San Luis Obispo City Council
May 7, 2024

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bikeshare can replace vehicles for short daytime trips for both transit and car commuters. A bikeshare can also provide the ancillary benefit of providing an option for users who are interested in making trips in SLO by bike but have security concerns about parking their personal bike in public areas. Given the data from the bikeshare program operating in neighboring Santa Cruz, which shows usage ranging from 18,000 to over 30,000 trips monthly, there is promise that similar results are possible in San Luis Obispo.

2. Community Vibrancy: Bikeshares can increase community connectedness, increase pedestrian foot traffic, positively impact commercial areas, provide visitors with a novel and enjoyable way to explore new areas, and have a beneficial impact on users’ health. A 2019 study in Washington D.C. found that 20% of surveyed businesses adjacent to bikeshare dock locations reported increased sales and 70% identified a positive impact on the area associated with bikeshare.

Of bikeshare users in D.C., 85% stated they were more likely to patronize a store near a docking location.

3. Equity: Bikeshare has the potential to provide daily access to electric bicycles for community members of low income and aligns with the Active Transportation Plan Goal 4.10 and 4.12 to address the cost barrier to bicycle access, which may be especially relevant given the recent spike in popularity of electric bicycles that still have a high cost compared to acoustic bicycles. These ATP goals are also echoed in the League of American Bicyclists Bicycle Friendly Community Report Card “Key Steps to Platinum” recommending launch of a bikeshare system to increase bicycle accessibility. Further, a 2023 study in Journal of Transport Geography found that increasing bikeshare utilization “among low-income individuals, people of color, and non-auto owners may enable them to connect to employment and other opportunities without needing to own or maintain a car. Bikeshare has the potential to provide low-income and car-free community members and commuters with a new accessible mode of transportation to serve some of their mobility needs.”

4. Mode Shift: A 2020 study from Word Resources Institute found that depending on the city, between 17% and 45% of total bike share miles traveled replaced motorized miles traveled. Among surveyed users, 11% switched from private cars, 14% from taxis or ride-hailing services and 6% from motorcycles. According to a 2015 study at U.C. Berkeley, 25 to 52 percent of surveyed users in Montreal, Toronto, Washington, DC, and Minneapolis stated they drove less often after becoming a bikeshare member. The study makes clear that “In suburbs and smallto medium-sized cities, where public transit can be sparse, bikesharing complements transit and provides better access to and from existing lines. In these places, bikesharing serves as an important first- and last-mile connector and increases public transit use.” Additionally, a 2022 bikeshare report from the UK found that bikeshare encouraged new or infrequent riders to bike, with 60% of survey respondents reporting that bikeshare “was a catalyst to them cycling for the first time in at least a year or ever.”

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Bikeshare RFP Rating Criteria
Staff from the Office of Sustainability and Natural Resources have drafted a Bikeshare RFP in collaboration with Cal Poly staff (Attachment A). The matrix below summarizes the primary specifications as codified in the Request for Proposal (RFP). The full set of criteria are a part of Section B in the attached RFP. If the City decides to proceed with soliciting proposals, the RFP includes related rating criteria based on the following preferred specifications:

Criteria Preferred Specifications (as defined in RFP)
Equipment
Type
The Council’s stated preference is for a dock-based Class 1 electric pedal-assist Bikeshare System. There are additional evaluative points available for the provision of bicycles that serve the needs of those with children or mobility challenges, such as recumbent bicycles, trikes, cargo bikes or bikes with child seats.

System
Scale
The system should have enough bikes and stations to be a reliable, ondemand mobility option for residents, employees, students, and visitors.

The desired initial deployment for the 3-year pilot project contract period includes a minimum of 10 docking locations and 100 bikes, with an ideal range of at least 20 docking locations and 175 bikes. The selected Operator should be capable of, responsible for, and highly motivated to plan and implement expansion of the System in the future as interest and funding permits. Additionally, the Operator is encouraged to create a straightforward process wherein additional local agencies and/or private parties can pay a pre-negotiated fee for a Bikeshare System docking station to be installed at their site/s.

Equity Proposals shall describe proposed strategies to make the Bikeshare accessible to all community members, ensuring that access is provided for underserved and underrepresented community members and for persons that typically have experienced barriers to active transportation.

Strategies that improve access for low-income communities, such as cash payment and/or free or reduced pricing to those who qualify, are highly desired. If applicable, proposals shall describe options for bicycles that serve the needs of those with children or mobility challenges, such as recumbent bicycles, trikes, cargo bikes or bikes with child seats.

Maintenance
and Repair
Maintenance and repair responsibilities apply to all hardware and software components of the System. The Operator will be responsible for developing and implementing a regular inspection, maintenance, and repair and/or replacement schedule that keeps the System in continuous compliance with agreed upon in-service standards defined in the Service Level Agreement. These activities shall include inspecting, cleaning, and removing graffiti from System structures on a timely basis, as well as removal of debris in and around the System components and structures. Sustainability and battery recycling plans are important to the Agencies. Proposals that establish a commitment to utilize local labor and businesses for maintenance and repair support are encouraged.

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Criteria Preferred Specifications (as defined in RFP)
Public
Safety
Operator will be required to promote safe and lawful operation of the shared bicycles, as well as ensure that the bicycles are maintained in safe working condition. Operator is required to promptly remove bicycles left on sidewalks or elsewhere within the public right of way, and shall proactively avoid any City and Cal Poly staff involvement in remedying these issues. In times of emergencies, however, the Operator should be prepared to provide the Agencies with codes or other means to move locked bikes. Operator shall provide a broad approach to protecting public safety that could include outreach and education, minimum age requirements, programs that promote or facilitate helmet use, and/or speed governance bike controls to reduce speeds in sensitive areas. Operator shall minimize opportunities for theft and vandalism.

Operator shall identify who is responsible for any incidents of theft and/or vandalism, how these are handled, any involvement of law enforcement, and applicable user fees.

Open Data The Operator shall provide open content data that will allow third party developers to provide applications to assist users in finding bicycles, and stations, and comparing travel and usage information consistent with reports from other U.S. systems. This data shall be anonymized.

Transit
Integration
Additional points will be allocated to potential vendors that demonstrate an ability to integrate bikeshare with transit, which may include seamless transfers between SLO Transit/RTA bus service and bikeshare trips, combined subscriptions for monthly bus and bikeshare passes, and other forms of payment and membership integration.

Next Steps
Pending a successful procurement process, staff would return to City Council in late summer 2024 for approval on the next set of contractual agreements with the chosen bikeshare operator. These contracts include a service level agreement, which sets forth specific contractual obligations for operation of a bikeshare program in San Luis Obispo, and a license agreement to facilitate vendor installation of docking stations on City property. If City Council authorizes the execution of said contracts, OOSNR staff would support the chosen vendor in performing community outreach and stakeholder engagement about bikeshare docking locations and system characteristics in the fall of 2024. This project timeline would enable a soft launch of a bikeshare program in the summer of 2025 and an official launch in fall of 2025 in tandem with the start of Cal Poly’s 2025-26 academic year.

Previous Council or Advisory Body Action

1. On July 12, 2012, City Council adopted the 2012 Climate Action Plan, which included Transportation and Land Use Implementation Action 3.3 to “Research opportunities for a bike-share program near parking facilities.”

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2. On December 9, 2014, City Council adopted the 2014 Land Use and Circulation Element update, which introduced new modal shift objectives to support the increased use of alternative forms of transportation and decreased dependence on single-occupant automobiles. Through this update the City set ambitious goals to increase bicycle mode share to 20% and to reach 18% for walking, carpools, and other forms of transportation by 2035 (Policy 1.7.1). The element also states that “the City shall evaluate a bikeshare program in coordination with Cal Poly and other educational institutions” (Policy 4.2.1).

3. On September 5, 2017, City Council adopted the Downtown Concept Plan, which included implementation action 37, to “Work with interested partners on the feasibility of a bikeshare program.”

4. On June 5, 2018, City Council adopted the 2019-2021 Financial Plan and Major City Goal Work Program, which included a Sustainable Transportation task under Emerging Trends and Technology to “Investigate Potential Shared Mobility Policy” in reference to a potential micro mobility program.”

5. On October 1, 2019, City Council held a study session on the topic of shared bike systems. Council provided clear direction to staff to continue with development of a citywide docked electric pedal-assist bikeshare program.

6. On June 1st, 2020, City Council adopted the 2021-2023 Financial Plan and Major City Goal work program, which included Task 4.4.v, to “Continue to monitor trends in the Micro mobility industry and feasibility of future SLO Bikeshare Program.”

7. On August 18th, 2020, City Council adopted the 2020 Climate Action Plan for Community Recovery (2020 CAP) which includes action items related to active transportation and mobility. The 2020 CAP includes Foundational Action 2.2 to “Launch micro mobility program by 2021.”

8. On December 8, 2020, City Council directed staff to pause the bikeshare effort and instead monitor the industry for any favorable change, a decision guided by the ATC recommendation on November 19, 2020. Additional decision-making factors were that the marketplace for bikeshare declined considerably in 2020-21 due to the COVID-19 pandemic, and that results from a San Luis Obispo Rapid Bikeshare Assessment produced by Alta Planning + Design indicated that it would be difficult to launch a bikeshare program without significant City investment and staff resources.

9. On February 2, 2021, City Council adopted the Active Transportation Plan, which includes Goal 3.7 Bikeshare and Micromobility, which directs staff to “Implement a bikeshare program in partnership with Cal Poly to maximize convenient access to bicycling as a form of transportation. If supported by the City Council, explore additional micromobility transportation options to increase sustainable transportation choices in San Luis Obispo [...]”

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10.On December 13th 2022, City Council adopted the 2023-27 CAP Work Program, which includes task Connected 2.2.A, scheduled for the 2023-25 Financial Plan, to “Reassess the viability of launching a Micro Mobility Program and launch if feasible.”

11.On February 21, 2023, City Council adopted the Parking and Access Management Plan, which includes Strategy 1.B.2 to “Implement a bikeshare program.”

12.On June 6, 2023, City Council adopted the 2023-25 Financial Plan and Major City Goal Work Program, which includes task 4.3.i, to “Reassess the viability of launching a citywide bikeshare system, with ongoing coordination with Cal Poly as called for in CAP Connected Communities Task 2.2.A and the Parking Access and Management Plan Strategy 1.B.1. Solicit potential bikeshare system operators if staffing resources allow and this can be done without diverting resources from delivering priority active transportation infrastructure projects.”

13.On July 18, 2023, City Council adopted the Economic Development Strategic Plan, which includes Action 2.5.4 directing staff to “Support the development and expansion of multimodal transportation solutions that encourage access to and around Downtown as well as between residential and commercial corridors [including] integrating different modes of transportation, such as shared bikes […].

14.On January 23, 2024, City Council received and filed the Transit Innovation Study.

The study is focused on achieving the City’s transit mode split objectives. As part of the “Service Enhancements” section, the study recommends launching a bikeshare program and notes, “Bikeshare programs can play a major role in addressing first-last mile transit concerns and offer relatively affordable rides to the general public for trips within a predefined geographic area.” Active Transportation Committee (ATC) Recommendations

1. On November 19, 2020, the Active Transportation Committee (ATC) heard an agenda item on Bikes Share Services. The recommendation from the ATC was to “not pursue shared micro mobility at this time but to continue monitoring it in cities similar to San Luis Obispo including partnering with Cal Poly (if there is interest) to survey interest and demand in San Luis Obispo.” The ATC also recommended removing bikeshare from the Major City Goals for FY 2021-23 and stated their preference for the City to focus staffing and financial resources on implementing the highest-priority bicycle and pedestrian infrastructure projects before committing significant resources to bikeshare.

2. On December 3, 2020, the Active Transportation Committee recommended adoption of the DRAFT Active Transportation Plan, which included Goal 3.7 Bikeshare and Micromobility, to “Implement a bikeshare program in partnership with Cal Poly to maximize convenient access to bicycling as a form of transportation. If supported by the City Council, explore additional micromobility transportation options to increase sustainable transportation choices in San Luis Obispo.”

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3. On November 3, 2022, the Active Transportation Committee received a presentation from Office of Sustainability and Natural Resources staff on the 2023- 2027 Climate Action Plan Work Program. The ATC’s feedback was generally supportive of the CAP Work Program but noted that the primary focus of Public Works Mobility Services staff should be to prioritize implementation of Tier 1 Active Transportation Network projects before consideration of advancing bikeshare.

4. On April 11, 2024, the Active Transportation Committee received a presentation from Office of Sustainability and Natural Resources staff on the issuance of a joint RFP with Cal Poly for a public bikeshare program. The ATC unanimously voted to recommend to City Council to authorize the release of an RFP for a bikeshare system. The ATC also provided feedback that was incorporated into the RFP including requirements for Class 1 ebikes, for front and back lights to be automatically and continuously on during bike operation, and to include wayfinding signage as an evaluative criterion in the additional points section.

Promotional Coordinating Committee

1. On April 10, 2024, the Promotional Coordinating Committee (PCC) received a presentation from the Office of Sustainability and Natural Resources staff on the issuance of a joint RFP with Cal Poly for a public bikeshare program. The PCC unanimously voted to recommend to City Council to authorize the release of an RFP for a bikeshare system.

Public Engagement
Bikeshare is repeatedly affirmed as a City work effort and is prioritized by community members during outreach events, including at the 2022 Connected Community Stakeholder Forum and the 2022 CAP Community Climate Party.

The Connected Community Stakeholder Forum solicited feedback on the implementation of the City’s Active Transportation Plan, including the viability and priority components of a micro mobility bikeshare program. A bikeshare program aligned with the expectations detailed in the attached RFP honors the recommendations of the forum. Participants included representatives from Bike SLO County, the Lumina Alliance, SLO Chamber of Commerce, SLO County YIMBY, RideOn, San Luis Obispo Council of Governments (SLOCOG), Mass Transportation Committee, Active Transportation Committee, and the Cal Poly Associated Students Inc. (ASI). The forum recommendations included a draft action to “Launch Micro Mobility Program by 2024,” in order to reach the City’s mode share targets and connect key community nodes by an accessible bikeshare program.

The forum specifically called for (1) a combination of bicycle model types to increase accessibility, (2) the siting of bike dock locations near transit hubs, commercial corridors, community institutions and major employers; and (3) equity commitments including free or reduced-priced programs for low income community members paired with extensive outreach, marketing and basic bicycle education, and (4) integration into any existing and future digital transportation apps or user platforms.

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Additionally, a bikeshare program would serve multiple current community priorities including reducing greenhouse gas emissions, alleviating downtown parking constraints, and offering the possibility of accessible and equitable mobility options for low-income community members. Pending a successful procurement, staff would conduct significant additional community outreach to inform the bikeshare docking locations, aesthetics, and other program components.

CONCURRENCE
In support of active transportation infrastructure deployment, the Office of Sustainability and Natural Resources is the primary author of this report. Staff have supported Public Work’s review of this report and the RFP, and Public Works concurs with the report’s recommendation. Additionally, Cal Poly staff have also reviewed and approved the RFP and concur with staff’s recommendation.

On April 10, 2024, the Promotional Coordinating Committee reviewed the RFP and unanimously voted to recommend to City Council to authorize the release of an RFP for a bikeshare system.

On April 11, 2024, the Active Transportation Committee reviewed the RFP and unanimously voted to recommend to City Council to authorize the release of an RFP for a bikeshare system.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the releasing the RFP or executing the MOU with Cal Poly as these actions do not constitute a “project” under CEQA guidelines sec. 15378.

Launching a bikeshare system, including the installation of docking stations and signs, qualifies for an exemption under CEQA guidelines section 15301 (Existing Facilities).

Section 15301 exempts projects for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use.

Section 15301(c) specifically identifies existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety), and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes as examples of appropriate improvements that can qualify for this exemption.

Additionally, the project would be exempt under CEQA Section 15304 (Minor Alterations to Land) which exempts minor trenching where surface is restored; 15305 (Minor Alterations in Land Use Limitations) which exempts issuance of minor encroachment permits; and 15311 (Accessory Structures) which exempts on-premise signs.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State $0 $0 $0 $0
Federal $0 $0 $0 $0
Fees $0 $0 $0 $0
Other: $0 $0 $0 $0
Total $0 $0 $0 $0
The City proposes issuing an RFP for a system operator that will run a bikeshare program in the City of San Luis Obispo and on Cal Poly campus at no cost to either organization.

This model is operating successfully in Santa Barbara and Santa Cruz and staff anticipate vendor interest in this operational model.

Pending Council approval, the Office of Sustainability and Natural Resources would provide the staffing resources required from the City to launch the program including managing procurement and contracting, supporting community outreach, and coordinating input from City departments and community stakeholders. Public Works Mobility Services Division staff would serve as the staff contact and liaison to the chosen operator once the bikeshare program is operational. From procurement through operations, a bikeshare program would be delivered and operated with existing budgeted resources and staffing.

ALTERNATIVES

1. Approve staff’s direction with changes. If Council provides a request for edits to the RFP, staff requests that they be detailed and specific.

2. Direct staff to delay release of the RFP. If Council provides this direction staff requests that they provide specific feedback on what circumstances would need to change prior to being ready to implement a bikeshare program.

3. Direct staff to not release the RFP and cease evaluation of a bikeshare program.

Staff does not recommend this because it is inconsistent with adopted plans and policies.

ATTACHMENTS
A – Request for Proposals for a bikeshare system serving the City of SLO and Cal Poly.

B – Memorandum of Understanding between the City of SLO and Cal Poly.

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 / Qualifications for a City of San Luis Obispo Bikeshare Program The City of San Luis Obispo and Cal Poly San Luis Obispo are requesting sealed proposals for a City of San Luis Obispo Bikeshare Program.

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 [DATE] 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 conference will be held to answer any questions that the prospective proposers may have regarding the City's request for proposals.

Insert Teams Meeting Link and timing
Project packages and additional information may be obtained at the City’s BidSync website at www.BidSync.com. Please contact Lucia Pohlman ([email protected]) with any questions.

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

TABLE OF CONTENTS
A. INTRODUCTION......................................................................................................................................... 1 B. SCOPE OF WORK ....................................................................................................................................... 1 C. PROJECT SCHEDULE .................................................................................................................................. 5 D. PROJECT BUDGET ..................................................................................................................................... 6 E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 6 F. SPECIAL TERMS AND CONDITIONS............................................................................................................ 7 G. PROPOSAL CONTENT.............................................................................................................................. 10 H. PROPOSAL SUBMITTAL FORM................................................................................................................ 14 EXHIBIT A: FORM OF AGREEMENT.............................................................................................................. 18 EXHIBIT B-1: CITY’S INSURANCE REQUIREMENTS....................................................................................... 26 EXHIBIT B-2: CAL POLY’S INSURANCE REQUIREMENTS ................................. Error! Bookmark not defined.

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A. INTRODUCTION
The City of San Luis Obispo (“City”) and California Polytechnic State University San Luis Obispo (Cal Poly) are inviting applications from full-service, qualified applicants (“Operators”) to provide a Shared Bicycle (“Bikeshare”) System for the City and Cal Poly. The specifications detailed herein are intended to obtain applications outlining a plan by qualified applicants to develop, implement, and manage a Bikeshare System for an initial three-year pilot period, with an option to extend beyond this pilot period with mutual consent. The City and Cal Poly (collectively – the “Agencies”) intend to select a single Operator through this competitive Request for Proposals (RFP) process.

San Luis Obispo naturally lends itself to bicycle transportation, given its temperate climate, picturesque setting, and compact urban form, which all contribute to the bikeability of the area, with over sixteen percent of people in the City commuting to work via bicycle (City Transportation Survey, 2019). To further increase access to bicycling as viable mode of transportation, the Agencies seek to implement a Bikeshare System to enhance multimodal mobility for its residents, students, employees, and visitors.

A Bikeshare would meet the recommendations of City and Cal Poly policies. The Circulation Element of the City’s General Plan, Active Transportation Plan, and Climate Action Plan recommend the exploration of a shared bicycle program to increase mobility options, decrease transportation costs, and reduce air pollution and greenhouse gas emissions. Similar recommendations and desired outcomes exist in Cal Poly’s Campus Master Plan and Climate Action Plan. Implementing an accessible Bikeshare also complements the City and Cal Poly’s investment in pedestrian and bicycle facilities, and further supports bicycling as a convenient and effective mode of low-carbon transportation.

B. SCOPE OF WORK
The Agencies seek the delivery of a dependable and accessible Bikeshare System that is compatible with the unique character of San Luis Obispo. The selected Operator will be responsible for all aspects of an integrated Bikeshare System. The selected Operator will receive general direction from the Agencies but will be expected to perform all technical tasks and other analyses necessary to complete the proposed scope of work. The Operator will ensure that the Bikeshare System will best serve San Luis Obispo and Cal Poly by collaborating closely with transit operators, City planners and engineering staff, Cal Poly representatives, local bike shops, and other stakeholders.

Proposals shall provide a scope of work for development and operation of a System that meets the following general specifications:

1. System Type. The Agencies’ vision is for a dock-based electric pedal-assist Bikeshare System. The System shall operate year-round and be available 24 hours a day, seven days a week. All materials and equipment shall have a long expected useful life and high durability. The agencies request that all bikeshare bicycles are classified as Class 1 ebikes with front and back lights that automatically and continuously operate while the bike is in use. Proposals may suggest other system models if they achieve the overall objective of this project.

2. System Scale. The system should have enough bikes and stations to be a reliable, on-demand mobility option for residents, employees, students, and visitors. The desired initial deployment for the 3-year pilot project contract period includes a minimum of 10 docking locations and 100

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bikes, with an ideal range of at least 20 docking locations and 175 bikes. Subsequent additions to the System may be phased at different intervals over time. The selected Operator should be capable of, responsible for, and highly motivated to plan and implement expansion of the System in the future as interest and funding permits. The Operator is encouraged to create a straightforward process wherein additional local agencies and/or private parties can pay a prenegotiated fee for a Bikeshare System docking station to be installed at their site/s.

3. Stations. The Operator shall propose a detailed geographic plan for docking stations, and shall coordinate final locations with Agencies. The docking system should minimize the impact of “bike litter” and ADA accessibility concerns. Station infrastructure should be easily moveable, require minimal time to install and/or remove, and be installed without trenching. The selected Operator will ensure that all sites are fully restored to the satisfaction of the Agencies whenever stations are installed and/or removed. No damage or attachment points should be left behind. Stations located on sidewalks or other pedestrian areas require full replacement.

4. Customer Service. The Operator will be responsible for creating and managing responsive and friendly customer service standards and procedures. All physical System structures shall contain a conspicuously posted telephone number, directing to the Operator’s customer service operations to which the public may direct complaints and comments, and instructions for filing a complaint. This customer service system must be available to those that have and have not registered for the Bikeshare System. The Operator shall provide a timely response to any such complaints. The Operator shall provide a shared database in which the Agencies can communicate complaints from the public, from the City, and from Cal Poly, in which the Operator can report the resolution of such complaints. Operator shall collect customer email addresses during registration, and send at minimum one electronic survey, designed by the Agencies, per year to bikeshare users.

5. Equity Considerations. Proposals shall describe proposed strategies to make the Bikeshare accessible to all community members, ensuring that access is provided for underserved and underrepresented1 persons including those that have typically experienced barriers to active transportation. Strategies that improve access for these community members, such as cash payment and/or free or reduced pricing to those who qualify, are highly desired. If applicable, proposals shall describe options for bicycles that serve the needs of those with children or mobility challenges, such as recumbent bicycles, trikes, cargo bikes or bikes with child seats.

6. Fee Collection. Operator shall set a fare structure in collaboration with the Agencies that encourages short duration rentals for bikeshare.
1 This City of San Luis Obispo’s Diversity Equity and Inclusion Strategic Plan defines underserved and underrepresented communities as those who identify as: (1) Native American & Indigenous People, American Indian, Alaska Natives; (2) Black, African, African American; (3)Latina, Latino, Latinx, Hispanic; (4) Asian, Pacific Islander, Desi Americans; (5) Immigrants, Refugees, Asylum-Seekers, Deferred Status Holders, Temporary Protected Status; (6) Undocumented, Deferred Action for Childhood Arrivals (DACA), “Dreamers,” Non-Immigrant Visa Holders; (7) Linguistically diverse, English language learners (ELL); (8) Economically Disadvantaged (individuals, groups, or communities who are socially disadvantaged whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged. Code of Federal Regulations. 13 CFR § 124.104); (9) People with disabilities; (10) LGBTQIA2S+3; (11) Farmworkers, Migrant Seasonal Workers.

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a. Describe the proposed payment system and subscription types (i.e., hourly, daily, monthly, annually; low-income rates; student memberships; corporate passes, etc.). b. Document all payment methods accepted by the System, including how it could be accessible to users who are unbanked, or do not have a credit card or smart phone. c. Document how late fees, out of station fees, and other penalty-based fees (e.g., for bikes not returned within 24 hours) will be assessed.

7. Costs. All costs associated with the System, including but not limited to installation, maintenance, capital, operating, marketing, and staffing, shall be the sole responsibility of the Operator.

Operator must provide sufficient documentation to demonstrate the financial sustainability of the System. The Agencies will have no financial obligation associated with the System for the duration of the contract period.

8. Revenue. All revenues, including membership fees, use fees, and revenue from other sources, shall be collected by the Operator.

9. Registration. Design, maintain, and host a bikeshare website that promotes the program and allows users to register, submit credit card data, and execute a user agreement. The web pages shall display correctly on all major web browsers and mobile devices/formats. After registration, members should be able to immediately access a bike. Ideally, the System would also enable onetime use by walk-up registration at all or some designated docking stations, or through cell phone registration. The Operator’s digital platform and mobile application (if applicable) must meet the Agencies’ Information and Communication Technology (ICT) review requirements.

10. Real-Time Communication. Operator shall offer a public-facing interactive digital platform and/or iOS and Android App that that displays the real-time map location and status of each bicycle and docking station throughout service area. Operator shall use the General Bikeshare Feed Specification (GBFS), a standardized data feed for bikeshare system availability. Map interfaces that enable trip planning with address inputs, directions, and transit information are encouraged.

11. Branding, Marketing, Community Outreach, Public Relations, and Customer Service. Operator will oversee branding, marketing, membership sales, community outreach, and public relations. Use of name, trademarks, or logos of the Agencies shall be subject to the terms and conditions and any applicable requirements for a license from the City or Cal Poly. If possible, the Bikeshare System’s tangible assets will be branded with the Sustainable SLO mark. Sustainable SLO is a Citywide branding effort that represents the collective actions taken by the City and community to reduce climate pollution and adapt to climate change.

12. Organizational Development. Operators must already have, or design and set up a business organization that can complete all tasks in this scope of work. This will include any office and warehouse setup, staffing, administrative and office systems, risk management, legal compliance (including preparation of all waivers, legal disclaimers, etc.), accounting and reporting systems, policy manuals, user rules and regulations, payroll, Human Resources systems and other activities and systems as needed. Operations team and office/warehouse space are required to be located within the County of San Luis Obispo, and ideally in the City, in order to be responsive to the operation needs of the System.

13. Service Level Agreement. A Service Level Agreement (SLA) will be developed in collaboration with Agencies in the contract negotiation phase. This agreement will set the specific standards that the

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vendor will commit to and operate within, including minimum performance standards such as percentage of bikes in service and available at a given time, frequency of bike and station inspections, preventative maintenance plans, complaint resolution timeliness, etc. The agreement will also specify the cadence and form of regular reporting on high-level Key Performance Indicators. The SLA shall also indemnify the Agencies from all claims related to the Bikeshare System, and include a waiver to be signed by all System users releasing the Agencies from all claims, in a form satisfactory to the Agencies.

14. System Balancing. The Operator will maintain a balanced system with minimal likelihood that customers encounter empty or full stations. The Operator shall continuously and predictably redistribute bicycles to provide consistent availability of bikes throughout the service area as specified in the SLA.

15. Maintenance and Repair. Maintenance and repair responsibilities apply to all hardware and software components of the System. The Operator will be responsible for developing and implementing a regular inspection, maintenance, and repair and/or replacement schedule that keeps the System in continuous compliance with agreed upon SLA in-service standards. These activities shall include inspecting, cleaning, and removing graffiti from System structures on a timely basis, as well as removal of debris in and around the System components and structures.

Sustainability and battery recycling plans are important to the Agencies. Proposals that establish a commitment to utilize local labor and businesses for maintenance and repair support are encouraged.

16. Regular Operations Review. The Operator will routinely review periodic reports, maps, and data, as well as ridership, fee structure, and trip and route data. Operator shall develop recommendations that promote System usage, promote closer coordination with potential or existing partners, and reduce or eliminate any operating deficits. Any such recommendations will be circulated among the Agencies.

17. Reporting. At regular, periodic, and appropriate intervals, Operator shall submit reports that track Key Performance Indicators as agreed upon in the SLA. In their proposal, Offerors must prepare a matrix that presents and summarizes other periodic reports that the Operator will submit for external and internal audiences. These reports shall include at a minimum a quarterly management report for the Agencies that monitors Key Performance Indicators against agreed upon standards, as well as business/financial metrics. An annual report available to the public and interested stakeholders will also be required.

18. Records. In addition to SLA reports, Operator shall maintain additional business related, accounting and customer service-related records and make them available to the Agencies on appropriate notice for inspection and auditing.

19. Public Safety. Operator will be required to promote safe and lawful operation of the shared bicycles, as well as ensure that the bicycles are maintained in safe working condition. Operator is required to promptly remove bicycles left on sidewalks or elsewhere within the public right of way, and shall proactively avoid any City and Cal Poly staff involvement in remedying these issues.

In times of emergencies, however, the Operator should be prepared to provide the Agencies with codes or other means to move locked bikes. Operator shall provide a broad approach to protecting public safety that could include outreach and education, minimum age requirements,

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programs that promote or facilitate helmet use, and/orspeed governance bike controls to reduce speeds in sensitive areas.

20. Theft and Vandalism. Operator shall minimize opportunities for theft and vandalism. Operator shall identify who is responsible for any incidents of theft and/or vandalism, how these are handled, any involvement of law enforcement, and applicable user fees.

21. Secure Financial Transactions. Complete secure financial transactions with data input at the web page or by cell phone. Financial data must be held securely in a manner that complies with all applicable federal, state, and local privacy and data protection laws, rules, regulations, and directives, and is only accessible to authorized personnel. The Operator shall develop a robust security policy. The Operator must ensure that its security policy is enforced, report any breaches to the Agencies as soon as practicable, and develop a corrective plan to prevent future breaches.

The method for protecting financial data, usernames, and addresses, must be Payment Card Industry (PCI) compliant. Neither the City nor Cal Poly will be bound by or responsible to comply with any GDPR requirements.

22. Open Data. The Operator shall provide open content data that will allow third party developers to provide applications to assist users in finding bicycles, and stations, and comparing travel and usage information consistent with reports from other U.S. systems. This data shall be anonymized.

The Agencies also acknowledge the creativity and experience that Operators will bring to a bicycle share system in San Luis Obispo and encourage Operators to propose system elements above and beyond the minimum standards established in this RFP. There are additional evaluative points available for these optional elements:
• Number of bicycles and/or stations
• Quality of equipment
• Provision of bicycles that serve the needs of those with children or mobility challenges, such as recumbent bicycles, trikes, cargo bikes or bikes with child seats • Community outreach and education
• Investment in wayfinding signage and/or other methods for riders to easily locate docking stations on the go
• Robust safety education programs including helmet use • Robust marketing strategy and sponsorship sales
• Payment and/or membership integration with local transit • Equity considerations, such as ability to accept cash payment for non-credit card transactions, subsidized membership rates for underserved and underrepresented users, etc. • Ways to refer consumers to local bicycle shops for long-term rentals and gear (retail sales) • Information about how Operator mitigates the environmental impact/s of its services including greenhouse gas emissions, amount of waste generated, water and energy use, and other areas related to the Operator’s products and services.

C. PROJECT SCHEDULE
Operator shall propose a project schedule that includes all steps necessary to reach a launch date, as well as subsequent milestones. The schedule shall include prelaunch activities such as site planning, permitting, community outreach and engagement, education, and other applicable tasks. A detailed schedule will be finalized in cooperation between the Agencies and Operator during contract negotiation.

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D. PROJECT BUDGET
As referenced in Section B “Scope of Work”, all costs associated with the system, including but not limited to capital, operating, marketing, and staffing, shall be the sole responsibility of the Operator. The Agencies will have no financial obligation associated with the System for the duration of the contract period.

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 opening. 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 Exhibit B-1 and Cal Poly’s insurance requirements are detailed in Exhibit B-2.

4. 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.

5. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested 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.

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

CONTRACT AWARD AND EXECUTION

7. Proposal Retention and Award. The City and Cal Poly reserve the right to retain all proposals for a period of 60 days for examination and comparison. The City and Cal Poly also reserve 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.

8. Competency and Responsibility of Bidder. The City and Cal Poly reserve 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 or Cal Poly deems necessary to make such a decision.

9. Contract Requirement. The bidder to whom award is made (Operator) shall execute a written contract with the City and/or Cal Poly 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

10. The Agencies’ contract terms and conditions that Operator 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 and Conditions) of these specifications, the contract will be awarded based on the evaluative criteria set forth in this Request for Proposals.

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 (Operator) fails to enter into the contract: the award will be annulled; any bid security will be

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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 contract term is three years from the commissioning date of the Bikeshare System. If the Operator breaches the contract or Service Level Agreement, the Agencies may terminate the contract based on the mutually agreed upon terms and conditions of these agreements.

5. Contract Extension. The term of the contract may be extended by mutual consent for additional three -year terms in perpetuity.

6. 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 or Cal Poly in excess of the amounts offered to other similar customers for the same item. If the proposer is willing to offer the City or Cal Poly 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.

7. Non-Exclusive Contract. The City and Cal Poly reserve 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.

8. 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 and Cal Poly shall be the sole judges in making this determination.

9. 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 and Cal Poly within 90 days after authorization to proceed by the City and Cal Poly.

10. Start and Completion of Work. Work on this project shall begin immediately after contract execution. System commissioning shall be completed within 18 months thereafter, unless otherwise negotiated with City by mutual agreement.

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

12. 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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G. PROPOSAL CONTENT

1. Proposal Content. Please provide the information requested below. Any omission may be cause for rejection of proposal. Proposal length should only be as long as required to be responsive to the RFP. Proposals should not exceed 20 pages (not including attachments and supplemental materials) and should not include generic marketing materials.

Submittal Forms. Please sign and complete the following forms:
a. Proposal submittal summary form.
b. Certificate of insurance.
c. References from at least three firms for whom Operator provided similar services. d. Statement of past contract disqualification.

Project Approach.
a. Provide a narrative that describes the Operator’s vision and approach to this project.

Narratives should describe how the project aligns with the Scope of Work outlined in the Section B, and should specifically include:
• Operator’s proposed bicycle specification including a description of the weight, materials, number of gears, tire size, braking system, light system, reflective elements, bell, locking mechanism, cargo storage, accessibility, ability to tackle hills and non-flat terrain, and other relevant bike elements. • Docking station design, power needs, installation and removal needs, footprint, and any other relevant information.
• Map of the conceptual program area and methodology for determining locations. • Timeline and approach to rollout, including plan for a single or phased launch. • Customer service approach including how the Operator will accommodate and/or work with the City's current services.
• The process for when bikes are inappropriately docked, when a user wants to return a bike to full docking station and/or rent a bike from an empty station. b. Provide a scope and schedule that includes all tasks, sub-tasks, dates, and deliverables. c. Describe any assumptions critical to development to Operator’s response which may impact scope or timeline.

Qualifications. Provide brief background of Operator’s business(es) and general areas of expertise. Describe experience with public sector Bikeshare programs. Identify the roles that individual team members will serve over the course of the project, including the local operations team, and describe their qualifications including years of service with current firm, and resumes as appropriate. If Operator will subcontract portions of the work, list subcontractors to be used.

Contracts and Terms.
a. Please provide a preliminary draft of the Service Level Agreement. b. The Agencies desire to begin work soon after selecting the preferred Operator and expects the Operator to execute the City’s contract and all of the terms therein, as set forth in Exhibit A. To expedite the contracting process, each submittal shall include requested redlined changes to terms and conditions contained in this RFP, if necessary.

Please be advised that the Operator’s requested changes to the City’s terms and conditions will be considered when scoring and determining the competency and responsibility of the proposer.

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2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee comprised of City staff, Cal Poly personnel, and/or nonprofit partners. The committee will evaluate proposals based on the table below:

Criteria Weights
Responsiveness 10%
The proposal demonstrates that the Operator meets all requirements set forth in this RFP and supplies all necessary forms, attachments, and documentation. The narrative section addresses all specifications contained in Section B Scope of Work.

Operational Experience 40%
Operator demonstrates successes in planning, launching, operating, and maintaining Bikeshare Systems with municipal or other public sector partners. Operator has experience launching and marketing a new system and hitting growth targets, operating an effective customer service model, and maintaining a System in a state of good repair. This criterion will take account the experience of the assigned project manager and other key team members, and well as references from municipal bicycle share partners.

Financial and Technical Capacity 30%
Operator demonstrates the financial capacity to self-fund the bicycle share system and proposes a business model that minimizes costs and enables steady future expansion. Operator details a data-driven approach to monitor System success and improve over time. Operator demonstrates that the Operator will fulfill the data privacy and other technology requirements specified in this RFP and demonstrates expertise in user interface (UI) and user experience (UX) across multiple computer platforms and mobile devices.

Community Values 10%
Proposal demonstrates an understanding of the San Luis Obispo community and culture.

Operator has experience facilitating community engagement to inform Bikeshare Systems. The proposed approach addresses local concerns including diversity, equity and inclusion, public safety, nuisance parking, and aesthetics.

Additional Bikeshare Elements 10%
Operator may, at its optional discretion, provide services, capacity, and strategies above and beyond the minimum standards established in this RFP. Additional points will be awarded for the Additional Bikeshare Elements specified in Section B Scope of Work.

The Committee may choose to select the three (3) highest ranked applicants to be interviewed. If so, the short-listed Operators will be notified by the City of the date, time and place for their interviews and any other pertinent information. The project manager, key staff, and a bicycle must be present at interview. Within a reasonable period of time after the last interview, the Committee shall select the successful applicant based on qualifications and performance at the interview. After evaluating the proposals and discussing them further with the finalists or the tentatively selected Operator, the City reserves the right to further negotiate the proposed work and/or method, approach, and schedule.

As reflected above, 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 Agencies. After evaluating the proposals and discussing them further with the finalists or the tentatively selected Operator, the City reserves the right to further negotiate the proposed work and contract.

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

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a. Issue RFP [date]
b. Pre-Proposal Conference (optional) [date]
c. Receive proposals [date]
d. Complete proposal evaluations [date]
e. Conduct finalist interviews and finalize recommendation [date] f. Execute contract [date]
g. Start work [date]

4. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following location, date, and time to answer any questions that prospective bidders may have regarding this RFP:
[Day, Date, Time]
[LOCATION]

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

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

7. Required Deliverable Products. The Operator will be required to provide:
h. 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. i. 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
j. City and Cal Poly staff will review any documents or materials provided by the Operator and, where necessary, the Operator will be required to respond to staff comments and make such changes as deemed appropriate.

ALTERNATIVE PROPOSALS

8. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's and Cal Poly’s project objectives but in a different way. In this

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case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternative and discuss under what circumstances the City or Cal Poly would prefer one alternative to the other(s).

9. Attendance at Meetings and Hearings. As part of the work scope, the Operator will participate in regular team meetings to give updates; coordinate, participate in, and provide collateral materials for public agency meetings including City Council meetings and campus leadership meetings as requested, and acquire necessary information as appropriate to complete the scope of work.

10. Accuracy of Specifications. The specifications for this project are believed by the City and Cal Poly 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 and Col Poly’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 and/or Cal Poly 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 and Cal Poly 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.

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, Operator shall immediately notify the City and Cal Poly in writing, and the Operator 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 or Cal Poly. Failure to provide the hereinbefore described written notice within one (1) working day of Operator'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.

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H. PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he:
◼ Has carefully examined this RFP including all exhibits, which is hereby made a part of this proposal.
◼ Is thoroughly familiar with its contents.
◼ Is authorized to represent the proposing firm.
◼ Agrees to perform the work as set forth in this proposal. ☐ Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.

Firm Name and 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. Ideally the references would be municipal or public agencies that partnered with your firm in launching a Bikeshare System. 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.

Reference No. 3
Agency Name

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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

1. Parties: [Name of contractor] shall be referred to herein as “Contractor.” The City of San Luis Obispo (the “City”) and California Polytechnic State University San Luis Obispo, as agent of the California State University system (“CSU”) are collectively referred to as “Agency” or the “Agencies.” “Premises” refers collectively to the properties owned by CSU and by the City and utilized by Contractor under the terms of this Contract.

2. Term: The term of this Contract shall be from the date this Contract is made and entered until three (3) years from the date of commissioning of the Bikeshare System by Contractor. Parties agree to memorialize in writing the date of commissioning in a future document.

3. Incorporation by Reference: The Notice Requesting Proposals/Qualifications for a City of San Luis Obispo Bikeshare Program and Contractor’s proposal dated [date] are hereby incorporated in and made a part of this Contract, attached as Exhibit 1.

4. Commencement of Work: Contractor shall not commence work under the Contract until Contractor has received a fully executed Contract and been given written approval to proceed. Any work performed by Contractor prior to the date of approval shall be considered as having been performed at Contractor’s own risk and as a volunteer.

5. Contract Alterations & Integration: No alteration or variation of the Contract shall be valid unless made in writing and signed by the Parties hereto, and no oral understanding or agreement not incorporated in writing in the Contract shall be binding on any of the Parties hereto.

6. Severability: Contractor and Agencies agree that if any provision of this Contract is found to be illegal or unenforceable, such term or provision shall be deemed stricken and the remainder of the Contract shall remain in full force and effect. Any Party having knowledge of such term or provision shall promptly inform the others of its presumed non-applicability of such provision. Should the illegal or unenforceable provision be a material or essential term of the Contract, the Contract shall be terminated in a manner commensurate with the interests of all Parties, to the maximum extent reasonable.

7. Independent Status: Contractor and its employees and agents, and approved subcontractors, in the performance of this Contract, shall act in an independent capacity and not as officers, employees or agents of the Agencies or the State of California. While Contractor may be required by this Contract to carry Worker’s Compensation Insurance, in no event shall Contractor and its employees and agents be entitled to unemployment or workers’ compensation benefits from the Agencies.

8. Licenses and Permits: At all times during the term of this Contract, Contractor shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Contract. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Contract.

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

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

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

12. Appropriation of Funds
(a) If the term of this Contract extends into fiscal years subsequent to that in which it is approved such continuation of the Contract is subject to the appropriation of funds for such purpose by the governing bodies

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of the Agencies. If funds to effect such continued payment are not appropriated, Contractor agrees to take back any commodities furnished under the Contract and not yet paid for by Agencies, terminate any future services and commodities to be supplied to the Agencies under the Contract, and relieve the Agencies of any further obligation therefore.
(b) Agencies agree that if provision (a) above is involved, commodities shall be returned to Contractor in substantially the same condition in which they were delivered, subject to normal wear and tear. Agencies further agree to pay for packing crating, transportation to Contractor's nearest facility and for reimbursement to Contractor for expenses incurred for its assistance in such packing and crating.

13. Contractor's Power and Authority: Contractor warrants it has full power and authority to enter into this Contract and will hold Agencies harmless from and against any loss, cost, liability, and expense (including reasonable attorney fees) arising out of any breach of this warranty. Further, Contractor shall not enter into any arrangement, agreement or contract with any third party that might abridge any rights of the Agencies under this Contract.

14. Assignments: Contractor shall not assign or subcontract the services contemplated by this Contract, either in whole or in part, without prior written consent from both Agencies.

15. Waiver of Rights: Any action or inaction by Agencies or the failure of Agencies on any occasion to enforce any right or provision of this Contract shall not be a waiver by Agencies of their rights hereunder and shall not prevent Agencies from enforcing such provision or right on any future occasion. Agencies’ rights and remedies provided in this Contract shall not be exclusive and are in addition to any other rights and remedies provided by law.

16. Time: Time is of the essence in the performance of this Contract.

17. Entire Contract: This Contract sets forth the entire agreement between the Parties with respect to the subject matter hereof and shall govern the respective duties and obligations of each Party.

18. Termination: Upon mutual agreement by the Agencies, the Agencies may at any time, for any reason, with or without cause, terminate this Contract, or any portion hereof, by serving upon the Contractor written notice of termination. Upon receipt of said notice, the Contractor shall remove or cause to be removed all facilities and other improvements installed by Contractor, and restore Agencies’ property to the condition in which it existed prior to Agencies’ commencement of services under this Contract, within ninety (90) days of the notice of termination.

19. Warranty: Contractor warrants that:
a. deliverables and services furnished hereunder will conform to the requirements of this Contract (including, without limitation, all descriptions, specifications, and drawings identified in the Statement of Work, if any), and
b. the deliverables will be free from defects in materials and workmanship. Where the Parties have agreed to design specifications in the Statement of Work directly or by reference, Contractor warrants the deliverables shall provide all functionality required thereby.

20. Safety and Accident Prevention: In performing work under this Contract on Agency premises, Contractor shall conform to all specific safety requirements contained in this Contract or as required by law or regulation.

Contractor shall take all additional precautions as the Agencies may reasonably require for safety and accident prevention purposes. Contractor’s violation of such rules and requirements, unless promptly corrected, shall constitute a material breach of this Contract.

21. Alterations to Premises: Written approval is required by the respective Agency prior to commencement of any alterations or improvements made to its property. Contractor shall comply with applicable rules and regulations of the City’s Municipal Code and procedures set forth by the City’s Community Development Department and all applicable building codes in making any approved alterations or improvements.

22. Responsibility for Damage. Contractor shall maintain the Premises in substantially the same condition as existed immediately prior to execution of this Contract. Upon termination of this Contract, Contractor shall return the Premises to in its original condition, except for ordinary wear and tear and alterations approved by the Agencies pursuant to the “Alterations to Premises” section of this Contract. If the Premises is damaged resulting from Contractor’s use of and operations on the Premises, it shall be repaired and restored at the Contractor’s expense to its original condition, except for the circumstances expressly identified in this Section.

23. Insurance Requirements: The Contractor shall not commence Work until it has obtained all the insurance required in this Contract, and such insurance has been approved by the Agencies. a. Policies and Coverage.

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i. The Contractor shall obtain and maintain the policies and coverages as set forth in Exhibits 2-A and 2-B.
ii. The Contractor also may be required to obtain other Insurance by agreement between the Agencies and the Contractor.
b. Verification of Coverage.
i. The Contractor shall submit original certificates of insurance and endorsements to the policies of insurance required by the Contract to the Agencies as evidence of the insurance coverage.

Renewal certifications and endorsements shall be timely filed by the Contractor for all coverage until the Work is accepted as complete. The Agencies reserve the right to require the Contractor to furnish the Trustees complete, certified copies of all required insurance policies. c. Insurance Provisions.
i. Nothing in these insurance provisions shall be deemed to alter the indemnification provisions in this Contract. The insurance policies shall contain, or be endorsed to contain, the following provisions.

1. For the general and automobile liability policies, the City of San Luis Obispo, the State of California, the Trustees of the California State University, the University, the officers, employees, representatives, volunteers, and agents of all above-named entities are to be covered as additional insureds.

2. For any claims related to the Work, the Contractor’s insurance coverage shall be primary insurance as respects the City of San Luis Obispo, the State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents. Any insurance or self-insurance maintained by the State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents shall be in excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this section shall state that coverage shall not be canceled by either the Contractor or the insurance carrier, except after thirty (30) Days prior written notice by certified mail, return receipt requested, has been given to the Agencies.

4. The City of San Luis Obispo, the State of California, the Trustees of the California State University, the University, their officers, employees, representatives, volunteers, and agents shall not by reason of their inclusion as additional insureds incur liability to the insurance carriers for payment of premiums for such insurance. d. Acceptability of Insurers. Insurers shall be licensed by the State of California to transact insurance and shall hold a current A.M. Best’s rating of A:VII, or shall be a carrier otherwise acceptable to the University. e. Subcontractor’s Insurance. Contractor shall ensure that its subcontractors (approved by Agencies pursuant to Section 14 of this Contract) are covered by insurance of the types required by this Contract, and that the amount of insurance for each subcontractor is appropriate for that subcontractor’s Work.

Contractor shall not allow any subcontractor to commence Work on its subcontract until the insurance has been obtained, and approved by the Agencies.
f. Miscellaneous.
i. Any deductible under any policy of insurance required in this Contract shall be Contractor’s liability.
ii. Acceptance of certificates of insurance by the Agencies shall not limit the Contractor’s liability under the Contract.
iii. If the Agencies are damaged by the failure of Contractor to provide or maintain the required insurance, the Contractor shall pay the Agencies for all such damages. iv. The Contractor’s obligations to obtain and maintain all required insurance are non-delegable duties under this Contract.
v. The Contractor’s liability for damages proximately caused by acts of God (as defined in Public Contract Code section 7105) and not involving Contractor negligence shall be limited to five percent of the Contract.

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24. General Indemnity: Contractor shall indemnify, defend, and hold harmless the City of San Luis Obispo, the State of California, Board of Trustees of the California State University, CSU, and the respective officers, agents and employees of the above-named entities (the “Indemnitees”) from any and all costs, liability, damage or expense, including reasonable attorney’s fees and costs, claimed by anyone by reason of injury or death of persons, or damage or destruction of property, including property of Contractor, sustained as a result of Contractor’s performance of this Contract. In the event Indemnitees are made a party to any action, lawsuit or other adversarial proceeding arising from Contractor’s performance of this Contract, Contractor shall provide a defense to the Indemnitees or at the Indemnitees’ option, reimburse the Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

25. Use of Data: Contractor shall not utilize any non-public information it may receive by reason of this Contract, for pecuniary gain not contemplated by this Contract, regardless whether Contractor is or is not under contract at the time such gain is realized. Agency specific information obtained by Contractor in the course of Contractor’s performance of this Contract is the property of respective Agency, and shall not be used in any manner by Contractor unless authorized in writing by the respective Agency.

26. Confidentiality of Data
a. Contractor acknowledges the privacy rights of individuals to their personal information that are expressed in the Information Practices Act (California Civil Code Section 1798 et seq.) and in California Constitution Article 1, Section 1. Contractor shall maintain the privacy of personal information and protected data as confidential information. Contractor shall not use, disclose, or release confidential information contained in Agency records without full compliance with applicable state and federal privacy laws, and this Contract. Contractor further acknowledges and agrees to comply with Federal privacy laws, such as the Gramm-Leach-Bliley Act (Title 15, United States Code, Sections 6801(b) and 6805(b)(2)) applicable to financial transactions, and the Family Educational Rights and Privacy Act (Title 20, United States Code, Section 1232) applicable to student education records and information from student education records.

Contractor shall maintain the privacy of confidential information and shall be financially responsible for any notifications to affected persons (after prompt consultation with Agencies) whose personal information is disclosed by any security breach relating to confidential information resulting from Contractor’s or its personnel’s acts or omissions. Further, If so requested by the Agencies, Contractor shall be administratively responsible for providing such notification in the most expedient time possible consistent with the methods prescribed in California Civil Code 1798.29 and 1798.82. b. Contractor further agrees that all financial, statistical, personal, technical and other data and information relating to Agencies’ operations designated “confidential” by Agencies, and not otherwise subject to disclosure under the California Public Records Act, and made available to Contractor to perform this Contract or which become available to Contractor while performing this Contract, shall be protected by Contractor using the same level of care it takes to protect its own information of a similar nature, but in no event less than reasonable care. If required by a court of competent jurisdiction or an appropriate administrative body with legal authority to order the disclosure of confidential information or protected data, Contractor will notify Agency in writing prior to any such disclosure to give Agency an opportunity to oppose any such disclosure. Prior to any disclosure of confidential information as required by legal process, Contractor shall: (1) Notify Agency of any actual or threatened legal compulsion of disclosure, and any actual legal obligation of disclosure, immediately upon becoming so obligated; and c. Contractor shall cooperate with any litigation or investigation proceedings concerning protected data loss or other breach of Contractor’s obligations under this Contract. Any access, transmission, or storage of protected data outside the United States must be approved in writing by Agency in advance. Contractor’s failure to comply with any provision of this Section shall constitute a material breach of the Contract.

27. Examination and Audit
For contracts in excess of $10,000, Contractor shall be subject to the examination and audit by (a) the Office of the University Auditor, and
(b) the Bureau of State Audits, for a period of three (3) years after final payment under the Contract. The examination and audit shall be confined to those matters connected with the performance of the contract, including, but not limited to, the costs of administering the Contract. Note: Authority Cited: Government Code Section 8546.7; Education Code Section 89045(c&d), respectively.

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28. Dispute: Any dispute arising under or resulting from this Contract that is not resolved within 60 days of time by authorized representatives of Contractor and CSU shall be brought to the attention of Contractor’s Chief Executive Officer (or designee) and CSU’s Chief Business Officer (or designee) for resolution. Either Contractor or CSU may request that the CSU Vice Chancellor, Business and Finance (or designee) participate in the dispute resolution process to provide advice regarding CSU contracting policies and procedures. If this informal dispute resolution process is unsuccessful, the Parties may pursue all remedies not inconsistent with this Contract. Despite an unresolved dispute, Contractor shall continue without delay in performing its responsibilities under this Contract.

Contractor shall accurately and adequately document all service it has performed under this Contract. City retains, without waiving any other rights and remedies under this Contract or applicable law, the opportunity to participate in the dispute resolution process stated herein, but is not obligated to do so.

29. Conflict of Interest: Agencies requires a Statement of Economic Interests (California Form 700) to be filed by any Consultant (or Contractor) who is involved in the making or participation in the making of decisions which may foreseeably have a material effect on any Agency financial interest.

30. Endorsement: Nothing contained in this Contract shall be construed as conferring on any Party, any right to use the other Parties’ names as an endorsement of product/service or to advertise, promote or otherwise market any product or service. Furthermore, nothing in this Contract shall be construed as endorsement of any commercial product or service by the Agencies, its officers or employees.

31. Covenant Against Gratuities: Contractor shall warrant that no gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by Contractor, or any agent or representative of Contractor, to any officer or employee of Agencies with a view toward securing the Contract or securing favorable treatment with respect to any determinations concerning the performance of the Contract. For breach or violation of this warranty, Agencies shall have the right to terminate the Contract, either in whole or in part. Agencies’ rights and remedies provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under the Contract.

32. Nondiscrimination:
a. During the performance of this Contract, Contractor and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, disability (including HIV and AIDS), medical condition, age, marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. b. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
c. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Contract.

33. Compliance with NLRB Orders: Contractor declares under penalty of perjury under the laws of the State of California that no more than one final, unappeasable finding of contempt of court by a federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a federal court to comply with an order of the National Labor Relations Board. Note: Cite Authority: PCC 10296

34. Drug-Free Workplace Certification: Contractor certifies that Contractor shall comply with the requirements of the Drug-Free Workplace Act of 1990 and shall provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations
b. Establish a Drug-Free Awareness Program to inform employees about all of the following:

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i. the dangers of drug abuse in the workplace;
ii. the person's or organization's policy of maintaining a drug-free workplace; iii. any available counseling, rehabilitation and employee assistance programs; and, iv. penalties that may be imposed upon employees for drug abuse violations. c. Provide that every employee who works on the proposed or resulting Contract:
i. will receive a copy of the company's drug-free policy statement; and, ii. will agree to abide by the terms of the company's statement as a condition of employment on the Contract. Note: Authority Cited: Government Code Section 8350-8357

35. Forced, Convict, Indentured and Child Labor: By accepting a contract with CSU, Contractor:
a. certifies that no equipment, materials, or supplies furnished to CSU pursuant to this Contract have been produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. Contractor further certifies it will adhere to the Sweat-free Code of Conduct as set forth on the California Department of Industrial Relations website located at http://www.dir.ca.gov/, and Public Contract Code Section 6108. b. agrees to cooperate fully in providing reasonable access to its records, documents, agents or employees, or premises if reasonably required by authorized officials of the State, the Department of Industrial Relations, or the Department of Justice to determine Contractor's compliance with the requirements under paragraph (A).

36. Recycled Content Certification: To the extent that services involve the supply of post-consumer materials (see below) Contractor shall certify in writing the minimum, if not exact, percentage of post-consumer material, as defined in Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to CSU regardless whether the product meets the requirements of Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (PCC 12205).

37. Americans With Disabilities Act (ADA): Contractor warrants that it complies with California and federal disabilities laws and regulations. (Americans with Disabilities Act of 1990,42 U.S.C. 12101 et seq). Contractor hereby warrants the products or services it will provide under this Contract comply with the accessibility requirements of Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794d), and its implementing regulations set forth at Title 36, Code of Federal Regulations, Part 1194. Contractor agrees to promptly respond to and resolve any complaint regarding accessibility of its products or services. Contractor further agrees to indemnify and hold harmless Agencies from any claims arising out of Contractor’s failure to comply with the aforesaid requirements.

Failure to comply with these requirements shall constitute a material breach of this Contract.

38. Debarment and Suspension: By accepting a contract with the CSU, Contractor certifies neither it nor its principals or its subcontractors are presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in this transaction by any federal department or agency (2 Code Federal Regulations[CFR] 180.220, in accordance with the Office of Management and Budget guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235)).

39. Expatriate Corporations: Contractor declares and certifies that it is not an expatriate corporation, and is not precluded from contracting with CSU by The California Taxpayer and Shareholder Protection Act of 2003, Public Contract Code Section 10286, et seq.

40. Loss Leader: Contractor certifies and declares it is not engaged in business within this State of California to sell or use any article or product as a "loss leader" as defined in Section 17030 of the Business and Professions Code.

Note: Authority Cite: (PCC 12104.5(b).)

41. DVBE and Small Business Participation
a. If Contractor has committed to achieve small business (SB) participation it shall, within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract), report to CSU: (1) the name and address of the SB(s) who participated in the performance of the Contract; (2) the total amount the prime Contractor received under the Contract; and (3) the amount each SB received from the prime Contractor.(Govt. Code § 14841.)

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b. If Contractor has committed to achieve disabled veteran business enterprise (DVBE) participation, it shall, within 60 days of receiving final payment under this Contract (or within such other time period as may be specified elsewhere in this Contract), report to CSU:
i. the name and address of the DVBE(s) who participated in the performance of the Contract; ii. the total amount the prime Contractor received under the Contract; and iii. the amount each DVBE received from the prime Contractor. The Contractor shall also certify that all payments under the Contract have been made to the DVBE. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841.)

42. Contractor’s Staff: Contractor warrants that its staff assigned to performing work under this Contract are legally able to perform such duties in the country where the work is being performed.

43. Force Majeure
a. No Party shall be liable for any failure to perform its obligations under this Contract for the period of time that it is prevented, hindered, or delayed in performing those obligations by circumstances beyond its control, including, but not limited to, fire, strike, war, riots, acts of terrorism, disaster, acts of God, acts of any governmental authority, communicable disease outbreak, epidemic or pandemic, unavailability or shortages of labor, materials, or equipment, disruption of transportation, or any other comparable event beyond the control of the Party whose performance is affected (each, a “Force Majeure Event.”). b. The Party claiming Force Majeure shall, as soon as reasonably practicable after the occurrence of a Force Majeure Event, provide written notice to the other Parties of the nature, extent, and expected duration of the Force Majeure Event and use its diligent efforts to mitigate the effects of the Force Majeure Event upon such Party’s performance under this Contract, it being understood that upon completion of the Force Majeure Event, the Party whose performance was affected must, as soon as reasonably practicable, recommence the performance of its obligations under this Contract. c. Notwithstanding any other term in this Contract, including, but not limited to, the foregoing subsections of this section, during the period of a Force Majeure Event affecting performance by Contractor, Agencies may elect to do all or any of the following:
i. extend the time for Contractor’s performance by a period equal to the duration of the Force Majeure Event; and/or
ii. terminate the Contract.

44. Material Change of Circumstances: The terms of this Contract are based on conditions in existence on the date that Contractor commences performance. In the event of a material change in the conditions that adversely affects the ability of Contractor to perform its obligations, Contractor shall reasonably cooperate with Agencies to minimize the impact from such change in conditions on Contractor’s performance and shall, if requested by Agencies, negotiate in good faith to adjust the terms of this Contract on a mutually agreeable basis to address the impact of such material change in conditions. This provision shall not limit Agencies’ ability to avail themselves of any rights or remedies provided to Agencies by law, equity or any other term of this Contract.

45. 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 CSU
Office of Sustainability [Addressee]
City of San Luis Obispo [Street Address]
990 Palm Street
San Luis Obispo, CA 93401

CONTRACTOR
[Addressee]
[Street address]

46. Contract Amendment. Any amendment, modification, or variation from the terms of this Contract shall be in writing and shall be effective only upon approval by the City Manager of the City and the [ ] on behalf of CSU.

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EXHIBIT B-1: CITY’S INSURANCE REQUIREMENTS
The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees, or subcontractors.

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

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

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

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

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

1. General Liability: $2,000,000 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 $4,000,000.

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:

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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Exhibit B-2
Rev 7/2/08

INSURANCE REQUIREMENTS
The Contractor will maintain all necessary Insurance as required herein. The Contractor shall provide a Certificate of Insurance upon award of a Service Agreement with appropriate endorsements indicating that the required coverage is in effect on an annual basis, or for the duration of the Service Agreement. Contractor agrees to provide, or cause their insurance carrier to provide, at least 30 days written notice prior to cancellation or modification (10 days advance written notice for non payment) of such liability insurance. In the event the insurance coverage expires at any time or times during the term of the Service Agreement, Contractor agrees to provide at least 15 days prior to said expiration date, a new certificate of insurance evidences coverage as provided herein for not less than the remainder of the term of the Service Agreement, or for a period of not less that one year. New certificates of insurance are subject to the approval of the CSU, and Contractor agrees that no work or services shall be performed prior to the giving of such approval. In the event the Contractor fails to keep in effect at all times insurance coverage as herein provided, the CSU may in addition to any other remedies it may have, terminate this Service Agreement upon the occurrence of such event.

Contractor agrees to waive their right of subrogation against the CSU for any claims.

Insurance to be placed with the California Admitted insurer with current A.M. Best’s rating of no less that A:VII unless otherwise approved by the CSU.

If any Insurance required herein is written on a claims-made form, following the termination of this Agreement, coverage shall survive for a period of not less than three years. Coverage shall provide for a retroactive date of placement coinciding with the Agreement commencement date.

Commercial General Liability Coverage (as broad as ISO occurrence for CG0001) primary insurance coverage against claims for injuries to persons or damages to property and/or damages to property and/or contractual liability which may arise from or in connection with the performance of the work or operations hereunder by or on behalf of the Contractor, its agents, representatives or employees in an amount not less that $1,000,000.00 (One million dollars) per occurrence; $2,000,000.00 (Two million dollars) aggregate.

Endorsements shall designate:

The State of California, Trustees of the California State University, California Polytechnic State University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents and volunteers, the “CSU”, as additional insured(s).

Endorsements shall state this insurance shall be primary as respects the CSU, or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured’s scheduled underlying primary coverage. In either event, any other insurance maintained by the University scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it.

Business Auto Liability Coverage (as broad as ISO form number CA 0001, code 1 any auto) primary insurance against claims for injuries to persons or damages to property and/or contractual liability which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives or employees covering owned, hired, leased and non-owned automobiles used by or on behalf of the Contractor, including coverage for uninsured and underinsured motorists, in an amount not less than $1,000,000.00 (One million dollars) per occurrence.

Endorsement shall designate:

The State of California, Trustees of the California State University, California Polytechnic State University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents and volunteers, the “CSU”, as additional insured(s).

Endorsement shall state that this insurance shall be primary as respects the CSU, or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured’s schedule underlying primary coverage. In either event, any other insurance maintained by the CSU scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it.

Contractors who are sole proprietors and are using automobiles for personal transportation only may submit proof of automobile insurance as required by California law.

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Worker’s Compensation and Employer’s Liability Coverage:

The Contractor shall provide the following coverage:

Primary insurance coverage against claims with respect to obligations imposed on the Contractor and sub contractors by State worker’s compensation statues and damages that the contractor becomes legally obligated to pay because of bodily injury by accident or disease to an employee.

Minimum limits: amount proscribed by California law for Worker’s Compensation, $1,000,000 for Employer’s Liability.

Endorsement shall state that the insurer waives their right of subrogation against the CSU Sole Proprietors Exclusion
Contractors who are sole proprietors or are otherwise excluded from state requirements for workers compensation coverage may:
1) Submit proof of health insurance as broad as statutorily required by the State of California for employees and either submit proof of disability insurance as broad as statutorily required by the State of California for employees OR
2) Execute a Release Agreement with the University regarding the contract activities to be performed.

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CERTIFICATE OF INSURANCE

CALIFORNIA POLYTECHNIC STATE UNIVERSITY SAN LUIS OBISPO ISSUE DATE:

PRODUCER THIS CERTIFICATE OF INSURANCE IS NOT AN INSURANCE POLICY AND DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.

BEST’S

COMPANIES RATING/SIZE

COMPANY

LETTER A

COMPANY

LETTER B

COMPANY

LETTER C

COMPANY

LETTER D

INSURED
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY

REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE

DATE (MM/DD/YY)

POLICYEXPIRATION

DATE (MM/DD/YY)

ALL LIMITS IN THOUSANDS
d GENERAL LIABILITY
 COMMERCIAL GENERAL LIABILITY
 CLAIMS MADE  OCCUR
 OTHER
GEN’L AGGREGATE LIMIT APPLIES PER

POLICY PROJECT LOCATION
GENERAL AGGREGATE $ PRODUCTS-COMP/OPS AGGREGATE $
PERSONAL & AD INJURY $
EACH OCCURRENCE $
FIRE DAMAGE (any one fire) $
MEDICAL EXPENSE (one person) $
DEDUCTIBLE/S.I.R. $

AUTOMOBILE LIABILITY
 OWNED ANY AUTO
 HIRED
 NON-OWNED
 GARAGE LIABILITY
COMBINED SINGLE LIMIT $
BODILY INJUR Y (per person) $
BODILY INJUR Y (per accident) $ PROPERTY DAMAGE $
DEDUCTIBLE/S.I.R. $
 WORKERS' COMPENSATION

AND EMPLOYERS' LIABILITY

THE PROPRIETOR/ INCL

PARTNERS/EXECUTIVE EXCL

OFFICERS ARE
WC STATUTORY 
EL EACH ACCIDENT $
EL DISEASE-POLICY LIMIT $
EL DISEASE-EACH EMPLOYEE $

PROFESSIONAL LIABILITY
PROFESSIONAL
 ERRORS & OMISSIONS
 CLAIMS MADE  OCCUR

EXTENDED REPORTING
 BASICSUPPLEMENTAL
CLAIM/OCCURRENCE $
AGGREGATE $
DEDUCTIBLE/S.I.R. $

EXCESS LIABILITY
 UMBRELLA EXCESS
 CGL  AL  EL  PL
EACH OCCURRENCE $
AGGREGATE $

PROPERTY INSURANCE
 CP  BPP
IMP/BETTERMENTS
INLAND MARINE
 BUILDER’S RISK
 INSTALLATION FLOATER
ALL RISK
AMOUNT OF INSURANCE $
BUILDING $
PERS PROPERTY $
OTHERS PROPERTY $
DEDUCTIBLE/S.I.R. $
DESCRIPTION OF OPERATIONS/CONTRACT OR PURCHASE ORDER #/LOCATION/VEHICLES/RESTRICTION/SPECIAL ITEMS/INTERESTS THE FOLLOWING PROVISIONS APPLY:

1. The State of California, the Trustees of the California State University, California Polytechnic State University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents, and volunteers, the “University” is designated as ADDITIONAL INSURED. (Automobile, Excess, and General Liability Insurance described above, if any)

2. The University is designated as the LOSS PAYEE on the Property Insurance described above, it any.

3. The insurance described above is primary as respects the University or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured’s scheduled underlying primary coverage. In either event, any other insurance maintained by the University scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it.

4. The Insurers named above waive any right of recovery the Insurers may have against the University when the insured has agreed to such waiver in writing prior to loss. (Automobile, Employer’s, Environmental, Excess, General, Worker’s Compensation Liability and Property Insurance described above, if any.)

5. Thirty (30) days advance written notice of cancellation and/or ten (10) days advance written notice of cancellation for non-payments of the policies described above will be provided to the University.

CERTIFICATE HOLDER
California Polytechnic State University
San Luis Obispo, California 93407
Attn: Contract & Procurement Services

AUTHORIZED REPRESENTATIVE

SIGNATURE
TITLE
PHONE NO.

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Reproduction of Insurance Services Office, Inc. Form
INSURER:

POLICY NUMBER:

AUTOMOBILE LIABILITY SPECIAL ENDORSEMENT FOR CALIFORNIA

POLYTECHNIC STATE UNIVERSITY

SUBMIT IN DUPLICATE
Endorsement #______________
Issue Date_________________

PRODUCER
Telephone
POLICY INFORMATION:

Insurance Company:

Policy No.:

Policy Period: (from)
(to)
LOSS ADJUSTMENT EXPENSE Included in
Limits
In addition
to Limits
Deductible Self-Insured Retention (check
which) of $________
NAMED INSURED APPLICABILITY. This insurance pertains to the operation and/or tenancy of the named insured
under all written agreements and permits in force
with the University unless checked here in
which case only the following specific
agreements and permits with the University are
covered:

AGREEMENTS/PERMITS

TYPE OF INSURANCE OTHER PROVISIONS

COMMERCIAL AUTO POLICY

BUSINESS AUTO POLICY
OTHER______________________
LIMITS OF LIABILITY CLAIMS: Underwriter’s representative for claims pursuant to this insurance.

Name:
________________________________________
Address:
________________________________________
Telephone: ( ) ________________________
$ _______________ per accident, for bodily injury and property damage In consideration of the premium charge and notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any endorsement now or hereafter attached thereto, it is agreed as follows:

1. INSURED: State of California, Trustees of the California State University, California Polytechnic State University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents and volunteers, “the University” is designated as insured with regard to damages and defense of claims arising from: the ownership, operation, maintenance, use, loading or unloading of any auto owned, scheduled, hired or non owned by the Named Insured, or for which the Named Insured is responsible.

2. CONTRIBUTION NOT REQUIRED. As respects work performed by the Named Insured for or on behalf of the University, the insurance afforded by this policy shall: (a) be primary insurance as respects the University; or (b) stand in an unbroken chain of coverage excess of the Named Insured's primary coverage. Any insurance or self-insurance maintained by the University shall be excess of the Named Insured's insurance and not contribute with it.

3. CANCELLATION NOTICE. With respect to the interests of the University, this insurance shall not be canceled, changed, or modified except after thirty (30) days advance written notice has been given to the University. (10 days advance written notice for non-payment)

4. SCOPE OF COVERAGE. This policy affords coverage at least as broad as:
(a) If primary, Insurance Services Office Form Number CA 00 01 (Ed. 1/87), (owned, non owned, hired autos); or (b) if excess, affords coverage which is at least as broad as the primary insurance forms referenced in the preceding Section (a).

5. RIGHT OF RECOVERY. Insurer named above waives any right of recovery the Insurer may have against the University when the Insured has agreed to such waiver in writing prior to loss.

Except as stated above, nothing herein shall be held to waive, alter or extend any of the limits conditions, agreements or exclusions of the policy to which this endorsement is attached.

ENDORSEMENT HOLDER
California Polytechnic State University
San Luis Obispo, CA 93407
ATTN: Contract and Procurement Services

AUTHORIZED

REPRESENTATIVE
Broker/Agent Underwriter
____________ (other)
I,_______________________________(print/typ
e name), warrant that I have authority to bind
the above-mentioned insurance company, and
by my signature hereon do so bind this
company to this endorsement.

Signature
__________________________________ ____
(Original signature required)
Telephone: ( ) _______________ Date Signed

- 5 –
ENDORSEMENT NUMBER:

THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS (FORM B)
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART.

SCHEDULE
Name of Organization: State of California, Trustees of the California State University, California Polytechnic University San Luis Obispo, and each of their officers, officials, employees, authorized representatives, agents and volunteers, the "University."
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work" for that insured by or for you.

Modifications to ISO form CG 20 10 11 85:

1. This insurance shall be primary as respects the University or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event, any other insurance maintained by the University shall be in excess of this insurance and shall not be called upon to contribute with it.

2. The insurance afforded by this policy shall not be canceled, changed, or modified except after thirty (30) days’ advance written notice has been given to the University. (10 days advance written notice for non-payment).

3. The Insurer named above waives any right of recovery the Insurer may have against the University when the Insured has agreed to such waiver in writing prior to loss.

4. Coverage shall not extend to any indemnity coverage for the active negligence of the University in any case where an agreement to indemnify the University would be invalid under Subdivision (b) of section 2782 of the Civil Code (construction contracts with public agencies).

Signature-Authorized Representative

Address
CG 20 10 11 85 Insurance Services Office, Inc. Form (Modified)

- 6 –
WORKERS’ COMPENSATION AND EMPLOYER’S

LIABILITY SPECIAL ENDORSEMENT

FOR CALIFORNIA POLYTECHNIC STATE UNIVERSITY

SUBMIT IN DUPLICATE
ENDORSEMENT NO. ISSUE DATE

PRODUCER
Telephone
POLICY INFORMATION:

Insurance Company:

Policy No.:

Policy Period: (from) (to)

OTHER PROVISIONS

NAMED INSURED
CLAIMS: Underwriter’s representative for claims pursuant to this insurance.

Name:
____________________________________________________
Address:
____________________________________________________
____________________________________________________
Telephone (______) _____________________

EMPLOYERS LIABILITY LIMITS
$ _______________________ (Each Accident)
$ _______________________ (Disease - Policy Limit)
$ _______________________ (Disease - Each Employee)
In consideration of the premium charge and notwithstanding any inconsistent statement in this endorsement is attached or any endorsement now or hereafter attached thereto, it is agreed as follows:

1. CANCELLATION NOTICE. This insurance shall not be canceled except after thirty (30) days advance written notice has been given to the University. (10 days advance written notice for non-payment)

2. RIGHT OF RECOVERY. Insurer named above waives any right of recovery the Insurer my have against the University when the Insured has agreed to such waiver in writing prior to loss.

Except as stated above, nothing herein shall be held to waive, alter or extend any of the limits, conditions, agreements or exclusions of the policy to which this endorsement is attached.

ENDORSEMENT HOLDER
California Polytechnic State University
San Luis Obispo, CA 93407
ATTN: Contract and Procurement Services

AUTHORIZED

REPRESENTATIVE
Broker/Agent Underwriter _______ (other)
I, _____________________________ (print/type name), warrant that I have authority to bind the above-mentioned insurance company, and by my signature hereon do so bind this company to this endorsement.

Signature __________________________________________
(Original signature required)
Telephone: ( ) ________________ Date Signed: __________

MEMORANDUM OF UNDERSTANDING BETWEEN THE LOCAL

JURISDICTIONS PARTICIPATING IN THE SAN LUIS OBISPO

COUNTY REGIONAL BIKESHARE PROGRAM
I. Background

1. Beginning in 2023, the City of San Luis Obispo, and California State University, San Luis Obispo, (collectively, the “Participating Jurisdictions” and individually “Participating Jurisdiction”) commenced the coordinated procurement of a proposals for the implementation of an electric-assist bicycle shared mobility program (“Bike Share Program”) within the defined territories of the Participating Jurisdictions.

2. The purpose of collaborating on the procurement of the Bike Share Program is to attract a broader set of vendors interested in providing services within the Participating Jurisdictions than might otherwise be interested in providing bike share services to individual Participating Jurisdictions.

3. The Participating Jurisdictions will collaboratively select a vendor (“Vendor”) to operate the Bike Share Program through a joint RFP review committee process. It is anticipated that the Participating Jurisdictions will sign a singular contract with the selected Vendor authorizing operation of the Bike Share Program in their respective territorial jurisdictions and establishing standard terms and conditions of agreement. Subsequently, the Participating Jurisdictions will work with Vendor to align on shared terms for a Service Level Agreement that define operational agreements for the Bike Share Program. However, separate, negotiated Service Level Agreements will be signed between the Vendor and each Participating Jurisdiction.

4. The Participating Jurisdictions, and each of them, recognize and agree that it is desirable and mutually beneficial to continue their communication and cooperation beyond selection of the Vendor, and extend such cooperation to the management and implementation of the Bike Share Program within the boundaries of their respective jurisdictions, particularly since their individual approaches to managing the portion of the Bike Share Program in their individual jurisdictions may have impacts on the success of the Bike Share Program in the jurisdictions of other Participating Jurisdictions.

5. For the foregoing reasons, the Participating Jurisdictions have agreed to this Memorandum of Understanding to better facilitate between them the coordination and management of the Bike Share Program.

6. This Memorandum of Understanding is intended only as a statement of intent, and not as a binding or enforceable contract.

II. Agreement

1. Identification of Staff Contacts for Management and Coordination of Bike Share Program. Each Participating Jurisdiction agreesto identify appropriate staff-level points of contact to the other Participating Jurisdictions for the purpose of efficient management and coordination of the Bike Share Program. In the event that there is a change in staffing, each Participating DocuSign Envelope ID: F967E655-ADFA-45B8-9E2D-A9856DA94263

Jurisdiction agrees to make reasonable efforts to promptly inform the other Participating Jurisdiction of that change.

2. Placement of New Bike Share Program Docks. The Participating Jurisdictions agree to communicate and reasonably cooperate with each other in regard to the placement and location of Bike Share Program docks within their respective jurisdictions for the purpose of ensuring adequate dock coverage and public access to the Bike Share Program.

3. Coordination Regarding Future Amendment of Bike Share Program Contract.

Each of the Participating Jurisdictions anticipates executing its own contract with the selected Bikeshare Program vendor, to regularly confer and communicate with the other Participating Jurisdictions, and to the extent possible, coordinate, any amendments of their respective individual Service Level Agreements governing the Bike Share Program. Each Participating Jurisdiction agrees to provide the other Participating Jurisdictions with notice of any proposed amendments in advance and in writing at least ninety (90) days prior to the proposed effective date of the amendment to allow the Participating Jurisdictions an opportunity to review proposed amendments to provide a reasonable opportunity to mitigate any potential impacts on the other Participating Jurisdictions.

4. Coordination Regarding Vendor Fees. The Participating Jurisdictions agree to coordinate and communicate with one another regarding all rental and other fees charged by Vendor to the general public, with the goal of sustaining the viability of the Bike Share Program in all of the Participating Jurisdictions. If the Vendor proposes to charge new or different fees to users of any Participating Jurisdiction, the Participating Jurisdictions agree to meet and confer at least ninety (90) days prior to those fees being assessed; provided, however, that the Participating Jurisdictions acknowledge that any of them may, from time to time, negotiate discounted rates for discrete groups of people (included, but not limited to, students and persons of low-income) or for limited duration events (including, but not limited to, concerts, festivals, and the like), and agree that such discounted rates need not, but may, be discussed and coordinated among the Participating Jurisdictions.

5. Coordination regarding Bike Share Program Advertising, Branding and Messaging.

The Participating Jurisdictions agree to communicate and coordinate messaging, branding, advertising, and promotion of the Bike Share Program to the community.

6. Notice of Termination to Other Participating Jurisdictions. Each Participating Jurisdiction agrees to provide the other Participating Jurisdictions with ninety (90) days prior notice of its intent to cease its participation in the Bike Share Program and terminate its contract with the Bike Share Program vendor. The purpose and intent of this agreement is to allow the other Participating Jurisdictions reasonable opportunity to mitigate any impacts that the cessation of a Participating Jurisdiction’s participation in the Bike Share Program may have on the operation of the Bike Share Program in the jurisdictions of the remaining Participating Jurisdictions. To that end, and notwithstanding its promise to provide ninety days’ prior notice of intent to cease participation in the Bike Share Program, each Participating Jurisdiction agrees to reasonably cooperate with the other Participating Jurisdictions to mitigate such impacts.

DocuSign Envelope ID: F967E655-ADFA-45B8-9E2D-A9856DA94263

7. Effective Date; Termination. This Memorandum of Understanding shall be effective the later of date which it is fully executed by representatives of all Participating Jurisdictions, or the date which each Participating Jurisdiction has executed a contract with the selected Bike Share Program vendor. As this Memorandum of Understanding is intended to be only a statement of the Participating Jurisdiction’s support and is not intended to be a legally enforceable contract, each Participating Jurisdiction may withdraw at any time with no penalty to the other Participating Jurisdictions. Notice of termination to the other Participating Jurisdictions shall be provided within a reasonable time prior to the effective date of termination.

8. Addition of New Participating Jurisdictions. The Participating Jurisdictions understand and agree that it may be beneficial in the future to allow other local agencies to participate in this Memorandum of Understanding. The Participating Jurisdictions agree that any local agency located within or immediately adjacent to the boundaries of the County of San Luis Obispo will be treated as a Participating Jurisdiction within the meaning of this Memorandum of Understanding under the following circumstances:
a. The new Participating Jurisdiction executes this Memorandum of Understanding; and
b. The new Participating Jurisdiction transmits a copy of the same to each of the existing Participating Jurisdictions; and
c. The new Participating Jurisdiction executes a general contract and Service Level Agreement with Vendor that is substantially similar to said contracts between each of the Participating Jurisdictions and Vendor.

9. Mutual Indemnification. The Participating Jurisdictions acknowledge and agree that nothing in this Agreement is intended to assign liability to any of the Participating Jurisdictions with regards to the operation of the Bike Share Program, and that the Vendor will be required to indemnify each of the Participating Jurisdictions in the general contract and/or the Service Level Agreements.”
IN WITNESS WHEREOF the Participating Jurisdictions have caused this Memorandum of Understanding to be duly executed by their respective authorized officers identified below in counterparts, and a scanned, electronic, or other copy of a party’s signature is accepted as an original.

DOCUSIGN ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, California State University Office of the Chancellor, on behalf of its San Luis Obispo campus (we, us, California State University San Luis Obispo, or the University) may provide to you certain written forms, notices, or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

DocuSign Envelope ID: F967E655-ADFA-45B8-9E2D-A9856DA94263

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If you decide to receive forms, notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future forms, notices, and disclosure in paper format and withdraw your consent to receive forms, notices, and disclosures electronically is described below.

Consequences of changing your mind
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DocuSign Envelope ID: F967E655-ADFA-45B8-9E2D-A9856DA94263

How to contact us
You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To advise us of your new email address for DocuSign Usage: To let us know of a change in your email address where we should send certain forms, notices, and disclosures electronically to you, you must send an email message to your primary contact with the California State University, San Luis Obispo regarding the documents at issue, and in the body of such email request you must state: your previous email address, your new email address. If you created a DocuSign account, you may update it with your new email address through your account preferences. To request paper copies of documents previously provided to you electronically through this DocuSign account from the California State University, San Luis Obispo for routine business and operational transactions: To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, send an email to your primary contact with the California State University, San Luis Obispo regarding the documents or transactions at issue and in the body of such request you must state your email address, full name, mailing address, and telephone number. You may be charged a reasonable per-page fee as well as any applicable postage. Note that to request any documents or copies of any documents other than documents previously provided to you through this DocuSign account for routine business and operational transactions, including requests made pursuant to the California Public Records Act (CPRA) and/or the California Information Practices Act (IPA), submit the appropriate Request for Records through the CSU San Luis Obispo Public Records Department, available at https://afd.calpoly.edu/public-records/ To withdraw your consent
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Send an email to your primary contact with the California State University, San Luis Obispo regarding the documents or transactions at issue, and in the body of such request you must state your email, full name, mailing address, and telephone number. Note that if you withdraw your consent to receive documents from us electronically it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required forms, notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices, disclosures, and/or completed forms.

Required hardware and software
The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guidesigning system-requirements.

DocuSign Envelope ID: F967E655-ADFA-45B8-9E2D-A9856DA94263

Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic forms, notices, and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving and returning forms, notices, and disclosures in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system. By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:
• You can access and read this Electronic Record and Signature Disclosure; and • You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and
• Until or unless you notify California State University, San Luis Obispo as described above, you consent to receive through electronic means forms, notices, disclosures, authorizations, acknowledgments, and other documents that are required to be provided or made available to you by us during the course of your relationship with California State University, San Luis Obispo.

CALIFORNIA STATE

UNIVERSITY, SAN LUIS OBISPO

CITY OF SAN LUIS OBISPO,
a Municipal Corporation
________________________________ ___________________________________ Name: Ashley Sangster Name: Whitney McDonald
Title: ___________________________ Title: Interim City Manager Date: ___________________________ Date: ______________________________ DocuSign Envelope ID: F967E655-ADFA-45B8-9E2D-A9856DA94263 4/18/2024 | 10:53 AM PDT
Procurement Manager

Item 7e
Department: Public Works
Cost Center: 5301
For Agenda of: 5/7/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Noah Maidrand, Engineer II
SUBJECT: AUTHORIZATION TO PURCHASE AND SELL PERSONAL PROPERTY

FOR THE MID-HIGUERA BYPASS PROJECT

RECOMMENDATION

1. Authorize the Mayor to sign an agreement purchasing personal property associated with the business relocation of CoastRiders Powersports for the Mid-Higuera Bypass Project, as required by the California Government Code, and the re-sale of that personal property back to CoastRiders Powersports at liquidation value for a total payment price to CoastRiders Powersports of $50,717; and

2. Approve the designation of the remaining personal property valued greater than $1,000 as surplus personal property in accordance with Section 480-A of the Financial Management Manual.

POLICY CONTEXT
The City is obligated to provide relocation assistance to businesses displaced by the City’s real property acquisition in accordance with Article 3 of the California Code of Regulations, Title 25, Chapter 6 (additional requirements for compensation are listed in Article 3 of the California Code of Civil Procedure §1263.210).

The City’s Financial Management Manual states that the sale of surplus personal property with an estimated value greater than $1,000 must be approved by City Council. The disposal of surplus personal property is also dictated by the Financial Management Manual, which sets forth various disposal requirements, and is delegated to the Department Head or the Director of Finance and Information Technology, depending on the value of the item.

DISCUSSION
Background
The Mid-Higuera Bypass Project (“Project”) was identified in the Council adopted Waterway Management Plan as a way to reduce flooding from San Luis Obispo Creek along the Mid-Higuera Corridor. The Project will increase flood protection by removing sediment from the creek, creating pathways for flood waters in the roadway to return to

Item 7e
the creek, removing barriers within the creek channel, creating flood bypass channels and graded benches for increased creek capacity, replacing the Bianchi Lane Bridge, removing non-native vegetation, and replanting native trees and shrubs. This Project is being completed in partnership with the Flood Control and Water Conservation District Zone 9 County Advisory Committee.

This Project aims to reduce flooding potential caused by a major pinch point of San Luis Obispo Creek where the flow is constricted by two buildings adjacent to the creek banks.

This pinch point will be mitigated by the planned demolition of the rear warehouse located at 306 Higuera Street (APN 002-482-027). Staff have already procured the appropriate easements to complete this work with the property owner in accordance with the authority delegated by Council on July 19, 2022.

CoastRiders Powersports (CoastRiders) currently leases 306 Higuera Street and operates an auto repair business. The property has a front building and a rear warehouse which were both occupied by CoastRiders prior to the City’s acquisition of the rear warehouse. The Project requires demolition of the rear warehouse. As a result of the City’s easement acquisition, CoastRiders has opted to consolidate their business operations into the front building on the property in lieu of relocating their business entirely. Since the business was partially displaced by the City’s acquisition process, the City is obligated to provide relocation assistance to CoastRiders. This relocation assistance is required as a term of payment for the acquisition of real property rights and is mandated by Article 3 of the California Code of Regulations, Title 25, Chapter 6.

As part of the relocation assistance, the City is obligated to provide financial compensation for any improvements pertaining to realty that cannot be reasonably relocated. In order to accurately quantify the improvements pertaining to realty, staff received an appraisal of tenant owned Furniture, Fixtures, and Equipment (Attachment A). While the City is obligated to pay fair market price for the valued improvements based on article 3 of the California Code of Regulations, Title 25, Chapter 6, the tenant may be allowed to buy some of the improvements back at liquidation value or less than what the City paid for the items. This allows for the tenant to recover furniture, fixtures, or equipment that can be moved from the premises after the City has purchased them in accordance with California Code of regulations as well as allows the City to dispose of personal property for which it has no need.

Staff have reached a tentative agreement (Attachment B) with CoastRiders titled “Agreement to Acquire Improvements Pertaining to the Realty” which outlines the terms of the sale and buy back of improvements pertaining to realty. This agreement contains an outline of which improvements CoastRiders has opted to purchase back at liquidation value, and sums the total value owed to CoastRiders at $50,717. An associated Bill of Sale (Attachment C) has been prepared to detail the City’s purchase of and payment for Improvements Pertaining to the Realty. Staff are requesting that Council approve this Agreement to Acquire Improvements Pertaining to Realty (Attachment B) as it deviates from the City’s Financial Management Manual, Section 480-A regarding the sale of surplus personal property. Per the Financial Management Manual, Section 480-A the

Item 7e
standard process would be to sell or dispose of surplus property at auction with a contracted firm to assist in the sale of unique or special property. The firm would also help dispose of any unsaleable property at an approved disposal site. Staff are recommending the City approve the tentative agreement with CoastRiders instead of proceeding with an auction of the surplus property. Staff are additionally requesting Council approve the designation of the remaining personal property acquired (and not bought back by CoastRiders) as “surplus personal property” in accordance with Section 480-A of the Financial Management Manual. Staff will follow the procedures established in the Financial Management Manual when disposing the remaining equipment.

Next Steps and Project Status
Following this action, staff will proceed with assessing the remaining fixtures and equipment procured from CoastRiders to determine if there is any value to the City. Staff will then proceed with distributing or disposing of these fixtures and equipment in accordance with Section 480-A of the Financial Management Manual.

The Mid-Higuera Bypass Project is currently in the final stages of the design process, anticipating the completion of final plans by July of this year. Staff plan to advertise the project by September and award a construction contract by December. The start of construction is anticipated in February of 2025, and continue into early 2026.

Previous Council or Advisory Body Action
July 19, 2022 – Staff met with Council in Closed Session and were authorized to begin negotiations to acquire property easements associated with the Mid-Higuera Bypass Project at 306 Higuera Street.

October 17, 2023 – Staff met with Council in Closed Session and were authorized to continue easement negotiations, including relocation terms with CoastRiders Powersports.

CONCURRENCE
The recommendations presented in the report have been reviewed and approved by the City Attorney’s office.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Design
Easement Acquisition
Complete Final PSE
Advertise and Award
Construction
Project Closeout
2026
Mid-Higuera Bypass Current Schedule
2024 2025

Item 7e

ENVIRONMENTAL REVIEW
The Mid-Higuera Bypass project will be constructed in accordance with the Supplemental Environmental Impact Report (SEIR) and the associated mitigation measures. On August 21, 2018, San Luis Obispo County Board of Supervisors certified the SEIR. SEIR State Clearinghouse Number is SCH2016021077.

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
(Capital Outlay Fund
- LRM)
$621,612.49 $50,717 $570,895.49 $0
State Grant Funding $6,079,000 $0 $6,079,000 $0
County Zone 9
Funding
$1,124,118.30 $0 $1,124,118.30 $0
Water Fund $100,000 $0 $100,000 $0
Total $7,924,730.79 $50,717 $7,874,013.79 $0
The total cost of the improvements pertaining to realty of $50,717 is within the total available budget for the Mid-Higuera Bypass Project, 2090649. The remaining funds in the project account will be used to procure the remaining easements needed for construction, complete utility relocation work, procure construction management and environmental monitoring services, and complete construction. Additional Capital Outlay Funds and County Zone 9 Funds are budgeted for the 2024/25 Fiscal Year and will be used to supplement the existing available budget.

ALTERNATIVES
Deny Authorization to buy and sell back personal property. Council could decide not to approve the agreement with CoastRiders to buy and sell back improvements pertaining to realty. This action is not recommended as the City is obligated to provide compensation for improvements pertaining to realty to displaced persons and businesses.

ATTACHMENTS
A - CoastRiders Powersports Furniture, Fixtures, and Equipment Appraisal Report B - CoastRiders Agreement to Acquire Improvements Pertaining to the Realty C - CoastRiders Bill of Sale

APPRAISAL REPORT REGARDING THE

IMPROVEMENTS PERTAINING TO THE REALTY

AND MOVABLE EQUIPMENT
OF

COASTRIDERS POWERSPORTS

LOCATED AT
306 HIGUERA STREET

SAN LUIS OBISPO, CALIFORNIA

PREPARED FOR THE

CITY OF CITY OF SAN LUIS OBISPO
Effective Date of Value
April 24, 2023
Prepared By

DESMOND, MARCELLO & AMSTER
222 Pacific Coast Highway, 10th Floor
El Segundo, California 90245
44 Montgomery Street, Suite 300
San Francisco, CA 94104
Tel. (310) 216-1400
www.dmavalue.com

May 26, 2023
Ms. Lillian Jewell
Managing senior Associate
Hamner, Jewell & Associates
530 Paulding Circle, Suite A
Arroyo Grande, CA 93420
Re: Appraisal Report of Improvements Pertaining to the Realty and Movable Equipment of Coastriders Powersports
Located at 306 Higuera Street, San Luis Obispo, California Prepared for the City of San Luis Obispo
Dear Ms. Jewell:

As you requested, Desmond, Marcello & Amster (“DM&A”) has made an investigation and analysis of the improvements pertaining to the realty and movable equipment of a business known as Coastriders Powersports located at 306 Higuera Street, San Luis Obispo, California.

The effective date of value utilized herein is April 24, 2023.

The purpose of this appraisal is to provide an estimate of the replacement cost new, fair market value in place, and forced liquidation value of the items appraised.

The intended use or function of this appraisal is to assist the City of Fresno in determining compensation to the owner as a result of the potential partial acquisition of the subject property by the City of San Luis Obispo.

Definitions of and compensation for improvements pertaining to the realty are included under Article 3 of the California Code of Civil Procedure, §1263.205 and §1263.210, respectively. Compensation for losses in connection with tangible personal property is included under §6090 and §6092 of the California Administrative Code, Title 25, Chapter 6. A further discussion of these sections is included in the body of the report.

Desmond, Marcello & Amster, LLC
Valuation and Litigation Consultants
222 Pacific Coast Hwy, 10th Floor
El Segundo, CA 90245
44 Montgomery Street, Suite 300
San Francisco, CA 94104
www.dmavalue.com
Tel: (310) 216-1400

Ms. Lillian Jewell
May 26, 2023
Page Two
Based upon our investigation and analysis, and in reliance upon the information provided, a summary of the appraised values of the property considered as of April 24, 2023, is as follows:

Replacement
Cost New
Fair Market
Value
In Place
Forced
Liquidation
Value
Improvements Pertaining to the Realty –
Located in Acquisition Area (Coastriders)
Improvements Pertaining to the Realty –
Located in Remainder (Landlord)
Improvements Pertaining to the Realty –
Located in Remainder (Coastriders)
$25,795
$5,450
$28,570
$19,820
$3,720
$22,350
$540
$0
$1,335
Movable Equipment –
Located in Acquisition Area
Movable Equipment –
Located in Remainder
$103,040
$50,730
$35,855
$17,440
$10,285
$5,100
The opinions of value are presented in the Summary and Conclusions section and are contingent upon the analysis, facts and Appraiser Certification and Limiting Conditions set forth in the accompanying report.

Respectfully submitted,
Desmond, Marcello & Amster

DESMOND, MARCELLO & AMSTER
MP
G:\users\F & E\San Luis Obispo\Report Folder\Appraisal Report - Powersports Coastriders.docx

TABLE OF CONTENTS
Page

LETTER OF TRANSMITTAL

APPRAISER CERTIFICATION
PROPERTY APPRAISED 1
PURPOSE AND INTENDED USE 1
VALUE DATE/REPORT DATE 1
DEFINITION OF IMPROVEMENTS PERTAINING TO THE REALTY 1
COMPENSATION FOR IMPROVEMENTS PERTAINING TO THE REALTY 1 COMPENSATION FOR MOVABLE EQUIPMENT 2
APPRAISAL DEFINITIONS 2
DESCRIPTION OF THE BUSINESS 3
DESCRIPTION OF THE ASSETS APPRAISED 3
APPRAISAL PROCESS 4
SUMMARY AND CONCLUSIONS 7

ADDENDA

IMPROVEMENTS PERTAINING TO THE REALTY

MOVABLE EQUIPMENT

SUBJECT PHOTOGRAPHS

CONTINGENT AND LIMITING CONDITIONS

CURRICULUM VITAE

APPRAISER CERTIFICATION
I certify that, to the best of my knowledge and belief:
• the statements of fact contained in this report are true and correct. • I performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
• the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • my engagement in this assignment was not contingent upon developing or reporting predetermined results.
• I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.
• my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. • my analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation and the Principles of Appraisal Practice and Code of Ethics of the American Society of Appraisers.
• I made a personal inspection of the property that is the subject of this report. • Raul Bermudez provided significant personal property appraisal assistance to the person signing this certificate.

Dated: May 26, 2023
Marcus Pigrom, ASA
Partner

1 APPRAISAL REPORT

PROPERTY APPRAISED
For the purposes of this report, we have prepared an inventory and valuation of certain improvements pertaining to the realty and major movable equipment located at the subject property.

The items appraised have been valued assuming a 100% ownership interest without consideration for any encumbrances against the property appraised.

PURPOSE AND INTENDED USE
The purpose of this appraisal is to set forth our opinion of the replacement cost new, fair market value in place, and forced liquidation value of certain improvements pertaining to the realty and movable equipment together with our rationale and reasoning in estimating the value of the subject assets appraised.

It is the intended use or function of this appraisal to provide the City of San Luis Obispo and its representatives with information to assist in the potential acquisition of the property for the potential partial acquisition of the property by the City of San Luis Obispo.

VALUE DATE/REPORT DATE
The effective date of value utilized in this report, April 24, 2023, corresponds to the completion of our field investigation. The report date on the accompanying letter corresponds to the final date of report preparation.

DEFINITION OF IMPROVEMENTS PERTAINING TO THE REALTY
Article 3 of the California Code of Civil Procedure, §1263.205 reads as follows:
(a) As used in this article, “improvements pertaining to the realty” include any machinery or equipment installed for use on property taken by eminent domain, or on the remainder if such property is part of a larger parcel, that cannot be removed without a substantial economic loss or without substantial damage to the property on which it is installed, regardless of the method of installation.
(b) In determining whether a particular property can be removed “without a substantial economic loss” within the meaning of this section, the value of the property in place considered as part of the realty should be compared with its value if it were removed and sold.

COMPENSATION FOR IMPROVEMENTS PERTAINING TO THE REALTY
Article 3 of the California Code of Civil Procedure §1263.210 provides for compensation for improvements pertaining to the realty as follows:

2 (a) Except as otherwise provided by statute, all improvements pertaining to the realty shall be taken into account in determining compensation.
(b) Subdivision (a) applies notwithstanding the right or obligation of a tenant, as against the owner of any other interest in real property, to remove such improvements at the expiration of his term.

COMPENSATION FOR MOVABLE EQUIPMENT
Article 3 of the California Code of Regulations, Title 25, Chapter 6, provides for Relocation Payments to Displaced Persons. The following sections are pertinent. §6090(b)(5) Actual Reasonable Moving Expenses – Displaced Business Concerns and Farm Operations: Where an item of personal property which is used in connection with any business or farm operation is not moved but is replaced with a comparable item, reimbursement in an amount not to exceed (1) the replacement cost, minus any net proceeds received from its sale, or (2) the estimated cost of moving, whichever is less. §6092(b) Determining Actual Direct Loss of Property. Actual direct loss of property shall be determined on the basis of the lesser of the following:
(1) The fair market value of the property for continued use at its location prior to displacement.
(2) The estimated reasonable cost of relocating the property.

APPRAISAL DEFINITIONS
Replacement Cost New
The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date. [Source: American Society of Appraisers, Principles of Valuation]
Depreciation
A loss in value from all causes, including factors of deterioration and functional and/or economic obsolescence, as of a specific date. [Source: American Society of Appraisers, Principles of Valuation]
Fair Market Value in Place
In estimating the market value of improvements pertaining to the realty and movable equipment, we have relied upon the definition of fair market value found in Article 4, §1263.320 of the California Code of Civil Procedure, which reads as follows:

3 (a) The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
(b) The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.

In estimating the fair market value in place, additional costs may be incurred to place the asset in service including installation, freight, sales tax, design, and other acquisition costs.

Forced Liquidation Value
The estimated gross amount, expressed in terms of money, that could typically be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date. [Source: American Society of Appraisers, Valuing Machinery and Equipment]
Effective Age
The apparent age of an asset in comparison with a new asset of like kind. It is often calculated by deducting the Remaining Useful Life of an asset from the Normal Useful Life. [Source:

American Society of Appraisers, Principles of Valuation] Estimated Remaining Life
The period over which an item, or groups of items are estimated to remain in use. [Source:

American Society of Appraisers, Principles of Valuation] As Is Value
As is consideration is given in lieu of Replacement Cost New on those items where a reasonable, accurate or comparable new cost is indeterminate or misleading.

DESCRIPTION OF THE BUSINESS
Coastriders Powersports is a motorcycle/scooter sales and services business located at 306 Higuera, San Luis Obispo, California. The business moved to the subject location in 2017 and is owned by Gary White. The business leases the real property.

DESCRIPTION OF THE ASSETS APPRAISED
Major improvements pertaining to the realty consist of signage, surveillance cameras, slatwall, built-in cabinetry, supplemental electrical, LED light fixtures, compressed air piping, installation of an above ground lift and alarm systems.

Major items of movable equipment consist of retail displays, office equipment and motorcycle repair equipment.

4 Highest and Best Use
It is our opinion that the equipment is currently being used in a capacity for which it was designed, and the highest and best use is the continuation of its present use.

Industry
Most of the equipment is the current state of the art and can usually be acquired in the secondary marketplace through used equipment dealers.

APPRAISAL PROCESS
Introduction
The appraisal process consists of three phases. These are: 1) identification, inspection and recording of data; 2) research; and 3) valuation analysis resulting in a conclusion of replacement cost new, fair market value in place, and forced liquidation value.

Identification, Inspection and Recording of Data
The assets valued were first identified by Gary White, the business owner, and subsequently inspected and recorded by the appraiser. The recording included a full description of each asset including, when available, the manufacturer, model, serial number, size and condition of the asset, and any other information that would assist us in the subsequent valuation. The level of maintenance was observed as well as the method of installation.

A complete listing of the business assets appraised, together with the quantity, replacement cost new, fair market value in place, and forced liquidation value, is included in the Addenda of this report. Dimensions of assets are described in the Addenda in the following manner:
• Three-dimensional assets: width (or length) x height x depth • Two-dimensional assets: width (or length) x depth (or height) Research
DM&A has relied upon many sources of information, including, but not limited to, the following:
• An inspection of the subject site;
• A subsequent identification and inventory of the improvements and equipment; • Review of cost and market data on file in the DM&A library; • Supporting documentation retained in DM&A work files;

5 • Communications with and information on file from various individuals and/or companies knowledgeable of the type of assets appraised. They include, but are not limited to, the following:
- YWD Contracting
- ADT Security
- McNamara Electric;
• Various publications and websites providing replacement cost new, including, but not limited to:
- Marshall Valuation Service
- walmart.com
- target.com
- amazon.com
- harborfreight.com
- homedepot.com
- netgear.com
- hdsupply.com
- webstaurantstore.com
- lowes.com
- grainger.com
- globalindustrial.com
- zoro.com
- vevor.com
- bendpak.com
- staples.com
- hdsupplysolutions.com
- mactools.com
- uline.com
- handyindustries.com
- bestbuy.com
- discountramp.com
- revzilla.com
- thecarlsoncompany.com
- eastwood.com
- eautotools.com
- nationalbusinessfurniture.com
- batteriesplus.com
- batterymart.com
- vpstirerepair.com
- derekweaver.com
- redlinestands.com
- officedepot.com
- machinesales.com
- shoppok.com
- tiresupplynetwork.com
- displays2go.com
- eventstable.com
- costlesswholesale.com
- livingspaces.com

6 - mottobatt.us.com.com
- noco.com
- nationwidesecurity.com
- deansafe.com
- posglobal.com
- cctvsecuritypros.com
- townsmarttrailers.com and;
• Various publications and websites providing secondary market data, including:

- ebay.com
- machinerytrader.com
- usedprice.com.

Valuation Analysis
Fair Market Value (in Place)
Fair market value in place represents the investment that would be required to replace existing assets in their present form and condition using valuation methodology, which considers the manner in which the equipment is acquired and put in use when a total business is being created or relocated. In other words, fair market value in place is the value of an asset, designed to fit the specific requirement of the business owner, in an amount which ownership would be justified, given alternative investment opportunities, by a prudent investor contemplating retention of the asset in its present economic employment.

There are three fundamental techniques applied in the valuation of assets. These techniques are based on the cost to acquire (Cost Approach), the cost at which an asset may change hands in the marketplace (Market Data or Direct Sales Comparison Approach) and the present worth of expected future cash flows (Income Approach). The principle of substitution is important to the development and application of the three approaches.1
This principle provides that a prudent
investor will pay no more for an asset, property, or business than he would be required to pay for a replacement serving as a reasonable substitute of equal utility.

This appraisal has relied upon the Cost Approach and Market Data Approach methodologies.

The Cost Approach uses the concept of replacement based on the principle of substitution.

Replacement cost new is used as a basis for the valuation of the assets. The Market Data Approach uses the concept of cost at which an asset may change hands between a willing buyer and willing seller. The Income Approach was considered; however, there is insufficient financial data available to determine the income attributable to each of the assets appraised.

Fair market value in place is developed in two phases. The first phase is development of the base acquisition value of an asset, and the second phase is estimating the cost/value associated with the assembly, installation, or construction of that asset. The total value developed in the two phases is considered fair market value in place.

The acquisition cost of an asset may be represented by the cost of purchasing the item from a used equipment dealer when the Market Data Approach is used, or the cost of purchasing from a vendor of new machinery when the Cost Approach is used. In both cases, additional costs 1 “The Principle of Substitution” Real Estate Appraisal Terminology, Byrl N. Boyce, Ph. D., Page 201

7 incurred to place the asset in service as part of an integrated operation may be given consideration in estimating fair market value in place.

In utilizing the Cost Approach, the fair market value in place of the equipment was based on its estimated replacement cost new less depreciation. Depreciation is based on effective age, remaining economic life, observed physical condition and economic and functional obsolescence.

Current replacement cost for similar or equivalent units and installations were developed by contacting manufacturers’ representatives and the utilization of the DM&A reference library.

When necessary, these costs were adjusted through industry-accepted practices to reflect the costs of these assets as of April 24, 2023.

In estimating the fair market value in place, we have not given consideration to the economic viability of the business and our conclusion assumes that the income supports the valuation.

Forced Liquidation Value
Forced liquidation values are based on market data on file, including conversations with used equipment vendors and dealers, as well as observations of auction results for the same or similar equipment.

SUMMARY AND CONCLUSIONS
Improvements Pertaining to the Realty - Located in Acquisition Area (Coastriders) The application of the Cost Approach provides an indication of value. Based upon the application of this approach to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows:

Replacement Cost New $25,795
Fair Market Value in Place $19,820
Forced Liquidation Value $540
Improvements Pertaining to the Realty - Located in Remainder (Landlord) The application of the Cost Approach provides an indication of value. Based upon the application of this approach to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows:

Replacement Cost New $5,450
Fair Market Value in Place $3,720
Forced Liquidation Value $0

8 Improvements Pertaining to the Realty - Located in Remainder (Coastriders) The application of the Cost Approach provides an indication of value. Based upon the application of this approach to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows:

Replacement Cost New $28,570
Fair Market Value in Place $22,350
Forced Liquidation Value $1,335
Movable Equipment – Located in Acquisition Area
The application of the Cost and Market Data Approaches provides an indication of value. Based upon the application of these approaches to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows:

Replacement Cost New $103,040
Fair Market Value in Place $35,855
Forced Liquidation Value $10,285
Movable Equipment – Located in Remainder
The application of the Cost and Market Data Approaches provides an indication of value. Based upon the application of these approaches to the various assets, our opinion of the replacement cost new, fair market value in place, and forced liquidation value as of April 24, 2023, is as follows:

Replacement Cost New $50,730
Fair Market Value in Place $17,440
Forced Liquidation Value $5,100

A D D E N D A

Item
No. Qty. Description
Replacement
Cost New
Fair Market
Value in
Place
Forced
Liquidation
Value
1 1 $320 $240 $15
2 3 1,050 790 45
3 1 200 150 10
4 16 1,800 1,250 60
5 1 2,125 1,600 0
1 Control pad
1 Code pad
4 Motion sensors
3 Door contacts
2 Roll-up door contacts
6 1 1,250 950 0
7 13 2,925 2,350 260
11 4' wide, dual
2 8' wide dual
8 1 3,400 2,725 0
9 205 3,050 2,300 150
10 8 5,750 4,315 0

COASTRIDERS POWERSPORTS

IMPROVEMENTS PERTAINING TO THE REALTY - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023
Supplemental electrical power outlets, 7- 120V,
including conduit runs and 1- 240V outlet, including
Linear feet (estimate) of compressed air piping, 3/4"
PVC, wall-mounted, including quick connects
Lot of installation, setup and electrical connection for 2 post lifts, including pneumatic connection and floor
bolting on 2- 3' x 3' x 3' foundations, concrete
Surveillance cameras, 1- exterior, 2- interior, including wall mounts and cabling
Yard area floodlight, LED, 3-head, motion activated,
electrical
LED ceiling strip lights, electrical, ceiling suspended, consisting of:

Lot of electrical connection for air compressor, including 240V outlet, conduit run and breaker
Alarm system, consisting of:

Linear feet of ceiling track lighting, with 12 adjustable spotlights
WiFi bridge antenna, manufacturer and model no. not
available, metal, wall-mounted
1 Page 195 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

IMPROVEMENTS PERTAINING TO THE REALTY - ACQUISITION AREA EFFECTIVE DATE OF VALUE - APRIL 24, 2023
11 655 3,925 3,150 0
TO THE REALTY -ACQUISITION AREA $25,795 $19,820 $540

TOTAL IMPROVEMENTS PERTAINING
Square feet of floating concrete floor covering, 0" to 3" high
2 Page 196 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair Market
Value in
Place
Forced
Liquidation
Value
12 1 $4,500 $3,150 $0
13 1 950 570 0
$5,450 $3,720 $0

TOTAL IMPROVEMENTS PERTAINING

TO THE REALTY - REMAINDER - LANDLORD

REPORTEDLY OWNED BY THE LANDLORD

COASTRIDERS POWERSPORTS

IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
Storage deck, 34' long x 5' deep, wood framing, plywood deck, ceiling supports
Utility sink, 42" x 24", wood base, metal top, single
nozzle, plumbing
3 Page 197 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair Market
Value in
Place
Forced
Liquidation
Value
14 1 $5,200 $3,900 $0
15 2 2,600 2,075 200
16 1 4,675 3,975 300
17 11 1,325 1,060 220
18 283 1,700 1,350 150
19 1 2,400 1,925 0
1 Control panel
1 Code pad
5 Motion sensors
2 Door contacts
2 Window contacts
1 Glass break detector
2 Roll-up door contacts
20 4 1,400 1,050 60
21 108 650 520 0
22 3 840 630 0
23 24 3,225 2,425 250
Ceiling lights, 4' x 2', dual fluorescent, plastic facia, electrical

COASTRIDERS POWERSPORTS

IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
Sign cabinet, 4' x 6', metal cabinet, single-sided metal facia, vinyl letters, "CoastRiders Powersports/ Sales & Service", wall-mounted
Signs, 8' x 4', sheet metal, vinyl letters, "CoastRiders Powersports/ Motorcycles/ ATVs/ PWCs/ Sales &
Service, etc.", wall-mounted
Sliding glass front door, 10' x 8' overall, 2 sliders, 31" wide, with 2 full view windows
LED light fixtures, 4' wide, dual, ceiling suspended,
electrical
Square feet of slat wall, laminate, wall bolted, white
melamine finish
Alarm system, Gemini, consisting of:

Surveillance camera, manufacturer and model no. not
available, including wall mounts and cabling
Square feet of slat wall, laminate, grey melamine finish, 4' high, wall bolted
Linear feet of built-in parts shelving, 7' high x 9" deep, laminate, 5- to 9- adjustable tiers, wall bolted, custom fit 4 Page 198 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

IMPROVEMENTS PERTAINING TO THE REALTY - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
24 20 1,400 1,050 0
25 2 1,000 800 0
26 4 1,000 750 100
27 3 525 390 45
28 1 430 300 0
29 1 200 150 10
$28,570 $22,350 $1,335
Linear feet of storage decking, 6.5' high x 2' deep, wood framing and construction, 3 plywood decks, painted
Supplemental electrical outlets, quad, 120V, including
conduit
Wall cabinets, 23" x 30" x 15", laminate, single door
Open wall cabinets, 24" x 24" x 12", laminate, multiple tiers
Chain link security window, 76" x 42", wood frame
WiFi bridge antenna, manufacturer and model no. not
available, including wall mount and cabling

TOTAL IMPROVEMENTS PERTAINING

TO THE REALTY - REMAINDER
5 Page 199 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value
30 1 $385 $135 $40
31 2 385 135 40
32 2 215 75 20
33 1 130 45 15
34 2 80 30 10
35 1 2,775 970 280
36 1 220 75 20
37 1 400 140 40
38 1 155 55 15
39 1 620 215 60
40 2 1,200 420 120
41 1 65 25 5
42 5 275 95 30
43 12 860 300 85
44 1 50 20 5
45 1 6,400 2,550 640
46 1 145 50 15
47 1 55 20 5

COASTRIDERS POWERSPORTS
Folding stepstool, metal, 2 plastic steps
Workbenches, 10' x 24", metal, 2 wood plank decks
Shelf, 33" x 38" x 13", plastic, 2-tier
Small parts/ bins cabinets, sizes vary, 30- to 50-drawer LED strip lights, 4' wide dual

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
Power washer, Greenworks Pro, 3,000 PSI max.

Spill pallets, Eagle, 52" x 6" x 27", plastic
Equipment cart, 30" x 23", tubular metal
Small parts cleaner, Smart Washer, Model no.: 28-1, 48" x 40" x 36", plastic, electric
Above-ground lift, Bend Pak, Model no.: XPR-10A-LP, 10,000 lb. capacity, 10' x 12'
Auto creeper, Mac, wood, vinyl padded seat
Electrical cord wheel, 9" diameter
Drum pumps, manual, rotary type
Fire extinguisher, Sentry, 10 lb.

Parking cones, Bent Manufacturing, 48" high
Gas caddy/ walker, 25 gallon, plastic
Cart, 24" x 18", plastic, 2-tier
Storage cabinet, 3' x 78" x 24", metal, 2-door
6 Page 200 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
48 2 185 65 20
49 1 240 85 25
50 1 175 60 20
51 1 70 25 5
52 1 130 45 15
53 1 110 40 10
54 1 110 40 10
55 1 255 90 25
56 1 175 60 20
57 1 1,875 660 190
58 2 1,550 545 155
59 1 990 250 100
60 1 40 15 5
61 1 880 310 90
62 1 45 15 5
63 1 120 40 10
64 1 Oscillating desk fan, FM, 18" 50 20 5
Bench vise, Larin, 5" wide
Workbenches, 10' x 24", wood, 1 under tier, galvanized metal top, Mak, 1- with bench grinder, Ryobi, 6"
Computer, Del, Model no.: OptiPlex 790, with monitor, 23", keyboard and mouse
Stool wood
Toolbox, U.S. General, 26" x 40" x 23", metal, 8-drawer, 1 side cabinet, 15", 7-drawer, 1 top cabinet, 26" high, 8-drawer, 1 top door Wall shelf, 3' x 40" x 8", laminate, 2-tier
Shelf, 76" x 6' x 18", metal, 3 plywood decks
Shelf, 4' x 7' x 24", boltless metal, 4 plywood decks
Commercial fan, Central Machinery, 30" diameter
Motorcycle lift, Handy, S.A.M., 1,000 air lift, 24" wide, pneumatic Toolboxes, Craftsman, 41" wide x 41" high, metal, 14-drawer, with upper cabinet, 19" high
Tool cabinet, Craftsman, 27" x 39" x 18", metal, 9-drawer, with upper cabinet, 18" high
Air hose reel, 16" diameter, metal
Folding stepstool, Cosco, metal
Floor fan, Patton, 18" diameter
Car jack, Pittsburgh, 1.5 ton
7 Page 201 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
65 1 165 60 15
66 1 385 135 40
67 1 315 110 30
68 1 1,275 445 130
69 1 210 75 20
70 2 155 55 15
71 1 275 95 30
72 1 305 105 30
73 2 165 60 15
74 1 590 205 60
75 1 990 250 100
76 1 900 315 90
77 1 60 20 5
78 2 4,400 1,540 440
79 3 80 30 10
80 1 290 100 30
81 1 315 110 30
Mini-refrigerator, Frigidaire, 2 cubic feet
Microwave, Insignia
Pedestal vise, 5", metal base/ stand
Dual grinder, Motion Pro, 6", with stand
Wall shelves, 16" x 7' x 9', laminate, 2- to 3-tier
Shelf, 77" x 6' x 18", metal, 3 plywood decks
Motorcycle lift, PBI Sprockets, model no. not available, 7' x 4', hydraulic
Jack, Drag Specialties, 16" x 9", metal
Work light heads, 8" x 8"
Motorcycle lifts, Handy, Model no.: 2031, 80" x 4', metal Box fan, Lasko, 2' x 2'
Workbench, 15.5' x 24", wood base, single under tier, galvanized metal top
Computer, Dell, Model no.: OptiPlex 7010, with monitor, keyboard and mouse
Workbench, 8' x 26", wood base, 2 under tiers, galvanized metal top, with work vise, 6"
Fire extinguishers, 10 lb.

Tool cabinet, Craftsman, 27" wide, metal, 5-drawer, 1 top cabinet, 12" high, 2-drawer
Pedestal fan, manufacturer not available, Model no.: LF-30PBC, 30" 8 Page 202 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
82 1 4,100 1,425 410
83 1 1,075 375 110
84 1 400 140 40
85 1 195 70 20
86 1 330 85 35
87 1 70 25 5
88 1 870 305 85
89 1 75 25 10
90 1 100 35 10
91 1 680 240 70
92 1 360 125 35
93 1 210 75 20
94 1 270 95 25
95 2 6,000 2,100 600
1 K&L, Model no.: MC625R
1 Manufacturer and model no. not available, 7' x 2'
96 2 100 35 10
97 2 460 160 45
98 1 165 60 15
Shelf, 19' x 7' x 26", welded metal, 3 plywood decks
Work table, 6' x 30", metal
Tool cart, 28" x 30" x 14", metal, 2-drawer, 1 lower door Printer, Brother, Model no.: HL-L6200DW
Portable charger, Centech, 3-n-1
Electrical reel, Grayco, Model no.: 801
Fire extinguisher, 10 lb.

Shelf, 3' x 7" x 8", laminate, 8-tier
Sandblaster cabinet, manufacturer and model no. not available, 26" x 30" x 18", metal
Workbench, 61" x 28", wood base, 2-drawer, metal top, 1 vise, 6" Shelf, 17" x 7' x 8", laminate, 6-tier
Welder, Miller, Model no.: Millermatic 185
Shelf, 4' x 6' x 2', boltless metal, 5-tier
Motorcycle lifts, hydraulic, consisting of:

Box fans, 24" x 24"
Floor jacks, manufacturer and model no. not available, 3-ton (estimate)
Hand truck, metal
9 Page 203 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
99 5 1,100 385 110
100 1 275 95 30
101 1 65 25 5
102 1 6,600 2,300 660
103 1 290 100 30
104 6 385 135 40
105 1 600 210 60
106 1 135 45 15
107 1 55 20 5
108 1 125 45 15
109 1 4,625 1,625 465
110 1 1,875 660 190
111 1 275 95 30
112 1 6,100 2,135 610
113 1 210 75 20
114 1 225 80 25
115 1 255 90 25
116 3 680 240 70
Tire rack, 55" x 24" x 15", tubular metal, single tier
Shop vac, 16 gallon, 5.5 HP
Shelves, 3' x7' x 12", metal, 5-tier
Tire changer, Hofman, Model no.: Monty 1520
Wheel balancer, Weaver, Model no.: W-957-40, 2020, digital display
Shop press, Central Hydraulics, 20-ton, Sku no.: 32879
Tire changer, K&L, Model no.: MC900
Shelf, 77" x 79" x 9", laminate, 7-tier
Mini battery chargers/ jumpers
Battery charger, Die Hard, Model no.: Gold 6V/ 12V
Charger/ tester, Motobatt, Part: MBT
Wheel balancer/ truing stand, Bike Master
Shelves, 4' x 6' x 18", tubular metal, 4 metal wire tiers Yard blower, Echo, Model no.: PB-231LN
Battery charger, Battery Tender Plus, 12V
Ultrasonic cleaner, Omegasonics, 20" x 16" x 12", stainless steel, with wood stand
Microprocessor controlled automatic battery charger, Battery Tender, 4-station
Work desk, 69" x 30", laminate, 2 lower doors, 2-drawer, upper hutch, 6" deep
10 Page 204 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
117 1 365 130 35
118 1 220 75 20
119 1 1,500 220 65
120 1 75 25 10
121 2 690 240 70
122 1 1,000 350 100
123 1 110 40 10
124 4 205 70 20
125 1 6,000 2,100 630
126 1 85 30 10
127 2 330 115 35
128 6 860 300 85
129 2 90 30 10
130 2 40 15 5
131 1 440 155 45
132 1 820 285 80
133 10 1,425 500 145
134 1 255 90 25
135 1 185 65 20
136 1 1,950 680 195
Gas cans, plastic, 5 gallon
Motorcycle wheel balancer, Snap-On, Model no.: WBM200
Floor dolly, 4' x 4', metal, star-shaped, casters
Hand trucks, metal, heavy duty
Motorcycle wheel dollies, Pittsburgh, 1,000 lb. capacity, 16" x 12" Drill press, King, Model no.: KSD-340M, 1985
Fire extinguisher, 10 lb.

Extension ladders, 1- 20' high, 1- 24' high, metal
Lot of minor miscellaneous items, in storage, not in use Mop bucket, plastic, with mop squeeze
Shelf, 7' x 7' x 2', metal, 3 metal wire tiers
Motorcycle lift, Central Hydraulics, 4.5" to 16"
Motorcycle dollies, sizes vary, tubular metal, manual
Shelf, 4' x 6' x 2', boltless metal, 5-tier
Stepladder, Werner, 8' high, metal
Heavy duty rack, 8.5' x 6.5' x 3', metal, 3-tier
Wheel dollies, 24" x 12", wood construction, carpet covering Gas cans, 19-liter, plastic
Shelving unit, 7.5' x 6.5' x 26", wood construction, 2 plywood decks Work table, 8' x 2', tubular metal frame, wood top, casters 11 Page 205 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - ACQUISITION AREA
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
137 1 7,480 2,620 750
138 1 115 40 10
139 1 2,275 800 230
140 1 600 210 60
141 1 460 160 45
142 1 155 55 15
143 1 290 100 30
144 1 430 150 45
145 1 600 210 60
146 1 670 235 65
147 1 770 270 75
148 2 610 215 60
149 1 120 40 10
150 1 195 70 20
TOTAL MOVABLE EQUIPMENT - ACQUISITION AREA $103,040 $35,855 $10,285 Pallet rack, 10.5' x 9' x 44", metal, 2 plywood decks
Belt sander, Craftsman, 2.5", 1 HP
Oil funnel drain tank/ cart, Pittsburgh, 20 gallon, metal Oxy-acetylene torch kit, including cart, tanks and gauges Portable cooler, Luma, Model: Comfort, 26" x 41" x 17", plastic Storage cabinet, 36" x 42" x 24", metal, 2-door
Workstation, Craftsman, 54" x 33" x 20", metal, 5 lower drawers, 18" wide, 1 lower door
Chainsaw, Echo, Model no.: CS-306
Chainsaw, Rancher, 24" blade
Portable air compressor tanks, 1- Cheetah, Model no.: CH5, 1- Midwest Products, model no. not available, 5 gallon
Pedestal fan, Patton, 18"
Grill, Kenmore Elite, 58" wide, stainless steel, 8-burner Air compressor, IR, Model no.: 2340L5X1, vertical, 175 PSI, 60 gallon, 5 HP
Table, 5' x 30", metal top and legs
12 Page 206 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value
151 2 $640 $225 $65
152 1 450 160 45
153 8 310 110 30
154 1 70 25 5
155 1 1,650 500 165
156 1 330 115 35
157 1 40 15 5
158 4 230 80 25
2 4' x 12"
1 6' x 20"
1 8' x 16"
159 1 70 25 5
160 1 80 30 10
161 1 660 230 65
162 1 300 105 30
163 1 140 50 15
164 1 95 35 10
165 1 150 55 15
166 2 120 40 10
167 1 650 225 65
Floor heater, Lasko, Ceramic Element

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
Banners, 1- 8' x 3', 1- 8' x 4', vinyl printed décor, Vespa/ Sales & Service"
Television, LG, 50", with wall mount
Resin chairs, plastic
Coffee tables, 21" x 21", wood
All-in-one machine, Brother, Model no.: MFC-8950DW
Printer, Brother, model no. not available
Stand, 20" x 22" x 21", metal, wicker top
Wall shelves, metal wire, with wall brackets, consisting of:

DVD player Phillips, Model no.: DVP5990
Microwave, Sharp, Carousel
Over/under refrigerator, Welbilt, 23" x 55" x 22"
Stand/ break room counter, 31" x 55" x 17", stainless steel, 2 under tiers, 1 top shelf, 6" deep
Garment stand, 4-way. 48" high, tubular chrome
Task stool, plastic base, chrome foot ring, fabric seat and back
Guest chair, metal sled base, fabric seat and back
Sofa, 92" wide, padded fabric upholstery
13 Page 207 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
168 1 55 20 5
169 1 160 55 15
170 1 30 10 5
171 1 60 20 5
172 1 105 35 10
173 1 75 25 10
174 8 440 155 45
175 1 250 90 25
176 1 315 110 30
177 5 990 345 100
178 1 185 65 20
179 1 225 80 25
180 3 1,225 430 125
181 1 2,275 800 230
182 1 3,025 1,050 305
183 1 95 35 10
184 1 Bicycle tire stand, T.C.D.D., Inc., Model no.: 173012, metal 70 25 5 Tire storage rack, 72" x 63" x 17", tubular metal, 2-tier Pedestal oscillating fan, Lasko, 18" diameter
Toolbox, 20" x 16", metal, 1 top door, 4-drawer
Folding stepstool, metal, 2 plastic steps
Load tester, Motobatt, Part: MBT
Battery charger, Shorai, Model no.: SHO-BMS01
Charger, Noco, Model no.: Genius 5
Battery tester leads, sizes vary
Tire storage rack, 75" x 84" x 20", tubular metal, 3-tier Tire storage rack, 8' x 84" x 21", tubular metal, 3-tier Tire storage racks, 67" x 62" x 17", tubular metal, 2-tier Tire storage rack, 56" x 85" x 15", tubular metal, 3-tier Storage shelves, 3' x 7' x 8', laminate, 7- and 8-tier, 1- with no shelves
Safe, Sargent & Greenleaf, Inc., 38" x 69" x 24", steel, dial entry, single door
Safe, American Security Products, 30" x 60" x 24", steel, dial entry
Portable air compressor, CH, Model no.: FP202801, 1
gallon, 110 PSI
14 Page 208 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
185 2 530 185 55
186 3 890 310 90
187 1 400 140 40
188 1 130 45 15
189 9 1,525 535 155
190 2 70 25 5
191 1 115 40 10
192 1 220 75 20
193 1 475 165 50
194 2 100 35 10
195 2 150 55 15
196 1 195 70 20
197 1 4,625 1,625 465
198 3 4,700 1,400 470
199 2 120 40 10
Stools, wood, 1- swivel top
Motorcycle/ scooter ramps, 7" to 12" wide, metal, 4' to 12' long, 6- folding type
Storage racks, 4' x 6' x19", boltless metal, 5 laminate tiers Battery display rack, 17" x 63" x 9", tubular metal, 6-tier Display shelf, 25" x 66" x 19", plastic, 5-tier
Assorted banners, 4' x 18" to 8' x 4', vinyl, printed graphic décor, vendors vary
Fire extinguisher, 10 lb.

Sidewalk sign, 31" x 36", plastic base, interchangeable letter sign face
Computers, 1- Dell, Model no.: Precision 3431, 1- Gateway, model no. not available, 1- HP, model no. not available, with keyboard, mouse, and monitor, LG, 32", speakers
Key lock boxes, 10" x 12", metal and plastic
Display case, 2' x 6' x 2', laminate base, clear plastic facias, 4-tier, illuminated
Stools, wood
Stools, Workpro, tubular metal, vinyl top
Yard blower, Milwaukee, Model no.: M18
Reception counter, 20' x 42" x 32", laminate, decorative décor, 4-door, 19-drawer, open under storage
15 Page 209 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
200 1 40 15 5
201 1 60 20 5
202 1 155 55 15
203 3 415 145 40
204 1 160 55 15
205 1 430 150 45
206 1 750 265 75
207 1 330 115 35
208 1 255 90 25
209 1 220 75 20
210 1 380 135 40
211 1 590 205 60
212 3 1,825 640 185
213 2 240 85 25
214 1 275 95 30
215 1 360 125 35
216 1 115 40 10
217 1 10,000 3,500 1,000
Fire extinguisher, 10 lb.

Forklift, Daewoo, Model no.: GC2SE-3, cushion tires,
propane
Router, Asus, model no. not available
Switch, Linksys, Model no.: SE3005
External hard drive, Rocket Fish, model no. not available Credit card terminals, Ingenico, Model no.: iPP320
Portable telephone, Grandstream
Receipt printer, Star, Model no.: TSP700II
DVR recorder, Lorex, Model no.: 4K Ultra HP
Printer, Brother, Model no.: HL-L6200DW
All-in-one machine, Brother, Model no.: MFC-7840W
Bill counter, manufacturer and model no. not available
File cabinet, Hon, metal, 4-drawer
Storage cabinet, 30" x 64" x 12", laminate
Back counters, 74" x 36" x 18", laminate, 8" high
backsplash
Wall shelves, 6' x 12", metal wire
Key rack/ board, 30" x 30", wood, 100-hook
File cabinet, letter size, metal, 3-drawer
16 Page 210 of 332
Item
No. Qty. Description
Replacement
Cost New
Fair
Market
Value in
Place
Forced
Liquidation
Value

COASTRIDERS POWERSPORTS

MOVABLE EQUIPMENT - REMAINDER
EFFECTIVE DATE OF VALUE - APRIL 24, 2023
218 1 2,750 960 275
219 1 1,075 375 110
220 1 495 175 50
$50,730 $17,440 $5,100
Shelf, 99" x 8' x 24", wood, 3 plywood decks
Bicycle trailer, Rampless, Model: Basic Black Single, 8' x 50", with winch
Tool storage box, Knaack, 4' x 36" x 30", metal, casters

TOTAL MOVABLE EQUIPMENT - REMAINDER
17 Page 211 of 332

COASTRIDERS POWERSPORTS

SUBJECT PROPERTY

SIGNAGE

COASTRIDERS POWERSPORTS

RETAIL AREA - REMAINDER

SLATWALL & UPPER STORAGE DECK

COASTRIDERS POWERSPORTS

SERVICE COUNTER

BUILT-IN SHELVING

COASTRIDERS POWERSPORTS

TIRE STORAGE ROOM
REAR SERVICE REPAIR BUILDING – ACQUISITION AREA

COASTRIDERS POWERSPORTS

SERVICE AREA

MOTORCYLCE LIFTS

COASTRIDERS POWERSPORTS

ABOVE GROUND LIFT & LED LIGHTS

REPAIR WORKBENCHES

COASTRIDERS POWERSPORTS

TIRE REPAIR EQUIPMENT

BATTERY ROOM

COASTRIDERS POWERSPORTS

STORAGE AREA

AIR COMPRESSOR

CONTINGENT AND LIMITING CONDITIONS
(1) No responsibility can be taken by the appraiser for the inability of the owner(s) of this business to sell the subject assets at the appraised value. (2) No responsibility can be taken for the accuracy of information on the ownership of the assets appraised. All information was provided by the business owner(s) or their representative and is assumed to be correct. No warranty is given as to the accuracy of such information.
(3) Disclosure of the contents of this appraisal report is governed by the bylaws and regulations of the American Society of Appraisers and the Uniform Standards of Professional Appraisal Practice (USPAP).
(4) No responsibility is assumed for matters legal in nature. (5) No liabilities were considered. Value conclusions are free and clear of liens, easements and encumbrances.
(6) The fee for this appraisal report does not contemplate appearance in court or before other governmental agencies as an expert witness. However, Desmond, Marcello & Amster will appear if prior arrangements are made. Expert witness testimony will be compensated for at the appraisers’ professional fee rates. (7) This appraisal and its conclusion are subject to review upon presentation of data which is undisclosed or not available at this writing.
(8) Neither all nor any part of the contents of this report, particularly as to the conclusion, the identity of the appraiser, or reference to the American Society of Appraisers, shall be conveyed to the public through advertising, public relations, news or other media without the prior written consent and approval of the appraiser. (9) No responsibility is taken for changes in market conditions and no obligation is assumed to revise the final report to reflect events or conditions which occur subsequent to the date hereof.
(10) Full compliance with all applicable federal, state, and local environmental, zoning and similar laws and regulations is assumed, unless otherwise stated. (11) The results of this appraisal including the opinion of value are made only for the stated effective date of value and the purpose stated, and shall not be used for any other purpose.

(12) It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any federal, state or local government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. (13) The existence of hazardous substances, including without limitation, asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to our attention nor were we aware of such during our inspection. We have no knowledge of the existence of such materials on or in the property unless otherwise stated. We are not qualified to test for such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may affect the value of the property, the value estimate is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them.
(14) You agree to indemnify and hold harmless Desmond, Marcello & Amster from and against any and all liabilities, damages, costs and expenses (including attorneys’ fees) which may be incurred by Desmond, Marcello & Amster as a result of any action(s) brought against us in connection with our report.
(15) Acceptance of and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and limiting conditions.

DESMOND, MARCELLO & AMSTER

TANGIBLE ASSET VALUATION SPECIALISTS
THE FIRM: GENERAL DESCRIPTION
Since 1968, Desmond, Marcello & Amster has provided clients in both the public and private sectors with expertise in the valuation of closely-held businesses, professional practices, and specific tangible and intangible assets, such as furniture, fixtures and equipment and goodwill. Since the enactment of the California Eminent Domain Law of 1976, DM&A has specialized in providing valuation services for eminent domain proceedings.

Desmond, Marcello & Amster has completed over one thousand appraisals under the California Eminent Domain Law, for both government agencies and private parties. The valuation analysts at DM&A work in conjunction with condemning agencies, business owners, attorneys, relocation agents, acquisition agents, developers, and real property appraisers to provide defensible value opinions.

DM&A is staffed to provide its eminent domain clients a full breadth of valuation services. This multidisciplinary capability enables DM&A to address complex valuation issues involving furniture, fixtures and equipment.

Desmond, Marcello & Amster offers the following eminent domain valuation services:
 Exposure estimates of goodwill loss and fixtures and equipment value for budgeting purposes;  Preliminary fixture and equipment and goodwill loss studies;  Comprehensive appraisal reports of goodwill loss, and fixtures and equipment;  Analysis of precondemnation damages and inverse condemnation claims;  Assistance in negotiating settlements;
 Expert witness testimony; and
 Educational seminars on goodwill loss valuation issues.

Litigation support services include:
 Assistance in developing questions for depositions and interrogatories;  Review of opposing appraisals;
 Assistance in coordinating other key witnesses;

 Outlining examination for direct testimony and cross examination; and  Development of rebuttal testimony.

PROFESSIONAL AFFILIATIONS AND DESIGNATIONS
Individual staff members of Desmond, Marcello & Amster are associated with the following:

American Society of Appraisers (Members and Candidates) CFA Institute (Member)
International Right of Way Association (Member)
American Institute of Certified Public Accountants (Member) California Society of Certified Public Accountants (Member) Institute of Management Accountants (Member)

PUBLICATIONS
DM&A publishes the Compensable Business Loss Review, a technical newsletter first released in 1988.

The Review covers a wide array of eminent domain topics including valuation, acquisition, relocation and legal issues.

LECTURES AND SEMINARS
Firm members regularly conduct seminars for public agencies, professional appraisal organizations and law firms on how to appraise goodwill loss under §1263.510 of the California Eminent Domain Statute.

EDUCATION
Members of the firm hold graduate and undergraduate degrees from the academic institutions of Harvard, Wharton (University of Pennsylvania), University of Michigan, Claremont McKenna College, Loyola Marymount University, University of Southern California, and California State University, Long Beach.

All firm members are regularly involved in continuing education courses in finance, accounting and valuation.

Item 7f
Department: Community Development
Cost Center: 4001
For Agenda of: 5/7/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Ivana Gomez, Cannabis Business Coordinator SUBJECT: ANNUAL CANNABIS BUSINESS PROGRAM UPDATE

RECOMMENDATION
Receive an update on the City’s Cannabis Business Program.

REPORT-IN-BRIEF
The annual report is an opportunity for staff to provide an update to the City Council on the overall progress of the Cannabis Program and to recommend policy and regulatory changes to improve the commercial cannabis application and operational processes.

Only one application period has passed since the policy changes implemented in 2023, and no critical amendments to the program have been identified as being immediately needed for this program update. Therefore, staff anticipates that at the next annual update there will be recommendations for program amendments based on operational and administrative experiences.

This report presents, for Council’s consideration, 1) a review of operator permit changes, 2) cannabis tax and permit fee revenue forecast updates, and 3) future program updates and cannabis industry trends.

POLICY CONTEXT
At the direction of Council, staff returns annually with an update to the Cannabis Business Program.

DISCUSSION
Background
Effective November 9, 2016, the Adult Use Marijuana Act (AUMA), also known as Proposition 64, legalized the recreational use of cannabis for adults aged 21 and older in California, allowing possession, cultivation, and sale of limited amounts, while establishing regulations and taxation for the cannabis industry. On May 15, 2018, the City Council adopted Ordinance 1647 (2018 Series)1 establishing overall regulations for

1 O-1647 Zoning Amendments for Cannabis Business and Personal Cultivation (slocity.org)

Item 7f
commercial cannabis activity in the City and identifying zones where various business types are allowed. The regulations established a two-step process that first requires certification of eligible business operators followed by the approval of a land use permit for the specific site. Those regulations took effect on November 27, 2018, after the residents of San Luis Obispo voted to authorize Measure F-18 establishing cannabis business taxes for all commercial cannabis activity.

At the last annual update in March 2023, Council adopted Ordinance No. 1725 (2023 Series)2, amending the Municipal Code to modify specific rules for retail storefront operations including hours of operation, delivery, and medicinal sales. Staff returned to Council in May 2023, and Council approved Resolution No. 11417 (2023 Series)3 updating the Merit Criteria for all permit types to clarify submittal requirements and points awarded to ensure fair evaluation and ranking of commercial cannabis operator permit applications. Council also approved Ordinance No. 1727 (2023 Series)4, expanding the Cannabis Business Overlay Zones to include recently annexed areas such as the Fiero Lane-Clarion Court and East Airport Areas, and Ordinance No. 1728 (2023 Series)5, adding background check requirements for owners that lease real property to cannabis operators. These updates applied to the City’s recent open application period for all permit types beginning July 1,2023, and ending August 15, 2023.

Cannabis Operator Permit Changes
Table 1 below summarizes current operators and operator permit changes in the City.

There are currently two retail storefronts open and operating, and one retail storefront was approved during the last application period. The retail non-storefront (delivery) ceased operations in early January of 2024.

Business Business Status
Retail Storefronts
1 Megan’s Organic Market Open and operating in City (280 Higuera St) 2 SLOCAL Roots Open and operating in City (3535 S Higuera St) 3 Embarc Pending Planning Commission Use Permit (2410
Broad St)
Retail Non-Storefront (Delivery)
4 Pure SL Closed operation (187 Tank Farm Rd)
Table 1: Summary of Cannabis Operator Changes in the City

2 O-1725 amending Chapter 17.86 and Chapter 9.10 modifying specific rules for commercial cannabis business retail storefront operations (slocity.org)
3 R-11417 approving updates to the Cannabis Operator Permit Ranking Criteria (slocity.org) 4 O-1727 amending the City’s Zoning Map to expand the Cannabis Business Overlay Zones (RZ-0118- 2023) (slocity.org)
5 O-1728 amending Chapter 9.10 (Cannabis Regulations) adding requirements for owners that lease real property to commercial cannabis operators (CODE-0164-2023) (slocity.org)

Item 7f
Business Closure
Since the last updates in May 2023, several changes have occurred. First, Pure SL, LLC (Pure SL), a retail non-storefront (delivery) operation located at 187 Tank Farm Road in the Service Commercial Zone (CS), ceased all operations as of January 5, 2024. Pure SL was issued an operator permit in May 2021 and opened for operation in December of 2022. Their operator permit will expire on June 30, 2024, and will not be renewed. Staff has provided information to the owners regarding the Department of Cannabis Control (DCC) regulations for the termination of a cannabis business and the City’s Finance team is working on collecting taxes owed to the City.

With the closure of Pure SL, the City currently has two commercial cannabis operators in operation, Megan’s Organic Market, LLC, and SLOCAL Roots, LLC, both of which are retail storefronts. As discussed in the next section, the City’s third and final retail storefront has been selected and is pursuing final approvals and authorizations to begin operations.

Application Period Opened
Last year, the City Manager authorized the opening of an application period for all permit types between July 1, and August 15, 2023. Permit types include retail storefront (limited to three total), cultivation (limited to spaces up to 70,000 sq. feet), retail non-storefront (delivery), manufacturing, testing lab, distribution, and microbusiness.

Competitive Permit Types
Retail Storefront (limited to three
total)
Sells cannabis goods to the public on site.

Cultivation (limited to spaces
up to 70,000 sq. ft.)
Any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of
cannabis.

Non-Competitive Permit Types
Retail Non-storefront (Delivery) Conducts retail sales of cannabis goods exclusively by delivery to a physical address.

Manufacturing (non-volatile only) Prepares cannabis products using non-volatile compounds; may also package or repackage and
label or relabel cannabis or cannabis products.

Distribution The procurement, sale, and transport of cannabis and cannabis products between licensees.

Testing Labs Tests cannabis and cannabis products to ensure they meet existing standards.

Microbusiness Engage in at least three of the following commercial cannabis activities: cultivation, manufacturing,
distribution, and retail sale (storefront or delivery).

Table 2: Summary of Cannabis Operator Permit Types

Item 7f
The City received a total of three (3) applications: two (2) retail storefronts and one (1) microbusiness. Microbusinesses are operations which engage in at least three of the following commercial cannabis activities: cultivation, manufacturing, distribution, and retail sale (storefront or delivery). In this case, the applicant proposed a cultivation, distribution, and retail non-storefront (delivery) microbusiness operation. The microbusiness applicant (SLOCAL Supply Co) was unable to meet the minimum required Merit Criteria points for issuance of a Contingent Operator Permit and was disqualified.

Selected Retail Storefront
Applicants for a competitive permit submit their application packages to be scored against the City’s adopted Merit Criteria. Upon submission of a complete application, the Cannabis Application Review Team (CART) is assembled to begin the merit criteria evaluation and scoring process pursuant to the Cannabis Business Operator Permit Scoring Guidelines and Merit Criteria outlined therein. The CART is comprised of representatives from City Departments including Police, Community Development, Code Enforcement, Administration, and City Attorney's Office. The highest-ranking competitive application, as determined by the Council adopted Merit Criteria and as scored by the application review team, qualifies for a Contingent Operator Permit upon approval by the City Manager.

Retail storefronts in the City are limited to three total, therefore only one retail storefront application could be selected. The City Manager approved the issuance of a Contingent Operator Permit to Embarc San Luis Obispo (Embarc) on February 23, 2024. The next steps for Embarc to be able to begin operations include background checks for principals, owners and property owners of record, approval of a use permit by the Planning Commission, and review and issuance of building permits for tenant improvements. This process is expected to be completed before the end of the calendar year, with store opening expected in early to mid-2025.

Cannabis Tax and Permit Fee Revenue
Figure 1 below shows the Cannabis Tax Revenue actuals and budgeted amounts for FY 2020-2024. The actual revenue shown for FY 2024 is through the end of March 2024, and is on track to meet or exceed the budgeted amount. Figure 2 shows the Cannabis Permit Fee Revenue actuals and budgeted amounts for FY 2020-2024. Fee revenue for the FY 2024 is not expected to change from now until the end of the fiscal year.

Item 7f
Figure 1: Cannabis Tax Revenue FY 2020-2024
Figure 2: Cannabis Permit Fee Revenue FY 2020-2024

Item 7f
Future Updates and Industry Trends
Cannabis Business Program
Staff will continue its review of the cannabis program, including the City’s cannabis regulations, merit criteria, application procedures, and industry trends, and will return at next year’s program update to recommend policy and regulatory changes to improve the commercial cannabis application and operational processes, as needed.

State
The DCC has published its first ever Strategic Plan6 and within that, has committed to working with local jurisdictions to identify mechanisms to “strengthen and streamline local cannabis permitting programs and processes.” Specifically, the state has allocated $20 million in phased funding to support the development of cannabis programs for local jurisdictions7. The City of San Luis Obispo does not qualify for this funding; however, Staff will be looking out for more updates that would impact local jurisdictions as they come.

All in all, the industry is seeing a push towards transparency, increased enforcement activity and publishing of that activity to the public.

Federal
At a federal level, there has been discussion of rescheduling cannabis from Schedule I to Schedule III under the Controlled Substances Act. Rescheduling cannabis from Schedule I to Schedule III would mean that it is recognized as having accepted medical uses and potentially lower abuse potential, reflecting a shift in its legal classification and potentially opening avenues for medical research and regulated use. In October of 2022, President Biden issued an executive order directing Cabinet level agencies to reevaluate cannabis status under federal law, and in August 2023, The U.S. Department of Health, and Human Services (HHS) published an unredacted version of its recommendation to the U.S. Drug Enforcement Administration (DEA) to consider rescheduling cannabis, with findings included from researchers at the U.S. Food & Drug Administration (FDA). Many are eagerly anticipating the DEA’s review, however, there is no concrete timeline on when they may respond.

Rescheduling cannabis to Schedule III would provide immediate tax relief from Section 280E of the federal tax code (26 U.S.C. Section 280E) which prohibits taxpayers engaged in the business of certain controlled substances from deducting typical business expenses. Cannabis businesses engaging in commercial cannabis activity would be able to deduct business expenses on federal tax filings and use traditional banks to deposit their earnings. These implications would be impactful for the legal cannabis industry, and it is expected that the City’s current and future operators benefit from this action.

Staff will be following state and federal level changes closely and pursue any changes necessary to the Cannabis Business Program as necessary for its continued administration.

6 DCC Strategic Plan (ca.gov)
7 Local Jurisdiction Retail Access Grant - Department of Cannabis Control

Item 7f

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

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

Total $N/A $0 $0 $0
There are no fiscal impacts related to the City Council receiving this annual report on the cannabis business program.

ALTERNATIVES
There are no alternatives associated with the recommendation.

Item 7g
Department: Information Technology
Cost Center: 1101
For Agenda of: 5/7/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Joshua Erquiaga, Information Technology Manager SUBJECT: AUTHORIZE PURCHASE OF BROADBAND EASEMENT ON DAMONGARCIA PROPERTY

RECOMMENDATION

1. Accept an easement from the owners of the Damon-Garcia Ranch for broadband infrastructure, and in exchange provide payment of $30,000; and

2. Authorize the Mayor to execute an Easement Agreement with the owners and a declaration of acceptance of the Easement Deed.

POLICY CONTEXT
The 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). Section 475 states that acquisition proposals should be consistent with adopted plans and policies and requires Council approval of the acquisition of real property.

The 2023-2025 Major City Goals call out specific tasks related to broadband.  Diversity, Equity, & Inclusion task
o 2.7a - Support the development and implementation of the Broadband Strategic Plan to ensure access is equitable and pursue funding to fill gaps.

The City Council adopted the Broadband Plan on June 20, 2023, to facilitate work to improve broadband access and affordability within the City. This easement is necessary to facilitate the City’s larger redundant fiber-optic backbone ring, which is a key component of the City’s Broadband Plan.

DISCUSSION
Background
In 2003 the City installed new water infrastructure within the Damon-Garcia property, pursuant to an easement negotiated with the Damon-Garcia property owners and granted to the City on October 8, 2003 (see the Council Agenda Report from October 21, 2003.)

Item 7g
At the time, the City also installed, within the waterline easement area, communications conduits alongside the water infrastructure, which was and is standard practice for the City.

On September 20, 2011, the City Council approved an agreement with Digital West Networks, Inc. to allow access to City-owned conduit for the purpose of completing a private fiber-optic network in the City. In exchange for access to the City’s conduit, Digital West agreed to provide the City with certain services, such as data storage and connectivity that represent ongoing value to the City. During the installation of Digital West fiber in the City’s conduit, it was discovered that the existing water line easement was exclusive to the water line use. City staff worked with the Damon Garcia Ranch owners to draft a new easement agreement, and the City Council authorized the Mayor to accept the new easement at the December 6, 2011 City Council meeting.

In July of 2023, while discussing replacement of the existing fiber optic cable within the communications infrastructure for newer, higher capacity fiber optic cable with Astound Broadband (formerly Digital West), City staff discovered that the easement approved in December of 2011 was never recorded with the County. Staff once again engaged the owners of the Damon-Garcia ranch property to formalize the City’s long-standing use of the easement area for communications infrastructure purposes and have prepared a new proposed communications easement, which the Owners have accepted (see Letter of Intent, Attachment A.)
The proposed easement is necessary to maintain City communications infrastructure which runs alongside the water line infrastructure within the Damon-Garcia Ranch Property. The fiber optic cabling within the communications infrastructure provides redundancy to the City’s fiber optic network and ensures fast and reliable communications to City work sites. It completes a ring along the southern edge of the City which ensures that fiber optic cable cuts in other parts of the City do not disrupt critical communications.

The fiber optic cable within the communications infrastructure will also play an important role in the City’s Broadband Plan implementation along the southern edge of the City. As discussed in the December 6, 2011 Council Agenda Report, the communications easement follows the exact same path as the existing, recorded water line easement (Attachment 1, 2, and 3 to Item C3 of the December 6, 2011 Council Meeting), so staff did not utilize title or escrow services for valuation of the easement as a cost-saving measure. No new infrastructure or expansion of easement area is contemplated by the proposed easement agreement and deed.

Similar to the 2011 agreement, City staff originally proposed exchanging the easement for a waiver of fees, specifically a waiver for two subdivision applications. After an extensive discussion around the uncertainty of development related to the Margarita Area Specific Plan, City staff proposed to the property owner compensation in the amount of $30,000, which is roughly equivalent to the fees to be waived for two subdivisions.

Item 7g
City staff have identified available funding in the KVEC Radio Tower Project which will not be needed to complete that project. The KVEC Radio Tower Project is designed to enhance Public Safety Radio coverage of the northern portion of the City. The radio system relies on the City’s redundant fiber optic network to ensure its operation to 99.95% redundancy. The communications conduit across the Damon-Garcia Ranch is a key component of the City’s redundant fiber optic network, and as such City staff have concluded it is appropriate to use this project funding to secure this easement agreement.

Previous Council or Advisory Body Action
The City Council previously authorized the Mayor to accept this easement for City Communications Infrastructure at the December 6, 2011 City Council meeting (Item C3 on the Consent Agenda). This followed approval of a City Communications Conduit Agreement with Digital West Networks, Inc. at the September 20, 2011 City Council meeting. The City Council approved the Broadband Plan at the June 20, 2023 City Council meeting.

Public Engagement
This item is on the agenda for the May 7, 2024 City Council meeting and will follow all the required posting and notification. Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.

CONCURRENCE
There is concurrence from the Administration and Information Technology Department and the City Attorney's Office on this recommendation.

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 State CEQA Guidelines Section 15378.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-21
Funding Identified: Yes

Item 7g
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Capital Outlay
– LRM
$171,750 $30,825 $140,925 $0
Capital Outlay $10,537.48 $0 $10,537.48 $0
IT Repl. Fund $75,601.46 $0 $75,601.46 $0
Total $257,588.94 $30,825 $226,763.94 $0
The KVEC Radio Tower project (2000113) has an available project balance of $257,588.94. The purchase of the communications easement creates a redundant backup to the radio communications system, completing the fiber-optic ring around the city reinforcing the speed and reliability of both emergency communication and standard City communication functions. Title report fees (see Section 475-B of the Financial Management Manual) are estimated at $750. County recording fees are estimated to be $75 based on the current County of SLO Clerk-Recorder Fee Schedule, effective January 1, 2024-June 30,2024.

ALTERNATIVES
Council could decide not to authorize the Mayor to accept the easement and sign the agreement with the property owners. This action is not recommended by staff due to the importance of the existing communications conduit to the City’s fiber optic ring redundancy, and due to the importance of this conduit in the City’s Broadband Plan implementation.

ATTACHMENTS
A - Damon-Garcia Easement Letter of Intent
B - Damon-Garcia Easement Agreement
C - Damon-Garcia Easement Deed

Exhibit A

Damon-Garcia Ranch Easement Agreement for Broadband Infrastructure (APNs 053-431-002, 003)

EASEMENT AGREEMENT
THIS AGREEMENT is made and entered into by and between
Roy A. Garcia and Dolly H. Garcia, co- trustees of the Roy A. Garcia Family Revocable Trust dated April 2, 1992; Janet L Baird, Debbie Garcia-Bjerre, Londie L Padelsky, Ronnie R Garcia; Heidi A Garcia, co-trustees of the Five G Irrevocable Trust; Eileen M Damon, trustee of the Damon Family Trust under agreement dated September 11, 1994, Survivors Trust; and Eileen M Damon, trustee of the Damon Family trust under agreement dated September 11, 1994, Exemption Trust, all hereinafter collectively called " Grantor," and The City of San Luis Obispo, a Chartered Municipal Corporation, hereinafter called "City." WHEREAS, an Easement Deed covering the property rights particularly described therein, has been executed concurrently with this Agreement and will be recorded in the Official Records of the County of San Luis Obispo (hereinafter, the “Easement Deed”); and WHEREAS, the Easement is necessary for the City’s fiber optic network and to move forward with the long-standing plan to create a fiber optic “ring” around the City to improve the speed and reliability of both emergency communications and standard City communications functions. The easement is also necessary for the City to be able to honor its agreement with Digital West, which has contracted with the City for access to the conduit for their network; and WHEREAS, the Easement occupies the same physical space as an existing water line easement granted to the City as depicted in the Easement Deed recorded on November 5, 2003, as Instrument No. 2003128690 in the Official Records of the County of San Luis Obispo (the “waterline easement.”)
In consideration of which, and other considerations hereinafter set forth, it is mutually agreed as follows:

1. The parties have herein set forth the whole of their agreement. The performance of this Agreement constitutes the entire consideration for said Easement.

2. The City shall:
a. PAYMENT – Pay to the order of the Grantor the sum of Thirty-Thousand Dollars ($30,000), as consideration in full for the real property interests being conveyed in the referenced Easement Deed. Said sum shall be paid within thirty (30) days of the recordation of the Easement Deed.
b. MISCELLANEOUS COSTS – Pay all recording fees incurred in this transaction. c. PROPERTY MAINTENANCE – Generally maintain the surface of the easement areas described in the referenced Easement Deed at the condition as it exists at the time of execution of this Agreement, to the extent reasonably practical. City shall not be responsible for maintenance or repairs to damage of the surface of the easement areas not caused by the City or its contractors.

Damon-Garcia Ranch Easement Agreement for Broadband Infrastructure (APNs 053-431-002, 003) d. INDEMNIFICATION – Indemnify, and hold harmless Grantor from any and all claims, damages, costs, judgments, or liability caused by City or its officers, employees, invitees, and agents arising from or as a result of the operation of City facilities on Grantor's property.
e. RECORDATION OF INSTRUMENT – Accept the Easement Deed herein referenced and cause the same to be recorded in the office of the San Luis Obispo County Recorder upon assurance that clear title can be conveyed to the City.

3. LEASE INDEMNIFICATION - Grantor warrants there are no oral or written leases on all or any portion of the easement areas described in the referenced Easement Deed, except for the waterline easement granted in favor of the City, or if there are any such leases, Grantor agrees to hold the City harmless and reimburse City for any and all of its losses and expenses occasioned by reason of any lease of said property held by tenant of Grantor.

4. The Parties agree:
a. TRANSFER OF EASEMENT –City shall not transfer the Easement without the approval of Grantor.
b. MODIFICATION FOR RECORDATION – The Parties agree that, should the Clerk Recorder for the County of San Luis Obispo reject recordation of the Easement Deed, the Parties will reconvene and modify the Easement Deed and/or execute additional document(s) to the extent necessary to allow recordation. Any such modification or additional document execution under this Provision shall substantially retain the Parties’ respective rights and obligations set forth in this Agreement.
c. ARTICLE HEADINGS - Article headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants and conditions of this Agreement.
d. SUCCESSORS AND ASSIGNS - This Agreement shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. e. COUNTERPARTS - This agreement may be executed in counterparts, each of which so executed shall irrespective of the date of its execution and delivery be deemed an original, and all such counterparts together shall constitute one and the same instrument.
f. COMPLETE UNDERSTANDING - This Agreement and the Easement Deed constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations, prior discussions, and preliminary agreements or understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. g. CITY COUNCIL APPROVAL – Prior to signing, the Agreement will be approved and ratified by the City Council of the City of San Luis Obispo. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity.

Damon-Garcia Ranch Easement Agreement for Broadband Infrastructure (APNs 053-431-002, 003) No Obligation Other Than Those Set Forth Herein Will Be Recognized.

GRANTOR:

ROY A. GARCIA FAMILY REVOCABLE TRUST DATED APRIL 2, 1992 _____________________________ Date: _______________________ By: Roy A. Garcia, Trustee
_____________________________ Date: _______________________ By: Dolly H. Garcia, Trustee

THE FIVE G IRREVOCABLE TRUST
_____________________________ Date: _______________________ By: Janet L. Baird, Trustee
_____________________________ Date: _______________________ By: Debbie Garcia-Bjerre, Trustee
_____________________________ Date: _______________________ By: Londie L. Padelsky, Trustee
_____________________________ Date: _______________________ By: Ronnie R. Garcia, Trustee
_____________________________ Date: _______________________ By: Heidi A. Garcia Breese, Trustee
THE DAMON FAMILY TRUST UNDER AGREEMENT DATED SEPTEMBER 11, 1994,

SURVIVORS TRUST
_____________________________ Date: _______________________ By: Eileen M. Damon, Trustee
THE DAMON FAMILY TRUST UNDER AGREEMENT DATED SEPTEMBER 11, 1994,

EXEMPTION TRUST
_____________________________ Date: _______________________ By: Eileen M. Damon, Trustee
MAILING ADDRESS OF GRANTOR:
[TO BE COMPLETED]

Damon-Garcia Ranch Easement Agreement for Broadband Infrastructure (APNs 053-431-002, 003) CITY:

CITY OF SAN LUIS OBISPO
_____________________________ Date: _______________________ By: Mayor Erica A. Stewart
ATTEST
_____________________________ Date: _______________________ Teresa Purrington, City Clerk

APPROVED AS TO FORM
_____________________________ Date: _______________________ J. Christine Dietrick, City Attorney
MAILING ADDRESS OF CITY:

City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
4890-8688-3765, v. 2

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

Information Technology Department
City of San Luis obispo
990 Palm Street
San Luis Obispo, CA 93401
APNs 053-431-002 & 053-431-003
Exempt from recording fees – Govt. Code §6103

EASEMENT DEED
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Roy A. Garcia and Dolly H. Garcia, co- trustees of the Roy A. Garcia Family Revocable Trust dated April 2, 1992; Janet L Baird, Debbie Garcia-Bjerre, Londie L Padelsky, Ronnie R Garcia; Heidi A Garcia, co-trustees of the Five G Irrevocable Trust; Eileen M Damon, trustee of the Damon Family Trust under agreement dated September 11, 1994, Survivors Trust; and Eileen M Damon, trustee of the Damon Family trust under agreement dated September 11, 1994, Exemption Trust, hereinafter referred to as “GRANTOR,”
Hereby GRANT to:

CITY OF SAN LUIS OBISPO, a Chartered Municipal City, hereinafter referred to as “CITY,” ITEM 1. A permanent communications facilities easement (the “Easement”) with rights of ingress thereto and egress therefrom, to construct, maintain, operate, reconstruct, repair, remove, replace, increase and/or change the number (up to two fiber optic cables) of fibers, cables, appurtenances and incidentals thereto for communications facilities under, within, through and upon certain property in the County of San Luis Obispo, State of California, as particularly described and depicted on attached EXHIBITS A and B which are incorporated into this Easement Deed (the “Easement Area”). The City shall not add additional conduits to the Easement Area without Grantor’s express prior written consent. This right of ingress and egress described above shall extend also to persons contracted by the City to perform work related to the purposes of the Easement stated herein. The Easement shall occupy the same physical space as an existing water line easement granted to the City as depicted in the Easement Deed recorded on November 5, 2003, as Instrument No. 2003128690 in the Official Records of the County of San Luis Obispo.

Relocation: This Easement and the communications facilities located within it may be relocated at a future date to an alternative route through Grantor' s property, by Grantor at Grantor' s sole

cost and expense, subject to City's pre-approval of an acceptable comparable alternative Easement location, City's review and advanced approval of construction plans and specifications, and City's acceptance of replacement facilities constructed per such plans and specifications.

Approval or denial by City shall be at City’s discretion, not to be unreasonably withheld, conditioned, or delayed. In order to pursue any such future relocation, once Grantor' s communications facilities easement relocation proposal is approved by City, Grantor shall execute an easement deed to City conveying an easement over the alternative communications facilities route and may then pursue construction of the replacement communications facilities within said new easement in accordance with the relocation conditions of approval specified by City in conjunction with their approval of Grantor's relocation plan. Once construction of replacement communications facilities is completed to City's satisfaction within the relocated easement and such facilities are accepted by City, City agrees to quitclaim this original easement.

If no easement relocation occurs per the provisions specified herein, this Easement shall remain valid and effective in perpetuity.

ITEM 2 City hereby agrees to provide a minimum of seventy-two (72) hours' notice to Grantor prior to accessing, utilizing or otherwise exercising any right as provided for in this Easement Deed, except in an emergency situation as deemed in the sole discretion of the City. Notice shall be via first class mail, facsimile, overnight mail, email, telephone, or any other electronic communication.

ITEM 3 City shall have right to use the Easement solely for the limited purposes set forth above.

City hereby (a) accepts the foregoing grant of the Easement and hereby expressly agrees to be bound by the terms, covenants and conditions contained in this deed; (b) accepts the Easement Area in its presently existing, “AS IS” condition; and (c) agrees that Grantor has made no representations or warranties to City of any kind or nature concerning the physical condition of the Easement Area. City shall exercise the use of the Easement at City’s sole and complete risk.

ITEM 4 City agrees that any improvements constructed by City shall be done at City's sole cost and expense and in a good and workmanlike manner, and that no liens shall attach to all or any part of Grantor’s property. City shall maintain and repair the Easement Area at its sole cost and expense, to the extent the maintenance or repair is made necessary by the City’s use of the Easement Area.

ITEM 5 This grant of Easement is made on the express condition that Grantor is to be free from all liability by reason of injury or death to persons or injury to property from whatever cause arising out of City’s exercise of rights granted pursuant to this Easement or use of the Easement Area or of any improvements made by or personal property of City thereto or thereon.

ITEM 6 Grantor and City acknowledge that Astound Broadband (“Astound”) is a third-party beneficiary of this Easement with the same rights to the Easement Area as held by the City and subject to the same limitations stated herein. The Parties agree that Astound is a benefited party only to the extent that Astound possesses a right to use the City’s communications infrastructure and network under a valid contract or partnership agreement with the City, and pursuant to the limitations stated therein. Nothing in this paragraph is intended to modify or limit the right of

ingress and egress granted to persons contracted by the City to perform work related to the purposes of the Easement stated herein, as provided in Item 1.

The terms and conditions of Easement deed shall run with the land and be binding upon the heirs and successors in interest to the parties hereto. Notwithstanding the foregoing, City shall not transfer the Easement without the approval of Grantor.

IN WITNESS WHEREOF Grantor has executed this Easement as of the day and year first above written.

GRANTOR:

BY:

NAME:

TITLE:

DATE:

Pursuant to Ca. Govt. Code §27281, this is to certify that the interest in real property conveyed by the deed or grant dated _________ from Roy A. Garcia and Dolly H. Garcia, co- trustees of the Roy A. Garcia Family Revocable Trust dated April 2, 1992; Janet L Baird, Debbie GarciaBjerre, Londie L Padelsky, Ronnie R Garcia; Heidi A Garcia, co-trustees of the Five G Irrevocable Trust; Eileen M Damon, trustee of the Damon Family Trust under agreement dated September 11, 1994, Survivors Trust; and Eileen M Damon, trustee of the Damon Family trust under agreement dated September 11, 1994, Exemption Trust to the City of San Luis Obispo, a governmental agency is hereby accepted by order of the City Council of the City of San Luis Obispo on ______, and the Grantee consents to recordation thereof by its duly authorized officer.

Dated: ________ By: __________________________
Mayor, City of San Luis Obispo

State of California }
County of San Luis Obispo }
On___________________, before me,__________________________________________, Date Name and Title of the Officer personally appeared, _____________________________________________________, Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature Signature of Notary Public Place Notary Seal Above State of California }
County of San Luis Obispo }
On________________, before me,__________________________________________, Date Name and Title of the Officer personally appeared, _____________________________________________________, Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature Signature of Notary Public Place Notary Seal Above A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document.

A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document.

Exhibit A

Exhibit B

City of San Lu is Obispo, Council Memorandu m
City of San Luis Obispo
Council Agenda Correspondence
DATE: May 6, 2024
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
Prepared By: Riley Kuhn, Principal Budget Analyst
VIA: Whitney McDonald, Interim City Manager
SUBJECT: ITEM 8A - FY 2023-24 Q3 BUDGET REPORT AND SUPPLEMENT

PREVIEW
The purpose of this agenda correspondence is to update Attachment A - FY 2023-24 Q3 Budget Report. After publishing of the agenda, it was discovered that Attachment A did not include information on housing work program items as requested by Council on March 5, 2024. A matrix of short-, medium- and long-term housing opportunity work plan items has been prepared by the Community Development Department and has been added to Attachment A- FY 2023-24 Q3 Budget Report. This replaces the attachment that was initially published with Item 8a.

ATTACHMENT
Updated Attachment A - FY 2023-24 Q3 Budget Report

Updated Q3 Budget Report Page 1
Third Quarter Financial Report
Fiscal Year 2023-24
Introduction
This financial report provides an overview of the City’s financial position through the third quarter of Fiscal Year 2023-24 (July 1, 2023 - March 31, 2024) for the General Fund and the four enterprise operating funds.

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

General Fund Update
As of March 31, 2024, operating expenditures and revenues are on target with past years’ third quarters. 1 1 General Fund Update/
Storm Expenditure Update
2 Enterprise Funds
Update
3 Major City Goal
Update
4 Capital Improvement
Plan Update
5 Outlook and
Conclusion
$82 Million in
Revenues
(YTD)
$70 Million in
OpEx (YTD)
3 MCG Tasks
Completed in
Q3
23 CIP
Projects
Completed
through Q3

Updated Q3 Budget Report Page 2
Table 1. General Fund Revenue
Sales and Use Tax (including Measure G): At the end of March 2024, about 70% of the City’s forecasted sales tax revenue for this fiscal year had been collected; this is generally consistent with prior years due to the timing of disbursements from the California Department of Tax and Fee Administration (CDTFA).

The actuals noted above include sales taxes earned July 2023 through February 2024.

Property Tax: The City receives most of its property tax revenue in the 3rd and 4th quarters of the fiscal year and the variable timing explains why current year receipts appear lower than last fiscal year. The County recently sent the City updated property tax estimates that are roughly in line with the mid-year budget. As a reminder, the City participates in the “teeter” system for property tax meaning that disbursements are generally provided two times a year and the City foregoes any potential delinquency fees in exchange for the County advancing all due applicable property taxes (meaning that property tax receipts should always meet budget).

Safety Prop 172: Year to date, revenue as a percent of budget is in line with general sales tax and with expectations. The year over year variance is driven by timing of receipts.

Transient Occupancy Tax (TOT): TOT revenue follows strong seasonal trends and can be highly volatile based on factors like weather, local events, and consumer spending. Year to date revenue is lower than the prior year as March receipts have not been recorded and several payments from February are still outstanding. Staff expect to collect all payments and TOT revenue is broadly on track to meet current year projections.

Utility User Tax (UUT): UUT revenue is trending about 11% lower than last fiscal year due to the timing of receipts. Staff expect this revenue stream to finish on budget and will continue to monitor over the next several months.

Updated Q3 Budget Report Page 3
Business Tax: The City collects business taxes at the beginning of the fiscal year in amounts based on the gross receipts of the previous calendar year. Business Tax should have been entirely collected at this point in the fiscal year, but there are several delinquent filings. Staff have issued citations and are working to collect this revenue.

Cannabis Tax: Cannabis tax revenue has stayed very consistent at $1.1m annually since the second retail location opened in April 2021. Revenue is expected to finish on budget at $1.1m again this year.

Franchise Fees: These are fees on privately owned utility companies and other businesses that use the City's infrastructure to run their businesses. Year to date revenue is down year over year driven by timing of receipts. Staff expect this revenue stream to finish on budget and will continue to monitor over the next several months.

Gas Taxes: Both the Highway User Tax (line 10) and the SB1 Road Maintenance and Rehabilitation Apportionment (line 11) are tracking as expected. The budget for FY 2023-24 is based on information provided by the State. This revenue is based upon a fee per gallon of gas and is not based on gas prices.

Development Review: Revenues are broadly in line with budget for the current year. However, large projects with high fees have a significant impact on total revenue collection, so an abnormal fourth quarter could shift the overall outlook.

Parks & Recreation: Parks and Recreation saw a 15% increase in year-to-date revenue compared to FY 2022-23. This was primarily driven by storm related closures in the prior year.

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

Grants and Subventions: Grant revenues fluctuate from year-to-year based on availability and award success. In many cases, this revenue helps offset expenditures and is not budgeted for. Year to date revenues are up primarily due to mutual aid for the fire department.

Business and Cannabis Licenses: Business license fees are on track with projections. Business licenses are renewed at the beginning of the fiscal year; therefore, 100% of budgeted revenue for the year has already been collected.

Other Revenue: This budget is intentionally conservative as it includes adjustments to the fair market value of the City’s financial assets which are driven by market projections of future interest rates and have proven highly volatile. Interest from the city’s investments is the single largest revenue stream in this line item and is well above budget year to date. This line also includes positive fair market value adjustments which are expected to be reversed at year-end based on recent market developments.

Updated Q3 Budget Report Page 4
General Fund Expenditures
The tables below include year-to-date consumption for FY 2023-24 compared to budget. The “Total Expenditures & Obligations” column includes both costs that have already been incurred and costs that are obligated on purchase orders.

Table 2. Expenditures by Type
There are no significant variances in the General Fund. The PERS Unfunded Liability expenditure is paid upfront to take advantage of a prepayment discount. It is expected that contract services and other operating expenses are more than 75% consumed because annual purchase orders are set up at the beginning of the year and the funds are considered “Obligated” from that point forward. Salaries and benefits should track at a consistent level and at this point in the year, it would be normal to expect about 70-75% of the budget to be expended. The year-to-date actuals indicate there is about 4% salary savings, more than the forecast assumption of 3%.

Updated Q3 Budget Report Page 5
Table 3. Expenditures by Department
As of the third quarter, there are no significant variances in the General Fund departments. Public Safety departments are trending high because the approved equity adjustment parameters for SLOPSOA and Fire employees were not distributed throughout the individual departments but instead budgeted for within “non-departmental” – this will balance out at year end.

Updated Q3 Budget Report Page 6
An Update on Storm Expenditures
As noted in prior budget reports, the winter storms in January and March 2023 caused significant damage to City infrastructure and resulted in emergency declarations at the Federal and State level, in addition to the Emergency Services Director’s local emergency proclamation. The City Council authorized use of up to $9 million from the City’s operating reserve in FY 2022-23 and FY 2023-24 to address unbudgeted storm costs, and with adoption of the 2023-25 Financial Plan, the City Council also approved allocation of $2.75 million in the CIP to fund projects to repair storm damages and mitigate against future damage. The Federal and State declarations enable the City to seek reimbursement for certain storm related costs. The maximum reimbursement for eligible costs is 93.75% (75% from the Federal Emergency Management Agency (FEMA) and 18.75% from the California Office of Emergency Services (CalOES)), meaning that the City will pay a minimum of 6.25% for certain storm related costs. The FEMA reimbursement process has moved slowly due to turnover in the FEMA Program Delivery Managers assigned to assist local agencies in submitting projects for reimbursement and a lack of clarity about the information required in order to submit projects. Based upon information provided by Ernst and Young (EY) (the City’s consultant hired to provide disaster recovery technical assistance), staff expects that reimbursement will be received approximately 12 months following formal submittal of projects to FEMA. The timing of reimbursement is being closely tracked, as the City’s ability to pay back the operating reserve and fund future stormrelated projects is dependent on receiving reimbursement for incurred storm costs.

The City has expended approximately $12.5 million on storm response to date, including debris removal, emergency protective measures, and projects to make permanent repairs to damaged facilities. As noted in prior updates, storm related cost estimates continue to shift as projects are scoped, designed and completed. Currently, the total storm costs are estimated at $35.2 million, slightly down from what was reported in the First Quarter Financial Report. Total costs reflect efforts to not only repair storm damage, but to mitigate against future damage brought on by a potential El Niño year or subsequent storm events.

In order to move quickly to address storm damages, staff continues to use streamlined procurement processes, including the authorization of construction contracts and change orders by the City Manager where necessary and allowable to expedite work in order to protect community health and safety. As of the writing of this report, $9.3 million worth of storm-related expenditures have been submitted to FEMA for reimbursement, including the City’s largest project to repair and stabilize the creek bank at San Luis Drive. Staff continue to work to prioritize the repairs and identify which projects will be eligible for the highest reimbursement.

Table 4. Storm Response Project Status
Row # Projects by Phase Percentage Complete
1 Design 17%
2 Nipomo Bridge over Stenner Creek 10%
3 Remove damaged revetment and install new revetment
upstream and downstream of bridge. Revetment was
undermined during storm event. 10%
4 Prefumo Creek Grade Structure 18%
5 Phase I - Remove damaged grade control structure and install RSP roughened ramp. 25%
6 Phase II - Install new sewer siphon. Sewer siphon relocation. 10%

Updated Q3 Budget Report Page 7
7 Prefumo through Golf Course 20%
8 Phase 1 - Install City Owned Ped bridge 50%
9 Phase 2 - Install creek bank revetment in golf course 5% 10 Phase 3 - Stabilize creek banks upstream of golf course 5% 11 SLO Creek at Elks Lodge 15%
12 Phase 1 - Install RSP on East Side (Elks Side) - armor embankment due to Caltrans revetment 25%
13 Phase 2 - Install creek bank revetment on Elks Lodge side downstream of Elks Lodge 25%
14 Phase 3 - Install soil nail wall on Hwy 101 side of SL Creek near Elks Lodge 5%
15 Phase 4 - Armor bridge abutments at Elks Lane and SL Creek 5% 16 SLO Creek at Mission Plaza 25%
17 Remove and install structural sidewalk 25%
18 Complete 100%
19 Lower Marsh Street Bridge Debris Removal 100%
20 Remove vegetative debris and rock materials downstream and below the Marsh Street Bridge at US 101. 100%
21 Old Garden Creek - 141 Cuesta 100%
22 Remove and replace creek retaining wall 100%
23 Old Garden Creek - 533 Broad 100%
24 Remove RSP and install new RSP + Soil Nail wall 100% 25 Pismo / Johnson Creek Bank Repair 100%
26 Remove revetment and install soil nail wall. Reimbursement for mitigation work has a high likelihood. 100%
27 Prefumo Clearing (LOVR to Laguna) 100%
28 Phase 1 - Remove debris near LOVR to Mariner's Cove 100% 29 Phase 2 - Remove debris removal from Mariner's Cove to Laguna Lake 100%
30 Phase 3 - Culvert Repair 100%
31 San Luis Drive at SLO Creek 100%
32 Install soldier pile wall 100%
33 Old Garden Creek - 152 Cuesta 100%
34 Repair lined portion of Old Garden Creek 100%

Updated Q3 Budget Report Page 8
Enterprise Fund Update
Utilities: Water and Sewer Funds
The tables below include third quarter actuals for FY 2023-24 compared to the budget. The “Total Expenditures & Obligations” column on the expenditure table includes both costs that have already been incurred and costs that are obligated on purchase orders.

Table 5. Utilities Revenue
Revenue: Due to the timing of utility billing, the amounts above reflect eight months of charges for services revenue (i.e. base charges, water sales, sewer services, recycled water sales, etc.) or about 66% of the fiscal year. Relative to projected revenues for fiscal year 2023-24, charges for services are at $31,534,000.00 or 68% of what was budgeted and are on track to meet expected revenues. Year-overyear charges for services reflect about a $1,800,000 or 6% increase and are consistent with the rate increases approved by R-11427 and R-11428. The remaining actual and budgeted revenues are generally lumpy or comprise a very small percentage of expected revenues. An example of lumpy revenue is the Cal OES Grants for flood mitigation infrastructure at the WRRF ($1,500,000 budgeted). Examples of other expected, but smaller revenues include interest on investments, various permits, and sales of surplus assets.
2

Updated Q3 Budget Report Page 9
Table 6. Utilities Expenditures
Expenditures: Currently, there is one significant variance in utilities expenditures to highlight. The Contract Services budget for the Sewer Fund is currently $862,000 or 67% overbudget. This overspend is a result of Water Resource Recycling Facility (WRRF) emergency expenses due to construction sequencing constraints and mercury remediation. In short, residual mercury was encountered during the demolition of a legacy wastewater treatment system that required unexpected expenditures to address, and sequencing constraints at the facility resulted in solids accumulation beyond the WRRF’s processing capacities, which created odors that required additional remediation. Staff obtained Council authorization to add budget for these expenses from Sewer Fund Undesignated Capital (Completed Projects) via R11487. Once these approved changes are implemented, the variance will be addressed. Staff continue to monitor Other Operating Expenses and Utilities accounts due to highly volatile inflation in electric service and chemical costs. Staff foresee being able to cover any overages in these accounts with underspend in other accounts. It is normal and expected that contract services and other operating expenses track above 75% because annual purchase orders are set up at the beginning of the year and the funds are considered “Obligated” from that point forward. Staffing should track at a consistent level and the actuals seen above are due to staffing vacancies and subsequent savings during staffing transitions.

Updated Q3 Budget Report Page 10
Parking Fund
The tables below include third quarter actuals for FY 2023-24 compared to budget.

Table 7. Parking Revenue
Revenue: Revenue from on-street and surface parking lot areas is tracking higher than budgeted which is likely due to conservative forecasts for the rate increases that took effect July 1, 2023. Revenue from citation payments is also tracking higher than budgeted. Enforcement related revenue is difficult to accurately forecast because it is reliant on individuals to violate state and local laws and for an officer to be present to issue a citation for said violation. Revenue from investments is also tracking higher than budgeted because it is unknown at the time the budget is adopted what rate of return the City will realize.

Parking structure revenue is tracking low even after being adjusted at Mid-Year to account for the reestablishment of first hour free program and establishing free Sunday parking in the structures, as approved by Council in November 2023. Recent occupancy studies conducted as part of the Parking Rate Study revealed lower than typical utilization of the parking structures which may be contributing to the lower than anticipated revenue. A rate study is underway and expected to be presented to the City Council in May 2024 to consider potential adjustments to parking rates and other operational modifications, which may alter future fiscal year revenue projections.

Table 8. Parking Expenditures
Expenditures: Contract Services and Other Operating Expenditures are tracking higher than budget mostly due to increased adoption of mobile payment among users. There have been over 200,000 mobile application (app) transactions (all credit card based) in the first eight months of FY 2023-24, in which the City incurs credit card merchant fees. In addition, credit card payments represent over 90% of revenue collected at the pay stations and at the parking meters. At Mid-Year budget review, the credit card merchant fees budget was increased from $205,590 to $390,590 to account for continued and significant digital payment adoption. However, through the first eight months of FY 2023-24, credit card merchant fees were averaging $45,170 per month with a projected year-end of $542,000. Additionally, execution of the Parking Communications Plan has required more resources than originally budgeted , as well have expenditures for out-of-warranty repairs to pay stations and charging stations, regulatory signs and

Updated Q3 Budget Report Page 11
signposts for new enforcement areas, and maintenance equipment for the parking structures. These actual costs have been reflected in adjustments to the FY 2024-25 budget that will be presented as part of Budget Supplement.

Transit Fund
The tables below include third quarter actuals for FY 2023-24 compared to Budget. The “Actuals” column includes both costs that have already been incurred and costs that are obligated on purchase orders.

Table 9. Transit Revenue
Revenue: The Transit program saw a modest year over year decline in transit fare revenue. Fare revenue is vital to secure State Transit Development Act (TDA) funds which require 20 percent of the programs’ operating budget be generated from local revenue (fares, bus passes, and payment from Cal Poly). Most State and Federal revenue is directly tied to capital projects and will not be realized until projects are either initiated or completed and reimbursement requests are submitted. Other Revenue includes interest on investments which is difficult to predict, so revenue from interest is typically conservatively forecasted. At this time, the Transit Fund is tracking as expected for its annual revenues.

Table 10. Transit Expenditures
Expenditures: Salaries and Benefits are trending lower than budget due to reallocation of Mobility Services positions between funds to better align with the workloads of those roles. Other Operating Expenditures is trending low mainly due to the contract for Purchased Transportation services. The City anticipated returning to pre-pandemic levels of service but difficulty hiring and retaining drivers has delayed this effort.

Updated Q3 Budget Report Page 12
Major City Goal (MCG) Update
Three 2023-25 Major City Goals have been completed in FY 2023-24 Q3. The table below highlights the MCGs that were expected to be completed in the current quarter.

Table 11: Major City Goal Tasks with Completion Dates in FY 2023-24 Q3

3

Updated Q3 Budget Report Page 13
At the March 5, 2024 City Council meeting, the Council requested a summary matrix from staff that outlines what the next steps are in terms of short-, medium- and long-term work plan items related to housing needs and opportunities (City Council Agenda Item 8A). This matrix modifies study session “Attachment F – Summary of Future Potential Housing Opportunities” to include both current work efforts underway as well as potential future programs for each portion of the housing continuum for the benefit of further stakeholder engagement.

The matrix is organized into three sections: Short-term existing work program items, mediumterm existing work program items, and long-term potential future work program items. The short- and medium- term existing work program items are efforts that are already in the City’s work program or have been added by staff because they are required by state law or are efforts related to the regular course of work of the housing staff. The last section, long-term potential work program items, are efforts that are not on any work plan at this time but are included for Council’s consideration for inclusion in future budgets and work programs if desired. Most of these ideas were presented in the staff report on the March 5, 2024, however, some additional ideas that were raised by the public or City Council are also included.

Table 12: Housing work program update

FISCAL BUDGET
CYCLE

PROJECT OR

PROGRAM

HOUSING CONTINUUM

COMMENTS

STAFF RESOUCE

LEVEL AND TIMING
A. SHORT-TERM EXISTING WORK PROGRAM ITEMS

1. Comply or Leverage New or Recent State Laws
New
2023-25
Required per
state law
Create program for
pre-approved ADU
plans
MARKET RATE and BELOW MARKET

RATE (BMR)
State law AB 1332 Carillo required
by January 1, 2025.

Low: can include in
exis�ng work
program without
addi�onal funding
New
2023-25
Required per
state law
Zoning Regula�ons
update

MARKET RATE
State law implementa�on of minor
amendments for small lot
ministerial approvals in MF zoned
areas per SB684, ADUs and Density
Bonus (AB1287)
Medium: can
include in exis�ng
work program
without addi�onal
funding

2. Specific Plan or Area Amendments
2023-25 Margarita Area
Specific Plan Update
MARKET and BMR
RFP has been approved and issued.

Medium - Funded,
RFP underway
2023-25 Airport Area Specific
Plan Update
MARKET RATE and BMR where now
allowable under SLO CO Airport
Land Use Plan
Medium – Funded
(Developer)

Updated Q3 Budget Report Page 14

FISCAL BUDGET
CYCLE

PROJECT OR

PROGRAM

HOUSING CONTINUUM

COMMENTS

STAFF RESOUCE

LEVEL AND TIMING

3. Other Incen�ves for Housing Con�nuum
2023-25 Update Impact Fee
Deferrals
BMR
Tenta�vely scheduled for Spring
2024 to give clarity for applicability
and process and develop guidelines
for what fees are eligible to defer
and for how long
Low: underway
2023-25 Council memo on
renter protec�on
op�ons

MARKET RATE
Memo scheduled for Spring 2024
Low to Medium
underway
2023-25 Fund and collaborate
with suppor�ve
housing partners
including HASLO,
TMHA and PSHH to
develop addi�onal
units

BMR/PERMANENT SUPPORTIVE

HOUSING (PSH)/TRANSITIONAL
Ex. Calle Joaquin Homekey
Ex. SLO County Welcome Home
Village
Ex. Developer Applica�ons:

Monterey Senior Housing/THMA
Palm Street Studios/Waterman
Village
High:

Ongoing effort
2023-25 Support 12-parking
space expansion of
overnight safe parking
through 40 Prado HSC
rota�ng safe parking
program.

EMERGENCY SHELTER
Expansion of exis�ng 40 Prado HSC
overnight safe parking to include
addi�onal 12 spaces at rota�ng
sites at City property and faithbased partner sites; program funding needed
Medium:

In progress,
implementa�on
summer/fall 2024
2023-25 RFP BMR
Administra�on
BMR
New RFP for BMR Administra�on to
allow efficient processes and BMR
agreements
Low to medium:

Expected to release
RFP summer 2024
2023-25 Homelessness
Response Strategic
Plan Update
TRANSITIONAL and EMERGENCY

SHELTER
Update and con�nued
implementa�on
High:

Ongoing effort;
update at City
Council May 21,
2024

Updated Q3 Budget Report Page 15

FISCAL BUDGET
CYCLE

PROJECT OR

PROGRAM

HOUSING CONTINUUM

COMMENTS

STAFF RESOUCE

LEVEL AND TIMING
B. MEDIUM-TERM EXISTING WORK PROGRAM ITEMS

1. Comply or Leverage New or Recent State Laws
New/ unfunded
2023-25
Required per
state law
Update Objec�ve
Design standards

MARKET RATE
Update needed to beter address
design needs for smaller scale
developments subject to ministerial
review through new state law [SB 9
HOME Act (Atkins); SB 424;
(Wiener); SB 4 (Wiener); SB 684
(Caballero)]
High:

An�cipated to take
< 1 year to
complete

2. Specific Plan or Area Amendments
2023-25 Upper Monterey
Special Focus Area –
Outreach and
Engagement
MARKET RATE (primarily)
Add integra�on of addi�onal
housing op�ons with mixed-use
and commercial place-making
economic ini�a�ve
Medium
An�cipated to take
1 – 2 years to
compl

3. Other Incen�ves for Housing Con�nuum
2023-25
unfunded
Develop
Downpayment
Assistance Program
BMR
may use future Prohousing
Incen�ve Funds; may seek other
state funding sources; May include
other expanded funding for BMR
housing
Medium:

An�cipated to take
less than one year
to develop
New
2023-25
Support CAPSLO 46
Prado non-congregate
Family Shelter project

EMERGENCY SHELTER
CAPSLO purchased property for 40
Prado Homeless Services campus
expansion for families and poten�al
addi�onal Permanent Suppor�ve
Housing
Medium:

An�cipated to take
between one
1 – 2 years
2023-25 Pre-approve ADU
plans for City use that
are currently available
through SLO County
MARKET RATE and BMR
Allows addi�onal pre-approved
ADU plans for applicant selec�on
Low:

An�cipated to take
less than 1 year
2023-25
unfunded
Parking Standards
Update

MARKET RATE
A project plan and Scope of work
have been prepared for study to
support housing produc�on. If
funded an RFP will be issued.(Note:
addi�onal parking reduc�ons
Medium:

An�cipated to take
approximately 1
year

Updated Q3 Budget Report Page 16

FISCAL BUDGET
CYCLE

PROJECT OR

PROGRAM

HOUSING CONTINUUM

COMMENTS

STAFF RESOUCE

LEVEL AND TIMING
already exist per state law for BMR
units.)
2023-25 Pursue grant funds
and collaborate with
service providers to
Support Resiliency
Strategic Plan for 40
Prado HSC
development more
beds

TRANSITIONAL AND EMERGENCY

SHELTER
(opportunity for new round
Encampment Resolu�on Funds or
other State funds)
Medium:

An�cipated to take
about 1 year
2023-25 Apply for addi�onal
Prohousing Incen�ve
Program (PIP) funds
and other state funds
BMR
Round 2 applica�on submited
(addi�onal NOFA’s expected in the
future) may include downpayment
assistance
Low: An�cipated to
take 1 year
2023-25 Support BMR housing
on City property – Ex.

Waterman Village
BMR
Waterman Village project under
review; need inventory of future
possible sites
Low: An�cipated to
take less than
1 yr
C. LONG-TERM POTENIAL FUTURE WORK PROGAM ITEMS

1. Comply or Leverage New or Recent State Laws
Future Zoning amendments
for addi�onal projects
to receive ministerial
review
MARKET and BMR
poten�al implementa�on SB 10
(Wiener) for arterial corridors in
areas with services specific to
missing middle typologies; may also
include small modular-units homes
or mobile homes in areas that
cannot support height/density or
permanent founda�ons; an�cipate
further state legisla�on
High: An�cipated
to take 1-2 years

2. Specific Plan Amendments
Future Update Upper
Monterey planning
area
MARKET RATE (primarily)
Build upon outreach planned in
2023-2025 to integrate addi�onal
housing op�ons with mixed-use
and commercial place-making
economic ini�a�ve
High: An�cipated
to take between 1
and 3 years

Updated Q3 Budget Report Page 17

FISCAL BUDGET
CYCLE

PROJECT OR

PROGRAM

HOUSING CONTINUUM

COMMENTS

STAFF RESOUCE

LEVEL AND TIMING
Future Mid-Higuera Planning
area
MARKET RATE (primarily)
Develop and integrate zoning and
other incen�ves to allow new
housing op�ons
High: An�cipated
to take between 1
and 3 years

3. Other Incen�ves for Housing Con�nuum
Future Pre-approved plans –
“missing middle”
typologies

MARKET RATE
Develop pre-reviewed designs to
incen�vize missing middle housing
for specific neighborhoods
High: An�cipated
to take 1-2 years
Future Customized Preapproved ADU plans
designs specific to SLO
neighborhoods
MARKET RATE and BMR
Resource need based on number of
plans to provide as pre-approved.

Low to medium:

An�cipated to take
approximately 1
year
Future Allow addi�onal
incen�ves through
zoning amendments in
limited areas to allow
more density or
missing middle
housing

MARKET RATE
Addi�onal incen�ves for downtown
may be addi�onal height or
modifica�on of setbacks; expand
applicable area for flexible density;
expand areas for mul�-family
development
High: An�cipated
to take between 1
and 3 years
Future Develop sustainable
funding for BMR
housing
BMR
Par�cipate in state tax exempt
bond programs to help increase the
supply of BMR rental units; or local
revenue measure
Medium to high:

An�cipated to take
between
1 and 3 years
Future Develop incen�ves for
property owners for
SB 4 (Wiener) housing
development (housing
allowed ministerially
on property owned by
religious
organiza�ons)
BMR – Transi�onal
Addi�onal guidelines or incen�ves
for BMR/Transi�onal housing with
faith-based partners and local
service providers
Medium:

An�cipated to
take1 to 2 years
Future Financial incen�ves for
housing developers –
low interest loans
MARKET RATE and BMR
Develop incen�ves for developers
of specific types of housing, ex.
missing middle. Explore a low
interest loan program
Medium to high:

An�cipated to take
between
1 and 3 years

Updated Q3 Budget Report Page 18

FISCAL BUDGET
CYCLE

PROJECT OR

PROGRAM

HOUSING CONTINUUM

COMMENTS

STAFF RESOUCE

LEVEL AND TIMING
Future Incen�ves for housing
atainable to
households earning
120%-200% Average
Medium Income

MARKET RATE
Develop incen�ves for residen�al
construc�on, rehabilita�on or
ownership programs to increase
opportuni�es for households
earning 120-200% AMI
Medium to high:

An�cipated to take
between
1 and 3 years
Future Remove zoning
requirement for
mixed-use for 100%
BMR housing project
where applicable
BMR
Remove requirement for projects in
Mixed-use districts to require
commercial components that and
that create barriers for
development of 100% BMR
residen�al projects
Low to medium:

An�cipated to take
approximately one
year

Updated Q3 Budget Report Page 19
CIP Update – Completed and Ongoing
Over the past year, the City's Capital Improvement Program (CIP) has achieved significant milestones, demonstrating the City’s commitment to enhancing infrastructure and addressing community needs.

Notable accomplishments in the third quarter of FY 2023-24 include the following:

Prado Road Interchange: The Prado Road Interchange Project in San Luis Obispo is a legacy Capital Improvement Project (CIP) that plays a crucial role in the City's infrastructure development. This project constructs a bridge over US 101, connecting Prado Road to Dalidio Drive and establishing a continuous transportation link between S. Higuera Street and Madonna Road. The project aligns with major City goals such as Housing and Homelessness, Climate Action, Open Space, and Sustainable Transportation, and is identified in the General Plan. Currently, the project is transitioning from the Project Approval and Environmental Document (PA/ED) phase to the Plans, Specifications, and Estimates (PS&E) phase. During a recent Council Meeting on September 5, 2023, staff presented updated project cost estimates based on its progress, projecting a construction cost of $106 million. This estimate included a 5% escalation rate, amounting to $10 million, factored into the total construction cost. Additionally, staff anticipates a total of $20 million in soft costs such as construction management and design, for a total project cost of $126 million. As the project progresses through the PS&E phase, the estimated cost will be refined and adjusted based on value analysis recommendations, ensuring alignment with the project's objectives and financial considerations.

Cultural Arts District Parking Structure: After two decades of planning, work has commenced on the Cultural Arts District Parking Structure. The Cultural Arts District Parking Structure is necessary to address longstanding and growing urban challenges. As the City envisions the realization of future surrounding projects like the SLOREP Theater and housing projects, coupled with the proposed liner building, this new structure serves as a pivotal enabler, ensuring adequate parking provisions to accommodate both existing and forthcoming developments. By adding 397 parking spaces to the downtown inventory, this project aligns strategically with the City's aspirations for increased density in its urban landscape. This structure, poised to more than double the availability of public electric vehicle charging stations, also positions the City as a champion of sustainability, actively supporting greener transportation alternatives and amplifying its commitment to a forward-looking and accessible urban environment. The project is currently in the initial phase of construction, and the shoring wall is close to completion. The parking structure is expected to be completed and operational by January 2026.

North Chorro Greenway: In mid-2023, the City started construction on the North Chorro Neighborhood Greenway project. This project prioritizes bicycle and pedestrian travel between the Foothill Boulevard and North Chorro neighborhoods to downtown SLO.

The Greenway project includes construction of over 40 accessible curb ramps, separated bicycle lanes, safety lighting along the route, public art, and lighting at the Chorro/US 101 underpass, as well as landscaping along the corridor with 60 new street trees and improved stormwater management features.

This greenway makes traveling by bike or on foot a more convenient and low-stress option, in addition to providing safe connections to schools and enhancing the overall quality of life for residents. 4

Updated Q3 Budget Report Page 20
The project is nearly finished, with paving now completed along the entire greenway. Remaining items to be completed include striping, signage, painting of the underpass and columns, and fence installation. The project is anticipated to be completed in the summer of 2024.

Storm Response Projects: Staff’s swift response to the 2023 storm events led to the successful completion of crucial storm projects throughout the city. The largest storm response project was the San Luis Drive Retaining Wall, constructed adjacent to the high school. Several portions of San Luis Obispo creek were also damaged, resulting in the construction of a soil nail wall near the intersection of Pismo and Johnson Streets, as well as debris removal projects under the Marsh Street Bridge and between Prado and Los Osos Valley Roads. A portion of Prefumo Creek that experienced a major flooding event was also cleared to minimize future flooding risk. Several areas along Old Garden Creek were also damaged, including several portions of a retaining wall that fell. These areas were swiftly repaired, often during rain events. The proactive approach to emergency situations, demonstrates the City’s commitment to ensuring the safety and resilience of our infrastructure. Status on all storm response projects can be found on Table 3 above.

Completed Projects: Throughout the year, staff completed 23 diverse capital improvement projects, ranging from the Railroad Bike Path Fencing project to the Prefumo Creek Clearing project. These projects not only improve infrastructure but also contribute to environmental sustainability and community wellbeing.

Active Projects: Currently, 17 projects are in active construction, with numerous others in various stages of design. This active project pipeline reflects an ongoing commitment to progress and development, addressing the evolving needs of the growing community.

Updated Q3 Budget Report Page 21
Table 13. Completed and Ongoing Construction Projects (July 2023-March 2024):

Updated Q3 Budget Report Page 22
Table 14. Status of Major Projects in Design:

Outlook and Conclusion
Based on the third quarter results, the City is well on its way to ending FY 2023-24 in a good financial condition. As identified in the Mid-Year Budget Report there are a number of factors that impact the City’s budget including inflationary pressures and ongoing development which will increase the population of our community over the next several years. Staff is currently working to identify budgetary implications of this long-term growth and expects the need to carefully monitor expenditure growth in order to assure the long-term sustainability of the programs and services provided by the City.

ID# Project

TOTAL ESTIMATED

PROJECT COST
(Design and
Construction)
Estimated
Construction Start
Date Additional Comments
41 Mid-Higuera Bypass $11,550,000 Q3 FY 24-25
Finalizing design documents and easement
acquisition process.
42 Prado Road Bridge and Road Widening $25,000,000 Q2 FY 25-26 Working on regulatory permits and 90%
constuction documents.
43 California and Taft Roundabout $4,000,000 Q2 FY 25-26 Right of way acquisition in progress and finalizing
design documents.
44 Prado Road Interchange $126,000,000 Q2 FY 27-28
Alternative analysis and environmental
document phase. Pursuing advertisement of
CEQA document and final project report.
45 Public Safety Center $1,750,000
Q3 FY 24-25 (for
1106 Walnut
work)
Consultant to analyze two site option for public
safety center project and present conceptual
design for review. Currently working on 1106
Tenant Improvement and Site Security Fencing
project. Construction of 1106 TI and Fencing
project estimated to start March 2025 (Q3 FY 24-
25).

Status of Major and Legacy Projects in Design
5

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: May 7, 2024
TO: Mayor and Council
FROM: Emily Jackson, Finance Director
VIA: Whitney McDonald, Interim City Manager
SUBJECT: ITEM 8A – FY 2023-24 Q3 BUDGET REPORT AND SUPPLEMENT

PREVIEW
Staff received several questions from Council in advance of the Fiscal Year 2023-24 Third Quarter Budget Review and Fiscal Year 2024-25 Supplemental Budget Preview. The questions are below with staff’s response shown in italics:
1) Is it possible to utilize interest income from our investments (part of the "other revenue" category, described on page 274) to address future projected deficits? Or to fund priority projects in the coming year? Staff incorporate conservative forecasts of investment income in the budget and that forecasted interest income is used to fund the operations of the City like any other revenue stream. Investment income includes interest and fair market value adjustments.

The Third Quarter Budget Report reflects fair market value adjustments through December 31, 2023. Since then, yields on representative securities (the two-year US Treasury note) have increased by more than 50 basis points. Fair market value has an inverse relationship with interest rates, meaning we would expect a negative fair market value adjustment at year end.

Staff would not recommend significant increases to the interest income forecast to help close projected deficits due to the volatile nature of interest rates and their impact on the fair market value of the portfolio.
2) What are the added numbers to the Fire budget, reflective of the equity adjustments in the recently approved Memorandum of Understanding? The table below is pulled from the December 5, 2023 Council Agenda Report seeking approval of the successor Memorandum of Understanding with the International Association of Firefighters, Local 3523 and shows the annual cost of the recently approved agreement.