations is the County of Marin, which adopted a program where existing single family residences undergoing additions or alterations are required to implement additional energy efficiency measures beyond the State code. Additional energy savings are achieved through what they call the “Flexible Compliance Path”, a points-based system allowing homeowners and contractors to select from a comprehensive menu of energy efficiency and electrification measures that are appropriate for the scope of their project.

A similar program could be adopted by the City through local amendments to the California Energy Code and could apply to single and multi-family residential projects.

An additions and alterations policy would be cost effective and would require relatively low staff time to administer. However, there are only a relatively small number of additions or alterations that happen each year in the City of San Luis Obispo. Staff estimate that the policy would account for a 1-2% reduction in overall gas use through the end of the decade (achieving 2-4% of the 50% reduction goal). While small, every percentage point is important, and the policy would ensure that these projects aren’t locking themselves into high carbon use through 2030 and beyond. Additionally, the policy could be scaled up if successful to apply to more types and sizes of projects or scaled back if deemed ineffective.

Improvement Opportunity 2: Time of Sale – Real estate transactions are typically accompanied by property investments, either by the seller seeking to increase the value of the property, or the buyer updating the property to their preference. Time of Sale examples include providing a “Home Energy Score” at the time a property is listed for

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sale, requiring that buildings be “electric ready” at time of sale, and requiring that certain energy efficiency improvements be made at time of sale.4 The City has a history of “time of sale” requirements including the current sewer lateral inspecting requirement, and long-standing water efficiency requirements. Policies that coincide with time of sale can be complicated and would require extensive coordination with real estate professionals to ensure success. Implementation would also have a higher overhead, with additional staffing resources likely needed.

Staff estimates that approximately 200 single-family residential real estate transactions occur in the City every year (excluding the sale of new homes), which would compound to 1,400 homes by 2030 (approximately 10% of single-family homes). Staff estimate that over time, these homes could account for a reduction in 2 to 5% of overall emissions reductions by 2030, or 4% to 10% of progress towards the City’s goal.

Improvement Opportunity 3: Time Certain – Large buildings are typically managed like capital assets, with maintenance and appliance/system replacement occurring at regular and planned intervals.5 A policy option called a “Building Performance Standard” requires that large building owners track their energy use and mechanical equipment and when they are ready to replace equipment, do so using a low emissions alternative.

An example of a local government that has a Time Certain requirement is the City of Chula Vista, which requires that large buildings disclose energy performance on an annual basis. After five to ten years of disclosure, depending on building size, certain buildings will be required to achieve a certain building performance score.6 Building performance standards are typically used by bigger cities that have very large buildings. This is primarily because the staff overhead to administer a program is high relative to the staff size of smaller cities and because the standard energy benchmarking tools have typically supported large buildings. The Department of Energy and the national energy laboratories have been working to develop approaches that work for smaller cities with smaller buildings and smaller staff numbers. The City is currently working with these entities to better understand the potential of a Building Performance Standard in San Luis Obispo.

In the Fall of 2023, staff from the Lawrence Berkeley National Laboratory provided a rough estimate of the impact a Building Performance Standard could have in San Luis Obispo.

Based on this initial analysis, subject to revision, a Building Performance Standard in these buildings could result in a reduction of 10 to 15 percent of total existing building emissions, or 20 to 30 percent of the City’s 2030 goal.

4 In the Bay Area, BayREN provides a Home Energy Score service that building owners listing their property can use to disclose energy use and connect prospective buyers with resources for building improvements.

BayREN has received funding to provide this service on a statewide basis starting in 2025. More information is available at: https://www.bayren.org/home-learning-center/home-energy-score-hes . 5 For the purpose of this report, “large building” refers to a building over 25,000 square feet and includes nonresidential and/or multi-family residential uses.
6 https://www.chulavistaca.gov/departments/clean/benchmarking

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Key Finding #4: There are a limited number of events that building owners make major improvements to their buildings and a City policy is likely necessary for each of those events in order for the City to achieve its goals.

Proposed Equitable Framework for Cost Effective Zero Emissions Building Retrofit Policies
As described above, 2023-25 Financial Plan Climate Action Major City Goal Action 4.1.i directs staff to conduct a study session, and pending Council direction, develop an equitable framework for cost-effective building electrification retrofit policies, with an initial focus on additions and alterations. Staff evaluated each of the policy options discussed above against a standard set of evaluative criteria (Table 2). Based on the completed research and analysis, staff recommends the following policy framework:

1. Return to Council in early 2024 with an ordinance for cost-effective residential major additions and alterations retrofit requirements.7 Should Council direct staff to pursue this option, substantial additional technical work and outreach would occur to ensure the policy is reasonable and effective. During this phase, should new information arise that would render an additions and alterations policy infeasible, staff would notify Council of this information and propose an alternative.

Staff’s technical and outreach work would focus on major outstanding policy considerations, including:
a. Applicability - Should the policy be applicable to single-family and multifamily residential major additions and alterations? b. Size - Should the policy requirement be triggered by a project’s square footage size (e.g., projects that add or alter more than 250 square feet) and/or a percentage of existing building area (e.g., projects that add or alter more than 25 percent of existing building area)?
c. Exemptions - What reasonable exemptions should be included to ensure the required improvements are a small part of the overall project costs?

2. Work closely with realtors and other stakeholders to research the feasibility of a point-of-sale requirement for single-family homes and a building performance standard for large buildings and, if viable, return to Council in late 2024 with a program, recommendation for next steps, and/or an explanation of why the program/s is/are currently infeasible.

A core assumption in the Climate Action Plan is that implementation will need to scale exponentially over the next decade. The policy framework presented in this report is aligned with this assumption and has important characteristics for success. First, the framework starts small, with multiple opportunities to scale up or step back as lessons are learned from implementation. Second, the framework covers each building sector, including single family, multi-family, and non-residential buildings. Third, the framework takes action on what is feasible now while providing time to further explore the feasibility of point of sale and building performance standard policy options over the next year.

7 “Major alterations” describe projects that have structural, plumbing, and/or electrical components.

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The City’s ambitious goal to reduce emissions from existing buildings in half by the end of the decade will be challenging to achieve. The City and regional partners will continue to look for ways to rapidly increase uptake of zero emissions appliances. If the City can increase voluntary retrofits and can find ways to cost effectively increase policy performance over time, the framework as proposed lays the foundation and puts the City on a trajectory towards achieving its 2030 goals while also supporting the City’s other Major City Goals.

Table 2. Policy Option Evaluation
Event Time of Permit Point of Sale Time Certain
Policy Option Additions and
Alterations
Home Energy
Score / Electric
Ready
Benchmarking /
Building Performance
Requirements
Uses Existing
Process? Yes No No
Local Government
Case Studies? Yes Yes Yes
Administrative
Overhead Low Medium / High Medium / High
Near-Term Impact Low / Medium Medium Low
Potential to Scale Medium High High
Cost Effective Yes Yes Yes
Summary
A near-term
solution to begin
reducing building
emissions while
increasing
building retrofit
capacity
A mid-term
solution with early
options to support
retrofits, but more
research is
required
A mid-term solution
with the potential for
cost effective savings
in the nonresidential
sector, but more
research is required
Recommendation
Return with
ordinance in
early 2024
Return with
recommendation in
late 2024
Return with
recommendation in
late 2024
Indicates favorable conditions.

Indicates moderately favorable or uncertain conditions.

Indicates unfavorable conditions.

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Previous Council or Advisory Body Action
 August 2020 – Council adopted Resolution 11159 (2020 Series) which approved the Climate Action Plan for Community Recovery with the goal of community carbon neutrality by 2035 and a sub-goal of 50 percent reduction in emissions from existing buildings by 2030.
 December 2022 – Council adopted Resolution No. 11381 (2022 Series) reaffirming these goals and created a work program for fiscal years 2023-27, including Green Buildings Action 2.1.E, which directs staff to, “Develop an equitable framework for requiring electrification retrofits and develop cost effective building electrification policies for additions and alterations.”
 June 2023 – Council adopted the 2023-25 Financial Plan Climate Action Major City Goal 4.1.i, which directs staff to conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E.

Public Engagement
Staff have conducted the following public engagement efforts to answer the questions proposed at the beginning of this Council Agenda Report:
 Green and Healthy Homes Roundtable – Staff hosted eight meetings with the roundtable (six in 2022 and two in 2023), which consists of public health staff, community members, affordable housing providers, an affordable housing tenant, building design professionals, environmental and racial justice organizations, regional agency staff, and an HVAC contractor, among others. The group met to identify the challenges of building retrofits, develop solutions to those challenges, and provide initial feedback on how a wide range of policy options might work in San Luis Obispo.
 Chamber of Commerce – Staff presented to the Legislative Action Committee on October 12 to provide background and describe the potential policy options described in this Council Agenda Report.
 Climate Coalition – Staff presented to the Leadership Team on November 2 to provide background and describe the potential policy options include in this Council Agenda Report.
 San Luis Obispo Climate Justice Alliance – Staff presented to the Climate Justice Alliance to provide background and describe the potential policy options included in this Council Agenda Report.
 Communitywide survey – Staff conducted a community wide survey to assess general retrofit program priorities and sensitivities. Among the 182 survey respondents, the top three priorities for a potential existing building policy were: 1) cost effectiveness, 2) that the policy be supported with financial incentives and technical assistance, and 3) providing clear expectations for builders and owners.

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 San Luis Coastal Association of Realtors Local Government Relations Committee – staff met with members of the San Luis Coastal Association of Realtors to discuss practical considerations associated with a possible time of sale policy.

Should Council direct staff to continue researching a time of sale policy, staff would work closely with this group as a key stakeholder.
 Program administrator and technical expert interviews – Staff met for remote meetings with staff from a number of cities, programs administrators, and national research entities including the City of Chula Vista, City of Berkeley, County of Marin, City of San Francisco, 3C-REN, 3CE, BayREN, Department of Energy, California Statewide Codes and Standards Team, and the Lawrence Berkeley National Laboratory.

This engagement conducted to date has allowed for staff to narrow down the options for Council’s consideration at this study session. Should Council provide strategic direction to move forward with one or more policy approach, staff would conduct substantial collaborative outreach to ensure the proposal it brings back to Council is well vetted.

SCHEDULE AND NEXT STEPS
Should Council provide strategic direction to continue development of one or more retrofit policies, staff would conduct additional extensive outreach and technical review. Staff recommends bringing back an additions and alterations policy for Council’s further review and consideration of adoption in March of 2024 for implementation to begin at a reasonable date identified through the policy development process. Concurrently, staff would spend the majority of 2024 continuing to vet the feasibility of a time of sale and building performance policy.

CONCURRENCE
Community Development Department concurs with the contents of this report.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Projects carried out as part of an adopted energy efficiency retrofit policy will require subsequent environmental review or finding of exemption.

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

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Fiscal Analysis:

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

Total $ $ $ $
The additions and alterations policy described in the Council Agenda Report can be completed using no-cost technical support from Central Coast Community Energy and 3C-REN. Staff time to develop the policies, including associated community outreach, is accounted for in the 2023-25 Climate Action Major City Goal work program. Staff are currently evaluating funding sources to support the long-term development and implementation of time of sale and building performance standard policies.

Implementation costs for each of these would be developed and presented for Council’s consideration at time of policy adoption.

QUESTIONS FOR COUNCIL

1. Does Council want staff to continue developing an “additions and alterations policy”?

1.a. If so, in the report, staff includes outstanding policy considerations. Does Council have any early feedback regarding these considerations?

1.b. Are there key stakeholders staff should engage with?

2. Does Council want staff to continue researching potential “Time of Sale” and “Energy Performance Standards” policies?

2.a. If so, what are factors do you want staff to design for and are there key stakeholders you would want staff to engage with?

2.b. If so, is there a policy preference that staff should focus on during the public engagement and research phase of this policy work?

3. Are there other policies or programs that Council would like to staff to further explore?

ALTERNATIVES
Council could direct staff not to pursue existing building retrofit policies and instead pursue emissions reductions through alternative approaches. Given the City’s ambitious climate goals and the limited ability to pursue reductions in alternative ways, staff does not recommend this approach.