San Luis Obispo City Council
January 9, 2024

Utility Distribution Easement (02/2020)
The provisions hereof shall inure to the benefit of and bind the successors and assigns of the respective parties hereto, and all covenants shall apply to and run with the land.

Dated: __________________, _______.

The City of San Luis Obispo,
a municipal corporation and charter city
_____________________________________________
By:

Print Name:______________________________

Title:____________________________________
I hereby certify that a resolution was adopted on the ____ day of _________, 20____, by the _____________________________________ authorizing the foregoing grant of easement.

By__________________________________ Title________________________________

Utility Distribution Easement (02/2020)
State of California
County of )
On __________________________, before me, Notary Public, Insert name
personally appeared
,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.
(Seal)
Signature of Notary Public

CAPACITY CLAIMED BY SIGNER
[ ] Individual(s) signing for oneself/themselves
[ ] Corporate Officer(s) of the above named corporation(s) [ ] Trustee(s) of the above named Trust(s)
[ ] Partner(s) of the above named Partnership(s)
[ ] Attorney(s)-in-Fact of the above named Principal(s) [ ] Other
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Utility Distribution Easement (02/2020)
Pacific Gas and Electric Company
EXHIBIT “A”

GRANT OF EASEMENT DISCLOSURE STATEMENT
This Disclosure Statement will assist you in evaluating the request for granting an easement to Pacific Gas and Electric Company (PG&E) to accommodate a utility service extension to PG&E’s applicant. Please read this disclosure carefully before signing the Grant of Easement.
 You are under no obligation or threat of condemnation by PG&E to grant this easement.  The granting of this easement is an accommodation to PG&E’s applicant requesting the extension of PG&E utility facilities to the applicant’s property or project. Because this easement is an accommodation for a service extension to a single customer or group of customers, PG&E is not authorized to purchase any such easement.
 By granting this easement to PG&E, the easement area may be used to serve additional customers in the area and may be used to install additional utility facilities. Installation of any proposed facilities outside of this easement area will require an additional easement.  Removal and/or pruning of trees or other vegetation on your property may be necessary for the installation of PG&E facilities. You have the option of having PG&E’s contractors perform this work on your property, if available, or granting permission to PG&E’s applicant or the applicant’s contractor to perform this work.

Additionally, in order to comply with California fire laws and safety orders, PG&E or its contractors will periodically perform vegetation maintenance activities on your property as provided for in this grant of easement in order to maintain proper clearances from energized electric lines or other facilities.  The description of the easement location where PG&E utility facilities are to be installed across your property must be satisfactory to you.
 The California Public Utilities Commission has authorized PG&E’s applicant to perform the installation of certain utility facilities for utility service. In addition to granting this easement to PG&E, your consent may be requested by the applicant, or applicant’s contractor, to work on your property. Upon completion of the applicant’s installation, the utility facilities will be inspected by PG&E. When the facility installation is determined to be acceptable the facilities will be conveyed to PG&E by its applicant.

By signing the Grant of Easement, you are acknowledging that you have read this disclosure and understand that you are voluntarily granting the easement to PG&E. Please return the signed and notarized Grant of Easement with this Disclosure Statement attached to PG&E. The duplicate copy of the Grant of Easement and this Disclosure Statement is for your records.

11/20/23
Los Padres
35 30S 12E MDM
San Luis Obispo
City, Rancho, Subdivision, Etc.

SECTION TOWNSHIP RANGE
REFERENCES:

MERIDIAN

SCALE DATE
APPLICANT:

PG&E DIVISION AUTHORIZ DRAWING NO.

COUNTY:

F.B.: DR.BY: CH.BY:

Property Line
Legend
Easement Delineation
35473423.dgn
M22F
along all boundaries or lines
all courses extend to or
Unless otherwise shown
Grantor's Property Line
N/A L3B0
San Luis Obispo
Section 35, SW¼ of NE¼
35473423 S-3012223
Plat No. AZ138-A11
1"= 30'
Valta Energy
SLO AL 07-0050
LLA 44-07
PARCEL 2
76-PM-12
SLO 10-0092
Parcel 1
37-PM-59
SLO 84-192
PARCEL 1
OSOSST
APN: 003-659-010
cL 10' Utility Easement
Approximate Location
Doc# 2010044817
The City of San Luis Obispo
Transformer
Electrical Box

Utility Distribution Easement (02/2020)
Attach to LD: 2230-12-10076
Area, Region or Location: 4
Land Service Office: San Luis Obispo
Line of Business: Electric Distribution (43)
Business Doc Type: Easements
MTRSQ: 22.30.12.35.13,
FERC License Number:

PG&E Drawing Number: S-3012223
Plat No.: AZ138-A11
LD of Affected Documents:

LD of Cross Referenced Documents:

Type of interest: Electric Underground Easements (4), Utility Easement (86) SBE Parcel:
% Being Quitclaimed:

Order or PM: 35473423
JCN:

County: San Luis Obispo
Utility Notice Number:
851 Approval Application No: ;Decision:

Prepared By: m22f
Checked By: l3b0
Approved By:

Revised by:

Item 5e
Department: Attorney
Cost Center: 1501
For Agenda of: 1/9/2024
Placement: Consent
Estimated Time: N/A
FROM: Christine Dietrick, City Attorney
Prepared By: Kelly White, Senior Legal Analyst
SUBJECT: REQUEST FOR QUALIFICATIONS FOR 2024-2029 ON-CALL LEGAL

SERVICES

RECOMMENDATION

1. Approve the Request for Qualifications for On-call Legal Services; and

2. Authorize the City Attorney to create a 2024-2029 On-Call List from the qualifications received and deemed to be responsive; and

3. Authorize the City Attorney to execute legal services agreements, on an as-needed basis, with the law firms and/or attorneys included in the 2024-2029 On-call List during the five-year period April 1, 2024 – March 31, 2029.

POLICY CONTEXT
Often, the City Attorney determines, on short notice, that outside legal counsel is needed to defend the City or advise on an urgent matter. In these instances, there is no time to do a formal request for proposals and, furthermore, whether a formal request for proposals would be necessary is not always readily apparent at the outset of a new matter. Generally, under the City’s Financial Management Manual, the City should issue a formal request for proposals for Professional Services if the expenditure is expected to exceed $39,999. With legal services, what begins as a small issue, advising on a discrete matter and contemplated to be completed well within a budget of $39,999 or less, may become a larger issue, requiring a much larger budget, if litigation arises out of that matter.

San Luis Obispo Municipal Code Section 3.24.070(C) provides that contracts involving the acquisition of professional or specialized services such as attorney services are not required to be competitively bid but rather such services can be selected from an approved list of on-call consultants that is established by a formal request for qualifications (RFQ) process. The Council shall approve the RFQ, and as noted above, the purchasing authority is authorized to execute agreements with selected consultants.

To have the benefit of taking time to investigate the qualifications of attorneys and law firms in various areas of legal practice and also be able to contract quickly when a matter arises, the City Attorney’s Office has maintained, for the last ten years, an on-call list of

Item 5e
outside legal counsel. This list is updated every five years by the issuance of a RFQ, and the current list is set to expire March 31, 2024.

DISCUSSION
Background
Over the five-year life of the current on-call list, the City Attorney’s Office has used the firms and attorneys (“Consultants”) from it more than 20 times; procuring quality legal services for the City in an efficient and expedited manner. During the RFQ process used to create the current on-call list, over 25 responses were received and reviewed. The Consultants that submitted their qualifications had expertise in over 18 practice areas.

Typically, the City retains outside counsel in three different situations: 1) in matters that require specialized expertise; 2) in matters that present conflict of interest issues; and 3) in matters that exceed the workload capacity of the City Attorney’s Office, including significant litigation matters not covered by the City’s joint powers insurance authority.

On-call List for 2024-2029
At this time, the City Attorney requests that a new RFQ (Attachment A) be issued in order to continue, for the next five years, the practice of maintaining an on-call list that can be used to quickly identify and engage needed legal services. As is current practice, the oversight of the Consultants engaged will be handled by the City Attorney’s Office. The Consultants will operate under the conditions of the agreement template included in the RFQ. Individual matters will be scoped by the City Attorney, the Consultant selected for the contract, and staff in the City department most involved with the engagement. Specific cases or matters will be assigned either through a subsequent City Manager award, if the anticipated cost exceeds the City Attorney’s department head authority but is less than $150,000, or by Council, if the anticipated cost exceeds $150,000.

Previous Council or Advisory Body Action
The City Council has twice before issued RFQs for on-call legal services. First in 2013 then again in 2018.

July 2, 2013, C7 RFQ for Legal Services
October 2, 2018, Item 7 RFQ for Legal Services
Public Engagement
This item is on the agenda for the January 9, 2024, City Council meeting, during which the public may comment, and has been posted in accordance with applicable Brown Act requirements. If approved by City Council, the RFQ (Attachment A) will be posted in BidSync.

CONCURRENCE
The Finance Department concurs with the issuance of the RFQ and assisted with its development.

Item 5e

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

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

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

Total $ $0 $ $0
The RFQ, in and of itself, does not obligate any funds or commit the City to utilize any of the Consultants added to the on-call list. Fiscal impact for scope of representation, including identifying the funds that will pay for the legal services, will be discussed at the time the City Attorney’s Office engages a Consultant for a particulate matter, depending upon the anticipated cost of services and consistent with the City’s purchasing policies and rules.

ALTERNATIVES
Do not approve the RFQ release. The City Council could decline issuing the RFQ, which would mean, that once the current on-call list expires, the City Attorney’s Office would need to return to request Council authorization to issue a Request for Proposal (RFP) for each specific case or matter if time allows or solicit qualified counsel and request Council authorization for retention on a case-by-case basis, for matters exceeding $39,999. For matters with an anticipated cost of $10,000 to $39,999, the City Attorney’s Office would seek three informal bids, as outlined in the Financial Management Manual. A benefit of issuing the RFQ is that the City may become aware of a broader spectrum of Consultants providing certain services, thereby increasing the City’s choices, and maximizing the potential to obtain the highest quality and most cost-effective representation.

ATTACHMENTS
A - Draft RFQ Package – 2024-2029 On-call List for Legal Services

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

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

Notice Requesting Qualifications for Legal Services
On-Call Outside Counsel 2024-2029
The City of San Luis Obispo (“City”) is requesting proposals for outside counsel legal services in a variety of practice areas pursuant to the specifications of this Request for Qualifications (RFQ).

All firms interested in receiving further correspondence regarding this RFQ will be required to complete a free registration using BidSync (https://www.bidsync.com/bidsynccas/).

Proposals responsive to this RFQ will be reviewed by staff in the City Attorney’s Office as they are received and must be completely uploaded on BidSync at or before February 15, 2024, 5:00 p.m. Pacific Standard Time. Proposals received after said time will not be considered.

Proposals shall be submitted using the forms provided in this RFQ package. Proposals submitted in any manner not specified above will not be accepted.

RFQ packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. Please contact Kelly White, Sr. Legal Analyst, at [email protected] for any questions about the content of the RFQ.

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

TABLE OF CONTENTS
SECTION A: INTRODUCTION................................................................................................. 3 SECTION B: SCOPE OF REQUEST ...................................................................................... 3 SECTION C: CARRYOVER FROM CURRENT ON-CALL LIST......................................... 4 SECTION D: GENERAL TERMS AND CONDITIONS.......................................................... 6 SECTION E: SPECIAL TERMS AND CONDITIONS............................................................ 8 SECTION F: PROPOSAL REQUIREMENTS...................................................................... 10 SECTION G: INSURANCE REQUIREMENTS..................................................................... 12 SECTION H: PROPOSAL SUBMITTAL FORMS ................................................................ 14 SECTION I: FORM OF AGREEMENT................................................................................. 19

-3-
SECTION A: INTRODUCTION
The City Attorney’s Office (“CAO”) is responsible for providing all legal services for the City of San Luis Obispo (“City”), its City Council and its advisory bodies. In addition, the City Attorney serves as the City Prosecutor. The full-time, regular staff in the CAO are the City Attorney, Assistant City Attorney, and Deputy City Attorney, Senior Legal Analyst, Paralegal, and Legal Assistant. There is also an additional part-time, supplemental attorney and fulltime support staff member assigned to the CAO. The City retains outside counsel in three different situations: 1) in matters that require specialized expertise, 2) in matters that present a conflict of interest for CAO staff, and 3) when a matter exceeds the workload capacity of the CAO.

SECTION B: SCOPE OF REQUEST
The City is requesting proposals for outside counsel legal services in a variety of different areas of law, in order to establish a list of qualified firms and individuals for contract work the City may need during the five-year period, April 1, 2024, – March 31, 2029.

The City requests information regarding the qualifications of attorneys or law firms interested in providing legal services to the City, as needed, via an established list of on-call outside counsel (“On-call List”). The City is interested in retaining a diverse group of firms and individuals who will be placed on the On-call List to provide high-quality legal services and who are dedicated to the mindful management of billed legal costs.

Selection of outside counsel for all matters is based on the qualifications and practice area experience, quality of work, articulate approach to controlling costs and adhering to budgets, and effectiveness in communicating with the City. In addition to being placed on the On-call List, selected attorneys or firms will enter into Legal Services Agreements (“LSAs”) for each specific matter, when a matter arises within a qualified practice area. LSAs for specific engagements will include (1) a written scope of work, (2) a capped “not to exceed” amount, including the circumstances under which initial payment terms may be modified; and (3) the names of the individual attorneys in the law firm assigned to work on the matter along with their hourly rate(s), which shall be consistent with the proposal submitted for this RFQ.

Placement on the On-call List does not guarantee that the firm or attorney will be engaged to provide services. Outside legal services will be used on an as-needed, case by case, or matter by matter basis. Specific assignments may include investigating, advising, or negotiating on behalf of the City; reviewing and/or drafting documents (transactional and litigation); and representation in court, administrative hearings and alternative dispute resolution proceedings. All work will be under the direction and supervision of the City Attorney, except those matters in which outside counsel is retained to provide conflict representation, in which case counsel may report directly to the City Council or other

-4-
specified staff. Outside counsel engagements for which proposals are sought may involve one or more of the following areas:

1. Administrative Law

2. Appellate Proceedings and writs

3. Affordable Housing & Development Law

4. Code Enforcement

5. Conflict Counsel

6. Constitutional Law

7. Criminal procedure

8. Elections Law

9. Eminent Domain and Inverse Condemnation

10. Employment Issues and Litigation – Labor and Employment, Pension and Benefits Programs

11. Engineering, Design Professional and Public Works Contracting Issues and Litigation

12. Environmental Issues and Litigation, Federal and State Regulatory Issues, Endangered Species, Clear Air and Clean Water Acts

13. Financial Services, Infrastructure, Financing, Fees (Community Facility Districts, Assessment Districts, etc.) and taxation

14. General civil litigation

15. General Municipal Services

16. Land Use issues and litigation, including California Environmental Quality Act and wireless communications land use and regulatory issues

17. Real Property

18. Water Rights
SECTION C: CARRYOVER FROM CURRENT ON-CALL LIST
Any firm or attorney that was accepted onto the City’s current On-Call List for Outside Counsel (in place for April 2019 – March 2024 and listed below) that would like to request carryover into the 2024-2029 On-Call List in some or all of the practice areas for which they are currently qualified, may utilize the Condensed Re-Proposal Form (found in Section H) in place of completing a full proposal.

To the extent that a previously qualified firm or attorney has undergone a reorganization or other transition that has resulted in the establishment of a new or separate firm or legal entity, the newly created entity should submit a full proposal. Only those entities that are still acting under the legal name by which they were accepted onto the current on-call list qualify to use the Condensed Re-Proposal Form.

Practice Areas
Consultants
Current On-call List for
2019-2024
Aaronson, Dickerson Cohn and LansoneAleshire and Wynder, LLPAtkinson, Andelson, Loya, Ruud and RomoBest Best and Krieger LLPBrownstein Hyatt Farber SchreckBurke Williamson and Sorensen LLPCarmel and Naccasha LLPColantuono Highsmith and Whatley PCErickson Law FirmGoldfarb and Lipman LLPHall Hieatt and Connely LLPHanson Bridgett LLPJarvis, Fay and Gibson, LLPJones and MayerLozano Smith LLPLynberg and WatkinsManning and Kass Ellrod, Ramirez, Trester, LLPMeyers Nave Riback Silver and WilsonNossaman LLPPrice Postel and Parma LLPRenne Public Law GroupRichards Watson GershonShute Mihaly Weinberger LLPSilver Wright LLPSloan Sakai Administrative Law XXXXXXXXXXXXX
Appellate Proceedings and WritsXXXXXXXXXXXXXXXXXXX
Affordable Housing & Development
Law

XXXXXXXXXXX
Code EnforcementXXXXXXXX
Conflict CounselXXXXXXXXXXXX
Constitutional LawXXXXXXXXXXXXXXXXX
Criminal ProcedureXXXXXXXXX
Elections LawXXXXXXXXXXXX
Eminent Domain and Inverse
Condemnation

XXXXXXXXXXXXXX
Employment Issues and Litigation…XXXXXXXXXXXXXXXXXX
Engineering, Design
Professional…Contracting

XXXXXXXXXXXXXXXX
Environmental Issues & Litigation…XXXXXXXXXXXXXX
Financial Services, Infrastructure,
Financing,…

XXXXXXXXX
General Civil LitigationXXXXXXXXXXXXXXXXXXXX
General Municipal ServicesXXXXXXXXXXXXXXXX
Land Use issues and litigation,…XXXXXXXXXXXXXXXX
Real PropertyXXXXXXXXXXXXXX
Water RightsXXXXXXXXXXXXX

-6-
SECTION D: GENERAL TERMS AND CONDITIONS

1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (“Candidate”) shall meet all the terms, and conditions of the Request for Qualifications (RFQ) package. By virtue of its submission of a proposal, the Candidate acknowledges agreement with and acceptance of all provisions of the RFQ specifications.

2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required materials. Proposal documents shall be submitted electronically via BidSync.

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

The purpose of this submittal is to generally assess the adequacy of the Candidate’s insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City’s current insurance requirements are detailed in Section G and each contract executed for work assigned under the On-call List will include the insurance requirements in effect at the time of execution.

5. Proposal Withdrawal and Opening. A Candidate may withdraw its proposal, without prejudice, or submit a revised proposal via BidSync prior to the time and date specified for complete upload to BidSync in the Notice for this RFQ. No proposal received after the time specified or at any place other than that stated in the “Notice Requesting Qualifications for Legal Services” of this RFQ will be considered.

6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested as the primary submitter in more than one proposal.

7. Communications. All timely requests for information submitted in writing via BidSync on or before the date indicated in the RFQ will receive a written response from the City.

8. Proposal Retention and Award. The City reserves the right to retain all proposals in accordance with its retention schedule (currently, two years from decision for all unsuccessful proposals and five years past audit for successful ones). The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See

-7-
the “special terms and conditions” in Section E of these specifications for proposal evaluation and contract award criteria.

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

10. Form of Agreement. Additional contract terms and conditions that Candidate will be expected to execute and be bound by when assigned a matter from their position on the On-Call List are listed in the Form of Agreement (Section I).

-8-
SECTION E: SPECIAL TERMS AND CONDITIONS

1. Acceptance of Position on the On-call List. Any Candidate awarded a position on the On-call List will be asked to execute, within ten (10) calendar days of notice of award, a written letter of acceptance, in a form drafted by the City and routed for electronic signature. The letter will include the accepted practice areas and be electronically routed to the Candidate’s Authorized Representative at the e-mail address given in its proposal. Execution of the acceptance letter will make you a part of the On-call List (“Consultant”).

2. Term. The On-call List created from this RFQ will be active for the five-year period, April 1, 2024, – March 31, 2029.

3. Proposal Evaluation and Selection. Proposals will be evaluated by the City Attorney’s Office as they are received and based on the following criteria:
a. Proposal Review/ Candidate Selection to the List: The City will develop the Oncall List based upon the responses to this RFQ. Responses will be evaluated by the City Attorney’s Office. Price will not be the controlling factor in selecting firms for the list, but price will be a factor in making work assignments. A Candidate is not entitled to be placed on the On-call List or entitled to be assigned work solely on the basis of submission of a low-price quotation. The City Attorney will evaluate the responses based on the proposal content, and any further information that may be requested for clarification.
b. Consultant Selection and Compensation: Acceptance onto the On-Call List does not guarantee that any case or matter, or number of cases or matters, will be assigned to Consultant. The decision to retain outside counsel will be that of the City on a case-by-case basis or matter-by-matter basis. Proposed fee structures should take into account the five-year life of the On-call List, and Candidates are encouraged to include in their proposal any fee escalator information that will be relevant to cost evaluation over the life of the On-call List.

4. Submittal of Proposal Forms. Each Candidate shall submit completed version of the three required forms in Section H:
a. Acknowledgement
b. References
c. Statement of Contract Disqualifications

5. Non-Exclusive Contract. During the life of the On-call List the City reserves the right to enter into agreements for legal services with persons or firms who do not respond to the RFQ. The City further reserves the right to waive responses to any part of this request if, in its sole judgment, it determines that it is in the best interests of the City to do so. The City may require any Candidate to participate in negotiations and to submit such other information or documentation as it may deem necessary as conditions of awarding a contract. The City reserves the right

-9-
to vary or waive requirements for different Candidates as shall fit the City’s needs for a particular type of engagement or area of representation.

6. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and On-call List creation:
a. City Council meeting for approval of RFQ 1/9/24
b. Issue RFQ 1/10/24
c. Receive proposals 1/10 – 2/15/24
d. Complete evaluation of proposals 3/1/24
e. Issue notice letters to Candidates 3/8/24
f. Deadline for execution of On-call List acceptance 3/18/24 g. Start of new On-call List 4/1/24

7. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation or any concealment of fact. In the event that any dispute arises as a result of any actual or alleged ambiguity, Consultant shall immediately notify the City in writing, and the Consultant shall continue to perform, irrespective of whether or not the ambiguity is major, material, minor or trivial. Failure to provide the hereinbefore described written notice within one (1) working day of Consultant's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the ambiguity concerning the dispute.

-10-
SECTION F: PROPOSAL REQUIREMENTS
Requested Changes to Terms and Conditions
The City desires to begin using the On-call List soon after its start date, April 1, 2024, and expects the Consultant to execute City contracts for assigned matters using all of the terms set forth in this RFQ including the Form of Agreement, Section I. To expedite the contracting process, each Candidate shall include in their proposal any requested redlined changes to terms and conditions, if necessary.

Consultant’s requested changes will be considered by City staff when determining their competency and responsibility, as well as whether to include them in the On-call List.

Proposal Length
Proposal length should be the least number of pages possible while still being a complete response to the RFQ.

Contents of a Complete Submission

1. Full Proposal. Candidates that are new or newly structured must provide all of the following information, in addition to any requested changes to the terms and conditions set forth in this RFQ:

Submittal Forms (found in Section H)
a. Acknowledgement of RFQ specifications
b. References
c. Statement of Contract Disqualifications
Qualifications
d. Identify from the list of practice areas in Section B, which areas you wish to be considered for in this RFQ process. e. Your experience performing assignments in the proposed practice areas.
f. If applicable, the staff to be assigned to matters in the proposed practice areas.
g. Resumes of the individuals who would be performing
services.
h. Your experience having a co-counsel relationship with inhouse counsel. i. Any other information that would assist us in making this award decision.

Fee Structure
j. Provide information on the hourly rates for all staff that would be necessary to render service in the proposed practice areas.
k. Provide a list of expenses being proposed to be billed in addition to legal fees, including the basis for such expenses.

-11-
l. If rates are to be adjusted during the course of
representation, the method for such adjustment should be described.

2. Condensed Re-proposal. Candidates requesting to be carried-over from the current on-call list to the new On-Call List must provide all of the following, in addition to any requested changes to the terms and conditions set forth in this RFQ:

Submittal Forms (found in Section H)
a. Acknowledgement of RFQ specifications
b. References
c. Statement of Contract Disqualifications
d. Condensed Re-proposal Form

-12-
SECTION G: INSURANCE REQUIREMENTS
The Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, employees or subcontractors.

Minimum Scope of Insurance. Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

Minimum Limits of Insurance. Consultant shall maintain limits no less than:

1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit of $2,000,000.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.

Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Consultant; products and completed operations of the Consultant; premises owned, occupied or used by the Consultant; or automobiles owned, leased, hired or borrowed by the Consultant. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers.

-13-

2. For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

3. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

Verification of Coverage. Consultant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences.

-14-
SECTION H: PROPOSAL SUBMITTAL FORMS

1. ACKNOWLEDGEMENT [Required]
The undersigned declares that she or he:
 Has carefully examined the entirety of the City’s Notice Requesting Qualifications for Legal Services On-Call Outside Counsel 2024-2029, which is hereby made a part of this proposal.
 Is thoroughly familiar with its contents.
 Is authorized to represent the proposing firm.
 Agrees to perform the work as set forth in this proposal.  Certificate of insurance attached; insurance company’s A.M. Best rating: _______.

Firm Name and Mailing Address
Name of Authorized Representative:

Phone:

Email address:

Signature of Authorized Representative
Date

-15-

2. REFERENCES [Required]
Number of years engaged, under the present business name, in the provision of legal services within the practice area(s) included in the proposal. Attach additional pages if required.

Practice Area Years of Experience
Describe fully three recent contracts performed by your firm that demonstrate your ability to provide legal services within the practice area(s) included in the proposal. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications.

Reference No. 1:

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

-16-
Reference No. 2:

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

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

-17-

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

This Statement of Past Contract Disqualifications is executed on at __________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative

-18-

4. Condensed Re-proposal Form [Optional]
a. Name of firm or attorney (as it appears in the City’s Current On-Call List for Outside Counsel – Section C):
b. Practice areas of current qualification (City’s Current On-Call List) and those being proposed for carryover:

Mark Practice Areas
Currently Qualified Under
Mark Practice Areas
Proposed for Carryover
Administrative Law Administrative Law
Appellate Proceedings and Writs Appellate Proceedings and Writs Affordable Housing & Development Law Affordable Housing & Development Law Code Enforcement Code Enforcement
Conflict Counsel Conflict Counsel
Constitutional Law Constitutional Law
Criminal Procedure Criminal Procedure
Elections Law Elections Law
Eminent Domain and Inverse Condemnation Eminent Domain and Inverse Condemnation Employment Issues and Litigation (Labor &
Employment, Pension and Benefits Programs)
Employment Issues and Litigation (Labor &
Employment, Pension and Benefits Programs)
Engineering, Design Professional and Public
Works Contracting Issues and Litigation
Engineering, Design Professional and Public
Works Contracting Issues and Litigation
Environmental Issues & Litigation (Federal and
State Regulatory Issues, Endangered Species,
Clear Air and Clean Water Acts)
Environmental Issues & Litigation (Federal and
State Regulatory Issues, Endangered Species,
Clear Air and Clean Water Acts)
Financial Services, Infrastructure, Financing,
Fees (Community Facility Districts,
Assessment Districts, etc.) and Taxation
Financial Services, Infrastructure, Financing,
Fees (Community Facility Districts,
Assessment Districts, etc.) and Taxation
General Civil Litigation General Civil Litigation
General Municipal Services General Municipal Services
Land Use issues and litigation, including CEQA
and wireless communications land use and
regulation
Land Use issues and litigation, including CEQA
and wireless communications land use and
regulation
Real Property Real Property
Water Rights Water Rights
c. Names of the individual attorneys to be assigned to City matters in the practice areas selected above:
[describe here or attach additional pages]
d. List of current rates (by attorney name or position title):
[describe here or attach additional pages]

-19-
SECTION I: FORM OF AGREEMENT

CITY OF SAN LUIS OBISPO

LEGAL SERVICES AGREEMENT
This agreement (“Agreement”) is made and entered into in the City of San Luis Obispo on [Month, Day, Year] ______________ ______, _______ by and between the City of San Luis Obispo, a municipal corporation (“City”), and [Consultant’s Full Legal Name], a [Consultant’s entity type] (“Consultant”) (collectively referred to as the “Parties”).

W I T N E S S E T H
WHEREAS, on January 10, 2024, City issued a request for qualifications for OnCall Outside Counsel 2024-2029 (“RFQ”); and WHEREAS, Consultant submitted a proposal in response to RFQ that was accepted by City; and
WHEREAS, after review of Consultant’s proposal, City accepted Consultant onto its 2024-2029 On-Call List in at least one practice area, which includes [List the practice area Consultant qualified under which applies to this matter]; and WHEREAS, the City requires professional legal services in the practice area referenced above and described further in the scope of work included in Exhibit A to this Agreement (the “Services”).

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. Term. The term of this Agreement shall be from [Month, Day, Year Agreement is to commence] until [EITHER: “acceptance of completion of said services” OR Month, Day, Year to end] and the total fees and costs incurred for Services shall at no time exceed [EITHER: Dollar amount of City funds approved by the appropriate Purchasing Authority OR “the balance of funds deposited with the City under” followed by a description of funding source, e.g. a developer deposit]. Consultant will treat the [“notto-exceed amount” OR “balance of deposited funds”] as a barrier to continued work and will notify City if, at any time, the Services are estimated to deplete said [“amount” OR “balance”] within the next sixty (60) days. Consultant shall not be obligated to continue to provide Services if the [“amount” OR “balance”] is inadequate to reimburse Consultant for its time.

-20-

2. Incorporation by Reference. City’s Notice Requesting Qualifications for Legal Services On-Call Outside Counsel 2024-2029 and Consultant’s proposal dated [Month, Day, Year], are hereby incorporated in and made a part of this Agreement.

Should there be any conflict or inconsistency between the language of the incorporated documents and those in the rest of the Agreement, the language of the incorporated documents shall cede priority.

3. City’s Obligations. For providing the Services as specified in this Agreement, City will pay, and Consultant shall receive therefor, compensation as stated in Consultant’s proposal and confirmed in Exhibit A to this Agreement. City will also monitor the balance [EITHER: “remaining from the not-to-exceed amount” OR “of deposited funds”] and alert Consultant should that balance drop below an amount estimated as sufficient to pay invoices for the next sixty (60) days, presuming Consultant has not already contacted City regarding same.

4. Consultant’s Obligations. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by the incorporated documents and this Agreement, including the specific scope of work in Exhibit A. Consultant understands that included in these obligations is the maintenance of insurance compliant with the City’s current requirements, attached as Exhibit [B or applicable letter], and providing proof of such insurance to the City within ten (10) business days of execution of this Agreement.

5. Licenses and Permits. At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. This includes, but is in no way limited to, obtaining a valid City of San Luis Obispo business license & tax certificate prior to the execution of the Agreement and maintaining said license for the duration of the Agreement. The Consultant shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement.

6. Compliance With Law. The Consultant shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis Obispo ordinances, regulations and adopted codes, which in any manner affect those employed by Consultant or in any way affect the performance of the Services pursuant to this Agreement. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. Failure to comply with local ordinances may result in monetary fines and cancellation of this Agreement.

-21-

7. Compliance With Industry Standard. Consultant shall provide Services acceptable to City in strict conformance with the Agreement. Consultant shall also provide in accordance with the standards customarily called for under this Agreement using the degree of care and skill ordinarily exercised by reputable providers of such services.

Where approval by the City, the City Manager, the Mayor, or other representative of City is required, it is understood to be general approval only and does not relieve Consultant of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices.

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

9. Preservation of City Property. The Consultant shall provide and install suitable safeguards, approved by the City, to protect City property, including the City’s electronic files and data network, from injury or damage. If City property is injured or damaged resulting from Consultant’s operations, it shall be replaced or restored at Consultant’s expense. The City’s property shall be replaced or restored to a condition as good as when the Consultant began the work.

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

11.Non-Discrimination. In the performance of the Services, the Consultant agrees that it will not engage in, nor permit such subconsultants as it may employ to engage in,

-22-
discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons.

12.Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice, with no disputed charges, and acceptance by the City of the materials, supplies, equipment, or services provided by the Consultant (Net 30). If the City disputes any of Consultant's costs or fees within an invoice it shall give written notice to Consultant within thirty (30) days of receipt of said invoice and any final payment under this Agreement shall be made within fifteen (15) days of resolution of the dispute.

13.Consultant Invoices. By no later than the tenth (10th) day of each calendar month, the Consultant shall deliver to the City either a detailed invoice for work done within the previous calendar month or an electronic notice that the previous month’s work was minimal (less than $250 of costs and fees) and will be included in the invoice for the following month. No more than two months of billing can be accumulated and sent together. Each invoice shall be electronically mailed to [email protected] and must include a breakdown of hours billed and miscellaneous charges and any subconsultant invoices, similarly broken down as supporting detail. Final June invoices shall be received no later than the 5th business day of July to meet City fiscal year-end deadlines.

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

15.Release of Information.
a. All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subconsultants, shall not, without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena.

-23-
b. Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless Consultant is prohibited by law from informing the City of such Discovery.

City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is averse to Consultant in such proceeding, Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

16.Conflicts of Interest. The Consultant shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this engagement. The Consultant covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Consultant further covenants that, in the performance of this work, no sub-consultant or person having such an interest shall be employed. The Consultant certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City.

17.Ownership of Documents.
a. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of the Services under this Agreement. Consultant shall maintain adequate records of Services provided in sufficient detail to permit an evaluation of Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of five (5) years after receipt of final payment.
b. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys,

-24-
notes, and other documents prepared in the course of providing the Services under this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. Consultant hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by Consultant in the course of providing the Services under this Agreement.

18.Deliverable Products and Methods of Collaboration. The Consultant will be required to provide computer files compatible with the following programs whenever possible unless otherwise directed by the City Attorney:
a. Word Processing (drafts): Microsoft Word
b. Spreadsheets: Microsoft Excel
c. Final Work-product: Adobe PDF
While collaborating on drafts with City staff, Consultant will be asked to use links to shared files and to avoid, whenever possible, the emailing of drafts to minimize version control issues. City staff will review any documents or materials provided by the Consultant and, when necessary, provide feedback that the Consultant will be required to respond to and make such changes as deemed appropriate.

19.Indemnification and Defense.
a. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to perform its obligations under this Agreement or out of the operations conducted by Consultant, including the City’s active or passive negligence, except for such loss or damage arising from the sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

-25-
b. The review, acceptance or approval of the Consultant’s work or work-product by any indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense obligations. This Section survives completion of the Services or the termination of this Agreement. The provisions of this Section are not limited by and do not affect the provisions of this contract relating to insurance.

20.Suspension or Termination of Agreement Without Cause. a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least thirty (30) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City’s liability will be the lesser of a reasonable price for the services rendered prior to termination, or the price for the services reflected in the contract. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 13.

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

-26-
c. The City reserves the right to delay such payment until completion or confirmed abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Consultant be entitled to receive in excess of the not to exceed amount shown in this Agreement.

22.Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

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

24.Rebates, Kickbacks or Other Unlawful Consideration. The Consultant warrants that this contract was not obtained or secured through rebates, kickbacks or other unlawful consideration, either promised or paid to any City employee. For breach or violation of the warranty, the City shall have the right, in its discretion, to terminate the contract without liability; to pay only for the value of the work actually performed; to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.

25.Covenant Against Contingent Fees. The Consultant warrants by execution of this contract that no person or selling agency has been employed, or retained, to solicit or secure this contract upon an agreement or understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Consultant for the purpose of securing business. For breach or violation of this warranty, the City has the right to annul this contract without liability; pay only for the value of the work actually performed, or in its discretion, to deduct from the contract price or consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.

26.Assignment and Sub-contract Provisions. The Consultant shall not assign, transfer, convey or otherwise dispose of the Agreement, or its right, title or interest, or its power to execute such an agreement to any individual or business entity of any

-27-
kind without the previous written consent of the City. No portion of the work pertinent to this Agreement shall be subcontracted without written authorization by the City.

Any substitution of subconsultants must be approved in writing by the City.

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

27.Amendments. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Attorney or other appropriate review authority according to the City’s Financial Management Manual.

28.Working Out of Scope. If, at any time during the project, the Consultant is directed to do work by persons other than the City Attorney and the Consultant believes that the work is outside of the scope of the Agreement, the Consultant shall inform the City Attorney immediately. If the City Attorney and Consultant both agree that the work is outside of the scope of the Agreement and is necessary to the successful completion of the project, then an amendment to the Agreement, reflecting the additional work, will be drafted as agreed upon between the City and the Consultant, and executed by the Parties. Any extra work performed by Consultant without prior written approval from the City Attorney shall be at Consultant's own expense.

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

To City: City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attention: City Attorney’s Office
Email: [email protected]

-28-
To Consultant: [Consultant’s Full Legal Name]
[Consultant Mailing Address]
Email: [Consultant email address)

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

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

32.Authority to Execute Agreement. Both City and Consultant do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party.

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

CITY OF SAN LUIS OBISPO: [Consultant’s Full Legal Name]:
__________________________ _______________________________ J. Christine Dietrick, By: [Name of Authorized Representative] City Attorney
Its: [Title of Authorized Representative]

-29-
Exhibit A to Agreement
Detailed Scope of Work for the Services:
[To be provided by Consultant]
Names of the individuals in the law firm assigned to provide the Services:
[To be provided by Consultant]
Confirmation of the rates proposed for the work of the individuals named above:
[To be provided by Consultant]

-30-
Exhibit B to Agreement
[City’s insurance requirements for professional services current at the time of execution of the Agreement.]

Item 5f
Department: Public Works
Cost Center: 5006
For Agenda of: 1/9/2023
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Manny Guzman, Construction Engineering Manager SUBJECT: AUTHORIZE ADVERTISEMENT OF A REQUEST FOR QUALIFICATIONS

FOR EMERGENCY, RESPONSE, REPAIR, AND CLEANUP IN THE

EVENT OF A DISASTER

RECOMMENDATION

1. Approve the Request for Qualifications (RFQ) for Emergency Response, Repair & Cleanup Damage During Disasters; and

2. Authorize staff to advertise for qualifications in a final form approved by the City Engineer and City Attorney; and

3. Authorize the City Manager to execute agreements with selected emergency contractors; and

4. Authorize the City Engineer to amend or extend emergency contracts in accordance with the terms of the RFQ and Agreement; and

5. Authorize the Finance Director to execute and amend Purchase Orders utilizing selected emergency contractors, in accordance with emergency procurement procedures of Municipal Code Section 3.24.060.

POLICY CONTEXT
Emergency Purchases
Municipal Code Section 3.24.060 specifies that bidding procedures are not required under certain circumstances, specifically subsections B and F, as follows:
“B. When an emergency purchase is made to address a situation that creates an immediate and serious need for equipment, supplies, or services that cannot be met through normal purchasing procedures and where the lack of such equipment, supplies or services would seriously threaten the functioning of city government, the preservation of property, or the health or safety of any person”; and,
“F. When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property”

Item 5f
Under Municipal Code Section 3.24.060, the Purchasing Authority (the City Manager per Municipal Code Section 3.24.030) has the authority to dispense with bidding procedures and approve emergency purchases that address an immediate need in the interest of public safety, per the above.

Requests for Qualifications for Emergency On-Call Contractors Staff recommends establishment of a list of qualified on-call contractors that can be quickly mobilized during emergencies under Municipal Code Section 3.24.060. Staff will be seeking qualifications utilizing the process established by Municipal Code Section

3.24.070, under which contractors will respond to the RFQ with information identifying their experience and resource capabilities. The City will execute contracts with qualified contractors, and on an as-needed emergency basis, selected contractors will be issued purchase orders for emergency work under the authority of the Finance Director.

Work completed by emergency contractors would be paid on a time and materials basis in accordance with Section 9-1.04 of the City Standard Specifications and Engineering Standards. Time and materials payments, also termed “Force Account”, ensure fair compensation for labor, materials, and equipment, and is common practice for contract work when there is insufficient time to receive bids, or the full extent of work is unknown, as is the case with emergency response.

Disasters can come in many forms and those that impact public infrastructure can be the most severe. These emergency contracts are intended to provide additional resources in support of Emergency Operations to respond and repair impacts, including, but not limited to streets and roadways, storm drainage infrastructure, creeks and bridges, water distribution, storage, and treatment, wastewater treatment and collection infrastructure, earthwork, and building structural repair.

Agreements will be used by the City for four years and may be extended by mutual consent for an additional year.

DISCUSSION
Background
Historic rainfall in January and March 2023 resulted in many damaged areas of the city, especially in and around San Luis Obispo creek and its tributaries. Rainfall intensity and heavy creek flows resulted in localized flooding and damage to public and private property, which necessitated mobilization of contractors under emergency authority to remove creek debris and obstructions that put the public at continued risk. Emergency work was also necessary to initiate repair and stabilization of damaged permanent infrastructure such as roadways and bridges and protect them from progressive and costlier damage that could result from subsequent storms.

During emergencies, time is of the essence. Quick response to emergencies has a higher likelihood of protection of the health, safety, and welfare of the public. During the storms of 2023, it became evident that the City would benefit from developing on-call construction contracts to facilitate storm response and reduce the timeframe for procurement of emergency purchase orders, allowing for faster recovery.

Item 5f
After researching Local, State, and Federal regulations related to emergency response, staff generated the attached Request for Qualifications (RFQ) (Attachment A). This RFQ for emergency response is intended to facilitate work that makes an affected area safe, stable, and removes the risk of a repeat emergency. In instances where an emergency is covered by a federal declaration, work to be done through the on-call contracts obtained through this RFQ process will comply with applicable FEMA regulations.

The intent of the on-call contracts is that they could be used for any local, state, and/or federal emergency. The contract terms are written such that the contractor must comply with the most stringent requirements, which would apply under federally declared emergencies. In the event of a local-only emergency, only local municipal codes and standards would apply, and the contractor would not be held to federal requirements.

That is, the on-call emergency contract is scalable to the applicable level of emergency declaration.

Public Engagement
The Public Engagement and Noticing Manual will be followed when work is carried out during and emergency response.

CONCURRENCE
The Public Works, Utilities, and Finance Departments concurs with the recommendation of this report.

ENVIRONMENTAL REVIEW
Future emergency work covered under this contract is exempt from environmental review pursuant to Section 15301 Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines since it involves repair and replacement project of existing facilities. Additionally, future emergency work completed under this contract would be exempt from requirements of CEQA under Section 1529 – Emergency Projects.

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 $ $ $ $
State
Federal
Fees
Other:

Total $N/A $N/A $N/A $N/A

Item 5f
The RFQ will not be triggering actual purchases at this time, rather the agreements resulting from the RFQ will establish a list of qualified contractors that are available and willing to help the City with as-needed emergency work.

There is no specific work known at this time and no specific budget allocation for emergency service contracts. In the event work effort is required, the City will implement its emergency purchasing processes to release funds from the City’s reserves or other appropriated funding sources, as approved by the Purchasing Authority.

ALTERNATIVES
Acquire services as needed at the time of the disaster. The City has procedures identified for procurement in the event of an emergency. These could be used when needed; however, obtaining a list of qualified contractors in advance of an emergency allows the City to respond faster and minimize damage to public and private property.

ATTACHMENTS
A - Request for Qualifications for Emergency Response, Repair, and Cleanup

Notice Requesting Qualifications for
Emergency Response, Repair & Cleanup
Specification No. 50410-2024 ER
The City of San Luis Obispo is requesting sealed Qualifications for supplying labor and equipment at the City’s request, as needed to provide emergency response including clearing storm debris and making repairs to infrastructure at various locations as directed by the City Engineer. All Qualifications must be received by the Public Works Department by 2 P.M., February 1st, 2024, when they will be opened publicly at 919 Palm Street, San Luis Obispo, CA 93401.

Qualifications received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Public Works Department at 919 Palm Street, San Luis Obispo, CA 93401 in a sealed envelope plainly marked with the proposal title, specification number, proposer name, and time and date of the proposal opening. Qualifications shall be submitted using the forms provided in the specification package.

Specification packages and additional information may be obtained by contacting Brian Nelson at (805) 781-7113.

If any accommodations are needed to participate in the proposal process, please contact Lia Chang at (805) 781-7200. Requests should be made as soon as possible to allow time for accommodation. For additional information, contact Telecommunications Device for the Deaf at (805) 781 7107.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

Specification No. 50410 - 2024 ER

TABLE OF CONTENTS
DESCRIPTION OF WORK ............................................................................................................2 GENERAL TERMS AND CONDITIONS .....................................................................................3 SPECIAL TERMS AND CONDITIONS......................................................................................10 FORM OF AGREEMENT ............................................................................................................13 INSURANCE REQUIREMENTS.................................................................................................15

1. PROPOSAL SUBMITTAL FORM..........................................................................................17

2. REFERENCES .........................................................................................................................18

3. STATEMENT OF PAST CONTRACT DISQUALIFICATIONS............................................19

4. QUESTIONNAIRE ...................................................................................................................20

5. EQUIPMENT ............................................................................................................................21

6. LABOR & BONDS ...................................................................................................................22

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

Section A

DESCRIPTION OF WORK
Disasters can come in many forms and those that impact public infrastructure can be the most severe.

These emergency contracts are intended to provide additional resources in support of Emergency Operations to respond and repair impacts, including, but not limited to: to streets and roadways, storm drainage infrastructure, creeks and bridges, water distribution, storage, and treatment, wastewater treatment and collection infrastructure, earthwork, and building structural repair.

The City desires to enter into agreements with available contractors, on and on-call basis, to respond to and aid the City crews and staff as needed at Caltrans Force Account and its allowable markup rates.

The qualifications submittals will be evaluated, ranked, and rated based on available equipment and labor, response time and the qualification questionnaire.

Contractors should be prepared to:

1. Work in wet rainy conditions during the day or night.

2. Provide fueled equipment with skilled operators to remove and transport dirt, mud, rocks, trees, vegetation and other debris that could be generated under unknown conditions; or, provide tree trimming and removal services.

3. Provide laborers, teamsters and other trades as requested.

4. Provide appropriate traffic control for work.

5. Transport materials, paid for by the City, as requested by the City.

Qualifications shall include a list of available equipment and labor force available to operate or support the equipment listed. The proposal shall list the response time needed for the contractor show up on site ready to work after receiving a call from the City.

Equipment may be requested to be delivered to a site in anticipation of problems or expected damage. A standby rate will be paid for the equipment sitting idle and not being used. Equipment could include but is not limited to: Transport trucks and trailers, backhoes, excavators, dump trucks, large capacity pumps, service trucks and water trucks. Labor listing could include but is not limited to: operators, teamsters and laborers.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

Section B

GENERAL TERMS AND CONDITIONS

PROPOSAL REQUIREMENTS

1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal shall meet all of the terms, and conditions of the Invitation for Request for Qualifications (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. The City does not guarantee any work with the acceptance of the proposal or the issuance of a contract. The Contractors proposal will be used to provide a predetermined rate of payment for services provided to the City if requested.

2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials.

Proposal documents shall be enclosed in an envelope which shall be sealed and addressed to the Public Works Department, City of San Luis Obispo, 919 Palm Street, San Luis Obispo, CA, 93401. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of proposer, and date and time of proposal opening.

No FAX submittals will be accepted. Proposal sheets can be copied if additional pages are needed.

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

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

4. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the City Engineer for its withdrawal, in which event the proposal will be returned to the proposer unopened.

No proposal received after the time specified or at any place other than that stated in the "Notice Requesting Qualifications" will be considered.

5. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an alternative proposal when specifically requested.

6. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However, any such oral communication shall not be binding on the City.

CONTRACT AWARD AND EXECUTION

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

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

8. Competency and Responsibility of Proposer. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposer. Proposer will provide, in a timely manner, any and all information which the City deems necessary to make such a decision.

9. Contract Requirement. The proposers to whom an award is made (Contractor) shall execute a written contract with the City within five (5) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications.

10. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages, and amounts specified in Section E of these specifications within 5 (five) calendar days after notice of contract award as a precondition to contract execution.

11. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling (805)781-7134.

CONTRACT PERFORMANCE

12. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work anticipated hereunder:
a) Within the budget(s) established by the City for this work. b) In compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations.

13. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work.

14. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay.

15. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary.

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

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

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

18. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged as a result of the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work.

19. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder.

20. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons.

21. Payment of Prevailing Wages. Payment of prevailing wages is required for the classification of work being performed during this contract. Certified Payroll forms shall be submitted with each billing. You and any subcontractors must be registered with the Department of Industrial Relations pursuant to Section 1725.5.

22. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor (Net 30).

23. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill the work as requested.

24. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor.

25. Interests of Contractor. The Contractor covenants that it presently has no interest and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed.

The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall always be deemed an independent contractor and not an agent or employee of the City.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

26. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees.

27. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City.

28. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform and terminate the contract. If the contractor or any of the employees work in an unsafe manor, appear to be incompetent or act in a disorderly or improper manner the contract will be terminated. If the contractor does not respond within one hour of the response time listed in their proposal the contract may be terminated.

The City also reserves the right to terminate the contract for convenience, providing a 30 (thirty) calendar day notice, at any time upon a determination by the Director that termination of the contract is in the best interest of the City. In this case the Contractor will be paid compensation due and payable to the date of termination.

29. Federal Requirements (Applicable under Federally declared emergencies).

30.1 Compliance with Executive Order 11,246 (44 C.F.R. § 13.36(i)(3)) During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

(4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
(6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions as may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (7) The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event a contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency the contractor may request the United States to enter into such litigation to protect the interests of the United States.”

30.2 Compliance with Copeland Anti-Kickback Act (44 C.F.R. § 13.36(i)(4)) “Compliance with the Copeland “Anti-Kickback” Act
(1) Contractor. The contractor shall comply with 18 U.S.C. § 874, 40 U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable, which are incorporated by reference into this contract.
(2) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as the FEMA may by appropriate instructions require, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all of these contract clauses.
(3) Breach. A breach of the contract clauses above may be grounds for termination of the contract, and for debarment as a contractor and subcontractor as provided in 29 C.F.R. §

5.12.”

30.3 Notice of Awarding Agency Requirements and Regulations Pertaining to Reporting (44 C.F.R. § 13.36(i)(7))

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

(1) General. The City of San Luis Obispo (City) may use Public Assistance grant funding awarded by FEMA to the City of San Luis Obispo to pay, in whole or in part, for the costs incurred under this contract. As a condition of Public Assistance funding under a major disaster or emergency declaration, FEMA requires the City to provide various financial and performance reporting. a. It is important that the contractor is aware of these reporting requirements, as the City may require the contractor to provide certain information, documentation, and other reporting in order to satisfy reporting requirements to the City which, in turn, will enable the City to satisfy reporting requirements to FEMA.
b. Failure of the City to satisfy reporting requirements to FEMA is a material breach of the FEMA-State Agreement, and could result in loss of Federal financial assistance awarded to fund this contract.
(2) Applicable Regulations and Policy. The applicable regulations, FEMA policy, and other sources setting forth these reporting requirements are as follows:
a. 44 C.F.R. § 13.40 (Monitoring and Reporting Program Performance) b. 44 C.F.R. § 13.41 (Financial Reporting)
c. 44 C.F.R § 13.50(b) (Reports)
d. 44 C.F.R. § 206.204(f) (Progress Reports)
e. FEMA Standard Operating Procedure No. 9570.14, Public Assistance Program Management and Grant Closeout Standard Operating Procedure (Dec. 2013) f. FEMA-State (or Tribal) Agreement
(3) Financial Reporting. The City is required to submit to the following financial reports to FEMA:
a. Initial Report. An initial Federal Financial Report (SF 425) no later than 30 days after FEMA has approved the first Public Assistance project under FEMA declared disaster. b. Quarterly Reports. Following submission of the initial report, quarterly Federal Financial Reports until submission of the final report described in the following subparagraph. Reports are due on January 30, April 30, July 30, and October 30. c. Final Report. A final Federal Financial Report within 90 days of the end of the period of performance for the Public Assistance grant.
(4) Performance Reporting. The City is required to submit to the following financial reports to FEMA:
a. Initial Report. An initial performance report no later than 30 days after FEMA has approved the first Public Assistance project under FEMA declared disaster. b. Quarterly Reports. Following submission of the initial report, quarterly performance reports until submission of the final report described in the following subparagraph. Reports are due on January 30, April 30, July 30, and October 30.
c. Final Report. A final performance report within 90 days of the end of the period of performance for the Public Assistance grant.”

30.4 Access to Records (44 C.F.R. § 13.36(i)(10))
“Access to Records. The following access to records requirements apply to this contract:

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

(1) The contractor agrees to provide the City of San Luis Obispo, the State of California, the FEMA Administrator, the Comptroller General of the United States, or any of their authorized representatives access to any books, documents, papers, and records of the Contractor which are directly pertinent to this contract for the purposes of making audits, examinations, excerpts, and transcriptions.
(2) The Contractor agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. (3) The contractor agrees to provide the FEMA Administrator or his authorized representatives access to construction or other work sites pertaining to the work being completed under the contract.”

30.5 Retention of Records (44 C.F.R. § 13.36(i)(11))
“Retention of Records. The contractor agrees to maintain all books, records, accounts and reports required under this contract for a period of not less than three years after the date of termination or expiration of this contract, except in the event of litigation or settlement of claims arising from the performance of this contract, in which case contractor agrees to maintain same until the City of San Luis Obispo, the State of California, the FEMA Administrator, the Comptroller General of the United States, or any of their duly authorized representatives, have disposed of all such litigation, appeals, claims or exceptions related to the litigation or settlement of claims.”

30.6 Energy Efficiency (44 C.F.R. § 13.36(i)(13))
“Energy Conservation. The contractor agrees to comply with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.”

30.7 Suspension and Debarment
“Suspension and Debarment
(1) This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such the contractor is required to verify that none of the contractor, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. §180.935). (2) The contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into.
(3) This certification is a material representation of fact relied upon by the City of San Luis Obispo.

If it is later determined that the contractor did not comply with 2 C.F.R. pt.180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the State of California and the City of San Luis Obispo, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment.
(4) The proposer agrees to comply with the requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.”

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

Section C

SPECIAL TERMS AND CONDITIONS

QUALIFICATIONS CONDITIONS

1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms and Conditions) of these specifications, the City will rank the contractors based on available equipment and labor, response time and the qualification questionnaire. The top ranked contractor will be the first to be called. Other contractors called to work will be called based on their proposal ranking.

2. Failure to Accept Contract. The following will occur if the contractor(s) to whom the award is made fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a bidder's bond or security is required.

OPEN CONTRACT PERIOD

3. Contract Term. The supplies or services identified in this specification will be used by the City for four calendars year beginning on date of executed contract.

4. Contract Extension. The term of the contract may be extended by mutual consent for an additional calendar year for original contract end date.

5. Contractor Invoices. The Contractor shall deliver a monthly invoice supported by daily labor and equipment invoices. The daily invoices shall show the date of work, an itemized list of manpower and equipment, location the work was performed and must be signed by the City inspector and the contractor’s representative. Contractor shall submit Certified Payroll forms with billing invoices.

6. Non-Exclusive Contract. The City reserves the right to contract with more than one or multiple contractors that have submitted Qualifications under this request during the contract term.

7. Start and Completion of Work. The Contractor shall be prepared to respond to the City’s request for manpower and equipment within 24 hours of the contract award. Completion of work shall be determined by the length and terms of this contract.

REFERENCES

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

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

PERFORMANCE BONDS

10. Faithful Performance Bond Requirement. Each proposer to whom the contract is awarded (Contractor) shall execute the contract and furnish a surety bond in the amount of 100% of the estimated value of the work, guaranteeing the faithful performance of the contract, including any attorney’s fees or other collection costs, at the time the first Purchase Order is issued for work.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

11. Material Suppliers and Labor Bond Requirement. The Contractor shall furnish a surety bond in the amount of 100% of the estimated value of the work, to secure the payment of claims for materials and labor provided by others to perform the work, at the time the first Purchase Order is issued for work.

REQUEST FOR PROPOSAL

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

Submittal Forms

1. Proposal submittal summary with Certificate of insurance. Endorsements are not required until contract award.

2. References from at least three firms for whom you have provided similar services. One of the three reference projects must have been completed under contract with a city, county, state or federal government agency as the prime contractor.

3. Statement of Past Contract Disqualifications

4. Questionnaire

5. Available equipment and response time.

6. Available labor.

7. Personnel list, licenses and certifications.

Qualifications Review

1. Experience of your firm in performing similar type work, such as tree trimming and removal or debris, rock, dirt and related materials, repair of public infrastructure.

2. Statement and explanation of any instances where your firm has been removed from a project or disqualified from proposing on a project.

13. Proposal Evaluation and Contractor Selection Qualifications will be evaluated by a review committee based on the value of four components including available equipment, available labor, response time and the qualification questionnaire. Response time will be evaluated on the City’s need for a rapid response in the time of an emergency with the quickest response time receiving the highest ranking under the response time component. The qualification questionnaire will be evaluated on the ability to perform and work with the City under an emergency contract.

14. Written Proposal Review/Contractor Selection
A group of the best Qualifications with the highest overall ranking for the four components will be selected for assigning and issuing on-call contracts.

Contract award will be based on the combination of the four components that represent the best overall value for providing equipment, labor, response time and the ability to perform for the work scope as described by the City.

15. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award:
a. Issue RFP 1/13/23
b. Receive Qualifications 2/1/24

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

c. Evaluate Qualifications 2/15/24
d. Notify proposers of award recommendation 2/22/24
e. Award contract 3/14/24
f. Insurance w/ endorsements due from contract awardees 3/26/24 g. Execute contract 4/2/24
h. On call, ready to work 4/8/24

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

Section D

FORM OF AGREEMENT

AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this _____________day of ____________________________________, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor.

W I T N E S S E T H:

WHEREAS, on [date], City invited requested Qualifications for emergency response and repair per Specification No. 50410 – 2024 ER
WHEREAS, pursuant to said RFP for Emergency Storm Response, Repair & Cleanup Damage During Disasters, Specification No. 50410-2024 ER, Contractor submitted a proposal which was accepted by City for said equipment, labor and services.

NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows:

1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered, as first written above, until acceptance or completion of said services.

2. INCORPORATION BY REFERENCE. City Specification No. 50410 – 2024ER, City Engineering Standards and Standard Specifications, and Contractor's proposal dated [date], are hereby incorporated in and made a part of this Agreement.

3. CITY'S OBLIGATIONS. For providing equipment, labor and services as specified in this Agreement, City will pay and Contractor shall receive therefor compensation with payments based upon the actual work ordered and received by City at Force Account prices by Contractor.

4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide equipment, labor and services as requested by the City to clean up storm debris and repair infrastructure as requested under the terms and conditions of the contract.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City.

6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto.

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

City Brian Nelson
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Contractor [ ]
[ ]
[ ]
[ ]

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

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

CITY OF SAN LUIS OBISPO: CONSULTANT:
___________________________________
Name of Company
By: ___________________________________
Derek Johnson, City Manager Name of CAO/President
Its: CAO/President
APPROVED AS TO FORM:
___________________________________
Christine Dietrick, City Attorney

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

INSURANCE REQUIREMENTS
The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.

Minimum Scope of Insurance. Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

Minimum Limits of Insurance. Contractor shall maintain limits no less than:

1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.

Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers.

2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.

3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.

4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences.

Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

1. PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined Specification No. 50410 - 2024 ER, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full:
 Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.

Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

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

Reference Number 1
Customer Name, Contact Individual, telephone & email
Project Name & Location
Did this project include emergency
response work?
Yes □ No □
Describe the services provided and how this project is similar:

Was this contract for a public agency?
Yes □ No □
Date project completed:

Reference Number 2
Customer Name, Contact Individual, telephone & email
Project Name & Location
Did this project include emergency
response?
Yes □ No □
Describe the services provided and how this project is similar:

Was this contract for a public agency?
Yes □ No □
Date project completed:

Reference Number 3
Customer Name, Contact Individual, telephone & email
Project Name & Location
Did this project include emergency
response?
Yes □ No □
Describe the services provided and how this project is similar:

Was this contract for a public agency?
Yes □ No □
Date project completed:

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

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

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

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

4. QUESTIONNAIRE
The following questions shall be answered to assist the City in making an evaluation of the company and the ability to respond and perform work as required. When answers to the questions require more spaces than provided here, please attach additional pages.

1. Please list the location of your service or storage yard where your equipment is stored.

Is your labor force dispatched from the same location? Yes / No

2. Does your company own all the equipment listed in your proposal? Yes / No What equipment or trucks are rented?

3. Are your foreman and workers equipped with two-way radios, or cell phones?

4. Has your company ever had an emergency response contract in the past? Yes / No

5. Why do you feel that your company is qualified to perform work during a storm or flooding situation?

6. Does your company have adequate work force to work safely 24 hours a day if needed?

7. Is there any other information that your company wishes to provide?

8. Identify the types of work your company is qualified to perform (check all that apply):

Tree Trimming & Removal General Debris Removal & Cleanup Rock Slope Protection Pipeline Repair & Installation
Other – List:

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

5. EQUIPMENT
Company Name: Response Time:

Primary Contact: Phone:

List two 24 hr emergency contact phone numbers: 1. 2.

Note: Equipment rates shall include all fuel, maintenance, repairs, profit and overhead. No additional compensation will be allowed. The standby rate will be for equipment siting on the job not running with no labor force on site.

Available Equipment
Ref. Caltrans
Equip Code
Hourly Rate Overtime
Hourly Rate
Standby
Hourly Rate

Emergency Response, Repair & Cleanup Specification No. 507410 – 2024ER

6. LABOR & BONDS
Company Name: Response Time:

Primary Contact: Phone:

List two 24 hr emergency contact phone numbers: 1. 2.

Note: Labor rates shall include the cost of labor, overhead, supervision, markup and profit and no additional compensation will be allowed.

Labor Classification
Group No.
or Class No.

Amount
Hourly Rate
OT/Saturday
Hourly Rate
Sunday / Holiday
Hourly Rate
Bond Costs
Cost for Bond
Labor & Material Bond ($100,000):

Performance Bond ($100,000):

Item 5g
Department: Administration
Cost Center: 1021
For Agenda of: 1/9/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Kevin Christian, Deputy City Clerk
SUBJECT: ADVISORY BODY APPOINTMENT TO THE CITIZENS' REVENUE

ENHANCEMENT OVERSIGHT COMMISSION FOR AN UNSCHEDULED

VACANCY

RECOMMENDATION
Confirm the appointment of Kenny McCarthy to the Citizens’ Revenue Enhancement Oversight Commission (REOC) to fill an unscheduled vacancy with a term ending date of June 30, 2026.

POLICY CONTEXT
The Advisory Body Handbook, last adopted by City Council in September 2021, outlines the recruitment procedures, membership requirements, and term limits for all City advisory bodies. Additionally, the City Council Policies and Procedures Manual, last updated May 2023, describes the “Appointment Procedure” and “Process” for Advisory Body appointments. Recruitment and appointment recommendations were performed in conformance with all recruitment procedures, processes, and bylaws found in these resources.

California Government Code Section 54972, Local Appointments List (Maddy Act), requires that on or before December 31st of each year, each legislative body shall prepare an appointments list for their boards, commissions, and committees whose members serve at the pleasure of the legislative body. This obligation was met and is ongoing.

DISCUSSION
The current unscheduled vacancy on the REOC was created in November 2023 when a member moved out of town and was therefore no longer eligible to serve on the commission. The Annual Advisory Body Recruitment is to open December 6, 2023.

Standard process would be to fill the vacancy using this recruitment. However, the REOC bylaws call for just four meetings per year with the meetings dates tied to the Financial Plan process. Two of those meetings are scheduled prior to the finalization of the annual recruitment appointments which occur at the end of March, thereby creating an urgency to this appointment.

Item 5g
Per the Advisory Body Handbook, Section C, Membership Qualifications and Appointment Process, the applicant being recommended for appointment interviewed previously for a vacancy on the REOC during the 2022-23 Annual Recruitment process.

Public Engagement
Notices that the City was accepting applications for City Advisory Bodies Annual Recruitment were placed on the City’s website and “e-notification” service, listed in the annual Local Appointments List (Maddy Act Notice – GC 54972) on the City Website and City Information kiosk, and distributed via City social media outlets, in late November 2022. A notice that the City was specifically recruiting for the current unscheduled vacancy was posted in the City Information kiosk outside City Hall and on the Advisory Body Vacancies page of the City website on November 8, 2023, following Maddy Act guidelines.

CONCURRENCE
The Council liaisons for the REOC concur with the recommendation.

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

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

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

Total $ $ $ $ N/A*
*Advisory body members serve as volunteers and donate their time. The costs related to recruitment are accounted for in the annual budget appropriation in the City Clerk program.

Item 5g

ALTERNATIVES
Council could recommend changes to the subcommittee’s recommended appointment or direct staff to open recruitment as part of the annual recruitment cycle for additional candidates. This is not recommended as it will leave an open seat on the REOC for half their scheduled annual meetings and the Council Liaisons for the committee have interviewed the recommended candidate and feel that they have been quite thorough in their consideration of the applicant and the Council’s needs in their selection process.

ATTACHMENTS
The candidate application is available in the City Clerk’s office.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 9, 2024
TO: Mayor and Council
FROM: Matt Horn, Public Works Director
Prepared By: Jennifer Rice, Deputy Director of Mobility Services VIA: Derek Johnson, City Manager
SUBJECT: Item 5h – APPROVAL OF THE SECOND AMENDMENT TO A LEASE AGREEMENT FOR 837 MARSH STREET
Staff received the following questions, regarding the approval of the second amendment to a lease agreement for 837 Marsh Street. The questions are below with staff’s response shown in italics:
1) Would the proposed contract amendment provide rent reduction for Jamestown or the Shoe Palace?
The City has a direct contract with Jamestown Premier Property to manage this commercial property on behalf of the City. Jamestown has years of expertise and experience managing retail and commercial spaces within the City of San Luis Obispo. Property managers are able to provide value to the City and tenants by acting as a liaison between the tenant and the City, screening tenants, providing marketing and advertising of commercial properties, and are able to attract and negotiate with tenants to minimize vacancy periods.

The City’s lease agreement is with Jamestown Premier Property as the property manager and not the tenant, therefore the rent reduction is via the agreement between the City and Jamestown.
2) If the rent reduction is with Jamestown, what guarantee does the City have that the Shoe Palace's rent would be reduced by Jamestown?
The City contracts directly with Jamestown as the property manager and, therefore has no direct contact with the tenant, Shoe Palace. Jamestown has communicated to the City that the terms proposed in the second lease agreement are those amendable to Shoe Palace in order for them to remain as the current tenant of the space.
3) If the Shoe Palace's rent is reduced, what guarantees does the City have that the Shoe Palace will not terminate its lease and/or vacate the premises?

Item 5h – APPROVAL OF THE 2
nd AMENDMENT TO A LEASE FOR 837 MARSH STREET Page 2
The City’s lease agreement is with Jamestown Premier Property as the property manager and not the tenant, therefore if the tenant Shoe Palace terminates or vacated the premises; Jamestown would still be required to meet the contractual terms of the agreement. It would be in Jamestown’s best interest to maintain Shoe Palace as a tenant or find a new tenant as quickly as possible if Shoe Palace terminates use of the property.
4) Which properties in the Downtown are owned by Jamestown? How many of them are empty? What rents are being charged?
The City is aware that Jamestown manages a significant amount of commercial and retail space within the City’s downtown, the extent of which is unknown to the City as the holdings are typically held within various LLC’s. The terms of those private agreements are not the subject of this agenda item and, therefore have not been researched.
5) Are any of those properties also leased from the City? 837 Marsh Street is the only property in which the City has a lease agreement with Jamestown.
6) Do we have the rental rate data on all properties in the downtown? Or is there any kind of accurate way to determine what a fair market rate for that size space is, especially considering most of the other large spaces are vacant? City staff looked at comparable retail and commercial property rates within the downtown to estimate the current market value. Monthly rental rates in the downtown are consistently between $2-4 for commercial leases ranging in square footage from 1,000 – 26,350. The larger retail spaces, for example the formerly Beverly’s Fabric, is $1.99 per square foot per month.
7) Do we have any way of estimating the cost/benefit of breaking this space into smaller units that might be more rentable at higher per-square-foot rates? The City has not conducted such analysis to date for two primary reasons 1) the space has been currently occupied; and 2) property management (including maximizing the revenue of the space) has not been identified as a priority work effort. That said, Council could direct staff to not move forward with a second amendment to the lease with Jamestown and look at other options. The impact of this action would be the likely loss of the current tenant. Alternatively, Council could approve the lease amendment but still direct staff in the future to look at a reconfiguration of the space for maximizing the revenue at a later time. Council should anticipate that a reconfiguration of space will likely require significant capital investment from the Parking fund.

Item 5h – APPROVAL OF THE 2
nd AMENDMENT TO A LEASE FOR 837 MARSH STREET Page 3
8) In the financial forecast, what was budgeted for revenue from this location? Was this potential rent reduction taken into consideration when we recently received revenue/expense estimates for the parking fund over the next five years?
This rent reduction was not included in the Parking Fund Long Term Forecast (LTF) that was presented to Council during the November 7, 2023 meeting. It will, however, be included in the LTF that will be presented as part of the Mid-Year Review. The impact of approving this amendment to the terms of the lease agreement with Jamestown is an annual revenue reduction received by the Parking Fund of approximately $40,230.24 ($3,352.52 monthly reduction x 12 months). The impact of not approving this amendment with Jamestown would be an annual revenue reduction of approximately $132,000 ($11,000 per month x 12 months) until such time as this space could be leased again.

Pending Council’s determination of the proposed amendment with Jamestown, and if the proposed amendment to the contract is approved, Jamestown has indicated that they will draft an amendment between Jamestown and Shoe Palace including these revised terms.

Item 5h
Department: Public Works
Cost Center: 5101
For Agenda of: 1/9/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Jennifer Rice, Deputy Director of Mobility Services SUBJECT: APPROVAL OF THE SECOND AMENDMENT TO A LEASE AGREEMENT FOR 837 MARSH STREET

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, finding a public purpose for temporarily reducing the rent for the Commercial Lease Space located at 837 Marsh Street” to authorize the City Manager or their designee to execute the second amendment to the lease agreement.

POLICY CONTEXT
The City General Plan Policy 13.1.2 states that City parking programs shall be financially self‐supporting. Resolution No. 10052: Sets the policy authorized by the City Charter. Key provisions are that Council approval is required for any:

1. Sale of real or personal property in excess of $1,000.

2. Lease of personal property for more than three years The proposed lease agreement is not subject to the Surplus Land’s Act because 1) No demolition or redevelopment will occur and 2) It is an amendment to an existing lease agreement that predated requirements under AB 1486 and the action to lease or dispose of the land occurred prior to September 30, 2019.

DISCUSSION
Staff recommends that the City Council approved a resolution (Attachment A) authorizing the City Manager to execute a second amendment for a lease for 837 Marsh Street (Attachment B). The original lease agreement is included in Attachment C, and the first amended agreement with Jamestown is included as Attachment D.

The City’s Parking Services Program manages one commercial lease space located at the Marsh Street Parking Structure at the corner of Marsh Street and Chorro Street addressed as 837 Marsh Street. This commercial property provides a consistent source of revenue for the Parking Fund.

Item 5h
In May of 1989, the City and the Charles Ford Company, doing business as Riley’s Department Store, executed a building lease agreement (the “Lease”). The City agreed to build the Marsh Street parking structure, which included a 15,000-square-foot retail space to be used by a long-term tenant to ensure parking demand in the parking structure and revenue for the Parking Fund.

Copelands acquired the lease for the retail space from Riley’s and was subsequently acquired by Jamestown Premier Property in 2013. At that time, Jamestown and the City agreed upon Amendment 1 (Attachment D) to the Lease, which updated terms including options for an extended lease term, modified rental rates, and maintenance and repairs criteria. Jamestown currently sub-leases this retail space to Shoe Palace and pays $14,352.52 monthly, which expires January 31, 2024. Amendment 1 also provides an option for an additional five-year term of the lease subject to mutual agreement of both the parties.

In April 2023, Jamestown representatives notified the City that the current tenant, Shoe Palace, is not interested in renewing their lease with Jamestown at the current rate due to financial impacts of the pandemic and decreased sale volume. Jamestown representatives indicated that they would not be interested in extending the Lease pursuant to the five-year option because large commercial spaces in the downtown are challenging to fill. Jamestown representatives indicated that they would work with their tenant, Shoe Palace, on new lease terms but that would likely require a reduction in monthly rent.

In August of 2023, Jamestown provided the City with a new proposal that would allow Shoe Palace to keep operating from this location and in turn, allow the City to continue the Lease with Jamestown. The terms of the proposed amendment to the Lease are as follows and are incorporated via Amendment 2 (Attachment B) into the original agreement:

1. Rent shall be $11,000 per month.

2. The lease agreement will commence on February 1, 2024.

3. Rent shall increase by 3% each year beginning February 1, 2025.

4. The term of the lease agreement will be for five (5) years1.

5. There is no option to renew the lease.

Finding of a Public Purpose for Proposed Lease Amendments It should be noted that the proposed terms require a reduction in rent by $3,352 per month, and no property improvements are required. It is recommended that the Amended Lease be approved, nonetheless, as the continuation of the proposed terms provide an overall public benefit to both the downtown and the Parking Fund (see Attachment A).

Larger retail spaces such as this one can be difficult to fill and generally the proposed lease rate is consistent with rates for this size of building. Attachment A includes a resolution with finding for public purposes to support the reduction in lease rates.

1 This lease term will provide the equivalent of the original lease term plus the option to extend the lease provided for in Amendment 1. No additional lease extension is proposed beyond what was previously contemplated.

Item 5h
Locally, the City has seen these types of spaces vacant for months if not years, while smaller spaces tend to fill rapidly. Given the size and structure of the Shoe Palace retail space, if it were to become vacant it could remain that way for a significant period of time, and may need significant investments in tenant improvements in order for a new tenant to move in. Having the space occupied benefits downtown businesses through ongoing activation and foot traffic, and stimulation of the local economy. In addition, having the space occupied benefits the City financially. The monthly rent provides a consistent source of revenue to the Parking Fund, and the sales tax generated by the space being occupied provides further revenue to the City.

Previous Council or Advisory Body Action
On November 5, 2013, Council approved Amendment No. 1 with Jamestown Premier Property.

ENVIRONMENTAL REVIEW
The recommended actions were reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines. The recommended actions are determined to be exempt from environmental review pursuant to the General Rule under SEQA Guidelines Section 15061 (b)(3), which exempts activities that can be seen with certainty to have no possibility for causing a significant effect ton the environment.

Additionally, the recommended action is exempt pursuant to Categorical Exemption:

Existing Facility 15301.

FISCAL IMPACT
Budgeted: N/A Budget Year: 2024 - 2029
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

Item 5h
The following table provides the proposed annual lease revenues over the five-year term of the amended lease agreement terms.

Proposed Lease Revenue
2024-25 $ 132,000.00
2025-26 $ 135,960.00
2026-27 $ 140,038.80
2027-28 $ 144,239.96
2028-29 $ 148,567.16
Total $ 700,805.92
There are no direct costs associated with entering into this lease agreement. The proposed lease terms will generate $700,805.92 in revenue for the Parking Fund lease revenue over the term of the agreement from CY 2024-25 to FY 2028-29.

The current market value and price of the City’s commercial lease spaces are generally $1.75 per square foot, according to an in-house review of the downtown market values.

At 15,000 square feet, this lease space would be $26,250 a month (compared to the $11,000/month lease proposed). However, the City has received very little interest in the rental of this space due to the size and location. Virtually all of the retail space in the downtown in excess of 15,000 square feet is experiencing challenges or has remained vacant.

Earlier this year, Jamestown representatives indicated that Shoe Palace may not be interested in continuing the lease. At the time, City staff had conversations with Jamestown representatives about the potential for a new tenant, and Jamestown shared their difficulties in identifying other possible tenants for the space. Also at that time, staff contacted representatives at California West, another property management company who handles the management for several residential properties owned through the City’s Parking Fund. California West confirmed that there was limited interest in properties of this type and location.

ALTERNATIVES

1. Council could choose not to approve the modification to the existing retail lease agreement. Staff does not recommend this alternative because the current lease will expire and it is unlikely that the City will be able to find a new tenant for a retail space of this size for an undetermined amount of time, which would leave the space vacant and detract from the vibrancy of downtown. Revenue generated through this agreement supports the overall goals of the City and Parking Fund.

2. Council could reject the lease agreement and direct Staff to pursue changes to the layout of the floor plan to make it more attractive to retailers whom are generally seeing smaller retail space. Staff does not recommend this alternative as it would take years to begin planning and redesigning the space. Staff does intend to begin this work in light of the general changes in the retail market which favor smaller more boutique space.

Item 5h

ATTACHMENTS
A - Draft Resolution temporarily reducing the rent for 837 Marsh Retail Space B - Draft Lease Agreement Amendment 2 with Jamestown
C - Original 837 Marsh Street Lease Agreement
D - Lease Agreement Amendment No. 1 with Jamestown

R ______
RESOLUTION NO. _____ (2024 SERIES)

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

OBISPO, CALIFORNIA, FINDING A PUBLIC PURPOSE FOR

TEMPORARILY REDUCING THE RENT FORTHE COMMERCIAL LEASE
SPACE LOCATED AT 837 MARSH STREET
WHEREAS, the Parking Fund manages commercial lease spaces located 837 Marsh Street; and
WHEREAS, the Parking Program has a role in the fiscal health and customer satisfaction of the downtown area; and
WHEREAS, there are economic uncertainties for businesses including lease spaces managed by the City’s Parking Fund; and
WHEREAS, the original lease was executed on May 15, 1989 between the City of San Luis Obispo and Charles Ford Company, Inc; and
WHEREAS, on March 2, 1993, Charles Ford Company, Inc. and Copelands Investment Partnership entered into an agreement of Assignment and Assumption of Lease in which the Assignment of the Lease was assigned to Copelands Investment Partnership; and
WHEREAS, in 1993 Copelands Investment Partnership subleased the space to Copelands Sports; and
WHEREAS, on November 5, 2013, the City of San Luis Obispo and Jamestown Premier SLO Retail, L.P., as a successor to Copelands, executed Amendment 1 to the Lease for 837 Marsh Street; and
WHEREAS, the basic terms of Amendment 1 to the Lease included a rental rate beginning February 1, 2014 at $11,330 per month, with 3% increase each year after until January 31, 2024 and improvement repairs to be completed by the tenant; and WHEREAS, Jamestown Premier SLO Retail, L.P. currently subleases the space to Shoe Palace, and has since 2014; and
WHEREAS, Jamestown Premier SLO Retail, L.P. will agree upon an extension of the existing lease only with a reduced rent from the original agreement, as proposed in Amendment 2 to the Lease; and
WHEREAS, Shoe Palace intends to remain the tenant in the space for another 5 years if the lease is amended as proposed in Amendment 2; and

Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the basic terms of Amendment 2 to the Lease included a rental rate beginning February 1, 2024 at $11,000 per month, with 3% increase each year after until January 31, 2029, and a term length of 5 years; and
WHEREAS, retail spaces similar in size to 837 Marsh Street have been difficult to fill, post-pandemic; and
WHEREAS, maintaining an occupied space benefits the public through increased activation of the downtown and foot traffic as well as stimulus of the local economy; and WHEREAS, maintaining an occupied space benefits the City by providing revenue in monthly rent, as well as revenue from the sales tax generated by having the space occupied; and
WHEREAS, the Parking Fund’s 2023-25 Financial Plan incorporated work programs intended to support the local economy and, specifically, downtown economic vitality.

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

Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 1. Accepting a reduced rent from Jamestown Premier SLO Retail, L.P. for the commercial lease space located at 837 Marsh Street for the five-year term is of public benefit.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of ___________________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ________________________. ___________________________
Teresa Purrington
City Clerk

1 SECOND AMENDMENT TO BUILDING AGREEMENT AND LEASE
FOR 837 MARSH STREET
THIS SECOND AMENDMENT TO BUILDING AGREEMENT AND LEASE ("Second Amendment”) is made and entered into on __________________________________________ by and between THE CITY OF SAN LUIS OBISPO ("City" or "Landlord") and JAMESTOWN PREMIER SLO RETAIL, L.P, as successor in Interest to COPELANDS' PROPERTIES, LLC, which was the successor in interest to CHARLES FORD COMPANY, INC., ("Tenant"), with respect to that certain Building Agreement and Lease, dated May 15, 1989, as amended by that certain First Amendment to Building Agreement and Lease for 837 Marsh Street, dated as of November 5, 2013 (collectively, the "Original Lease") between Landlord and Tenant, relating to the retail commercial space commonly known at 837 Marsh Street, San Luis Obispo, California ("Premises"). All capitalized terms not otherwise defined in this First Amendment shall have the meaning given in the Original Lease.

AGREEMENT:

WHEREAS, on May 15, 1989 the City entered into a building and lease agreement with Tenant to build the Marsh Street parking structure and a 15,000 square foot retail space at 837 Marsh Street to be rented by Tenant as a long-term lease (the “Original Lease”); and WHEREAS, on November 5, 2013 the City and Tenant agreed to a first amendment to the building and lease agreement amending Article 1 – Term, Section 2 of the Original Lease, Article V – Rent, Sections 1, 2, and 3 of the Original Lease, and Article VII Maintenance and Repairs, a new Section 6 added to the Original Lease; and
WHEREAS, the City and Tenant desire to amend the Original Lease as set forth herein, NOW THEREFORE, the City and Tenant, in consideration of the mutual representations, warranties and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, subject to the terms and conditions hereinafter set forth, and intending to be legally bound, do hereby mutually agree as follows:

1. Article I - Term, Section 2 of the Original Lease shall be deleted in its entirety and shall be replaced as follows:

2. TO HAVE AND TO HOLD said premises with all the rights, privileges, appurtenances thereunto beginning and attaching, unto the Tenant, its successors and assigns for the term of approximately thirty-five (35) years commencing as set in the Original Lease, which term terminates on January 31, 2024 (the “Initial Term”). City and Tenant hereby extend the Term of the Lease for an additional five years commencing on February 1, 2024 and ending on January 31, 2029 (said five (5) year extension is referred to herein as the “First Extended Term”), unless sooner terminated in accordance with the terms of the Lease. For the avoidance of doubt, the parties acknowledge that Tenant has no other options to extend the term of the Lease and any modifications or amendments to terms subject to mutual negotiation and agreement of the parties.

2 2. Article V - Rent, Sections 1, 2 and 3 of the Original Lease shall be deleted in their entirety and shall be replaces as follows:

A. Rental rate during the First Extended Term shall be as follows:

1. From February 1, 2024, to January 31, 2025, rent shall be $11,000 a month.

2. Thereafter, from February 1, 2025, to January 31, 2029, rent shall increase on February 1 of each year by 3%.

3. Except for the amendments set forth above, the Original Lease shall remain in full force and effect.

4. This Second Amendment may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute one and the same agreement.

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

LANDLORD:

CITY OF SAN LUIS OBISPO,
A municipal corporation and Charter City
By: ___________________________
Derek Johnson, City Manager
ATTEST: APPROVAL AS TO FORM:
________________________ ____________________________
Teresa Purrington, City Clerk J. Christine Dietrick, City Attorney TENANT:

Jamestown Premier SLO Retail, L.P.,
a Delaware limited partnership
By: JAMESTOWN Premier SLO Retail GP, LLC,
a Delaware limited liability company, its general partner By: ______________________________
Name: ______________________________
Title: ______________________________

3

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 9, 2024
TO: Mayor and Council
FROM: Greg Avakian, Parks & Recreation Director
Prepared by: Brian Nelson, Deputy Director of Public Works / City Engineer Hai Nguyen, Senior Civil Engineer
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5I. AWARD CONSTRUCTION CONTRACT FOR THE MITCHELL PARK REVITALIZATION PROJECT, SPECIFICATION NO. 2000188
Staff received the following question, regarding the Mitchell Park Revitalization Project.

The question is below with staff’s response shown in italics:
1) From the 10/17/2023 Council meeting, Item 6c, the following was included in the staff report:
“The project’s Base Bid includes the shade structure, benches, and bocce ball court. The project’s Additive Alternative A includes the picnic tables and chess tables. If it is not within the available budget to award the additive alternative, staff will investigate if the picnic tables and chess tables can be donated from a local community group or be purchased through other funding at a later date."
Please explain why we wouldn’t follow that initial approach since the project bid is over budget, and the add alternate is double the engineer’s estimate? All four bids received on November 16, 2023, exceeded the Engineer’s Estimates, requiring additional funding to construct the project. Staff identified additional funding from the Park Improvement Fund (Fund #519) after the project advertisement, and it was found that the available funding was sufficient to support the award of both the Base Bid and Additive Alternate A, leaving a remaining balance in the Park Improvement Fund of $329,907. Additive Alternate A will provide picnic tables and chess tables that will provide additional seating to support play at the bocce ball court, complete the entire scope of the designed project, and include desired improvements for the community. Council could direct staff to pursue donations, but timing for the donations, installation, and the entire scope of the project work may not be completed timely in accordance with the State Grant. The California State Grant outlines a completion date, including State inspection of the project, by June 30, 2024.

Item 5i
Department: Public Works
Cost Center: 5002
For Agenda of: 1/9/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Hai Nguyen, Senior Civil Engineer
SUBJECT: AWARD CONTRUCTION CONTRACT FOR THE MITCHELL PARK REVITALIZATION PROJECT, SPECIFICATION NO. 2000188

RECOMMENDATION

1. Award the Construction Contract to Quincon Inc. for the Mitchell Park Revitalization Project, Specification Number 2000188, in the amount of $397,808; and

2. Appropriate $225,000 in Park Improvement Fund to the Mitchell Park Revitalization Project; and

3. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing use of Park Improvement Fund (Fund #519) to support Mitchell Park Revitalization Project, Specification No. 2000188”.

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.

The City’s Charter under Section 804 allows the City Council to amend or supplement the budget by motion adopted by majority vote of the Council. Partial funding for this project comes from the Park Improvement Fund (Fund #519), which is specifically reserved for improvement of new and existing community parks.

DISCUSSION
On October 17, 2023, the City Council authorized staff to advertise for construction bids for the Mitchell Park Revitalization Project and authorized the City Manager to award the contract if the lowest responsible bid was below the publicly disclosed funding amount of $211,000. The project bid documents included a Base Bid and an Additive Alternative.

The project’s Base Bid includes the shade structure, benches, and bocce ball court. The project’s Additive Alternative A includes picnic tables and chess tables.

Item 5i
On November 16, 2023, four bids were received and opened (Attachment B). Quincon, Inc. (Quincon) provided the lowest responsive bid for the Base Bid and Additive Alternative A in the total amount of $397,808. Since the lowest bid amount exceeds the delegated authority provided to the City Manager by $186,808, staff is returning to Council to request authorization to award the construction contract. 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.

Bid Summary Base Bid Additive
Alternative A Total Bid
1 Engineer’s Estimate $211,000 $30,000 $241,000
2 Quincon, Inc. $333,534 $64,274 $397,808
3 RCH Construction $373,099 $61,384 $434,483
4 R. Burke Corporation $379,720 $69,816 $449,536
5 Brough Construction,
Inc. $418,100 $75,352 $493,452
The Contractor’s references, license, and registration with the Department of Industrial Relations have been verified. Staff is recommending that the Total Project Bid (Base Bid and Additive Alternate A) be awarded to Quincon (Attachment C). The picnic tables and chess tables provided in Additive Alternate A provide additional seating to support play at the bocce ball court, complete the entire scope of the designed project, and include desired improvements for the community. Funding is available to support this work within the Park Improvement Fund; therefore, it is recommended for inclusion in the contract award.

Previous Council or Advisory Body Action
On October 20, 2020, Council authorized staff to submit a project proposal for Mitchell Park Pickleball Courts to State Parks and authorized the Assistant City Manager to execute the necessary grant documents and appropriate the grant amount into the Parks and Recreation Department’s budget upon grant award (Resolution No. 11179).

On February 2, 2021, Council authorized staff to initiate project planning and design for pickleball courts at Mitchell Park and appropriated $32,048 from the Parkland-in-lieu (Quimby) Fund to support the project.

On October 19, 2021, Council authorized staff to revise the proposed improvements at Mitchell Park and remove the proposed installation of the pickleball courts.

On October 17, 2023, the City Council authorized staff to advertise for construction bids for the Mitchell Park Revitalization Project and appropriated an additional $50,000 from the Parkland-in-lieu (Quimby) Fund to support the project.

Item 5i
Public Engagement
Parks and Recreation staff conducted two public outreach events on May 19, 2021, and September 16, 2021, as well as an online survey. The majority of the public in attendance at the public engagement meetings were not in support of pickleball courts. The community has expressed a desire for passive recreational amenities and to maintain the integrity of the park for social gatherings, special events, open green areas, and community events both during the in-person forums, as well as at Parks and Recreation Commission meetings. The results of the workshops and survey demonstrated that the public is in support of the installation of chess/checker tables, bocce ball court, shade structure, and stage installation at the social gathering area. Improvements at Mitchell Park have been important for the Senior Center that is interested in having more outdoor and immediately adjacent recreational amenities.

CONCURRENCE
There is concurrence from the Community Development Department through the review and approval of the project for building permit issuance. This project also has concurrence from the Parks and Recreation Department as they have reviewed the project throughout the design process.

ENVIRONMENTAL REVIEW
The project is categorically exempt from environmental review under Section 15301 Class 1 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines because the project proposes minor changes to existing park facilities. The project is consistent with the applicable general plan policies as well as with applicable City Regulations. 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 $173,024 $0 $0
Federal
Fees
Parkland-in-lieu
Fund
$73,229 $0 $0
Park Improvement
Fund (Fund #519)
$554,907 $225,000 $329,907
Total $801,160 $225,000 $329,907

Item 5i
Mitchell Park Revitalization Project, Specification No. 2000188 Project Account
(2000188) Fund #519
Parkland Total
In-Lieu Fee
(Fund 501)
Capital
Outlay
Fund
(Grant)
Park
Improvement
Fund
Construction
(Base & Additive
Alternate)
$73,229 $173,024 $151,555 $397,808
Contingencies $0 $0 $68,000 $68,000
Material Testing $0 $0 $5,000 $5,000
Printing & Advertising $0 $0 $445 $445
Total Project Cost $73,229 $173,024 $225,000 $471,253
Available Unreserved
Fund Balance $73,229 $173,024 $554,907
Remaining Balance $0 $0 $329,907
The project account 2000188 has a current balance of $246,253 including $73,229 from the Quimby Parkland-In-Lieu Fund, which includes $50,000 appropriated to the project by Council on October 17, 2023, and $173,024 from a State Parks Grant, which has a project completion deadline of March 2024. The available fund balance and expenditures in the project account 2000188 are shown in the below table.

Parkland
In-Lieu Fee
(Fund 501)
Capital Outlay
Fund
(Grant)
Budgeted Fund $82,048 $177,952
Expended Fund
(Survey and Subsurface Exploration) $8,819 $4,928
Available Unreserved
Fund Balance $73,229 $173,024
An additional $225,000 is requested from the Park Improvement Fund (Fund #519) in order to allow project completion prior to the State Parks Grant deadline in March 2024.

The available unreserved fund balance in Fund #519 is $554,907 as shown in the below table, which is sufficient to support the additional budget request. The remaining balance of $329,907 in Fund #519 will be utilized for other city park improvement priorities.

Item 5i
Park Improvement Fund (Fund #519)
Current Park Improvement Fund
Balance $1,691,429
Orcutt Area Parks (Appropriated in
FY22/23) ($300,000)
Orcutt Area Parks (Budgeted for
FY24/25)i
($836,522)
Available Unreserved Fund Balance $554,907
Mitchell Additional Budget Request ($225,000)
Remaining Balance $329,907

ALTERNATIVES

1. The City Council could deny the request to award the total project. Staff does not recommend this alternative as the Parks and Recreation Blueprint for the Future:
2021-2041 (General Element) highlighted Mitchell Park in the Near-Term improvements as needing updated social gathering and recreational amenities for activation, as well as support the adjacent Senior Center programming. Additionally, the State Parks Grant has a project completion deadline of March 2024 and the project has been a multi-year project that has strong support from the community.

2. The City Council could choose to only award the Base Bid and deny the request to award Additive Alternative A. Removal of Additive Alternative A from contract award will reduce the budget request by $64,274 to $160,726 and lower the construction contract to $333,534. Staff does not recommend this alternative as Additive Alternative A provide additional seating to support play at the bocce ball court, complete the entire scope of the designed project, and include desired improvements for the community.

ATTACHMENTS
A - Draft Resolution authorizing use of Park Improvement Fund (Fund #519) to support Mitchell Park Revitalization Project
B - Bid Results
C - Draft Construction Agreement with Quincon, Inc.

R ______
RESOLUTION NO. _____ (2024 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING USE OF PARK IMPROVEMENT FUND (FUND #519) TO SUPPORT MITCHELL PARK REVITALIZATION PROJECT, SPECIFICATION NO. 2000188
WHEREAS, on October 20, 2020, the City Council authorized staff to submit a grant application for Prop. 68 Per Capita Funds and authorize the Assistant City Manager to execute the necessary grant documents; and
WHEREAS, staff received project approval from State Parks and has signed and executed a contract with State Parks for $177,952 in state funding for improvements at Mitchell Park; and
WHEREAS, on February 2, 2021, Council authorized staff to initiate project planning and design for pickleball courts at Mitchell Park and appropriated $32,048 from the Parkland-in-lieu (Quimby) Fund to support the project; and WHEREAS, on October 19, 2021, Council authorized staff to update the proposed improvements at Mitchell Park to include bocce ball court and amenities; and WHEREAS, on October 17, 2023, Council authorized staff to advertise project for bids and appropriated $50,000 from the Parkland-in-lieu (Quimby) Fund to support the project; and
WHEREAS, to provide sufficient funding to support construction of bocce ball court and all desired amenities, staff is recommending the City Council approve the use of an additional $225,000 from the Park Improvement Fund (Fund #519); and WHEREAS, the Park Improvement Fund (Fund #519) currently has a balance of $554,907and can support the additional funding request; and WHEREAS, the project is exempt from the California Environmental Quality Act because it consists of minor changes to existing park facilities. The project is consistent with the applicable general plan policies as well as with applicable City Regulations.

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

Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 1. The City Council authorizes allocating an additional $225,000 in Park Improvement Fund (Fund #519) for the Mitchell Park Revitalization Project.

SECTION 2. The project is exempt under the California Environmental Quality Act (CEQA) under section 15301 because it consists of minor changes to existing park facilities and is consistent with the applicable general plan policies as well as with applicable City Regulations.

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 _______________ 2024. ___________________________
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

MITCHELL PARK REVITALIZATION PROJECT, SPECIFICATION NO. 2000188 Bid Opening: 11/16/2023 UNIT TOTAL UNIT TOTAL UNIT TOTAL UNIT TOTAL No. ITEM UNIT QUAN PRICE PRICE PRICE PRICE PRICE PRICE PRICE PRICE 1 COMPLY WITH BUILDING PERMIT REQUIREMENTS LS 1 $610.50 $610.50 $11,947.55 $11,947.55 $10,000.00 $10,000.00 $1,500.00 $1,500.002 DEMOLITION AND REMOVAL OF EXISTING IMPROVEMENT LS 1 $32,600.93 $32,600.93 $29,480.23 $29,480.23 $35,800.00 $35,800.00 $30,000.00 $30,000.003 EXCAVATION AND GRADING LS 1 $52,753.68 $52,753.68 $20,580.79 $20,580.79 $39,300.00 $39,300.00 $34,000.00 $34,000.004 TREE TRIMMING LS 1 $10,803.48 $10,803.48 $10,213.95 $10,213.95 $10,000.00 $10,000.00 $6,000.00 $6,000.005 INSTALL IRRIGATION PIPING AND SPRINKLER SYSTEM LS 1 $14,912.18 $14,912.18 $23,173.05 $23,173.05 $5,200.00 $5,200.00 $26,400.00 $26,400.00 6 TURF AREA SEEDING LS 1 $3,052.52 $3,052.52 $14,035.35 $14,035.35 $8,000.00 $8,000.00 $15,000.00 $15,000.00 7 30 DAY PLANT ESTABLISHMENT PERIOD LS 1 $4,424.94 $4,424.94 $7,133.95 $7,133.95 $4,000.00 $4,000.00 $5,500.00 $5,500.008 INSTALL (N) CONCRETE WALKWAY SQFT 2400 $18.69 $44,856.00 $20.31 $48,744.00 $34.00 $81,600.00 $27.00 $64,800.00 9 INSTALL (N) RAISED STAGE EA 1 $15,152.72 $15,152.72 $21,385.55 $21,385.55 $28,100.00 $28,100.00 $19,000.00 $19,000.00 10 INSTALL FENCE LF 80 $177.05 $14,164.00 $248.19 $19,855.20 $225.00 $18,000.00 $225.00 $18,000.0011 INSTALL GATE EA 1 $1,831.51 $1,831.51 $6,135.15 $6,135.15 $3,400.00 $3,400.00 $2,500.00 $2,500.00 12 INSTALL LIGHT POST AND CONDUIT PER CITY STD. 7915 EA 4 $12,033.04 $48,132.16 $9,653.99 $38,615.96 $13,000.00 $52,000.00 $15,500.00 $62,000.0013 INSTALL LIGHT PULL BOX PER CITY STD. 7915 EA 6 $2,743.20 $16,459.20 $4,162.66 $24,975.96 $720.00 $4,320.00 $900.00 $5,400.0014 INSTALL BOCCE BALL COURT (8 FT X 45 FT) EA 1 $18,217.45 $18,217.45 $35,870.35 $35,870.35 $33,000.00 $33,000.00 $56,500.00 $56,500.00 15 INSTALL SHADE STRUCTURE (21 FT X 26 FT) EA 1 $51,709.72 $51,709.72 $53,575.95 $53,575.95 $42,500.00 $42,500.00 $67,000.00 $67,000.00 16 INSTALL 6 FT BENCH EA 1 $3,853.50 $3,853.50 $7,375.95 $7,375.95 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $333,534.49 $373,098.94 $379,720.00 $418,100.00
17 INSTALL FENCE LF 142 $177.05 $25,141.10 $180.00 $25,560.00 $185.00 $26,270.00 $200.00 $28,400.00 18 REMOVE EXISTING FENCE LF 142 $28.55 $4,054.10 $29.00 $4,118.00 $23.00 $3,266.00 $56.00 $7,952.0019 INSTALL PICNIC TABLE EA 3 $3,500.63 $10,501.89 $2,757.00 $8,271.00 $4,200.00 $12,600.00 $4,700.00 $14,100.0020 INSTALL ADA PICNIC TABLE EA 1 $5,741.18 $5,741.18 $3,428.00 $3,428.00 $4,100.00 $4,100.00 $4,800.00 $4,800.00 21 INSTALL CHESS TABLE EA 3 $4,665.07 $13,995.21 $5,247.00 $15,741.00 $5,900.00 $17,700.00 $5,300.00 $15,900.00 22 INSTALL CHESS TABLE SEAT EA 6 $806.68 $4,840.08 $711.00 $4,266.00 $980.00 $5,880.00 $700.00 $4,200.00 $64,273.56 $61,384.00 $69,816.00 $75,352.00
TOTAL PROJECT BID $397,808.05 $434,482.94 $449,536.00 $493,452.00 BASE BID
Quincon, Inc.

ADDITIVE ALTERNATE "A" BID TOTAL
R. Burke Corporation Brough Construction, Inc
BASE BID TOTAL
RCH Construction

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 QUINCON, 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

MITCHELL PARK REVITALIZATION PROJECT,
SPECIFICATION NO. 2000188
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 Unit of Estimated Item Price Total
No. Description Measure Quantity (in figures) (in figures) 1 COMPLY WITH BUILDING
PERMIT REQUIREMENTS LS 1 $610.50 $610.50
2 DEMOLITION AND REMOVAL OF
EXISTING IMPROVEMENT LS 1 $32,600.93 $32,600.93
3 EXCAVATION AND GRADING LS 1 $52,753.68 $52,753.68
4 TREE TRIMMING LS 1 $10,803.48 $10,803.48
5 INSTALL IRRIGATION PIPING
AND SPRINKLER SYSTEM LS 1 $14,912.18 $14,912.18
6 TURF AREA SEEDING LS 1 $3,052.52 $3,052.52
7 30 DAY PLANT ESTABLISHMENT
PERIOD LS 1 $4,424.94 $4,424.94
DocuSign Envelope ID: 228D0854-7667-48B5-B712-F41506511D67

8 INSTALL (N) CONCRETE
WALKWAY SQFT 2400 $18.69 $44,856.00
9 INSTALL (N) RAISED STAGE EA 1 $15,152.72 $15,152.72
10 INSTALL FENCE LF 80 $177.05 $14,164.00
11 INSTALL GATE EA 1 $1,831.51 $1,831.51
12 INSTALL LIGHT POST AND
CONDUIT PER CITY STD. 7915 EA 4 $12,033.04 $48,132.16
13 INSTALL LIGHT PULL BOX PER
CITY STD. 7915 EA 6 $2,743.20 $16,459.20
14 INSTALL BOCCE BALL COURT
(8 FT X 45 FT) EA 1 $18,217.45 $18,217.45
15 INSTALL SHADE STRUCTURE
(21 FT X 26 FT) EA 1 $51,709.72 $51,709.72
16 INSTALL 6 FT BENCH EA 1 $3,853.50 $3,853.50
Base Bid $333,534.49
17 INSTALL FENCE LF 142 $177.05 $25,141.10
18 REMOVE EXISTING FENCE LF 142 $28.55 $4,054.10
19 INSTALL PICNIC TABLE EA 3 $3,500.63 $10,501.89
20 INSTALL ADA PICNIC TABLE EA 1 $5,741.18 $5,741.18
21 INSTALL CHESS TABLE EA 3 $4,665.07 $13,995.21
22 INSTALL CHESS TABLE SEAT EA 6 $806.68 $4,840.08
Additive Alternative A $64,273.56
Total Project Bid = ( Base Bid + Additive Alternative A) $397,808.05 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
DocuSign Envelope ID: 228D0854-7667-48B5-B712-F41506511D67

6. List of Subcontractors

7. Public Contract Code Sections 10285.1 Statement

8. Public Contract Code Section 10162 Questionnaire

9. Public Contract Code Section 10232 Statement

10.Labor Code Section 1725.5 Statements

11.Bidder Acknowledgements

12.Qualifications

13.Non-collusion Declaration

14.Agreement and Bonds

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

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.

DocuSign Envelope ID: 228D0854-7667-48B5-B712-F41506511D67

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:

Quincon, Inc.
________________________________
Jose Quintana
Chief Executive Officer & Secretary
DocuSign Envelope ID: 228D0854-7667-48B5-B712-F41506511D67

Item 5j
Department: Administration
Cost Center: 5101
For Agenda of: 1/9/2024
Placement: Consent
Estimated Time: N/A
FROM: Whitney McDonald, Assistant City Manager
Prepared By: Rebecca Bernstorff, Business Services and Administrative Manager SUBJECT: AUTHORIZATION TO EXECUTE A MONTH-TO-MONTH LEASE WITH RESTORATIVE PARTNERS FOR 1166 HIGUERA STREET

RECOMMENDATION
Authorize the City Manager to execute a Month-to-Month Lease for storage and parking space at property located at 1166 Higuera Street, between the City of San Luis Obispo and Restorative Partners.

POLICY CONTEXT
The City’s Financial Management Manual, Section 475 – Real Property Acquisition & Disposal Policy, was adopted by the City Council on May 18, 2010 (Resolution No. 10175) and guides real property acquisitions. As set forth in Section C within Leases of CityOwned Buildings and Real Property, the following guidelines apply to leases of Cityowned buildings to outside parties.

Leases with Non-Profit Organizations

1. Requests for the long-term use of City property by non-profit organizations should generally follow the same review procedures as the sale or lease of City property by private for-profit entities.

2. The proposed use should be consistent with the goals and objectives of the City’s General Plan and not conflict or preclude any existing or planned City use.

3. Any development or operations directly related to the proposed use should have a clear and measurable community benefit in alignment with City goals, policies and plans.

4. Any lease agreements for the use of City property by non-profit organizations that charge a less than market rate for the City property should include a provision for community access and/or City use, or operate in close partnership in the delivery of City services.

5. Lessees will be responsible for all property related use taxes that may be assessed.

Item 5j
As it relates to guideline four above, it is important to note that the proposed lease is month to month and can be terminated by either party with 30 days notice, thus not precluding reuse of the space in the future as needed. Additionally, the space as a storage garage would not likely be usable by another tenant, resulting in the recommendation to continue the use and similar terms provided by the seller of the property that the City recently purchased. By continuing the lease, the City is minimizing disruption of services that Restorative Partners is currently providing that would otherwise be the result of the City’s purchase of the property, and that Restorative Partners provides services that benefit the community through the reduction of recidivism and its associated crime impacts.

DISCUSSION
Background
On November 14, 2023, the City Council approved the purchase of 1166 Higuera Street, a 21,607 SF parcel located on the corner of Toro Street and Higuera Street. The acquisition of this property will, in the near term, increase public parking supply via approximately 44 new paid parking spaces and two additional ADA spaces and, in the long term, facilitate greater access and economic development in the upper Monterey Street area, in conformance with the Downtown Concept Plan and City’s General Plan Land Use Element.

As of the writing of this report, escrow is on track to close by the end of December 2023.

As a part of the due diligence process, it was disclosed that there is an existing lease between 1166 Higuera Street, LLC, the property seller, for a portion of the property with Restorative Partners, with a current lease rate of one dollar ($1.00) per month. The existing month-to-month lease agreement outlines that Restorative Partners may utilize a small portion of the storage building garage on site for The Bridge Café and has the right to two (2) parking stalls. The images below depict the storage building garage space currently leased by Restorative Partners.

Item 5j
Restorative Partners provides services and programs for those in-custody and for those released from the San Luis Obispo County Juvenile Hall, Jail, Sheriff’s Honor Farm, and State Prisons. The Bridge Café creates a community for justice-involved individuals to seek employment, gain empowered education, and enter the workforce in a supported sustainable way. The leased space at 1166 Higuera provides storage space for The Bridge Café and its associated catering operations.

Item 5j
In recognition of the existing lease agreement between the seller and Restorative Partners, as well as the community benefits that this non-profit organization provides to reduce recidivism, it is recommended that the month-to-month lease arrangement be continued subject to a new form of lease with the City (Attachment A).

Proposed Lease
The proposed lease provided in Attachment A allows Restorative Partners to continue using an approximately 396 square foot area of one of the existing structures on the 1166 Higuera site for storage. Additionally, the proposed lease provides that the City will issue two parking permits to Restorative Partners for non-exclusive daily parking use within the 1166 Higuera parking lot.

The proposed lease term is on a month-to-month basis with a rate of one dollar ($1.00) per month. Under these terms, the City or Restorative Partners may terminate the lease at any time after providing 30-days’ notice. It is important to note that the City does have several leases with non-profit public benefit corporations throughout the city for $1.00/yr.

Previous Council or Advisory Body Action
City staff met with the City Council at the July 18 and October 17, 2023, Closed Sessions to seek authorization to pursue the property negotiations, and to discuss purchase and terms of payment. There was no reportable action taken at these meetings. At the November 14, 2023 City Council Meeting, the City Council approved the purchase of 1166 Higuera Street, authorized the execution of the Purchase and Sale Agreement, and approved a Resolution approving an amendment to the FY 2023-24 budget allocation for purchase and use of the property. Additionally, on December 13, 2023, the Planning Commission made a determination that the acquisition of 1166 Higuera is consistent with the City’s General Plan and approved a Conditional Use Permit to authorize the use of the property for paid public parking.

Public Engagement
City staff met with the property seller and Restorative Partners on December 5, 2023, to discuss the lease terms and their ongoing use of the property.

The community will have an opportunity to engage in public comment at the January 9, 2024, City Council meeting.

CONCURRENCE
The coordination of this report has been in partnership with Mobility Services/Public Works, City Attorney’s Office and Finance.

ENVIRONMENTAL REVIEW
Pursuant to the California Environmental Quality Act (CEQA), it can be seen with certainty that there is no possibility that the proposed lease will have any effect on the environment (General Rule Exemption CEQA Guidelines Sec. 15061(b)(3)).

Item 5j

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
The proposed lease term is on a month-to-month basis to utilize an approximate 396 square foot storage room located on the property with a rate of one dollar ($1.00) per month that Restorative Partners will pay to the City.

Additionally, it is estimated that the recommended two parking permits being provided will result in the potential loss of $2,600 in revenue annually for the intermittent loss of these two parking spaces.

ALTERNATIVES
Deny Lease Agreement. The City Council may decide to not approve this lease agreement with Restorative Partners. This action is not recommended as the City does have several leases with non-profit public benefit corporations throughout the City and encourages community partnerships whenever possible. If the lease is not approved, Restorative Partners will be required to vacate the property. As a part of the executed Purchase and Sale Agreement, the lease may be terminated within thirty (30) days.

ATTACHMENTS
A - Draft Month-to-Month Lease with Restorative Partners for 1166 Higuera Street

-1-

1. MONTH-TO-MONTH LEASE
THIS MONTH-TO-MONTH LEASE (the “Lease”) is dated as of ____________, and is entered into by and between the City of San Luis Obispo, a charter city (Landlord), and Restorative Partners (Tenant).

RECITALS
A. Landlord is the record fee owner of that certain real property located at 1166 Higuera Street and identified as San Luis Obispo County Tax Assessor’s Parcel Number 002- 436-022 described more particularly on Exhibit “A” (Property).

B. Tenant desires to use an approximate 396 square foot storage room located on the Property roughly depicted on Exhibit “B” (Leased Premises) for storage purposes as described in Section 2 below but not for storing any hazardous substances, and has asked that Landlord lease the Leased Premises on a month-to-month basis for that purpose.

C. Landlord and Tenant desire to execute and enter into this Lease for the purpose of setting forth their complete agreement with respect to Tenant’s entry upon and use of the Leased Premises.

AGREEMENT
NOW, THEREFORE, for and in consideration of the foregoing premises, the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant do hereby covenant and agree as follows:

1. Term. This Lease shall commence on _______________, 2024 and shall continue on a month-to-month basis, such that either party may terminate this Lease upon thirty (30) days’ prior written notice to the other in its sole and absolute discretion (“termination”), but Landlord may immediately terminate this Lease by written notice if Tenant breaches this Lease at any time and does not cure the breach within ten (10) days after written notice from Landlord (“earlier termination”).

2. Use. Tenant may use the Leased Premises to advance non-profit mission during the term of this Lease only for the storage of Tenant’s personal property (Permitted Use) and associated parking as described in Section 4, and for no other use or purpose. Tenant shall not and for no other use or purpose. Tenant shall not store property claimed by any third party or in which any other party has any right, title or interest. Tenant shall not store any hazardous substances, perishable goods, flammable materials, explosives, or illegal substances. Tenant shall not use the Leased Premises for residential, retail, or commercial uses at any time.

3. Keys. Tenant will be given one (1) key to the Leased Premises, which will be returned by Tenant at termination or earlier termination of the Lease.

4. Parking. Tenant shall have the right to two parking permits for daily use of the parking lot.

DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-2-

5. Acknowledgement of Tenant Regarding City’s Acquisition of Property. Tenant acknowledges that the previous owner of the Property, 1166 Higuera Street, LLC (Seller) listed the Property for sale on the open market. The Landlord purchased the Property from Seller.

Tenant hereby acknowledges that the lease between Seller and Tenant terminated when Seller sold the Property to the City. Tenant has agreed to enter into this Lease with the City of San Luis Obispo, the new Landlord. Tenant agrees and acknowledges that its right to occupancy of the Leased Premises under the terms of this Lease commenced after the City’s acquisition of the Property. As such, Tenant acknowledges and agrees that Tenant is a post-acquisition tenant under Government Code Section 7260(c)(3)(B). As such, Tenant will not be entitled to any relocation assistance or benefits under the California Relocation Law (Government Code 7260, et seq.) on the termination or earlier termination of the Lease and vacation of the Leased Premises by Tenant.

6. As-Is Condition of Leased Premises. Tenant accepts the Leased Premises in the current “AS IS” condition, without representation or warranty, express or implied, and subject to all matters of record (it being understood that Tenant may obtain a title report at Tenant’s cost).

7. Access of Leased Premises by Landlord. Landlord shall have the right to enter the Leased Premises to verify compliance with terms of this Lease. Landlord will provide reasonable notice to Tenant of its intention to enter the Leased Premises.

8. Payment, Late Payment Damages. Concurrently with its execution and delivery of this Lease to Landlord, Tenant shall pay to Landlord $1.00 and shall thereafter pay to Landlord $1.00 per month, in advance, on or before the first business day of each calendar month, without demand, offset or deduction.

9. Utilities. None. However, if applicable, Tenant shall pay for any utilities provided to the Leased Premises that are necessary for the Permitted Uses described herein.

10. Trash and Janitorial Services. None. However, if applicable, Tenant shall be responsible for providing and paying for trash removal and any janitorial services to the Leased Premises.

11. Repairs and Maintenance. Tenant, at Tenant’s sole expense, shall maintain, repair and replace the Leased Premises, and every part thereof, in good order, condition and repair in a neat and sanitary condition, free from waste or debris, all according to reasonable standards adopted from time to time by Landlord and returned to its original condition upon lease termination.

12. No Improvements or Hazardous Substances. Tenant shall not construct any improvements on the Leased Premises or any portion of the Property or bring onto or use any hazardous substances on the Leased Premises or any portion of the Property.

13. No Nuisance. Tenant agrees not to commit and not to permit to be committed any waste or nuisance on the Leased Premises or any portion of the Property. Tenant shall not create or permit the interference with the comfort, safety, or enjoyment of the Property by Landlord, and any occupants, guests or invitees on the Property.

DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-3-

14. Removal of Personal Property. Upon the expiration or earlier termination of this Lease, Tenant shall remove all of its personal property from the Leased Premises and restore the Leased Premises to its condition as of the date hereof. If any personal property is left in the Leased Premises, then it may be disposed of or retained by Landlord, without liability to Tenant, and TENANT HEREBY WAIVES ANY AND ALL LAWS AND STATUTES TO THE CONTRARY.

15. Damage; Indemnity. Tenant expressly agrees that: (i) all activities by or on behalf of Tenant, including, without limitation, the entry by Tenant or Tenant’s officers, members, employees, agents, customers, guests or contractors (collectively, “Tenant’s Designees”) on the Leased Premises, shall not damage the Leased Premises or any portion of the Property in any manner whatsoever, (ii) in the event the Leased Premises or any portion of the Property is damaged, altered or disturbed in any manner, Tenant shall return the Leased Premises and such portion of the Property to the condition existing prior to the terms, and (iii) Tenant, to the fullest extent allowed by law, shall indemnify, defend and hold harmless Landlord, its city council members, officers, officials, employees and agents from and against any and all claims, liabilities, damages, losses, costs and expenses of any kind or nature whatsoever, including, without limitation, attorneys’ fees and expenses and court costs suffered, incurred or sustained by Landlord as a result of, by reason of, or in connection with any act by Tenant or Tenant’s Designees (including, without limitation mechanics liens) and the use and possession of the Leased Premises. The obligations of Tenant contained herein shall survive the expiration or earlier termination of this Lease.

16. Insurance. Tenant is solely responsible for insuring the Leased Premises and obtaining any applicable insurance for Tenant’s personal property stored in the Leased Premises.

Landlord shall not be liable to Tenant under any circumstances for damages or loss to Tenant’s property, injury to persons or property, or consequential damages resulting from Tenant’s use or lease of the Leased Premises. Without limiting Tenant’s indemnification of Landlord, Tenant shall obtain, provide, and maintain at its own expense during the term of this Lease, policies of insurance of the types and amounts described in Exhibit “C” (Insurance) and in a form that is satisfactory to City.

17. Recording. In no event shall this Lease or any memorandum hereof be recorded.

18. Notices. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be delivered by certified mail, return receipt requested, or reputable overnight delivery service, and shall be deemed given: (i) if sent by certified mail, then as of the date of delivery or inability to deliver/refusal to accept shown on the return receipt; or (ii) if delivered by messenger for next business day delivery, then on the next business day unless otherwise shown by the records of the delivery service, in which case those records shall govern.

If to Landlord, to: City of San Luis Obispo Parking
1260 Chorro Street, Suite B
San Luis Obispo, California 93401
DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-4-
If to Tenant, to: Restorative Partners
1144 Higuera Street
San Luis Obispo, California 93401

21. Assignment and Subletting. This Lease may not be assigned by Tenant, in whole or in part, nor may Tenant sublet any portion of the Leased Premises.

22. Governing Law. This Lease shall be construed, enforced and interpreted in accordance with the laws of the State of California.

23. Counterparts. This Lease may be executed in counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. Furthermore, executed counterparts of this Lease may be delivered by emails of pdf documents, and such electronic transmissions shall be valid and binding for all purposes when transmitted to and actually received by the other party.

24. Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor.

25. Prior Agreements. This Lease contains the entire agreement of the parties hereto with respect to the subject matter hereof.

26. Partial Invalidity. Any provision of this Lease which shall prove to be invalid, void, or illegal shall in no way affect, impair or invalidate any other provision hereof and such other provision shall remain in full force and effect.

27. POSSESSORY INTEREST TAX. TENANT RECOGNIZES AND

UNDERSTANDS THAT THIS LEASE MAY CREATE A POSSESSORY INTEREST THAT IS SUBJECT TO TAXES LEVIED UPON SUCH INTEREST. TENANT IS RESPONSIBLE

FOR OBTAINING ALL RELEVANT INFORMATION REGARDING THE POSSESSORY INTEREST TAX AND PAYMENT OF ALL SUCH TAXES.

DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-5-
IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first written above.

TENANT:

RESTORATIVE PARNTERS
By:

Print Name:

Title:

By:

Print Name:

Title:

LANDLORD:

CITY OF SAN LUIS OBISPO
By:

Derek Johnson, City Manager
DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96 12/20/2023 | 11:18 AM PST
Sister Theresa Harpin
Executive Director

-1-
EXHIBIT “A”

DESCRIPTION OF PROPERTY
DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-2-
EXHIBIT “B”

DEPICTION OF LEASED PREMISES
DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-3-
EXHIBIT “C”

INSURANCE REQUIREMENTS
General liability insurance. Tenants shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Umbrella or excess liability insurance. [If required to meet higher limits]. Tenant may obtain and maintain an umbrella liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason, other than bankruptcy or insolvency of said primary insurer;
• “Pay on behalf of” wording as opposed to “reimbursement”; • Concurrency of effective dates with primary policies.

Excess insurance. Should Tenant obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability, and employer’s liability policies. Such policy or policies shall include wording that the excess liability policy follows the terms and conditions of the underlying policies.

Notice of cancellation. Tenant agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

If any of the Tenant’s insurers are unwilling to provide such notice, then Tenant shall have the responsibility of notifying the City immediately in the event of Tenant’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal.

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

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

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

DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

-4-
City’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Tenant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Tenant, the City and Tenant may renegotiate Tenant’s compensation.

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

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

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

Verification of Coverage. Tenant shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage, as well as endorsements effecting general liability coverage. All endorsements are to be received and approved by the City prior to occupation of the property.

DocuSign Envelope ID: D6FADD58-C442-4619-A625-06353C4F0D96

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 9, 2024
TO: Mayor and Council
FROM: Timothea Tway, Community Development Director
Prepared by: Teresa McClish, Housing Program and Policy Manager VIA: Derek Johnson, City Manager
SUBJECT: Item 5k – Reallocation of Affordable Housing Funds to HASLO Maxine Lewis Project
Staff received the following questions from a Councilmember regarding the history and total amount of funding allocations for the Housing Authority of San Luis Obispo’s Maxine Lewis Apartments located at 736 Orcutt Road. The questions are summarized below with staff’s response shown in italics:
1) Considering the two sections of the staff report as shown below, clarify the total funding amounts for the Maxine Lewis Project for previous and proposed SLFRF, ARPA and CDBG funding allocations:

In June 2022, the City Council authorized a one-time use of American Rescue Plan Act State and Local Fiscal Recovery Funds (SLFRF) by allocating $2,964,467 into the Affordable Housing Fund in the 2022-2023 Supplemental Budget to support at-risk populations via affordable housing fund awards to be made at the City Council’s sole discretion1. In April 2022, an AHF award of $1.7 million was made to HASLO for the Anderson Hotel and $300,000 was awarded to Transitions Mental Health Association (THMA) for the Palm Street Studios2. In April 2023, $964,467 of SLFRF funds were allocated to the Maxine Lewis Apartment Project as part of a total $2 million award from the Affordable Housing Fund ($1,035,533 AHF + $964,467 SLFRF=$2 million)3.

AND
Previous Council or Advisory Body Action
The Council approved Affordable Housing Fund award criteria in 2001 and funding investment allocations specific for SLFRF in 2022, as discussed above in the

1 Resolution No. 11333 approving the allocation of $13,564,467 in Sate and Local Fiscal Recovery Funds in Accordance with the U.S. Treasury Final Rule
2 Resolution 11321 approving affordable housing fund awards to HASLO for the Anderson Hotel and THMA for the Palm Street Studios
3 Resolution 11411 approving affordable housing fund awards to HASLO for the 736 Orcutt Rd. Project and the 279 Bridge Street Family Apartment Project

Item 5k – Reallocation of Affordable Housing Funds to HASLO Maxine Lewis Project Page 2 Background section. The project helps implement programs in the 6th Cycle Housing Element, approved by City Council on November 17, 2020, and the Homelessness Strategic Plan on March 21, 2023. The Human Relations Commission recommended CDBG funding in the amount of $317,792 for the project on December 7, 2022 and the City Council approved the recommended CDBG funds for the Project on January 17, 2023. Affordable Housing Funds in the amount of $2 million were awarded to the project on April 18, 2023.

The America Rescue Plan Act of 2021 (ARPA) authorized funds through the Coronavirus State and Local Fiscal Recovery Funds Program (SLFRF). The City Council authorized some of the funding received through the ARPA/SLFRF program to be placed into the City’s Affordable Housing Fund (AHF). On April 18, 2023, the City Council awarded $964,467 of ARPA/SLFRF funds from the AHF in addition to $1,035,533 of non-ARPA/SLFRF funds from the AHF to the Maxine Lewis project, for a total of $2M from the AHF.

Additionally, on January 17, 2023, the City, through the federal Housing and Community Development’s Community Development Block Grant program, awarded $317,792 for the Maxine Lewis Apartment project.

Therefore, The total previous funding is $2,317,792 for the Maxine Lewis Apartment project.

Proposed, is the reallocation of $300k from the AHF previously awarded to the Transition Mental Health Association’s (THMA) Palm Street Studio project that were also ARPA/SLFRF funds.

If approved, the total funds awarded from the City for the Maxine Lewis Project would total $2,617,792 from the following sources:
 $2.3M from the City’s Affordable Housing Fund including:
o $1,035,533 non-ARPA/SLFRF funds
o $1,264,467 ARPA/SLFRF funds ($964,467 + $300,000)
o $2,300,000
 $317,792 from CDBG

2) Is there a typo under Public Engagement? Should the date be January 9, 2024.

Yes, the correct date should be January 9, 2024.

Item 5k
Department: Community Development
Cost Center: 4008
For Agenda of: 1/9/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Teresa McClish, Housing Policy and Programs Manager SUBJECT: REALLOCATION OF AFFORDABLE HOUSING FUNDS FROM

TRANSITIONS MENTAL HEALTH ASSOCIATION (THMA) PALM STREET

STUDIOS TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO
(HASLO) MAXINE LEWIS APARTMENTS AT 736 ORCUTT ROAD

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending Resolution No. 11321 (2022 Series) and Resolution No. 11411 (2023 Series) to re-allocate State and Local Fiscal Recovery Funds within the Affordable Housing Fund from Transitions Mental Health Association for the Palm Street Studios Project to the Housing Authority of San Luis Obispo for the Maxine Lewis Apartment Project in the amount of $300,000, and designate the Palm Street Studios Project as having first priority for future consideration of affordable housing fund awards” as follows:

1. Reappropriate the allocation of Affordable Housing Funds in the amount of $300,000 previously approved by City Council adoption of Resolution No. 11321 (2022 Series) for the property acquisition and rehabilitation of 8 supportive housing apartments that will be dedicated to low-income persons, located at 1118 Palm Street; and

2. Increase the allocation of Affordable Housing Funds in the amount of $300,000 to augment the previously awarded Affordable Housing Funds allocated in the amount of $2,000,000 (that included State and Local Fiscal Recovery Funds in the amount of $964,467) by City Council adoption of Resolution No. 11411 (2023 Series) for the rehabilitation and construction of the Maxine Lewis Apartment Project (previously named the 736 Orcutt Road Apartment Project) located at 736 Orcutt Road; and

3. Designate the Palm Street Studios Project as having priority for future consideration of Affordable Housing Fund awards; and

4. Authorize City Staff to apply for up to $750,000 in affordable housing funds through the Prohousing Incentive Fund program once the City receives final confirmation of eligibility and designation as a “Pro-Housing City” to backfill funding for 1118 Palm Street.

Item 5k

REPORT-IN-BRIEF
HASLO is requesting an additional Affordable Housing Fund award of $300,000 to supplement their previous award of $2 million for the Maxine Lewis Apartment Project This request is being made in order to modify the project’s financial portfolio due to an unforeseen funding gap, better leverage other funds, and close escrow for the project on January 22, 2024. HASLO has indicated that the $300,000 request is being made because this gap amount is critical to allow the project to move forward. The $300,000 that staff has identified for allocation to HASLO project was previously allocated using State and Local Fiscal Recovery Funds (SLFRF) within the Affordable Housing Fund for a THMA project on Palm Street; however, the funding for this project is not needed by THMA at this time. THMA is in support of allowing the $300,000 to be reallocated to the Maxine Lewis Apartment Project, and request that in doing so they will be considered as first priority to receive consideration of future funding award when funds become available, assuming the Palm Stret Studios project meets AHF award criteria at the time of consideration.

POLICY CONTEXT
Housing and Homelessness is a Major City Goal to expand housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing. This includes the collaboration with local non-profit partners and the county, the state, and federal governments to discover and implement comprehensive and effective strategies to reduce chronic homelessness.

The City of San Luis Obispo 6th Cycle Housing Element includes Safety as Goal 1, and Program 1.7 states “Continue to support local and regional solutions to homelessness by funding supportive programs services and housing solutions.” Additionally, providing financial assistance to affordable housing projects is a theme supported throughout the Housing Element. Housing Element Goal 2 is Affordability, which specifically states “Accommodate affordable housing production that helps meet the City’s quantified objectives.” HE Program 2.9 states “Assist with the issuance of tax exempt bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve at least 20 affordable units annually through various programs.” Goal 3 in the Housing Element is to conserve existing housing and prevent the loss of safe housing and the displacement of current occupants, and includes Policies 3.3, 3.5 and Program 3.9 respectively that state:

1. “Encourage the construction, preservation, rehabilitation or expansion of residential hotels, group homes, integrated community apartments, and singleroom occupancy dwellings;”

Item 5k

2. “Encourage and support creative strategies for the rehabilitation and adaptation and reuse of residential, commercial, and industrial structures for housing;” and

3. “Work annually with non-profit organizations, faith-based organizations, or the Housing Authority of the City of San Luis Obispo to encourage rehabilitation of residential, commercial, or industrial buildings to expand extremely low, very-low, low or moderate-income rental housing opportunities.”
HASLO’s request for additional funding would enable the Maxine Lewis Apartment Project to move forward and conserve and increase housing options available for low-income persons experiencing homelessness, or at risk for homelessness. As such, it is consistent with the policy basis identified when allocated the SLFRF within the Affordable Housing Fund in April 2023, and remains in alignment with these goals and programs, as discussed below in more detail.

DISCUSSION
Background
The City’s Affordable Housing Fund (AHF) receives funding from residential developers to meet the City’s Inclusionary Housing Ordinance (IHO) requirements “in-lieu” of providing actual affordable housing units within their projects. The fund also receives funding from commercial developers through commercial linkage fees.

In June 2022, the City Council authorized a one-time use of American Rescue Plan Act State and Local Fiscal Recovery Funds (SLFRF) by allocating $2,964,467 into the Affordable Housing Fund in the 2022-2023 Supplemental Budget to support at-risk populations via affordable housing fund awards to be made at the City Council’s sole discretion1. In April 2022, an AHF award of $1.7 million was made to HASLO for the Anderson Hotel and $300,000 was awarded to Transitions Mental Health Association (THMA) for the Palm Street Studios2. In April 2023, $964,467 of SLFRF funds were allocated to the Maxine Lewis Apartment Project as part of a total $2 million award from the Affordable Housing Fund ($1,035,533 AHF + $964,467 SLFRF=$2 million)3.

Requests for AHF support are evaluated by staff and forwarded to the City Council for consideration and action based on Council established and adopted award criteria, as set forth in Resolution No. 9263 (2001 Series).

Overview of Requests
The Maxine Lewis Apartment Project includes the rehabilitation and construction of a 40- unit residential project – 39-units for low-income households and an exempt manager’s unit, at the former Maxine Lewis Homeless Shelter site. The property was previously

1 Resolution No. 11333 approving the allocation of $13,564,467 in Sate and Local Fiscal Recovery Funds in Accordance with the U.S. Treasury Final Rule
2 Resolution 11321 approving affordable housing fund awards to HASLO for the Anderson Hotel and THMA for the Palm Street Studios
3 Resolution 11411 approving affordable housing fund awards to HASLO for the 736 Orcutt Rd. Project and the 279 Bridge Street Family Apartment Project

Item 5k
used to provide 49 shelter beds to serve unhoused community members prior to the construction of the Homeless Services Center, located at 40 Prado. The Maxine Lewis Apartment project was entitled by the City on August 24, 2022, and will serve those experiencing homelessness, or at risk for homelessness.

In addition to funding commitments from the City, the Maxine Lewis Apartment Project received financing commitments from the Housing Trust Fund, the County of San Luis Obispo, and HASLO. The Maxine Lewis Apartment Project successfully competed and received a tax credit award valued at over $10.3 million.

HASLO has indicated that they have a funding gap of $3.2 million for the Maxine Lewis Project due several factors. First, there is a loss or delay of City and County Community Development Block Grant (CDBG) funds totaling $937,086 that is unlikely to be resolved ahead of escrow closing date. The potential issue with an interpretation that CDBG funds cannot be used for this project has recently come to light, and more information can be found in Attachment C, a letter from Congressman Carbajal to Secretary Fudge asking the Secretary and The Department of Housing and Urban Development to look into the issue. On December 18, 2023, HUD responded to Congressman Carbajal with a path forward for the use of CDBG funds to be used to provide financing for the acquisition structure needed for the project (Attachment D). This is good news for the project but will not completely resolve the funding shortfall for the project. Secondly, as with many affordable housing projects, the project is impacted by interest rates that have increased from 7.1% to 8.40%, and construction costs that increased by $1,417,655 mainly due to changes in Federal Prevailing Wage Schedule updates. Additionally, tax credit pricing decreased significantly, reducing tax credit equity by over $500,000, attributed in part to bank failures in 2023.

In order to address the funding gap, HASLO is requesting additional funding assistance in the amount of $300,000 from the City as a financial component that complements additional financial commitment by HASLO of $981,000 in delayed developer fees. In addition, it is staff’s understanding that HASLO will also be requesting that SLO County commit to reallocating $1.94 million in SLFRF funds from another HASLO affordable housing project outside the City that did not receive tax credit financing, to the Maxine Lewis project4.

The Maxine Lewis Project is considered “shovel ready” but must close on all financing sources no later than January 22, 2024, so they may begin construction. Otherwise, the tax credit award is forfeited. If that were to occur, HASLO could be assessed negative points for two years on future tax credit applications because of the inability to close on pledged credits that lose value and could have been otherwise allocated to other projects. If negative points were assessed, it would mean that HASLO would not be able to apply for tax credits for two years. This could also harm joint venture HASLO projects.

4 HASLO staff anticipate the Board of Supervisors will consider this request at its January 9, 2024 meeting.

Item 5k
TMHA’s Palm Street Studios received an Affordable Housing Award of $300,000 from the City Council on April 19, 2022, for the acquisition and rehabilitation of a structure to convert to six supportive housing apartments, add two separate one-bedroom accessory dwelling units, and one small office. The source of the City’s $300,000 was American Recovery Program Act (ARPA), funding.

The project is utilizing funding from the No Place Like Home grant and the San Luis Obispo’s Housing NOW program that THMA launched in 2014 (initially called 50Now) with HASLO to identify the 50 most vulnerable homeless individuals in the County and place them in permanent housing and provide them with behavioral health treatment and services. The property will be deed - restricted affordable for a minimum of 55 years, available to TMHA clients who are low income. The project is impacted by similar significant circumstances of inflation and construction costs increases and is delayed from the original anticipated schedule. However, the project is expected to proceed in 2024 and THMA has generously agreed to support the reallocation of the previously awarded $300,000 to the Maxine Lewis Apartment Project with the expectation to return to the City Council in 2024 to request the allocation again, with potential for additional funds if necessary, when and if additional City Affordable Housing Funds are available (Attachment E). The Draft Resolution proposed for Council’s consideration includes a provision that THMA’s Palm Street Studio Project would be first priority to receive consideration of Affordable Housing Funds when available and the resolution authorize Staff to apply for up to $750,000 in funding once HCD finalizes its designation of the City as a “pro-housing city”.

The City’s AHF award to the Palm Streets Studios project was part of the City’s obligation of American Rescue Plan Act (ARPA)5funds, which must be obligated by December 31, 2024, and spent by December 31, 2026. Obligating those ARPA funds to HASLO now for the 786 Maxine Project, which is “shovel ready” as discussed above, will help the City remain in compliance with ARPA requirements in the event that the Palm Street Studios project cannot meet those deadlines.

City Affordable Housing Fund and Prohousing Designation Status There are no available funds in the City’s Affordable Housing Fund for additional award allocations at this time. Revenues are dependent on building activity for new homes and commercial space for which in-lieu fees and commercial linkage fees are collected as well as any additional fund, such as SLFRF funds or other grant funds that may augment the account balance. An opportunity identified for additional funds to support affordable housing projects is the anticipated award of Prohousing Incentive Grant Funds. The City of SLO has applied for the State’s Housing and Community Development’s (HCD) Prohousing Designation Program6. HCD has confirmed that the City has been awarded 50 points under the program, and it appears that the City will receive Prohousing designation (although the official announcement has not been made).

5 Further discussion of this funding source is provided below under Fiscal Analysis. 6 Notification of Prohousing Designation expected by December 22, 2023 per correspondence with HCD staff.

Item 5k
HCD has not yet released the Notice of Funding Availability (NOFA) for the Prohousing Incentive Pilot Program, however, almost $26 million of available funding was allocated to eligible Prohousing Designated communities in 2022. HCD staff have indicated that the next NOFA is expected to be released in the new year. Based on the formula for awards in the current Prohousing Incentive Program, including City population, regional and point total, it would be expected the City will qualify for $750,000 in funds eligible to be used to support affordable housing projects such as the Palm Street Studios project7. Once the 2023 NOFA is announced for the PIP Program, the City of SLO will be applying for the maximum funding available and authority is requested in this report to allow for application.

Award Criteria
The previous award for the Maxine Lewis Apartment Project in April 2023, was based upon a recommendation to the City Council using adopted criteria in accordance with Resolution No. 9263 (2001 Series) for the Affordable Housing Fund program including eligibility, need, suitability, timing, financial effectiveness, and readiness. The requested increase in funds for the project still aligns with the criteria consistent with the previous award (Resolution 11411). It should be noted that the project has adhered to the timeline previously specified and building permits have been issued.

Previous Council or Advisory Body Action
The Council approved Affordable Housing Fund award criteria in 2001 and funding investment allocations specific for SLFRF in 2022, as discussed above in the Background section. The project helps implement programs in the 6th Cycle Housing Element, approved by City Council on November 17, 2020, and the Homelessness Strategic Plan on March 21, 2023. The Human Relations Commission recommended CDBG funding in the amount of $317,792 for the project on December 7, 2022 and the City Council approved the recommended CDBG funds for the Project on January 17, 2023. Affordable Housing Funds in the amount of $2 million were awarded to the project on April 18, 2023.

Public Engagement
This item is on the agenda for the April 18, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

CONCURRENCE
The Finance Department concurs with the Affordable Housing Fund balance.

7 According to the 2022 NOFA Guidelines for the PIP Program, the base award amounts were based on population estimates, were a community of less than 50,000 people would be award $250,000. However, bonus awards are also provided based on the Prohousing Designation score, multiplied by 10,000. In accordance with the 2022 NOFA Guidelines, the City of SLO would be awarded up to $750,000 under the PIP Program.

Item 5k

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

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other: AHF 0 0 (201,810.02)
Total $ $ $ $
Although the cash balance in the Affordable Housing Fund is $3,426,243.12, the fund balance is currently in deficit by $201,810.02 given total funding and transfer commitments and anticipated expenditures, and therefore, new funding allocations are on hold.

Due to expected timing of revenues and expenditures, however, it is anticipated current funding commitments, as shown below, are secure. The requested reallocation of $300,000 from the Palm Street Studios Project to the Maxine Lewis Apartment Project does not impact the Affordable Housing Fund Balance.

Cash Balance – Commitments
Beginning Cash Balance $3,426,243.12
Current Year Revenues $478,946.86
Current Year Expenses ($103,500)
Annual Transfers commitments ($103,500)
Affordable Housing Project Commitments
Palm Street Studios (THMA) ($300,000)
Maxine Lewis Apartments (Orcutt Road
Apartments) (HASLO)
($2,000,000)
Calle Joaquin Homekey (PSHH/HASLO) ($400,000)
Bridge Street (HASLO) ($1,200,000)
Available Funds for Future Allocations ($201,810.02)

Item 5k
The Affordable Housing Fund receives revenue from in-lieu fees, commercial linkage fees, investment income, loan repayments, and one-time revenues from grants or programs such as the SLFRF. Annual expenditures include our contracted Below Market Rate Housing Administrator, Housekeys, ($150,000), and funds to the Housing Trust Fund ($40,000) and Finance Department ($17,000) paid out quarterly. Funds in the amount of $92,457.40, will be reimbursed into the Affordable Housing Fund to cover a portion go the costs for the Below Market Rate Administrator contract services through remaining funds available in the City’s REAP grant awarded through HCD. Future revenue of approximately $750,000 is anticipated through the State Prohousing Incentive Program in 2024, and the City expects several larger projects to contribute to the Fund through linkage and in-lieu fees in 2024.

City funding for the 40-unit Maxine Lewis Apartment Project significantly assists in leveraging additional funding to complete the project. It is anticipated that the additional award of $300,000 will bring the City’s total project investment to $2,300,000, which would equate to $57,500 per unit if the recommended request is approved, which is slightly higher than previous awards.

The Affordable Housing Fund has been augmented with funding through the congressional American Rescue Plan Act (ARPA) that approved $350 billion for state, local, territorial, and Tribal governments in the form of the Coronavirus SLFRF, to provide economic stimulus funding to the City of San Luis Obispo to reimburse lost revenue and help support economic recovery efforts through a total of $13.5 million authorized and programmed into the 2021-2023 financial plan. At the February 15, 2022, City Council meeting, the Council directed staff to prioritize a portion of ARPA funding towards housing and homelessness, and at the June 7, 2022 City Council meeting, the Council invested a total of $2,964,467 toward affordable housing.

The funding was allocated in the 2022-2023 Supplemental Budget for at-risk populations or extremely low and very low-income and/or homeless persons most impacted by COVID-19. Funds were placed into the City’s Affordable Housing Fund awaiting appropriation via an affordable housing fund award, to be made at the City Council’s sole discretion. An AHF award for $2 million was made in April 2022 to HASLO for the Anderson Hotel ($1.7M) and Transitions Mental Health Association for the Palm Street Studios ($300k). In April 2023, remaining SLFRF funds within the Affordable Housing Fund totaling $964,467 were awarded to HASLO’s Maxine Lewis Project. Reallocating $300,000 from the Palm Street Studios Project to the Maxine Lewis project will not impact the total SLFRF award balance and will ensure timely expenditure of these funds, in line with ARPA requirements. Staff is confident that through additional revenues and grants that the Affordable Housing Fund will have sufficient funds to meet its commitments and that the projected case deficit will be short term.

Item 5k

ALTERNATIVES

1. Council could decide not to authorize the reallocation of $300,000 in Affordable Housing Award to the Maxine Lewis Apartment Project. This action is not recommended because the project directly aligns with the Major City Goal for Housing and homelessness and is consistent with the Housing Element of the General Plan and the City’s Homelessness Response Strategic Plan. This action could also have impacts on the ability of HASLO to complete other housing projects.

2. Council could decide to approve Affordable Housing Fund award for a different amount. This is not recommended as a larger amount is not available in the Affordable Housing Fund, and a smaller amount would not improve close the project’s finance gap enough for the project to move forward.

3. Council could decide to allocate General Fund dollars to the project. This is not recommended due to potential impacts to the fund and consideration of other City budgeted priorities.

4. Council could decide to continue consideration of the proposed reallocation.

This is not recommended as the Maxine Lewis Apartment Project is expected to close escrow and begin construction by January 22, 2024, or it will not be built due to timing of financing constraints.

ATTACHMENTS
A - Draft Resolution approving funding for the Maxine Lewis Apartment Project B - Request from HASLO for additional funds for the Maxine Lewis Apartment Project.

C - August 15, 2023 letter from Congressman Carbajal to Secretary Fudge regarding CDBG eligibility criteria applied to HASLO Maxine Lewis project.

D - December 18, 2023 response letter from US Department of Housing and Urban Development to Congressman Carbajal.

E - Email correspondence from THMA supporting the reallocation of funds to support Maxine Lewis Apartments.

R _____
RESOLUTION NO. _______ (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING RESOLUTION NO. 11321 (2022 SERIES) AND RESOLUTION NO. 11411 (2023 SERIES) TO REALLOCATE STATE AND LOCAL FISCAL RECOVERY FUNDS WITHIN

THE AFFORDABLE HOUSING FUND FROM TRANSITIONS MENTAL

HEALTH ASSOCIATION FOR THE PALM STREET STUDIOS PROJECT

TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO FOR THE
MAXINE LEWIS APARTMENT PROJECT IN THE AMOUNT OF $300,000,

AND DESIGNATE THE PALM STREET STUDIOS PROJECT AS HAVING

FIRST PRIORITY FOR FUTURE CONSIDERATION OF AFFORDABLE

HOUSING FUND AWARDS
WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 19, 2022, approving Resolution No. 11321 (2022 Series) for affordable housing fund (AHF) assistance for the proposed project, Palm Street Studios by Transitions Mental Health Association (TMHA), in accordance with the eligibility criteria established by the City Council in Resolution No. 9263 (2001 Series); and
WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 18, 2023, approving Resolution No. 11411 (2023 Series) for AHF assistance for the proposed project, 736 Orcutt Road Apartments (now called the Maxine Lewis Apartment Project), by The Housing Authority of San Luis Obispo (HASLO), in accordance with the eligibility criteria established by the City Council in Resolution No. 9263 (2001 Series); and WHEREAS, the Maxine Lewis Apartment Project (previously known as ‘736 Orcutt Road Apartments’) by The Housing Authority of San Luis Obispo (HASLO) has requested additional AHF awards in the amount of $300,000, and the request meets the eligibility criteria established by the City Council in Resolution No. 9263 (2001 Series); and WHEREAS, the proposed project Palm Street Studios by Transitions Mental Health Association (TMHA), has incurred unforeseen project delays due to unanticipated financial circumstances due to outside factors, and supports the reallocation of previously awarded funds in the amount of $300,000 to the HASLO Maxine Lewis Apartment Project and requests designation of the Palm Street Studios Project as having first priority for future consideration of City AHF awards as funds become available; and WHEREAS, Housing Element policies and programs encourage and support the preservation and rehabilitation of affordable housing in the City; and

Resolution No. _____ (2024 Series) Page 2
R _____
WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff at the said meeting.

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

SECTION 1. Findings. The City Council does hereby make the following findings in support of the proposed AHF awards:

1. Eligibility: Use of the AHF for the requested purposes will increase or improve the City's affordable housing inventory and promote General Plan policies regarding housing, as follows:

The Maxine Lewis Apartment Project is eligible for Affordable Housing Funds because it improves and preserves the City's affordable housing inventory and implements several General Plan policies regarding housing. The project will preserve the supply of affordable housing for extremely low, very low, and low-income households with the construction of 40 units.

2. Need: There exists a substantial or overarching need for the types of units to be assisted, as follows:

Below Market Rate housing is a critical need in the City and County of San Luis Obispo. Rapidly rising rents have increased the financial burden on lowincome people and the median rental household in the County spends 38% of its income on housing. The City’s 6th Cycle Housing Element, adopted in 2020, documents substantial unmet need. HASLO will use its affiliate nonprofit, San Luis Obispo Non-Profit Housing Corporation, as managing general partner in the Limited Partnership ownership entity formed for purposes of the LIHTC program. As property management agent, HASLO coordinates with area non-profit service providers to accept homeless and other special high need referrals and provides resident and supportive services.

3. Suitability: The projects to be assisted are appropriate for its location both in terms of land use and design, as follows:

The Maxine Lewis Apartment Project is located 2.5 miles to County Services and 1.7 miles to downtown SLO; 1,200 feet from the railroad safety trail, which conveniently and safely connects pedestrians quickly to downtown; and less than 3/4 of a mile away from a grocery store that offers fresh produce, meat, and other staples.

Resolution No. _____ (2024 Series) Page 3
R _____

4. Timing: The project would better serve the City's needs if it was built immediately as opposed to later, as follows:

The Maxine Lewis Apartment Project, has site control, building permits and state tax credit award financing. If the project is not awarded funding now, it may not be constructed, and HASLO may be unable to apply for state tax credit financing for two-years in penalty. This would impact HASLO projects countywide. The provision of below market rate rental housing units will advance the City Major City Goal for Housing and Homelessness; implement the City’s Homelessness Response Strategic Plan; and make progress on state Regional Housing Needs Allocations (“RHNA”) for housing affordable to residents or families in low or extremely low-income categories. The funding request is for low- and below-income levels reducing the City’s current remaining RHNA for these categories from 331 to 291 units.

5. Financial Effectiveness: But for the requested funding, the project would not be economically feasible; or AHF funding "leverages" significant additional funding from other sources, as follows:

Even with an increase in funding request, the project offers a highly effective use of the City AHF. Funding for the Maxine Lewis Apartment Project would constitute 10.2% of project funding. The project leverages Housing Trust Fund ($1,000,000), County and City funds ($420,541) and low-income housing tax credits ($11.7 million).

6. Readiness: The project has all necessary City approvals and is ready to proceed, as follows:

The Maxine Lewis Apartment Project does not need to obtain any further City discretionary approvals, building permits are issued, and the project has received tax credit financing award from the State.

SECTION 2. Environmental Determination. The project to award affordable housing funds is exempt from environmental review per the California Environmental Quality Act as it does not apply to the recommended actions in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

SECTION 3. Amend Resolution No. 11321 (2022 Series) to defund the AHF Award for Transitions Mental Health Association (TMHA) for the Palm Street Studio Project in the amount of $300,000; and

Resolution No. _____ (2024 Series) Page 4
R _____
SECTION 4. Amend Resolution No. 11411 (2023 Series) to increase the AHF Award to The Housing Authority of San Luis Obispo (HASLO) by an amount not to exceed $300,000, for the Maxine Lewis Apartment Project located at 736 Orcutt Road, subject to the following condition of approval:

1. Prior to release of any portion of the AHF award, the applicants shall enter into an affordability agreement with the City.
 For HASLO’s Maxine Lewis Apartment Project, it shall be for forty (40) forrent affordable housing units located at 736 Orcutt Road, for a term of fiftyfive (55) years, which will be recorded against the title of the property.

Resolution No. _____ (2024 Series) Page 5
R _____
SECTION 5. Place the Transitions Mental Health Association’s (THMA) Palm Street Studios Project as the first priority for future Affordable Housing Fund award considerations as funds become available, on the condition that the Palm Street Studios Project meets AHF award criteria at the time of funding consideration.

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 _______________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
____________________________
Teresa Purrington,
City Clerk
APPROVED AS TO FORM:
____________________________
J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington,
City Clerk

1 McClish, Teresa
From: Scott Collins <[email protected]>
Sent: Thursday, December 14, 2023 12:46 PM
To: Tway, Timothea (Timmi)
Subject: Maxine Lewis Project - Funding Request
Follow Up Flag: Follow up
Flag Status: Flagged
This message is from an External Source. Use caution when deciding to open attachments, click links, or respond.

Good AŌernoon, Timmi,
The Housing Authority of the City of San Luis Obispo (HASLO) faces a $3.2 million gap for the Maxine Lewis project, a 100% affordable housing project that is aimed at providing permanent housing to individuals facing homelessness or at risk of becoming homeless within our community. The financial gap results from rising construcƟon costs and interest rates, loss of anƟcipated CDBG funds, and reduced tax credit value. In order to close the gap enƟrely, HASLO is requesƟng $300,000 from the City of San Luis Obispo ahead of the January 22, 2024, closing on the project. HASLO is using other local sources of funding to make up the remaining difference (HASLO - $981,000 in delayed developer fees, and SLO County - $1,946,000 in County ARPA funds). While this City of San Luis Obispo contribuƟon of $300,000 will make the project financially viable, HASLO is requesƟng funds above the $300,000 to shore up our project conƟngency, in case we experience unforeseen challenges with construcƟon.

We greatly appreciate the City’s consideraƟon of this request and on-going support for the Maxine Lewis project.

Sincerely,
ScoƩ
Scott Collins
Executive Director
HASLO | Housing Authority of San Luis Obispo
Office: 805.594.5323 Fax: 805.543.4992
[email protected]
Visit our website at www.haslo.org

**Notice of Privacy**
This information is private and confidential and intended solely for the person or persons addressed herein.

If you have received this communication in error, immediately notify sender and destroy/delete any copies of this e-mail. Thank you for your compliance.

2

August 15, 2023
The Honorable Marcia L. Fudge
Secretary of Housing and Urban Development
US Department of Housing and Urban Development
451 7th Street, S.W.,
Washington, DC 20410
Dear Secretary Fudge,
I am writing to you today about the concerning news my office received from the Housing Authority of San Luis Obispo (HASLO) about their Maxine Lewis Project (Project) no longer being eligible for CDBG funding.

In early 2023, HASLO and SLONP, its affiliated non-profit, received CDBG awards for their Maxine Lewis Project from both the City of San Luis Obispo and the County of San Luis Obispo (County). This Project is a 40-unit development serving primarily those experiencing homelessness within the area.

However, the County recently informed HASLO that their Project is not eligible, because CDBG funds cannot be used when the affordable housing is created by a limited partnership. The County came to this conclusion after the HUD Field Office informed them that because the Project is constructed by a limited partnership, it was not an eligible use of funds.

HASLO disagrees with this interpretation of the rules regarding eligible uses of CDBG funding.

They contend the use of their affiliated non-profit entity, SLONP, as the controlling partner in a limited partnership has always been an approved structure in the past. In addition, they argue that this is how the majority of affordable housing is constructed in California. HASLO maintains that HASLO/SLONP has undergone CDBG compliance audits for past projects, and that these transactions have previously met HUD guidance.

After confirming that no legislative changes were made to the CDBG program funding guidelines, HASLO believes the Project being declared ineligible is incorrect. HASLO noted that the County attempted to schedule a time with HUD to discuss the matter but have been unable to secure a date.

Without this CDBG funding, HASLO’s Maxine Lewis Project is not financially feasible, and they may have to return the tax credits they received to the State. HASLO stresses a resolution needs to occur by September or the project is unlikely to move forward.

Given the significant potential impacts this loss of funding could have on this important local project, I kindly ask that your office look into this issue further. I greatly appreciate your assistance with this matter. Should you have any questions, please contact my Legislative Assistant, Jesse Ebadi, at 805-6991439 or at [email protected].

Sincerely,
Salud O. Carbajal
Member of Congress

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-1000

ASSISTANT SECRETARY FOR CONGRESSIONAL

AND INTERGOVERNMENTAL RELATIONS
www.hud.gov espanol.hud.gov
December 18, 2023
The Honorable Salud O. Carbajal
U.S. House of Representatives
Washington, DC 20515-0001
On behalf of Secretary Marcia Fudge, thank you for your letter regarding the use of Community Development Block Grant (CDBG) funds to develop 40 units of permanent supportive housing, called the Maxine Lewis Project. The following information is from the Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development (CPD).

Department staff held a conference call with the Los Angeles HUD Field Office on October 4, 2023, to provide clarification of why this project is not eligible, as structured, for CDBG funding. The city and county of San Luis Obispo have proposed to use $937,086 of CDBG funds to provide a loan to Orcutt Road, LP, a for-profit entity, to acquire a 55-year leasehold interest in property from the Housing Authority of San Luis Obispo County (HASLO), which holds title.

HASLO, in turn, is designating Orcutt Road, LP to construct, own and operate the project as permanent supportive housing.

Based on information contained in the tax credit application to the state of California in connection with this project, it appears that the CDBG funds may also be used to finance construction costs for improvements to the property. The project as currently structured is not eligible for CDBG funding because acquisition of real property with CDBG funds (pursuant to 24 CFR 570.201(a)) can only be carried out by the recipient, or other public or private nonprofit subrecipient. Orcutt Road, LP, as a for-profit entity, cannot be a CDBG subrecipient as that term is defined in 24 CFR 570.500(c).

However, insofar as the use of CDBG funds for acquisition of the real property is concerned, an alternative structure would be eligible under the CDBG program regulations. Under this alternative structure, the grantee or a non-profit subrecipient could use CDBG funds to acquire the leasehold interest from HASLO and dispose of the property to Orcutt Road, LP, i.e., through sale of the leasehold interest, as a disposition activity pursuant to 24 CFR 570.201(b). If sold in this manner, the grantee or its subrecipient (as seller) could accept a promissory note in lieu of cash. (The promissory note could have the same terms as originally envisioned). Thus, the CDBG funds could still be used to provide financing for the acquisition activity that would result in Orcutt, LP, obtaining a leasehold interest in the property. Of course, the sale would have to incorporate requirements to ensure that the activity would meet the CDBG national objectives criteria at 24 CFR 570.208.

2 With regard to any use of CDBG funds to finance construction of buildings or other improvements, care must be exercised to ensure that such construction does not constitute construction of permanent residential housing. Such use is prohibited at 24 CFR 570.207(b)(3). If CDBG funds are used to finance facilities that are designed for use in providing shelter for persons having special needs, however, they are considered public facilities and are not subject to the prohibition of new housing construction described in 570.207(b)(3). Such facilities include shelters for the homeless, convalescent homes, hospitals, nursing homes, battered spouse shelters, halfway houses for run-away children, drug offenders or parolees, group homes for individuals with intellectual disabilities, and temporary housing for disaster survivors.

The description of the proposed use of CDBG funds indicates that the funding will be provided by two CDBG grantees. Generally, a CDBG grantee must use its funds within its jurisdiction and for the benefit of its residents. However, the regulation provides an exception: the city and county of San Luis Obispo may combine their CDBG funds to finance an activity located within the city, if the county determines that the activity is necessary to further the purposes of Title I of the Housing and Community Development Act of 1974, as amended, and that reasonable benefits from the activity will accrue to residents within the jurisdiction of the urban county. The county of San Luis Obispo must document the basis for such determination prior to providing CDBG funds for the activity and sign a Memorandum of Understanding written in accordance with 24 CFR 570.309 and 24 CFR 570.200(e).

This activity must be documented in the county’s approved Consolidated Plan. If it is not, it is necessary to prepare an amendment to the plan, including public hearings to ensure that residents of both the city and county have an opportunity to comment on this activity. HUD’s Los Angeles Field Office CPD Director, Mr. Rufus Washington can be reached by telephone at 213-534-2555 or by email at [email protected] to ensure your concerns are addressed.

I hope this information is helpful. Please let me know if I can be of further assistance.

Sincerely,
Dr. Kimberly A. McClain
Assistant Secretary for Congressional
and Intergovernmental Relations

1 McClish, Teresa
From: Jill Bolster-White <[email protected]>
Sent: Wednesday, December 13, 2023 4:52 PM
To: McClish, Teresa
Cc: Tway, Timothea (Timmi)
Subject: RE: Palm St. Studios
This message is from an External Source. Use caution when deciding to open attachments, click links, or respond.

Hello Teresa and Timmi,
I support the use of TransiƟons-MHA’s allocaƟon of $300,000 in ARPA funds to be used for HASLO’s Maxine Lewis project.

I am certainly hopeful that the City of San Luis Obispo receives the Prohousing incenƟve payment and is able to award TMHA funds for our Palm Street Studios project, possibly in addiƟon to the $300,000 award to fill our current funding gap.

Best,
Jill
Jill Bolster-White
Executive Director
she/her
Transitions-Mental Health Association
office: (805) 540-6505 fax: (805) 540-6501
[email protected]
This e-mail, and any files transmitted with it, are intended only for the person or entity to which it is addressed and may contain confidential, protected, and/or privileged material. Any review, re-transmission, dissemination or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient, is prohibited. If you received this in error, please contact the sender and delete the material from any computer.

From: McClish, Teresa <[email protected]>
Sent: Wednesday, December 13, 2023 3:04 PM
To: Jill Bolster-White <[email protected]>
Cc: Tway, Timothea (Timmi) <[email protected]>
Subject: Palm St. Studios
[EXTERNAL]
Hi Jill,

2 Thanks again for our discussion this morning and your support for our request to reallocate funds from the Palm St. Studio’s project. We would like to move forward with the request to City Council, at their Jan 9th meeting, to reallocate $300k of affordable housing funds from the THMA Palm St. Studios Project to HASLO’s Maxine Lewis project and request that Council put the Palm St. Studios project first in position for affordable housing funds in an amount potentially more than $300k as funds become available. As I mentioned, the City is will hear formally about the state Prohousing designation on Dec 21st or Dec 22nd which will make us eligible for Prohousing incentive funds up to $750k to be used for affordable housing, with applications accepted – as we understand from HCD – “in the new year”.

The proposed reallocation will enable HASLO to proceed to close escrow in January and apply for tax credits for Maxine Lewis. By asking Council prioritize new funds to be applied to the Palm Street Studios, though a risk, we are confident that through generation of revenues into the City’s Affordable Housing Fund, automatic eligibility to apply for Prohousing funds, and with Council’s prioritization, the Palm St. Studios will be able to regain funding, and potentially additional funding, early in 2024.

As I mentioned, if you would send us (Timmi) correspondence (email is fine) that you are supportive of this strategy at your earliest opportunity (we are working on this as a late agenda item) we will have an opportunity to help keep both the Palm Street and Maxine Lewis projects moving forward.

Gratefully,
Teresa
Teresa McClish
pronouns she/her/hers
Housing Policy and Programs Manager
Community Development
E [email protected]
T 805.783.7840
slocity.org
Stay connected with the City by signing up for e-notifications

Item 6a
Department: Police
Cost Center: 8001
For Agenda of: 1/9/2024
Placement: Public Hearing
Estimated Time: 60 Minutes
FROM: Rick Scott, Police Chief
Prepared By: Fred Mickel, Deputy Chief
SUBJECT: INTRODUCTION OF AN ORDINANCE AMENDING MUNICIPAL CODE SECTION 9.22.040 - SAFETY ENHANCEMENT ZONES

RECOMMENDATION
Introduce an Ordinance entitled, “An ordinance of the City Council of the City of San Luis Obispo, California, amending chapter 9.22 (Safety Enhancement Zones) of the Municipal Code to revise and expand the dates and times during which the Safety Enhancement Zone applies to St. Patrick’s Day and Halloween.”

DISCUSSION

REPORT IN BRIEF
The proposed ordinance aims to amend Section 9.22.040 of the City of San Luis Obispo Municipal Code, expanding Safety Enhancement Zones to include additional city-wide safety periods surrounding St. Patrick's Day and Halloween.

The Safety Enhancement Zone Ordinance, enacted in 2004, designates the entire city as a safety zone during specified times, leading to higher fines for related code violations.

The current amendment seeks to include specific days before and after St. Patrick's Day and Halloween.

The expansion is prompted by the emergence of "St. Fratty's Day," a precursor event to St. Patrick's Day and the growth of Halloween celebrations in the neighborhoods. These events are causing significant disruptions, property damage, misuse of alcohol and notably the roof collapse incident in March 2015. The Police Department now conducts proactive outreach, but challenges persist in predicting and managing the spontaneous nature of these celebrations.

This report includes data on calls for service, noise complaints, citations, and other violations during St. Patrick's Day, "St. Fratty's Day," and Halloween, operational expenses associated, and recommended changes as follows.

Item 6a

1. St. Patrick's Day: Expand the Safety Enhancement Zone to include the two weekends prior to St. Patrick's Day.

2. Halloween: Adjust the Safety Enhancement Zone to cover the weekend prior and the weekend following October 31st, regardless of the day Halloween falls on.

The proposed amendments aim to address ongoing challenges associated with these events, enhance public safety, and reduce the impact of disruptive behaviors on the community.

Background
The purpose of this item is to introduce an ordinance to amend Section 9.22.040 to expand the City’s Safety Enhancement Zones for additional city-wide safety enhancement to include days after and before both Saint Patrick’s Day and Halloween as shown in Attachment A.

In December 2004, the City Council enacted Chapter 9.22 of the San Luis Obispo Municipal Code which created a process to designate the entire City as a safety enhancement zone. Specific dates/times would be established as the zones based upon a finding by the Council that such a designation is necessary to protect the public health, safety, and welfare of the citizens of San Luis Obispo.

Since 2004, Council has adopted and amended several public safety-related Municipal Code codes which have higher fines when a safety enhancement zone is in effect. These ordinances include:

Chapter 9.04 Possession or consumption of alcohol in public Chapter 9.05 Social Host - minors consuming or possessing alcohol Chapter 9.12 Noise control
Chapter 9.16 Dangerous and Deadly Weapons
Chapter 9.20 Urinating in Public
Chapter 9.22 Unruly Gathering
Currently, fines for these Municipal Code violations outside of the safety enhancement zone period are $350 for a first offense, $700 for a second offense within a 12-month period, and $1,000 for third or subsequent offenses in a 12-month period. Violations during the safety enhancement period are double with a first offense fine of $700 and second and subsequent offenses fined at $1,000 in a 12-month period. A violation under this chapter may be prosecuted either criminally or administratively pursuant to Chapter

1.24, (Administrative Code Enforcement Procedures).

In addition, violations of the Unruly Gathering ordinance are $700 for a first offense to the individuals found responsible for the gathering or a $350 first-time fine for those that are in attendance. During the safety enhancement time period, those found responsible for the gathering are fined $1,000 for the first and subsequent offenses in a 12-month period.

Participants found in violation of an unruly gathering are fined $700 for a first offense and $1,000 for subsequent offenses in a 12-month period.

Item 6a
The Police Department conducts extensive outreach annually to inform students and residents of all safety enhancement zones. For St. Patrick’s Day Safety Enhancement Zone ordinance, the communication plan, using the “Avoid Party Regret” theme, has included neighborhood outreach through the Student Community Liaison Committee, direct outreach to residents, paid social media ads, organic social media posts, and flyers/posters distributed to both Cal Poly and Cuesta College. In-person outreach is provided to student groups at Cal Poly Fraternity and Sorority Life (FSL) and various individual FSL organizations if invitations are extended. Cal Poly assists with video screen ads in the UU, poster distribution on campus, and an e-blast from Student Affairs. Cuesta College provides an e-blast to students of the safety enhancement zone information. The Police Department provides safety enhancement informational posters to Downtown SLO who assist with distribution to the downtown alcohol outlets (and Downtown SLO bar owners help provide the funding for portable toilets to be stationed at various locations throughout downtown.)
Safety Enhancement Zone History
The Safety Enhancement Zone Ordinance had previously been adopted in December of 2004 for the February Mardi Gras time period due to the impact of the nuisance behaviors and civil unrest associated with this event. Implementation of the ordinance, along with increased enforcement, was found to be a successful outreach and enforcement tool.

Within a short period of time, the problems typically associated with the Mardi Gras festivities largely stopped.

Over time, other key dates were identified as periods of nuisance partying and adverse behaviors that impacted the health and safety of residents and neighborhoods. In May 2010, the Council approved the use of a safety enhancement zone for Halloween and St.

Patrick’s Day. In August 2013, the Council approved the use of a safety enhancement zone for the start of the Cal Poly school year. Designating safety enhancement zone periods, coupled with outreach, education, and enforcement, has shown to be an effective deterrent to address behaviors associated with alcohol, noise, and other neighborhood wellness concerns.

St. Patrick’s Day and “St. Fratty’s” Celebrations
Currently, the safety enhancement zone for St. Patrick’s Day is 12:01 a.m. the morning of March 17th to 7:00 am the morning of March 18th. St. Patrick’s Day is a heavily impacted occasion that requires additional police resources and outreach in order to manage adverse party behavior and alcohol violations occurring both in the downtown and neighborhood areas.

In order to avoid the specific day of March 17th and associated increased fines, since 2014, organized and private efforts have been made to plan and private individuals and groups encourage participation in similar party-related activities outside of this one-day safety enhancement time period. This event, typically a pre-cursor to St. Patrick’s Day, is referred to as “St. Fratty’s Day”.

Item 6a
Over several years St. Fratty’s Day has been organized and celebrated in our community.

Traditionally, the event has occurred in the early hours of a weekend day in the month of March, prior to St. Patrick’s Day. Knowledge of the date and time are not readily known to law enforcement and the general community, and it is difficult to predict the exact timing to have appropriate resources available to deal with noise complaints, alcohol violations, and other adverse behaviors.

The celebration has drawn thousands of participants who converge into the residential areas on the north side of town near the perimeter of the Cal Poly campus, often drawn to the house parties that are planned and organized by the fraternities of Cal Poly. Much of the hype around this event has been coordinated by word of mouth or social media outlets. Although some of the organizations attempt to offer controlled or private parties, the nature of the atmosphere causes individuals to participate in mass and roam the impacted neighborhoods.

Roof Collapse in 2015
St. Fratty’s Day has had a history of occurring in the 300 block of Hathaway (and the surrounding area) including a residence referred to as the “Pink House”. In the early morning hours of March 7, 2015, thousands of college-age participants converged on this residential area. Several dozen students climbed onto the top of a nearby garage roof and the weight of the numerous bodies caused the garage to collapse1. This was declared a mass-casualty incident (MCI) by the first arriving Fire Department personnel. Fire crews encountered a total of eight patients, one with serious injuries after becoming impaled on a broken piece of lumber and seven with non-life-threatening injuries. Initial patient access was delayed, as responding units encountered heavy foot traffic and crowds in the area.

This event brought a great deal of attention to the university and community. The police department was not prepared with staffing to safely manage the magnitude of the event.

There was a need to request mutual aid assistance from outlying police agencies including Cal Poly Police, the California Highway Patrol, and the SLO County Sheriff’s Department. The incident prompted a criminal investigation by the Police Department; however, no charges were filed. Additionally, an investigation was completed by the Cal Poly Student Affairs Office where one of the conclusions of their investigative report stated, “Students attempting to hold an annual event outside the ‘period of increased fines’ for city code violations are contributing to a lack of preparedness and early response.”
Although St. Fratty’s Day began occurring in our community in 2014, the unpredictable situation involving the roof collapse in 2015 was very concerning and prompted the Police Department to evaluate staffing and put measures in place to discourage future unacceptable behavior. In working with Cal Poly, the police department embarked on a media campaign to educate the student-age residents on being responsible neighbors and taking ownership in the community in which they live. The City adopted standards under 17.76.090 restricting rooftop uses.

1 Rooftops are generally not designed to handle any live load and hence why the City adopted section

17.76.090 in 2018.

Item 6a
St. Patrick’s and St. Fratty’s Day preparation
In advance of St. Patrick’s Day and St. Fratty’s Day, the police department now conducts focused and intentional outreach prior to the month of March and the first two weeks of March. Outreach includes social and print media and directing officers to visit residences that historically have been problem locations. Specific outreach is directed to the Fraternity and Sorority Life (FSL) organizations that are known to organize St. Fratty’s Day parties. This early intervention is necessary to establish reasonable expectations, educate potential participants of neighborhood responsibilities, and advise students of enforcement outcomes for non-compliance.

Determining the exact date of “St. Fratty’s” is is challenging as the event tends to be “spontaneous” requiring the department to do some investigations to determine the exact date, time, and location (s). Even with specific insight gathered, there always remain conflicting reports causing the department to speculate on the exact nature of what may occur and how to prepare and plan resources
In order to be responsive to the residents and the safety of the students involved, the department fully deploys all officers and dispatchers to be prepared for increased activity.

This preparedness by the department involves using overtime and incurring unbudgeted expenses dedicated to this possible range of intensities to mitigate disturbances and dangers to the community.

Since the inception of St. Fratty’s Day, the impacts of the crowd's negative behaviors on the neighborhoods have steadily increased year to year. Last year the crowds were estimated to be approximately 3,000 to 4,000 people. Although the planning and preparation for St. Fratty’s Day was successful, an environment persists in the surrounding neighborhoods adjacent to Cal Poly that encourages people to plan parties and circulate in mass in the neighborhoods. Violations of the law continue to occur, and other neighborhood wellness concerns, particularly crowd size, noise, and property safety, are constant. There are numerous noise violations, excessive alcohol consumption, and persons engaged in other adverse behaviors requiring the Police Department to overstaff officers and dispatchers in order to safely police this event.

The following is data from the last two years for St. Patrick's Day as well as St. Fratty’s Day.

St. Patrick’s Day SEZ – midnight 3/17 to 7am 3/18
Calls for
service
Noise
calls
Noise
citations
Noise
Warnings
Open
container
Public
urination
Unruly
gathering DUI MIP
Drunk in
public
2019 96 6 3 2 0 0 0 2 0 8
2020 84 7 1 0 0 0 0 0 0 0
2021 131 4 2 0 0 0 0 3 0 1
2022 131 5 0 0 1 1 0 0 0 3
2023 169 31 11 3 0 14 0 3 3 4

Item 6a
St. Fratty’s Day
In 2023, the police department tracked operational expenses (personnel and outreach materials) to manage St. Fratty’s and the amount was estimated at $38,000.

Halloween
The City and the Police Department are seeing issues arise surrounding the Halloween holiday similar to St. Patrick’s Day. Currently, the safety enhancement zone for Halloween is as follows: if Halloween falls on a Monday, Tuesday, or Wednesday, the zone only covers Halloween on October 31st at 12:01 a.m. in the morning to 7:00 a.m. on November 1 st. If Halloween falls on a Thursday, Friday, Saturday, or Sunday, the zone extends from 12:01 a.m. on Thursday and concludes at 7:00 a.m. on the following Monday.

In the past two years, as Halloween has fallen on Monday (2022) and Tuesday (2023), the party-related activities associated with Halloween fall outside of the one-day safety enhancement time period. Activities generally happen the weekend prior to Halloween starting at Farmers’ Market on Thursday and extend through Friday and Saturday nights.

This extended activity around Halloween requires the Police Department to have a maximum deployment of officers for the entire weekend.

Halloween Preparation
In advance of Halloween, the police department conducts focused and intentional outreach in early October. Outreach includes paid social media ads, organic social media posts, posters, presentations to the Inter-fraternal Council, United Sororities and Fraternity Council, Panhellenic Council, Student Community Liaison Committee, the Downtown Beautification Committee, and e-blasts to property managers and large housing complexes in the city. The information includes the violations subject to increased fiscal penalties, party registration and reminders to not drink and drive and call for help if help is needed.

The following is data from the last two years for Halloween as well as Pre-Halloween weekend.

Halloween SEZ – midnight 10/31 to 7am 11/1
Calls for
service
Noise
calls
Noise
citations
Noise
Warnings
Open
container
Public
urination
Unruly
gathering DUI MIP
Drunk in
public
2022 120 1 0 0 1 0 0 1 0 4
2023 113 3 1 1 0 1 0 1 0 2
Calls for
service
Noise
calls
Noise
citations
Noise
Warnings
Open
container
Public
urination
Unruly
gathering DUI MIP
Drunk in
public

3.16.2019 101 13 3 7 10 3 0 2 0 2

3.14.2020 110 27 12 5 5 1 0 0 0 4

3.13.2021 160 31 5 2 0 0 0 3 0 5

3.12.2022 185 33 15 4 5 1 6 3 0 7

3.18.2023 115 41 20 0 26 1 2 1 1 3

Item 6a
Pre-Halloween weekend
Calls for
service
Noise
calls
Noise
citations
Noise
Warnings
Open
container
Public
urination
Unruly
gathering DUI MIP
Drunk in
public

10.27-30.2022 507 43 3 15 20 1 0 1 3 5

10.26-28.2023 429 109 15 29 16 9 2 4 0 2
The following is data for 2019, 2020 and 2021. The safety enhancement zone for 2020 and 2021 encompassed four days surrounding Halloween including October 31st. The celebrations for Halloween did not occur outside of these dates. It should be noted that 2020 and 2021 were also under pandemic restrictions.

Calls
for
service
Noise
calls
Noise
citations
Noise
Warnings
Open
container
Public
urination
Unruly
gathering DUI MIP
Drunk in
public

10.31-11.4.2019 427 53 5 17 11 0 0 1 0 12

10.29-11.2.2020 465 32 9 0 2 3 0 4 0 6

10.28-11.1.2021 594 25 3 9 2 1 0 3 1 7
In 2023 the police department tracked operational expenses (personnel and outreach materials) to manage Halloween and the amount was estimated at $28,000.

Recommended period of time for St. Patrick’s Day safety enhancement changes In an effort to reduce the impact of St. Fratty’s Day, the following is proposed: along with the current St. Patrick’s Day SEZ that begins at 12:01 a.m. on 3/17 until 7:00 a.m. on 3/18 it is put forward to include the two weekends prior to St. Patrick’s Day, beginning at 12:01 a.m. on Friday and end on 7:00 a.m. Monday morning. Should St. Patrick’s Day fall on a Friday, Saturday, or Sunday the safety enhancement period would begin at 12:01 am on Friday and end at 7:00 am on Monday. The reason for this is as mentioned above St.

Fratty’s Day is a moving target and historically happens the weekends before the St.

Patrick’s Day holiday.

Recommended period of time for Halloween safety enhancement changes In an effort to reduce the impact of Halloween, the following is proposed: if Halloween falls on a Thursday, Friday, Saturday, or Sunday, the safety enhancement zone period will be effective at 12:01 a.m. on the Thursday falling on or preceding October 31st until 7:00 a.m. on the Monday following October 31st and to include the weekend prior from 12:01 a.m. Friday until 7:00 a.m. Monday morning. If Halloween falls on a Monday, Tuesday, or Wednesday, the SEZ will include the previous Thursday at 12:01 a.m. through Monday at 7:00 a.m. and 12:01 am Oct. 31st to 7 am on Nov. 1st.

Public Engagement
The Police Department has coordinated several outreach opportunities with stakeholders to present the proposed changes to the Safety Enhancement Zone during the months of November and December. Meetings have included the Student Community Liaison Committee, Cal Poly Associated Students Incorporated External Affairs, United Sorority and Fraternity Life (cultural organizations), Panhellenic Council (sororities), InterFraternal Council (fraternities), Residents for Quality Neighborhoods, and Downtown SLO. Feedback captured from this outreach is attached to this report. (Attachment C).

Item 6a

ENVIRONMENTAL REVIEW
Amendment of the City’s Safety Enhancement Zone is not a project under the California Environmental Quality Act (CEQA), and enforcement actions are categorically exempt pursuant to CEQA Guidelines section 15321(b).

FISCAL IMPACT
Budgeted: No Budget Year: 2024-25
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
In general, revenue resulting from violations does not correlate to the cost of providing law enforcement services nor can the City create a method by which the revenue from fines pay for specific services.

Additional enforcement resources are not being requested to support the additional safety enhancement period. The proposed ordinance expands the time period for existing safety enhancement zone designations. It is unknown the amount of revenue that may be generated from safety enhancement zone violations since it is not yet known to what extent violations will increase or decrease. However, changes that result in increased fines are not likely to generate significant revenue to offset the existing enforcement costs.

Staffing costs (for overtime deployment) for this time period would be consistent with the costs during the 2023 St. Patrick’s/ Fratty’s Day and Halloween deployments. Those overtime costs were estimated to be up to $38,000 for each holiday.

ALTERNATIVES
Do not amend the ordinance. Staff does not recommend this alternative as safety enhancement has proven to be an effective deterrent to address negative behaviors when coupled with enforcement.

ATTACHMENTS
A - Draft Ordinance adopting Safety Enhancement Zone Amendment B - Chapter 9.22 Safety Enhancement Zones Municipal Code C - Stakeholder Feedback on Safety Enhancement Zone Amendment D - Safety Enhancement Zone Amendment Presentation

O ______
ORDINANCE NO. _____ (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 9.22 (SAFETY

ENHANCEMENT ZONES) OF THE MUNICIPAL CODE TO REVISE AND

EXPAND THE DATES AND TIMES DURING WHICH THE SAFETY
ENHANCEMENT ZONE APPLIES TO ST. PATRICK’S DAY AND

HALLOWEEN
WHEREAS, City of San Luis Obispo Municipal Code Section 9.22.040 B. currently provides, regulations for the Safety Enhancement Zone to St. Patrick’s Day:

B. The entire area within the city limits of San Luis Obispo is designated a safety enhancement zone from 12:01 a.m. on March 17th (St. Patrick’s Day) until seven a.m. on March 18th of each year.

WHEREAS, City of San Luis Obispo Municipal Code Section 9.22.040 C. currently provides, regulations for the Safety Enhancement Zone to Halloween:

C. The entire area within the city limits of San Luis Obispo is designated a safety enhancement zone from 12:01 a.m. on October 31st (Halloween) until seven a.m. on November 1st of each year. If Halloween falls on a Thursday, Friday, Saturday or Sunday, the safety enhancement zone period will be effective at 12:01 a.m. on the Thursday falling on or preceding October 31st until seven a.m. on the Monday following October 31st.

WHEREAS, these two events (St. Patrick’s Day and Halloween) have celebration activities associated with them on, before and around the actual dates of the events (March 17 for St. Patrick’s Day, October 31 for Halloween) that result in large numbers of individuals, which can be into the thousands, celebrating in public, particularly in the downtown and certain neighborhood areas of the City near the Cal Poly campus. The impacts of unlawful and adverse behaviors associated with these events have steadily increased over the past few years; and
WHEREAS, to maintain public health, safety, and welfare, and to address increased unlawful and adverse behaviors that occur during the celebrations associated with St. Patrick’s Day and Halloween, the City of San Luis Obispo Police Department fully deploys available officers and dispatchers to be prepared for and respond to increased unlawful and adverse activity during these celebrations, in addition to conducting public outreach via social media and other sources to try to minimize unlawful and adverse behaviors. This results in the Police Department using overtime and incurring substantial unbudgeted expenses to provide adequate staffing to cover these events. At times, the magnitude of these celebrations has resulted in the need to request mutual aid assistance from other police agencies, including Cal Poly Police, the California Highway Patrol, and the San Luis Obispo County Sheriff’s Department; and

Ordinance No. _____ (2024 Series) Page 2
O ______
WHEREAS, determining the exact times when celebrations associated with St.

Patrick’s Day and Halloween will occur is difficult to predict but, based on historical data and information, celebrations and the need for enhanced law enforcement staffing associated with St. Patrick’s Day (including so-called “St. Fratty’s Day celebrations) tend to occur primarily during the two weekends before and on the day of the event, and celebrations associated with Halloween tend to occur primarily from the Thursday of or before Halloween through the following Monday morning; and WHEREAS, the Police Department conducts public outreach to attempt to mitigate adverse impacts of the activities associated with the celebration of St. Patrick’s Day and Halloween and has found that adverse activities tend to be reduced significantly when a Safety Enhancement Zone, with its resulting increased fines and penalties, is in place; and
WHEREAS, expansion of the dates and times during which a Safety Enhancement Zone is in effect related to St. Patrick’s Day and Halloween will help reduce the unlawful and adverse activities that occur during celebrations associated with these events and will enhance the Police Department’s ability to maintain public health, safety, and welfare during the celebrations associated with these events within available department resources.

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

SECTION 1. Findings. The Council hereby finds and declares the following:
a) St. Patrick’s Day and Halloween have celebration activities associated with them on, before, and around the actual dates of the events (March 17 for St.

Patrick’s Day, October 31 for Halloween) that result in large numbers of individuals, which can be into the thousands, celebrating in public, particularly in the downtown and certain neighborhood areas of the City near the Cal Poly campus. Impacts of unlawful and adverse behaviors associated with these events have steadily increased over the past few years. b) To maintain public health, safety, and welfare, and to address increased unlawful and adverse behaviors that occur during the celebrations associated with St. Patrick’s Day and Halloween, the City of San Luis Obispo Police Department fully deploys available officers and dispatchers to be prepared for and respond to increased unlawful and adverse activity during these celebrations, in addition to conducting public outreach via social media and other sources to try to minimize unlawful and adverse behaviors. This results in the Police Department using overtime and incurring substantial unbudgeted expenses to provide adequate staffing to cover these events. At times, the magnitude of these celebrations has resulted in the need to request mutual aid assistance from other police agencies, including Cal Poly Police, the California Highway Patrol, and the San Luis Obispo County Sheriff’s Department.

Ordinance No. _____ (2024 Series) Page 3
O ______
c) Determining the exact times when celebrations associated with St. Patrick’s Day and Halloween will occur is difficult to predict but, based on historical data and information, celebrations and the need for enhanced law enforcement staffing associated with St. Patrick’s Day (including so-called “St. Fratty’s Day celebrations) tend to occur primarily during the two weekends before and on the day of the event, and celebrations associated with Halloween tend to occur primarily from the Thursday of or before Halloween through the following Monday morning.
d) Having a Safety Enhancement Zone in effect, with increased fines for municipal code violations, has proven to reduce unlawful or adverse activities while the Safety Enhancement Zone is in effect. Expansion of the dates and times during which a Safety Enhancement Zone is in effect related to St. Patrick’s Day and Halloween will help reduce the unlawful and adverse activities that occur during celebrations associated with these events and will enhance the Police Department’s ability to maintain public health, safety, and welfare during the celebrations associated with these events within available department resources.

SECTION 2. Section 9.22.040 B. of the San Luis Obispo Municipal Code shall be amended to expand the dates and times during which a Safety Enhancement Zone is in effect in relation to St. Patrick’s Day, to read as follows:

B. The entire area within the city limits of San Luis Obispo is designated a safety enhancement zone from 12:01 a.m. on March 17th (St. Patrick’s Day) until seven a.m. on March 18th of each year with the following modifications and additions. If St. Patrick’s Day falls on a Friday, Saturday, or Sunday, the safety enhancement zone period will be in effect from 12:01 a.m. on the Friday of or prior to St. Patrick’s Day to seven a.m. the following Monday. The safety enhancement zone period will also be in effect during the two weekends immediately prior to St. Patrick’s Day from 12:01 a.m. Friday until seven a.m. Monday for each weekend unless St. Patrick’s Day falls on a Monday, in which case the safety enhancement zone period for the weekend immediately prior to St. Patrick’s Day will be in effect from 12:01 a.m. on the Friday prior to St. Patrick’s Day until seven a.m. on March 18th.

SECTION 3. Section 9.22.040 C. of the San Luis Obispo Municipal Code shall be amended to expand the dates and times during which a Safety Enhancement Zone is in effect in relation to Halloween, to read as follows:

C. The entire area within the city limits of San Luis Obispo is designated a safety enhancement zone related to Halloween (October 31st) during the following time periods.

If Halloween falls on a Monday, Tuesday, or Wednesday, the safety enhancement zone period will be in effect from 12:01 a.m. on the previous Thursday until seven a.m. on November 1st. If Halloween falls on a Thursday, Friday, Saturday or Sunday, the safety enhancement zone period will be in effect from 12:01 a.m. on the Thursday falling on or preceding October 31st until seven a.m. on the Monday following October 31st and will also be in effect during the weekend immediately prior to Halloween from 12:01 a.m.

Friday to seven a.m. Monday.