San Luis Obispo City Council
January 23, 2024

City Council
AGENDA

Tuesday, January 23, 2024, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
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1. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.

2. PLEDGE OF ALLEGIANCE
Council Member Emily Francis will lead the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a INTRODUCTION - RILEY KUHN, PRINCIPAL BUDGET ANALYST Finance Director Emily Jackson will introduce Riley Kuhn, Principal Budget Analyst.

3.b WATER RESOURCE RECOVERY FACILITY UPDATE
Receive an update on the Water Resource Recovery Facility from Chris Lehman, Utilities Deputy Director - Wastewater and Miguel Barcenas, Utilities Deputy Director - Engineering and Planning.

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

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

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

Recommendation:

To approve Consent Calendar Items 5a through 5g.

5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

5.b MINUTES REVIEW - JANUARY 9, 2024 COUNCIL MINUTES 9
Recommendation:

Approve the minutes of the City Council meeting held on January 9, 2024.

5.c AUTHORIZE REQUEST FOR PROPOSALS FOR TOURISM

MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM

BUSINESS IMPROVEMENT DISTRICT (VISIT SAN LUIS OBISPO)
17 Recommendation:

As recommended by the Tourism Business Improvement District (TBID) Board,
Authorize the issuance of a Request for Proposals (RFP) for contract services for tourism marketing services; and

1. Authorize the City Manager to award the contract if proposals for required marketing services are within the project budget of $1,150,000; and

2. Authorize the City Manager to approve additional services as outlined in the RFP not to exceed the FY 2024-25 projected TBID revenue of $2,183,616 and based on the
recommendation by the TBID Board and within the adopted TBID Fund revenue projections as part of the 2023-25 Financial Plan.

3. 5.d FISCAL YEAR 2022-23 AB1600 DEVELOPMENT IMPACT FEE

ANNUAL REPORT
61 Recommendation:

Review and approve the Fiscal Year 2022-23 Assembly Bill 1600 (AB 1600) Development Impact Fee Annual Report; and

1. Adopt a Draft Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2022-23 Annual Report on Development Impact Fees and
make findings related to impact fees held longer than five years.”

2. 5.e AUTHORIZATION TO PURSUE CONSTRUCTION FINANCING FOR THE SANTA ROSA – STENNER CREEK TO HIGHLAND 30” PIPELINE REPLACEMENT PROJECT, PROJECT NO. 2001048
117
Recommendation:

Authorize the City Manager or their designee to pursue and apply for construction financing for the Santa Rosa - Stenner Creek to Highland 30-inch Pipeline Replacement Project
(Project 2001048) and submit requisite application documents to the Drinking Water State Revolving Fund (DWSRF),
California Infrastructure and Economic Development (I-Bank), and/or private lenders; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Manager to apply for Construction Financing and appointing the Utilities Director as the Authorized Designee to certify documents for the Santa Rosa – Stenner Creek to Highland 30” Pipeline Project” authorizing staff to submit financing application documents and designating the City Manager or their designee to be the authorized representatives to execute any certificates or documents necessary to apply for financing for this project.

2. 5.f DECLARATION OF CERTAIN REAL PROPERTY AS EXEMPT
SURPLUS (610 AND 614 MONTEREY STREET, A PORTION OF 972
NIPOMO STREET, AND A PORTION OF CITY PARKING LOT NO. 14)

UNDER THE CALIFORNIA SURPLUS LAND ACT
125
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring pursuant to Government Code Section 54221(b) that certain real property owned by the City located at 610 and 614 Monterey Street, a portion of 972 Nipomo Street and a portion of City Parking Lot 14, identified as Assessor’s Parcel Nos. 002-412-011, 002-412-012, 002-412-002 (portion) and 002-412-004 (portion) is Exempt Surplus Land.”

5.g APPROVAL OF THE FINAL MAP FOR TRACT 3089 PHASES 2 & 3, AVILA RANCH, 175 VENTURE DRIVE (FMAP-0562-2022)
133
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 3089 Phases 2 & 3, Avila Ranch, including an addendum to the Final Environmental Impact Report modifying the timing of Mitigation Measure TRANS-11, and authorizing the Mayor to execute a Subdivision Agreement in a form subject to the approval of the City Attorney (175 Venture Drive, FMAP-0562-2022).”

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a PRESENT THE 2024-2029 SAN LUIS OBISPO POLICE
DEPARTMENT STRATEGIC PLAN (Estimated Time: 30 minutes)
263
Recommendation:

Receive and file the San Luis Obispo 5-year Strategic Plan. The Strategic Plan outlines goals, objectives and action items that will guide and direct the work effort of the Police Department for the next five years.

6.b ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL

REPORT, FEDERAL SINGLE AUDIT REPORT AND

TRANSPORTATION DEVELOPMENT ACT REPORT FOR FISCAL
YEAR 2022-23 (Estimated Time: 30 minutes)
299
Recommendation:

Review and accept the Annual Comprehensive Financial Report, the Federal Single Audit Report, and Transportation Development Act Report for Fiscal Year 2022-23.

7. STUDY SESSION

7.a STUDY SESSION: TRANSIT INNOVATION STUDY REVIEW
(Estimated Time: 90 minutes)
589
Recommendation:

1. Receive and file Transit Innovation Study; and
Provide any necessary direction to staff to finalize the report and begin implementation; and

2. As recommended by the Mass Transportation Committee, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a pilot program expanding fare options for K-12 students for San Luis Obispo (SLO) Transit.”

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

9. ADJOURNMENT
The next Regular Meeting of the City Council will be held on February 6, 2024 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

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

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

1 Council Minutes
January 9, 2024, 5:30 p.m.

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

Present:

Council Member Emily Francis, Council Member Jan Marx,
Council Member Michelle Shoresman, Vice Mayor Andy Pease, Mayor Erica A. Stewart
City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CALL TO ORDER
A rescheduled Regular Meeting of the San Luis Obispo City Council was called to order on January 9, 2024 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

2. PLEDGE OF ALLEGIANCE
Vice Mayor Pease led the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a CITY MANAGER REPORT
City Manager Derek Johnson provided a report on upcoming projects.

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

Louise Justice
Kenneth Pellegrino
Edward Casacelli
Gene Nelson
Leo Corley
Geoffrey Land
Alyss Devantier
Marsha Meyers
Mai Giffard

2 Seamus
Jacob Dewhurst
Jackie Loew
Naomi
--End of Public Comment--

5. CONSENT AGENDA
Public Comments:

Jakob Dewhurst Item 5j
Scott Collins Item 5k
---End of Public Comment---
Motion By Vice Mayor Pease
Second By Council Member Shoresman
To approve Consent Calendar Items 5a to 5k.

Ayes (5): Council Member Francis, Council Member Marx, Council Member Shoresman, Vice Mayor Pease, and Mayor Stewart
CARRIED (5 to 0)

5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate.

5.b MINUTES REVIEW - DECEMBER 5, 2023 AND DECEMBER 6, 2023

COUNCIL MINUTES
Approve the following minutes of the City Council:
 December 5, 2023 - Regular Meeting
 December 6, 2023 - Special Closed Session Meeting

5.c ADOPT THE 2023 COUNTY JOINDER AMENDMENT TO THE SECOND

AMENDED AND RESTATED JOINT POWERS AGREEMENT OF THE

INTEGRATED WASTE MANAGEMENT AUTHORITY
Adopt Resolution No. 11465 (2024 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the 2023 County Joinder Amendment to the second amended and restated Joint Powers Agreement of the Integrated Waste Management Authority.”

3 5.d PUBLIC UTILITY DISTRIBUTION EASEMENT AGREEMENTS WITH

PACIFIC GAS AND ELECTRIC COMPANY FOR ELECTRIC VEHICLE

FAST CHARGER INFRASTRUCTURE ON CITY-OWNED PROPERTY
Authorize the City Engineer to execute Public Utility Distribution Easement Agreements with Pacific Gas and Electric Company in a final form satisfactory to the City Attorney, to enable the installation of electric vehicle fast chargers on City-owned parking lots.

5.e REQUEST FOR QUALIFICATIONS FOR 2024-2029 ON-CALL LEGAL

SERVICES

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.

5.f AUTHORIZE ADVERTISEMENT OF A REQUEST FOR QUALIFICATIONS

FOR EMERGENCY, RESPONSE, REPAIR, AND CLEANUP IN THE

EVENT OF A DISASTER

1. Approve the Request for Qualifications 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.

4 5.g ADVISORY BODY APPOINTMENT TO THE CITIZENS' REVENUE

ENHANCEMENT OVERSIGHT COMMISSION FOR AN UNSCHEDULED

VACANCY
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.

5.h APPROVAL OF THE SECOND AMENDMENT TO A LEASE AGREEMENT FOR 837 MARSH STREET
Adopt Resolution No. 11466 (2024 Series) 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.

5.i AWARD CONSTRUCTION CONTRACT FOR THE MITCHELL PARK
REVITALIZATION PROJECT, SPECIFICATION NO. 2000188

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 Resolution No. 11467 (2024 Series) 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”.

5.j AUTHORIZATION TO EXECUTE A MONTH-TO-MONTH LEASE WITH RESTORATIVE PARTNERS FOR PROPERTY AT 1166 HIGUERA
STREET
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.

5.k REALLOCATION OF AFFORDABLE HOUSING FUNDS FROM

TRANSITIONS MENTAL HEALTH ASSOCIATION'S PALM STREET

STUDIOS TO THE HOUSING AUTHORITY OF SAN LUIS OBISPO'S
MAXINE LEWIS APARTMENTS AT 736 ORCUTT ROAD

5 Adopt Resolution No. 11468 (2024 Series) 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 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.

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a INTRODUCTION OF AN ORDINANCE AMENDING MUNICIPAL CODE SECTION 9.22.040 - SAFETY ENHANCEMENT ZONES
Police Chief Rick Scott and Deputy Chief Fred Mickel provided an in-depth staff report and responded to Council questions.

6 Public Comments:

Sandra Rowley
Mila Vujovich-LeBarre
Carolyn Smith
Olivia Momberg
Timothy Lunney
Stew Jenkins
---End of Public Comment---
Motion By Council Member Marx
Second By Council Member Shoresman
Introduce Ordinance No. 1733 (2024 Series) 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.”
Ayes (5): Council Member Francis, Council Member Marx, Council Member Shoresman, Vice Mayor Pease, and Mayor Stewart
CARRIED (5 to 0)

6.b 2023 STATE LEGISLATIVE BRIEFING
Deputy City Manager Greg Hermann and Policy & Project Manager Natalie Harnett provided an in-depth staff report and responded to Council questions.

Public Comments:

Dona Hare-Price
Barry Price
---End of Public Comment---
Motion By Mayor Stewart
Second By Council Member Shoresman

1. Receive and file a report on the 2023 State Legislative Briefing which summarizes the adopted laws from the 2022-23 regular session of the California State Legislature (December 2022 through October 2023); and

7 2. Appoint Mayor Stewart and Council Member Shoresman to the adhoc committee to review the current legislative platform and suggest changes for the 2024-25 legislative session.

Ayes (5): Council Member Francis, Council Member Marx, Council Member Shoresman, Vice Mayor Pease, and Mayor Stewart
CARRIED (5 to 0)

7. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart attended the ribbon cutting for San Luis Drive and a webinar titled "Can California State Policy Fix the Crisis in Housing" hosted by the League of Women Voters.

Vice Mayor Pease and Council Member Francis met with the Deputy Consul General Shi Yuanqiang on behalf of the city. Vice Mayor Pease also attended the Cal Cities Policy Committee Orientation Meeting held on Zoom, the Downtown SLO Board Meeting, and spoke at the Lamination event for the Israel/Gaza war.

Council Member Francis attended the apprentices' forum for Pipe Fitters Union and the ribbon cutting at Peoples’ Self Help Housing for their LEEDs certification.

Council Member Shoresman also attended the People's Self Help Housing LEEDs certification, the ribbon cutting for San Luis Drive/Creek, the Cal Cities Policies Committee Orientation, and the Zone 9 Meeting.

Council Member Marx informed the Council that all seven cities have approved the Joinder agreement for Integrated Waste Management Authority. She attended the Perfumo Creek Restoration Meeting. She also updated the Council on Central Coast Community Energy.

8. ADJOURNMENT
The meeting was adjourned at 9:22 p.m. The next Regular City Council Meeting has been rescheduled to January 23, 2024 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. Council approved this action on November 14, 2023, during their annual review of the 2024 Council Meeting Calendar.
_________________________
APPROVED BY COUNCIL: XX/XX/2024

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 23, 2024
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Molly Cano, Economic Development & Tourism Manager VIA: Derek Johnson, City Manager
SUBJECT: Item 5C - AUTHORIZE REQUEST FOR PROPOSALS FOR TOURISM

MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM

BUSINESS IMPROVEMENT DISTRICT (VISIT SAN LUIS OBISPO)
Staff received the following questions from a Council Member. The questions are below with staff’s response shown in italics:

1. Do we have a formal business plan for the work we do with TBID money? If so, how often is it modified/changed and does that TBID review/revise? (are they the body responsible for this, is the question?) Where is the plan? The TBID maintains an adopted marketing and business plan that is posted online for public access through the TBID section of the City’s website which outlines the marketing initiatives and high-level budget expenditures for Visit San Luis Obispo.

The TBID Board is responsible for the plan. The plan is reviewed continuously by the TBID Board throughout the year as work programs are implemented, however it is formally updated annually as part of the budget process with Council approval of the corresponding contracts. The timeframe of the plan has fluctuated in recent years between one-year and two-year durations, to maintain flexibility in response to COVID-19. Beginning in FY 22-23, the TBID Board adopted the first two-year strategic marketing and business plan since the pandemic, and currently the TBID is implementing the second year of the plan which was amended for FY 23-24.

The two-year plan was also included in the report Council approved July 11, 2023 for the Adoption of the FY 23-24 Community Promotions Program for TBID and PCC.

Item 5c
Department: Administration
Cost Center: 208
For Agenda of: 1/23/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Molly Cano, Economic Development & Tourism Manager and Jacqui Clark-Charlesworth, Tourism & Community Promotions Manager SUBJECT: AUTHORIZE REQUEST FOR PROPOSALS FOR TOURISM MARKETING

SERVICES FOR THE SAN LUIS OBISPO TOURISM BUSINESS

IMPROVEMENT DISTRICT (VISIT SAN LUIS OBISPO)

RECOMMENDATION
As recommended by the Tourism Business Improvement District (TBID) Board,

1. Authorize the issuance of a Request for Proposals (RFP) for contract services for tourism marketing services; and

2. Authorize the City Manager to award the contract if proposals for required marketing services are within the project budget of $1,150,000; and

3. Authorize the City Manager to approve additional services as outlined in the RFP not to exceed the FY 2024-25 projected TBID revenue of $2,183,616 and based on the recommendation by the TBID Board and within the adopted TBID Fund revenue projections as part of the 2023-25 Financial Plan.

POLICY CONTEXT
The TBID levies an assessment on all lodging properties for the purpose of tourism promotion for the benefit of the district’s constituents. The assessment is a special revenue and is administered in a separate and distinct fund. As referenced in the City’s Municipal Code (MC) Section 12.42.030 and Sections 36501 of the California Streets and Highways Code, the use of these funds is for the general promotion of tourism within the district to include costs as specified in the business plan to be adopted annually by the City Council, and the marketing of the district to the travel industry in order to benefit local tourism and the local hotel industry in the district.

DISCUSSION

Item 5c
Background
In June 2008, Council adopted Ordinance 1517 establishing a tourism business improvement district (TBID) as requested by the local lodging industry. The assessment became effective on October 1, 2008 and the use of funds is defined in MC Section

12.42.030 as follows:
“This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.”
In order to effectively and efficiently execute the marketing efforts for the district, the City via the TBID Board actively retains a full-service agency-of-record to perform the comprehensive marketing functions. Over the tenure of the district, the TBID has issued three separate RFPs to select the agency to perform this work. The current contract is for a two-year term with the ability to extend once for an additional two years. That extension will be exhausted on June 30, 2024.

Establishment of the RFP
The TBID Board is a working board and began discussing the RFP process in fall of 2023.

To effectively draft the RFP, the TBID provided input and direction as to the scope of work, contract terms and budget amount.

Scope of Work
The selected agency is responsible for the comprehensive destination marketing functions across the channels of paid, owned and managed. The work effort and deliverables encompass development of all creative, content, optimization and reporting for the TBID’s brand marketing program.

Required Marketing Service Elements
As stated in the RFP documents, the following are the required minimum expected elements of the marketing services efforts included in the work program for the selected agency.
 Brand Strategy & Management: Serve as the steward for the Visit San Luis Obispo brand and deliver recommendations for overall brand amplification.  Account Strategy & Project Management: Guide the development and execution of the overarching marketing strategy and oversee the plans to support the various Visit San Luis Obispo program initiatives.

Item 5c
 Creative Services: Establish compelling messaging and visuals to build awareness and create demand, while driving optimal performance.
 Paid Media and Search Strategy & Management: Implement a high performing paid media strategy focused on driving brand awareness and destination consideration among audiences likely to visit San Luis Obispo.  Website Maintenance & Services: Ensure VisitSLO.com is a high performing, consistently maintained, engaging and secure site.
 Content Development: Provide valuable, engaging and authentic content to help communicate the experiences and offerings of San Luis Obispo. ** The TBID currently retains a separate content agency to for social media strategy, content and channel management. Coordination and collaboration with staff and content agency is required.**
 Reporting: Report on all work program outcomes in a way that demonstrates meaningful results that resonate with the City Council, TBID Board, stakeholders and staff.

Additional Services
Within the RFP, the Board outlined additional services that are considered within the scope of the overall Marketing Contract Services and may be added to the awarded contract later upon mutual agreement by the parties. However, the RFP clarifies that proposals are not required to address any additional services to be considered an acceptable proposal. The RFP specifies that any fees associated with the services from the Additional Services section that are included in the proposer’s response do not need to be accommodated within the budget total outlined in Part D Project Budget. Proposers should provide a description of those services along with the associated cost for the Board to review and evaluate. The additional services for consideration include:
 Event Attraction
 Group Sales
 Organic Social Media
 Proactive Public Relations
 Research
Advisory Body Action
At the December 18, 2023 Special TBID Board meeting, the TBID Board approved the RFP and established the recommendation to City Council. (Attachment B – TBID Board Minutes)
Public Engagement
All TBID meetings were noticed in accordance with Brown Act requirements. The public will also have the opportunity to provide public comment before or during the January 23, 2024 City Council meeting.

Item 5c

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

FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Fees
Other: TBID $2,183,616 $1,150,000+ $1,033,616
Total $2,183,616 $1,150,000+ $1,033,616 $
In 2024-25, the TBID projected revenue is $2,183,616 as outlined on page 328 of the adopted 2023-25 Financial Plan which funds the entirety of the TBID program including staffing, contract services, and other operational costs. Of the $2.18 million, approximately $1.75 million is budgeted for services including tourism marketing services.

If any additional services identified above are rendered, the TBID reserves the right to adjust the total project cost provided funding is appropriated in the budget.

ALTERNATIVES
The City Council may choose to deny or defer the approval to issue this RFP for marketing services. Staff does not recommend this option as the existing marketing contract will expire on June 30, 2024, without the ability to extend the term.

ATTACHMENTS
A - Draft Request For Proposal Tourism Marketing Services for Visit San Luis Obispo B - December 18, 2023 TBID Board Special Meeting Minutes

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 Proposals for Destination Marketing Services for the City of San Luis Obispo Tourism Business Improvement District (Visit San Luis Obispo) The City of San Luis Obispo is requesting sealed proposals for consulting services associated with the comprehensive marketing services for tourism promotion.

All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-appweb/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of Finance at or before 4:00 p.m. on Monday, March 4, 2024 when they will be opened electronically via BidSync on the proposal end date and time.

The preferred method for bid submission is electronic via BidSync. However, if you wish to submit a paper copy, please submit it in a sealed envelope to the Department of Finance, City of San Luis Obipso, 990 Palm Street, San Luis Obispo, CA, 93401.

An optional pre-proposal meeting will be held to answer any questions that the prospective proposers may have regarding the City's request for proposals.

Pre-proposal Meeting Information
February 6, 2024 at 10:30 a.m. PST

REGISTER HERE
A letter of Intent to Bid is requested, but not required for this RFP. The optional Intent to Bid is to be submitted to the City’s Tourism & Community Promotions Manager, Jacqui Clark-Charlesworth, at [email protected] by 5:00 p.m. on February 19, 2024.

Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. Please contact the City’s Tourism & Community Promotions Manager, Jacqui ClarkCharlesworth, at [email protected] with any questions.

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

TABLE OF CONTENTS
A. INTRODUCTION......................................................................................................................................... 2 B. SCOPE OF WORK ....................................................................................................................................... 4 C. PROJECT SCHEDULE .................................................................................................................................. 6 D. PROJECT BUDGET ..................................................................................................................................... 7 E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 7 F. SPECIAL TERMS AND CONDITIONS............................................................................................................ 8 I. PROPOSAL SUBMITTAL FORMS................................................................................................................ 19 J. FORM OF AGREEMENT………………………………………………………………………………………………………………………..23

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A. INTRODUCTION
The City of San Luis Obispo’s (“City”) Tourism Business Improvement District (“TBID”) is seeking proposals from qualified full-service, highly creative and innovative marketing agencies for execution of the integrated destination marketing program for the City of San Luis Obispo’s tourism marketing program, Visit San Luis Obispo.

I. RFP Objective
The TBID is requesting proposals from full-service marketing agencies to serve as the agency-of-record (AOR) to conduct the organization’s overall marketing and branding efforts for Visit San Luis Obispo. The TBID is looking for a passionate, entrepreneurial and committed agency of people with big ideas who possess the ability to execute those ideas effectively on behalf of the destination. Responding agencies should have experience in marketing travel destinations and/or lifestyle brands and prior experience serving as an agency-of-record. As the AOR, the contracted agency will be responsible for creating and executing a comprehensive marketing plan to support the TBID’s branding, marketing, advertising and digital initiatives.

II. Background
San Luis Obispo is a leading tourism destination on the Central Coast of California. Located halfway between San Francisco and Los Angeles, the City of San Luis Obispo is at the heart of the vibrant San Luis Obispo County region (also known as “SLO CAL”). Approximately 1.5 million visitors visit San Luis Obispo annually to enjoy destination offerings including the charming downtown, iconic attractions like Bubblegum Alley, the downtown Thursday Night Farmers’ Market, and Cal Poly State University – in addition to using SLO as homebase for day trips to nearby beaches, wine regions and other attractions.

In October 2008, after decades of City directed efforts and at the request of the local lodging industry, the San Luis Obispo City Council established the San Luis Obispo Tourism Business Improvement District. All lodging business within the city limits of San Luis Obispo are assessed. The annual assessment rate is two percent (2%) of gross short-term room rental revenue. The TBID is a special assessment district within the City jurisdiction that provides specific benefits to payors, by funding marketing, advertising, promotions, and sales efforts for assessed businesses. To manage the TBID’s activities, the City Council appointed an Advisory Board of hoteliers to make recommendations to Council regarding the use of the assessment funds. The Board’s primary focus is to promote San Luis Obispo as a visitor destination to enhance the economic wellbeing of the lodging industry.

In the fifteen-year history of the TBID, the lodging businesses have seen great benefits from the tourism marketing efforts of the district in the form of increased annual occupancy and average daily rate, and consequently the City has also benefited from the increase in transient occupancy tax. In the past few years, hotel room inventory within the City has expanded dramatically and will continue to grow, which is why the TBID desires to continue evolving their destination marketing efforts to remain competitive and expand their market share.

III. Organizational Structure
The TBID program is overseen by a City Council appointed Advisory Board. The TBID Board is comprised of seven SLO lodging members. Board members serve four-year staggered terms. The leadership consists of a Chair and Vice Chair. The current TBID Board Chair also serves on another City advisory body, the

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Promotional Coordinating Committee.

The TBID is currently staffed by two City of San Luis Obispo employees – 1.5 FTE. The program functions of the staff are organizational planning and operations, project and contract management, partnership development, stakeholder management and industry relations.

IV. Current Agency Structure
The TBID currently operates with a team of collaborative marketing service providers to execute the comprehensive destination marketing program. The team includes:
• AOR: a marketing agency-of-record responsible for creating and executing the comprehensive marketing plan to drive Visit San Luis Obispo’s branding, marketing, advertising and digital initiatives.
o National PR firm: a subcontractor to the AOR responsible for proactive media outreach. • Content marketing agency: a separately contacted agency responsible for organic social media content.
• SLO Chamber of Commerce: a separately contracted organization that provides guest service operations, operates the SLO Visitor Center, and leads local public relations efforts.

The term of the current AOR (including the National PR firm) will expire in June 2024. Based on the outcome of the RFP process a transition period will be established. These agencies are required to work collaboratively and professionally to ensure a seamless transition for Visit San Luis Obispo.

V. Contract Term
The successful proposer will enter into a 2-year contract for marketing services with the City of San Luis Obispo to begin no later than July 1, 2024 and terminate on June 30, 2026. The City reserves the right to extend the agreement once for an additional 2-year term at the recommendation of the TBID Board, provided funding is appropriated for this purpose in subsequent budgets. The contract will be reviewed annually for performance and program evaluation. A proposed extension will also be assessed according to program direction, funding and consistency of price and scope of work continuity.

VI. Response Structure
Prospective respondents are to submit proposals which demonstrate adeptness at providing an integrated and innovative marketing program. To allow for varied agency models to participate in this RFP process, the following structures will be accepted:
• An individual agency may provide a response for the entire scope of services. • An individual agency may provide a response for the scope of the services achieved through subcontracting portions of work from additional agencies. These proposals will need to identify the lead contracting agency and subcontracting agencies and delineate the assigned work. • Multiple agencies may collaborate to present a single proposal that includes the full scope of work. These proposals will need to demonstrate previous projects that have required similar collaboration and a clear definition of how communication will maximize the partnership of these companies.

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B. SCOPE OF WORK
The selected agency is responsible for the comprehensive destination marketing functions across all channels of paid, owned and managed. The work effort and production encompass development of all creative, content, optimization and reporting for the TBID’s brand marketing program.

I. Required Marketing Service Elements
The following are the required minimum expected elements of the marketing services efforts included in the work program for the selected agency.

Brand Strategy & Management: Serve as the steward for the Visit San Luis Obispo brand and deliver recommendations for overall brand amplification.
• Provide oversight and management of the brand book.
• Provide brand strategy, direction and development for Visit San Luis Obispo as the organization and destination.
• Establish recommendations for amplification of sub brands like Sustainable SLO. • Coordinate and design all collateral/swag to support the brand.

Account Strategy & Project Management: Guide the development and execution of the overarching marketing strategy and oversee the plans to support the various Visit San Luis Obispo program initiatives.
• Lead the development and execution of a two-year Tourism Marketing Plan derived from research and insights that support the long- and short-term goals of Visit San Luis Obispo in collaboration with the full TBID team.
o Deliver a creatively designed digital document of the plan for publishing and distribution. • Serve as the primary contributor to the quarterly marketing plan/work program coordination efforts with the full TBID team.
o Maintain and manage collaborative repository for work program coordination. • Provide ongoing support and input to the implementation of the TBID Strategic Inititaives. • Apply research analysis and data to enhance and optimize the marketing initiatives when applicable.
• Provide management of project timelines and development to ensure tasks get done in a timely manner and that marketing projects stay within time and budget constraints. • Guide, support and add value to the extended TBID team. • Collaborate with the full TBID team including content marketing agency and SLO Chamber of Commerce.

Creative Services: Establish compelling messaging and visuals to build awareness and create demand, while driving optimal performance.
• Develop the strategies, campaign themes, and set goals for ongoing and promotional campaigns.
• Support marketing objectives through creative direction, coordination and design. • Create, manage and oversee the visual and messaging representation of branded SLO TBID marketing assets for a cohesive and impactful look and feel across all touchpoints. • Provide creative services including but not limited to website development, digital assets, limited print design and event activation.
• Development of creative assets and executions to fulfill media placements. • Utilize video/photo assets and build content specific to campaign needs.

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o Direct, coordinate, produce and deliver visual assets when needed. o Manage contractors, videographers, photographers etc. to ensure deliverables are ontime and on-budget. • Develop creative assets to support the implementation of strategic partnerships and TBID sponsored events.
o Creation of co-branded ads, toolkit resources for partners, and landing page development.
• Collateral and asset development will be required on an as-needed basis. o Design and delivery of the printed and digital destination brochure and other organizational materials.
• Integrate diversity, equity and inclusion across all channels and creative elements representing San Luis Obispo.

Paid Media and Search Strategy & Management: Implement a high performing paid media strategy focused on driving brand awareness and destination consideration among audiences likely to visit San Luis Obispo.
• Create multi-channel campaigns aligned with marketing objectives for paid media and search engine marketing.
• Paid media strategy, management, and ongoing optimizations may include the following:
o Development of an annual paid media strategy adjusted quarterly for performance. o Digital media budget recommendations by audience and channel. Channels should include: display, paid social, paid search, native, content sponsorships and video • Ongoing management, reporting and optimization of campaigns. • Establish an ongoing SEO strategy to drive high intent visitors to the website.

Website Maintenance & Services: Ensure VisitSLO.com is a high performing, consistently maintained, engaging and secure site.
• Serve as the principal advisor and provider for website marketing strategy including management, maintenance, development and content creation. • Provide ongoing design and development enhancements, content creation, site development and maintenance.
o Implement listing updates four times a year.
o Recommend and perform site enhancements.
o Complete general website update requests for content. o Provide website support for TBID initiatives including landing page development.

Content Development: Provide valuable, engaging and authentic content to help communicate the unique experiences and offerings of San Luis Obispo.
• Create and provide relevant and timely information on the website to be leveraged and distributed across the TBID’s channels.
o Each month create new content and update existing content on the site. • Newsletter development and deployment to the Visit San Luis Obispo database. o Maintain the email system overall including strategy, management and maintenance of the subscriber lists and utilize the various lists accordingly. o Manage the design/template customization, copy and distribution of the email. • Fulfill advertorial copy and partner content contribution. ** The TBID currently retains a separate content agency for social media strategy, content and platform management. Coordination and collaboration with staff and content agency is required.**

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Reporting: Report on all work program outcomes in a way that demonstrates meaningful results that resonate with the City Council, TBID Board, stakeholders and staff. • Produce a written monthly activity report, deliver a written and verbal quarter production report, and submit an annual contract review report.
• Development of a comprehensive Visit San Luis Obispo annual report in collaboration with staff and cross-agency teams.
o Deliver a creatively designed digital document of the annual report for publication and distribution along with an approximately 3-minute long professionally produced highlight video.

II. ADDITIONAL SERVICES
If there are related services not otherwise identified in the RFP, the proposer may offer those to the TBID, but are not required to. Included in the list below are considerations. Proposals are not required to address any additional services to be considered an acceptable proposal as these services may be added to the scope of work later upon mutual agreement by the City and successful proposer.

Any fees associated with the services from this section included in the proposer’s response do not need to be accommodated within the budget total outlined in Part D Project Budget. However, final selection of the successful proposer may be based on the desirability of the additional services offered. • Event Attraction
• Group Sales
• Organic Social Media
• Proactive Public Relations
• Research
III. REFERENCE MATERIALS
Provided below are several TBID documents and plans related to the past, current and future marketing efforts. The following should be carefully considered and integrated into the proposal:
• 2022-24 Marketing Plan
• 2022-23 Annual Report & Sizzle Reel
• Visitor Research & Brand Sentiment
• 2019-24 TBID Strategic Plan
C. PROJECT SCHEDULE
The table below shows the preliminary timeline. Proposals shall include detailed schedules (with tasks, milestones, deliverables, and meetings identified by month or quarter) that are generally consistent with the preliminary timeline. It is understood that the schedule may be adjusted based on selected agency feedback when the contract is finalized.

Preliminary Schedule Tasks
Weekly • Agency & Staff Check In
Monthly • 2
nd& 4th Wednesday/Month – TBID Board Meeting
Quarterly • All Agency Planning Meeting
Bi-Annually • TBID Partner Reception
July – August • Marketing and Advertising Plan Development

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August – October • Annual Report Development
September – May • Shoulder Season Advertising Campaign
January – March • Seasonal Promotion
March / April • Annual Planning with the Board/All Agency Marketing Retreat May / June • Review and Budgeting
July • City Council Annual Budget & Workplan Approval
D. PROJECT BUDGET
This contract will initially be funded up to $1,150,000 for services rendered each fiscal year for the 2024- 2026 term. Funding at this level is dependent on the actualization of the overall TBID revenues. This budget figure is inclusive but not limited to marketing strategy, creative and content production, media planning and placement (both offline and online), website, reporting, account management fees, and outof-pocket expenses. However, the City reserves the right to adjust both the budget and related services.

The City is open to multiple avenues of service remuneration, depending upon the preferences of the agency, in relation to TBID’s annual budget allocation.

E. GENERAL TERMS AND CONDITIONS

PROPOSAL REQUIREMENTS

1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications.

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 submitted electronically via BidSync. However, if you can’t submit electronically, please send your bid copy in a sealed envelope to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled with the proposal title, project number, name of bidder, and date and time of proposal deadline. No fax submittals will be accepted.

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 bidder’s 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 Quotes and Unit Price Extension. The extension of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount

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stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder’s intention and the proposal total will be corrected to conform to the specified unit price.

5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened.

No proposal received after the time specified or at any place other than that stated in the “Notice Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the proposals.

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, except an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting proposals.

7. 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

8. Proposal Retention and Award. The City reserves the right to retain all proposals 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 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 the “special terms and conditions” in Section C of these specifications for proposal evaluation and contract award criteria.

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

10. Contract Requirement. The bidder to whom award is made Contractor shall execute a written contract with the City within ten (10) calendar days after notice of the award. The contract shall be made in the form adopted by the City and incorporated in these specifications.

CONTRACT PERFORMANCE

11. The City’s contract terms and conditions that Contractor will be expected to execute and be bound by are attached hereto as Exhibit A.

F. SPECIAL TERMS AND CONDITIONS

1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section E (General Terms

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and Conditions) of these specifications, the contract will be awarded using the outlined two-phase selection process and will not be based solely on price, but on a combination of factors as determined to be in the best interest of the TBID.

2. Sales Tax Reimbursement.

For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues.

Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible, responsive proposer.

3. Labor Actions.

In the event that the successful proposer is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said proposer is no longer the lowest responsible, responsive proposer and to accept the next acceptable low proposal from a proposer that is not experiencing a labor action, and to declare it to be the lowest responsible, responsive proposer.

4. Failure to Accept Contract.

The following will occur if the proposer to whom the award is made (Contractor) 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 proposer's bond or security is required; and an award may be made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if it were the party to whom the first award was made.

5. Contract Term.

The supplies or services identified in this specification will be used by the City for FY 24-26. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal.

6. Contract Extension.

The term of the contract may be extended by mutual consent for an additional two-year term for a total of four years.

7. Supplemental Purchases
Supplemental purchases may be made from the successful proposer during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For these supplemental purchases, the proposer shall not offer prices to the City in excess of the amounts offered to other similar customers for the same item. If the proposer is willing to offer the City a standard discount on all supplemental purchases from its generally prevailing or published price structure during the contract term, this offer and the amount of discount on a percentage basis should be provided with the proposal submittal.

8. Contractor Invoices.

The Contractor may deliver either a monthly invoice to the City with attached copies of detail invoices as supporting detail, or in one lump-sum upon completion. 9 Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail Proposal Submittal Form, as well as any supplemental items, from other vendors during the contract term.

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10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog numbers used in the specifications are for the purpose of describing and establishing general quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand that meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer, and the City shall be the sole judge in making this determination.

11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful proposer and received by the City within 90 days after authorization to proceed by the City.

12. Start and Completion of Work. Work on this project shall begin immediately after contract execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated with City by mutual agreement.

13. Change in Work. The City reserves the right to change quantities of any item after contract award.

If the total quantity of any changed item varies by 25% or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25% shall be subject to negotiation with the Contractor.

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

15. 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.

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PROPOSAL CONTENT FOR TOURISM MARKETING SERVICES

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

Submittal Forms
a. Proposal submittal summary.
b. Certificate of insurance.
c. References from at least three contacts for whom you have provided similar services. d. Professional work product samples.

Qualifications & Description of Prosper
e. Services & Activities. Provide a description of the nature of the agency’s services and activities. Provide the year in which the agency was formed and any acquisitions in the past 5-years. Note the company’s history and expertise in travel and tourism advertising.

List the address from which the primary work on the contract would be performed and size of agency by headcount. List the number of full and part-time employees. Do not list any subcontractors in this section.
f. Conflicts of Interest. List all tourism-related clients for whom you have acted in the United States during the past 18 months. You must certify that there are no conflicts of interest between any existing contracts. Client relationships that could potentially be a conflict of interest must be listed together with a discussion of how the agency will resolve the potential conflict of interest. The selected agency must disclose if they are working with a DMO located in San Luis Obispo County during the contract period. g. Personnel/Management. Identify those individuals on the agency’s account team who will manage the contract work by position title. Include a description of the duties for each position title. Identify specific individuals who will be conducting day-to-day activities. Include the number of years employed by the agency. Note who will be the contract manager and primary contact. Please indicate availability and accessibility of agency resources and staff devoted to this campaign.
h. Subcontractors. Identify all proposed subcontractors. Document which portions of service they will be perform and address their ability to perform the work. Additionally, Proposer should submit signed letters of commitment for all proposed subcontractors. The use of subcontractors is subject to approval by the Tourism & Community Promotions Manager.

In the case subcontractors are approved their costs will be the responsibility of the agency and should be included in the proposal and Scope of Work (SOW). i. Statement and explanation of any instances where your agency or subcontractors has been removed from a project or disqualified from proposing on a project.

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Scope of Work Acknowledgment
For each of the following project areas, the Proposer should prove capability; describing strategies to be used and quality controls. Sufficient detail must be given and must include examples of past projects, ability to meet deadlines, and managerial experience. The Proposer should demonstrate experience of the tourism space, knowledge and understanding of brand in marketplace, and the shifting dynamics of how consumers receive and use information today. j. Onboarding. Discuss your approach to onboarding as the AOR for Visit San Luis Obispo. k. Brand Management: Discuss your approach to serving as the steward for the Visit San Luis Obispo brand and delivering recommendations for overall brand amplification. l. Marketing Strategy: Discuss your marketing plan development process. How would you approach the development and execution of the overarching marketing strategy for Visit San Luis Obispo?
m. Content Development: How would you use content to help communicate the experiences and offerings in San Luis Obispo? What role do you see content on owned channels like the website and email in the marketing program for Visit San Luis Obispo? n. Creative Services: Discuss your creative process and how that process is scaled for campaigns of different sizes. How will you utilize creative services for Visit San Luis Obispo?
o. Paid Media Planning: What is your process in deciding where, when and how to purchase media. What tools or analytics will you use for Visit San Luis Obispo? What elements determine your purchasing decisions? What is your optimization strategy? Give us an overview of your philosophy as it relates to planning and buying media for a budget of this size and tracking/optimizing to metrics.
p. Organic Search: What role do you see SEO in the marketing mix for VisitSLO.com? How would you determine success for the website?
q. Website Development: Provide an overview of how your agency will approach ongoing design and development enhancements, content development, site development, and maintenance for VisitSLO.com. Discuss your experience inheriting an existing website.

Discuss your familiarity and experience using a WordPress based site. r. Research & Analytics: Provide an overview of how you determine success. What analytic tools or services will you use for Visit San Luis Obispo, and what type of information will you be reporting back to the TBID Board monthly? Please define how your analytics can be converted into insights, and how the insights will help guide us in making decisions on how we market in the future. How will you demonstrate meaningful results that resonate with the Board?
s. Travel and Administration: Discuss your approach to account administration for Visit San Luis Obispo including travel and meeting attendance.

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Innovation Case Study
The TBID is constantly seeking new opportunities to connect with our target audiences and build and leverage the power of the Visit San Luis Obispo brand. Provide a case study that demonstrates how your agency has pushed a client beyond the norm for their industry and achieved success.

The example does not have to be tourism specific.

Work Program
o Work Plan: Submit a preliminary work plan or schedule for the completion of the following project tasks based on a contract period of July 1, 2024 – June 30, 2026. The objective of the work plan is to give TBID an opportunity to study how Proposers would schedule various elements and distribute the workload among staff. Include the estimated hours for your staff in performing each phase of the work, including subcontractors, so we can clearly see who will be doing what work, and how much time it will take. The work plan should include a schedule for completion of the following project tasks:
▪ Brand evaluation for depth and execution
▪ Strategic Marketing Planning
▪ Advertising Campaign Development
▪ Production/Creative Services/Content Development
▪ Website Enhancements
▪ Media Planning & Buying
▪ Research & Analytics
▪ Reporting
▪ Other
o Describe any optional or additional services being proposed by your agency. o Provide any other information that would assist us in making this contract award decision. o Description of assumptions critical to development of the response which may impact cost or scope.

Budget
Proposer shall provide an overview of how they would allocate the TBID budget using dollar figures and percentages. These allocations will be used to demonstrate your agency’s philosophy on resource allocation and compensation. If commissions or other fees are part of the media, production, or subcontractor inclusion, proposers must list the percentage rates of those commissions and fees.

Provide your point of view on compensation – commission, retainer, hourly fees or any hybrid approach.

Please provide a cost proposal/rate sheet for all work elements described in this RFP. Cost proposal must contain any and all costs that would be invoiced to the City for the performance of these services.

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Work Elements to be included:
• Brand Strategy & Management
• Account Strategy & Project Management
• Creative Services
• Paid Media and SEO Strategy & Management
• Paid Media Buy
• Website Maintenance & Services
• Content Development
• Reporting
• Other (please specify)
The proposal should contain summary of the following:
• Hourly billing rates
• Projected hours by task
• Any additional costs/charges
• Annual rate increases, if any
• Terms of payment
References
o The names, email addresses and phone numbers of a least three clients we may contact.

Projects done for these clients should be similar in scope and style to the RFP. o Three examples of quality deliverables produced in the past two years.

Proposal Length
o Proposers will provide a maximum 30-page proposal. This page limit for proposal content is exclusive of a cover sheet and required City forms and appendices.

2. Proposal Evaluation and Selection. Proposals will be evaluated by the TBID Board using a twophase selection process as follows:

Phase 1 – Written Proposal Review/Finalist Candidate Selection. The written proposals will be evaluated on the following criteria:
o Understanding of the work required by the TBID.
o Quality, clarity and responsiveness of the proposal.
o Professional qualifications necessary for successfully performing the work required by the TBID.
o Background and experience of the specific individuals managing and assigned to this project.
o Recent team experience in successfully performing similar services. o Creativity of the proposed approach in completing the work. o Demonstrated competence and ability to complete the work. o Value of services.
o Quality of references.

Phase 2 – Pitch Interview and Consultant Selection. Finalist candidates will make 1-2 oral

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presentations to the TBID Board and staff. The purpose of this second phase isto clarify and resolve any outstanding questions or issues about the proposal and to evaluate the proposer’s ability to clearly and concisely present information.

The contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the TBID. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation.

3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award:

1. Issue RFP January 24, 2024

2. Pre-Proposal Meeting (optional) February 6, 2024

3. Receive Proposals March 4, 2024

4. Complete Proposal Evaluations March 26, 2024

5. In-Person Pitch Interview April 16, 2024

6. Conduct Finalist Interviews May 1, 2024

7. Finalize TBID Recommendation May 8, 2024

8. Execute Contract June 1, 2024

9. Start Work July 1, 2024

4. Pre-Proposal Meeting. An optional pre-proposal meeting will be held at the following location, date, and time to answer any questions that prospective bidders may have regarding this RFP:

Pre-proposal Meeting Information
February 6, 2024 at 10:30 a.m. PST

REGISTER HERE

5. Ownership of Materials. All original drawings, plan documents and other materials prepared by or in possession of the Contractor as part of the work or services under these specifications shall become the permanent property of the City and shall be delivered to the City upon demand.

6. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the Contractor as part of the work or services under these specifications shall be the property of the City and shall not be made available to any individual or organization by the Contractor without the prior written approval of the City.

7. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what the Contractor is required to furnish in limited quantities as part of the work or services under these specifications, the Contractor shall provide such additional copies as are requested, and City shall compensate the Contractor for the costs of duplicating of such copies at the Contractor's direct expense.

8. Required Deliverable Products. The Contractor will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish to file a paper copy, please submit in sealed envelope to the address provided in the RFP.

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b. Corresponding computer files compatible with the following programs whenever possible unless otherwise directed by the project manager:

Word Processing: MS Word
Spreadsheets: MS Excel
Desktop Publishing: InDesign
Virtual Models: Sketch Up
Digital Maps: Geodatabase shape files in
State Plan Coordinate System as
specified by City GIS staff
c. City staff will review any documents or materials provided by the Contractor and, where necessary, the Contractor will be required to respond to staff comments and make such changes as deemed appropriate.

ALTERNATIVE PROPOSALS

9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City would prefer one alternative to the other(s).

10. Attendance at Meetings and Hearings. As part of the work scope and included in the contract price is attendance by the Contractor at up to 24 public meetings annually to present and discuss its findings and recommendations. Contractor shall attend as many "working" meetings with staff as necessary in performing work-scope tasks.

11. 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. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications that could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal.

To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project’s objective or standard beyond the amounts provided there for in the proposal.

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In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one (1) working day of contractor'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 defect or ambiguity in the plans or specifications concerning the dispute.

SECTION H: INSURANCE REQUIREMENTS
Insurance Requirements – Standard Professional Services 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 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 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:

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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. 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.

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. Contractor 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.

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SECTION I: PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined [__________], 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:

Work Plan Budget 2024-25 2025-26
Service $ Amount % of Budget $ Amount % of Budget
Brand Strategy & Management
Account Strategy & Project
Management
Creative Services
Paid Media and SEO Strategy &
Management
Paid Media Buy
Website Maintenance &
Services
Content Development
Reporting
Other
Total
Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.

Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date

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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under the present business name: .

Describe fully the last three contracts performed by your firm that 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 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

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

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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

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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer 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 Proposer Representative

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EXHIBIT A : FORM OF AGREEMENT

MASTER SERVICE AGREEMENT
THIS MASTER SERVICE AGREEMENT (hereinafter referred to as “Agreement”) is made and entered into in the City of San Luis Obispo on [date], by and between the CITY OF SAN LUIS OBISPO, a municipal corporation (hereinafter referred to as the “City”), and AGENCY (hereinafter referred to as “Contractor”). At times throughout this Agreement, Client and Contractor will be individually referred to as “Party” or collectively referred to as “Parties.” W I T N E S S E T H:

WHEREAS, the City wishes to market San Luis Obispo as a travel destination resulting in overnight stays in the City of San Luis Obispo lodging businesses; and
WHEREAS, on January 24, 2024, the City requested proposals for marketing services for the City of San Luis Obispo lodging industry, specifically the Tourism Business Improvement District (hereinafter referred to as the “TBID”); and
WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to do so which has been accepted by the City.

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 this Agreement is made and entered, as first written above until June 30, 2026, or upon completion and acceptance of said services. By mutual agreement of both Parties, the term of this Agreement may be extended once for an additional two-year period.

2. INCORPORATION BY REFERENCE. The City’s Request for Proposals (RFP) is hereby incorporated in and made a part of this Agreement and attached as Exhibit A. The Contractor's proposals dated (DATE) (hereinafter collectively referred to as the “Proposal”) are hereby incorporated in and made a part of this Agreement and attached as Exhibit B. The City’s General Terms and Conditions are hereby incorporated in and made a part of this Agreement and attached as Exhibit C. The Contractor’s Scope of Work (SOW) which may be amended from time to time is attached as Exhibit D. To the extent that there are any conflicts between the Contractor’s fees and scope of work and the City’s General Terms and Conditions, the City’s General Terms and Conditions shall prevail, unless specifically agreed otherwise in writing signed by both Parties.

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3. ASSIGNMENT. Except as may be necessary in the rendition of the services and obligations as provided herein, neither Contractor nor the City may assign, in whole or in part, this Agreement, or subcontract, transfer, or delegate any of their respective rights or obligations under this Agreement, without the other party’s prior written consent. Any attempt to assign, subcontract, transfer, or delegate the obligations provided herein in violation of this paragraph is void in each instance.

4. Representation of Parties.

4.1 City. The City delegates to the TBID the responsibilities of the City in the administration of this agreement. The City shall designate a single project manager to have overall responsibility for the progress and execution of the City’s obligations under this Agreement at the commencement of the term of this Agreement (hereinafter referred to as the “City Project Manager”).

4.2 Contractor. Contractor shall assign a single project manager to have overall responsibility for the progress and execution of this Agreement for the Contractor at the commencement of the term of this Agreement (hereinafter referred to as the “Contractor Project Manager”). Should circumstances or conditions subsequent to the execution of this Agreement require a substitute Contractor Project Manager for any reason, the designation of a new Contract Project Manager shall be subject to the written approval by the City Project Manager within seven (7) days of such designation. If the City Project Manager declines to approve the new Contract Project Manager designation, the Parties shall identify a mutually agreeable Contract Project Manager within seven (7) days of the City Project Manager’s decision.

4.3 Subcontractors. City acknowledges that Contractor may, for the progress and execution of this Agreement, engage third party suppliers and other vendors and subcontractors (hereinafter collectively referred to as “Subcontractor” or “Subcontractors”) from time to time to provide certain services in furtherance of Contractor’s obligations under this Agreement. Contractor is responsible for adhering to specified procedure for hiring Subcontractors as set forth in Exhibit A, attached hereto and incorporated by reference to this Agreement, including, but not limited to, the requirement that Contractor identify proposed Subcontractors to the City, document services Subcontractors will perform in furtherance of this Agreement, and address the Subcontractors’ ability to perform the work to the City Project Manager. Contractor’s use of Subcontractors is subject to written approval by the City Project Manager. Should the City Project Manager approve Contractor’s proposed Subcontractors, costs of Subcontractors’ service(s) will be the sole responsibility of Contractor unless otherwise agreed upon in writing by the City. Contractor shall supervise Subcontractors’ provision of services in furtherance of this Agreement and endeavor to guard against any loss to City as the result of Subcontractors’ failure to properly execute such services. If City enters into arrangements with third-party vendors, subcontractors, or suppliers for the provision of materials or services in furtherance of this Agreement (hereinafter referred to as “Preferred Suppliers”), Contractor agrees to utilize such Preferred Suppliers in the discharge of Contractor’s obligations hereunder. City shall be solely responsible for Preferred Suppliers’ costs and provision of services in furtherance of this Agreement.

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5. CITY'S OBLIGATIONS. For providing services as specified in this Agreement and upon approval of the monthly report and receipt of detailed monthly invoice, City will pay, and Contractor shall receive, compensation in a total sum for all services rendered inclusive of retainer, service fees, incidental and contract expense reimbursement, and advertising commitments, not to exceed $AMOUNT for fiscal year 2024-25 and $AMOUNT for fiscal year 2025-26.

Compensation for all services rendered under this Agreement shall be paid according to the payment schedule set forth in the applicable SOW.

6. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements herein before mentioned to be made and performed by City, Contractor agrees with City to provide services as set forth in the Cit’s RFP, attached hereto and incorporated by reference into this Agreement as Exhibit A.

6.1 Scope of Work. For and in consideration of City’s promises and payment obligations, Contractor shall provide services as described in Exhibit A. Contractor will also perform services as defined and set forth in any subsequent Scope of Work, Retainer, Work Order, or any other document setting forth work to be performed (hereinafter collectively referred to as “SOW”) that has been agreed upon by the Parties and acknowledged and accepted by the City Project Manager in writing. Any such SOW and any subsequent SOW that has been agreed upon by the Parties and acknowledged and accepted by the City Project Manager in writing, shall be fully incorporated into this Agreement as an exhibit.

6.3 Coordination of Efforts with other Contractors. In performing its services under this Agreement, Contractor agrees to make every reasonable effort to coordinate activities with the City’s Preferred Suppliers as referenced in Paragraph 4.3 and to avoid duplication of costs or services associated with services provided by Preferred Suppliers.

6.4 City Approval of Materials. Contractor shall submit to the City for its approval all elements of any materials to be produced or placed hereunder, including, but not limited to, all copy, layouts, slogans, websites artworks, graphic materials, and photography (hereinafter collectively referred to as “Materials”). Submission for prior approval of Materials will not be required to the extent that they are preliminary only.

6.5 Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by Contractor as part of the work or services under this Agreement shall be the property of the City, and shall not be made available to any individual or organization by Contractor without the prior written approval of the City Project Manager.

6.6 Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to furnish in limited quantities as part of the work or services under this Agreement, Contractor shall provide such additional copies as are requested, and the City shall compensate Contractor for the costs of duplicating of such copies at the Contractor's direct expense.

6.7 Attendance at Meetings and Hearings. As part of the Agreement and included in the Agreement price is in-person attendance by the Contractor at up to (NUMBER) public meetings to present and discuss findings and recommendations. Contractor shall attend as many working meetings as necessary in performing SOW tasks.

6.8 Agency Travel & Administration. Contractor shall be responsible for all agency travel requirements related to the execution of the services detailed in Exhibit A. Compensation for all services rendered under this

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Agreement, including the expenses related to Contractor’s travel, shall be paid by the City according to the payment schedule set forth in the applicable SOW.

6.9 Incidental Expenses. City acknowledges and understands that Contractor may have to pay third-party expenses for certain services or goods that (1) Contractor cannot provide directly, (2) are necessary in Contractor’s judgment for completion of the SOW, and (3) were not included in any third-party expenses identified in the SOW that are paid directly by City. Incidental expenses include all expenses incurred for the City’s account in furtherance of the Contractor’s obligations under this Agreement, including, but not limited to, the cost of packaging material for shipment, postage, messenger, shipping charges, copyright or trademark charges, website hosting, and any advertisement buys media and online sources. Compensation for all services rendered under this Agreement shall be paid according to the payment schedule set forth in the appliable SOW. Prior to incurring any such expense on behalf of the City, Contractor shall provide the City Project Manager with written notice of the anticipated expense to be reimbursed by the City and seek the City’s approval of such expense. Contractor will not incur the expense in the absence of the City’s approval. If the City does not approve the expense within three (3) business days, City acknowledges that SOW timelines may be extended pending receipt of approval. City shall reimburse Contractor for any approved expense within thirty (30) days of receipt of Contractor’s monthly invoice and record of payment of the expense. Contractors’ requests for reimbursement from the City are subject to the expense limitations set forth in Paragraph 4 of this Agreement.

7. Ownership of Materials. All original documents and other materials prepared by or in possession of Contractor as part of the work or services under this Agreement shall become the permanent property of the City and shall be delivered to the City upon demand. Any and all patents, copyrights, trade secrets, trademarks and any other intellectual property rights associated with work developed or created by Contractor pursuant to any SOW (any such work is referred to as “Work Product”) shall belong exclusively to City and City is the sole, exclusive, worldwide, perpetual owner of all right, title, and interest thereto. City and Contractor specifically agree that the Work Product is “Work Made For Hire” as defined in the United States Copyright Act of 1976 (17 U.S.C. § 101 et seq.) and any applicable state law. If for any reason, any of the Work Product would not be considered to be “Work Made for Hire” under applicable law, Contractor does hereby sell, assign, and transfer to City the entire right, title and interest in and to the property rights in the Work Product subject to the provisions of this Section. Upon request by City, Contractor shall provide City with any additional information and documentation that is necessary for registration or transfer of any intellectual property right in and to the Work Product at an additional cost to the City.

8. INSURANCE. The Contractor shall procure and maintain for the duration of the contract insurance which meets the requirements of Exhibit C, attached and incorporated herein by reference. As evidence of this insurance, the

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Contractor shall provide the City with both, a Certificate of Insurance and an Endorsement naming the City as an “Additional Insured”.

9. 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 Manager of the City.

10. TERMINATION. Contractor agrees to the terms set forth in the City’s General Terms and Conditions, including, but not limited to, the terms set forth in paragraph 20, attached hereto and incorporated by reference as Exhibit B. If, at any time during the term of this Agreement, the City determines that the execution of the terms and obligations set forth are not feasible due to funding shortages to the TBID or other unforeseen circumstances, including, but not limited to, the discontinuation of the TBID, the City reserves the right to terminate this Agreement. Contractor will be paid compensation due and payable to the date of termination. Contractor further acknowledges that the City reserves to terminate this Agreement if Contractor is acquired by any other agency or company during the term of this Agreement.

10.1 Contractor Obligation Upon Termination. Upon termination or expiration of this Agreement, Contractor shall return and remit to the City, at Contractor’s expense, all work files related to this Agreement within ten (10) business days.

11. INDEPENDENT CONTRACTOR. Notwithstanding any representations, oral or written, between the parties, including any and all agents or representatives thereof, Contractor at all times covered by the terms of this Agreement is acting as a free and independent contractor, not as an agent of the City. Any and all supervision and direction by any City official, department or body shall be only that necessary to provide broad general outlines, and Contractor will use its own initiative and discretion in performing the details of work herein. City shall not deduct withholding taxes, social security taxes, or any other taxes required to be deducted by an employer. Further, Contractor shall not be entitled to any benefits accruing to City’s employees other than those stated in this agreement. Contractor does not have, nor shall it hold itself out as having any right, power or authority to create any contractual obligation, either express or implied, on behalf of, in the name of, or binding upon, City, or to pledge credit, or to extend credit in City’s name unless City provides prior written consent thereto.

12. SEVERABILITY. If any term, provision, covenant or condition of this Agreement is held by an arbitrator or court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions will remain in full force and effect and will in no way be affected, impaired, or invalidated.

13. UNFAIR COMPETITION. Contractor acknowledges and agrees that the sale, unauthorized use, or disclosure of any non-public information learned about the City during the term of this Agreement in a manner that conflicts with the SOW(s) or competes with the purpose of this Agreement constitutes unfair competition. Contractor promises and agrees not to engage in any unfair competition with the City, either during the term of this Agreement or at any other time thereafter. Contractor further agrees that it will disclose any other destination marketing services, whether or not for compensation, to any other entities promoting destinations within San Luis Obispo County during the term of this Agreement.

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14. 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. This Agreement may only be altered, modified, amended, or changed in whole or in part, in writing executed by both Parties.

15. 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 Administration Department
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Contractor AGENCYAGENCY

ADDRESS

ADDRESS

16. 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.

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

CITY OF SAN LUIS OBISPO, A Municipal Corporation
By: _____________________________________
Derek Johnson, City Manager
APPROVED AS TO FORM: CONTRACTOR
________________________________ By: _____________________________________ Christine Dietrick, City Attorney AGENCY

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EXHIBIT A
[Placeholder for RFP and Contractor’s Proposal]

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EXHIBIT B

INSURANCE REQUIREMENTS

INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
Without limiting CONSULTANT’s indemnification of CITY, and prior to commencement of Work, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below, and in a form satisfactory to CITY.

General liability insurance. CONSULTANT 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.

Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the Services to be performed in connection with this AGREEMENT, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this AGREEMENT.

Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees, and volunteers.

Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, 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; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; • Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.

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Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by CITY’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. 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 CONSULTANT, his agents, representatives, employees or subconsultants.

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

CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT payments.

In the alternative, CITY may cancel this AGREEMENT.

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

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss.

CONSULTANT hereby waives its own right of recovery against CITY and shall require similar written express waivers and insurance clauses from each of its subconsultants.

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

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

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coverage for the higher limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.

Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to 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.

Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

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

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that CONSULTANT’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.

Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONSULTANT, provide the same minimum insurance coverage and endorsements required of CONSULTANT.

CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONSULTANT agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.

CITY’s right to revise specifications. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the CONSULTANT, the CITY and CONSULTANT may renegotiate CONSULTANT’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. Self-insurance will not be considered to comply with these specifications unless approved by CITY.

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

Additional insurance. CONSULTANT 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. Contractor 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 before work commences.

1 Tourism Business Improvement District Board Minutes
December 18, 2023, 10:00 a.m.

City Hall, 990 Palm Street, San Luis Obispo
TBID Board Present: Member Lori Keller, Member Winston Newland, Member Nipool Patel, Member Prashant Patel, Vice Chair Lydia Bates, Chair Clint Pearce
TBID Board Absent: Member Sandy Sandoval
City Staff Present: Economic Development & Tourism Manager Molly Cano, Tourism & Community Promotions Manager Jacqui ClarkCharlesworth _____________________________________________________________________

1. CALL TO ORDER
A Special Meeting of the San Luis Obispo Tourism Business Improvement District Board was called to order on December 18, 2023 at 10:00 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair Pearce.

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

None
--End of Public Comment--

3. CONSENT
Motion By Member Patel
Second By Member Keller
To approve Consent Items 3a to 3g.

Ayes (6): Member Keller, Member Newland, Member Nipool Patel, Member Patel, Vice Chair Bates, and Chair Pearce
CARRIED (6 to 0)

2 3.a MINUTES OF TBID REGULAR MEETING ON NOVEMBER 8, 2023

3.b SMITH TRAVEL REPORT (STR)

3.c TRANSIENT OCCUPANCY TAX (TOT) REPORT

3.d SLO CHAMBER PUBLIC RELATIONS MONTHLY REPORT

3.e SLO CHAMBER GUEST SERVICES MONTHLY REPORT

3.f NOBLE STUDIOS & DCI MARKETING MONTHLY REPORT

3.g BADGER BRANDING ORGANIC SOCIAL REPORT

4. BUSINESS ITEMS

4.a MARKETING SERVICES RFP APPROVAL
Economic Development & Tourism Manager Molly Cano presented the staff report and responded to inquiries.

Public Comment:

Kristen Carlson, Visit SLOCAL
--End of Public Comment--
Motion By Member Keller
Second By Vice Chair Bates
To approve the draft RFP as discussed and changed, with content marketing services removed and proactive public relation to additional service.

Ayes (6): Member Keller, Member Newland, Member Nipool Patel, Member Patel, Vice Chair Bates, and Chair Pearce
Absent (1): Member Sandoval
CARRIED (6 to 0)

4.b MIDWEEKEND PROMOTION
Hayley Corbett, and Dani Winter, Noble Studios presented the report and responded to inquiries.

Public Comment:

None
--End of Public Comment--

3 Motion By Vice Chair Bates
Second By Member Nipool Patel
To approve the Midweekend Promotion campaign with the inclusion of $11,500 for paid media with Travelzoo.

Ayes (6): Member Keller, Member Newland, Member Nipool Patel, Member Patel, Vice Chair Bates, and Chair Pearce
Absent (1): Member Sandoval
CARRIED (6 to 0)

4.c PHOTOGRAPHY PROJECT
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Motion By Member Keller
Second By Vice Chair Bates
To approve funding additional work with Brittany App in an amount not to exceed $20,000.

Ayes (6): Member Keller, Member Newland, Member Nipool Patel, Member Patel, Vice Chair Bates, and Chair Pearce
Absent (1): Member Sandoval
CARRIED (6 to 0)

4.d VISIT SLO CAL IPW CO-OP
Economic Development & Tourism Manager Molly Cano presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--

4 Motion By Member Newland
Second By Member Nipool Patel
To approve the budget for the Visit SLO CAL IPW Co-op.

Ayes (6): Member Keller, Member Newland, Member Nipool Patel, Member Patel, Vice Chair Bates, and Chair Pearce
Absent (1): Member Sandoval
CARRIED (6 to 0)

5. TBID LIAISON REPORTS AND COMMUNICATION

5.a HOTELIER UPDATE – LIAISON REPORTS

5.b PCC UPDATE – LIAISON REPORT
Economic Development & Tourism Manager Molly Cano provided a brief update on PCC activities.

5.c VISIT SLO CAL UPDATE – LIAISON REPORT
Chair Pearce provided a brief update on Visit SLO CAL activities.

5.d TOURISM PROGRAM UPDATE – STAFF REPORT
Economic Development & Tourism Manager Molly Cano provided a brief update on the tourism programs.

6. ADJOURNMENT
The meeting was adjourned at 11:33 a.m. The next Regular Meeting of the Tourism Business Improvement District Board is scheduled for January 10, 2024 at 10:00 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD:
01/10/2024

Item 5d
Department: 4
Cost Center: 2001
For Agenda of: 1/23/2024
Placement: Consent
Estimated Time: N/A
FROM: Whitney McDonald, Assistant City Manager
Prepared By: Brent Taylor, Financial Analyst – Infrastructure Finance SUBJECT: FISCAL YEAR 2022-23 AB1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT

RECOMMENDATION

1. Review and approve the Fiscal Year 2022-23 Assembly Bill 1600 (AB 1600) Development Impact Fee Annual Report; and

2. Adopt a Draft Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2022-23 Annual Report on Development Impact Fees and make findings related to impact fees held longer than five years.” (Attachment A)

REPORT-IN-BRIEF
The City of San Luis Obispo (City) has an adopted development impact fee program that is subject to AB 1600 (the Mitigation Fee Act, Gov. Code § 66000 et seq.) and its annual disclosure and reporting requirements.

The Annual Report (Attachment B) is developed to satisfy the requirements of AB1600 by providing to the public:

1. A description of each type of fee.

2. The amount of the fee.

3. The beginning and ending balance of the fund.

4. The amount of the fees collected during the year, and the interest earned.

5. An identification of each public improvement on which fees were expended and the amount of the expenditure, including the total percentage of the cost that was funded by fees.

6. An identification of an approximate date which the construction of public improvements will begin if sufficient funds have been collected.

7. A description of each interfund transfer or loan made from the fund and the public improvement on which the transferred or loaned fees will be expended.

8. The amount of refunds made, if any, due to the fees collected and held more than five years.

Item 5d
In addition, an accompanying analysis within the Annual Report, the Five-Year Revenue Analysis, has been prepared that reflects, for each fee type, the aging of the balance held by the City to determine any funds collected and held more than five years that are subject to required findings. If adequate findings cannot be made, the fees collected and held more than five years may be subject to refund per Government Code section 66001(d)(1).

To satisfy the requirements listed above, the Annual Report of Development Impact Fees provides a description of the fee, a breakdown of the fee balances, revenues, expenditures, a description of interfund loans and the Five-Year Revenue Analysis as of June 30, 2023, based on the City's unaudited financial reports for FY 2022-23 and the audited financial reports for FY 2018-19, FY 2019-20, FY 2020-21, and FY 2021-22.

As required by Gov. Code 66006, the City must identify each public improvement on which fees were spent during the year, the amount spent the percentage of the cost funded by fees, when construction will begin, and the amount of the fees charged. To satisfy these requirements, the Development Impact Fee Expenditure Report is provided as Exhibit A to reflect the projects that the impact fees were expended on in Fiscal Year 2022-23 and provides accounting details necessary to support the findings required by AB 1600. Exhibit B provides copy of the City’s Impact Fee Schedule, indicating the current fee amounts which were applicable to development projects for Fiscal Year 2022-

23. The City has also included in this report details on three funds, Quimby Fund, Open Space Protection Fund, and Inclusionary Housing Fund that are not subject to AB1600 Annual Report requirements. These funds are considered In-Lieu Fees and are included at the prior request of Council for transparency and public engagement.

POLICY CONTEXT
AB 1600 requires agencies that have an adopted impact fee program to annually disclose the collection and use of the funds for the program and make appropriate findings as to the necessity of the impact fees and related project allocations.

DISCUSSION
Background
The City’s Municipal Code Chapter 4.56 defines the City’s Development Impact Fee Program, which was last updated by Ordinance 1663. Below is a summary of the Fees included in the City’s Impact Fee Program as of June 30, 2023.

Citywide Parkland Development Impact Fee
The Citywide Parkland Development Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of park service to new development within the City. This impact fee is intended to be used on acquisition of parkland for access and use by the entire city. Starting the fiscal year 2020-21, a reorganization of the impact fees funds was

Item 5d
approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of citywide park development impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $317,753.15 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal year 2019-20 as a prior period adjustment.
 Fund Balance: $407,532.56
Citywide Park Improvement Impact Fee
The Citywide Park Improvement Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of park service to new development within the City. This impact fee is intended to be used on the improvement of existing and newly acquired parkland intended for access and use by the entire city. Starting the fiscal year 2020-21, a reorganization of the impact fee funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 519 was created to separate the accounting of citywide park improvement impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $320,032.52 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal year 2019-20 as a prior period adjustment.  Fund Balance: $1,338,915.03
Orcutt Area Park Impact Fee
The Orcutt Area Specific Plan Parks Impact Fee was established in 2010 by Resolution No. 10222 for the acquisition and improvement of community parks and existing park facilities specifically within the boundaries of the Orcutt Area Specific Plan. Specifically, Chapter 8 of the Public Facilities Financing Plan for the Orcutt Area Specific Plan provides a detailed description of the park improvements needed to serve new development in this area. In addition, these fees may be used to reimburse the City for funds advanced from other sources to pay for design and construction or to reimburse developers who have been required or permitted to install portions of facilities and improvements more than their fair share. Starting the fiscal year 2020-21, a reorganization of the impact fees funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 511 was created to separate the accounting of Orcutt Area Specific Plan Parks Impact Fees from Quimby In-Lieu fees, Fund 501. Transfers of $1,355,409.52 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal years 2018-19 and 2019-20 as prior period adjustments.

The Orcutt Area Public Facilities Financing Plan (PFFP) was originally prepared September 2009, updated November 2016, December 2017, and most recently October 2018 to update costs reflecting current construction estimates and to revise the scope of certain capital improvement projects within the PFFP.
 Fund Balance: $2,323,855.42

Item 5d
Margarita Area Park Impact Fee
Margarita Area Specific Plan Parks Impact Fee – Fund 512 The Margarita Area Specific Plan Parks Impact fee was established in 2005 and adopted by Resolution No. 9643 for park design and construction, including construction management, of improvements set forth in Chapter 9 of the Margarita Area Specific Plan Public Facilities Financing Plan. Funds may also be used to reimburse the City for funds advanced from other sources to pay for design and construction or may be used to reimburse developers who have been required to construct park facilities and improvements beyond their fair share. While the fee has been discontinued, the fund is still active to properly account for the fees that were collected in the past and that must be used specifically on parks in the Margarita Area Specific Plan. Starting the fiscal year 2020-21, a reorganization of the impact fee funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 512 was created to separate the accounting of Margarita Area Park Impact Fees from Quimby in-lieu fees, Fund 501. Transfers of $1,313,184.10 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal years prior to 2018-2019 as a prior period adjustment.  Fund Balance: $1,688,634.64
NOTE: As of June 30, 2023, there is $2,817,860.181in revenue collected that has been held more than five years. These funds are intended to be used for preconstruction activities (design, planning, permitting, etc.) and overall construction costs to develop an 18.35-acre community park within the boundaries of the Margarita Area Specific Plan which will be for use by residents in the Margarita Area Specific Plan neighborhoods as well as the entire San Luis Obispo community.

The Margarita Area Specific Plan, established in 2005, specifically identifies the need for a park in the area and Chapter 9 of the Margarita Area Specific Plan identifies the impact fees as a source of funding for the required park. The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021-2041 (General Plan Element) and allows the City to meet the need for a community park that includes sport/athletic fields, sport courts, playground amenities, public art, and social gathering area(s). The Margarita Area Specific Plan was amended in 2012 to adjust the equitable sharing of the cost of the purchase and construction of the 9.9-acre Damon-Garcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area.

Construction of this Park requires funding for both the land and the improvements. A developer previously dedicated 9.9 acres of the required parkland, which has since been developed as the Damon-Garcia sports fields and is currently in use as referenced above. The City is to dedicate the remaining 8.45 acres. Original planned

1 $1,504,676.08 is in form of loan receivable attributed to FY 2018-19 in relation to an outstanding interfund loan.

Item 5d
park improvements were originally contemplated to be solely funded by MASP Park Impact Fees at an estimated cost of $2,323,500. However, due to increases in estimated project costs and the retirement of the MASP Park Impact Fee, the City is currently working to identify additional sources and amounts of funding to cover the increased cost of this project. It is intended that the remaining balance (inclusive of interfund loan receivable) in the MASP Park Impact Fee fund of $3,193,310 will be used in the acquisition and development of the remaining required park. In addition, the City anticipates using additional funding from Citywide Park Improvement Impact Fees and Quimby In-Lieu fees as well as General Fund sources (LRM Measure G) and/or future grants to fund the remainder of the costs of this project. Timing for commencement of construction and completion of this project is dependent upon future development of property within the Margarita Area Specific Plan, as well as accumulation of sufficient funding sources.

The chart below reflects the overall funding sources and amount anticipated to cover the costs of the future park project in the Margarita Area.

Citywide Transportation Impact Fee
The Citywide Transportation Impact Fee program was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help maintain adequate levels of transportation service in the City by mitigating the impacts that new development will have on the City’s transportation system. Fee revenue will be used to fund transportation improvements such as interchanges, intersections, street widening and extensions, pedestrian and bicycle improvements, transit improvements and reimbursements to developers for improvements they constructed which exceed their fair share.
 Fund Balance: $4,426,570.88
Airport Area Transportation Impact Fee
The Airport Area Transportation Impact Fee was established in 2005 by Resolution No. 9727 for the expansion of transportation facilities in the Airport Area Specific Plan. The fees are intended to be used on Tank Farm Road Median Improvements, Unocal Local Road, Santa Fe Extension, Buckley Extension, and Bike Paths in the Airport Area. In addition, these funds can be used to Reimburse City for funds advanced from other sources or to reimburse developers who have been required to construct improvements beyond their fair share. In 2018, the City Council adopted Resolution No. 10879 that consolidated this fee program into the Citywide Transportation Impact Fee Program.

Item 5d
While the fee has been discontinued, the fund is still active to properly account for the fees that were collected that must be used on transportation projects in the Airport Area Specific Plan.
 Fund Balance: $672,234.94
NOTE: As of June 30, 2023, there is $608,016.68 in revenue collected which has been held more than five years. The fund balance is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program: Tank Farm Road Widening (includes the Tank Farm/Santa Fe Roundabout) and Santa Fe Road Extension. Specifically, these funds will be used to reimburse the developer of the 600 Tank Farm development for eligible costs related to these transportation improvements.

As required conditions of approval, the 600 Tank Farm developer is required to design and construct portions of the Tank Farm Road Widening and Santa Fe Road Extension improvements prior to this development. As documented in detail in the AASP and related EIR, the Tank Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to mitigate the impacts of new development within the city, particularly within the AASP boundaries. The initial proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public Facilities Financing Plan).

Below is list of Projects in which these funds will be used and the anticipated amount of funding from all sources needed to complete the financing of these projects.

The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation improvements that are anticipated to be constructed in phases over several years as incremental development occurs. For the Tank Farm Road Widening Project, funding for component of project including Tank Farm Road/Santa Fe Roundabout expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (North) Project, funding for component of project to be constructed by 600 Tank Farm development (approximately 40% of planned road extension) expected by 2025.

Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (South) funding anticipated within 10 years (by 2033).

The portions of these projects to be implemented by the 600 Tank Farm development are anticipated to constructed in 2025. The direct developer contribution and local funds related to these improvements are fully funded. The portion of these project

Item 5d
costs from development impact fees are partially funded, with $608,016 to be applied from existing AASP TIF fund balance, and the remainder to be reimbursed to the developer from future transportation impact fee revenues—both from the 600 Tank Farm development itself and from revenues received from other developments benefitting from these improvements.

Los Osos Valley Road Transportation Impact Fee
The Los Osos Valley Road Transportation Impact Fee was established as an add-on fee in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 for the expansion of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, there are still minor projects that the City will need to implement at this location. The fee program was revised in 2019 to reflect the completion of the interchange construction work and the remaining projects. The City has a Reimbursement Agreement with Costco Wholesale Corporation for improvements constructed by Costco at the LOVR interchange and is still an ongoing obligation of this fund.
 Fund Balance: $416,719.77
San Luis Ranch Transportation Impact Fee
The San Luis Ranch Transportation Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879. This fee applies to development within San Luis Ranch only and represents the Citywide Transportation Impact Fee with appropriate adjustments to exclude costs related to the US 101/Prado Road Interchange project. The Development Agreement between City and San Luis Ranch was approved and adopted by Council in 2018 and requires the San Luis Ranch development to provide a direct contribution towards 28% of the costs of the Highway 101/ Prado Road Interchange improvements plus related bond financing.

Because the developer is paying this obligation directly, an adjusted Citywide Transportation Impact Fee—the San Luis Ranch Transportation Impact Fee— was created to ensure that development within San Luis Ranch does not overpay towards the Prado Road Interchange project.
 Fund Balance: $1,289,408.48
Orcutt Area Transportation Impact Fee
The Orcutt Area Transportation Impact Fee was established in 2010 by Resolution No. 10222 for the expansion of transportation facilities in and around the Orcutt Area Specific Plan. Specifically, Chapter 8 of the Public Facilities Financing Plan for the Orcutt Area Specific Plan provides a detailed description of the park improvements needed to serve this area and the projects in which these fees should be spent. In addition, these fees may be used to reimburse the City for funds advanced from other sources to pay for design and construction or to reimburse developers who have been required or permitted to install portions of facilities and improvements more than their fair share. This fund was

Item 5d
created in FY 2020-21 with the reorganization of the chart of accounts to separately account for Orcutt Area Transportation Impact Fees from other transportation impact fees.

The fee was created as a financing strategy to fund the burden of public facilities that must be carried by development in the Orcutt Area Specific Plan.

The OASP Public Facilities Financing Plan (PFFP) was originally prepared September 2009, updated November 2016, December 2017, and most recently October 2018, to update costs reflecting current construction estimates and to revise the scope of certain capital improvement projects within the PFFP.
 Fund Balance: $1,408,677.24
Wastewater Impact Fee
The Wastewater Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and Wastewater Capacity and Connection Fee Study. Fees are to be used for the expansion and improvement of facilities used for sewer collection and sewer treatment. Specifically, the facilities and improvements to be paid for by these fees is listed in the 2017 Water and Wastewater Capacity and Connection Fee Study. The Wastewater Impact Fee Fund 506 is used to separately collect and account for impact fees and is treated as a pass-through to the Sewer Fund 602.  Fund Balance: $(1,875,888.17)
NOTE: The Wastewater Impact Fee Fund is currently carrying a negative fund balance of $(1,875,888). Projects in the Utilities Department often precede the administration of corresponding fees because these projects often need to be delivered before developments can occur. For example, the addition of a lift station to collect and deliver wastewater to the Water Resource Recovery Facility (WRRF) is necessary before development occurs and fees are collected. Additionally, cost escalation on projects have resulted in higher eligible expenses than originally used in the calculation of the impact fee. The Wastewater Impact Fee Fund is carrying a negative balance because of project schedules relative to impact fee collection and general escalation in projects costs.

Water Impact Fee
The Water Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and Wastewater Capacity and Connection Fee Study for the expansion and improvement of facilities used for water supply, water treatment, and water distribution necessary to serve new development. Specifically, the facilities and improvements to be paid for by these fees is listed in the 2017 Water and Wastewater Capacity and Connection Fee Study. The Wastewater Impact Fee Fund 506 is used to separately collect and account for impact fees and is treated as a pass-through to the Sewer Fund 602. The Water Impact Fee Fund 509 is used to separately collect and account for impact fees collected and is treated as a pass-through to the Water Fund 601.  Fund Balance: $6,458,173.87

Item 5d
Fire Impact Fee
The Fire Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help ensure there are sufficient fire facilities, equipment, and vehicles to serve new development. Fees collected will be used to help renovate Fire Stations 1-4, to construct Fire Station 5, and to replace fire vehicles and equipment, all of which is needed to serve new development through General Plan buildout.
 Fund Balance: $136,331.01
Police Impact Fee
The Police Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help ensure there are sufficient police facilities and vehicles to serve new development. Fees collected will be used to help construct a new police headquarters and purchase vehicles to maintain the existing ratio of police vehicles to serve new development.  Fund Balance: $180,227.21
In-Lieu Fees Included in Report
The three In-Lieu Fees listed below are included in this report even though they are not considered an impact fee as defined by AB1600. The funds are included for transparency of transferred funds, loans receivables related to affordable housing, and public engagement. Inclusion of these fees has been previously requested by City Council.

Parkland ln-Lieu Quimby Fee
The Parkland In-Lieu Fee was established in 1994 per the AB 1191 Act, also known as the Quimby Act, and applies to new single-family and multifamily condominium developments. Developers are required to either dedicate land for parks or pay an in-lieu fee as a condition of approval of a tentative or parcel subdivision map. The land, fees, or combination thereof are to be used only for the purpose of developing new or rehabilitating existing neighborhood park, community park or recreational facilities to serve the subdivision in which the fees were collected. Under the Quimby Act, the base standard for parks is 3.0 acres per 1,000 residents and cannot be any higher than 5.0 acres per 1,000 residents. The Parkland In-Lieu fee has been established for the City with a standard of 4.18 acres per 1,000 residents. At the discretion of the City Council, even though this fee is not an impact fee as defined by AB1600, the fund is included in this report for transparency and public engagement.
 Fund Balance: $2,489,142.64

Item 5d
Open Space Protection In-Lieu Fee
The Open Space Protection In-Lieu Fee was established in 2005 by Resolution #9728 to address the need to acquire new open space lands, specifically in the Airport Area Specific Plan commensurate with similar land lost to development projects. While the fee has been discontinued FY 2018-19, the fund is still active to properly account for the fees that were collected in the past and that must be used specifically on open space protection projects within the Airport Area Specific Plan. The fund is also utilized to capture funds related to Grants and other Miscellaneous Revenue related to Open Space. The city expects to utilize the remaining funds for open space transactions during FY 2023-24. At the discretion of the City Council, even though this fee is not an impact fee as defined by AB1600, the fund is included in this report for transparency and public engagement.
 Fund Balance: $13,097.39
Affordable Housing Inclusionary In-Lieu Fee
The Affordable Housing Inclusionary Fee is governed by the City’s Inclusionary Housing Ordinance (Ordinance No. 1346) established in 1999 to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing. Developers either pay a fee or must construct affordable units to meet their inclusionary housing requirements. At the discretion of the City Council, even though this fee is not an impact fee as defined by AB1600, the fund is included in this report for transparency and public engagement.
 Fund Balance: $1,714,841.80
Previous Council or Advisory Body Action
City Staff is responsible for preparing the annual report and making recommendations on any required findings. The Annual Report is presented as a Consent Item at a City Council meeting in which City Council reviews to accept or reject recommended findings contained in the annual report. The annual report and necessary findings have been filed in compliance with the Mitigation Fee Act since the adoption and implementation of development Impact Fee program at the City of San Luis Obispo.

Public Engagement
A draft report was posted on the City’s website on December 21, 2023, and has since been updated and replaced due to substantive, but non-material changes to the report.

The updated report is posted and provided to council with the agenda package. The notice of availability was posted on December 21, 2023, at 5:00 p.m. on the City’s bulletin board, located in front of City Hall, published in The New Times newspaper, and on the City’s website www.slocity.org.

CONCURRENCE
The City’s Attorney’s Office and the Finance, Public Works, Community Development, Parks and Recreation, Utilities Departments concur with the information contained within this report.

Item 5d

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

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $ $ $
State $ $ $ $
Federal $ $ $ $
Fees $ $ $ $
Other: $ $ $ $
Total $N/A $ $ $
The action before the City Council does not have a fiscal impact. AB 1600 reports on the City's impact fee collection, the use of the fees, and the status of projects for which the fee has been collected. Therefore, the report summarizes the fiscal impact of the fees in advancing important infrastructure projects for the City.

ALTERNATIVES
Do not approve the Fiscal Year 2022-23 AB 1600 Development Impact Fee Annual Report and associated Resolution to make findings. This alternative is not recommended as it would require refunding of certain impact fees collected and held more than five years under the program and would present a monetary shortfall for the park to be constructed in the Margarita Area Specific Plan and for the Prado Interchange Project.

ATTACHMENTS
A - Draft Resolution adopting the Fiscal Year 2022-23 AB 1600 Development Impact Fee Annual Report
B - Fiscal Year 2022-23 AB 1600 Development Impact Fee Annual Report

RESOLUTION NO. ________ (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2022-23 ANNUAL REPORT

ON DEVELOPMENT IMPACT FEES AND MAKING FINDINGS RELATED

TO IMPACT FEES HELD LONGER THAN FIVE YEARS
WHEREAS, the City of San Luis Obispo (“City”) has an established Development Impact Fee program and collects applicable impact fees pursuant to Municipal Code 4.56; and
WHEREAS, the documents reflecting the balance in each development impact fee fund or account, accrued interest in said fund or account, and the amount of expenditure by public facility for the fiscal year have been made available for public review as required by California Government Code section 66006; and
WHEREAS, the City is required to make certain findings every five years with respect to the unexpended fund balance of certain development impact fee funds pursuant to California Government Code section 66001; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Recitals. All the above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Acceptance. The 2022-23 Annual Report on Development Impact Fees is hereby accepted.

SECTION 3. Findings. The following findings are made as required under Government Code section 66001 for the impact fees collected and held more than five years:
a) For the Margarita Area Specific Plan Park Impact Fee Fund, as of June 30, 2023, there is $2,817,860.181in revenue collected that has been held more than five years. These funds are intended to be used for pre-construction activities (design, planning, permitting, etc.) and overall construction costs to develop an

18.35-acre community park within the boundaries of the Margarita Area Specific Plan which will be for use by residents in the Margarita Area Specific Plan neighborhoods as well as the entire San Luis Obispo community.

1 $1,504,676.08 is in form of loan receivable attributed to FY 2018-19 in relation to an outstanding interfund loan.

Resolution No. _____ (2024 Series) Page 2
R ______
The Margarita Area Specific Plan, established in 2005, specifically identifies the need for a park in the area and Chapter 9 of the Margarita Area Specific Plan identifies the impact fees as a source of funding for the required park. The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021-2041 (General Plan Element) and allows the City to meet the need for a community park that includes sport/athletic fields, sport courts, playground amenities, public art, and social gathering area(s). The Margarita Area Specific Plan was amended in 2012 to adjust the equitable sharing of the cost of the purchase and construction of the 9.9-acre Damon-Garcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area.

Construction of this Park requires funding for both the land and the improvements.

A developer previously dedicated 9.9 acres of the required parkland, which has since been developed as the Damon-Garcia sports fields and is currently in use as referenced above. The City is to dedicate the remaining 8.45 acres. Original planned park improvements were originally contemplated to be solely funded by MASP Park Impact Fees at an estimated cost of $2,323,500. However, due to increases in estimated project costs and the retirement of the MASP Park Impact Fee, the City is currently working to identify additional sources and amounts of funding to cover the increased cost of this project. It is intended that the remaining balance (inclusive of interfund loan receivable) in the MASP Park Impact Fee fund of $3,193,310 will be used in the acquisition and development of the remaining required park. In addition, the City anticipates using additional funding from Citywide Park Improvement Impact Fees and Quimby In-Lieu fees as well as General Fund sources (LRM Measure G) and/or future grants to fund the remainder of the costs of this project. Timing for commencement of construction and completion of this project is dependent upon future development of property within the Margarita Area Specific Plan, as well as accumulation of sufficient funding sources.

The chart below reflects the overall funding sources and amount anticipated to cover the costs of the future park project in the Margarita Area.

Resolution No. _____ (2024 Series) Page 3
R ______
b) For the Airport Area Transportation Impact Fee Fund, as of June 30, 2023, there is $608,016.68 in revenue collected which has been held more than five years. The fund balance is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program: Tank Farm Road Widening (includes the Tank Farm/Santa Fe Roundabout) and Santa Fe Road Extension. Specifically, these funds will be used to reimburse the developer of the 600 Tank Farm development for eligible costs related to these transportation improvements.

As required conditions of approval, the 600 Tank Farm developer is required to design and construct portions of the Tank Farm Road Widening and Santa Fe Road Extension improvements prior to this development. As documented in detail in the AASP and related EIR, the Tank Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to mitigate the impacts of new development within the city, particularly within the AASP boundaries. The initial proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public Facilities Financing Plan).

Below is list of Projects in which these funds will be used and the anticipated amount of funding from all sources needed to complete the financing of these projects.

The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation improvements that are anticipated to be constructed in phases over several years as incremental development occurs. For the Tank Farm Road Widening Project, funding for component of project including Tank Farm Road/Santa Fe Roundabout expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (North) Project, funding for component of project to be constructed by 600 Tank Farm development (approximately 40% of planned road extension) expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (South) funding anticipated within 10 years (by 2033).

Resolution No. _____ (2024 Series) Page 4
R ______
The portions of these projects to be implemented by the 600 Tank Farm development are anticipated to constructed in 2025. The direct developer contribution and local funds related to these improvements are fully funded. The portion of these project costs from development impact fees are partially funded, with $608,016 to be applied from existing AASP TIF fund balance, and the remainder to be reimbursed to the developer from future transportation impact fee revenues—both from the 600 Tank Farm development itself and from revenues received from other developments benefitting from these improvements.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of ___________ 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 FISCAL YEAR 2022-23
City of San Luis Obispo, California
AB 1600

DEVELOPMENT

IMPACT FEE

ANNUAL REPORT

2 Table of Contents
City of San Luis Obispo – Development Impact Fee Program ____________________________Page 3 AB 1600 Annual Report Requirements _____________________________________________ Page 5 Parks and Recreation Funds
Citywide Parkland Development Impact Fee Fund _______________________________ Page 7 Citywide Parkland Improvement Impact Fee Fund _______________________________ Page 8 Orcutt Area Park Impact Fee Fund ___________________________________________ Page 9 Margarita Area Impact Fee Fund ___________________________________________ Page 11 Transportation Funds
Citywide Transportation Impact Fee Fund ____________________________________ Page 15 Airport Area Transportation Impact Fee Fund _________________________________ Page 17 Los Osos Valley Road Transportation Impact Fee Fund __________________________ Page 19 San Luis Ranch Transportation Impact Fee Fund _______________________________ Page 20 Orcutt Area Transportation Impact Fee Fund __________________________________ Page 21 Wastewater and Water Funds
Wastewater Impact Fee Fund ______________________________________________ Page 24 Water Impact Fee Fund ___________________________________________________ Page 26 Public Safety and Affordable Housing Funds
Fire Impact Fee Fund _____________________________________________________ Page 28 Police Impact Fee Fund ___________________________________________________ Page 29 In-Lieu Fee Funds
Parkland In-Lieu Fee Fund _________________________________________________ Page 31 Open Space Protection In-Lieu Fee Fund ______________________________________Page 32 Affordable Housing Inclusionary In-Lieu Fee Fund ______________________________ Page 33 Exhibit A – Development Impact Fee Expenditure Report _____________________________ Page 35 Exhibit B – Fiscal Year 2022-2023 Fee Schedule _____________________________________ Page 38

3 City of San Luis Obispo – Development Impact Fee Program Overview of Program
The City of San Luis Obispo has an adopted Development Impact Fee program as detailed in Municipal Code 4.56 and governed under AB 1600, also known as the Mitigation Fee Act, and codified in Government Code §§ 66000 et seq. The power to exact development impact fees on a development project arises from Cal. Const., Art. XI § 7 in which a city acts in the interest of its citizenry to enact and enforce ordinances and regulations that are not in conflict with state law. Charter cities have an additional power to regulate by virtue of their plenary authority with respect to municipal affairs (Cal. Const., Art. XI, § 5). City of San Luis Obispo Council has declared via ordinance that the development impact fees collected are established for the purpose of protecting public health, safety, general welfare, and implementing the policies of the general plan.

Every five to eight years the City of San Luis Obispo updates the Development Impact Fees with Nexus Study.

Last update to the Development Impact Fees was July 1, 2018, in which the Capital Facilities Development Impact Fee Nexus Study and the Water and Wastewater Capacity and Connection Fee Program Study was completed and resulted in the establishment, implementation, and its collection of Citywide and Add-on impact fees related to Parks and Recreation, Transportation, Water, Wastewater, Police and Fire. For sub-area specific fees for the Orcutt Area the fee has been established through the Public Facilities Financing Plans specific to the Orcutt Area and was last updated in 2018. The city is currently in process of updating all Development Impact Fees, including sub-areas which is anticipated to be implemented fiscal year 2025-2026.

AB 1600 – Mitigation Fee Act
The Mitigation Fee Act, AB 1600, sets forth the procedural requirements for establishing and collecting development impact fees. These procedures require that a reasonable relationship, or nexus, must exist between a governmental exaction and the purpose of the condition. AB 1600 applies to all local agencies in the state, including all general law and charter cities, (Gov. Code § 66000(c)) however, AB 1600 does not apply to every fee or exaction collected by a local agency. AB 1600 only applies when a local agency imposes a fee on an applicant in connection with the approval of a development project to defray all or a portion of the cost of public facilities related to the project (Gov. Code § 66001)“ "Public Facilities" are defined to include public improvements, public services, and community amenities (Gov. Code § 66000(d)). The three key requirements of the Mitigation Fee Act that determine the structure, scope and amounts of the Development Impact Fee Program are:
1) Development Impact Fee revenue must be collected and used to cover the cost of capital facilities and infrastructure that are required to serve only new development and future growth in the city.

Fees cannot be used to cover cost of operation or maintenance of those facilities. 2) Development Impact Fee revenue can only be used to pay for new or expanded capital facilities needed to accommodate growth. Fees cannot be used to cover the cost of existing deficiencies. 3) Development Impact Fees must be based on a reasonable nexus between new development and the costs of capital facilities needed to accommodate the future growth.

Development Impact Fees
A development impact fee is a monetary exaction other than a tax, special assessment, or in-lieu fee that is charged by a local governmental agency to an applicant in connection with the approval of a development project to defray all or a portion of the cost of public facilities related to the development project (Gov. Code § 66000(b)).

4 By its definition, an impact fee is voluntary and must be related to the cost of the service provided by the local agency. If a development impact fee does not relate to the impact created by development or exceeds the reasonable cost of providing the public service, then the fee may be declared a special tax and must then be subject to two-thirds voter approval. (Cal. Const., Art. XIII A, § 4.) Accounting Requirements for Development Impact Fees
Development Impact Fees collected by the City shall be deposited with the other fees for the improvement in a separate capital facilities account or fund in a manner to avoid any commingling of the fees with other revenues and funds. In addition, the City must expend those fees solely for the purpose for which the fee was collected.

Any interest income earned by moneys in the capital facilities account or fund shall be deposited in that account or fund and shall be expended only for the purpose for which the fee was originally collected. (Gov. Code § 66006(a).)

5 AB 1600 Annual Report Requirements
The Mitigation Fee Act requires that for each separate account or fund established, the City will within 180 days after the last day of each fiscal year, make available to the public the following information for the prior fiscal year:
1) A brief description of the type of fee in the account or fund. 2) The amount of the fee.
3) The beginning and ending balance of the account or fund. 4) The amount of the fees collected during the year, and the interest earned. 5) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
6) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public improvement remains incomplete. 7) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.
8) The amount of refunds made pursuant to item 5 and any allocations pursuant to item 6.

The information referred to in this report provides a breakdown of the individual fund balances on hand as of June 30, 2023, based on unaudited financial information and is submitted to satisfy the annual report requirements listed above. As required by the Mitigation Fee Act, this Annual Report of Development Impact Fees is available for public inspection at least 15 days prior to the City Council’s public meeting. Notice was posted in the kiosk outside City Hall, posted in The New Times Newspaper, and posted to City’s website on December 21, 2023.

Five Year Revenue Analysis
AB1600 requires that each fee collected to mitigate a specific impact must be spent within five years of collection.

If the fee is held beyond this time frame due to specific circumstances or insufficient collection for the needed improvements, the City must make specific findings to continue holding the fees. Otherwise, if the findings are not made as required the fees are subject to refund. The requirements for the findings that must be made for funds held more than five years are as follows:
1) Identify the purpose to which the fee is to be put.
2) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged. 3) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified.
4) Designate the approximate dates on which the funding referred to in item C is expected to be deposited into the appropriate account or fund.

6 Parks and Recreation Funds

7 Citywide Parkland Development Impact Fee – Fund 510
The Citywide Parkland Development Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of park service to new development within the City. This impact fee is intended to be used on acquisition of parkland for access and use by the entire city. Starting the fiscal year 20-21, a reorganization of the impact fees funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of citywide park development impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $317,753.15 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal year 19- 20 as a prior period adjustment.

As of June 30, 2023, the fund balance was $854,358.99, in which $446,826.43 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $407,532.56.

There were no expenditures for FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years.
510 - Citywide Park Development Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 549,433.00 $ 658,029.82 Prior Period Adjustment (1) $ - $ - $ 317,753.15 $ - $ - Fund Balance Beginning of Year After Adjustment $ - $ - $ 317,753.15 $ 549,433.00 $ 658,029.82 Interest $ - $ - $ 87.97 $ (13,137.64) $ 10,395.73
Impact Fees $ - $ - $ 231,591.88 $ 121,734.46 $ 185,933.44 Total Revenue $ - $ - $ 231,679.85 $ 108,596.82 $ 196,329.17 Expenses $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ - $ - $ 549,433.00 $ 658,029.82 $ 854,358.99 Less Loans Receivable (2) $ - $ - $ - $ 446,826.43 $ 446,826.43 Net Fund Balance End of Year $ - $ - $ 549,433.00 $ 211,203.39 $ 407,532.56 Fund Ending Balance (6/30/23) $ 854,358.99
Less: Revenues for last five years:

Revenues FY 18-19 $ -
Revenues FY 19-20 $ 317,753.15
Revenues FY 20-21 $ 231,679.85
Revenues FY 21-22 $ 108,596.82
Revenues FY 22-23 $ 196,329.17
Total Revenues for last five years $ 854,358.99
Funds Held in Excess of Five Years $ - if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020. (2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

8 Citywide Park Improvement Impact Fee – Fund 519
The Citywide Park Improvement Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of park service to new development within the City. This impact fee is intended to be used on the improvement of existing and newly acquired parkland intended for access and use by the entire city. Starting the fiscal year 20-21, a reorganization of the impact fee funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 519 was created to separate the accounting of citywide park improvement impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $320,032.52 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal year 19-20 as a prior period adjustment.

As of June 30, 2023, the fund balance was $1,421,721.92, in which $82,806.89 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $1,338,915.03.

There were no expenditures for fiscal year 22-23. As of June 30, 2023, there are no funds collected which have been held more than five years.
519 - Citywide Park Improvement Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 837,762.15 $ 1,008,615.38 Prior Period Adjustment (1) $ - $ - $ 320,032.52 $ - $ - Fund Balance Beginning of Year After Adjustment $ - $ - $ 320,032.52 $ 837,762.15 $ 1,008,615.38 Interest $ - $ - $ 108.72 $ (20,015.16) $ 16,423.70
Impact Fees $ - $ - $ 517,620.91 $ 190,868.39 $ 396,682.84 Total Revenue $ - $ - $ 517,729.63 $ 170,853.23 $ 413,106.54 Expenses $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ - $ - $ 837,762.15 $ 1,008,615.38 $ 1,421,721.92 Less Loans Receivable (2) $ - $ - $ - $ 82,806.89 $ 82,806.89 Net Fund Balance End of Year $ - $ - $ 837,762.15 $ 925,808.49 $ 1,338,915.03 Fund Ending Balance (6/30/23) $ 1,421,721.92
Less: Revenues for last five years:

Revenues FY 18-19 $ -
Revenues FY 19-20 $ 320,032.52
Revenues FY 20-21 $ 517,729.63
Revenues FY 21-22 $ 170,853.23
Revenues FY 22-23 $ 413,106.54
Total Revenues for last five years $ 1,421,721.92
Funds Held in Excess of Five Years $ - if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020. (2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

9 Orcutt Area Specific Plan Parks Impact Fee – Fund 511 The Orcutt Area Specific Plan Parks Impact Fee was established in 2010 by Resolution No. 10222 for the acquisition and improvement of community parks and existing park facilities specifically within the boundaries of the Orcutt Area Specific Plan. Specifically, Chapter 8 of the Public Facilities Financing Plan for the Orcutt Area Specific Plan provides a detailed description of the park improvements needed to serve new development in this area. In addition, these fees may be used to reimburse the City for funds advanced from other sources to pay for design and construction or to reimburse developers who have been required or permitted to install portions of facilities and improvements more than their fair share. Starting the fiscal year 20-21, a reorganization of the impact fees funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 511 was created to separate the accounting of Orcutt Area Specific Plan Parks Impact Fees from Quimby In-Lieu fees, Fund 501. Transfers of $1,355,409.52 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal years 18-19 and 19-20 as prior period adjustments.

The Orcutt Area Public Facilities Financing Plan (PFFP) was originally prepared September 2009, updated November 2016, December 2017, and most recently October 2018 to update costs reflecting current construction estimates and to revise the scope of certain capital improvement projects within the PFFP.

As of June 30, 2023, the fund balance was $2,323,855.42. Refer to Exhibit A for detailed information regarding the projects in which these funds were expended on for FY 2022/ 2023. There were no reimbursements issued to developer in Fiscal Year 2022-23. As of June 30, 2023, there are no funds collected which have been held more than five years.

10 511 - Orcutt Area Specific Plan Parks Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 2,248,529.96 $ 2,043,551.64 Prior Period Adjustment (1) $ - $ - $ 1,355,409.52 $ - $ - Fund Balance Beginning of Year After Adjustment $ - $ - $ 1,355,409.52 $ 2,248,529.96 $ 2,043,551.64 Interest $ - $ - $ 377.92 $ (51,550.30) $ 30,226.87
Impact Fees $ - $ - $ 1,277,619.60 $ 130,976.42 $ 327,160.19 Total Revenue $ - $ - $ 1,277,997.52 $ 79,426.12 $ 357,387.06 Expenses $ - $ - $ - $ - $ 77,083.28
Reimbursements $ - $ - $ 366,800.56 $ 284,404.44 $ -
Transfers Out $ - $ - $ 18,076.52 $ - $ -
Total Expenditures $ - $ - $ 384,877.08 $ 284,404.44 $ 77,083.28 Fund Balance End of Year $ - $ - $ 2,248,529.96 $ 2,043,551.64 $ 2,323,855.42 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ - $ - $ 2,248,529.96 $ 2,043,551.64 $ 2,323,855.42 Fund Ending Balance (6/30/23) $ 2,323,855.42
Less: Revenues for last five years:

Revenues FY 18-19 $ 925,388.00
Revenues FY 19-20 $ 430,022.00
Revenues FY 20-21 $ 1,277,997.52
Revenues FY 21-22 $ 79,426.12
Revenues FY 22-23 $ 357,387.06
Total Revenues for last five years $ 3,070,220.70
Funds Held in Excess of Five Years $ (746,365.28) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to Transfers in from Fund 501: FY $430,022 FY 19-20; $925,388 FY 18-19

11 Margarita Area Specific Plan Parks Impact Fee – Fund 512 The Margarita Area Specific Plan Parks Impact fee was established in 2005 and adopted by Resolution No. 9643 for park design and construction, including construction management, of improvements set forth in Chapter 9 of the Margarita Area Specific Plan Public Facilities Financing Plan. Funds may also be used to reimburse the City for funds advanced from other sources to pay for design and construction or may be used to reimburse developers who have been required to construct park facilities and improvements beyond their fair share. While the fee has been discontinued, the fund is still active to properly account for the fees that were collected in the past and that must be used specifically on parks in the Margarita Area Specific Plan. Starting the fiscal year 20- 21, a reorganization of the impact fee funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 512 was created to separate the accounting of Margarita Area Park Impact Fees from Quimby in-lieu fees, Fund 501. Transfers of $1,313,184.10 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal years prior to 2018-2019 as a prior period adjustment.

As of June 30, 2023, the fund balance was $3,193,310.72, of which $1,504,676.08 is in the form of loans receivable related to repayment of an outstanding interfund loan, described further below, and reduces available balance to $1,688,634.64. There were no expenditures for fiscal year 22-23.

Interfund Loan: There remains an interfund loan payable from the Margarita Area Specific Plan Transportation Impact Fee Fund which is a discontinued Fund and was consolidated to Citywide Transportation Impact Fee Fund (507) on July 1, 2018. Therefore, the loan is now between this Fund (512) and Citywide Transportation Impact Fee Fund (507). The Interfund Loan was authorized in 2014 per Resolution No. 10513 in the amount of $1,504,676.08, including interest. The purpose of the loan was to advance early Transportation Impact Fee credits to developer, Rescall LLC, for costs related to Prado Road improvements. City Staff is currently working on final reconciliation to facilitate loan repayment from Fund 507 to Fund 512 in FY 2023-24 now that sufficient funds have been collected in the Citywide Transportation Impact Fee Fund (507). The balance in this fund after repayment of the loan is expected to be approximately $3,193,310.72.

Five Year Finding: As of June 30, 2023, there is $2,817,860.181in revenue collected that has been held more than five years. These funds are intended to be used for pre-construction activities (design, planning, permitting, etc.) and overall construction costs to develop an 18.35-acre community park within the boundaries of the Margarita Area Specific Plan which will be for use by residents in the Margarita Area Specific Plan neighborhoods as well as the entire San Luis Obispo community.

The Margarita Area Specific Plan, established in 2005, specifically identifies the need for a park in the area and Chapter 9 of the Margarita Area Specific Plan identifies the impact fees as a source of funding for the required park. The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021-2041 (General Plan Element) and allows the City to meet the need for a community park that includes sport/athletic fields, sport courts, playground amenities, public art, and social gathering area(s). The Margarita Area Specific Plan was amended in 2012 to adjust the

1 $1,504,676.08 is in form of loan receivable attributed to FY 2018-19 in relation to an outstanding interfund loan.

12 equitable sharing of the cost of the purchase and construction of the 9.9-acre Damon-Garcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area.

Construction of this Park requires funding for both the land and the improvements. A developer previously dedicated 9.9 acres of the required parkland, which has since been developed as the Damon-Garcia sports fields and is currently in use as referenced above. The City is to dedicate the remaining 8.45 acres. Original planned park improvements were originally contemplated to be solely funded by MASP Park Impact Fees at an estimated cost of $2,323,500. However, due to increases in estimated project costs and the retirement of the MASP Park Impact Fee, the City is currently working to identify additional sources and amounts of funding to cover the increased cost of this project. It is intended that the remaining balance (inclusive of interfund loan receivable) in the MASP Park Impact Fee fund of $3,193,310 will be used in the acquisition and development of the remaining required park. In addition, the City anticipates using additional funding from Citywide Park Improvement Impact Fees and Quimby In-Lieu fees as well as General Fund sources (LRM Measure G) and/or future grants to fund the remainder of the costs of this project. Timing for commencement of construction and completion of this project is dependent upon future development of property within the Margarita Area Specific Plan, as well as accumulation of sufficient funding sources.

The chart below reflects the overall funding sources and amount anticipated to cover the costs of the future park project in the Margarita Area.

13 512 - Margarita Area Specific Plan Park Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 1,632,841.88 $ 1,668,914.59 Prior Period Adjustment (1) $ - $ - $ 1,313,184.10 $ - $ 1,504,676.08 Fund Balance Beginning of Year After Adjustment $ - $ - $ 1,313,184.10 $ 1,632,841.88 $ 3,173,590.67 Interest $ - $ - $ 269.64 $ (38,916.34) $ 19,685.31
Impact Fees $ - $ - $ 319,388.14 $ 74,989.05 $ 34.74
Total Revenue $ - $ - $ 319,657.78 $ 36,072.71 $ 19,720.05 Expenses $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ - $ - $ 1,632,841.88 $ 1,668,914.59 $ 3,193,310.72 Less Loans Receivable $ - $ - $ - $ - $ 1,504,676.08
Net Fund Balance End of Year $ - $ - $ 1,632,841.88 $ 1,668,914.59 $ 1,688,634.64 Fund Ending Balance (6/30/23) $ 3,193,310.72
Less: Revenues for last five years:

Revenues FY 18-19 $ -
Revenues FY 19-20 $ -
Revenues FY 20-21 $ 319,657.78
Revenues FY 21-22 $ 36,072.71
Revenues FY 22-23 $ 19,720.05
Total Revenues for last five years $ 375,450.54
Funds Held in Excess of Five Years $ 2,817,860.18 if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment for FY 20-21 related to Transfers in from Fund 501: $354,240 FY 17-18; $958,944 prior years. Prior Period Adjustment for FY 22-23 is related to Interfund Loan Receivable Revenue attributed to FY 17-18.

14 Transportation Funds

15 Citywide Transportation Impact Fee – Fund 507
The Citywide Transportation Impact Fee program was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help maintain adequate levels of transportation service in the City by mitigating the impacts that new development will have on the City’s transportation system. Fee revenue will be used to fund transportation improvements such as interchanges, intersections, street widening and extensions, pedestrian and bicycle improvements, transit improvements and reimbursements to developers for improvements they constructed which exceed their fair share.

As of June 30, 2023, the fund balance was $7,095,615.09, in which $1,164,368.13 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and $1,504,676.08 is in form of Interfund Loan repayment and reduces balance to $4,426,570.88. Refer to Exhibit A for detailed information regarding the projects in which these funds were expended on for fiscal year 22-23. As of June 30, 2023, there are no funds collected which have been held more than five years.

Transfers Out: There is an annual Transfer Out of fees collected for the reimbursement of the General Fund for direct costs incurred for debt service relating to the Los Osos Valley Road Interchange. City Council has authorized the future use of Traffic Impact Fees to finance at least half of the cost of the annual debt service payments. The transfer is annually assessed through the City’s Cost Allocation Plan. For Fiscal Year 2022-23, an amount of $280,000 was transferred and used on debt service payments related to the LOVR Interchange completed project.

Final debt payments associated with this transfer of funds will be FY 2044-45.

Interfund Loan: There remains an interfund loan with the Margarita Area Specific Plan Parks Impact Fee Fund (512). The loan originated between Margarita Area Specific Plan Parks Impact Fee Fund (512) and the Margarita Area Specific Plan Transportation Impact Fee Fund, which is a discontinued Fund and was consolidated to Citywide Transportation Impact Fee Fund (507) July 1, 2018. Therefore, the loan is now between this Fund (507) and the Margarita Area Specific Plan Parks Impact Fee Fund (512). The Interfund Loan was authorized in 2014 per Resolution No. 10513 in the estimated amount of $1,504,676.08. The purpose of the loan was to advance early fee credits to developer, Rescall LLC, for costs related to Prado Road improvements. City Staff is currently working on final reconciliation to facilitate loan repayment from Fund 507 to Fund 512 in FY 2023-24 now that sufficient funds have been collected in the Citywide Transportation Impact Fee Fund (507). The loan is subject to interest, at rate of average return for City investments. The balance in this fund after repayment of the loan is expected to be approximately $4,426,570.88.

16 507 - Citywide Transportation Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ 6,873,843.21 $ 7,711,583.17 $ 8,655,656.69 $ 9,527,448.18 $ 7,035,017.29 Interest $ 261,924.40 $ 252,653.83 $ 2,509.13 $ (236,023.88) $ 82,951.89 Misc. Revenue $ 41,965.81 $ - $ - $ - $ -
Impact Fees $ 2,034,420.90 $ 2,157,532.70 $ 3,065,469.58 $ 1,715,908.93 $ 1,369,546.11 Total Revenue $ 2,338,311.11 $ 2,410,186.53 $ 3,067,978.71 $ 1,479,885.05 $ 1,452,498.00 Expenses $ 1,250,571.15 $ 1,186,113.01 $ 1,542,832.20 $ 3,380,159.86 $ 1,111,900.20 Reimbursements $ - $ - $ 367,755.02 $ 312,156.08 $ -
Transfers Out $ 250,000.00 $ 280,000.00 $ 285,600.00 $ 280,000.00 $ 280,000.00 Total Expenditures $ 1,500,571.15 $ 1,466,113.01 $ 2,196,187.22 $ 3,972,315.94 $ 1,391,900.20 Fund Balance End of Year $ 7,711,583.17 $ 8,655,656.69 $ 9,527,448.18 $ 7,035,017.29 $ 7,095,615.09 Less Loans Receivable (1) $ - $ - $ - $ 1,164,368.13 $ 1,164,368.13 Interfund Loan Repayment $ - $ - $ - $ - $ 1,504,676.08 Net Fund Balance End of Year $ 7,711,583.17 $ 8,655,656.69 $ 9,527,448.18 $ 5,870,649.16 $ 4,426,570.88 Fund Ending Balance (6/30/23) $ 7,095,615.09
Less: Revenues for last five years:

Revenues FY 18-19 $ 2,296,345.30
Revenues FY 19-20 $ 2,410,186.53
Revenues FY 20-21 $ 3,067,978.71
Revenues FY 21-22 $ 1,479,885.05
Revenues FY 22-23 $ 1,452,498.00
Total Revenues for last five years $ 10,706,893.59
Funds Held in Excess of Five Years $ (3,611,278.50) if positive, subject to findings Notes
(1) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

Five Year Revenue Analysis Page 92 of 682
17 Airport Area Transportation Impact Fee – Fund 503
The Airport Area Transportation Impact Fee was established in 2005 by Resolution No. 9727 for the expansion of transportation facilities in the Airport Area Specific Plan. The fees are intended to be used on Tank Farm Road Median Improvements, Unocal Local Road, Santa Fe Extension, Buckley Extension, and Bike Paths in the Airport Area. In addition, these funds can be used to Reimburse City for funds advanced from other sources or to reimburse developers who have been required to construct improvements beyond their fair share. In 2018, the City Council adopted Resolution No. 10879 that consolidated this fee program into the Citywide Transportation Impact Fee Program. While the fee has been discontinued, the fund is still active to properly account for the fees that were collected that must be used on transportation projects in the Airport Area Specific Plan.

As of June 30, 2023, the fund balance was $672,234.94. There are no expenditures in fiscal year 22-23.

Five Year Finding: As of June 30, 2023, there is $608,016.68 in revenue collected which has been held more than five years. The fund balance is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program: Tank Farm Road Widening (includes the Tank Farm/Santa Fe Roundabout) and Santa Fe Road Extension. Specifically, these funds will be used to reimburse the developer of the 600 Tank Farm development for eligible costs related to these transportation improvements.

As required conditions of approval, the 600 Tank Farm developer is required to design and construct portions of the Tank Farm Road Widening and Santa Fe Road Extension improvements prior to this development. As documented in detail in the AASP and related EIR, the Tank Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to mitigate the impacts of new development within the city, particularly within the AASP boundaries. The initial proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public Facilities Financing Plan).

Below is list of Projects in which these funds will be used and the anticipated amount of funding from all sources needed to complete the financing of these projects.

The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation improvements that are anticipated to be constructed in phases over several years as incremental development occurs. For the Tank Farm Road Widening Project, funding for component of project including Tank Farm Road/Santa Fe Roundabout expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (North) Project, funding for component of project to be constructed by 600 Tank Farm development (approximately 40% of planned road extension) expected by 2025. Funding for remaining project components anticipated within 10 years (by 2033). For the Santa Fe Road Extension (South) funding anticipated within 10 years (by 2033).

18 The portions of these projects to be implemented by the 600 Tank Farm development are anticipated to constructed in 2025. The direct developer contribution and local funds related to these improvements are fully funded. The portion of these project costs from development impact fees are partially funded, with $608,016 to be applied from existing AASP TIF fund balance, and the remainder to be reimbursed to the developer from future transportation impact fee revenues—both from the 600 Tank Farm development itself and from revenues received from other developments benefitting from these improvements.
503 - Airport Area Transportation Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ 1,121,229.07 $ 1,153,501.74 $ 1,141,565.19 $ 896,694.57 $ 675,535.70 Interest $ 39,168.34 $ 33,424.80 $ 262.43 $ (21,170.76) $ 7,701.88 Impact Fees $ 2,096.56 $ 827.24 $ 400.12 $ 1,507.65 $ - Total Revenue $ 41,264.90 $ 34,252.04 $ 662.55 $ (19,663.11) $ 7,701.88 Expenses $ 8,992.23 $ 46,188.59 $ 245,533.17 $ 201,495.76 $ 11,002.64 Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ 8,992.23 $ 46,188.59 $ 245,533.17 $ 201,495.76 $ 11,002.64 Fund Balance End of Year $ 1,153,501.74 $ 1,141,565.19 $ 896,694.57 $ 675,535.70 $ 672,234.94 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 1,153,501.74 $ 1,141,565.19 $ 896,694.57 $ 675,535.70 $ 672,234.94 Fund Ending Balance (6/30/23) $ 672,234.94
Less: Revenues for last five years:

Revenues FY 18-19 $ 41,264.90
Revenues FY 19-20 $ 34,252.04
Revenues FY 20-21 $ 662.55
Revenues FY 21-22 $ (19,663.11)
Revenues FY 22-23 $ 7,701.88
Total Revenues for last five years $ 64,218.26
Funds Held in Excess of Five Years $ 608,016.68 if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

19 Los Osos Valley Road Transportation Impact Fee – Fund 504 The Los Osos Valley Road Transportation Impact Fee was established as an add-on fee in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 for the expansion of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, there are still minor projects that the City will need to implement at this location. The fee program was revised in 2019 to reflect the completion of the interchange construction work and the remaining projects. The City has a Reimbursement Agreement with Costco Wholesale Corporation for improvements constructed by Costco at the LOVR interchange and is still an ongoing obligation of this fund.

As of June 30, 2023, the fund balance was $416,719.77. The only expenditure was a reimbursement paid to Costco for fiscal year 22-23 in the amount of $114,635.00. As of June 30, 2023, there are no funds collected which have been held more than five years.
504 LOVR Transportation Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ 97,521.27 $ 713,044.59 $ 469,605.94 $ 469,730.00 $ 584,365.27 Interest $ 29,509.32 $ 26,655.45 $ 124.06 $ (12,090.27) $ 4,582.99 Impact Fees $ 586,014.00 $ - $ - $ 126,725.54 $ (57,593.49) Total Revenue $ 615,523.32 $ 26,655.45 $ 124.06 $ 114,635.27 $ (53,010.50) Expenses $ - $ 270,094.10 $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ 114,635.00
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ 270,094.10 $ - $ - $ 114,635.00 Fund Balance End of Year $ 713,044.59 $ 469,605.94 $ 469,730.00 $ 584,365.27 $ 416,719.77 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 713,044.59 $ 469,605.94 $ 469,730.00 $ 584,365.27 $ 416,719.77 Fund Ending Balance (6/30/23) $ 416,719.77
Less: Revenues for last five years:

Revenues FY 18-19 $ 615,523.32
Revenues FY 19-20 $ 26,655.45
Revenues FY 20-21 $ 124.06
Revenues FY 21-22 $ 114,635.27
Revenues FY 22-23 $ (53,010.50)
Total Revenues for last five years $ 703,927.60
Funds Held in Excess of Five Years $ (287,207.83) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

20 San Luis Ranch Transportation Impact Fee – Fund 514
The San Luis Ranch Transportation Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879. This fee applies to development within San Luis Ranch only and represents the Citywide Transportation Impact Fee with appropriate adjustments to exclude costs related to the US 101/Prado Road Interchange project. The Development Agreement between City and San Luis Ranch was approved and adopted by Council in 2018 and requires the San Luis Ranch development to provide a direct contribution towards 28% of the costs of the Highway 101/ Prado Road Interchange improvements plus related bond financing. Because the developer is paying this obligation directly, an adjusted Citywide Transportation Impact Fee—the San Luis Ranch Transportation Impact Fee— was created to ensure that development within San Luis Ranch does not overpay towards the Prado Road Interchange project.

As of June 30, 2023, the fund balance was $1,289,408.48. Refer to Exhibit A for detailed information regarding the projects in which these funds were expended on for FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than 5 years.
514 - SLR Transportation Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ - $ 458,855.53 Interest $ - $ - $ - $ (2,186.54) $ 17,116.18
Impact Fees $ - $ - $ - $ 457,690.07 $ 837,532.77
Total Revenue $ - $ - $ - $ 455,503.53 $ 854,648.95
Expenses $ - $ - $ - $ 6,648.00 $ 24,096.00
Reimbursements $ - $ - $ - $ - $ -
Transfers In $ - $ - $ - $ (10,000.00) $ -
Total Expenditures $ - $ - $ - $ (3,352.00) $ 24,096.00 Fund Balance End of Year $ - $ - $ - $ 458,855.53 $ 1,289,408.48 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ - $ - $ - $ 458,855.53 $ 1,289,408.48 Fund Ending Balance (6/30/23) $ 1,289,408.48
Less: Revenues for last five years:

Revenues FY 18-19 $ -
Revenues FY 19-20 $ -
Revenues FY 20-21 $ -
Revenues FY 21-22 $ 455,503.53
Revenues FY 22-23 $ 854,648.95
Total Revenues for last five years $ 1,310,152.48
Funds Held in Excess of Five Years $ (20,744.00) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

21 Orcutt Area Transportation Impact Fee – Fund 515
The Orcutt Area Transportation Impact Fee was established in 2010 by Resolution No. 10222 for the expansion of transportation facilities in and around the Orcutt Area Specific Plan. Specifically, Chapter 8 of the Public Facilities Financing Plan for the Orcutt Area Specific Plan provides a detailed description of the park improvements needed to serve this area and the projects in which these fees should be spent. In addition, these fees may be used to reimburse the City for funds advanced from other sources to pay for design and construction or to reimburse developers who have been required or permitted to install portions of facilities and improvements more than their fair share. This fund was created in FY 2020-2021 with the reorganization of the chart of accounts to separately account for Orcutt Area Transportation Impact Fees from other transportation impact fees. The fee was created as a financing strategy to fund the burden of public facilities that must be carried by development in the Orcutt Area Specific Plan.

The OASP Public Facilities Financing Plan (PFFP) was originally prepared September 2009, updated November 2016, December 2017, and most recently October 2018, to update costs reflecting current construction estimates and to revise the scope of certain capital improvement projects within the PFFP.

As of June 30, 2023, the fund balance was $1,408,677.24. There are no loans associated with this fund. There were no reimbursements for FY 2022/ 2023 from this fund. There were no expenditures for this fund in FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than 5 years.

22 515 - OASP Transportation Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 692,609.95 $ 1,392,254.93 Interest $ - $ - $ 51.35 $ (29,354.51) $ 16,422.31
Impact Fees $ - $ - $ 909,089.60 $ 728,999.49
Total Revenue $ - $ - $ 909,140.95 $ 699,644.98 $ 16,422.31 Expenses $ - $ - $ 216,531.00 $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ 216,531.00 $ - $ -
Fund Balance End of Year $ - $ - $ 692,609.95 $ 1,392,254.93 $ 1,408,677.24 Less Loans Receivable (2) $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ - $ - $ 692,609.95 $ 1,392,254.93 $ 1,408,677.24 Fund Ending Balance (6/30/23) $ 1,408,677.24
Less: Revenues for last five years:

Revenues FY 18-19 $ -
Revenues FY 19-20 $ -
Revenues FY 20-21 $ 909,140.95
Revenues FY 21-22 $ 699,644.98
Revenues FY 22-23 $ 16,422.31
Total Revenues for last five years $ 1,625,208.24
Funds Held in Excess of Five Years $ (216,531.00) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

23 Wastewater and Water Funds

24 Wastewater Impact Fee – Fund 506
The Wastewater Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and Wastewater Capacity and Connection Fee Study. Fees are to be used for the expansion and improvement of facilities used for sewer collection and sewer treatment. Specifically, the facilities and improvements to be paid for by these fees is listed in the 2017 Water and Wastewater Capacity and Connection Fee Study. The Wastewater Impact Fee Fund 506 is used to separately collect and account for impact fees and is treated as a pass-through to the Sewer Fund 602.

As of June 30, 2023, the fund balance was $(1,077,443.17) in which $798,745.00 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $(1,875,888.17). Refer to Exhibit A for detailed information regarding the projects in which these funds were expended on in FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years.

The Wastewater Impact Fee Fund is currently carrying a negative fund balance of $(1,875,888). Projects in the Utilities Department often precede the administration of corresponding fees because these projects often need to be delivered before developments can occur. For example, the addition of a lift station to collect and deliver wastewater to the Water Resource Recovery Facility (WRRF) is necessary before development occurs and fees are collected. Additionally, cost escalation on projects have resulted in higher eligible expenses than originally used in the calculation of the impact fee.

The Wastewater Impact Fee Fund is carrying a negative balance because of project schedules relative to impact fee collection and general escalation in projects costs.

25 506 - Wastewater Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ (3,862,737.00) $ (3,860,944.33) $ (2,397,281.50) $ 394,882.84 $ 2,283,171.80 Prior Period Adjustment (1) $ - $ - $ - $ 875,136.06 $ - Fund Balance Beginning of Year After Adjustment $ (3,862,737.00) $ (3,860,944.33) $ (2,397,281.50) $ 1,270,018.90 $ 2,283,171.80 Interest $ 21,608.97 $ 35,833.68 $ 412.53 $ 11,202.64 $ 4,104.37 Impact Fees $ 2,028,174.00 $ 2,582,196.54 $ 3,834,707.17 $ 3,685,007.64 $ 1,980,885.60 Total Revenue $ 2,049,782.97 $ 2,618,030.22 $ 3,835,119.70 $ 3,696,210.28 $ 1,984,989.97 Expenses $ 2,047,802.95 $ 1,154,367.39 $ 1,042,955.36 $ 2,683,057.38 $ 5,345,304.94 Debt Service $ 187.35 $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ 2,047,990.30 $ 1,154,367.39 $ 1,042,955.36 $ 2,683,057.38 $ 5,345,304.94 Fund Balance End of Year $ (3,860,944.33) $ (2,397,281.50) $ 394,882.84 $ 2,283,171.80 $ (1,077,143.17) Less Loans Receivable (2) $ - $ - $ - $ 798,745.00 $ 798,745.00 Net Fund Balance End of Year $ (3,860,944.33) $ (2,397,281.50) $ 394,882.84 $ 1,484,426.80 $ (1,875,888.17) Fund Ending Balance (6/30/23) $ (1,077,143.17)
Less: Revenues for last five years:

Revenues FY 18-19 $ 2,049,782.97
Revenues FY 19-20 $ 2,618,030.22
Revenues FY 20-21 $ 3,835,119.70
Revenues FY 21-22 $ 3,696,210.28
Revenues FY 22-23 $ 1,984,989.97
Total Revenues for last five years $ 14,184,133.14
Funds Held in Excess of Five Years $ (15,261,276.31) if positive, subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustments is related to Loan Receivable & Accrued Interest (2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

26 Water Impact Fee – Fund 509
The Water Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and Wastewater Capacity and Connection Fee Study for the expansion and improvement of facilities used for water supply, water treatment, and water distribution necessary to serve new development. Specifically, the facilities and improvements to be paid for by these fees is listed in the 2017 Water and Wastewater Capacity and Connection Fee Study. The Wastewater Impact Fee Fund 506 is used to separately collect and account for impact fees and is treated as a pass-through to the Sewer Fund 602. The Water Impact Fee Fund 509 is used to separately collect and account for impact fees collected and is treated as a pass-through to the Water Fund 601.

As of June 30, 2023, the fund balance was $7,934,362.90, in which $1,476,189.03 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $6,458,173.87.

Refer to Exhibit A for detailed information regarding the projects in which these funds were expended on in FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years. 509 - Water Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ (2,660,665.00) $ (1,221,266.39) $ 145,382.10 $ 2,464,392.38 $ 6,739,399.60 Prior Period Adjustment (1) $ - $ - $ - $ 1,624,196.66 $ - Fund Balance Beginning of Year After Adjustment $ (2,660,665.00) $ (1,221,266.39) $ 145,382.10 $ 4,088,589.04 $ 6,739,399.60 Interest $ - $ - $ 59.19 $ 34,684.96 $ 32,425.24
Impact Fees $ 3,745,666.49 $ 3,723,459.97 $ 4,744,361.10 $ 5,160,019.76 $ 3,616,306.55 Total Revenue $ 3,745,666.49 $ 3,723,459.97 $ 4,744,420.29 $ 5,194,704.72 $ 3,648,731.79 Expenses $ 2,306,267.88 $ 2,356,811.48 $ 2,425,410.01 $ 2,543,894.16 $ 2,453,768.49 Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ 2,306,267.88 $ 2,356,811.48 $ 2,425,410.01 $ 2,543,894.16 $ 2,453,768.49 Fund Balance End of Year $ (1,221,266.39) $ 145,382.10 $ 2,464,392.38 $ 6,739,399.60 $ 7,934,362.90 Less Loans Receivable (2) $ - $ - $ - $ 1,476,189.03 $ 1,476,189.03 Net Fund Balance End of Year $ (1,221,266.39) $ 145,382.10 $ 2,464,392.38 $ 5,263,210.57 $ 6,458,173.87 Fund Ending Balance (6/30/23) $ 7,934,362.90
Less: Revenues for last five years:

Revenues FY 18-19 $ 3,745,666.49
Revenues FY 19-20 $ 3,723,459.97
Revenues FY 20-21 $ 4,744,420.29
Revenues FY 21-22 $ 5,194,704.72
Revenues FY 22-23 $ 3,648,731.79
Total Revenues for last five years $ 21,056,983.26
Funds Held in Excess of Five Years $ (13,122,620.36) if positive, subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustments is related to Loan Receivable & Accrued Interest (2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

27 Public Safety Funds

28 Fire Impact Fee – Fund 516
The Fire Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help ensure there are sufficient fire facilities, equipment, and vehicles to serve new development. Fees collected will be used to help renovate Fire Stations 1-4, to construct Fire Station 5, and to replace fire vehicles and equipment, all of which is needed to serve new development through General Plan buildout.

As of June 30, 2023, the fund balance was $214,607.26, in which $78,276.25 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $136,331.01.

There were no expenditures related to this fund in FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years.
516 - Fire Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 66,123.61 $ 200,219.76 Interest $ - $ - $ 10.18 $ (16,497.18) $ 2,710.96
Transfers In (1) $ - $ - $ - $ 85,996.16 $ -
Impact Fees $ - $ - $ 66,113.43 $ 64,597.17 $ 11,676.54 Total Revenue $ - $ - $ 66,123.61 $ 134,096.15 $ 14,387.50 $ -
Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ - $ - $ 66,123.61 $ 200,219.76 $ 214,607.26 Less Loans Receivable (2) $ - $ - $ - $ 78,276.25 $ 78,276.25 Net Fund Balance End of Year $ - $ - $ 66,123.61 $ 121,943.51 $ 136,331.01 Fund Ending Balance (6/30/23) $ 214,607.26
Less: Revenues for last five years:

Revenues FY 18-19 $ 1,062.69
Revenues FY 19-20 $ 84,735.61
Revenues FY 20-21 $ 66,321.46
Revenues FY 21-22 $ 48,099.99
Revenues FY 22-23 $ 14,387.50
Total Revenues for last five years $ 214,607.26
Funds Held in Excess of Five Years $ - if positive, subject to findings Notes
(1) Transfer in from Fund 508: FY 2018/19 = $1062.69 fees; FY 2019/ 20 = $82,440.00 fees + $2295.61 int = $84,735.61; FY 2020/21 = $197.85 int
(2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

Five Year Revenue Analysis Page 104 of 682
29 Police Impact Fee – Fund 517
The Police Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help ensure there are sufficient police facilities and vehicles to serve new development. Fees collected will be used to help construct a new police headquarters and purchase vehicles to maintain the existing ratio of police vehicles to serve new development.

As of June 30, 2023, the fund balance was $237,008.22, in which $56,781.01 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $180,227.21.

There were no expenditures related to this fund in FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years.
517 - Police Impact Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ - $ - $ - $ 72,656.08 $ 245,445.94 Interest $ - $ - $ 10.89 $ (19,445.24) $ 3,214.90
Transfers In (1) $ - $ - $ - $ 102,358.84 $ -
Impact Fees $ - $ - $ 72,645.19 $ 89,876.26 $ (11,652.62) Total Revenue $ - $ - $ 72,656.08 $ 172,789.86 $ (8,437.72) $ -
Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ - $ - $ 72,656.08 $ 245,445.94 $ 237,008.22 Less Loans Receivable (2) $ - $ - $ - $ 56,781.01 $ 56,781.01 Net Fund Balance End of Year $ - $ - $ 72,656.08 $ 188,664.93 $ 180,227.21 Fund Ending Balance (6/30/23) $ 237,008.22
Less: Revenues for last five years:

Revenues FY 18-19 $ 3,046.86
Revenues FY 19-20 $ 99,076.49
Revenues FY 20-21 $ 72,891.58
Revenues FY 21-22 $ 70,431.02
Revenues FY 22-23 $ (8,437.72)
Total Revenues for last five years $ 237,008.22
Funds Held in Excess of Five Years $ - if positive, then subject to findings Notes
(1) Transfer in from Fund 508: FY 2018/19 = $3,046.86 fees; FY 2019/ 20 = $96,344.08 fees + $2,732.41 int = $99,076.49; FY 2020/21 = $235.50 int
(2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

Five Year Revenue Analysis Page 105 of 682
30 In-Lieu Fee Funds

31 Parkland In-Lieu Fee (Quimby) - Fund 501
The Parkland In-Lieu Fee was established in 1994 per the AB 1191 Act, also known as the Quimby Act, and applies to new single-family and multifamily condominium developments. Developers are required to either dedicate land for parks or pay an in-lieu fee as a condition of approval of a tentative or parcel subdivision map. The land, fees, or combination thereof are to be used only for the purpose of developing new or rehabilitating existing neighborhood park, community park or recreational facilities to serve the subdivision in which the fees were collected. Under the Quimby Act, the base standard for parks is 3.0 acres per 1,000 residents and cannot be any higher than 5.0 acres per 1,000 residents. The Parkland In-Lieu fee has been established for the City with a standard of 4.18 acres per 1,000 residents. At the discretion of the City Council, even though this fee is not an impact fee as defined by AB1600, the fund is included in this report for transparency and public engagement.

As of June 30, 2023, the fund balance was $2,632,187.00 in which $143,044.36 is in the form of loans receivable for deferred payment of impact fees related to affordable housing developments and reduces balance to $2,489,142.64. Refer to Exhibit A for detailed information regarding the projects in which these funds were expended on for FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years.
501 - Quimby In-Lieu Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ 2,363,346.76 $ 2,955,243.23 $ 4,136,141.11 $ 2,832,048.67 $ 2,533,779.95 Prior Period Adjustment (1) $ - $ - $ (3,193,263.41) $ - $ - Fund Balance Beginning of Year After Adjustment $ 2,363,346.76 $ 2,955,243.23 $ 942,877.70 $ 2,832,048.67 $ 2,533,779.95 Interest $ 119,458.06 $ 137,452.72 $ 941.09 $ (84,393.63) $ 37,390.95 Impact Fees $ 1,080,178.21 $ 1,249,959.27 $ 1,900,253.58 $ 126,518.63 $ 110,414.52 Total Revenue $ 1,199,636.27 $ 1,387,411.99 $ 1,901,194.67 $ 42,125.00 $ 147,805.47 Expenses $ 34,320.80 $ 206,514.11 $ 12,023.70 $ 340,393.72 $ 49,398.42 Reimbursements $ 573,419.00 $ - $ - $ - $ -
Total Expenditures $ 607,739.80 $ 206,514.11 $ 12,023.70 $ 340,393.72 $ 49,398.42 Fund Balance End of Year $ 2,955,243.23 $ 4,136,141.11 $ 2,832,048.67 $ 2,533,779.95 $ 2,632,187.00 Less Loans Receivable (2) $ - $ - $ - $ 143,044.36 $ 143,044.36 Net Fund Balance End of Year $ 2,955,243.23 $ 4,136,141.11 $ 2,832,048.67 $ 2,390,735.59 $ 2,489,142.64 Fund Ending Balance (6/30/23) $ 2,632,187.00
Less: Revenues for last five years:

Revenues FY 18-19 $ 1,199,636.27
Revenues FY 19-20 $ 1,387,411.99
Revenues FY 20-21 $ 1,901,194.67
Revenues FY 21-22 $ 42,125.00
Revenues FY 22-23 $ 147,805.47
Total Revenues for last five years $ 4,678,173.40
Funds Held in Excess of Five Years $ (2,045,986.40) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment is related to transfer out to other funds 510, 511, 512, and 519. (2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments Loans Receivables reduce the amount of available funding for future spending.

32 Open Space Protection In-Lieu Fee – Fund 502
The Open Space Protection In-Lieu Fee was established in 2005 by Resolution #9728 to address the need to acquire new open space lands, specifically in the Airport Area Specific Plan commensurate with similar land lost to development projects. While the fee has been discontinued FY 2018-19, the fund is still active to properly account for the fees that were collected in the past and that must be used specifically on open space protection projects within the Airport Area Specific Plan. The fund is also utilized to capture funds related to Grants and other Miscellaneous Revenue related to Open Space. The city expects to utilize the remaining funds for open space transactions during FY 2023-24. At the discretion of the City Council, even though this fee is not an impact fee as defined by AB1600, the fund is included in this report for transparency and public engagement.

As of June 30, 2023, the fund balance was $13,097.39. There were no revenues, other than small amount of interest, and no expenditures in FY 2022/ 2023. As of June 30, 2023, there are no funds collected which have been held more than five years.
502 - Open Space Protection In-Lieu Fee Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ 595,255.72 $ (145,072.37) $ 20,310.51 $ 20,315.51 $ 12,949.06 Interest $ 9,905.17 $ (382.67) $ 5.00 $ (466.45) $ 148.33 Other State Grants $ - $ 200,000.00 $ - $ - $ -
Misc. Revenue $ 89,558.77 $ - $ - $ -
In-Lieu Fees $ - $ - $ - $ - $ -
Total Revenue $ 99,463.94 $ 199,617.33 $ 5.00 $ (466.45) $ 148.33 Expenses $ 839,792.03 $ 34,234.45 $ - $ - $ -
Transfers Out $ - $ - $ - $ 6,900.00 $ -
Total Expenditures $ 839,792.03 $ 34,234.45 $ - $ 6,900.00 $ - $ -
Fund Balance End of Year $ (145,072.37) $ 20,310.51 $ 20,315.51 $ 12,949.06 $ 13,097.39 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ (145,072.37) $ 20,310.51 $ 20,315.51 $ 12,949.06 $ 13,097.39 Fund Ending Balance (6/30/23) $ 13,097.39
Less: Revenues for last five years:

Revenues FY 18-19 $ 99,463.94
Revenues FY 19-20 $ 199,617.33
Revenues FY 20-21 $ 5.00
Revenues FY 21-22 $ (466.45)
Revenues FY 22-23 $ 148.33
Total Revenues for last five years $ 298,768.15
Funds Held in Excess of Five Years $ (285,670.76) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

33 Affordable Housing Inclusionary Fee - Fund 505
The Affordable Housing Inclusionary Fee is governed by the City’s Inclusionary Housing Ordinance (Ordinance No. 1346) established in 1999 to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing. Developers either pay a fee or must construct affordable units to meet their inclusionary housing requirements. At the discretion of the City Council, even though this fee is not an impact fee as defined by AB1600, the fund is included in this report for transparency and public engagement.

As of June 30, 2023, the fund balance was $10,275,529.96 in which $9,229,751.16 is in the form of loans receivable for deferred payment of Affordable Housing Loans issued to borrowers and $669,063 is in the form of Doubtful Accounts3 and reduces balance to $1,714,841.80. No expenses were incurred from this fund in FY 22-23, however, there was a pass-through revenue and expense related to a Grant for use on the Anderson Hotel Project in the amount of $1,700,000 and detailed in Resolution No. 11321. Transfers Out were related to recurring annual transfer outs to General Fund, Housing Trust Fund and HouseKeys Contract renewal.

Although $5,257,465.08 of funds collected have been held more than five years, no findings are required since this fee is not considered an impact fee under AB1600, and those revenues are associated with deferred payment of Affordable Housing Loans issued to borrowers.

34 505 - Affordable Housing Fund FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Fund Balance Beginning of Year $ 2,244,801.08 $ 2,835,974.60 $ 8,589,919.11 $ 9,178,296.23 $ 9,784,738.96 Prior Period Adjustments (1) $ - $ 6,049,429.16 $ 417,042.00 $ 165,548.77 $ (420,335.00) Fund Balance Beginning of Year After Adjustment $ 2,244,801.08 $ 8,885,403.76 $ 9,006,961.11 $ 9,343,845.00 $ 9,364,403.96 Interest $ 112,574.21 $ 73,778.48 $ 218,935.12 $ (37,152.17) $ 176,699.03 Misc Revenue $ 12,500.00 $ - $ 153,171.13 $ 419,260.00
Grants $ - $ - $ - $ - $ 1,700,000.00
Housing Loan Repayment $ - $ - $ - $ - $ -
In Lieu Fees $ 1,193,099.31 $ 17,736.87 $ 10,600.00 $ 411,875.00 $ 554,987.90 Total Revenue $ 1,318,173.52 $ 91,515.35 $ 229,535.12 $ 527,893.96 $ 2,850,946.93 $ -
Expenses $ 710,000.00 $ 330,000.00 $ - $ - $ 1,700,000.00 Transfers Out $ 17,000.00 $ 57,000.00 $ 58,200.00 $ 87,000.00 $ 239,820.93 Total Expenditures $ 727,000.00 $ 387,000.00 $ 58,200.00 $ 87,000.00 $ 1,939,820.93 Fund Balance End of Year $ 2,835,974.60 $ 8,589,919.11 $ 9,178,296.23 $ 9,784,738.96 $ 10,275,529.96 Less Loans Receivable (2) $ - $ 6,314,429.16 $ 8,001,471.16 $ 9,670,906.16 $ 9,229,751.16 Allowance for Doubtful Accounts (3) $ - $ (215,000.00) $ (215,000.00) $ (669,063.00) $ (669,063.00) Net Fund Balance End of Year $ 2,835,974.60 $ 2,490,489.95 $ 1,391,825.07 $ 782,895.80 $ 1,714,841.80 Fund Ending Balance (6/30/23) $ 10,275,529.96
Less: Revenues for last five years:

Revenues FY 18-19 $ 1,318,173.52
Revenues FY 19-20 $ 91,515.35
Revenues FY 20-21 $ 229,535.12
Revenues FY 21-22 $ 527,893.96
Revenues FY 22-23 $ 2,850,946.93
Total Revenues for last five years $ 5,018,064.88
Funds Held in Excess of Five Years $ 5,257,465.08 No Findings required - not impact fee per AB1600.

Notes
(1) Prior Period Adjustments in FY 19-20, FY 20-21 and FY 21-22 is related to Loan Receivable & Accrued Interest; in FY 22-23 it reflects separation of BEGIN loan activity into a new Fund.
(2) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments. Loans Receivables reduce the amount of available funding for future spending.
(3) Allowance for doubtful accounts reduces the Loans Receivables and represents the portion of Loans Receivables which may not be realized.

Five Year Revenue Analysis Page 110 of 682
35 Exhibit A
Development Impact Fee Expenditures Report
For Fiscal Year Ended June 30, 2023
Orcutt Area Specific Plan Parks Impact Fee (Fund 511)
Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
1000057/ 2000057 Development Related Parks Improvements Apr-24 Design $ 14,000,000.00 $ 3,701,641.00 26% $ 77,083.28 $ 77,083.28 $ 77,083.28
Citywide Transportation Development Impact Fee (Fund 507) Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
1000073 Transportation Safetey and Operations July 2018 Ongoing $ 3,750,000.00 $ 1,436,250.00 38% $ 3,441.00 $ 3,441.00 1000164/ 2000164 Orcutt/Tank Farm Roundabout Construction August 2021 Complete $ 4,079,812.00 $ 2,475,009.74 61% $ 2,475,009.74 $ 742,572.77 1000502 Active Transportation Plan Implementation July 2021 Ongoing $ 11,000,000.00 $ 2,629,000.00 24% $ 20,200.55 $ 18,678.98 1000537 Transportation Monitoring & Modeling Update July 2018 Ongoing $ 900,000.00 $ 900,000.00 100% $ 40,000.00 $ 39,500.00 2000069 Pedestrian Crossing Improvements May 2023 Complete $ 569,861.00 $ 5,425.26 1% $ 5,304.58 $ 5,304.58 91252 Prado Road Bridge Widening June 2025 Design $ 22,042,320.00 $ 3,875,000.00 18% $ 291,288.40 $ 10,598.00 2091294 Higuera at 50 Higuera Widening June 2024 Design $ 846,450.00 $ 70,543.00 8% $ 69,920.25 $ 69,920.25 91375/ 2091375 Railroad Safety Trail Taft to Pepper - 2018 October 2020 Complete $ 4,563,783.00 $ 250,000.00 5% $ 2,960,984.99 $ 47,219.70 2091610 Higuera Street Widening Bridge to Elks June 2024 Design $ 420,000.00 $ 365,500.00 87% $ 1,855.50 $ 1,855.50 91613/ 2091613 Prado Road Interchange September 2027 Planning $ 72,319,571.00 $ 2,130,000.00 3% $ 1,238,129.10 $ 172,809.42 $ 1,111,900.20
Airport Area Transportation Development Impact Fee (Fund 503) Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
91252 Prado Road Bridge Widening Jun-25 Design $ 22,042,320.00 $ 3,875,000.00 18% $ 504,209.75 $ 2,000.00 91613/ 2091613 Prado Road Interchange Jul-27 Planning $ 72,319,571.00 $ 2,130,000.00 3% $ 9,002.64 $ 9,002.64 $ 11,002.64

36 Los Osos Valley Road Impact Fee Fund (Fund 504)
Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
1000175 Costco LOVR Development Reimbursement N/A N/A $ 4,960,108.00 $ 4,960,108.00 100% $ 4,476,477.00 $ 114,635.00 $ 114,635.00
San Luis Ranch Transportation Development Impact Fee (Fund 514) Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
1000567/ 2000567 Madonna Road Bike Path Landscaping Design Dec-24 Preliminary $ 1,500,000.00 $ 510,000.00 34% $ 24,096.00 $ 24,096.00 $ 24,096.00
Wastewater Development Impact Fee (Fund 506)
Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
91118/ 2091118 Sewer Lift Station and Siphon Replacement - Calle Joaquin (91118) Jan-2022 Complete $ 6,330,516.14 $ 6,330,516.14 100% $ 6,330,516.14 $ 4,340,089.05 91224/ 2091224 Foothill Sewer Lift Station Jul-2026 Planning $ 2,370,000.00 $ 2,370,000.00 100% $ 130,291.02 $ 5,526.91 91369/ 2091369 Sewer Lift Station Replacement - Airport Jul-2024 Planning $ 2,100,000.00 $ 2,100,000.00 100% $ 118,464.16 $ 4,334.25 1000077 WRRF Major Equipment Maintenance Jul-2018 Ongoing $ 85,960.66 $ 13,753.71 16% $ 13,753.71 $ 8.64 1000083 Sewer Lift Station - New Buckley Station Oct-2021 Ongoing $ 188,940.11 $ 188,940.11 100% $ 188,940.11 $ 21,763.83 2000083 Buckley Sewer Lift Station [1000083] Oct-2021 Ongoing $ 1,801,818.89 $ 1,801,818.89 100% $ 128,106.00 $ 128,106.00 2000607 WRRF Major Equipment Maintenance [1000077] Jul-2018 Ongoing $ 910,837.06 $ 145,733.93 16% $ 13,256.28 $ 13,256.28 N/A 2008 Suntrust Loan - Tank Farm Lift Station N/A Debt Service $ 1,097,260.00 $ 1,097,260.00 100% $ 913,480.00 $ 181,130.00 N/A 2009 State Infrastructure Bank (CIEDB) Loan - Tank Farm Lift Station N/A Debt Service $ 10,897,350.11 $ 10,897,350.11 100% $ 2,772,222.06 $ 552,309.95 N/A 2014 US Bank Wastewater Lease Installment Agreement - WRRF Energy Efficiency Project N/A Debt Service $ 6,788,417.81 $ 1,086,146.85 16% $ 494,225.28 $ 98,780.03 $ 5,345,304.94

37 Water Development Impact Fee (Fund 509)
Project Number Project Name
Construction
Start Date Project Status
Total Estimated
Project Cost (1)
Estimated Cost
Funded by Fees (1)
% of Project
Funded by Fees
Fees Expended
to Date (2)
Fees Expended FY
22-23
91506 Groundwater Well Development Program (91506) Mar-2022 Complete $ 178,826.87 $ 69,742.48 39% $ 69,742.48 $ 22,816.83 99653 WTP Major Equipment Maintenance Jul-2018 Ongoing $ 697,452.86 $ 111,592.46 16% $ 111,592.46 $ 29,292.11 1000034 Reservoir Maintenance Jul-2018 Ongoing $ 915,537.24 $ 146,485.96 16% $ 146,485.96 $ 7,187.31 1000528 Recycled Water Broad Street - Tank Farm to Aerovista Deferred Preliminary $ 23,969.00 $ 3,835.04 16% $ 3,835.04 $ 3,835.04 1000530 Recycled Water Tank Jul-2021 Preliminary $ 34,394.50 $ 5,503.12 16% $ 5,503.12 $ 4,100.16 1000542 Water Treatment Plant Major Facility Maintenance Jul-2018 Ongoing $ 72,867.39 $ 11,658.78 16% $ 11,658.78 $ 5,842.33 1000573 Recycled Water Systems Retrofits Jul-2022 Preliminary $ 14,438.12 $ 2,310.10 16% $ 2,310.10 $ 2,310.10 2000034 Water Storage Tank Maintenance [1000034] Jul-2018 Ongoing $ 4,657,920.89 $ 745,267.34 16% $ 10,564.98 $ 10,564.98 2000150 SGMA GSP (Groundwater Basin Management) [1000150] Jul-2018 Ongoing $ 476,871.11 $ 185,979.73 39% $ 9,843.75 $ 9,843.75 2000542 WTP Major Facility Maintenance [1000542] Jul-2018 Ongoing $ 1,383,963.66 $ 539,745.83 39% $ 4,601.95 $ 4,601.95 2001022 WTP Chemical System Maintenance [91731] Jul-2018 Ongoing $ 8,397.85 $ 1,343.66 16% $ 1,153.76 $ 1,153.76 2001026 WTP Major Equipment Maintenance [99653] Jul-2018 Ongoing $ 688,968.20 $ 110,234.91 16% $ 4,786.26 $ 4,786.26 N/A 2012 Water Revenue Refunding Bond N/A Debt Service $ 2,853,000.00 $ 656,190.00 23% $ 656,190.00 $ 131,560.00 N/A 2018 Refunding Bond (Refund 2005, 2006, 2009 Bonds) N/A Debt Service $ 453,796.83 $ 131,601.08 29% $ 42,725.99 $ 7,903.85 N/A 2018 Refunding Water Bond (Refund 2006 Bonds) N/A Debt Service $ 15,089,952.22 $ 4,376,086.14 29% $ 1,290,848.64 $ 257,085.00 N/A 2020 CIEDB (I-Bank) Loan - Water Treatment Plant Energy Efficiency N/A Debt Service $ 18,813,733.25 $ 3,010,197.32 16% $ 457,225.06 $ 153,088.50 N/A Nacimiento Pipeline N/A Debt Service $ 101,805,531.78 $ 39,704,157.39 39% $ 9,042,592.20 $ 1,797,796.56 $ 2,453,768.49
Notes:
(1) Data From City of San Luis Obispo Financial Plans.
(2) Expenditures are only from July 1, 2018 to current due to implementation of new accounting system.

38 Exhibit B
Fiscal Year 2022/ 2023 Development
Impact Fee Schedule and Amounts
Parkland Fees Quimby Act Parkland In-Lieu Fee
Parkland Impact Fee
Park
Improvement
Impact Fee
Parkland Development Fees (Orcutt Area)
Residential Subdivision
Single Family (per Dwelling Unit) $4,571.04 n/a $4,177.91 $10,022.76 Multifamily Condominium (per Dwelling unit) $3,291.55 n/a $3,008.67 $7,456.26 Residential, No Subdivision Single Family (per Dwelling Unit) n/a $4,571.04 $4,177.90 n/a Multifamily Apartment (per Dwelling unit) n/a $2,113.61 $3,008.68 $7,456.26 Land Use Category
Water Development
Impact Fee(Citywide)
Wastewater Development
Impact Fee
(Citywide)
Single Family & Multifamily (per Dwelling Unit Size)
≥ 1,201 sq. ft. (fees are per unit) $17,142.70 $15,921.10 801 to 1,200 sq. ft. (fees are per unit) $13,714.16 $12,811.66 451 to 800 sq. ft. (fees are per unit) $11,999.89 $11,211.11 ≤ 450 sq. ft. (fees are per unit) $5,172.89 $4,775.18 Mobile/Manufactured Home (per Dwelling Unit) Mobile/Manufactured Home $10,345.76 $9,553.24 Non-Residential (by Meter Size) 3/4" meter $17,242.93 $15,921.10 1" meter $29,312.41 $27,065.58 1.5" meter $58,626.29 $54,131.17 2" meter $93,112.18 $85,973.38 3" meter $183,426.23 $170,355.50 4" meter $286,282.38 $265,882.11 6" meter $572,566.20 $531,764.23 Police (Citywide) Fire (Citywide) Residential Single Family Per unit $989.48 $842.83 Multifamily Per unit $712.48 $607.31 Non-Residential Office (fees are per sq. ft.) $0.65 $0.56 Service (fees are per sq. ft.) $0.35 $0.31 Retail (fees are per sq. ft.) $0.35 $0.31 Industrial (fees are per sq. ft.) $0.27 $0.22
Institutional (fees are per sq. ft.) $0.35 $0.34 Lodging (fees are per room) $197.00 $167.39 Specialty (fees are per ADT) (2) Requires Calculation Requires Calculation FY 2022-23 Rate
FY 2022-23 Rate
Land Use Category Emergency Services Impact Fees
FY 2022-23 Rate

39

Item 5e
Department: Utilities
Cost Center: 6001
For Agenda of: 1/23/2024
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Shane Whittington, Utilities Business Manager SUBJECT: AUTHORIZATION TO PURSUE CONSTRUCTION FINANCING FOR THE SANTA ROSA – STENNER CREEK TO HIGHLAND 30” PIPELINE
REPLACEMENT PROJECT, PROJECT NO. 2001048

RECOMMENDATION

1. Authorize the City Manager or their designee to pursue and apply for construction financing for the Santa Rosa - Stenner Creek to Highland 30-inch Pipeline Replacement Project (Project 2001048) and submit requisite application documents to the Drinking Water State Revolving Fund (DWSRF), California Infrastructure and Economic Development (I-Bank), and/or private lenders; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Manager to apply for Construction Financing and appointing the Utilities Director as the Authorized Designee to certify documents for the Santa Rosa – Stenner Creek to Highland 30” Pipeline Project” authorizing staff to submit financing application documents and designating the City Manager or their designee to be the authorized representatives to execute any certificates or documents necessary to apply for financing for this project.

REPORT-IN-BRIEF
The project replaces the existing pipeline, installed in 1964, from the Water Treatment Plant to Santa Rosa Road. The project is identified in the 2023-25 Financial Plan and 5- year CIP Plan, with $230,000 identified in fiscal year 2023-24 for project design, and a construction cost of $8,230,000 identified in 2025-26. In order to provide a balanced approach to funding water infrastructure replacement projects, the Utilities Department is requesting authorization to apply for loan financing for the construction portion of the project cost. When establishing recommended 2023-24 and 2024-25 water rate increases, the City’s rate consultant identified that this project would require loan financing in order to not significantly deplete the City’s Water Fund and result in the need for higher water rate increases.

Item 5e
The Drinking Water State Revolving Fund (DWSRF), California Infrastructure and Economic Development Bank (I-Bank), and private lenders are all being considered as options for financing this project. Due to the long lead times associated with public financing like I-Bank and DWSRF, staff are seeking authorization to (1) pursue and apply for construction financing, and (2) designate the Utilities Director or designee as the authorized representative on all application materials, prior to budget for this project being appropriated in the 2025-27 Financial Plan.

Approval of these recommendations is not required by City policy but is required as part of the application processes for both DWSRF and I-Bank financing. Submittal of a financing application does not obligate the City to accept a loan. City staff will return to the City Council for consideration of the future agreement or contract.

POLICY CONTEXT
The recommended action is consistent with the City’s Capital Financing and Debt Management policy which requires that the City’s debt management practices are “fiscally prudent, consistent with State and Federal law, and reflective of the most opportune financing strategies to deliver on the needs and goals of the community and the City organization.”
In accordance with this policy, the City has set enterprise fund rates at levels needed to fully cover debt service requirements as well as operations, maintenance, administration, and capital improvement costs. Debt financing of this project was included in the 2023- 24 rate increase Council adopted through Resolution 11427 and consistent with Proposition 218.

Capital improvements to City water distribution infrastructure to improve the reliability of water transmission supports General Plan Water and Wastewater Element Goal A 2.1 to “ensure a long-term, reliable water supply to meet both current and future water demand associated with development envisioned by the General Plan.”

DISCUSSION
Background
The water transmission pipeline extending from the Water Treatment Plant to Santa Rosa Street is not constructed of standard material types or sizes. If a leak occurs, it would be difficult to repair without putting thousands of residents out of water service and triggering boil water notices across the eastern side of the City. Installed in 1964 using concrete cylinder pipe (CCP) material, the pipeline does not meet current seismic standards and needs replacement within the next five years. The existing approximately 1.7-mile long, 27-inch CCP will be replaced with a new 30-inch seismic restrained ductile iron pipe for the distribution of treated water into the Edna Saddle, Foothill, and Downtown services areas. The new alignment will follow the Environmental Protection Agency (EPA)- recommended design guidelines for “lifeline services” providing reliable water resources during catastrophic events.

Item 5e
Previous Council or Advisory Body Action
On June 6, 2023, Council adopted Resolution 11427 and 11429, which approved the 2023-25 Financial Plan, the fiscal year 2023-24 budget, and the proposed water rates for 2023-24 and 2024-25. These documents did three things as it pertains to this project:

1. Appropriated $230,000 for the design and study of the Santa Rosa - Stenner Creek to Highland 30” Pipeline in fiscal year 2023-24.

2. Forecasted $8,230,000 for the construction and construction management of the Santa Rosa - Stenner Creek to Highland 30” Pipeline in fiscal year 2025-26.

3. Approved water rates that included debt financing requirements for this project.

Analysis and Project Timeline
By authorizing staff to pursue construction financing for the Santa Rosa - Stenner Creek to Highland 30-inch Pipeline Replacement Project before the budget is appropriated in the 2025-27 Financial Plan, staff will be able to consider financing options with longer application processes but lower interest rates. This is outlined below.

Item 5e
In a preliminary analysis, staff considered interest rates, other fees, terms, and debt covenant requirements in other existing Water Fund debt. Based on this analysis, staff will apply for DWSRF funding if the recommendations in this report are authorized. If the City is not selected to receive financing from DWSRF, staff will pursue funding through IBank or private capital. Estimates of available financing opportunities are summarized in the table below.

Staff will continue to explore other financing opportunities related to this project and will pursue alternative financing if it is more favorable to the City.

Staff will return to Council for approval and adoption of the California Environmental Quality Act (CEQA) determination for the project, approve plans and specifications, authorize advertisement and awards of bids, approve financing agreements, and all other pertinent major project milestones.

Public Engagement
The City conducts an extensive amount of public outreach during the Financial Plan development process, providing the community with opportunities to give input on future CIP projects. During project design and construction, staff will ensure that outreach opportunities are provided to impacted stakeholders such as the California Department of Transportation (Caltrans, California Polytechnic State University (Cal Poly), and City residents.

Project Implementation Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DWSRF Application 
I-Bank Application 
Private Lender Application 
Environmental Impact Report 
Project Design 
Bidding and Award (Construction) 
Construction 
 Forecasted DWSRF agreement execution date (if approved)  Forecasted I-Bank agreement execution date (if approved)  Forecasted private lender agreement execution date (if approved)  Forecasted certification of Environmental Impact Reports  Forecasted completion of project design
 Forecasted award of project construction contract
 Forecasted construction completion
2023-24 2024-25 2025-26 2026-27
Lender Estimated Interest Rate Term Other Fees
DWSRF 2-2.5% 30 years
I-Bank 4-4.5% 20 years 1% origination fee
Private Financing 5.5-6% 20 years
All estimates were quoted to the City as of August 2023.

Item 5e

CONCURRENCE
The Finance Department concurs with the recommendations in this report.

ENVIRONMENTAL REVIEW
The scope of the action is limited to the preparation and submittal of a financing application, which does not commit the City to the execution of an agreement or contract, nor implementation of the project. Therefore, the recommended action and adoption of the proposed Resolution is not a "project" under the California Environmental Quality Act (CEQA), because the action does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, pursuant to Title 14, California Code of Regulations, Section 15378. Staff will return to the City Council for consideration of the CEQA determination upon completion of the design plans and prior to implementation of the project.

FISCAL IMPACT
Budgeted: N/A Budget Year: 2025-26
Funding Identified: N/A
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Water Fund $0 $0 $0 $0
Total $0 $0 $0 $0
There is no fiscal impact associated with this recommended action. Submission of construction financing applications does not obligate or commit the City to accept loan agreements from any lender, but allows this phase of the financing process to begin. Staff will return to Council for approval before entering into any financing agreement. Below is a summarized estimate of what the loan debt may total if incurred at various interest rates and terms.

Item 5e
These debt obligations are estimated from preliminary interest rates quoted to the City from the identified lenders and early engineer estimates on the cost of the project. They do not include other fees, indirect administrative costs, or any cost escalations since the project was first estimated; however, the table above provides an estimated fiscal impact.

ALTERNATIVES

1. Do not adopt the proposed resolution. The resolution is required to submit the financing application for DWSRF and I-Bank. Should Council choose to not adopt the Resolution, the City would not be able to apply for these loan programs.

2. Do not authorize staff to pursue construction financing. Construction financing for this critical infrastructure project has been identified as necessary in order to not significantly deplete the City’s Water Fund and contribute to higher water rate increases for City customers. For these reasons, Staff does not recommend this action alternative.

ATTACHMENTS
A - Draft Resolution to pursue Construction Financing for Project No. 2001048 10-year term 20-year term 30-year term

1.00% $ 8,689,404.90 $ 9,121,360.83 $ 9,566,909.15

1.50% $ 8,924,132.84 $ 9,587,248.12 $ 10,280,715.58

2.00% $ 9,162,173.24 $ 10,066,395.80 $ 11,024,065.81

2.50% $ 9,403,496.21 $ 10,558,617.39 $ 11,796,299.50

3.00% $ 9,648,070.69 $ 11,063,705.47 $ 12,596,655.13

3.50% $ 9,895,864.58 $ 11,581,433.24 $ 13,424,281.77

4.00% $ 10,146,844.72 $ 12,111,556.10 $ 14,278,251.48

4.50% $ 10,400,977.03 $ 12,653,813.36 $ 15,157,571.94

5.00% $ 10,658,226.52 $ 13,207,929.85 $ 16,061,199.32

5.50% $ 10,918,557.36 $ 13,773,617.72 $ 16,988,050.71

6.00% $ 11,181,932.96 $ 14,350,578.08 $ 17,937,016.25
Debt Financing Scenarios | Santa Rosa - Stenner Creek to Highland 30” Pipeline Forecasted DWSRF Loan
Forecasted I-Bank Loan
Private Capital Loan

R ______
RESOLUTION NO. _____ (2024 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO

APPLY FOR CONSTRUCTION FINANCING AND APPOINTING THE

UTILITIES DIRECTOR AS THE AUTHORIZED DESIGNEE TO CERTIFY DOCUMENTS FOR THE SANTA ROSA – STENNER CREEK TO
HIGHLAND 30” PIPELINE PROJECT
WHEREAS, the City of San Luis Obispo has identified critical infrastructure needs, specifically the construction of the Santa Rosa – Stenner Creek to Highland 30-inch Pipeline Project; and
WHEREAS, the City Council approved the 2023-25 Financial Plan, which appropriated $230,000 for the design and study of the Santa Rosa – Stenner Creek to Highland 30-inch Pipeline Project in fiscal year 2023-24 and forecasted construction in fiscal year 2025-26 to cost $8,230,000; and
WHEREAS, it is in the best interest of the City and in accordance with the City’s Capital Financing and Debt Management policies to seek external financing to fund the construction of said project; and
WHEREAS, it is a requirement of the Drinking Water State Revolving Fund and the California Infrastructure and Economic Development Bank financing application processes to include Council resolutions authorizing the submission of application documents and designating an authorized representative; and WHEREAS, the City Council acknowledges the necessity of designating an authorized representative to certify all pertinent documents related to the financing application process.

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

SECTION 1. The City Council hereby authorizes the City Manager or designee to apply for construction financing for the Santa Rosa – Stenner Creek to Highland 30-inch Pipeline Project.

SECTION 2. The Utilities Director, or designee, is hereby appointed as the authorized designee to certify all pertinent documents related to the financing application process for the Santa Rosa – Stenner Creek to Highland 30-inch Pipeline Project.

Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 3. The City Council hereby determines that the preparation and submittal of a financing application is not a “project” as defined by the California Environmental Quality Act.

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

Item 5f
Department: Administration
Cost Center: 1005
For Agenda of: 1/16/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: DECLARATION OF CERTAIN REAL PROPERTY AS EXEMPT SURPLUS (610 AND 614 MONTEREY STREET, A PORTION OF 972 NIPOMO
STREET, AND A PORTION OF CITY PARKING LOT NO. 14) UNDER THE

CALIFORNIA SURPLUS LAND ACT

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring pursuant to Government Code Section 54221(b) that certain real property owned by the City located at 610 and 614 Monterey Street, a portion of 972 Nipomo Street and a portion of City Parking Lot 14, identified as Assessor’s Parcel Nos. 002-412-011, 002-412-012, 002-412-002 (portion) and 002-412-004 (portion) is Exempt Surplus Land.”

POLICY CONTEXT
The California Surplus Land Act (“SLA” or the “Act”) requires that local government agencies notify and offer “surplus land” for sale or lease to affordable home developers and certain other entities before selling or leasing the land to any other individual or entity.

Under the Act, the City Council must formally declare land “surplus” or “exempt surplus” at a public meeting, supported by written findings, prior to disposition of the land in accordance with City policies and procedures. Surplus land is defined as “land owned in fee simple for which a local agency’s governing body takes formal action at a regular public meeting declaring land to be surplus and not necessary for a local agency’s use.” (Cal. Gov. Code § 54221(b)(1)). “Agency use” includes, but is not limited to, land that is being used, and is planned to be used pursuant to a written plan adopted by the local agency’s governing board, provided that “agency’s use” shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development (Cal. Gov. Code § 54221(c)(1),(2)).

Item 5f
On October 11, 2023, the Governor signed Assembly Bill No. 480 amending Government Code Section 54234, which specifies that where a local agency has entered into an approved Exclusive Negotiating Agreement prior to September 30, 2019, for surplus property, and where the disposition of that property occurs before December 31, 2027 (extended from December 31, 2022) the local agency is only required to comply with the Act’s requirements as they existed on December 31, 2019 (declaration of land as “surplus or “exempt surplus”), not the Act’s current noticing and availability requirements (the “Grandfathering Exemption”).

This City of San Luis Obispo’s policies and procedures for real property acquisition and disposal are found in Section 475 of the Financial Management Manual, which further incorporates City Charter Article IX, Section 906 and City Council Resolution No. 10052 (2009 Series).

DISCUSSION
Background
For many years, the City has leased buildings, land, and facilities along the lower Monterey Street corridor to non-profit organizations for public benefit purposes. In 1993, the City leased the former City/County library site located at 888 Morro Street to the San Luis Obispo Little Theatre (now known, and hereafter referred to, as the San Luis Obispo Repertory Theatre, or “SLO REP”) for interim theater operations (the “Morro Site”). During the same timeframe, City Council directed staff to identify a permanent site for SLO REP’s theater operations and suggested that currently identified as a portion of City-owned Parking Lot 14, City-owned 610 and 614 Monterey Street, and a portion of 972 Nipomo Street, could be an appropriate site for such permanent relocation (the “Monterey Site”).

The Morro Site, where SLO REP’s theatre currently exists, is located next door to City Hall and has long been considered for a future expansion for other public uses, such as an expansion of City Hall. Such planned re-use is documented in the Facilities Master Plan, adopted by Council in 2018, which identifies the Morro Site as a future expansion/annex to City Hall for ongoing public, municipal uses.

Staff have been working diligently with SLO REP over the past five years in preparation for the long-standing plan for SLO REP to construct and operate a new theatre building on the Monterey Site, while vacating the existing theatre at the Morro Site (all owned by the City). On May 22, 2019, the City entered into an Exclusive Negotiating Agreement with SLO REP for the Monterey Site, as allowed for under Section 475 of the Financial Management Manual, that sets forth certain parameters and project milestones as conditions precedent to entering into a long-term lease for the new theatre site.

Item 5f
The Monterey Site is not needed at this time for “agency use” as defined by the Act, but under the provisions of Assembly Bill No. 480, as codified under Government Code 54234(a)(1), Exclusive Negotiating Agreements entered into prior to September 30, 2019, are not subject to the SLA’s current noticing and availability requirements so long as the land is disposed of prior to December 31, 2027. The City and SLO REP continue to make progress in identifying deal points for SLO REP’s prospective lease of the Monterey Site and it is reasonable to anticipate that a final lease will be completed by December 31, 2027, subject to further Council consideration and action.

As such, given the requirements of the California Surplus Land Act, as described in the Policy Context section, above, it is prudent that the City Council formally declare the Monterey Site as “exempt surplus” property pursuant to the Grandfathering Exemption.

The City and SLO REP entered into the Exclusive Negotiating Agreement on May 22, 2019, prior to the cut-off date of September 30, 2019, and as the present intention is to dispose of the property via lease prior to December 31, 2027.

Upon Council’s adoption of the Resolution formally declaring the Monterey Site as “exempt surplus” land under the Act, the City is required to provide the Department of Housing and Community Development (HCD) written notification of its declaration and findings in a form prescribed by HCD. Within 30 days of receipt of the written notification and findings, HCD shall notify the City if the department has determined that the local agency is in compliance with the Act.

Previous Council Action
On December 4, 2018, the City Council approved the Exclusive Negotiating Agreement with SLO REP. On September 15, 2023, the City Council approved a prior resolution declaring the subject property as “exempt surplus” pursuant to a different statutory exemption, but at the suggestion of HCD, staff recommends Council declare the Monterey Site as “exempt surplus” pursuant to the Grandfathering Exemption given its direct applicability to the executed ENA with SLO REP.

Public Engagement
Any member of the public may comment on this item either in writing in advance of the City Council meeting or by providing public comment during the hearing of this item.

CONCURRENCE
The City’s Public Works Department Parking Services Division concurs with the recommendations contained herein.

Item 5f

ENVIRONMENTAL REVIEW
The recommended action is not considered a Project under the California Environmental Quality Act, Section 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 N/A - - -
State - - - -
Federal - - - -
Fees - - - -
Other: - - - -
Total N/A N/A N/A N/A
The recommended action is administrative only and does not have a fiscal impact in and of itself.

ALTERNATIVES
Council could decide not to adopt the Resolution declaring the subject City owned real property as “exempt surplus” and instead engage in a surplus property Notice of Availability process under the Act. This action is not recommended because this transaction is specifically determined to be in conformance with the timelines specified under Government Code Section 54234 and is consistent with prior plans and objectives for both properties guided by City Council action.

ATTACHMENTS
A - Draft Resolution declaring certain real property as Exempt Surplus Land (Gov. Code §54221(b)

R ______
RESOLUTION NO. _____ (2024 SERIES)

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

OBISPO, CALIFORNIA, DECLARING PURSUANT TO GOVERNMENT
CODE SECTION 54221 THAT CERTAIN REAL PROPERTY OWNED BY
THE CITY LOCATED AT 610 AND 614 MONTEREY STREET, A
PORTION OF 972 NIPOMO STREET, AND A PORTION OF CITY
PARKING LOT NO. 14 IS NOT NECESSARY FOR THE CITY’S USE AND

IS EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE
SECTION 54234
WHEREAS, the City of San Luis Obispo is the owner in fee simple of that certain real property located at 610 and 614 Monterey Street, a portion of 972 Nipomo Street, and a portion of City Parking Lot No. 14 identified as Assessor’s Parcel Nos. 002-412- 011, 002-412-012, 002-412-002 (portion) and 002-412-004 (portion) (the “Monterey Site”); and
WHEREAS, the City of San Luis Obispo is the owner in fee simple of that certain real property located at 888 Morro Street and identified as Assessor’s Parcel No. 002- 321-003 (“Morro Site”); and
WHEREAS, pursuant to Section 54221(b) of the Surplus Land Act, Government Code Sections 54220-54234 (the “Act”), agency-owned land must be declared either “surplus land” or “exempt surplus land” prior to disposition of the land consistent with an agency’s policies or procedures, including lease of the land; and WHEREAS, “surplus land” is land owned in fee simple by the City for which the City Council takes formal action in a regular public meeting declaring the land is surplus and is not necessary for “agency use”; and
WHEREAS, the Act provides that “agency’s use” shall include, but not be limited to, land that is being used or is planned to be used pursuant to a written plan adopted by the local agency’s governing board for agency work or operations, provided that “agency’s use” shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development; and WHEREAS, under the Act, surplus land for which a local agency has entered into an Exclusive Negotiating Agreement prior to September 30, 2019 and is disposed of prior to December 31, 2027 (pursuant to recently enacted AB 480) is “exempt surplus” land (Government Code Section 54234) (the “Grandfathering Exemption”); and

Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, from November 1992 through the present, the San Luis Obispo Repertory Theatre (“SLO REP”), a long-standing community partner, has held a lease of the City-owned facilities located at the Morro Site for use as an interim theater location pending identification of a permanent location and adequate funding for construction of new theater facilities; and
WHEREAS, the Morro Site has long been identified as a location necessary to accommodate the City’s expanding workforce and operations and the City’s planned use of the Morro Site is documented in the City Council adopted Facilities Master Plan (2018), which identifies the Morro Site as a future expansion/annex to City Hall for ongoing public, municipal uses; and
WHEREAS, the Monterey Site is not needed for “agency use” by the City as defined by the Act; and
WHEREAS, at its December 4, 2018, meeting, pursuant to Section 475 of the City’s Financial Management Manual, the City Council authorized staff to enter into an Exclusive Negotiating Agreement with SLO REP dated May 22, 2019, for the purpose of negotiating the terms and conditions of an agreement for a ground lease of the Monterey Site for SLO REP as a permanent site to construct and operate a new theater building, in turn making the Morro Site available for the City’s re-use; and WHEREAS, the Grandfathering Exemption, codified in Section 54234 of the Act, provides that if a local agency entered into an Exclusive Negotiating Agreement to dispose of property before September 30, 2019, and the disposition is completed by December 31, 2027, such property is “exempt surplus” and the provisions of the Act as it existed on December 31, 2019, shall apply to the disposition of the property; and WHEREAS, the City and SLO REP have been working diligently to identify deal points for SLO REP’s lease of the Monterey Site, and it is reasonable to anticipate that the City and SLO REP will be able to execute a lease by December 31, 2027, subject to further Council consideration and action, in satisfaction of Section 54234.

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

SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution.

SECTION 2. Findings. Pursuant to Government Code Sections 54221(b) and 54234, the City Council hereby declares that the Monterey Site is not necessary for the City’s use and is “exempt surplus land” pursuant to the Grandfathering Exemption.

Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 3. Environmental Review. The passage of this resolution will not cause a direct physical change in the environment, nor a reasonably foreseeable indirect physical change in the environment, and therefore, this action does not constitute a “project” under the California Environmental Quality Act (“CEQA”). (CEQA Guidelines § 15378(a).)
SECTION 4. City staff are hereby authorized and directed to provide a copy of this Resolution to the California Department of Housing and Community Development (“HCD”) in the form and manner required by HCD at least 30 days prior to the disposition of the Monterey Site.

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

Item 5g
Department: Community Development
Cost Center: 4003
For Agenda of: 1/23/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Nate Stong, Supervising Civil Engineer
SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3089 PHASES 2 & 3, AVILA RANCH, 175 VENTURE DRIVE (FMAP-0562-2022)

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Final Map for Tract 3089 Phases 2 & 3, Avila Ranch, including an addendum to the Final Environmental Impact Report modifying the timing of Mitigation Measure TRANS-11, and authorizing the Mayor to execute a Subdivision Agreement in a form subject to the approval of the City Attorney (175 Venture Drive, FMAP-0562-2022).”

REPORT-IN-BRIEF
A vesting tentative map for Avila Ranch (Tract 3089) was approved by the City Council on September 19, 2017, by Resolution No. 10832. The Phase 1 Final Map was approved by the City Council on December 4, 2018, by Resolution No. 10968. Phases 2 & 3 will create 121 single-family residential lots, 1 multi-family lot, and various lots for parks and open space.

The City and the developer have entered into a Development Agreement (DA), adopted by City Council on October 3, 2017, by Ordinance No. 1639. A Community Facilities District (CFD) was approved by Ordinance No. 1642 for Tract 3089 to close the gap between anticipated general fund revenue to be generated by the development and projected costs to provide services to the development.

Phase 2 transportation mitigation projects include the construction of two bicycle bridges over Tank Farm Creek located north and south of Buckley Road as required by the project’s Final Environmental Impact Report (FEIR) Mitigation Measure TRANS-11 and Condition of Approval #109. An Addendum to the FEIR has been prepared to address a minor change to the timing of a portion of the mitigation measure and modify the timing of the south-separated bicycle bridge from Phase 2 to Phase 4 to create consistency with the timing of the bicycle lanes that will be installed on Buckley Road in Phase 4, and to minimize construction impacts on properties to the south where a construction easement and right-of-way acquisition is needed to complete the improvements.

Item 5g
A Phase 3 Affordable Housing Agreement will be recorded concurrently with the Final Map to implement the original 2017 Affordable Housing Plan adopted as Exhibit G of the Avila Ranch Development Agreement. The draft Phase 3 Affordable Housing Agreement includes location changes for the affordable units in the multi-family portion of the development, as explained further in the report.

POLICY CONTEXT
This item supports the development of 121 housing units, which directly advances a Major City Goal for additional housing needs. City Council approval is required for subdivision final maps pursuant to Government Code 66458(a)1.

DISCUSSION
Tract 3089 Phases 2 & 3 Avila Ranch (FMAP-0562-2022) is located at 175 Venture Drive as shown on the Vicinity Map provided as Attachment B.

Background / Previous Council Action
A vesting tentative map for Tract 3089 was approved by the City Council on September 19, 2017, by Resolution No. 10832 (2017 Series). The approved tentative map (Attachment C) showed a total of 429 lots consisting of 401 single-family lots, nine multifamily lots for up to 322 units, 11 park lots, two open space lots, two commercial lots, two public facilities lots, and two lots for right-of-way purposes.

At that same meeting, an Ordinance to adopt a Development Agreement was introduced and a Resolution of Intention to establish the Community Facilities District (CFD) was approved. The City and the developer entered into a Development Agreement (DA), adopted by City Council on October 3, 2017, by Ordinance No. 1639 (2017 Series). The final steps to implement the CFD occurred at the November 21, 2017 Council meeting where the City Council adopted Ordinance No. 1642 (2017 Series) establishing a Special Tax for the CFD. The CFD was required to close the gap between anticipated general fund revenue to be generated by the development and projected costs to provide services to the development, such as police and fire, and to maintain the public infrastructure within Tract 3089 including parks, streets, sidewalks, parkways, open space, and storm drainage systems.

The previous phase, Phase 1 final map was approved by Resolution No. 10968 (2018 Series) on December 4, 2018. Phase 1 created 179 single-family residential lots, three lots for 125 multi-family units, a lot for an interim fire station, and various lots for parks and public facilities.

1 66458(a) The legislative body shall, at the meeting at which it receives the map or, at its next regular meeting after the meeting at which it receives the map, approve the map if it conforms to all the requirements of this chapter and any local subdivision ordinance applicable at the time of approval or conditional approval of the tentative map and any rulings made thereunder. If the map does not conform, the legislative body shall disapprove the map.

Item 5g
Phasing
At the time of tentative map submittal, the subdivider proposed to develop the project as shown on the Phasing Plan provided as Attachment D. The conditions and mitigation measures were developed based on this phasing plan. The subdivider is not required to adhere to the phasing plan, but creating lots out of phase could result in subsequent environmental review and new or modified conditions in order to properly mitigate the impacts and provide for orderly development.

The Tract 3089 Phases 2 & 3 map is creating a total of 126 lots consisting of:
 121 single-family residential units (Lots 205 to 325)  One reconfigured lot for multi-family (Lot 327, a merger of Lots 185 and 188 from Phase 1)
 Two public park lots (Lots 326 and 330)
 One lot for public open space (Lot 329)
 One lot for Creek purposes (Lot 328)
Minor Corrections to Approved Tentative Map
City Municipal Code Section 16.10.160 grants the Community Development Director the authority to approve minor corrections to an approved tentative map or conditions of approval if all the following are true:

1. No lots, units or building sites are added or deleted; and

2. The proposed changes are consistent with the intent and spirit of the original tentative map approval; and

3. The proposed changes are consistent with the zoning regulations, the building code, the General Plan, and the Subdivision Map Act.

Under the authority listed above, the Community Development Director has approved the following minor corrections for Tract 3089:

1. Revision of the lot numbering from tentative map to final map so that the numbering would be consecutive on the final map as required by Section 16.14.040.H of the San Luis Obispo Municipal Code.

Although the tentative map shows up to 723 residential units being constructed, the resolution approving the tentative map and the Development Agreement both state that only 720 residential units are approved.

2. Revision to the timing of a portion of Condition of Approval #109 which reiterates Mitigation Measure TRANS-11, discussed below. The condition and mitigation measure requires bicycle bridges on each side of Buckley Road at Tank Farm Creek. The timing for installation of the south bicycle bridge as provided in Condition of Approval #109 is modified for consistency with the FEIR Addendum to modify Mitigation Measure TRANS-11 as discussed below.

Item 5g
Modification to Timing of Mitigation Measure TRANS-11
The Avila Ranch FEIR Mitigation Measure TRANS-11 and Condition of Approval #109 established an obligation for the project to install two separated bicycle bridges on each side of Buckley Road at Tank Farm Creek to improve access to safe bicycle routing along Buckley Road. These improvements were required to address a transportation policy impact related to the City’s Bicycle Transportation Plan, which identified future plans to provide continuous bicycle facilities along Buckley Road. The timing of this mitigation measure was not developed based on any quantitative threshold of significance but with the general intent to provide for orderly development and infrastructure improvements as the development builds out consistent with the Bicycle Transportation Plan.

As originally approved, construction of these bridges was required prior to Phase 2 of the Avila Ranch project and was envisioned to be constructed simultaneously with the Buckley Road Extension, which was also required prior to Phase 2. Avila Ranch has since completed the Buckley Road Extension, choosing to advance this street extension with Phase 1 of the development. Avila Ranch has also substantially completed the preliminary/conceptual design for the bicycle bridge on the south side of Buckley Road, which is being processed through San Luis Obispo County permitting review but has encountered challenges acquiring the necessary right-of-way for construction.

One of the primary challenges associated with the right-of-way acquisition are concerns regarding the functionality and safety of constructing the bicycle bridge with Phase 2, when the bridge would connect back to a segment of Buckley Road with no existing bike lanes east of the bridge. Instead, there has been a request to defer construction of this bicycle bridge until Phase 4 of the Avila Ranch development, as the project is required to construct additional road widening on Buckley east of the bridge with Phase 4, which will provide 8-foot-wide shoulders/bicycle lanes further to the east. Deferral of the bicycle bridge to Phase 4 would result in a more continuous bicycle facility along this segment and limit the overall duration of construction impacts to the private property owner on the south side of the roadway.

Both City and County Public Works staff have considered the Avila Ranch representative’s formal request to defer construction of the remaining bicycle bridge on the south side of Buckley Road to Phase 4 of the development and concur with this request. Based on staff’s review, this modification would not result in any new or exacerbated impacts as identified in the approved project EIR and the project would retain the obligation to improve bicycle facilities on Buckley Road for consistency with the City’s adopted Bicycle Transportation Plan (now Active Transportation Plan). An Addendum to the Final EIR has been prepared to address the timing modification discussed above and is included as Attachment E of this report for Council consideration.

For clarity, staff is recommending that the requirement to construct the bicycle bridge on the north side of Buckley Road remain a condition tied to Phase 2 of the development, as originally approved. Construction of this facility would not require the acquisition of offsite right-of-way.

Item 5g
Community Facilities District
The Community Facilities District (CFD) for Avila Ranch was established by Council Ordinance No. 1642 (2017 Series) for Tract 3089 to fund both services and infrastructure maintenance. The CFD closes the gap between anticipated general fund revenue generated by the development and projected costs to provide services to the development, such as police and fire, and to maintain the public infrastructure including parks, streets, sidewalks, parkways, open space, and storm drainage systems.

Maintenance of water and sewer infrastructure in Tract 3089 will be funded the same as the rest of the citywide system via the enterprise program.

This is the City’s first CFD established for the purpose of ongoing maintenance. The CFD also helps to cover the cost of City services associated with residential development such as Fire, Police, and infrastructure maintenance. A property tax exchange with the County of San Luis Obispo was established for this property when it was annexed and was based on the County’s master tax exchange agreement for commercial land. This tax exchange does not provide the City with any property tax increment as the property is developed.

Therefore, the CFD ensures adequate funding is available for the City to maintain the public facilities and services that will serve this new neighborhood. The funds for the CFD will be collected by the County with the regular property tax assessments, beginning with the issuance of the building permit on each lot. The County disperses the funds to the City twice per year.

Affordable Housing
Within the entire Avila Ranch Development Plan area, there is a requirement to provide inclusionary housing to be met through a combination of construction of affordable units, dedication of land, and payment of in-lieu fees. In addition, the DA includes design and development strategies that serve to provide a range of additional affordable housing in excess of standard inclusionary ordinance requirements, as demonstrated in Table 1.

These are contractual requirements of the Affordable and Workforce Housing Plan (Exhibit G in the Council-adopted DA).

An Affordable Housing Agreement for Phases 2 & 3 will be recorded concurrently with the recording of the Phases 2 & 3 Final Map. Phase 3 includes the multi-family portion of the Avila Ranch development and contains a large portion of the project’s affordable and inclusionary housing. The original 2017 Affordable and Workforce Housing Plan (Exhibit G in the Council-adopted Development Agreement) identified the following affordable components in Phase 3:
 24 lower-income for-rent units, to be constructed by an affordable housing developer
 8 low-income for-rent units within the market rate apartment development  8 moderate-income two-bedroom/1-bath for-rent units within the market rate apartment development
 3 moderate-income two-bedroom/1-bath for-sale units within the detached R-2 zoned area
 5 workforce for-sale units within the detached R-2 zoned area

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Avila Ranch has submitted a separate application for development review (ARCH-0197- 2023) that includes a density bonus request, which will be reviewed by the Planning Commission for the development of the R-4 zoned parcels recorded with the Phase 1 Final Map. The R-4 application proposes to construct a 60-unit, 100% affordable housing project on Lot 186 located on the west side of Earthwood Lane north of Venture Drive as shown in Figure 1 below, which has been dedicated to an affordable housing developer, and 85-units on Lots 185 and 188 as the market rate development portion of the project located on the east side of Earthwood Lane opposite Lot 186. Lots 185 and 188 are proposed to be merged on the Phases 2 & 3 Final Map and renumbered as Lot 327.

Figure 1: High Density (R-4) Multi-family Parcels Within Avila Ranch Lot 186: 100% Affordable Housing to be developed by Affordable Housing Developer Lots 188 & 185 (To Be Merged as Lot 327): Market Rate Apartments In compliance with the DA, the required 24-lower income for-rent units would be developed on Lot 186 as part of the 100% affordable project on that lot. The applicant also proposes transferring the 8 low-income and 8 moderate-income for-rent units from the market rate R-4 apartment site to the affordable housing site. In exchange for providing these 16 affordable for-rent units on the affordable housing site, instead of the market rate R-4 site as originally contemplated, the applicant and the affordable housing provider are proposing to provide an additional 19 moderate-income units (and one manager’s unit) as part of the affordable housing project on Lot 186 by utilizing Density Bonus Law. This results in a net increase in total affordable housing units in the project compared to what was originally contemplated.

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Table 1: Avila Ranch Affordable Housing Requirements
Required by
Inclusionary
Ordinance
Required by
Avila Ranch
Development
Agreement
Provided /
Currently
Proposed
 Dedication of parcel to
affordable housing developer
at no cost

1.0 acres 1.2 acres 1.2 acres
(completed)
 Construction of lower-income
rental units on land dedicated
to affordable housing
developer
22 units 24 units 24 units
 Construction of low-income
rental units
none 8
Within market
rate rentals
8 On affordable
housing site
 Construction of moderateincome rental units
8 8
Within market
rate rentals
8 On affordable
housing site
 Density Bonus – additional
units on affordable housing
site (in process)
none none 19 moderate
income units
 Moderate-income for-sale
units
45 units 27 units 27 units
 Workforce for-sale units none required 25 units 25 units (some
completed)
 Commercial parcels -
Payment of in-lieu fees or
build affordable units
Construct 4
units or pay inlieu fees
Construct 4
units or pay inlieu fees
Construct 4
units or pay inlieu fees
 Down payment assistance for
Workforce units ($20,000 per
unit)
none required $500,000
provided
$500,000
provided
(some
completed)
 Local preference program none required provided provided  Range of housing sizes and
types
none required provided provided
Total:
71 Affordable
units
71 Affordable
units
25 Workforce
units
90 Affordable
units
25 Workforce
units

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Section 8.06 of the Development Agreement allows for flexibility on the provisions of the DA and minor modifications of the details of the Development Plan. City staff is in support of the proposed location change for the 16 affordable for-rent units as it would create a net benefit of an additional 19 deed-restricted affordable units within the project. This would create a substantial positive impact in meeting the City’s affordable housing goals.

While the 16 affordable for-rent units will no longer be intermixed within the market rate units, the affordable and market-rate apartment buildings have been designed to match in style and quality and will present as a unified multi-family development.

Timing requirements in both the Phase 1 and the draft Phase 3 Affordable Housing Agreements ensure that the for-rent affordable units will be constructed early in the project and not left to the last phase, as required by the DA. The 40 for-rent affordable units on the affordable housing site fulfill a majority of the project’s inclusionary housing requirement, and therefore, completion of these units is required to fulfill Avila Ranch’s affordable housing obligations. The draft Phase 3 Affordable Housing Agreement (Sections 5.4 and 5.5) includes a timing milestone that requires building construction to commence on the affordable site prior to of issuance of a building permit for Avila Ranch’s 500th unit, and construction of the affordable for-rent units to be substantially complete prior to the issuance of a building permit for Avila Ranch’s 550th unit. These timing requirements were developed to give the affordable housing developer enough time to acquire financing and permits for the project and to create measurable milestones to ensure the affordable development moves forward in a timely manner.

Section 8.06 of the Development Agreement allows for flexibility on the provisions of the DA and minor modifications of the details of the Development Plan. City staff is in support of the proposed location change for the 16 affordable for-rent units as it would create a net benefit of an additional 19 deed-restricted affordable units within the project. This would create a substantial positive impact in meeting the City’s affordable housing goals.

While the 16 affordable for-rent units will no longer be intermixed within the market-rate units, the affordable and market-rate apartment buildings have been designed to match in style and quality and will present as a unified multi-family development. Timing requirements in both Phase 1 and the draft Phase 3 Affordable Housing Agreements ensure that the for-rent affordable units will be constructed concurrently with the for-rent market rate units.

The Affordable Housing Agreement is the implementation tool to record covenants and achieve the goals of the original 2017 Affordable and Workforce Housing Plan. City staff recommends that the proposed modifications to the location of the 8 low- and 8 moderateincome multi-family affordable units be approved through recordation of this agreement.

A draft of the Phase 3 Affordable Housing Agreement is provided as Attachment F for Council consideration, and a finding is included in the attached resolution stating that the Phase 3 Affordable Housing Agreement is in substantial conformance with 2017 DA.

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Parks
Section 7.03 of the DA requires the subdivider to dedicate land in excess of that ordinarily required by the City to construct public parks in south San Luis Obispo, an area that presently has a deficiency of park area. In particular, Tract 3089 shall provide 18.25 acres of public parkland, 1.76 acres in excess of City requirements. As shown on the Park Layout provided in Attachment G, a total of nine park lots labeled Park A through Park I are proposed in Tract 3089. The Parks and Recreation Commission (PRC) reviewed the conceptual plans for Parks A through I on January 4, 2017, and recommended approval to the Council. The PRC also reviewed and approved detailed park plans for Parks A, B, and C at that time. Parks D and E are proposed to be constructed in Phases 2 & 3. Phases 2 & 3 provide sufficient parkland and park improvements to meet City requirements based on the projected population and housing onsite, so there would be no "in-lieu" park fees needed. Project-related fees, taxes and assessments are described in Section 5.04 of the Development Agreement. Parks are not among the identified fee-generators in this section.

Off-Site Transportation Improvements
Per the subdivision conditions of approval, mitigation measures, and the DA, Tract 3089 is required to complete multiple off-site transportation improvements to mitigate for the increase in traffic generated by the development. Many of these improvements were constructed with Phase 1 of the tract, including construction of the Buckley Road Extension, extension of the northbound right-turn lane at the Higuera/South intersection, addition of bicycle lanes on Vachell Lane, and improvements to the S. Higuera/Tank Farm intersection. The Subdivider has also paid fair share mitigation fees with Phase 1 for additional off-site projects that are not triggered solely by this development but will ultimately be needed upon build-out of the City, including contributions towards future improvements on the Buckley Road east of Vachell and the Buckley/Highway 227 intersection.

Phases 2 & 3 are subject to additional required improvements. The developer will enter into the draft Subdivision Improvement Agreement provided as Attachment H, which includes bonding requirements if the improvements are not completed at time of map recordation. The Phase 2 & 3 requirements are listed below:
 Phase 2 intersection improvements to Higuera/Vachell, including installation of a permanent median and left-turn access restrictions [Condition #104]  Construction of sidewalk on the east side of South Higuera Street from Los Osos Valley Road to City Limits [Condition #111]
 Buckley Road Bicycle/Pedestrian Bridges at Tank Farm Creek (North bridge to be constructed with Phase 2, south bridge to be deferred to Phase 4) [Condition #109 and MM TRANS-11]
 Fees:
o Buckley/Vachell Fair Share Mitigation – Funds fair share contribution towards future intersection control upgrades (roundabout or signal). Fees are due with map recordation of each phase based on the percent of total unit count in that

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phase. The total for full build-out is $107,250, so the amount due with the Phase 2 & 3 map is the percent of total units included in Phases 2 & 3 multiplied by $107,250.
o Citywide and Los Osos Valley Road Subarea Transportation Impact Fees (TIF).

Fees are vested into the TIF rate schedule that is in effect at the time of final map recordation for each phase. Fees are paid with each building permit issuance while accounting for available fee credits remaining for eligible infrastructure improvements constructed by Avila Ranch. o The additional multi-family units added with the separate Phase 3 density bonus request will also trigger additional fair share mitigation fees for future intersection improvements at Buckley/Highway 227, Buckley/Vachell, and Buckley/Davenport.

There are other improvements identified in the conditions, mitigation measures, and the DA where the Subdivider is required to pay a fee for the project’s fair share of the improvement instead of constructing the improvement. Some of these fees are for future intersection improvements along Buckley Road, the extension of the Bob Jones Trail, improvements at the S. Higuera/Los Osos Valley Road intersection, and the recent improvements to the Los Osos Valley Road interchange. Other required fair share fees have been moved into the Citywide TIF, so payment of the current Citywide TIF by the Subdivider would satisfy those requirements. Unless otherwise allowed in the project approvals, the fair share fees will be paid at map recordation.

Reimbursement Agreements
As outlined in the Development Agreement and the conditions of approval, some of the infrastructure improvements being constructed with Tract 3089 are eligible for reimbursement either through impact fee credits, or through payments from other developers, and in some cases, via general fund contributions. All local funding contributions towards reimbursement obligations to Avila Ranch have already been allocated in previous Financial Plans. To facilitate these reimbursements, a Public Reimbursement Agreement was approved by the City Council on December 4, 2018 by Resolution 10968, and a Private Reimbursement Agreement was approved on June 18, 2019 by Resolution 11022.

Wetlands
Phases 2 & 3 will not be disturbing any wetlands, therefore no easement documents for wetlands will need to be prepared.

Agricultural and Open Space Conservation
To compensate for the loss of onsite agricultural lands and to meet the open space objectives of the General Plan, Section 7.04 of the Development Agreement requires Tract 3089 to dedicate at least 50 acres of on-site open space and/or agricultural land and preserve at least 50 acres of offsite open space and/or agricultural land. The Subdivider has dedicated an easement for 30 acres of on-site agricultural land with the Phase 1 map. Phases 2 & 3 will dedicate 3.6 acres of open space, located on lots 328 and 329, but will not need to dedicate any agricultural lands at this time. The balance of

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on-site agricultural lands and open space will be dedicated in future phases as shown on the approved tentative map. It should also be noted that the Avila Ranch project opted to satisfy some its open space conservation requirements through an in-lieu fee, which has been received and is paid in full.

The resolution approving the final map authorizes the City Clerk to accept an offer of dedication in fee for Lots 328 and 329 for Open Space purposes and Lots 326 and 330 for Public Park Purposes with the signature of the Clerk on the Final Map. The acceptance of the fee offers will provide for all potential uses of that site, including drainage, pedestrian and bicyclist access, public utilities, and bridges.

Approving the Final Map
Although tentative maps typically have an initial two-year life per Municipal Code Section

16.10.150, approval of a DA allows for that lifespan to be extended pursuant to Government Code Section 66452.6(a)(1). Section 8.04 of the DA extends the life of the tentative map to the later of (i) the expiration or earlier termination of the Development Agreement or (ii) the date upon which the tentative map would expire under the laws of the State of California. According to Section 1.03.1 of the DA, the duration of the DA could extend to the year 2047.

The final map for Tract 3089 Phases 2 & 3 (Attachment I) is ready to be approved. There may be minor revisions still required for technical accuracy and condition compliance, to be completed before the map records. Pursuant to Section 16.14.080 of the Municipal Code, the Public Works Director has determined that the final map is in substantial compliance with the tentative map and approved modifications thereof. California Government Code Section 66474.1 states that “a Legislative body shall not deny approval of a final or parcel map if it has previously approved a tentative map for the proposed subdivision and if it finds that the final or parcel map is in substantial compliance with the previously approved tentative map.” The approval of a final map is considered a ministerial action.

Appropriate securities will be submitted prior to map recordation to guarantee completion of the required subdivision improvements as shown in the Subdivision Agreement (Attachment G). The Subdivision Agreement is still in draft form as some details still need to be confirmed with the Subdivider such as the amount and timing of fee payments, bonds, and specific language in the agreement. The resolution approving the final map also authorizes the Mayor to sign the Subdivision Agreement requiring the Subdivider to complete the subdivision improvements.

Policy Context
The proposed action approving the final map is consistent with the policies set forth in the previously referenced Municipal Code and California Government Code sections.

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Public Engagement
Public notification for the tentative map, environmental document, and underlying entitlements occurred with the Planning Commission hearings on June 28, 2017, June 29, 2017, July 12, 2017, and August 9, 2017 and at the City Council on August 9, 2017, and September 19, 2017. Approval of the final map is considered a ministerial action, so a public hearing to approve the final map for this Phases 2 & 3 map is not required.

CONCURRENCE
The Director of Public Works, the Director of Parks and Recreation, the Fire Chief, and the Natural Resources Manager concur with the recommended action.

ENVIRONMENTAL REVIEW
The Avila Ranch Development Plan (ARCP) and associated Final Environmental Impact Report (FEIR) were approved and certified by the City Council on September 19, 2017, pursuant to Resolution No. 10832. All mitigation measures adopted as part of the ARDP FEIR that are applicable to the project are carried forward and applied to the project to effectively mitigate the impacts that were previously identified.

An Addendum to the Final EIR has been prepared pursuant to CEQA Guidelines Sections 15164 and 15162. An addendum to a previously certified EIR is appropriate when minor technical changes or additions are necessary and none of the conditions described in CEQA Guidelines Section 15162 have occurred. The Addendum addresses updated timing related to the construction of the south bicycle bridge on Buckley Road. The south bicycle bridge will be constructed in Phase 4, concurrent with the bicycle lanes and road widening on Buckley (Attachment H).

The FEIR and associated Addendum constitute the complete environmental determination for the project. The final map is substantially in conformance with the tentative map evaluated with this prior environmental determination.

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

FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-Ongoing
Funding Identified: Yes