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4.2.4.1 An emergency situation exists (determined by a majority of the Council).
4.2.4.2 The need to take action came to the attention of the City subsequent to the agenda being posted (determined by 2/3 vote, i.e. 4 votes, of the Council; or if less than 2/3 are present, by unanimous vote).
4.2.4.3 The item was continued to another meeting that was scheduled and posted within five days of the original agenda. (GC § 54954.2)
4.2.5 PUBLIC INPUT
The public has an opportunity to address the Council on any item of interest to the public that is within the jurisdiction of the Council. The City has the right to establish time limits on speakers and the total time allocated for a particular issue. (GC § 54954.3)
4.2.6 PUBLIC DISRUPTIONS
The Presiding Officer may call a recess if a speaker or group of speakers become unruly and/or interferes with the orderly conduct of the meeting.
A portion or all of the public may be removed if willful disruption makes conducting the meeting "unfeasible"; the press may remain unless they participate in the disruption. (GC § 54957.9)
4.2.7 CORRESPONDENCE
All writings received and/or distributed for discussion or consideration at a public meeting are public records. (GC § 54957.5)
4.2.8 CLOSED SESSIONS MAY BE HELD TO DISCUSS:
4.2.8.1 Real Property. The purchase, sale, exchange or lease of real property with the City's negotiator; the real property and the person(s) with whom the City may negotiate must be announced in open session prior to the closed session. (GC § 54956.8)
4.2.8.2 Litigation pending or a significant exposure to litigation, or the decision to initiate litigation. The litigation or title must be identified in open session prior to the closed session unless the Council states that to do so would jeopardize its ability to conclude existing settlement negotiation or effectuate service of process. A confidential memorandum from the City Attorney must be submitted to Council no earlier than one week of the closed session. (GC § 54956.9)
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4.2.8.3 Compensation (salaries and benefits) of employees. To review its position and instruct designated representatives. (GC § 54957.6)
4.2.8.4 Personnel. The appointment, employment, evaluation of performance, or dismissal, of a public employee, or to hear complaint against the employee, unless the employee requests a public hearing. (GC § 549576)
4.3 SPECIAL MEETINGS
Special Meetings may be called by the Mayor or a majority of the Council, with strict notification requirements delivered to the media and Council a minimum of 24 hours before the time of the meeting. (GC § 54956)
4.4 EMERGENCY MEETINGS
Emergency meetings may be called without the normal 24-hour notice and posting requirements if prompt action is required due to the disruption or threatened disruption of public facilities. Only work stoppages, crippling disasters or other activities that severely impair the public health and/or safety qualify for emergency meetings. (GC § 54956.5.)
4.5 ELECTRONIC MAIL (EMAIL), THE PUBLIC RECORDS ACT AND THE BROWN ACT
City email is no less a part of “official city business” than any other written correspondence, and there is no expectation of privacy for City email messages.
Good judgment and common sense should therefore prevail at all times regarding its appropriate use. For further detail, please see the City’s “Electronic Mail Policy” and Chapter 5 of this manual.
City email is subject to disclosure under the Public Records Act and is subject to the requirements of the Brown Act. While the Brown Act does not prohibit the use of email to make individual contacts between members of the Council, or the public or staff, great care should be taken to avoid the use of email to contact a majority of the Council, either individually or serially, “in a connected plan to engage in collective deliberation on public business.”
4.5.1 CITY EMAIL
City email is no less a part of “official city business” than any other written correspondence, and there is no expectation of privacy for City email messages. Good judgment and common sense should therefore prevail at all times regarding its appropriate use. For further detail, please see the City’s “Electronic Mail Policy” and Chapter 5 of this manual.
City email is subject to disclosure under the Public Records Act and is subject to the requirements of the Brown Act. While the Brown Act does not prohibit the use of email to make individual contacts between members of
Council Policies & Procedures Manual (rev. 04/02/2024) Page 33 the Council, or the public or staff, great care should be taken to avoid the use of email to contact a majority of the Council, either individually or serially, “in a connected plan to engage in collective deliberation on public business.”
4.5.2 PRIVATE SOCIAL MEDIA AND DIGITAL COMMUNICATIONS
The City does not provide or support individual social media accounts for councilmembers. Councilmembers that maintain personal social and other digital media accounts should be aware that, similar to City email or any other written or recorded communication related to the official conduct of city business, digital communications, social media posts and messages by public officials regarding matters that are before the City for action or within City jurisdiction can be “official city business” subject to laws and policies regarding freedom of speech, records retention and production, and public transparency. Those laws and policies include, but are not necessarily limited to, the California and United States Constitution, the California Public Records Act, the Ralph M. Brown Act, and the City’s records retention regulations.
It is the intent of this policy to ensure that councilmembers are aware that digital and social media communications regarding public business that are conducted using private networks, accounts or devices may be subject to the same laws as other records of public business and that mishandling of such communications in violation of applicable laws may subject to councilmembers and the city to liability under applicable laws and may result in censure of a violating councilmember. This policy is intended to establish parameters for the management of public, private and political digital and social media accounts in compliance with applicable laws and in a manner that avoids the potential for public confusion regarding public, private and campaign related digital and social media activities of councilmembers.
A councilmember or mayor participating in digital or social media communications shall maintain and clearly delineate between separate accounts for official, and personal or campaign statements, taking precaution not to convey personal or campaign communications in a manner that suggests such communications represent the position of the City or the City Council as a whole. To avoid ambiguity, all statements, headings, profile pictures, or biographies on personal or campaign accounts shall not be made in the name of the position to which the councilmember or mayor was elected, shall clearly reflect that content on such accounts does not represent the official positions of the City or the City Council, and shall not display the City logo or any other official City mark or title. There is no California law requiring public officials to use only government accounts to conduct public business, but there should be no expectation of privacy if personal accounts are used to conduct public business.
Council Policies & Procedures Manual (rev. 04/02/2024) Page 34 Statements on official sites and accounts shall contain only official City positions, policies, or announcements, and all contents and messages communicated on such accounts are subject to the California Public Records Act. If a councilmember receives an electronic communication regarding city business on a personal account, they should copy that information to their official city account for transparency and ease of access for public records requests.
Digital records relating to public business are required to be in a manner capable of maintaining the record for the applicable retention period, including through the use of highlights, bins, or archives for temporary and disappearing stories, reels, posts, or otherwise. Likewise, public officials should avoid deleting comments or blocking individuals on official pages or sites they maintain. In the event that a councilmember deletes or removes content or blocks a user for threatening, harassing, or discriminatory content that the councilmember believes constitutes an imminent threat or violation of harassment or discrimination laws, a copy of the deleted or removed content shall be saved or retained consistent with city records retention policies and this policy. Social media content should be treated the same as any written document and retained in accordance with the City retention schedules or the minimum two-year period required under California Government Code.
4.5.3 4.5.3 SOCIAL MEDIA AND BROWN ACT COMPLIANCE
To avoid any violations of the Brown Act, consistent with the update provided by AB 992, councilmembers are permitted to use a social media platform to engage in conversations or communications on matters within the subject matter jurisdiction of the Council: (a) to answer questions; (b) to provide information to the public, and (c) to solicit information from the public. However, a majority of councilmembers may not use social media to “discuss among themselves” official business. AB 992 broadly defines the meaning of “discuss among themselves” to include any “communications made, posted, or shared on an internet-based social media platform between members of a legislative body, including comments or use of digital icons that express reactions to communications made by other members of the legislative body.” AB 992 prohibits a councilmember from communicating directly with the social media of any other member on a subject within the jurisdiction of the Council.
This social media guidance applies to all internet based social media platforms that are “open and accessible to the public,” including, but not limited to, blogs, podcasts, Snapchat, Instagram, Facebook, Twitter, Nextdoor, and Reddit.
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4.6 OTHER PROVISIONS
The Brown Act provides for many other restrictions and requirements; this chapter is intended merely as a Council summary and overview of the Act, and nothing in this Chapter supersedes the provisions of the Brown Act. Since State law constantly changes, it is important to ensure Council has the latest information.
Additional information may be obtained from the City Attorney and/or the City Clerk.
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CHAPTER FIVE
COUNCIL/STAFF RELATIONSHIPS AND CONDUCT
5.1 INTENT
The City Council as a whole retains full power to accept, reject, amend, influence, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, departmental priorities, and the conduct of City business.
This chapter addresses the relationship and conduct between Council Members and staff with the intent of the Council to: 1) affirm that governing shall be by will of the collective Council, and 2) establish guidelines for Council and staff to ensure orderly, consistent and open City government.
5.2 GUIDELINES FOR COUNCIL MEMBERS
The Council shall recognize that the primary functions of staff are to execute Council policy and actions taken by the Council, and to keep the Council informed.
5.2.1 REQUESTS FOR INFORMATION
Individual Council Members as well as the Council as a whole shall be permitted complete freedom of access to any information requested of staff, and shall receive the full cooperation and candor of staff in being provided with any requested information.
Council Members shall make routine requests for information through the appropriate department head. Complex or comprehensive requests for information shall be made through the City Manager.
5.2.2 DIRECTION TO STAFF
Generally, Council Members shall make requests for work to be done through the City Manager. Individual members of the Council shall make no attempt to pressure or influence staff decisions, recommendations, workloads, schedules, or departmental priorities without the prior knowledge and approval of the Council as a whole.
5.3 GUIDELINES FOR STAFF
Staff shall recognize that its primary function is to execute Council policy and to keep the Council informed. Staff shall present the Council with all relevant information, as well as alternatives, in an objective, succinct manner. The City Manager and staff are committed to treating each Council Member equally.
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5.3.1 TIMELY RESPONSE
City staff will make every effort to respond in a timely and professional manner to all requests made by individual Council Members for information or assistance, provided that, in the judgment of the City Manager the request is not of a magnitude, either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council. In terms of making this judgment, the following guidelines should be considered: The request should be specific and limited in scope so that staff can respond without altering other priorities and with only minimal delay to other assignments; the request should only impose a "one-time" work requirement, as opposed to an on-going work requirement; the response to the request should not require a significant allocation of staff resources (generally defined as consisting of more than one staff person, or a single staff person working on the issue in excess of 1-2 hours).
5.3.2 DIRECTION FROM COUNCIL
Staff is obligated to take guidance and direction only from the Council as a whole or from the appropriate management superiors as may be the case.
Staff is directed to reject any attempts by individual members of the Council to unduly influence or otherwise pressure them into making, changing or otherwise suppressing staff decisions or recommendations, or changing departmental work schedules and priorities. Staff shall report such attempts to influence them in confidence to the City Manager, who may inform the Council as a whole of such attempts.
5.3.3 STAFF SUPPORT TO INDIVIDUAL COUNCIL MEMBERS
An exception to the above guidelines may be staff work required in support of a Council Member designated by the City Council to represent the City in an intergovernmental role (e.g., membership on Joint Powers Authority), or relative to a special assignment (e.g., a special task force).
5.3.4 INFORMATION DISTRIBUTION
In cases where a staff response to an individual Council Member request involves written material that may be of interest to other Council Members, the City Manager will provide copies of the material to all other Council Members. In making this judgment, the City Manager will consider whether the information is significant or new or otherwise not available to the Council or of interest to the Council.
5.3.5 SIGNIFICANT INFORMATION
Any information, service-related needs, or policy positions perceived as necessary by individual Council Members, which cannot be fulfilled per the above guidelines, should be raised by the individual Council Member under
Council Policies & Procedures Manual (rev. 04/02/2024) Page 38 the "Communications" category of a regularly scheduled City Council meeting. If so directed by the collective action of the Council, then staff will proceed to complete the work within Council-established deadlines.
5.4 ACCESS TO COMMUNICATIONS / TECHNOLOGY SYSTEMS
The City will provide each Council Member with equal and appropriate communications and technological devices to facilitate their public service and within the confines of the IT standards for hardware and software specifications.
5.4.1 TELEPHONES
The City will provide at their request, each Council Member with direct access to the City’s telephone system from their homes. Information Technology (IT) staff will coordinate installation of a telephone line and a telephone with voicemail and fax capability for Council Member use at home while in office. The City’s Telephone Use Policy applies to Council Member use of these telephones
5.4.2 COMPUTER WORKSTATIONS & REMOTE ACCESS POLICY
The City will provide each Council Member, at their request, with a complete computer workstation and related City-standard software for their home use while in office. These computers and software will be upgraded or replaced pursuant to the City’s computer replacement policy. Council Member access and use of the City's IT is subject to all City guidelines concerning the use of its information technology resources. The most important of these are:
The City information systems exist solely for the purpose of conducting City business, not intended for personal use. All data (including electronic mail messages) is owned by the City and subject to public disclosure.
All software and hardware installations should be made by IT staff on City-owned machines only. Except for screensavers, personal software is not allowed on City workstations; and all application software must be owned by the City and used in compliance with all software licensing agreements.
All City information technology policies are included in the Information Technology Policies and Procedures Manual, which is available for Council Member review upon request.
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5.4.3 SECURITY
Each Council Member shall have a uniquely assigned user name and password for security purposes. While this cannot guarantee privacy, confidentiality, or data security, it is an important component of the City’s overall system protection. Passwords should never be shared with others.
5.4.4 INTERNET ACCESS
Council Members are authorized to use the City Internet connection, which includes electronic mail, for the purpose of conducting City business and communicating with the public. The City Internet Access and Use Policy is applicable to Council Members.
5.4.5 ELECTRONIC MAIL (EMAIL)
Council Members will have access to the City electronic mail (Email) system that will allow Email communication internal to the City and with others via the Internet. Email correspondence sent and received by members of the City Council via the City website are public records and subject to disclosure. The City Electronic Mail Policy is applicable to Council Members.
5.4.6 SUPPORT RESPONSIBILITIES
5.4.6.1 IT staff is responsible for installing all remote access hardware and software, including computer workstations, printers, telephones and fax machines, and for removing them at the end of the Council Member’s term of office.
5.4.6.2 Administration will coordinate training on standard City application software, technical support and service, and provide related office supplies.
5.4.7 COUNCIL MEMBER RESPONSIBILITIES
Council Members are responsible for using City information technology resources in accordance with the City’s normal policies, procedures, and guidelines.
5.5 COUNCIL MAIL HANDLING
All incoming mail addressed to the Mayor and Council Members, will be handled by the City Clerk’s staff in the following manner:
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5.5.1 PAPER AND ELECTRONIC MAIL, PUBLIC RECORD
Both paper and electronic mail addressed to Council Members and delivered to City Hall, or any other City building or facility, or via any City equipment, account, or network, is presumed to be a public record, subject to retention and disclosure requirements as set forth in the City’s Records Retention Policy and the California Public Records Act, unless an express legal exemption or privilege applies. Council Members shall consult with the City Attorney prior to withholding or destroying any document or correspondence received in connection with their service for the City, except as specified herein. Electronic mail is additionally subject to the City’s Electronic Mail policy and Sections 5.4.2 and 5.4.5. Electronic mail will be retained and accessed in accordance with applicable laws and City Information Technology policies.
5.5.2 “PRIVATE, PERSONAL, CONFIDENTIAL” MAIL
Paper mail addressed to an individual Council Member and marked “private,” “personal” or “confidential” shall be date stamped on the envelope or package and shall be logged in by City Clerk’s staff in a manner that records the date of receipt, method of delivery, sender (if reflected on the face of envelope or package received), and recipient. The original will then be placed in the addressee’s City mailbox unopened. If mail has not been retrieved from the Council Member’s mailbox within 2 business days, such mail shall be retrieved by City Clerk’s staff and handled in accordance with Section 5.5.3.
5.5.2.1 Once opened and reviewed by the Council Member, any correspondence that reflects any comment, complaint, inquiry, or request that is or may be related to any matter of City business shall, within 2 business days, be copied as the Council Member deems appropriate and the original document delivered to the City Clerk for handling in accordance with Section 5.5.3. Personal notes (e.g. birthday or holiday cards) that do not implicate City business need not be provided to staff or retained pursuant to Section 5.5.3.
5.5.3 PROCESS FOR PAPER MAIL
All paper mail sent to Council (either as a group or to each Council Member) will be opened, date stamped and the envelope will be stapled to the back of the correspondence. Copies of each correspondence will be scanned and distributed to Council via an email as soon as possible. The original will be filed in the City Clerk’s office consistent with the City’s document retention policy.
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5.5.3.1 Any public correspondence received on behalf of Council that requires staff to follow up with a response on an issue unrelated to a current agenda item will be distributed to Council per Section
5.5.3. Once the written response is prepared by the appropriate department (normally within two weeks) it will be sent to the person who initiated correspondence with the City Council, and all Council Members will receive a copy of the response. Items that require staff follow-up include, but may not be limited to, complaints, information requests, service requests, or other similar correspondence. Responses should be provided in the manner they were received (e.g. an e-mail response is
appropriate for e-mail received, and a written response is appropriate for letters received in the mail).
5.5.3.2 Any public correspondence received on behalf of Council that is related to a current agenda item will be handled via the Agenda Correspondence procedure as stated in Section 1.3.7.
5.5.3.3 Unsolicited mail, advertisements, magazines or journal publications, and other “junk mail” will be date stamped and placed in a Council Members inbox for pick up. These items will not be scanned or logged.
5.5.3.4 If City Clerk staff can verify that an email correspondence has been distributed to all Council Members, it will be handled and retained pursuant to Section 5.5.3 but will not be redistributed.
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CHAPTER SIX
ADVISORY BODY PROCEDURES
6.1 COUNCIL LIAISON SUBCOMMITTEE MEMBERS
6.1.1 APPOINTMENTS TO COUNCIL SUBCOMMITTEES
Subcommittee liaisons to advisory bodies are selected annually by the full Council, usually in December. The Mayor and Vice Mayor shall submit recommendations to the full Council, rotating nominations for Council Member Subcommittees, thereby ensuring an opportunity for each member to serve as liaison at least once on each advisory body, when possible.
When terms of office do not allow each member to serve once, members with greatest seniority shall have first right of selection.
6.1.2 ROLE
Council liaisons do not serve as ex-officio members of the advisory bodies, but rather as a conduit to express the position of the Council and to gain a better understanding of the issues considered by the advisory body.
6.1.3 COMMUNICATION
The purpose of the liaison assignment is to facilitate communication between the Council and advisory body.
6.1.4 EDUCATION
Increase the Council's familiarity with the membership, programs, and issues of the advisory body.
6.1.5 APPOINTMENT RECOMMENDATION
Interview applicants and make recommendations for appointments to the full Council.
6.1.6 ATTENDANCE
From time to time, attend advisory body meetings for observation purposes only. Liaison members should be sensitive to the fact that they are not participating members of the advisory body but are there rather to create a linkage between the City Council and advisory body. In interacting with advisory bodies, Council Members are to reflect the majority view of the Council as a whole, rather than their own personal opinions.
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6.2 COUNTY OR REGIONAL REPRESENTATION
Annually, the Mayor shall make appointments to a variety of County and/or regional committees and boards. One member of the Council shall serve as a voting representative and one member shall serve as an alternate. (See 6.6.2 for appointment procedures.) Voting delegates shall reflect the majority view of the Council as a whole, rather than their own personal opinions.
6.3 OTHER COUNCIL SUBCOMMITTEES
Council may establish subcommittees of no more than two members to address areas of concern and/or study.
6.4 ROLE OF ADVISORY BODY MEMBERS AT COUNCIL MEETINGS
6.4.1 INTENT
To honor advisory body deliberations, views and positions on issues before Council; enhance communications between Council and their advisory bodies; and allow participation and input by advisory body members
6.4.2 COUNCIL AGENDA REPORTS
6.4.2.1 Recommendation Differences. For those rare occasions when the City Manager recommendation differs from an advisory body recommendation, the difference should be clearly noted in a separate paragraph following the City Manager recommendation.
The Discussion section contains information relating to the advisory body recommendation.
6.4.2.2 The minutes of the advisory body item are included as an attachment to the Agenda Report.
6.4.3 COUNCIL MEETINGS
6.4.3.1 On appeals or items brought by or through the advisory body, the Chair (or Vice Chair, when the Chair is not available) may be seated next to the department head. The department head makes the introduction; then the Chair of the advisory body makes a brief presentation, representing the position of the advisory body.
6.4.3.2 Other members of the advisory body are free to appear and give testimony before Council using the public microphone, after identifying whether they are speaking as a representative of the advisory body or as a private citizen.
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6.4.4 RECOMMENDATIONS
Recommendations or Reports to Council must be in written form.
6.5 ROLE OF CITY STAFF PERSONS
Staff support and assistance may be provided or made available, but advisory bodies do not have supervisory authority over City employees. While they may work closely with advisory bodies, staff members remain responsible to their immediate supervisors and ultimately to the City Manager and Council. The members are responsible for the functions of the advisory body and the chairperson is responsible for committee compliance with the policies outlined in the Advisory Body Handbook.
Staff support includes preparation of a summary agenda after approval by the Chairperson, and preparation of agenda reports providing a brief background of the issue, a list of alternatives, recommendations, and appropriate backup material, if necessary. Members of advisory bodies are volunteers and should be treated with respect and courtesy. Advisory body members should have sufficient information to reach decisions based upon a clear explanation of the issues. The assigned staff person or designee serves as Secretary, taking minutes as needed.
It is important that advisory bodies wishing to communicate recommendations to the City Council do so through adopted or approved Council agenda procedures.
Staff members shall assist the advising body Chair to insure appropriate legal review or City and state legislation is in compliance.
6.6 APPOINTMENT PROCEDURES
The following procedures shall be the policy of the City Council in regard to appointment of volunteer citizens to the various advisory bodies of the City.
6.6.1 PURPOSE
The establishment of these procedures shall insure that well-qualified, responsible and willing citizens are given the opportunity to serve the City and participate in the governing of their community. These procedures will apply to all appointments and reappointments to standing advisory bodies.
6.7 PROCESS
6.7.1 QUALIFICATIONS
6.7.1.1 With the following exceptions, only residents who are registered voters within the City limits are eligible to apply to an advisory body. Exceptions include the Tourism Business Improvement District (TBID) Board, one representative from the TBID Board serving on the Promotional Coordinating Committee, the Cal Poly employee and student representatives serving on the MTC, and
Council Policies & Procedures Manual (rev. 04/02/2024) Page 45 members of the Housing Authority. In addition, part- or full-time City officials and management employees are not eligible to apply.
6.7.1.2 The applicant must be at least 18 years of age at the time of appointment.
6.7.1.3 No member of the Council may be appointed to any office created by or the compensation of which is increased by the Council, while a member thereof, until one year after the expiration of the term for which elected. (Charter §409)
6.7.2 TERMS
6.7.2.1 The term of office for each appointee to an advisory body shall be a maximum of four years. The length of a term is dictated by the principle that no more than two terms on any committee shall expire each year.
6.7.2.2 No appointee shall serve on the same advisory body for more than two consecutive, full terms, but may subsequently serve on another advisory body unless noted otherwise. Exceptions include the Housing Authority, Jack House Committee and Construction Board of Appeals, which do not have term limits.
6.7.2.3 After a one-year interval, persons may reapply to serve on the same advisory body.
6.7.2.4 Mid-term appointment to a vacant seat shall not preclude the appointee from serving two additional consecutive full terms, provided that the initial, partial term served is less than half of a full term.
6.7.2.5 Other Advisory Bodies. As a general policy, an applicant shall not be appointed to serve on more than one advisory body, except that a member may also serve on one technical or specialpurpose committee at the same time he or she is serving on a non-technical or non-special-purpose committee. Except as noted, a member will be expected to resign from one body upon being appointed to another.
6.7.3 PROCESS
6.7.3.1 Applications are obtained and filed with the City Clerk’s Office.
6.7.3.2 In December of each year, the City Clerk shall advise the City Council of the terms that are due to expire on each advisory body.
The City Clerk shall also notify each advisory member whose term is due to expire. Each of these members shall be given the
Council Policies & Procedures Manual (rev. 04/02/2024) Page 46 opportunity to apply for reappointment unless that member has already served two consecutive, full terms on that advisory body.
6.7.3.3 The City Clerk shall post/publish advertisements and take other recruitment steps in accordance with statutory requirements and as appropriate, inviting citizens to apply for vacant positions and provide instructions regarding the application process.
6.7.3.4 Applicants will be encouraged to read the Advisory Body Handbook and attend at least one meeting prior to the interview with the Council Liaison Subcommittee.
6.7.3.5 The subcommittee shall interview qualified applicants, inviting the advisory body Chair to attend (if the Chair is being considered for reappointment, the Council Liaison Subcommittee shall
designate another representative). The City Clerk will provide the subcommittee with the Advisory Body Interview Template to assist with the interview process.
6.7.3.6 The Council Liaison Subcommittee shall submit
recommendations for appointment to the entire Council. If a unanimous decision for recommendation to the full Council cannot be reached, the Council shall take a separate motion for each candidate proposed by each member of the Council Liaison Subcommittee.
6.7.3.7 Applicants not appointed will be so advised and their applications held for consideration in the event of a future vacancy for no less than one year. Should a vacancy occur on the committee to which they applied, the City Clerk’s office will contact qualified applicants to determine whether they want to be reconsidered for the vacancy. However, advertisement of the vacancy must be made in accordance with statutory requirements and all
applicants will be considered for the vacancy.
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CHAPTER SEVEN
COUNCIL CONFIDENTIALITY POLICY
7.1 PURPOSE AND PROHIBITION AGAINST DISCLOSURE
7.1.1 PURPOSE AND INTENT
In order to keep the City Council fully informed about pertinent legal issues that may impact the City Council's decision-making, the City Attorney and other attorneys retained to represent the City issue confidential legal opinions and/or conducts closed sessions when authorized to do so by the Brown Act. Unauthorized disclosures of confidential information obtained from such confidential communications harm the City by compromising the City’s negotiating positions, diminishing the willingness of City staff and other Council Members to communicate fully and frankly with the City Attorney, and exposing the City to unwarranted litigation risks and significant damages awards against the City. It is the intent of the Council that the City’s confidential information shall be maintained inviolate and that unauthorized disclosures of such information be deterred and/or censured.
7.1.2 PROHIBITION AGAINST DISCLOSURE
No person in receipt of Confidential Information, as defined herein, shall disclose or cause to be disclosed all or part of any confidential information to any unauthorized person.
7.2 PUBLIC CENSURE FOR UNAUTHORIZED DISCLOSURE
Any Council Member disclosing or causing to be disclosed confidential information to any unauthorized person may be subject to public censure by the City Council.
Any censure proceeding shall be conducted in accordance with a process established by the City Council and shall, at a minimum, ensure that no public censure will occur unless the accused Council Member has been provided with notice of the accusation of unauthorized disclosure, the facts supporting such accusation, and an opportunity to be heard regarding the allegations.
7.3 DEFINITIONS
For purposes of this policy, the following words and phrases shall be defined as follows:
7.3.1 CAUSE TO BE DISCLOSED
Failure to exercise due care in maintaining the confidentiality of the Confidential Information, whether verbal or written.
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7.3.2 CONFIDENTIAL INFORMATION
7.3.2.1 Any information within the scope of a duly authorized closed session, whether provided orally or in writing, by any attorney, consultant, staff member or Council Member acting within the scope of the closed session (See Gov't. Code Section 54963); or
7.3.2.2 Any oral or written communications by or from the City Attorney, Assistant City Attorney, or any retained counsel representing the City’s legal interests containing the attorney's legal opinions, advice, thoughts, mental impressions or conclusions that are given on behalf of the City.
7.3.2.3 Confidential Information does not include information that is:
required by law to be reported out of closed session; authorized to be disclosed by a majority vote of the City Council; or otherwise authorized to be disclosed under the law.
7.3.3 UNAUTHORIZED PERSON
7.3.3.1 With respect to confidential information communicated during a closed session, any person, other than a Council Member, not in attendance at the closed session; or
7.3.3.2 Any person to whom the oral or written confidential information is not directed or addressed; or
7.3.3.3 Any person who has a disqualifying conflict of interest in the subject matter of the confidential information.
7.3.3.4 Unauthorized person does not include Charter Officers and department heads and the staff of Charter Officers and
department heads, when such persons have a need to know the confidential information in order to discharge the duties of their positions for the benefit of the City.
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CHAPTER EIGHT
COUNCIL CENSURE POLICY
8.1 PURPOSE OF CENSURE POLICY
In order to deter violations of law and serious violations of adopted City policies, the City Council may take formal action against its members for such misconduct in the form of censure.
8.2 DEFINITIONS
8.2.1 CENSURE
Censure is a formal Resolution of City Council reprimanding one of its own members for specified conduct, generally a violation of law or of City policy where the violation of policy is considered to be a serious offense. Censure should not follow an occasional error in judgment, which occurs in good faith and is unintentional. Censure carries no fine or suspension of the rights of the member as an elected official, but a censure is a punitive action that serves as a punishment for wrongdoing.
8.3 CENSURE PROCEDURE
8.3.1 Any member of the City Council may submit, in writing to the Chair of the Personnel Board, a complaint and request for a censure hearing concerning an alleged violation of law or serious violation of City policies by another member.
8.3.2 Prior to any formal action by the City Council to censure a member, the person against whom censure is sought is entitled to due process of law, which requires notice and the opportunity to be heard and to refute the evidence against him or her, by means of a censure hearing.
8.3.3 The complaint shall contain specific factual allegations and any supporting evidence of specific conduct alleged to violate existing law or adopted City policies. The Personnel Board within 30 business days shall review the record and either (1) issue an advisory opinion to the Council; or (2) conduct further investigation and/or a hearing on the matter.
8.3.4 A copy of the complaint and request for censure shall be provided to the accused Council Member as soon as possible following receipt, but in no event less than 72-hours prior to the meeting of the Personnel Board at which the complaint and request for a censure hearing will be considered.
8.3.5 The Personnel Board shall consider whether additional investigation is necessary and, if so, shall appoint an ad hoc committee to complete the necessary investigation and make a written report of the investigation to the full Board.
Council Policies & Procedures Manual (rev. 04/02/2024) Page 50
8.3.6 The ad hoc committee will determine the process by which statements are taken. Witnesses may choose to provide a signed declaration under penalty of perjury attesting to his or her knowledge of the facts surrounding the allegations. If a witness is unwilling to submit such a declaration, the Council may issue a subpoena to compel the witness testimony before the Personnel Board, consistent with its subpoena power granted under the City Charter.
8.3.7 The Personnel Board and ad hoc committee, if necessary, shall be staffed by the Assistant City Attorney and such other administrative support staff as may be necessary to assist in its investigation and report to the Council.
8.3.8 Upon completion of its review of the complaint and any additional investigation the committee shall determine if, considering all the facts and evidence, there is sufficient evidence to believe or not believe that the alleged violation of law or serious violation of adopted City policy occurred.
The Personnel Board shall make a written report to the Council stating the specific law or policy alleged to have been violated, and summarizing the complaint, evidence, and the results of any additional investigation. The Board shall also make a recommendation to the Council that the complaint is supported by sufficient evidence of a violation of law or serious violation of adopted City policy to warrant a censure hearing, or, alternatively, that the complaint is not supported by sufficient evidence of a violation of law or serious violation of adopted City policy to warrant a Council censure hearing.
8.3.9 If the Personnel Board determines that the allegations are supported by sufficient evidence and a censure hearing is warranted, the City Clerk shall be notified and shall set the matter for a public censure hearing before the City Council; if the Personnel Board concludes that the allegations are not supported by sufficient evidence and a censure hearing is not warranted, the Board’s recommendation will be forwarded to the City Council and no further action taken, unless the City Council directs, by a majority consensus of the City Council during Council Communications, the matter to be placed on its agenda for further consideration. In either case, a copy of the final report shall be provided to the accused member at the same time it is provided to the City Council.
8.3.10 If a public hearing is set before the City Council, it shall be at least 14 days following the Personnel Board’s recommendation in order to give the member subject to censure adequate time to review the allegations and evidence against him or her and prepare a defense, but no longer than 30 days from the date of the Personnel Board’s recommendation.
Council Policies & Procedures Manual (rev. 04/02/2024) Page 51
8.3.11 At the hearing, the subject member shall be given an opportunity to make an opening statement, closing statement, and to question his or her accusers. The hearing shall not be a formal adversarial hearing and the Rules of Evidence shall not apply to the proceeding. The subject member may choose to be represented and to designate his or her representative to speak on his or her behalf.
8.3.12 A City Council decision to censure requires the adoption of a Resolution making findings, based on substantial evidence that the member has engaged in conduct that constitutes a violation of law or a serious violation of an adopted City policy. The Resolution must be affirmed by at least three affirmative votes of the Council. The accused Council Member shall not participate in the City Council’s deliberations after the public hearing is closed or in any vote by the City Council on the proposed censure.
R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING ITS COUNCIL POLICIES AND
PROCEDURES MANUAL
WHEREAS, the City Council has adopted a certain manual entitled “Council Policies and Procedures” to define and ensure the proper conduct of the City’s business by the City Council and in compliance with State law and the City’s Charter and Ordinances; and
WHEREAS, the Council periodically revises its Council Policies and Procedures to ensure clarity, consistency with State law, and conformity with the City Charter and Ordinances.
WHEREAS, Council Members have an annual professional development budget to use towards improving their understanding of and proficiency in municipal affairs.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Section 2.5 - General Procedures and Limitations – of the Council Policies and Procedures Manual is hereby amended, to add the following section that read as follows:
2.5.6 Council Volunteers – Council members may use interns/volunteers to help with various tasks related to council activities, including but not limited to research, constituent outreach, and administrative support. Interns/volunteers should not be used for any campaign-related activities. Council members have the discretion to show appreciation to their volunteers through letters of recommendation, gift cards, or through other means of supporting their professional development. Any City funds spent on intern/volunteer support will be funded through the council member’s allocated professional development budget.
SECTION 2. Any provision of the Council Members’ annual professional development budget towards Council Member Interns serves a public purpose in that the interns are helpful in providing necessary research, constituent outreach, and administrative support to Council Members in their official capacity.
SECTION 3. A copy of the Council Policies and Procedures Manual shall be maintained on file in the Office of the City Clerk, shall be distributed to all Council members and department heads and shall be available to the public online and during reasonable business hours.
Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 4. Resolution Number 11341 (2022 Series) is hereby amended and superseded to the extent inconsistent herewith.
Upon motion of _______________, seconded by _____________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington,
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick,
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington,
City Clerk
Item 6e
Department: Police
Cost Center: 8001
For Agenda of: 9/17/2024
Placement: Consent
Estimated Time: N/A
FROM: Rick Scott, Police Chief
Prepared By: Brian Amoroso, Deputy Chief
SUBJECT: SECOND READING OF ORDINANCE NO. 1738 (2024 SERIES) AMENDING MUNICIPAL CODE TITLE 6 - ANIMALS
RECOMMENDATION
Adopt Ordinance No. 1738 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 6 (Animals) of the Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals.”
POLICY CONTEXT
The City of San Luis Obispo contracts with the County of San Luis Obispo to provide animal control services to the city. The animal services contract is coordinated and funded as an expense item in the budget of the Police Department. The County has recently updated their animal control ordinance, Title 9 of the County Code, and has asked each contract City to adopt their Code by reference into the Municipal Code to streamline and simplify the enforcement of animal control throughout the County.
By adopting Title 9 of the County Code (by reference), many current San Luis Obispo municipal codes in Title 6 (Animals) will be duplicates and will be removed. The City will retain all current animal control Municipal Codes that are not represented in Title 9, resulting in no significant changes to the current animal control rules and regulations of the City, but this approach will provide future efficiencies should the County make further updates to Title 9.
DISCUSSION
Background
On August 20, 2024, City Council introduced Ordinance No. 1738 (2024 Series) (Attachment A) amending Title 6 of the City of San Luis Obispo Municipal Code, to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals.
Item 6e
In addition to the following changes at Council also requested current San Luis Obispo Municipal Code sections 6.28.070 and 6.28.080 be amended to read as follows:
6.28.070 Bees prohibited-Exception
No person, firm or corporation shall keep bees within the corporate limits; provided, that nothing herein shall be deemed to prohibit the keeping of bees for the purpose of study and observation in a hive or box, which is situated within a school districtowned property designated by the district for such educational purposes; or for agricultural purposes, located within a Conservation/Open Space or Agriculture zoning district.
6.28.080 Breeding prohibited in city.
No owner of, and no person in possession or in charge of, any livestock, poultry, or any domestic or domesticated animals other than household pets, shall breed or permit the breeding of such livestock, poultry, or domestic or domesticated animal within the city; provided, that nothing herein shall be deemed to prohibit breeding for the purpose of study and observation in a location situated within a school district-owned property designated by the district for such educational purposes; or for agricultural purposes, located within a Conservation/Open Space or Agriculture zoning district.
Title 9 of the San Luis Obispo County Code establishes rules and regulations related to the care, management and keeping of animals within the County. Additionally, it establishes the County Division of Animal Services’ role, responsibility, and authority in the enforcement of those codes. The last substantial revisions to the code occurred in 1998. Since that time, standards and expectations with regard to animal care and control have evolved, leaving some of the code’s provisions outdated and inconsistent with currently recognized best practices.
Beyond addressing omissions and additions, the County revisions clarified existing language, resolved conflicting provisions, eliminated redundancies, and provides continuity between Title 9 and other sections of the County Code.
The City of San Luis Obispo Municipal Code contains the rules and regulations related to animal regulations in the City. Animal control Officers from the County are tasked with enforcing the regulations of each contract City, creating a confusing mix of numerous municipal codes, combined with the County Code, that required research and analysis, depending on which jurisdiction they were currently responding to for a call for service.
Having each contract city adopt Title 9 of the County Code will provide a standardized set of regulations that can be more easily enforced, create continuity throughout the county, while still allowing each City to keep additional regulations that are not contained in Title
9. The City of Grover Beach was the first to adopt Title 9 of the County Code by reference on 7/22/2024. If approved, San Luis Obispo will be the second City in the county to adopt the County Code.
Item 6e
Should council adopt the county code by reference, the following SLOMC chapters and sections will be rescinded in their entirety:
6.04, 6.08, 6.12, 6.16, 6.24, 6.20.020, 6.20.030, 6.20.040, 6.20.050, 6.20.060,
6.20.070, 6.28.020, 6.28.030, 6.28.040 and 6.28.050.
The adoption of the County Code Title 9 by reference will result in the following minor changes from the current municipal code law:
6.12.130 – The county no longer impounds healthy stray cats, and that practice would extend to the city. (Potential of lowering future animal control contract services fees)
6.16.070 – Licensing of dogs would be valid for a term of up to 3 years. (Current SLOMC dog licensing is only valid for one year)
6.16.080 – Licensing fees will be set by County and updated annually to properly reflect costs.
6.20.020 – Complaints arising from noisy animals can now escalate to a complaint with the District Attorney’s Office.
In order to keep the current animal regulations status quo in the city of San Luis Obispo, the following SLOMC sections will be retained as they are not prohibited actions identified in the County Code:
6.20.010 – Keeping Noisy Animals – Prohibited
6.28.010 – Animal Definitions
6.28.060 – Keeping of Animals – limitations and regulations on keeping of poultry, rabbits, swine, hogs, pigs, and other animals.
6.28.070 – Prohibition on beekeeping (including minor language update at council direction)
6.28.080 – Prohibition on breeding in the city (including minor language update at council direction)
There are some laws in Title 9 of the county code that are not currently contained in Title 6 of the City Municipal Code. These will constitute new animal control restrictions in the city. Most are administrative in nature, but some of the noteworthy additions include:
9.02.002 – Prohibits the unauthorized feeding of animals by individuals on property other than their own.
9.02.003 – Requires animal owners to remove animal wastes deposited off the owner’s property.
9.02.009 – Prohibits the keeping of dangerous and wild animals including large and venomous snakes, wolf hybrid dogs and others.
9.02.010 – Requires motorists striking domestic animals to stop and render aid or make official notification.
9.03.001 – Requires microchipping of adult dogs and cats. 9.03.004 – Prohibits cat owners from allowing unaltered cats to roam at large.
Allows finders of unaltered cats roaming at large to have the cat altered at their expense.
9.08.002 – Establishes a requirement for owners of cats allowed to roam outdoors to have those cats vaccinated against rabies.
Item 6e
Previous Council or Advisory Body Action
On August 20, 2024, the City Council introduced Ordinance No. 1738 (2024 Series), amending the Animal Control Ordinance to incorporate San Luis Obispo County Code Title 9, by reference.
Public Engagement
No prior formal public engagement was conducted on this item as there will be no significant substantive changes to the current rules and regulations related to animals, but rather only a change to where the rules and regulations are codified. In accordance with the City’s public noticing requirements for proposing amendments to the Municipal Code, a legal ad was published in The New Times on August 8, 2024, 10 days prior to the introduction of the Ordinance and an additional legal ad will be published on September 12, 2024, 5 days prior to the second reading on September 17, 2024. Public engagement will occur as part of the standard City Council meeting agenda workflow, including the opportunity to comment in writing and in person at the City Council meeting.
CONCURRENCE
The City Attorney’s Office reviewed the San Luis Obispo County Code and the current Municipal Code and drafted the ordinance.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $339,026 $ $ $339,026
State
Federal
Fees
Other:
Total $339,026 $0 $0 $339,026
Item 6e
There is no projected fiscal impact directly related to adopting the County of San Luis Obispo Title 9 by reference. The City costs associated with Animal Services are based on our calls for service and shelter usage, based on a percentage of total costs in relation to the usage and calls for service of the other cities and the County. The current contract cost for animal services for the City of San Luis Obispo is $339,026.
ALTERNATIVE
Do not amend the ordinance. Staff does not recommend this alternative as the city is contractually obligated to update the municipal code, either by way of reference or direct incorporation, animal regulations that do not substantially differ from the county code.
ATTACHMENT
A - Ordinance No. 1738 Animal Services Ordinance Amendment
O 1738
ORDINANCE NO. 1738 (2024 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 6 (ANIMALS) OF THE CITY
MUNICIPAL CODE TO ADOPT AND INCORPORATE BY REFERENCE
SAN LUIS OBISPO COUNTY CODE TITLE 9 (ANIMALS) AND TO
RETAIN CERTAIN CITY REQUIREMENTS REGARDING ANIMALS
WHEREAS, the City contracts with the San Luis Obispo County (“County”) Division of Animal Services for the provision of animal control services; and WHEREAS, to enable the County to provide animal control services within the City, the City will enact municipal code provisions, which are similar to and consistent with the County’s code regarding the care, keeping, and management of animals; and WHEREAS, the City Council desires to support the safe and responsible care, keeping and management of animals within the City; and
WHEREAS, the County has requested that each City that contracts with the County for animal control services adopt, by reference, the County’s Code pertaining to Animals (Title 9) so the County can administer animal control services consistently within all contracting jurisdictions; and
WHEREAS, to accomplish these purposes, City Municipal Code Title 6 (Animals) would be amended to incorporate by reference the County Code pertaining to Animals (Title 9); and
WHEREAS, current City Municipal Code chapters 6.04, 6.08, 6.12, 6.16, and 6.24, and current City Municipal Code sections 6.20.020, 6.20.030, 6.20.040, 6.20.050,
6.20.060, 6.20.070, 6.28.020, 6.28.030, 6.28.040, and 6.28.050, would be rescinded in their entirety; and
WHEREAS, current City Municipal Code sections 6.20.010 and 6.28.070 would be retained in their entirety; and
WHEREAS, current City Municipal Code sections 6.28.010, 6.28.060, and
6.28.080 would be modified.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Chapter 6.01 of the San Luis Obispo Municipal Code (Adoption of San Luis Obispo County Animal Control Code, Title 9) is hereby added, with sections to read as follows:
Ordinance No. 1738 (2024 Series) Page 2
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6.01.010 Adoption and incorporation of San Luis Obispo County Animal Control Code (Title 9).
The provisions of San Luis Obispo County Animal Control Code, Title 9, as amended from time to time, are adopted by reference and incorporated in their entirety as provisions of the San Luis Obispo Municipal Code. To the extent any provision or provisions of the San Luis Obispo County Animal Control Code, Title 9, as adopted, conflict with any other provision or provisions of the San Luis Obispo City Municipal Code, the other provision or provisions of the San Luis Obispo City Municipal Code shall take precedence.
6.01.020 Enforcement of Animal Control provisions within City.
The provisions of this Title are enforceable within the jurisdictional boundaries of the City of San Luis Obispo by the County of San Luis Obispo Animal Control Officer, or designee, pursuant to and in accordance with the terms of a contract for animal care and control services entered into between the City and the County, and by City Code Enforcement and the City Police Department.
SECTION 2. Current San Luis Obispo Municipal Code chapters 6.04, 6.08, 6.12,
6.16, and 6.24, and current City Municipal Code sections 6.20.020, 6.20.030, 6.20.040,
6.20.050, 6.20.060, 6.20.070, 6.28.020, 6.28.030, 6.28.040, and 6.28.050 are hereby rescinded in their entirety.
SECTION 3. Current San Luis Obispo Municipal Code sections 6.20.010 and
6.28.070 are hereby retained in their entirety.
SECTION 4. Current San Luis Obispo Municipal Code section 6.28.010 is hereby amended to read as follows:
6.28.010 Definitions.
For the purpose of this chapter, the following words shall have the following meanings:
A. “Domestic or domesticated animal” means and includes any animal domesticated to live in close association with or for the benefit of humans in a tame condition.
B. “Household pets” means and includes any animal normally kept for purposes of companionship or amusement, including, but not limited to cats, dogs, canaries, parrots, fish, rodents, rabbits, turtles, lizards and snakes.
C. “Livestock” means and includes horses, ponies, mules, jacks, jennies, cows, bulls, calves, heifers, sheep, goats, swine, and rabbits.
Ordinance No. 1738 (2024 Series) Page 3
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D. “Poultry” means and includes pigeons, ducks, geese, turkeys, chickens and all other domestic or domesticated fowl other than household pets.
SECTION 5. Current San Luis Obispo Municipal Code section 6.28.060 is hereby amended to read as follows:
6.28.060 Keeping of animals – Limitations and regulations.
A. Poultry and Rabbits.
1. No person shall keep upon any premises in the city any poultry or rabbits:
a. Within fifty feet of any dwelling; or
b. If more than five in all of any such rabbits or poultry are kept, within seventy-five feet of any dwelling.
2. No person shall keep upon any premises in the city more than twenty-five such rabbits or poultry, except by special permit of the council first had and obtained, or keep any rooster of crowing age within one hundred feet of any dwelling. This provision limiting the maximum number of rabbits or poultry shall not be retroactive or effective as to rabbit or poultry ranches or processing plants actually in operation on the effective date of the ordinance codified herein.
3. The owners or persons in charge of such rabbits or poultry kept in the city shall provide suitable houses or cotes with board or cement floors in each and every house and cote, and the houses, cotes or pens shall at all times be kept clean.
B. Swine, Hogs and Pigs. No person shall keep upon any premises in the city any swine, hog or pig, whatsoever.
C. Cats. No person shall keep upon any premises in the city more than five (5) cats.
D. Other Animals.
1. No person shall keep upon any premises in the city any other animals as defined in Section 6.28.010:
a. On any lot containing less than twenty thousand square feet; or
Ordinance No. 1738 (2024 Series) Page 4
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b. In any corral, barn or other enclosure which would permit the animals within seventy-five feet of any dwelling;
c. If staked within one hundred feet of any dwelling.
2. No person shall tie, stake or pasture, or permit the tying, staking or pasturing, of any animal upon any private property in the city without consent of the owner or occupant of such property in such a way as to permit any such animal to trespass upon any street or public place or upon any such private property. No person shall permit any such animal to be or remain during the nighttime secured by a stake or secured in any manner other than by enclosing such animal in a pen, corral or barn sufficient and adequate to restrain such animal. All such animals shall be provided with adequate food, water and shelter or protection from the weather.
3. All fences or enclosures used for the purposes set forth in this subsection must be of such material and maintained in such manner as humane for the safety and protection of such animals.
The provisions of this section shall not be deemed to apply to any public educational institution. (Prior code § 4120.5).
SECTION 6. Current San Luis Obispo Municipal Code sections 6.28.070 and
6.28.080 are hereby amended to read as follows:
6.28.070 Bees prohibited - Exception
No person, firm or corporation shall keep bees within the corporate limits; provided, that nothing herein shall be deemed to prohibit the keeping of bees for the purpose of study and observation in a hive or box, which is situated within a school districtowned property designated by the district for such educational purposes; or for agricultural purposes, located within a Conservation/Open Space or Agriculture zoning district.
6.28.080 Breeding prohibited in city.
No owner of, and no person in possession or in charge of, any livestock, poultry, or any domestic or domesticated animals other than household pets, shall breed or permit the breeding of such livestock, poultry, or domestic or domesticated animal within the city; provided, that nothing herein shall be deemed to prohibit breeding for the purpose of study and observation in a location situated within a school district-owned property designated by the district for such educational
Ordinance No. 1738 (2024 Series) Page 5
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purposes; or for agricultural purposes, located within a Conservation/Open Space or Agriculture zoning district.
SECTION 7. All prior ordinances relating to animal control regulations are hereby rescinded and superseded to the extent inconsistent herewith.
SECTION 8. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 20th day of August 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ______________, 2024, on the following vote:
AYES:
NOES:
ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 17, 2024
TO: Mayor and Council
FROM: Todd Tuggle, Fire Chief
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 7A. FIRE DEPARTMENT STRATEGIC PLAN 2024-2029 STAFF
RECEIVED THE FOLLOWING QUESTIONS, REGARDING THE FIRE
DEPARTMENT STRATEGIC PLAN FOR FY 2024-29. THE QUESTIONS ARE BELOW WITH STAFF’S RESPONSE SHOWN IN ITALICS:
1) What is a Quint?
a. A quint is a combination pumper, that combines the functions of a fire engine and a ladder truck. The “quint” refers to the five main tools it has for firefighting.
i. Pump – means the apparatus has a full-sized pump capable of providing the needed fire flow for the types of fire hazards in our jurisdiction and is capable of pumping its own aerial device. ii. Water Tank – the apparatus contains its own tank water, typically 300-500 gallons, to pump for a limited duration.
iii. Hose – The apparatus has a full complement of hoses for all types of structural firefighting operations.
iv. Aerial Device – A quint also possesses a ladder with a plumbed waterway of at least 75’ in height to provide rescue access for firefighters and an elevated waterway for larger fires. v. Ground Ladders – The apparatus possesses a complement of ladders to reach multistory buildings, typically lower than 35’ above ground level.
2) Which resource is Truck 1 and what is the reason for a reduction in it use? a. Truck 1 is a 100’ Tractor-tiller aerial apparatus housed out of Fire Station 1 at the corner of Santa Barbara and Broad. Truck 1 was placed into service in 2010 with the expectation of running approximately 500-800 responses a year over the course of its 20-year life span. During its lifespan, the call volume has increased steadily, such that in calendar year 2023, Truck 1 responded to over 2000 calls for service. This higher than planned utilization has caused unplanned wear and tear to Truck 1, warranting a major refurbishment of the apparatus in order for it to reach its 20-year life span.
In order to reduce the use of Truck 1 several ideas have circulated, the quickest of which to be implemented would be staffing the Medic Rescue, a 2-person EMS unit, to take on lower acuity calls for service in place of Truck 1.
7a. Fire Department Strategic Plan 2024-2029 Page 2
3) What is Tablet Command?
a. Tablet Command is an accountability software application that works in conjunction with our Computer Aided Dispatch system through the SLO PD Emergency Communications Center. Tablet Command was initially a countywide effort to share location and incident information across all of the fire agencies. Because of some dynamics across the agencies in the county, the regional effort collapsed, but multiple local efforts have progressed forward. It is the department’s intent to leverage the capabilities of the PulsePoint system architecture towards the streamlined accountability and CAD interface that Tablet Command represents. 4) What is the Public Safety Academy?
a. The Public Safety Academy was titled Fire Ops 101 when it was delivered in August of 2023. This effort was resurrected from an effort started in 2018 to communicate the nature of the firefighter job to internal and external stakeholders. The next planned Fire Ops 101 is scheduled for August of 2025.
5) What is the NFPA?
a. NFPA is the National Fire Protections Association. It is a non-profit organization that coordinates and advocates for professional standards across the fire service. NFPA is referenced 4 times in the Strategic Plan, calling out three different Standards documents. NFPA has developed over 300 standards and codes to support industry safety needs. Specifically, the Strategic Plan references 1402, 1582 and 1500.
i. 1402 – This is the training standard for professional structural firefighting and the needed props to conduct safe and effective training. ii. 1582 – This standard provides the parameters for conducting annual physicals for firefighters that include imperative checks such as cardiac function, cancer screenings and functional movement assessment. iii. 1500 – This standard specifies the minimum standards for a professional safety and health program responding to fire, emergency medical, hazardous materials, special operations and other emergency incidents. 6) What is the Counseling Team International?
a. TCTI, The Counseling Team International, is a consortium of mental health professionals that specifically provides mental health services to First Responders. TCTI has been secured as part of a larger contract for services for both Police and Fire. This specific Goal 3c is largely complete and part of a continued refinement of the effort to improve mental health of our workforce.
7a. Fire Department Strategic Plan 2024-2029 Page 3
7) How was Community Feedback incorporated into the plan? a. Public engagement occurred through both social media and townhall style interactions. Questions included desired core services, public education and training, interaction with SLO FD and general satisfaction or comments.
The responses from the public were integrated into the Strategic Plan in several areas. For example, Goal 4c speaks to providing whole community Disaster Preparedness training. Goal 1a seeks to answer the community request to reduce the use of Truck 1 on non-emergent incidents. Leveraging the Medic Rescue/ EMS Unit is intended to support the larger goal of reduced response times, but also the specific request coming from the community. External and Internal stakeholders had similar requests of the Department in the Strategic Plan development.
8) What increases in funding/ staffing, if any, do you staff anticipate to implement the tasks and objectives?
a. The potential staff and funding increases remain to be seen. Thus far, there has not been a significant increase in funding requests. Some implementations have been through efficiencies observed in other services.
For example, Goal 6a calls for implementation of asset management software. The department was able to realize savings on a subscription software service through collaboration with SLO County Emergency Medical Services Agency in order to offset the cost of an asset management program for a wide range of assets across the Department. Other goals may necessitate investments such as implementation of a comprehensive Fuels Management program. Goal 5c involves not only the Fire Department Strategic Plan, but also the Climate Action Safety Element of the General Plan and will likely involve some initial investment on the part of the City.
Staff is working diligently to offset as much of the cost as possible through strategic grant applications such as a Coastal Conservancy Planning Grant.
Much of Strategic Initiative 3, all of Strategic Initiative 4 and Goal 5a are rolled up into existing cost centers and do not foretell additional expenditures.
Item 7a
Department: Fire
Cost Center: 8501
For Agenda of: 9/17/2024
Placement: Business
Estimated Time: 45 minutes
FROM: Todd Tuggle, Fire Chief
Prepared By: Nicole Vert, Business Analyst
SUBJECT: FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
RECOMMENDATION
Receive and file the Fire Department’s 2024-2029 Strategic Plan.
POLICY CONTEXT
The Fire Department’s 2024-2029 Strategic Plan (Attachment A) aligns with the department's mission to enhance and protect the lives, property and environment of the community and its visitors. The previous strategic plan for years 2018-2023 recommends updating and creating a new plan for subsequent years.
DISCUSSION
Background
In 2018 the Fire Department developed a five-year strategic plan guiding the department through 2023. The dynamic plan established priorities, guided decision making, and identified future work efforts surrounding the department’s mission. The Strategic Plan 2024-2029 is the successive strategy for the department to continue growth and development beyond day-to-day functions.
The updated plan was created using input from both internal and external stakeholders.
Internal stakeholders included all members of the Fire Department, which includes suppression personnel, emergency management, fire prevention, vehicle technicians, chief officers and administration. External stakeholders include all city department heads, deputies, city management and elected officials plus the public at large. Both groups were given opportunities to provide input to identify their expectations and desires of the Fire Department. Internally the plan focuses on enhancing employee development programs, streamlining operational processes, and fostering a culture of collaboration and continuous improvement. Externally, community expectations and priorities are established and aligned with Major City Goals as well as any concerns with the department. Overall respondents were satisfied with the service the Fire Department provides and current levels are sufficient. Priorities expressed include maintaining current levels, provide more community outreach and education, increase wildfire preparedness, expand outreach to the unhoused community, and increase positive interactions and
Item 7a
visibility in the community. Concerns expressed were if services were improved or enhanced, community members do not want to pay more for the increases and new growth should pay for the necessary increases in services to not impact current service levels.
Strategic Initiatives
Following collaboration with all groups six initiatives were developed to provide direction for the department. These six strategic initiatives constitute the overarching themes of the objectives for the department and provide the foundation for the development of goals and objectives within each initiative and are listed below. The definition and relationship between the strategic directives and goals and objectives are defined in the plan.
Established workgroups within the department will meet and manage progress towards accomplishing these goals and objectives and continuously report back updates to progress to department leadership and adjustments needed based on the City and Community environment.
1. Community Focused Service – Maintain or improve exceptional Community Focused Public service delivery.
a. Improve effective deployment of response time
b. Improve the delivery of EMS in the City of SLO
c. Evaluate and improve MCU deployment and training
d. Evaluate the CIP for Department infrastructure, apparatus, equipment, and appropriate funding for expected needs.
2. Professional Development and Training – Enhance professional development, organizational diversity and organizational safety through training and education. a. Enhance Department training, succession planning, and professional development.
b. Implement a professional career development program. c. Supervisor Leadership Training and Mentorship
d. Recruit, develop, and retain a professional and diverse workforce. e. Improve training facility.
3. Health and Wellness- Enhance a healthy, safe and productive work environment. a. Enhance opportunities to improve overall health, wellness, and functional fitness
b. Maintain and enhance the mental health and wellness PEER support program
4. Emergency Preparedness- Maintain and improve Emergency Management and Preparedness for all person made and natural large-scale disasters to meet current and future needs.
a. Maintain and improve all disaster preparedness program plans b. Provide initial and ongoing employee training and enhancement of skills c. Provide whole community disaster preparedness training d. Support the development of a City EOC at the Public Safety Center and complete comprehensive functional upgrades.
Item 7a
5. Community Risk Reduction – Maintain or improve Fire Prevention Division Risk Reduction in San Luis Obispo.
a. Increase target outreach to high-risk populations
b. Target Hazare Pre-plans
c. Maintain and update the department fuel reduction and defensible space program
d. Reduce illegal fires from the unhoused
e. Adress property insurance issues for residents within the CalFire high severity map areas
f. Implement shift from Fire Prevention Bureau to Community Risk Reduction Unit
6. Technology and Data- Maintain and improve Fire Department Technology and Information Systems that meet the current and future needs of the department. a. Identify and evaluate current technology resources to inform decisions on future improvements.
Previous Council or Advisory Body Action
On August 21, 2018, the City Council received and filed the Fire Department's 2018-2023 Strategic Plan.
Public Engagement
This item is a business item for the September 17, 2024, City Council meeting and will follow all required postings and notifications. The public will have the opportunity to provide comment on this item at or before the meeting. During the development of the plan the public was invited to participate through Open City Hall website.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378
FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
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 $0 $0 $0 $0
Item 7a
The Fire Department is funded through the General Fund’s annual budget appropriation adopted by the City Council. All activities within the report are covered through the annual program appropriations as outlined in the City’s Financial Plan. There are no financial impacts directly related to receiving the department’s Strategic Plan update.
Implementation of strategies identified in the plan may have an associated financial impact, which will be identified in the course of planning for implementation.
ALTERNATIVES
1. The City Council could choose to not receive and file the report. This is not recommended as the Strategic Plan provides future guidance for the department in multiple areas over the upcoming years.
2. The City Council could choose to direct changes to the Strategic Plan. This is not recommended as changes could cause delays in accomplishing goals and derail timelines that are based on extensive work with stakeholders.
ATTACHMENTS
A – San Luis Obispo City Fire Department Strategic Plan 2024-2029
San Luis Obispo City Fire
Department 2024-2029
Strategic Plan
2 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
CITY OFFICALS
Erica A. Stewart, Mayor
Jan Marx, Vice Mayor
Andy Pease, Council Member
Michelle Shoresman, Council Member
Emily Francis, Council Member
Whitney McDonald, City Manager
Greg Herman, Deputy City Manager
COMMAND STAFF
Todd Tuggle, Fire Chief
Sammy Fox, Deputy Fire Chief
Ray Hais, Battalion Chief
Shayne Skove, Battalion Chief
John MacDonald, Battalion Chief
PREPARED BY
Todd Tuggle, Fire Chief
Mika Timpano, Administrative Specialist
Nicole Vert, Business Analyst
James Blattler, Emergency Manager
3 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
TABLE OF CONTENTS
Message from the Chief………………………………………………………………………….4
Jurisdiction and Organizational Background...................................................................... 5 Introduction......................................................................................................................... 6 Strategic Planning Process.................................................................................................7 Summary of Findings from External Stakeholders...................................................8 Summary of Findings from Internal Stakeholders....................................................9 Mission, Vision, and Values................................................................................................10 Fire Department Organizational Chart................................................................................11 Fire Department Statistics................................................................................................. 12 Strategic Initiatives..............................................................................................................13 Community Focused Service………………..............................................................13 Professional Development and Training…………....................................................16 Health & Wellness……………………………............................................................19 Emergency Preparedness………………...................................................................21 Community Risk Reduction….………………............................................................23 Technology & Data…………...………………............................................................25 Team Implementation......................................................................................................... 27 Success of the Strategic Plan.............................................................................................29
4 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
MESSAGE FROM THE FIRE CHIEF
San Luis Obispo City Fire is pleased to present the next iteration of the Fire Department Strategic Plan. The 2018- 2023 plan yielded many improvements that have brought
us to the 2024-2029 version.
The 2024-2029 Strategic Plan was developed with an
engaged group of external and internal stakeholders who cast a vision of the future for our department. The SLO Fire Department Strategic Plan contains six initiatives focused on improving SLOFD's ability to reduce risk while delivering exceptional customer service. The stakeholders took a holistic view of the department and the community to come up with the key work efforts which will continue to refine our direction and efforts towards the specific needs of San Luis Obispo. Needs such as wildfire threat, mental health crises, homelessness and a growing population
among other impacts drove the initiatives in this plan.
As we look forward to the next few years of growth and development in the Department, SLOFD remains committed to providing exceptional service amidst the continuously evolving nature of public safety. Thank you for your commitment to SLOFD and our work in this community.
Command staff from left to right:
Battalion Chief Skove, Battalion
Chief Hais, Deputy Chief Fox,
Battalion Chief MacDonald,
Fire Chief Tuggle
5 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
JURISDICTION AND ORGANIZATIONAL BACKGROUND
San Luis Obispo was founded by the Spanish in 1772, when Saint Junípero Serra established Mission San Luis Obispo de Tolosa. Located on the Central Coast of California, San Luis Obispo is the largest city and seat of San Luis Obispo County. The population is estimated 48,341 per the 2022 census. The city has a total area of 13.25 square and is home to California Polytechnic State University, San Luis Obispo. San Luis Obispo is a seismically active area; there are several nearby faults including the San Andreas Fault. The City of San Luis Obispo is surrounded by more than 4,000 acres of protected open space and is a popular tourist destination that attracts visitors from across the globe. The Nine Sisters are a string of hills that partially run through San Luis Obispo. They are geologically noteworthy for being volcanic plugs. Six of the nine peaks are open to the public for recreation.
San Luis Obispo is incorporated as a charter city. The city charter provides for a "CouncilMayor-City Manager" form of municipal government. The City Council has five members, a mayor who is elected to two-year terms, with each mayor limited to serving no more than four consecutive terms, and four city council members who are elected to four-year terms, with each council member limited to serving no more than two consecutive terms.
The Fire Department of San Luis Obispo was first organized in 1872 and has 49 fulltime Firefighters operating out of four fire stations and 14 Fire Prevention and Support personnel. The Department provides “All-Risk” service to the community through five (5) Divisions: Administration, Emergency Management, Fire Prevention, Training and Suppression.
Fire Station #1 houses Administration, Fire Prevention, Emergency Management, Training, and vehicle maintenance and repair. Fire Station #1 operates a 4-person advanced life support (ALS) truck company, Battalion Chief, and 2-person Mobile Crisis Unit. Fire Station #2 operates a 3-person ALS Quint that cross staffs the Department’s off-road UTV. Fire Station #3 operates a 3-person ALS engine company and houses the state-owned OES engine. Fire Station #4 operates a 3-person ALS engine company that cross staffs Type 3 4x4 wildland engine.
Each apparatus has at least one paramedic on duty each day and the Mobile Crisis Unit is staffed with two personnel, one of which is a mental health professional Monday-Friday. The department responds to over 7,000 calls each year, including Automatic and Mutual Aid assistance to adjacent agencies and statewide response. The San Luis Obispo City Fire Department also maintains a bike medic and UTV program which is used for open space rescues and downtown special events throughout the city.
The San Luis Obispo City Fire Department also participates in a variety of county teams and associations to better collaborate and improve service to the community. Nine members of the Department are part of the San Luis Obispo County Urban Search and Rescue Team, and six members of the Department are part of the San Luis Obispo Regional Hazardous Materials Response Team. The Department also participates as part of the San Luis Obispo Fire Investigation Strike Team (SLOFIST), a joint agency Fire Investigation team, the San Luis County Training Officers Association, and San Luis County Fire Prevention Association.
Several members participate on the Type 3 SLO County XSL Incident Management Team,
6 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
which serves all county jurisdictions during major extended emergency operations such as fires, floods, earthquakes, pandemics, and civil unrest. The Department has automatic and mutual aid agreements with surrounding departments, the California Office of Emergency Services, and the Los Padres National Forest.
In addition to providing exceptional and compassionate emergency response, the Department embraces inclusive fire prevention and education strategies that include fire and life safety inspections, plan review services, fire/arson investigation, fire safety and public safety education, and disaster preparedness classes.
INTRODUCTION
Over the last 150 years, the San Luis Obispo Fire Department has grown and evolved to professionally achieve and meet the needs of the communities’ unique challenges. The San Luis Obispo City Fire Department provides modern fire suppression, emergency medical services, fire prevention, technical rescue, hazardous materials mitigation, domestic preparedness planning and response, fire investigation and public fire safety education service to the community.
The San Luis Obispo Fire Department prides itself on being progressive in terms of providing state-of-the-art emergency services at an efficient cost. One of the Department objectives is to update and maintain an inclusive and thorough Strategic Plan for current work programs and long-term planning. This is the first update to the Department Strategic Plan which was originally initiated by Fire Chief Garret Olson in 2018.
The process includes review of the department mission, responsibilities, and stakeholder expectations including a comprehensive evaluation of set performance standards, best practices, and alignment with major city goals. This plan is intended to guide the organization towards improved performance and increased service delivery to the community of San Luis Obispo and its visitors. The Plan includes input from a representative group composed of members of the Department (internal stakeholders), other City Departments, elected officials, and the community at large (external stakeholders).
7 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
The San Luis Obispo City Fire Department’s Strategic Plan sets forth a comprehensive vision and mission statement that provides the agency with a clear understanding of its purpose.
Additionally, this strategic plan identifies the core values that allow the agency’s members, individually and collectively, to carry out the day-to-day functions in support of the mission.
STRATEGIC PLANNING PROCESS
What is a Strategic Plan? It is a living management tool that provides short-term direction, builds a shared vision, sets goals and objectives, and optimizes use of resources.
The evolution of this Strategic Plan has been thoughtful, deliberate, and measured. To ensure that the community’s needs and priorities were considered, a community focused Strategic Planning Process was used to develop the SLOFD Strategic Plan. For many successful organizations, the voice of the community drives their operations and charts the course for their future. A community focused organization is defined as “one that maintains a focus on the needs and expectations, both spoken and unspoken, of customers, both present and future, in the creation and/or improvement of the product or service provided.” Strategic Planning is a continuous and systematic process where the guiding members of an organization make decisions about its future, develop the necessary procedures and operations to achieve that future, and determine how success is to be measured. Planning is a continuous process, one with no clear beginning and no clear end. While plans can be developed on a regular basis, it is the process of planning that is important, not the publication of the plan itself. Most importantly, strategic planning can be an opportunity to unify the city, leadership, members, and stakeholders through a common understanding of where the department is going, how everyone involved can work toward that common purpose, and how progress will measure success.
STRATEGIC PLANNING PROCESS OUTLINE
1. Define services provided to the community and establish the community's service priorities in alignment with Major City Goals.
2. Establish the community’s expectations of the department, aspects that the community views positively, as well as any concerns they may have about the department.
3. Identify both external and internal environmental and operational challenges.
4. Align with the department’s mission statement, values, and vision.
5. Identify areas of strengths, weaknesses, opportunity for and potential threats to the department.
6. Establish realistic goals and objectives, along with critical tasks for each objective.
7. Understand the obstacles of specific action steps to be effective in achieving completion.
The San Luis Obispo City Fire Department utilized a community focused strategic planning process to critically examine traditions, values, philosophies, beliefs, and desires. With a focus on service to the community and providing all personnel the opportunity to participate in the development of the organization’s long-term goals and initiatives. The members of the
8 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Department’s external and internal stakeholder groups performed an outstanding job in committing to this important project and remain committed to the document’s completion.
A strategic plan serves as a management tool that documents the shared mission and vision into a series of short-term and long-term strategic initiatives, goals, and objectives. The intent is to drive the organization toward a common vision while optimizing organizational resources. The San Luis Obispo City Fire Department recognizes that the future of the fire service will continue to change due to multiple influencing forces, the greatest of which will be citizen expectations. Although we fully expect to see influences from all facets of the world around us, it is service to our citizens that will drive most changes. In short, we don’t want to waste time and energy on goals that lack a good cost/benefit ratio. The process of strategic planning is as important as the final plan itself. The inclusion of internal stakeholders from all ranks and a diverse cross section of external stakeholders provided feedback to ensure the plan had strategic initiatives that reflected the community but were balanced against various constraints.
Internal stakeholders included all suppression personnel, emergency management, fire prevention, vehicle technicians, chief officers, and administration. External stakeholders included all city department heads, deputies, city management and elected officials and the public at large. The community was encouraged to participate through Open City Hall website which resulted in 137 respondents. The feedback from our community helped inform the components of our plan and helped identify priorities and the method and means for accomplishing those priorities.
The process, internally, took department members through a wide variety of lectures and discussions on fire department organization, levels of service and meetings to discuss and review the department Strengths, Weaknesses, Opportunities and Threats (SWOT analysis).
External stakeholder participants were provided a comprehensive series of questions related to their expectations as customers and service providers.
SUMMARY OF FINDINGS FROM EXTERNAL STAKEHOLDERS
Overall, 80% of respondents were extremely satisfied with the service provided by the San Luis Obispo City Fire Department with top comments identifying quick response, professional service, and appreciation for the kind personnel. A significant amount of feedback recommended maintaining service levels as current performance provided is sufficient.
Additional priorities include:
1. Maintain current core services and service levels (primarily response times) throughout the existing community. The Department is free to improve/enhance service levels, but the community does not want to pay for any enhancements.
2. Provide more community outreach and public education on fire prevention, home safety, disaster preparedness and mental health services.
3. Increase proactive wildfire preparedness through annual weed abatement inspection/enforcement, fuel management in the open space, creeks, and surrounding areas to protect infrastructure and open space.
9 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
4. Maintain quick response to emergencies while moving to reduce use of Truck 1.
5. New/future development growth should pay their own way and not adversely impact the current service levels in existing areas.
6. Expand the Mobile Crisis Unit outreach to address and reduce homelessness, addiction issues and illegal fires.
7. Continue to advance Disaster Preparedness throughout the City through employee training, community forums and social media.
8. Continue use of various social media outlets to provide up to date information including appearances on KVEC and online informational videos.
9. Increase positive firefighter visibility in the community at public events, supporting local businesses, and providing safety information.
SUMMARY OF FINDINGS FROM INTERNAL STAKEHOLDERS
The Department sought input by all internal members through a series of self-assessment steps. The Deputy Chief, Fire Marshal, shift Battalion Chiefs, and company officers were provided pre-meeting information about the Department philosophy of the strategic plan development, organizational decision-making priorities, and guidance document review. The group reviewed the department mission statement, 2018-2023 strategic plan, City Council Major City Goals, current department budget, 2022 Community Development presentation on proposed development, current ISO rating information and a variety of National, State, and local standards.
The discussions at each level were transcribed into draft SWOT analysis. A SWOT analysis is a widely applied tool in strategic decision support which identifies an organization's strengths, weaknesses, opportunities, and threats. Identifying an organization's traits into categories allows opportunities for improvement. Strengths can be used to exploit opportunities and to help prevent threats. Overcoming weaknesses to exploit new opportunities is the challenge; however, performing a SWOT analysis enables agencies to self-evaluate and show improvement opportunities to become more safe, healthy, prepared, and resilient communities.
Teams were asked to be visionary while working within the constraints of what the department controls to develop actionable organizational priorities for the five-year strategic plan. Primary items identified include:
1. Continue to emphasize the San Luis Fire Department mission, core values and vision to meet community needs at all levels of the organization.
2. Maintain a high level of customer service to match community priorities within fiscal capacity.
3. Pursue third party assessment of department data, insurance service office rating, community service needs, and proposed community development to define and maintain effective response time and operational force.
4. Increase personnel training, education, competency, and mentorship at all levels of the organization in correspondence to the many new entry level and promotional employees.
10 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
5. Continue with high level of coordination between the City and Department Public Information Officer to provide continuous emergency and non-emergency information flow to the community.
6. Advance community preparedness in line with ready-set-go, 72 hour-kit, home fire safety and public safety academy.
7. Continue to build a safe, healthy, prepared, and more resilient firefighters through enhanced Occupational Safety, Health, and Wellness Program.
DEPARTMENT MISSION, VALUES AND VISION
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FIRE DEPARTMENT ORGANIZATIONAL CHART
12 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
FIRE DEPARTMENT STATISTICS
2023 Budget
13 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Calls for Service
STRATEGIC INITIATIVES
The San Luis Obispo Fire Department 2024-2029 Strategic Plan bridges the gap between the organizational mission and the critical day-to-day tasks it takes to support an organized list of goals in the form of a strategic planning document. Which outlines organizational priorities for the next five years. Strategic initiatives are broad statements that set a direction for the organization. Many require support and/or cooperation from entities or departments outside of the Fire Department. Under each initiative, there may be included more specific goals and objectives that support the overarching initiative. Based upon all previously captured information and the determination of crucial issues and service gaps, the following strategic initiatives were identified as the foundation for the development of goals and objectives.
Community focused service, professional development and training, health and wellness, emergency preparedness, community risk reduction, and technology and data.
14 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
GOALS and OBJECTIVES
To continuously accomplish the mission of the San Luis Obispo Fire Department, realistic goals and objectives with timeline for completion must be established. These will serve to enhance strengths, address identified weaknesses, provide a clear direction, and address the concerns of both internal and external stakeholders. These should become the focus of the department’s efforts, as they will direct the organization to its future while reducing the obstacles and distractions along the way. Established internal workgroups should meet and manage progress towards accomplishing these goals and objectives. These groups will continuously report back monthly with to department leadership updates to progress and adjustments needed based on the City and Community environment.
Maintain or improve exceptional community focused public service delivery. To meet the demands of the future, utilize response data to provide accurate, reliable forecasting and quality business analytics. Use of quality data to make decisions is a critical element moving the organization forward as we focus on improvement of the performance of our organization. It is essential that we establish methods to measure the performance of the services we provide.
Goal 1A Improve effective deployment of resource response time performance Objective To provide the same level of emergency services throughout all areas within the City of San Luis Obispo and Cal Poly campus. Currently the Fire Department is experiencing longer than the adopted response time standards in several areas of throughout community.
Critical Tasks Utilize Image Trend Continuum to evaluate performance indicators.
Provide monthly Turnout Time data to Deputy Chief, Shift Battalion Chiefs and Fire Captains.
Continue to utilize Automatic Vehicle Locator (AVL) to dispatch the closest available emergency resource.
Work in conjunction with Business Analyst to review Total Response Time performance on quarterly basis.
Assess need for updated Standards of Cover document to illustrate opportunities for improvement.
Evaluate and determine tiered response dispatch system to reduce call processing and dispatch for critical incidents. Evaluate the utilization of Medic Rescue 1 on a wider scale to reduce Truck 1’s call volume.
Improve staff notification process and recall procedures by updating internal notification and recall system.
Utilize data and metrics to identify gaps in response strategies and explore response time improvements through movement of Strategic Initiative
1 Community
Focused Service
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resources, alternative deployment model and/or addition of resources.
Inform department, city administration and community of realtime unit response time data using public facing website. Work to maintain or improve the department’s Insurance Services Office (ISO) rating.
Continue to forecast service impacts related to community growth, development, and annexations.
Assigned to Department Administration Team
Timeframe 2024/2027
Goal 1B Improve the delivery of Emergency Medical Services (EMS) in the City of San Luis Obispo
Objective To work in conjunction with SLO County Emergency Medical System Authority (EMSA), Department Paramedic Coordinators, Paramedic Field Training Officers, the EMS Battalion Chief, the department’s Training Division, and our partners from allied agencies to look for ways to improve emergency patient care delivery throughout the community.
Critical Tasks Maintain and improve Quality Assurance and Quality Improvement program through review of all ALS patient care reports.
Evaluate and make improvements to Department EMS delivery and technology with a focus on quality patient care.
Maintain and improve ongoing EMS training delivery to meet and/or exceed current best practices.
Evaluate EMS Paramedic training opportunities for current members to maintain and increase number of
Firefighter/Paramedics.
Expand Department EMS response capabilities for special and planned events.
Evaluate expanded Firefighter/Paramedic training to include Crisis Intervention Training (CIT).
Research alternative models of pre-hospital care, delivery, and transport in collaboration with SLO County EMSA and SLO County Fire Chiefs Association.
Collaborate with LEMSA for Triage to Alternate Destination capabilities and training.
Evaluate high volume call locations for reduced impact to emergency resources.
Assigned to Fire Chief, EMS BC, Paramedic Coordinator Team, and Training Officer Timeframe 2024/2027
Goal 1C Evaluate and improve Mobile Crisis Unit (MCU) deployment and Crisis Intervention Training for all members of the Department Objective To provide a first responder-based community response for those in mental health crisis to reduce hospitalizations, emergency room visits, and homelessness.
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Critical Tasks Evaluate effectiveness of current MCU deployment to provide crisis support to residents experiencing mental health problem against response data to improve individual and community needs.
Update objectives of program to improve residents’ ability to access needed social and behavioral health services through MCU coordination.
Seek out funding options for Mobile Crisis and Outreach services through grant funding, reimbursement, billing and other revenue options.
Work with SLOPD in prevention of opioid overdoses and direct residents to appropriate resources.
Implement Crisis Intervention Training for ALL staff members.
Assigned to Deputy Chief, EMS BC, Training Division, and Mobile Crisis Team Timeframe 2024/2025
Goal 1D Evaluate the capital improvement plan for Department infrastructure, apparatus, equipment, and appropriate funding for expected needs Objective To provide for an efficient and effective response force, the Department needs to be strategically located throughout the community and respond with the appropriate resources and equipment.
Critical Tasks Evaluate and adjust the department sustainability financial plan as needed to maintain appropriate replacement schedules. Review and adjust the Department’s 30-year Fleet Replacement Plan and monitor for proper funding.
Review current City infrastructure replacement/upgrade plan with long‐term sustainability focus for fire department facilities addition and replacement.
Assess fleet and facility upgrades for conformance with climate action goals of Carbon Neutrality Plan.
Assigned to Fire Chief and Deputy Chief
Timeframe 2025/2027
Goal 2A Enhance the Department training, succession planning and professional development to provide and support highly qualified, well trained, safe, healthy, and fit employees
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Objective Over the past 5 years, the department has experienced immense turnover with nearly 30 new personnel, and it is projected that the Department will see additional retirements and needs to be prepared to promote individuals into higher positions throughout the organization by providing high quality and modern in‐service training delivery.
Critical Tasks Evaluate, expand, and update Recruit Firefighter academy training objectives.
Investigate interest in developing standard county-wide multiagency recruit academy. Evaluate, expand, and update the Fire Engineer preexamination academy training objectives to include new apparatus and Tractor/Tiller training.
Develop and implement Fire Captain pre-examination academy. Develop and implement Fire Battalion Chief pre-examination academy.
Evaluate coordination and weighted assessment of Fire Engineer, Fire Captain, and Fire Battalion Chief academies as part of the promotional process with Human Resources.
Develop training cadre of certified instructors to teach a variety of fire & rescue courses, including refresher training, in-house. Evaluate and develop Regional Truck Academy, through San Luis County Fire Training Officer Association.
Provide training, career development and succession planning for Prevention staff.
Develop clear career development pathways for multiple Prevention career paths.
Evaluate the cost-effectiveness of conducting in-house State Fire Training courses to increase training opportunities for our staff while remaining within our current training budget.
Assigned to Deputy Fire Chief, Community Risk Reduction Manager, Training Battalion Chief, Training Division.
Timeframe 2024/2027
Goal 2B Create and implement a professional career development program for all positions within the organization to include State Fire Training, National Wildfire Coordinating Group, Hazardous Materials and Technical Rescue Training courses
Objective Create professional foundation for Firefighter Interns, Firefighters, Fire Engineers, Fire Captains, Fire Battalion Chiefs, Fire Prevention staff, Fire Mechanics, and Mobile Crisis personnel to utilize in pursuing higher level of responsibility within the Department. This would include specialty teams and positions such as Urban Search and Rescue Team, Field Training Officer, Fire Investigator, Hazardous Materials Specialist Team, XSL Type 3 Incident Team member etc…
Critical Tasks Develop and evaluate performance benchmarks for position/work assignments.
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Design and implement a rank specific continuing education and career development guide grounded in current but forwardthinking industry trends. Maintain and improve position specific department task books to support the career development guide.
Review and update department job descriptions to reflect modern fire service certifications.
Support external training opportunities for State Fire and CICCS Training Certifications.
Build partnerships and seek opportunities to teach or host State Fire Training and CICCS certifications courses in-house.
Assigned to Training Battalion Chief, Training Officer, and Training Division.
Timeframe 2024/2026
Goal 2C Supervisor leadership training and mentorship
Objective To empower new and promoted personnel into their roles faster through a wide variety of training and mentorship opportunities to grow and develop.
Critical Tasks Develop appropriate course recommendations for each position within the department.
Encourage attendance of specialty training opportunities during annual appraisal recommendations.
Partner with Human Resources to secure training positions in City sponsored courses through the Centre for Organizational Effectiveness (Foundation in Excellence, START, Supervisory Academy, Management Academy, Leadership Academy and
Certified Public Manager).
Encourage supervisors to participate in City Quarterly Manager Meetings.
Develop and implement an Executive Mentoring program for Chief Officers and Division leads.
Re-envision and implement line level agency job shadow program with allied agencies in the tri-counties.
Assigned to Deputy Chief, Operations Battalion Chief and assigned team Timeframe 2024/2026
Goal 2D Recruit, develop, and retain a professional and diverse workforce Objective To make San Luis Obispo Fire Department a more welcoming and inclusive organization for all by developing programs and policies to support diversity, equity and inclusion initiatives and advance the recommendations of the City DEI task force.
Critical Tasks In coordination with Public Works continue to enhance improvements to fire station facilities.
In coordination with Human Resources, continue to enhance improvements to firefighter recruitment and training.
19 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Maintain and improve the Fire Intern program to meet DEI initiatives.
Expand intern opportunities to include multiple roles within the department, including suppression, emergency management, inspections, plan review, investigations, fuels management and Mobile Crisis Unit.
Develop or partner with public safety agencies for Youth Summer Fire Camp to increase fire safety, prevention and introduce youths to the fire service.
Continue to host and support the “Emergency Services Job Fair.” Consider local recruitment efforts through Cal Poly, local public safety academies and local school districts.
Assigned to Fire Chief, Deputy Chief and assigned team
Timeframe 2024/2027
Goal 2E To make improvements to the Fire training facility to develop fundamental training on a wider variety of hands-on emergency situations
Objective To improve the current fire training facility to incorporate a wider range of emergency situations our firefighters may encounter.
Critical Tasks Evaluate and develop plan for additional props and system addition to training facility.
In coordination with Community Development and Public Works continue to enhance improvements to the fire training facility. Continue construction on the live‐fire training facility to ensure live‐fire trainings are both frequent and sustainable.
Evaluate the need and opportunity for jointly owned mobile training props that may be shared amongst stations and other fire agencies in the County.
Meet NFPA 1402 standards on facilities for fire training and associated props necessary to accomplish general fire fighter training effectively, efficiently, and safely.
Incorporate Investigations training into live fire operational evolutions.
Look for opportunities to partner with SLOPD in developing training facilities or props that could be used by both police and fire.
Assigned to Deputy Chief, Training Battalion Chief, Training Officer, and Training Division.
Timeframe 2024/2025
20 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Enhance a healthy, safe, and productive work environment.
Goal 3A Expand opportunities to improve overall health, wellness, and functional fitness of all team members to minimize workplace injuries Objective An effective fire department organization is reliant on the people who provide all-risk service to the community. Use relevant data and best practices to improve overall health and wellness of all personnel.
Critical Tasks Review and evaluate the City Injury Reduction Program and CJPIA data, to research and implement best practices,
procedures, and strategies to mitigate organizational risks. Assess need for external consultant to provide specialty programs such as nutrition, and flexibility assessments. Obtain quotes and determine provider to conduct in-depth NFPA 1582 compliant annual physical exams. Consider expanding annual physicals to include Fire Prevention/Community Risk Reduction staff. Develop and implement an expedited and thorough return to duty process when returning from long term leave, injury, or illness.
Assigned to Deputy Fire Chief, Training Captain, Fitness Team/Shift Captains Timeframe 2024/2027
Goal 3B Firefighter Cancer Awareness and Reduction; cancer is a leading cause of death among firefighters, and research suggests firefighters are at higher risk of certain types of cancers when compared to the general population
Objective Develop effective exposure training, and best practices to reduce carcinogen exposures and promote a culture of safety.
Critical Tasks Appoint shift safety officer to provide general safety messages and provide technical information related to risk management of cancer-causing items.
Initiate training that increases cancer awareness and physical well-being to encourage firefighters to adopt work practices that lower their exposures to cancer-causing substances.
Promote healthier lifestyles that may reduce cancer risk and increase the use of cancer screening tools.
Continue to research, educate, and provide its members with the tools and PPE to increase safe work practices.
Training should emphasize the proper use and care of PPE and turnout gear and the proper use of approved respiratory protection during all phases of firefighting.
Review and update and enforce post fire decontamination process, procedures, and policies.
Strategic Initiative
3 Health & Wellness
21 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Continue to develop culture of safety related to carcinogenic exposure through the creation and implementation of a fire station hygiene program.
Improve firefighter cancer screening as part of annual NFPA 1582 physicals.
Complete install of PPE extractors in fire stations to maintain clean and uncontaminated personal protective equipment. Update all policies regarding PPE use, decontamination, and cleaning.
Assigned to Operations BC, Training Officer, and Shift Captains Timeframe 2024
Goal 3C Maintain and enhance the mental health and wellness PEER support program
Objective To provide the San Luis Obispo Fire Department personnel, both sworn and non-sworn, psychological, and emotional support through preincident training, family support, on-scene support, and post incident support as needed.
Critical Tasks Reduce the stigma and barriers to behavioral health help. Develop robust mental health support initiatives.
Improve information and access of the City Employee Assistance Program (EAP).
Partner with Human Resources, Police, and Rangers to secure licensed clinician contract.
Increase funding for PEER team and contract support.
Review and implement appropriate sections of NFPA 1500. Conduct ongoing training department wide and PEER team training.
Implement traumatic incident process: at scene diffusing, debriefing, PEER coordination and professional behavioral health treatment.
Provide feedback to Human Resources regarding The Counseling Team International (TCTI).
Expand PEER support team to include additional members, including representation form FP/CRR staff.
Assigned to Deputy Fire Chief, BC MacDonald, Engineer Gatton, and PEER Team Members
Timeframe 2024/2027
22 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Maintain and improve Emergency Management and Preparedness for all person made and natural large-scale disasters to meet current and future needs.
Goal 4A Maintain and improve all Disaster Preparedness Program plans.
Objective Maintain the comprehensive, risk-based, and all-hazard emergency plans, which describe who will do what, as well as when, with what resources, and by what authority before, during, and immediately after an emergency.
Critical Tasks Review and update the Emergency Operations Plan (EOP). Review and update the EOP supporting annexes.
Review and update the Community Wildfire Protection Plan. Review and update the Local Hazard Mitigation Plan (LHMP). Develop and implement the emergency management improvement plans created post disaster and trainings.
Assigned to Emergency Manager
Timeframe 2024/2027
Goal 4B Provide initial and ongoing employee training and enhancement of skills and abilities
Objective Ensures that City personnel can provide appropriate emergency management services following a major disaster such as earthquake, flood, nuclear power accident, hazardous material spill, wildland fire, utility outage and pandemic.
Critical Tasks Maintain and update post-hire/promotion NIMS position training for all employees.
Provide annual City-wide email explain the Disaster Service Worker background and responsibility.
Establish annual City Staff EOC/DSW Training Plan / Calendar Ensure City department-specific emergency planning needs are met.
Ensure appropriate SEMS compliant After-Action Reviews following all major incidents.
Assigned to Emergency Manager
Timeframe 2024/2027
Goal 4C Provide whole Community Disaster Preparedness Training Objective To provides information and education on disaster preparedness, and evacuation procedures to city residents.
Critical Tasks Establish ongoing Community Readiness event calendar. Provide topic specific disaster preparedness forums.
Maintain and update PrepareSLO website.
Provide monthly awareness information on social media sites.
Strategic Initiative
4 Emergency
Preparedness
23 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Participate in the completion and implementation of evacuation program in collaboration with SLO County OES and resident training on “know your zone.”
Engage City Volunteer Coordinator to empower neighborhood groups in risk reduction activities.
Assigned to Emergency Manager
Timeframe 2024/2027
Goal 4D Support the development of a dedicated City EOC at the new Public Safety Center and complete comprehensive functional upgrades to the existing EOC which will become the alternate site location.
Objective Assist with the design of the new Emergency Operations Center (EOC) at the Public Safety Center.
Critical Tasks Maintain high level of engagement as part of the EOC development team at the new Public Safety Center.
Ensure the new Emergency Operations Center is designed for survivability, redundancy, communications, flexibility, open architecture, and security.
Complete necessary upgrades to the current EOC located at Fire Station #1.
Develop a Continuity of Operations Plan for offsite/back-up EOC to include mobile option.
Development of a robust needs assessment for emergency management grant opportunities.
Identify and implement new EOC software program to improve the communication, tracking and recovery during a disaster incident.
Assigned to Emergency Manager
Timeframe 2024/2027
Maintain or improve Fire Prevention Division Risk Reduction in San Luis Obispo Goal 5A Increase target outreach to high-risk populations through Community Risk Reduction based programs
Objective Provide a thorough Community Risk Reduction (CRR) program intentionally focused on knowledge and activities to lower the all-hazards risks within the City of San Luis Obispo.
Critical Tasks Evaluate and develop a strategic and integrated program focused on reducing the occurrence and impact of risks associated within the City of San Luis Obispo.
Develop community training calendar for both in-person and virtual events.
Strategic Initiative
5 Community Risk
Reduction
24 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Develop list of annual social media information posts to share out as appropriate.
Identify target hazard focus groups that may benefit from inperson presentations, discussion, volunteer inspections and department prevention resources.
Partner with American Red Cross “Sound the Alarm” campaign. Provide public education in schools and public for disaster preparedness and fire safety.
Assigned to Fire Marshal, Emergency Manager and Fire Chief Timeframe 2024/2027
Goal 5B Target Hazard Pre-Plans
Objective Develop detailed pre-plan program to improve incident command and responding firefighters understanding of a property experiencing a fire incident, including the location of hazardous materials, entrances, exits, fire suppression systems and priority salvage and overhaul areas.
Critical Tasks Evaluate pre-plan software program to best fit department needs and IT support.
Develop procedures and policy for completing assigned preplans. Establish list of priority properties to be entered into the system based on hazard, risk to population and Haz-Mat.
Partner with business licensing to flag priority properties that open new business and meet the requirement for a pre-plan.
Work with partners in PD and Rangers to coordinate preplanning efforts in Wildland Urban Interfaces that are impacted by homeless encampment activities.
Assigned to Operations Battalion Chief, Fire Marshal, and Suppression Captains Timeframe 2024/2025
Goal 5C Maintain and update the Department Fuel Reduction & Defensible Space Program
Objective To execute a proactive and effective fuel reduction program to lessen wildfire hazards and threat to human safety and damage to property.
Critical Tasks Facilitate a comprehensive update to the City’s Vegetation Management plan in partnership with the City Natural Resource Officer.
Identify City-wide priority projects for vegetation (fuel) removal to create defensible space commensurate to property and human risk.
Increase wildfire preparedness through annual Ready-Set-Go presentations both in-person and virtual.
Partner with SLO County Fire Safe Council to secure grant funding for unfunded priority projects.
Increase public notice through advertisements, social media, and City websites to encourage residents to conduct fuels reduction treatment of their properties.
25 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Review and update the Community Wildfire Protection Plan. Codify Citywide Vegetation Management Committee.
Institute proactive annual weed abatement enforcement with halftime inspector.
Assigned to Fire Marshal, Emergency Manager and Fire Chief Timeframe 2024/2027
Goal 5D Reduce illegal homeless fires
Objective Develop homeless encampment program to address High and Very High Fire Hazard Severity Zone and other areas of the city.
Critical Tasks Identify priority project areas (homeless encampments, creeks, surrounding areas) to reduce fuels increasing defensible space and improving wildfire mitigation efforts.
Discuss and determine to implement joint citation procedures for illegal fires through Fire Department, Park Rangers, Mobile Crisis, and Police Department.
Increase outreach to homeless community living within high-risk vegetation areas.
Assigned to Deputy Chief, Fire Chief
Timeframe 2024/2025
Goal 5E Address property insurance issues for residents within the CAL FIRE Very High and High Severity map areas.
Objective Provide resident information regarding homeowners insurance and proactive actions that may be taken.
Critical Tasks Create informative pamphlet on what actions local homeowners can do to reduce the risk of wildfire through mitigation efforts and increase opportunity to maintain homeowners’ insurance. Partner with SLO County Fire Prevention Association to develop uniform “Frequently Asked Question” document to be displayed on agency websites related to Fire Insurance.
Partner with SLO County Fire Prevention Association to develop uniform letter to property owner related to Fire Insurance cancellations and recommended actions.
Review and comment on CAL FIRE 2022 Risk Mapping related to the ground truth of hazard and risk within the city.
Assigned to Fire Marshal and Fire Chief
Timeframe 2024/2025
26 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Maintain and improve Fire Department Technology and Information System that meet the current and future needs of the department.
Goal 6A Identify and evaluate current technology resources used by the department to inform decisions on future improvements and needs Objective To research, analyze, and recommend relevant state of the art hardware, software, and technologies.
Critical Tasks Perform a strategic needs assessment relative to new and emerging technologies.
Assess the current software programs to determine long-term feasibility and alternative solutions.
Revisit Tablet Command and make recommendations.
Evaluate and recommend implementation of a drone program for open space and major incident intelligence.
Evaluate and recommend purchase of hybrid fire apparatus. Implement City of SLO Carbon Neutral fleet requirements for relevant light and heavy fleet equipment.
Evaluate and implement asset management software systems to track equipment, resources, and supplies.
Assigned to Fire Chief, Deputy Fire Chief, Emergency Manager, Battalion Chiefs and assigned team
Timeframe 2024/2026
Strategic Initiative
6 Technology & Data
27 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
TEAM IMPLEMENTATION
Prioritization: Prioritizing strategic goals and objectives is essential for making progress and ultimately reaching the vision. This process can be translated easily from the fireground, where we are challenged to pick the most impactful issues to get after first. There are several ways to prioritize goals. It’s important to remember that when it comes to prioritization, there can only be a single number one priority. If everything is a priority, then nothing is a priority.
Additionally, it’s important to avoid categorizing priorities too broadly as it can lead to poor communication of which components of each priority should come first. That said, if tasks are divided up to be worked by different teams, they should each have their own priorities informed by the master priority list. That means each team can be working their own tasks simultaneously unless they would be pulling resources from one another where the master priority list would then help to deconflict. It’s essential that each team understands which of their tasks are of the highest importance and should be tackled first.
Responsibility: Determining who will take responsibility for each specific strategic priority is perhaps the single biggest factor to success. It’s no different than on an emergency scene: if the incident commander gives unclear instructions or assignments, it could lead to confusion or even disaster. If it is unclear who is ultimately responsible for a given topic, it is easy to have a breakdown in communication that leads to either conflict over many people believing they are the decision maker, or, more commonly, neglect, with people believing that someone else will handle it. Assigning a single individual as the champion and principal coordinator for each individual item will ensure that there is the right amount of buy-in, leadership, and oversight over the department’s strategic efforts.
Action: Setting priorities and assigning responsibility are essential, but they are not enough on their own. To achieve strategic goals and objectives, it is necessary to have a welldefined plan of action. Just as a fireground leader might rally the team, listen to status reports, and then talk though a tactical approach to the next objective, strategic plan leaders must prepare their key players with a coordinated plan of attack to get after their assigned tasks. This is where it’s vital to have a good “coach” overseeing the strategic efforts, deconflicting projects that may compete for resources or attention, and continually motivating and providing feedback to those doing the work. As a paramilitary organization, we can borrow a lot of wisdom from the military. One popular saying in military circles is: “No plan survives first contact with the enemy.” As your team gets started chipping away at tasks, they will inevitably run into roadblocks and unexpected challenges. One way to get ahead of this will be to deliberately encourage flexibility, create space for failure, and empower the team to seek alternative solutions.
Collaboration: Staff likely understand the value of working in teams more than most. Much of what we do day-in and day-out is done either as a small team (like a single company) or a larger team (like one or more stations). That said, we are not immune to creating silos, building walled-kingdoms, or failing to consider other perspectives, especially the further we get from the fireground. As we drive our strategy from vision to plan to action, we must make a conscious effort to share the intent for early and continuous collaboration across teams.
This collaboration is not just within the subgroups working on individual efforts but should be encouraged at all levels. Sharing strengths, resources, and perspectives across teams will
28 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
add value and reduce friction as they approach each task. Just like on the fireground, more eyes and more hands at a tough job will usually decrease risk and lighten the load.
Communication: Hand in hand with collaboration is effective communication. It’s not enough to just ask for help when you need it. Just like a C.A.N. report, giving regular updates to your team and department leaders is a great way to communicate needs, stay on track, and receive the feedback needed to remain agile in the journey towards completion of your assigned tasks. This battle rhythm will vary for different teams and in different seasons.
Earlier in a project, the team may need significantly more feedback than towards the end.
Likewise, teams that are working on projects they are specialized in could require less regular communication than a team tasked with something more outside their usual scope or specialty. One leadership-driven opportunity related to communications is to encourage transparency and truthfulness, even in failure. Consider ways you can champion transparency, create space for setbacks and failures, and encourage richer collaboration.
The fireground is a unique ecosystem of communication, teamwork, adaptability, ingenuity, prioritized task execution, and selfless service. Fire service leaders in the conference room would do well to adopt these traits when approaching issues like a department’s strategic planning cycle. Things don’t always go as planned, and the team will inevitably run into roadblocks along the way. By creating an environment with a clear vision, clear expectations, continuous feedback, and multiple perspectives, you may see the strategic goals and objectives of the department come to life both better and faster than you could have ever imagined. Finally, just like the ice cream with dinner after a shift well-done, don’t forget to celebrate the team’s successes as they make progress on the planning and execution efforts.
There will always be more to be done, and it’s your job to make sure your team is recognized, rested, and ready for the next challenge to come.
29 SLO CITY FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
THE SUCCESS OF THE STRATEGIC PLAN
The San Luis Obispo Fire Department has approached its desire to develop and implement a Strategic Plan by asking for and receiving input from the Community and members of the Department during the development stage of the planning process. The Department utilized professional standards and the Community Focused Strategic Planning Process to compile this document.
The success of the San Luis Obispo Fire Department’s Strategic Plan will not only depend upon implementation of the strategic initiatives and their related goals, but also from the support received from the City of San Luis Obispo, members of the Department, and the Community-At-Large.
The final step in the Community Focused Strategic Planning Process is to develop organizational and community commitment to the plan. Everyone who has a stake in the present and the future of the San Luis Obispo Fire Department also has a role and responsibility in this Strategic Plan.
Provided that the Community Focused Strategic Planning process is kept dynamic and supported by effective leadership and active participation, it will be a considerable opportunity to unify internal and external stakeholders through a jointly developed understanding of organizational direction; how all vested parties will work to achieve the mission, goals, and vision; and how the organization will measure and be accountable for its progress and successes.
City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 17, 2024
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 7B. INTRODUCE AN ORDINANCE TO ESTABLISH AN IMPACT
FEE DEFERRAL PROGRAM FOR QUALIFYING RESIDENTIAL
PROJECTS
This Staff Agenda Correspondence is meant to provide clarity on an aspect of the proposed Impact Fee Deferral program. The Development Impact Fee Deferral Program Guidelines that are included as Attachment C to the staff report define the projects that are eligible for the fee deferral program. Staff has determined that, as currently worded, it is not clear that eligible projects must be for-rent projects, and that for-sale projects are not eligible. The staff report also did not specifically call out this requirement.
Staff is recommending that only for-rent projects be eligible for the program, as they will remain under one ownership during the life of the project, and therefore, there will be one owner that is required to pay back the fee deferral loan when it becomes due. It would be very difficult or impossible to collect a fee deferral loan from a for-sale project (such as a condo project) that includes many owners. Staff is proposing an update to the Guidelines document, shown below in blue, to clarify that only for-rent developments are eligible for fee deferral under the program.
Item 7b
Department: Community Development
Cost Center: 4008
For Agenda of: 9/17/2024
Placement: Public Hearing
Estimated Time: 45 minutes
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
SUBJECT: ADOPT A RESOLUTION AND INTRODUCE AN ORDINANCE TO AMEND SECTION 4.56.050 (PAYMENT OF FEES) OF THE MUNICIPAL CODE TO
ESTABLISH A DEVELOPMENT IMPACT FEE DEFERRAL PROGRAM
FOR ELIGIBLE AFFORDABLE HOUSING PROJECTS
RECOMMENDATION
1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, superseding Resolution No. 9903 (2007 Series) providing for the deferral of city-wide development impact fees for eligible affordable housing projects”; and
2. Introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, establishing a development impact fee deferral program for eligible affordable housing projects”; and
3. Authorize the Community Development Director to approve applications for impact fee deferrals and execute agreements therefor, in forms approved by the City Attorney’s Office. The Director may refer approvals to City Council on an as-needed basis or concurrently with Affordable Housing Fund (AHF) awards.
REPORT-IN-BRIEF
In an effort to advance the Major City Goals of Housing and Homelessness, Council adopted Resolution 9903 (2007) which allows, upon request and at the discretion of the Community Development Director, deferral or waiver of impact fees imposed by the City on affordable housing projects. Deferral of impact fees has helped accelerate the production of affordable housing units in the City by reducing costs as well as enabling developers to leverage additional competitive tax credit funding. The updated resolution and ordinance proposed by staff will create a formal program for affordable housing developers to request and secure certain impact fee deferrals, in addition to cleaning up existing municipal code language related to the timing of development impact fee collection. All deferrals through the program will be in the form of a loan rather than an outright waiver of the fees. This will ensure that all infrastructure improvements secured through development impact fees will continue to be funded.
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POLICY CONTEXT
The City’s Major City Goal for housing and homelessness states:
Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing as well as accessibly connected development.
Collaborate with local non-profit partners, non-governmental agencies, the county, the state, and federal governments to advocate for increased funding and implementation of comprehensive and effective strategies to prevent and reduce homelessness.
The Goal includes implementation measure no. 5 to implement Below Market Rate housing best practices.
The City recently received the Prohousing designation from the State Housing and Community Development Department for innovation in housing policy and a demonstrated commitment to developing solutions to the state’s housing crisis.
The City’s 6th Cycle Housing Element includes a Goal for Affordability, supported by the following policies and programs:
Program 2.9 - Assist with the issuance of tax-exempt bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve at least 20 affordable units annually through various programs. The proposed resolution and draft Ordinance allow for deferral of impact fees in the form of a loan to the project. The financing mechanism of a loan, rather than a waiver of impact fees, enables projects to leverage the loan amount as soft funding, adding points to competitive tax credit financing applications.
Program 6.16 - Incentivize 20 affordable housing developments per year during the planning period consistent with SLOMC Affordable Housing Incentives. The impact fee deferral program established by the ordinance will provide a standardized process for requesting and implementing impact fee deferral. This will incentivize development of affordable housing.
DISCUSSION
Background
Per Resolutions 9131 (2000 Series) and 9903 (2007 Series), the City has allowed, upon request, the waiver or deferral of certain development impact fees for projects that provide below market rate residential units beyond the inclusionary requirement or for projects by
Item 7b
non-profit affordable housing developers to defer the up-front cost of impact fees1. This effort has helped accelerate the production of below-market-rate units, especially those constructed by affordable housing developers using tax credits. Over the last decade, 300 units of housing across 8 projects have been constructed with the assistance of impact fee deferrals.
Resolution No. 9903 allows for the waiver of impact fees in addition to deferral of fees.
The outright waiver of impact fees creates a loss of revenue to the City’s impact fee programs, which may delay the City’s ability to construct improvements paid for using impact fees. To avoid this loss of revenue, the City has only executed impact fee deferral loans since Resolution No. 9903 was adopted. The deferral of fees provides a defined term of repayment of fees and ensures no ultimate loss of revenue to cover the ongoing impacts of the development.
Impact fee deferrals have successfully provided important financial incentives over the years to affordable housing projects. Impact fee deferral loans, combined with other funding sources such as Affordable Housing Fund (AHF) awards, Community Development Block Grant (CDBG) or other grant awards, all count as committed funding sources in competitive tax credit applications. The more committed funding sources a project has, the more competitive it will be in the tax credit allocation process, which is typically the final step in securing financing for affordable housing projects.
At this time, a program update is recommended to formally remove the option of fee waivers, implement best practices, and continue to incentivize tax-credit funded below market rate units. The attached resolution and ordinance will formalize the existing practices of the Community Development Department and would not implement substantial changes.
Proposed Program Update
The proposed resolution provides clarity for developers by creating a formal program for impact fee deferral. The program includes application guidance and procedures, including identification of fee categories that may be deferred, a defined loan term and interest rate, and removing the option of waiving impact fees altogether.
The Resolution allows for the promulgation of Development Impact Fee Deferral Program Guidelines (see Attachment C), which will further define the scope of the program, including eligibility, approval authority, the application process, repayment, and other terms. After submitting an application for fee deferral to the City and receiving approval from the Community Development Director, the developer will be required to execute a Development Impact Fee Deferral Deed of Trust and Promissory Note, which will be recorded on the property. The Promissory Note describes the deferral as a loan on the property for a term of 20 years and shall account for an annual simple fixed interest rate
1 The City collects development impact fees in accordance with the Mitigation Fee Act to cover increased infrastructure and services required to serve increased development within the City. Impact fees include fees such as park improvement fees, police and fire capacity base fees, and traffic impact fees.
Item 7b
of three percent, to be paid in full at the end of the term, in accordance with the draft Ordinance. A 20- year term would provide time for project construction and permanent loan conversion and allow the City fees to be paid with a fixed, three percent simple interest rate. Previous impact fee deferral loans approved by the City have had terms ranging from 30 to 55 years, with interest rates ranging from 3 to 4 percent.
Wastewater and water development impact fees have historically not been deferred, as the revenue from these fees offsets the need to increase rates for existing users.
Therefore, impact fees that would be eligible for deferral under the program would include:
police and fire base fees, parkland improvement fees, and transportation improvement fees.
Additionally, the proposed development impact fee deferral update only applies to Citywide impact fees; it does not apply to application or user fees, assessments, or special taxes for infrastructure improvements applicable to special benefit areas. Development related processing fees for very-low and low income housing projects are separately allowed to be waived upon request by City Council Resolution No. 8415 (1995 Series).
The proposed ordinance also clarifies the timing of the City’s collection of development impact fees to ensure consistency with state law. For all development projects that are not eligible or do not apply for the development impact fee deferral option, all development impact fees must be paid to the city upon final inspection or the date of the certificate of occupancy, whichever occurs first, unless the City requires payment of fees earlier (issuance of building permit) as allowed by Government Code 66007.
The proposed resolution supersedes and replaces Resolution No. 9903 (2007 Series) adopted by this Council on June 5, 2007, which allowed for the deferral and waiver of impact fees for affordable housing projects Resolution No. 9903 (2007 Series) also includes applicability of impact fee waivers for Accessory Dwelling Units (ADUs), however, California Government Gode Section 66324 directly regulates impact fees applicable to ADUs, and therefore this provision is removed from the proposed update.
Previous Council or Advisory Body Action
On May 2, 1995, the City Council adopted Resolution No. 8415 (1995 Series) (page 35) which waived development review fees for affordable housing units at the direction of the Community Development Director.
On November 21, 2000, the City Council adopted Resolution No. 9131 (2000 Series) for the purpose of waiving citywide development impact fees for affordable housing units in excess of inclusionary requirements or developed by non-profit housing corporations.
On June 5, 2007, the City Council adopted Resolution No. 9903 (2007 Series) which superseded and replaced Resolution No. 9131 (2000 Series), to allow for development impact fee waivers for voluntary affordable housing units developed by private developers (such as ADUs) in addition to projects that exceed the number required to meet the City’s inclusionary requirements and projects by non-profit developers.
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Public Engagement
Staff consulted developers of affordable housing projects, who voiced their support for continued fee deferrals through the program established by the proposed ordinance and resolution. Developers also concurred with the 20 year term of impact fee loans, as well as the timeline of the application and conditions of the deferral agreement. This item has been noticed in compliance with the City’s notification requirements.
CONCURRENCE
The Council Agenda Report was reviewed by the Community Development Department, Public Works, Finance Department, City Attorney, Utilities Department, City Administration for concurrence.
ENVIRONMENTAL REVIEW
The proposed resolution and draft Ordinance are exempt from the California Environmental Quality Act (CEQA), because it is not a “project” under Public Resources Code § 21065 in that the impact fee deferral program would not cause either a direct or reasonably foreseeable indirect physical change in the environment. Every development project subject to a development impact fee deferral loan would be required to undergo applicable development review, including CEQA compliance or finding of exemption.
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 $0 $ $ $
State
Federal
Fees
Other:
Total $0 $0 $0 $0
There is no financial impact directly associated with updating the development impact fee deferral program for eligible residential projects. The indirect impact of fee deferrals would be the delay in availability of impact fee revenue. Over the last 10 years, 8 impact fee deferral loans have been given to affordable housing projects, totalling $5 million in deferred impact fee revenue, with repayment terms ranging from 30 to 55 years at 3 percent interest. The proposed resolution would update the repayment term on all future deferral loans to 20 years, reducing the indirect impact on the City’s impact fee funds.
Staff anticipates that about one project per year will be given an impact fee deferral loan under the program, with an average amount of about $500,000 in impact fees deferred per project.
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ALTERNATIVES
1. Council could decide not to approve the resolution and introduce the draft Ordinance. Council could direct staff to continue to implement fee deferrals through the existing resolution. This action is not recommended by staff because the resolution and draft Ordinance regarding the development impact fee deferral program provides updates and guidelines for clarity, removes the option for fee waivers consistent with current practice, and creates a formal application process for affordable housing developers.
2. Council could provide additional direction on program specifics, such as program applicability and loan term. Staff requests that Council provide specific direction on any proposed changes, which could be incorporated into a revised resolution to be presented with the second reading of the proposed ordinance.
3. Council could delay implementation of the new Ordinance until the comprehensive development impact fee study is completed. All development impact fees levied by the City will be reviewed by Council and staff at a later date through this comprehensive study, which will result in an update to the development impact fee schedule. This action is not recommended by staff. The updated impact fees would continue to be subject to deferrals under the existing resolution as well as the updated resolution that is being proposed.
ATTACHMENTS
A - Draft Ordinance establishing the development impact fee deferral program and clarifying eligibility and terms
B - Draft Resolution modifying the development impact fee deferral program.
C - Draft Development Impact Fee Deferral Guidelines
D - Draft Development Impact Fee Deferral Application
E - Draft Deferral Agreement
F - Standard form Loan Deed of Trust
G -Standard form Loan Promissory Note
O ______
ORDINANCE NO. _____ (2024 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 4.56.050 (PAYMENT OF
FEES) OF THE MUNICIPAL CODE TO ESTABLISH A DEVELOPMENT
IMPACT FEE DEFERRAL PROGRAM FOR ELIGIBLE AFFORDABLE
HOUSING PROJECTS. THE PROJECT IS EXEMPT FROM
ENVIRONMENTAL REVIEW (CEQA) (IMPACT FEE DEFERRAL
PROGRAM)
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on November 21, 2000, adopting Council Resolution No. 9131 (2000 Series) for the purpose of waiving city-wide development impact fees for affordable housing units in excess of inclusionary requirements; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on June 5, 2007, adopting Council Resolution No. 9903 (2007 Series), which superseded and replaced Resolution No. 9131 (2000 Series); and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on September 17, 2024, adopting Council Resolution No. XXXX (2024 Series), which superseded and replaced Resolution No. 9903 (2007 Series); and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on September 17, 2024, for the purpose of considering the amendments amendment to Section 4.56.050 (Payment of Fees) of the Municipal Code to implement the Development Impact Fee Deferral Program; and
WHEREAS, the City has identified Housing as a Major City Goal; and WHEREAS, the City’s Housing Element Programs 2.9 and 6.16 supports incentivization of affordable housing incentives; and
WHEREAS, impact fees are an identified barrier to production of affordable housing; and
WHEREAS, impact fees for affordable housing projects have been deferred by the City to help accelerate production of affordable housing; and WHEREAS, the aforementioned Program formalizes a process for applying for and receiving impact fee deferrals; and
WHEREAS, deferral of impact fees structured as a loan owed to the City provides defined terms of repayment and ensures no ultimate loss of revenue to cover the ongoing impacts of the development; and
Ordinance No. ______ (2024 Series) Page 2
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WHEREAS, the City Council finds that the proposed amendment is consistent with the General Plan, and other applicable City goals and policies as amended; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the deferral program’s consistency with the Mitigation Fee Act and the California Constitution, the City’s ongoing need to cover the costs of increased residential development, the input of interested parties, and evaluation and recommendations by staff.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Incorporation of Recitals. The City Council find that the foregoing recitals and staff report presented with this ordinance are true and correct and are incorporated in the ordinance by this reference and adopted as the findings of the City Council.
SECTION 2. Findings. Based upon all the evidence, the City Council makes the following additional findings:
1. The proposed amendments to Section 4.56.050 to implement the Impact Fee Deferral Program will not cause significant health, safety, or welfare concerns since the amendments are consistent with the General Plan and directly implement City goals and polices.
2. The proposed amendments to Section 4.56.050 of the Municipal Code are consistent with the 6th Cycle Housing Element Program 6.18 which states “Actively seek and collaborate with non-profit housing providers to (jointly) apply for three revenue sources each year during the planning period, including State, Federal and private/non-profit sources, and financing mechanisms to financially assist with the development of housing affordable to extremely low, very low and low or moderate income households.”
SECTION 3. Environmental Determination. This Ordinance is exempt from the California Environmental Quality Act (CEQA), because it is not a “project” under Public Resources Code § 21065 and the CEQA Guidelines §15378 in that the impact fee deferral program would not cause either a direct or reasonably foreseeable indirect physical change in the environment. Every development project subject to a development impact fee deferral loan would be required to undergo applicable development review, including CEQA compliance or finding of exemption.
SECTION 4. Section 4.56.050, entitled “Payment of fees” is hereby amended to read as follows:
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A. Except as otherwise provided in Section 66007 of the Government Code, development impact fees shall be paid to the city upon final inspection or the date the certificate of occupancy is issued, whichever occurs first, unless the City requires payment of those fees at an earlier time as authorized by Government Code 66007.
In cases where payment of all or part of the required fee is deferred beyond the earlier date of final inspection or certificate of occupancy, the community development director may require that the applicant, at the applicant’s expense, execute a contract with the city to pay all deferred impact fees in accordance with the provisions of the City’s Impact Fee Deferral Program, as further described in subsection B of this Section and further approved and amended through City Council Resolution.
B. Impact Fee Deferral Program
1. In accordance with the provisions and definitions of the City’s Development Impact Fee Deferral Program Guidelines, an eligible applicant may enter into a development impact fee deferral loan agreement for a qualifying residential development project. The fee deferral agreement shall explicitly provide for the recordation of a lien against the real property on which the approved development project is to be located, which shall be removed upon payment in full of all deferred fees. All costs assessed by the county for the recordation of the documents set forth herein shall be paid by the applicant at the time of execution of the fee deferral agreement. Deferral is at the sole discretion of the City. The Community Development Director will consider the needs of the City and the feasibility of the deferral request on a case-by-case basis. The decision of the Community Development Director (or the Council, if approval is deferred to the City Council by the Community Development Director) on an impact fee deferral application is final and not appealable.
2. The development impact fees eligible for deferral shall be limited to the fees identified in Section 4.56.030. Special district fees, water and wastewater impact fees shall not be eligible for the Impact Fee Deferral Program.
SECTION 5. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city's rules and regulations. It is the city's express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
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SECTION 6. Implementation. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the ____ day of _______, 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ___, 2024, on the following vote:
AYES:
NOES:
ABSENT:
__________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
R ______
RESOLUTION NO. ______ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, SUPERSEDING RESOLUTION NO. 9903 (2007
SERIES) PROVIDING FOR THE DEFERRAL OF CITY-WIDE
DEVELOPMENT IMPACT FEES FOR ELIGIBLE AFFORDABLE
HOUSING PROJECTS. THE PROJECT IS EXEMPT FROM
ENVIRONMENTAL REVIEW (CEQA), AS REPRESENTED IN THE
STAFF REPORT AND ATTACHMENTS DATED SEPTEMBER 17, 2024
WHEREAS, the City’s General Plan requires that the costs of public facilities and services needed for new development shall be borne by new development unless the community chooses to help pay the costs of a certain development to obtain communitywide benefits; and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on November 21, 2000, adopting Council Resolution No. 9131 (2000 Series) for the purpose of waiving city-wide development impact fees for affordable housing units in excess of inclusionary requirements; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on June 5, 2007, adopting Council Resolution No. 9903 (2007 Series), which superseded and replaced Resolution No. 9131 (2000 Series); and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on September 17, 2024, to introduce an ordinance to amend Section 4.56.050 of the Municipal Code to establish a development impact fee deferral program for qualifying affordable housing projects; and
WHEREAS, at said hearing on September 17, 2024, the City Council considered all evidence, including the deferral program’s consistency with the Mitigation Fee Act and the California Constitution, the City’s ongoing need to cover the costs of increased residential development, the input of interested parties, and evaluation and recommendations by staff; and
WHEREAS, fee deferral serves a public purpose because it would incentivize the development of affordable housing within the City by deferring certain up-front costs which can be burdensome and cost-prohibitive for developers of affordable housing and/or benefit the competitive score needed to secure state low-income tax credit financing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows:
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SECTION 1. Environmental Review. This fee deferral program is exempt from the California Environmental Quality Act (CEQA), because it is not a “project” under Public Resources Code § 21065 in that the impact fee deferral program would not cause either a direct or reasonably foreseeable indirect physical change in the environment. Every development project subject to a development impact fee deferral loan would be required to undergo applicable development review, including CEQA compliance or finding of exemption.
SECTION 2.
1. In accordance with Ordinance No. XXXX (2024 Series) and the City’s Affordable Housing Development Impact Fee Deferral Program Guidelines, as modified from time to time, a developer of Affordable Housing projects may apply for a Development Impact Fee Deferral from the City. If the application is approved, the developer will be required to execute a Development Impact Fee Deferral Agreement and a Promissory Note, secured by a Deed of Trust. The Promissory Note and Deed of Trust will be recorded on the property. The Promissory Note shall describe the deferral as a loan on the property for a term of 20 years and shall account for an annual simple fixed interest rate of three percent, to be paid in full at the end of the term. The amount of deferred fees (the loan amount) will be calculated according to the City’s Fee Schedule in effect at the time the fees would otherwise become due, or as otherwise determined by the City, and shall be reflected in the Promissory Note.
2. The Community Development Director is authorized to approve and execute any eligible fee deferral under this Program. The Community Development Director may, at their discretion, refer approval of an impact fee deferral application to the City Council on an as-needed basis or concurrently with Affordable Housing Fund (AHF) awards.
3. The fee deferral period for any approved development project is twenty (20) years from the date of final occupancy for the project, with no payments required during the deferral period. Prior to or at the end of the deferral period, the impact fees and associated interest must be repaid in full in a single payment.
4. An annual simple fixed interest rate of three percent (3%) shall be paid in full at the end of the term. Interest shall accrue starting at the commencement of the deferral period for an approved development project.
5. The impact fee deferral plus any accrued interest may be paid at any time prior to the end of the deferral period without penalty. An early payment in the full amount plus interest would remove any loan contingencies.
6. Upon full repayment of the loan, the City shall cooperate with the applicant in recording a notice of cancellation of the lien.
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SECTION 3. “Affordable housing” means housing which can only be purchased or rented by a household with extremely low, very low-, low-, or moderate-income, as described in the City’s Below Market Rate Housing Standards. Eligible Affordable Housing projects are those as defined in the City’s Affordable Housing Development Impact Fee Deferral Program Guidelines, as modified from time to time.
SECTION 4. Water and wastewater development impact fees shall not be eligible for deferral under this Resolution or the adopted Affordable Housing Development Impact Fee Deferral Program Guidelines.
SECTION 5. This deferral only applies to City-wide development impact fees; it does not apply to fees, assessments, or special taxes for infrastructure improvements applicable to special benefit areas.
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SECTION 6. This Resolution supersedes and replaces Resolution No. 9903 (2007 Series) adopted by this Council on June 5, 2007. This Resolution shall become effective thirty (30) days after final passage of Ordinance No. XXXX (2024 Series.) Upon motion by______________, seconded by ______________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of _________ 2024. ___________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
DEVELOPMENT IMPACT FEE DEFERRAL
PROGRAM GUIDELINES
PROGRAM OVERVIEW
The Impact Fee Deferral Program (“Program”) is designed to encourage the construction of qualifying residential development projects within the City of San Luis Obispo (the “City”) that further the City’s housing goals and strategies. The Program allows for the deferral of certain development impact fees that would otherwise be due and payable at the time of obtaining a building permit for an approved development project for a period of seventeen years with interest.
Definitions
“Applicant” means the owner or owners of record of the real property with an approved development project for which the deferral of certain development impact fees is sought pursuant to this Program.
“Approved development project” means a project that has received any required discretionary action by the City (including projects that are exempt from discretionary review under Municipal Code Section 17.106.020) and found to be in compliance with all environmental requirements prior to issuance of a building permit.
“Eligible Affordable Housing project” means an approved development project under this Program for which the City has approved the deferral of certain development impact fees. See table below for eligible projects.
PROGRAM GUIDELINES
Approval Authority
The Community Development Director has the authority to approve any eligible fee deferral under this Program. The Community Development Director has authority to execute any documents necessary to enter into a fee deferral agreement with the Applicant.
Application and Approval Process
An applicant may file an application with the City for a fee deferral (Exhibit A). The Community Development Director may, in their sole discretion, approve or deny a fee deferral application, or defer approval of the application to the City Council. A fee deferral granted under this Program shall be acknowledged by a Development Impact Fee Deferral Agreement (Exhibit B), a Deed of Trust (Exhibit C), and Promissory Note (Exhibit D) to ensure the security for the repayment of deferred fees.
The following requirements must be satisfied prior to the execution and recordation of a Development Impact Fee Deferral Agreement:
1) Submittal to the City of a completed fee deferral application; and 2) Approval of the fee deferral application; and
Development Impact Fee Deferral Program Guidelines
3) Payment of the administration fees (in accordance with the City’s Comprehensive Fee Schedule) and/or recordation costs, if applicable.
Following execution of a Fee Deferral Agreement, and prior to issuance of certificate(s) of occupancy, Applicant/Developer will be required to execute a Promissory Note for the amount of the deferred impact fees (calculated according to the fee schedule in effect at that time), secured by a Deed of Trust.
The approval of a fee deferral pursuant to this Program for any development project shall not be transferable to another project regardless of whether the applicant is the same for both projects and whether the other project is also an eligible project.
Eligible Projects
Housing projects that provide units in
excess of the City’s Inclusionary
Housing Requirements (Municipal Code
Chapter 17.138), to be rented to low,
very low, extremely low or acutely low -
income households.
Housing projects that are restricted to
lower, very low, extremely low or acutely
low -income households and that are
built, owned and managed by a
government agency or a nonprofit
housing organization.
Eligible Impact Fees
Fire impact fee; and
Parkland in-lieu fee; and
Parks and recreation development
impact fee; and
Police impact fee; and
Transportation impact fees (citywide
and designated subareas).
Non-Eligible Fees
Special District Fees
Water and wastewater impact fees
(these impact fees are established in
order to pay for the capital costs of
public facilities reasonably related to the
needs of new development in the city).
Repayment Terms
The fee deferral period for any approved development project is twenty (20) years from the date of final inspection/certificate of occupancy, with no payments required during the deferral period.
Prior to or at the end of the deferral period, the impact fees and associated interest must be repaid in full in a single payment.
The deferred amount (loan amount) will be calculated according to the fee schedule in effect at the time of final inspection/certificate of occupancy for the project. An annual simple fixed interest rate of three percent (3%) shall be paid in full at the end of the term. Interest shall accrue starting at the commencement of the deferral period for an approved development project.
The impact fee deferral plus any accrued interest may be paid at any time prior to the end of the deferral period. An early payment in the full amount plus interest will remove any loan contingencies.
GENERAL CONDITIONS
Development Impact Fee Deferral Program Guidelines
All applications for deferral under the Program shall be considered on a case-by-case basis.
Approval is not guaranteed, and the City has complete and sole discretion to approve or deny any application for deferral, and to provide full or partial deferral, or none at all. All approval decisions shall be final, and the applicant shall have no right of appeal from any decision on any deferral application.
The time from completed application to a deferral decision, evidenced by a deferral agreement, will vary depending on the quality and completeness of the application, the responsiveness of the applicant, and the workload of City staff, among other factors.
Applicants shall comply with all laws with respect to the deferral of fees under the Program. The City makes no representation as to whether the applicant’s deferral of fees would subject applicant’s activities or project to the state prevailing wage laws, as set forth at Labor Code sections 1720, et seq, or to any building regulations or standards applicable to public housing, as that term is defined in the respective regulation(s) and/or standard(s). Applicants shall perform all work in compliance with all applicable laws including, without limitation, and as applicable, state prevailing wage laws pursuant to Labor Code sections 1720, et seq., and building regulations or standards applicable to public housing. In the event an applicant fails to comply with any applicable law, the applicant shall be liable for the payment of all penalties, wages and/or damages resulting therefrom, and shall defend, indemnify, and hold the City harmless for any violations or alleged violations of law. These provisions will be included in any impact fee deferral agreement. Applicant is encouraged to seek legal advice through legal counsel of their choosing for further guidance.
Application For Development Impact Fee Deferral Program Eligibility for this program is defined in the City’s Development Impact Fee Deferral Program Guidelines. The following requirements must be satisfied prior to the execution of a fee deferral agreement:
1. Submittal to the City of a completed fee deferral application; and
2. Approval of the fee deferral application by the Community Development Director; and
3. Provision of adequate security securing the repayment through the recordation of a Fee Deferral Agreement; and
4. Payment of the administration fees (in accordance with the City’s Comprehensive Fee Schedule) and/or recordation costs, if applicable
In no event shall a certificate of occupancy for an approved eligible project be issued until either of the following occurs:
a. Payment of all applicable impact fees due; or
b. Execution of a fee deferral agreement pursuant this Program
PROJECT/PERMIT
Location Of Project (Address): Click or tap here to enter text. Project Description:
Click or tap here to enter text.
Subdivision Name: Click or tap here to enter text.
Lot Number: Click or tap here to enter text.
Assessor’s Parcel Number(s): Click or tap here to enter text.
REAL PROPERTY OWNER
Property Owner Name
(Signature Required Below)
Enter text here.
Cell Home Business Fax
Enter text here.
Cell Home Business Fax
Enter text here.
Address, City, State, Zip: Click or tap here to enter text.
Email Address: Click or tap here to enter text.
APPLICANT
Applicant Name
(Signature Required Below)
Enter text here.
Cell Home Business Fax
Enter text here.
Cell Home Business Fax
Enter text here.
Applicant Address, City, State, Zip: Click or tap here to enter text.
Applicant Representative Name
Enter text here.
Cell Home Business Fax
Enter text here.
Cell Home Business Fax
Enter text here.
Applicant Representative Address, City, State, Zip: Click or tap here to enter text.
DOCUMENTS
Required Documents For Signatures Received
☐ = ☐
☐ Assessor’s parcel number/address/subdivision and lot listed and verified (legal description obtained from title company ☐
☐ Vesting deed/grant deed verifying ownership attached ☐ ☐ Estimated impact fees listed with pending receipts attached (***you must obtain the most current versions of these receipts from he Building Department***)
☐
ESTIMATED IMPACT FEE INFORMATION *Do Not Write Below This Line (To Be Completed By Department Staff)*
NOTE: The actual amount of fees deferred will be calculated pursuant to the Fee Schedule in effect at the time the fees are due, and applicant will be required to execute a promissory note and deed of trust for that amount at that time.
Type of Fee Amount
General Government Impact Fee $ Click or tap here to enter text.
Fire Impact Fee $ Click or tap here to enter text.
Parkland In-Lieu Fee $ Click or tap here to enter text.
Parks & Recreation Impact Development Fee $ Click or tap here to enter text.
Police Impact Fee $ Click or tap here to enter text.
Transportation Impact Fee $ Click or tap here to enter text.
IMPACT FEE SECTION STAFF APPROVAL:
Signature (Print Name): Click or tap here to enter text.
`RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401-3249
Attn: Community Development Director
No fee for recording pursuant to (Space above for Recorder's Use) Government Code Section 27383
The undersigned declare that there is no documentary
transfer tax on this matter.
IMPACT FEE DEFERRAL AGREEMENT
(Affordable Housing Impact Fee Deferral Program)
This IMPACT FEE DEFERRAL AGREEMENT ("Agreement") is made and entered into on this ______ day of __________________, 20__, by and between the City of San Luis Obispo, a California charter city and municipal corporation (the "City"), and [enter Owner's name and entity type] (the "Owner"), collectively referred to as the "Parties."
RECITALS
A. Owner is the owner of certain real property located at [enter street address] in the City, which is more particularly described in attached Exhibit A incorporated herein by this reference (the "Property").
B. On [enter date], the City [enter City approval body] adopted [enter entitlement name and number] (the "Project Approvals") to approve Owner's construction of [enter number of units] residential units on the Property (the "Project").
C. The City collects development impact fees in accordance with Chapter 4.56 of the San Luis Obispo Municipal Code and pursuant to the Comprehensive Fee Schedule established by the City.
D. The Project is eligible for deferral of impact fees under Section 4.56.050 of the San Luis Obispo Municipal Code and the City’s Development Impact Fee Deferral Program Guidelines because [basis for eligibility; units in excess of Inclusionary Housing Ordinance req, 100% affordable and developed by nonprofit]
E. On [date], the City approved Owner’s Application for Development Impact Fee Deferral Program as to the Project.
AGREEMENT
NOW, THEREFORE, the Parties agree and acknowledge that the above recitals are true and accurate, and are incorporated into this Agreement by this reference, and the Parties mutually acknowledge and agree as follows:
1. Owner is electing to participate in the Impact Fee Deferral Program.
2. The City has agreed to issue a loan to Owner in the form of deferred payment of certain development impact fees associated with the Project.
3. Owner shall execute a Promissory Note, secured by a Deed of Trust, prior to the City’s issuance of certificate(s) of occupancy for the Project. The Promissory Note and Deed of Trust shall be recorded against the Property to secure repayment of the loan.
4. An estimated breakdown of the development impact fees to be deferred (the “loan amount”) is found in Exhibit A. The actual loan amount will be calculated according to the fee schedule in effect at the time of execution of the Promissory Note.
ENFORCEMENT
Default. Failure of the Owner to satisfy any of Owner's obligations under the terms of this Agreement, including without limitation execution of a Promissory Note and Deed of Trust as discussed herein, within ninety (90) days after the delivery of a notice of default from the City will constitute a default under this Agreement ("Default"), and the loan amount shall immediately be due and payable. In addition, the City may exercise any and all remedies available to it under the Municipal Code or other any other provision of law or equity, including but not limited to:
withholding, conditioning, suspending or revoking any approvals for the Project, including without limitation final inspections for occupancy and/or the issuance of any certificates of occupancy;
instituting against the Owner, or other parties, a civil action for declaratory relief, injunction or any other equitable relief, or relief at law, including without limitation an action to rescind a transaction and/or to require repayment of any funds received in connection with such a violation;
where one or more persons have received financial benefit as a result of violation of this Agreement, the City may assess, and institute legal action to recover as necessary, a penalty in any amount up to and including the amount of financial benefit received, in addition to recovery of the benefit received.
Protest. Owner acknowledges and agrees that the Project Approvals referenced in the Recitals, which are incorporated herein, provided adequate and proper notice pursuant to Government Code Section 66020 of Owner's right to protest any requirements for fees, dedications, reservations, and other exactions as may be included in this Agreement, that no protest in compliance with Section 66020 was made within ninety (90) days of the date that notice was given, and that the period has expired in which Owner may protest any and all fees, dedications, reservations, and other exactions as may be included in this Agreement.
Attorney's Fees and Costs. If either Party takes or commences any actions or proceedings, including litigation or arbitration, against the other by reason of any breach or claimed breach of any provision of, or in any way connected with, this Agreement, or seeks a judicial declaration of rights under this Agreement, the Party prevailing in such action or proceeding shall be entitled to recover from the other Party the prevailing Party's reasonable attorney's fees and costs, including, but not limited to, all expert witness fees, other witness fees and associated expenses, whether or not the proceeding or action proceeds to judgment.
GENERAL PROVISIONS
Appointment of Other Agencies. At its sole discretion, the City may designate, appoint or contract with any other public agency, for-profit or non-profit organization to perform some or all of the City's obligations under this Agreement.
Records. The Owner shall retain all records related to compliance with obligations under this Agreement for a period not less than five (5) years from the date of origination of such records, and make them available to City employees or others designated by the City for inspection and copying on five (5) business days' written notice. The City shall be entitled to monitor compliance with this Agreement, and the Owner shall cooperate with City monitoring, including obtaining Eligible Household verification upon request of the City.
Compliance With Law. The Owner 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 this Agreement, including, without limitation, and as applicable, state prevailing wage laws pursuant to Labor Code sections 1720, et seq., and building regulations or standards applicable to public housing, as that term is defined in the respective regulation(s) and/or standard(s). The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Owner to comply with this Section.
Hold Harmless. Owner will indemnify and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all risk of loss and all damage (including expense and attorney's fees) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to the Project, the Affordable Units, or Owner's performance or
non-performance under this Agreement, including but not limited to claims pursuant to California Labor Code Section 1720 et seq., and to any building regulations or standards applicable to public housing, as that term is defined in the respective regulation(s) and/or standard(s) and shall protect and defend Indemnitees, and any of them with respect thereto, except to the extent arising from the proven gross negligence or willful misconduct of the City. The provisions of this Section shall survive expiration or other termination of this Agreement or any release of part or all of the Property from the burdens of this Agreement, and the provisions of this Section shall remain in full force and effect.
Notices. All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested, to the Party to receive such notice at the addressed set forth below:
TO THE CITY:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401-3249
Attn: Community Development Director
WITH COPY TO:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: City Attorney
TO THE OWNER [enter in Owner’s Information; insert more lines as necessary]:
______________________
______________________
______________________
______________________
Attn: _________________
Any notice shall be deemed delivered on the first business day that delivery is attempted or upon receipt, whichever is sooner. As used herein, "business day" means any day other than a Saturday, Sunday, or any state or federal holiday on which financial institutions in San Luis Obispo County are authorized or required to close for observance thereof. Any Party may change the address to which notices are to be sent by notifying the other Parties of the new address, in the manner set forth above.
Integrated Agreement. This Agreement sets forth the full and entire understanding of the Parties regarding the matter set forth herein. Any other prior or existing understandings or agreements by the Parties, whether formal or informal, regarding any matters addressed within this Agreement are hereby superseded or terminated in their entirety.
Each Party's Role in Drafting the Agreement. Each Party to this Agreement has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and negotiate revisions to the Agreement. Accordingly, neither Party shall rely upon Civil Code Section 1654 in order to interpret any uncertainty in the meaning of the Agreement.
Amendment of Agreement. No changes, amendments, or alterations to this Agreement shall be effective unless in writing and signed by all Parties hereto. Major amendments to this Agreement, shall be subject to the review and approval of the decision-making body which approved the Project. Minor amendments to this Agreement may be approved by the Director.
Upon approval, a new Agreement containing the amendments shall be executed and recorded.
Applicable Law. This Agreement shall be governed by California law. Venue shall be the County of San Luis Obispo.
Waivers. Any waiver by the City of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to take action on any breach or default of Owner or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Owner to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by Owner shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.
Title of Parts and Sections. Any titles of the sections, subsections, or subparagraphs of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of the Agreement's provisions.
Multiple Originals; Counterpart. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
Recording of Agreement. This Agreement shall be recorded against the Property in the Official Records of the County of San Luis Obispo.
Binding on Successors. Should Owner transfer any or all of its obligations under the Promissory Note, to be executed by Owner for the loan contemplated by this Agreement, to the extent permitted by and in compliance with the terms of the Deed of Trust which secures said Note, this Agreement shall be binding upon any such successor, assignee, or transferee.
Severability. In the event any limitation, condition, restriction, covenant, or provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written.
OWNER:
__________________, a ______________
By:________________________________
Its:________________________________
CITY:
City of San Luis Obispo, a California charter city and municipal corporation By: ________________________
Timothea (Timmi) Tway, Community Development Director
APPROVED AS TO FORM AND LEGAL EFFECT:
By: _______________________
J. Christine Dietrick, City Attorney
EXHIBIT A
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401-3249
Attn: Community Development Director
No fee for recording pursuant to (Space above for Recorder's Use) Government Code Section 27383
The undersigned declare that there is no documentary
transfer tax on this matter.
DEED OF TRUST, DEED OF TRUST COVENANTS, ASSIGNMENT OF
RENTS, SECURITY AGREEMENT
AND FIXTURE FILING
THIS DEED OF TRUST, DEED OF TRUST COVENANTS, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this "Deed of Trust") is made as of this [enter date] day of [enter month], 20__, between [enter name of Trustor], a California limited partnership (“Trustor”), the lessee of the real property described herein below, whose address is:
[enter address] and [enter name of title company] (“Trustee”) and the CITY OF SAN LUIS OBISPO, a municipal corporation, whose address is 990 Palm Street, San Luis Obispo, California 93401 ("Beneficiary").
WHEREAS, Trustor desires to develop a [ ]-unit apartment complex (“Project”) on its leasehold interest in certain real property located in the City of San Luis Obispo, State of California, which is further described in Exhibit A attached hereto and incorporated herein by this reference (“the Real Property”).
WHEREAS, Beneficiary and Trustor desire to ensure that the Real Property remain affordable to extremely-low, very-low and low-income persons for a period of not less than 55 years following the Borrower’s occupancy of the completed project pursuant to the Affordable Housing Agreement entered between Trustor and Beneficiary on [date] and Promissory Note executed by Trustor on [date.]
WHEREAS, to implement the Project, Beneficiary has agreed to make a loan to Trustor in the amount of $[enter amount] (the “Loan”), for the purpose of deferring development impact fee costs associated with development of the Real Property related to the Project, and Trustor has delivered that certain Promissory Note (“Note”) in favor of Beneficiary on the even date hereof.
WHEREAS, the Affordable Housing Agreement and Note impose certain restrictions on the sale or transfer of the Real Property.
NOW, THEREFORE, THIS DEED OF TRUST WITNESSETH:
Trustor, in consideration of the indebtedness referred to below and the trust herein created, irrevocably grants, conveys, transfers and assigns to Trustee, in trust, with the power of sale and
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2 right of entry and possession, all of Trustor's estate, right, title and interest in, to and under the Real Property;
TOGETHER WITH all structures and improvements now existing or hereafter erected on the Real Property, all easements, rights and appurtenances thereto or used in connection therewith, all rents, royalties, issues, profits, revenues, income and other benefits thereof or arising from the use or enjoyment of all or any portion thereof (subject, however, to the right, power and authority given herein to Trustor to collect and apply such rents, royalties, issues, profits, revenues, income and other benefits prior to an Event of Default hereunder), all interests in and rights, royalties and profits in connection with all minerals, oil and gas and other hydrocarbon substances thereon or therein, development rights or credits, air rights, water, water rights (whether riparian, appropriative or otherwise and whether or not appurtenant) and water stock, all intangible property and rights relating to the Real Property or the operation thereof or used in connection therewith, including, without limitation, trade names and trademarks and all furniture and fixtures, now or hereafter located in, or on, or attached or affixed to, or used or intended to be used in connection with, the Real Property, including, but without limitation, all heating, lighting, laundry, incinerating, gas, electric and power equipment, pipes, plumbing, fire prevention and fire extinguishing, refrigerating, ventilating and communication apparatus, air cooling and air conditioning apparatus, shades, awnings, blinds, curtains, drapes, attached floor coverings, including rugs and carpeting and other installed appliances, attached cabinets, trees, plants and other items of landscaping, shall, to the fullest extent permitted by law and for the purposes of this Deed of Trust, be deemed to be part and parcel of, and appropriated to the use of, the Real Property and, whether or not affixed or annexed thereto, be deemed conclusively to be real property and conveyed by this Deed of Trust, and Trustor agrees to execute and deliver, from time to time, such further instruments and documents as may be required by Beneficiary to confirm the lien of this Deed of Trust on any of the foregoing;
TOGETHER WITH all of the estate, interest, right, title, other claim or demand which Trustor now has or may hereafter acquire in any and all awards made for the taking by eminent domain, or by any proceeding or purchase in lieu thereof, of the whole or any part of the Property (as hereinafter defined), including, without limitation, any awards resulting from a change of grade of streets and awards for severance damages;
TOGETHER WITH all of the estate, interest, right, title and other claim or demand which Trustor now has or may hereafter acquire with respect to the unearned premiums accrued, accruing or to accrue and the proceeds of insurance in effect with respect to all or any part of the foregoing. All of the foregoing property referred to in this Deed of Trust, together with the Real Property, is herein referred to as the "Property."
ARTICLE 1. PURPOSE AND CONSIDERATION. This Deed of Trust is established for the purpose of securing, in such order of priority as Beneficiary may elect:
(a) The repayment of the indebtedness evidenced by the Promissory Note Secured by Deed of Trust (the "Promissory Note"), of even date herewith, executed by Trustor as Maker, payable to the order of Beneficiary, in the initial principal amount of [enter principal amount in words] ($XXX,XXX) ("Principal"), and any and all late charges, interest costs
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3 or fees required thereunder, and all extensions, renewals, modifications, amendments and replacements thereof.
(b) The payment of all other sums which may be advanced by or otherwise be due to Trustee or Beneficiary under any provision of this Deed of Trust with interest (if any) thereon at the rate provided herein or therein.
(c) Performance of all covenants of Trustor made in this Deed of Trust. (d) Performance of all covenants of Trustor as set forth in the Promissory Note. (e) Performance of all covenants of Trustor as set forth in the Affordable Housing Agreement .
(f) Performance of all covenants of Trustor as set forth in the Development Impact Fee Deferral Agreement.
ARTICLE 2. DEED COVENANTS. To protect the security of this Deed of Trust, Trustor and Trustee hereby covenant and agree as follows:
SECTION 2.01. Restrictions on Use and Occupancy. The Real Property shall be used solely for low, very-low, and/or extremely-low income rental housing purposes.
SECTION 2.02. Term of Use and Occupancy Restrictions. Trustor agrees that the above restrictions to the use and occupancy of the Real Property shall remain in effect for a period of fifty-five (55) years from the date of Borrower’s occupancy of the completed project.
SECTION 2.03. Covenants Binding. These affordability requirements shall be covenants running with the land as defined in California Civil Code Section 1460, and shall apply to the Real Property as further described in Exhibit A. Pursuant to Civil Code Section 1468, which governs such covenants, the provisions of this Deed of Trust shall be binding upon all parties having any right, title, or interest in any of the Real Property, or any portion thereof, and on their heirs, successors in interest and assigns for a period of 55 years from the date of Borrower’s occupancy of the completed project. The parties agree that all future deeds or transfers of interest regarding the Real Property shall show the restrictions of this Agreement for as long as the Agreement is in effect.
SECTION 2.04. Performance of Obligations Secured. Trustor shall promptly pay when due the indebtedness evidences by the Note and any late charges, costs and/or fees provided for in the Note and shall further perform fully and in a timely manner all other obligations of Trustor contained herein or in the Note.
ARTICLE 3 – INSURANCE REQUIREMENTS
SECTION 3.01. Trustor shall keep the Property and all improvements thereon insured against loss or damage by fire with extended all-risk coverage clauses, including vandalism and malicious
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4 mischief clauses, in an amount not less than one hundred percent (100%) of the full replacement cost of such improvements with a company or companies and in such form and with such endorsements as may be approved or required by Beneficiary.
SECTION 3.02. Trustor shall also maintain in full force and effect a policy of homeowners' general liability insurance insuring Trustor against liability for bodily injury, property damage and personal injury arising out of the operation, use or occupancy of the Property. The initial amount of such insurance shall be One Hundred Thousand Dollars ($100,000.00) per occurrence and not in the aggregate and shall be subject to periodic increase based upon increased liability awards or the reasonable recommendation of Trustor's professional insurance advisor. Trustor shall name Beneficiary as an additional insured under such policy. Such insurance shall be primary with respect to any insurance maintained by Beneficiary and shall not call on Beneficiary's insurance for contributions.
SECTION 3.03. Trustor shall pay all premiums for the insurance policies required to be maintained under this Deed of Trust within fifteen (15) days after Trustor's receipt of a copy of the premium statement or other evidence of the amount due. At least thirty (30) days prior to the expiration of such policy, Trustor shall deliver to Beneficiary a renewal of such policy.
SECTION 3.04. Any insurance which Trustor is required to maintain under this Deed of Trust shall include a provision requiring that the insurance carrier give Beneficiary not less than thirty (30) days written notice prior to any cancellation or modification of such coverage. If Trustor (i) fails to deliver any policy or renewal to Beneficiary required under this Deed of Trust within the prescribed time period or (ii) if any such policy is canceled or modified to reduce the amount or type of coverage without Beneficiary's consent and no substituted comparable coverage is obtained by Trustor prior to such cancellation or modification, Beneficiary may obtain such insurance. In such case, Trustor shall reimburse Beneficiary for the cost of such insurance within fifteen (15) days after receipt of a statement that indicates the cost of such insurance and upon proof that Beneficiary has paid said statement.
SECTION 3.05. Trustor shall maintain all insurance required under this Deed of Trust with companies holding a "general policy rating" of A-8 or better, as set forth in the most current issue of "Best Key Rating Guide." Trustor acknowledges that the insurance described in this Section is for the primary benefit of Beneficiary. Beneficiary makes no representation as to the adequacy of such insurance to protect Trustor's or Beneficiary's interests. Therefore, Trustor shall obtain any additional property or liability insurance that Trustor deems necessary to protect Beneficiary and Trustor, in the exercise of reasonable judgment.
SECTION 3.06. Notwithstanding anything to the contrary contained herein, Trustor's obligation to carry the insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Trustor; provided, however, that Beneficiary shall be named as an additional insured thereunder and that the coverage afforded Beneficiary will not be reduced or diminished by reason of the use of such blanket policy of insurance and provided further that the requirements set forth herein are otherwise satisfied.
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5 SECTION 3.07. All of the above-mentioned insurance policies or certificates of insurance must be satisfactory to Beneficiary. Trustor’s compliance with each of the requirements in Sections 3.01 through 3.06 shall be considered material terms of this Deed of Trust. Beneficiary shall not by the fact of approving, disapproving, accepting, preventing, obtaining or failing to obtain any insurance, incur any liability for or with respect to the amount of insurance carried, the form or legal sufficiency of insurance contracts, insolvency of insurance companies or payment or defense of lawsuits and Trustor hereby expressly assumes full responsibility therefor and all liability, if any, with respect thereto.
SECTION 3.08. Condemnation and Insurance Proceeds.
SUBSECTION 3.08(a). Any award of damages in connection with any taking or condemnation, or for injury to the Property by reason of public use, or for damages for private trespass or entry onto the Property is hereby assigned and shall be paid to Beneficiary as further security for all obligations secured by this Deed of Trust. Upon receipt of such proceeds, Beneficiary may hold the proceeds as further security or apply or release them in the same manner and with the same effect as provided in this Deed of Trust for the disposition of proceeds of fire or other insurance.
SUBSECTION 3.08(b). Any insurance proceeds or awards in connection with any casualty or damage or injury to the Property covered by insurance ("Insurance Proceeds") are hereby assigned to Beneficiary to be held and applied by Beneficiary in the manner hereinafter provided.
Beneficiary may, at its option, and at its own expense, appear in and prosecute in its own name any action or proceeding to enforce any cause of action for such Insurance Proceeds. All Insurance Proceeds shall be applied by Beneficiary upon any indebtedness secured by this Deed of Trust and in any order determined by Beneficiary or, at the option of Beneficiary, the entire amount so collected or any part of that amount may be released to Trustor. This application or release shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such notice.
SUBSECTION 3.08(c). Trustor, immediately upon obtaining knowledge of the institution of any proceedings relating to condemnation or other taking of or damage or injury to the Property or any portion thereof, or knowledge of any casualty damage to the Property or damage in any other manner, shall immediately notify Beneficiary in writing. Beneficiary may participate, at its own expense, in any such proceedings and may join Trustor in adjusting any loss covered by insurance.
ARTICLE 4. TAXES, LIENS AND OTHER ITEMS. Trustor shall pay, when due, all taxes, bonds, assessments, fees, liens (including prior trust deed liens), charges, fines, impositions and any and all other items which are attributable to or affect the Property and which may attain a priority over this Deed of Trust or the indebtedness or evidence of indebtedness secured hereby, by making payment prior to delinquency directly to the payee thereof. Trustor may initiate proceedings to contest any such taxes, bonds, assessments, fees, liens, charges, fines, impositions or other items so long as Trustor takes steps to ensure that Beneficiary's security is not threatened in any manner. Trustor shall pay all costs of the proceedings, including any costs or fees incurred by Beneficiary. Upon the final determination of any proceeding or contest, Trustor shall immediately pay the amounts due, together with all costs, charges, interest and penalties incidental to the proceedings.
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6 ARTICLE 5. PRESERVATION AND MAINTENANCE OF PROPERTY. Trustor shall keep the Property and every part thereof in good condition and repair, ordinary wear and tear excepted, and shall not permit or commit any waste, impairment or deterioration of the Property nor commit, suffer or permit any act upon or use of the Property in violation of law or applicable order of any governmental authority, whether now existing or hereafter enacted and whether foreseen or unforeseen, including, without limitation, violation of any zoning, building or environmental protection statutes, ordinances, regulations, orders and restrictions or in violation of any covenants, conditions or restrictions affecting the Property or bring or keep any article upon any of the Property or cause or permit any condition to exist thereon which would be prohibited by or could invalidate any insurance coverage maintained or required hereunder to be maintained by Trustor on or with respect to any part of the Property and further shall do all other acts which from the character or use of the Property may be reasonably necessary to protect the security hereof, the specific enumerations herein not excluding the general. Trustor shall completely restore and repair promptly and in a good and workmanlike manner any building, structure or improvement thereon which may be damaged or destroyed and pay, when due, all claims for labor performed and materials furnished therefor, whether or not insurance or other proceeds are available to cover, in whole or in part, the costs of any such restoration or repair. Trustor shall notify Beneficiary immediately in writing of any damage to the Property in excess of Ten Thousand Dollars ($10,000.00).
ARTICLE 6. PROTECTION OF SECURITY: COSTS AND EXPENSES. Trustor shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee and shall pay all reasonable costs and expenses, including, without limitation, costs of evidence of title and reasonable attorney's fees, in any such action or proceeding in which Beneficiary or Trustee may appear and in any suit brought by Beneficiary to foreclose this Deed of Trust or to enforce or establish any other rights or remedies of Beneficiary hereunder. If Trustor fails to perform any of the covenants or agreements in this Deed of Trust or if any action or proceeding is commenced which affects Beneficiary's interest in the Property or any part thereof, including, but not limited to, eminent domain, code enforcement or proceedings of any nature whatsoever under any federal or state law, whether now existing or hereafter enacted or amended, relating to bankruptcy, insolvency, arrangement, reorganization or other form of debtor relief, or to a decedent, then Beneficiary or Trustee may, but without obligation to do so and upon ten (10) days' prior written notice to and demand upon Trustor (unless a shorter notice period is necessary to protect Beneficiary's interest in the security hereof, in which case only reasonable notice and demand under the circumstances shall be required) and without releasing Trustor from any obligation hereunder, make such appearances, disburse such sums and take such action as Beneficiary or Trustee deems necessary or appropriate to protect Beneficiary's interest, including, but not limited to, disbursement of reasonable attorney's fees, entry upon the Property to make repairs or otherwise protect the security hereof, and payment, purchase, contest or compromise of any encumbrance, charge or lien which in the judgment of either Beneficiary or Trustee appear to be prior or superior hereto. Trustor further agrees to pay all reasonable expenses of Beneficiary (including fees and disbursements of counsel) reasonably related to the protection of the rights of Beneficiary hereunder, and enforcement or collection of payment of the Promissory Note, whether by judicial or non-judicial proceedings, or in connection with any bankruptcy, insolvency, arrangement, reorganization or other debtor relief proceeding of Trustor, or otherwise.
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7 Beneficiary shall give Trustor ten (10) days' prior written notice before disbursing any amounts pursuant to this Article. Any amounts disbursed by Beneficiary or Trustee pursuant to this Section shall be additional indebtedness of Trustor secured by this Deed of Trust as of the date of disbursement. All such amounts shall be payable by Trustor immediately without demand. Nothing contained herein shall be construed to require Beneficiary or Trustee to incur any expense, make any appearance or take any other action.
ARTICLE 7. ENFORCEMENT.
Acknowledgement of Enforceability. Trustor represents, warrants, covenants and agrees that it has a leasehold interest in the Real Property and that it has good right and lawful authority to encumber the same as provided herein; that the Real Property is free from any and all liens and encumbrances excepting only such as have been approved by Beneficiary and that Trustor warrants and will defend the title to the Property against all claims and demands whatsoever not specifically excepted herein (and except for claims and demands arising from acts or omissions of Beneficiary or any predecessor-in-interest to Beneficiary not previously disclosed to Trustor), and Trustor will execute, acknowledge and deliver all and every such further assurances unto Beneficiary of the title to the Property hereby conveyed and intended so to be or that Trustor may be or shall become hereinafter bound so to do. Trustor covenants and warrants that the Promissory Note and this Deed of Trust are valid and enforceable obligations of Trustor in accordance with the terms thereof and hereof; and that this Deed of Trust does not, nor does the Promissory Note, nor does the performance or observance by Trustor of any of the matters or things in the Promissory Note or this Deed of Trust, contravene any covenant in any indenture or agreement affecting Trustor.
ARTICLE 8. EVENTS OF DEFAULT. Each of the following shall constitute an event of default ("Event of Default") hereunder (including, if Trustor and Trustee consists of more than one person or entity, the occurrence of any of such events with respect to any one or more of such persons or entities):
SECTION 8.01. Breach of Covenants. Default by Trustor in the performance of any of the material covenants or agreements of Trustor contained herein, in the Promissory Note, in the Affordable Housing Agreement, or any other note or instrument, trust deed or other obligation of Trustor relating to the Property secured by any part of or all of the Property, whether junior or senior to this Deed of Trust. Unless otherwise provided in this Deed of Trust, any default or failure to perform any covenant under this Deed of Trust shall not be an Event of Default if it is cured within thirty (30) days after written notice thereof given by the Beneficiary, provided, however, that if such failure to perform shall not be reasonably susceptible of cure within such 30-day period, such failure shall not constitute an Event of Default if Trustor shall commence to cure such failure within such 30-day period and diligently prosecute such cure to completion; provided, however, any such cure shall be completed within one hundred and twenty (120) days from the date of such written notice.
SECTION 8.02. Appointment of Trustee. The appointment pursuant to an order of a court of competent jurisdiction, of a trustee, receiver or liquidator of the Property or any part thereof, or of Trustor, or any termination or voluntary suspension of the transaction of business of Trustor, or any attachment, execution or other judicial seizure of all or any substantial portion of Trustor's
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8 assets; provided, however, that if such attachment, execution or seizure is involuntary, Trustor shall not be deemed in default unless the same is not discharged within ninety (90) days.
SECTION 8.03. Bankruptcy Filing. The filing by or against Trustor of a petition in bankruptcy or for an arrangement or for reorganization or for other form of debtor relief pursuant to the federal Bankruptcy Act, as the same may be amended or replaced from time to time, or any other law, federal or state, whether now existing or hereafter amended or enacted relating to insolvency or debtor relief (except that in the case of a filing against Trustor, an Event of Default shall not exist unless Trustor fails to have the proceeding discharged within ninety (90) days after such filing), or the adjudication of Trustor as a bankrupt or an insolvent by a decree of a court of competent jurisdiction, or the making of an assignment for the benefit of creditors, or the admission by Trustor in writing of its inability to pay its debts generally as they become due, or the giving of consent by Trustor to the appointment of a receiver or receivers of all or substantially all of its property.
SECTION 8.04. Misrepresentations. Any representation or disclosure made to Beneficiary by Trustor as an inducement to the making of the Loan evidenced by the Promissory Note that proves to be false or misleading in any material respect as of the time the same was made, whether or not any such representation or disclosure appears as part of this Deed of Trust.
SECTION 8.05. Other Events. Any other event which, under this Deed of Trust, or under the Promissory Note or the Agreement, constitutes an Event of Default by Trustor hereunder or thereunder or gives Beneficiary the right to accelerate the maturity of the indebtedness, or any part thereof, secured hereby.
SECTION 8.06. Cure Rights.
(a) Monetary Default. If a monetary Event of Default occurs, prior to exercising any remedies thereunder, Beneficiary shall give the Trustor written notice of such default. Trustor shall have a period of ten (10) days after such notice is given within which to cure the default prior to exercise of remedies by Beneficiary.
(b) Non-Monetary Default. If a non-monetary Event of Default occurs, prior to exercising any remedies thereunder, Beneficiary shall give Trustor written notice of such default. If the default is reasonably capable of being cured within thirty (30) days, Trustor shall have such period to effect a cure prior to exercise of remedies by Beneficiary. If the default is such that it is not reasonably capable of being cured within thirty (30) days, and if Trustor (a) initiates corrective action within said period, and (b) diligently, continually, and in good faith works to effect a cure as soon as possible, then Trustor shall have such additional time as is reasonably necessary to cure the default prior to exercise of any remedies by Beneficiary. In no event shall Beneficiary be precluded from exercising remedies if its security becomes or is about to become materially jeopardized by any failure to cure a default or the default is not cured within one hundred twenty (120) days after the first notice of default is given.
ARTICLE 9. REMEDIES. Upon the occurrence of any Event of Default and the expiration of any applicable period within which to cure the same, Trustee and Beneficiary shall have the following rights and remedies:
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9 SECTION 9.01. Acceleration. Beneficiary may declare the entire outstanding Principal, accrued and unpaid interest and all other sums or payments required hereunder to be due and payable immediately and notwithstanding the date such sums would otherwise be due in accordance with the Promissory Note and the Agreement.
SECTION 9.02. Entry. Whether or not Beneficiary exercises the right provided in Section 9.01 above, Beneficiary, in person or by agent or court-appointed receiver, may enter upon, take possession of, manage and operate the Property or any part thereof and do all things necessary or appropriate in Beneficiary's sole discretion in connection therewith, including, without limitation, making and enforcing, and if the same be subject to modification or cancellation, modifying or canceling leases upon such terms or conditions as Beneficiary deems proper, obtaining and evicting tenants, and fixing or modifying rents, contracting for and making repairs and alterations, and doing any and all other acts which Beneficiary deems proper to protect the security hereof; and either with or without so taking possession, in its own name, in the name of Trustor or by court-appointed receiver (which may be appointed on notice or on ex parte application without notice), suing for or otherwise collecting and receiving the rents and profits, including those past due and unpaid, and applying the same less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby and in such order as Beneficiary may determine. Upon request of Beneficiary, Trustor shall assemble and make available to Beneficiary at the site of the Real Property any of the Property which has been removed therefrom. The entering upon and taking possession of the Property, or any part thereof, the collection of any rents and profits and the application thereof as aforesaid shall not cure or waive any Event of Default theretofore or thereafter occurring or affect any notice or Event of Default or notice, and, notwithstanding continuance in possession of the Property or any part thereof by Beneficiary, Trustor or a receiver, and the collection, receipt and application of the rents and profits, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or by law or in equity upon or after the occurrence of an Event of Default, including, without limitation, the right to exercise the power of sale. Any of the actions referred to in this Section may be taken by Beneficiary irrespective of whether any notice of an Event of Default or election to sell has been given hereunder and without regard to the adequacy of the security for the indebtedness hereby secured.
SECTION 9.03. Judicial Action. Beneficiary may bring an action in any court of competent jurisdiction to foreclose this Deed of Trust or to enforce any of the covenants and agreements of this Deed of Trust, or the Promissory Note and the Affordable Housing Agreement.
SECTION 9.04. Power of Sale.
SUBSECTION 9.04(a). Beneficiary may elect to cause the Property or any part thereof to be sold under the power of sale herein granted in any manner permitted by applicable law. In connection with any sale or sales hereunder, Beneficiary may elect to treat any of the Property that consists of a right in action or that is property that can be severed from the Real Property or any improvements thereon without causing structural damage thereto as if the same were personal property and dispose of the same in accordance with applicable law, separate and apart from the sale of the Real Property.
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10 SUBSECTION 9.04(b). Trustee may, and upon request of Beneficiary shall, from time to time, postpone any sale hereunder by public announcement thereof at the time and place noticed therefor. If the Property consists of several items of property, Beneficiary may designate the order in which such items shall be offered for sale or sold. Any person, including Trustor, Trustee or Beneficiary, may purchase at any sale hereunder, and Beneficiary shall have the right to purchase at any sale hereunder by crediting upon the bid price the amount of all or any part of the indebtedness hereby secured.
SUBSECTION 9.04(c). Should Beneficiary desire that more than one sale or other disposition of the Property be conducted, Beneficiary may, at its option, cause the same to be conducted simultaneously, or successively, on the same day, or at such different days or times and in such order as Beneficiary may deem to be in its best interests, and no such sale shall terminate or otherwise affect the lien of this Deed of Trust on any part of the Property not sold until all indebtedness secured hereby has been fully paid. Upon any sale hereunder, Trustee shall execute and deliver to the purchaser or purchasers a deed or deeds conveying the Property so sold, but without any covenant or warranty whatsoever, express or implied, whereupon such purchaser or purchasers shall be let into immediate possession; and the recitals in any such deed or deeds of facts, such as default, the giving of notice of default and notice of sale and other facts affecting the regularity or validity of such sale or disposition, shall be conclusive proof of the truth of such facts and any such deed or deeds shall be conclusive against all persons as to such facts recited therein.
SUBSECTION 9.04(d). In case of any sale of the Property pursuant to any judgment or decree of any court or at public auction or otherwise in connection with the enforcement of any of the terms of this Deed of Trust, Beneficiary, its successors or assigns, may become the purchaser, and for the purpose of making settlement for or payment of the purchase price, shall be entitled to deliver over and use the Promissory Note, together with all other sums, with interest, advanced and unpaid hereunder, in order that there may be credited as paid on the purchase price the sum then due under the Promissory Note, including principal thereon and all other sums, with interest, advanced and unpaid hereunder.
SECTION 9.05. Proceeds of Sale. The proceeds of any sale made under or by virtue of this Article, together with all other sums that then may be held by Trustee or Beneficiary under this Deed of Trust, whether under the provisions of this Article or otherwise, shall be applied as follows:
(a) First, to the payment of the costs and expenses of sale and of any judicial proceedings wherein the same may be made, including reasonable compensation to Trustee and Beneficiary, their agents and counsel, and to the payment of all expenses, liabilities and advances made or incurred by Trustee under this Deed of Trust, together with interest on all advances made by Trustee at the maximum rate permitted by law to be charged by Trustee. (b) Second, to the payment of any and all sums expended by Beneficiary under the terms hereof (including, but not limited to, sums paid by Beneficiary on the prior trust deed) not then repaid and all other sums required to be paid by Trustor pursuant to any provisions of this Deed of Trust or the Promissory Note, including, without limitation, all expenses, liabilities and advances made or
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11 incurred by Beneficiary under this Deed of Trust or in connection with the enforcement hereof, together with interest thereon as herein provided.
(c) Third, to the payment of the entire amount then due, owing or unpaid upon the Promissory Note, including attorney's fees and costs.
(d) Fourth, all amounts otherwise due Beneficiary.
(e) The remainder, if any, to the person or persons legally entitled thereto.
SECTION 9.06. Waiver of Marshaling. Trustor, for itself and for all persons hereafter claiming through or under it or who may at any time hereafter become holders of liens junior to the lien of this Deed of Trust, hereby expressly waives and releases all rights to direct the order in which any of the Property shall be sold in the event of any sale or sales pursuant hereto, and to have any of the Property and/or other property now or hereafter constituted security for any of the indebtedness secured hereby, marshaled upon any foreclosure of this Deed of Trust or for any other security for any of said indebtedness.
SECTION 9.07. Remedies Cumulative. No remedy herein conferred upon or reserved to Trustee or Beneficiary is intended to be exclusive of any other remedy herein or by law provided, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. No delay or omission of Trustee or Beneficiary to exercise any right or power accruing upon any Event of Default shall impair any right or power or shall be construed to be a waiver of any Event of Default or any acquiescence therein; and every power and remedy given by this Deed of Trust to Trustee or Beneficiary may be exercised from time to time as often as may be deemed expedient by Trustee or Beneficiary. If there exists additional security for the performance of the obligations secured hereby, the holder of the Promissory Note, at its sole option, and without limiting or affecting any of its rights or remedies hereunder, may exercise any of the rights and remedies to which it may be entitled hereunder either concurrently with whatever rights and remedies it may have in connection with such other security or in such order as it may determine. Any application of any amounts or any portion thereof held by Beneficiary at any time as additional security hereunder, whether pursuant to this deed of trust or otherwise, to any indebtedness secured hereby shall not extend or postpone the due dates of any payments due from Trustor to Beneficiary hereunder or under the Promissory Note, or change the amounts of any such payments or otherwise be construed to cure or waive any default or notice of default hereunder or invalidate any act done pursuant to any such default or notice. In the event that Beneficiary shall have proceeded to enforce any right under this Deed of Trust by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely, then, and in every such case, Trustor and Beneficiary shall be restored to their former positions and rights hereunder with respect to the Property subject to the lien hereof.
SECTION 9.08. Indemnity. Trustor agrees to defend, indemnify, and hold Beneficiary harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorney’s fees that Borrower may incur as a direct or indirect result of:
[enter project name] Impact Fee Deferral Deed of Trust
12 a) Trustor’s default, performance, or failure to perform any obligations as and when required by the Note and Deed of Trust;
b) Trustor’s ownership of the Property; or
c) The failure at any time of any of Trustor’s certifications, representations, or warranties to be true and correct.
ARTICLE 10. MISCELLANEOUS
SECTION 10.01. Severability; captions. In the event that any one or more of the provisions contained in this Deed of Trust shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Deed of Trust, and this Deed of Trust shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. The captions and headings in this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof.
SECTION 10.02. Certain Charges. Trustor agrees to pay the charges of Beneficiary for any service rendered Trustor, or on its behalf, connected with this Deed of Trust or the indebtedness secured hereby, including, without limitation, delivering to an escrow holder a request for full or partial reconveyance of this Deed of Trust, transmitting to an escrow holder moneys secured hereby, changing the records pertaining to this Deed of Trust and indebtedness secured hereby, showing a new owner of the Property and replacing an existing policy of insurance held hereunder with another such policy.
SECTION 10.03. Notices. All notices required or permitted to be given under this Deed of Trust shall be in writing and shall be deemed to have been given upon (i) one business day after being deposited with Federal Express or another reliable overnight courier service for next day delivery, or (ii) five (5) business days after being deposited in the United States mail, by first class or registered or certified mail, postage prepaid, return receipt requested, and addressed as follows (or at such other address or which said party shall have theretofore notified in writing, as provided above, the party giving such notice).
To the Beneficiary:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: Community Development Director
To the Trustee:
[enter title company info]
To the Trustor:
[enter trustor info]
With copies to:
[enter managing director info]
[enter project name] Impact Fee Deferral Deed of Trust
13 SECTION 10.04. Trustor Not Released. Extension of the time for payment or modification of the terms of payment of any sums secured by this Deed of Trust granted by Beneficiary to any successor-in-interest of Trustor shall not operate to release, in any manner, the liability of the original Trustor. Beneficiary shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify the terms of the payment of the sums secured by this Deed of Trust by reason of any demand made by the original Trustor.
Without affecting the liability of any person, including Trustor, for the payment of any indebtedness secured hereby, or the lien of this Deed of Trust on the remainder of the Property for the full amount of any such indebtedness and liability unpaid, Beneficiary and Trustee are respectively empowered as follows: Beneficiary may from time to time and without notice (a) release any person liable for the payment of any of the indebtedness, (b) extend the time or otherwise alter the terms of payment of any of the indebtedness, (c) accept additional real or personal property of any kind as security therefor, whether evidenced by deeds of trust, mortgages, security agreements or any other instruments of security, or (d) alter, substitute or release any property securing the indebtedness; Trustee may, at any time and from time to time, upon the written request of Beneficiary (a) consent to the making of any map or plat of the Property or any part thereof, (b) join in granting any easement or creating any restriction thereon, (c) join in any subordination agreement or other agreement affecting this Deed of Trust or the lien or charge hereof, or (d) reconvey, without any warranty, all or part of the Property.
SECTION 10.05. Inspection. Beneficiary may at any reasonable time or times make or cause to be made entry upon and inspections of the Property or any part thereof in person or by agent.
SECTION 10.06. Reconveyance. Upon the payment in full of all sums secured by this Deed of Trust, Beneficiary shall request that Trustee reconvey the Property and shall surrender this Deed of Trust and Promissory Note evidencing indebtedness secured by this Deed of Trust to Trustee.
Upon payment of its fees and any other sums owing to it under this Deed of Trust, Trustee shall reconvey the Property without warranty to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in such reconveyance of any matters of facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Five (5) years after issuance of such full reconveyance, Trustee may destroy the Promissory Note and this Deed of Trust unless otherwise directed by Beneficiary.
SECTION 10.07. Interpretation. Wherever used in this Deed of Trust, unless the context indicates a contrary intent, or unless otherwise specifically provided herein, the word "Trustor" shall mean and include both Trustor and any subsequent owner or owners of the Property, and the word "Beneficiary" shall mean and include not only the original Beneficiary hereunder but also any future owner and holder, including pledgees, of the Promissory Note secured hereby. In this Deed of Trust wherever the context so requires, the masculine gender includes the feminine and/or neuter, and the neuter includes the feminine and/or masculine, and the singular number includes the plural and conversely. In this Deed of Trust, the use of the word "including" shall not be deemed to limit the generality of the term or clause to which it has reference, whether or not nonlimiting language (such as "without limitation," or "but not limited to" or words of similar import) is used with reference thereto. The captions and headings of the Articles and Sections of this Deed
[enter project name] Impact Fee Deferral Deed of Trust
14 of Trust are for convenience only and are not to be used to interpret, define or limit the provisions hereof. Unless otherwise specified, in computing any period of time described herein, the term “days” means calendar days, unless the final days of any designated period of time is not a “business day” (as defined below), in which case the period shall run until the end of the next business day. A “business day” is any day that is not a Saturday, Sunday or legal holiday for national banks located in California. The last day of any period of time described herein shall be deemed to end at 5:00 p.m., Pacific Time.
SECTION 10.08. Consent. The granting or withholding of consent by Beneficiary to any transaction as required by the terms hereof shall not be deemed a waiver of the right to require consent to future or successive transactions.
SECTION 10.09. Successors and Assigns. All of the grants, obligations, covenants, agreements, terms, provisions and conditions herein shall run with the land and shall apply to, bind, and inure to the benefit of the heirs, administrators, executors, legal representatives, successors and assigns of Trustor and the successors-in-trust of Trustee and the endorsees, transferees, successors and assigns of Beneficiary. In the event that Trustor is composed of more than one party, the obligations, covenants, agreements and warranties contained herein as well as the obligations arising therefrom are and shall be joint and several as to each such party.
SECTION 10.10. Governing Law. This Deed of Trust shall be governed by and construed under the laws of the State of California. Venue for any action or proceeding arising out of or in connection to this Deed of Trust shall be the Superior Court for the County of San Luis Obispo.
SECTION 10.11. Trustor Waivers. Trustor waives the benefit of all laws now existing or that hereafter may be enacted with respect to any statute of limitations for the filing of any action or claims by Beneficiary.
SECTION 10.12. Subordination. This Deed of Trust shall not diminish or affect the rights of Senior Lenders (as defined below). Beneficiary and Trustor acknowledge and agree that this Deed of Trust is subject and subordinate in all respects to the liens, terms, covenants and conditions of the Senior Financing Documents (as defined below) and to all advances heretofore made or which may hereafter be made pursuant to any of the Senior Financing Documents, including all sums advances for the purposes of (i) protecting or further securing the lien of any of the Senior Financing Documents, curing defaults by the Trustor under any of the Senior Financing Documents or for any other purpose expressly permitted by any of the Senior Financing Documents, or (ii) constructing, renovating, repairing, furnishing, fixturing or equipping the Project or the Property. The terms and provisions of the Senior Financing Documents are paramount and controlling, and they superseded any other terms and provisions hereof in conflict therewith. Trustor shall be permitted to refinance the loans evidenced by the Senior Financing Documents, and this Deed of Trust shall be subject and subordinate to the liens, terms, covenants and conditions of any such refinancing. Beneficiary shall execute instruments further evidencing such subordination upon request. The “Senior Financing Documents” shall mean, collectively described below, and recorded concurrently herewith:
(a)
[enter project name] Impact Fee Deferral Deed of Trust
15 SECTION 10.13. Request for Notices of Default and Sale.
SUBSECTION 10.13(a). Beneficiary hereby requests that a copy of any notice of default and notice of sale as may be required by law or by this Deed of Trust be mailed to Beneficiary at its address above stated.
SECTION 10.14. Transfer. Trustor shall not voluntarily or involuntarily assign or otherwise transfer any of its rights, duties, liabilities or obligations hereunder or under the Note without the prior written consent of Beneficiary. Notwithstanding the forgoing, Trustor shall have the right to sell, convey, transfer or dispose of the Property or any part thereof or any interest therein, or the enter into an agreement to do so, to the extent permissible under and pursuant to the requirements of the Affordable Housing Agreement, provided also that transferee agrees to assume all of the obligations of Trustor under this Deed of Trust, the Note and the Affordability Agreement, and the Note shall not become due and payable.
In addition, and notwithstanding anything to the contrary in this Deed of Trust or the other documents evidencing and/or securing the Loan (the “Loan Documents”), (a) the withdrawal, removal and/or replacement of a general partner of the Trustor (the “General Partner”) by the limited partner of Trustor for cause pursuant to the terms of the Trustor’s amended and restated agreement of limited partnership shall not constitute a default under any of the Loan Documents, and any such actions shall not accelerate the maturity of the Loan, provided that any substitute general partner that is not an affiliate of the limited partner is reasonably acceptable to Beneficiary and is selected with reasonable promptness (it being agreed that no consent of Beneficiary shall be required if the substitute general partner is an affiliate of the Limited Partner), and (b) all or a portion of the interests of Trustor’s limited partners shall be transferable without the consent of the Beneficiary except that, prior to payment in full of all capital contributions, the interest the limited partners in the Trustor shall be transferable to a non-affiliate of the limited partners only with the consent of the Beneficiary, which consent shall not be unreasonably withheld.
SECTION 10.15 Attorney’s Fees. In any action, to interpret or enforce any provision of this Deed of Trust, the prevailing party shall be entitled to reasonable costs and attorney’s fees.
SECTION 10.16 Extended Use Agreement. In order to receive and allocation of federal low income housing tax credits, Trustor will be require to record in the real property records of the County in which the property is located, an “extended low-income housing commitment” (as defined in Section 42(h)(6)(B) of the Internal Revenue Code of 1986, as amended (“Code”)) (“Extended Use Agreement”). Beneficiary acknowledges and agrees that, in the event of a foreclosure of its interest under this Deed of Trust or delivery by the Trustor of a deed in lieu thereof (collectively, a “Foreclosure”), Beneficiary agrees to comply with the following rule contained in Section 42(h)(6)(E)(ii) of the Code: For a period of three (3) years from the date of Foreclosure, with respect to any unit that had been regulated by the Extended Use Agreement, (i) none of the eligible tenants occupying those units at the time of Foreclosure may be evicted or their tenancy terminated (other than for good cause, including by not limited to, the tenants’ ineligibility pursuant to regulations of Section 42 of the Code, (ii) not may any rent be increased except as otherwise permitted under Section 42 of the Code.
[enter project name] Impact Fee Deferral Deed of Trust
16 [Signatures appear on the following page]
IN WITNESS WHEREOF, the undersigned have executed this Deed of Trust as of the day and year first above written.
BORROWER:
[enter LP name].,
a California limited partnership
By: [enter managing general partner name],
a California nonprofit public benefit corporation,
its managing general partner
By:
[enter CEO name], CEO
SIGNATURE MUST BE NOTARIZED
[enter project name] Impact Fee Deferral Deed of Trust
17 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.
[enter project name] Impact Fee Deferral Deed of Trust
18 Exhibit A
Legal Description
15070445.1
CITY OF SAN LUIS OBISPO
PROMISSORY NOTE – IMPACT FEE DEFERRAL
SECURED BY DEED OF TRUST
$[enter amount] Date: [enter date]
At San Luis Obispo, California
FOR VALUE RECEIVED, [enter borrower entity/LP name]., a California limited partnership ("Borrower"), promises to pay to the order of the City of San Luis Obispo (“City”) a municipal corporation and charter city in the State of California (“Lender”), at such place as the Lender may from time to time designate by written notice to borrower, the principal sum of [enter amount in words] ($enter amount) (“Loan”), together with interest on the unpaid principal balance from time to time outstanding. Until the Loan is paid in full, the Loan will bear interest at an annual simple fixed rate of three percent (3.0%) (“Interest Rate”). A breakdown of this value (City Impact Fees) is seen in Exhibit A. Interest hereunder shall not be compounding.
Principal and interest shall be payable in lawful money of the United States of America. Interest shall be computed based upon a three hundred sixty-five (365) day year.
1. Payment; Maturity. No payments of interest or principal shall be due on this Note prior to the Maturity Date (as defined below), so long as no Event of Default hereunder shall have occurred and be continuing. All unpaid interest amounts shall accrue under this Note.
The principal amount of this Note, plus all accrued and unpaid interest, and all other amounts owing hereunder or under the Deed of Trust (defined below) shall be due and payable on [enter date 20 years from signing date] (the “Maturity Date”). This Note shall be deemed satisfied when the principal amount of this Note, all interest accrued thereon and all other amounts due hereunder and under the Deed of Trust are paid in full.
2. Security. This Note is secured by a Deed of Trust, Deed of Trust Covenants, Assignment of Rents, Security Agreement and Fixture Filing by and between Borrower and Lender, dated as of the date hereof (the “Deed of Trust”) and recorded against Borrower’s interest in that certain real property located in San Luis Obispo, California, as more particulary described in the Deed of Trust (the “Property.”) The terms of the Deed of Trust are incorporated herein by this reference. Borrower agrees to pay all the collection and enforcement costs, expenses and attorneys’ fees paid or incurred by Lender or adjudged by a court in any litigation or controversy connected with this Note.
3. Prepayment. This Note may be prepaid, at any time, in whole or in part, without premium or penalty.
4. Application of Payments. Each payment under this Note shall be applied (a) first, to the payment of accrued interest; (b) second, at the option of Lender, to the payment of any other amounts owing under this Note and the Deed of Trust, other than accrued interest and principal, including, but not limited to, advances Lender may have made for attorney fees or late charges due hereunder; and (c) third, to the reduction of principal of this Note. All payments of principal under this Note shall be applied to the most remote principal installment then unpaid.
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Bishop Street Studios L.P. Impact Fee Promissory Note
Accrued interest shall not be added to the principal balance of the Note; provided, however, upon an Event of Default and acceleration under Section 9.01 of the Deed of Trust, all accrued and unpaid interest shall be added to the principal amount of the Note and interest at the Default Rate shall accrue thereon.
5. Default Rate; Late Charge. Upon an Event of Default and acceleration under Section 9.01 of the Deed of Trust, the unpaid principal balance and all accrued interest thereon shall bear interest thereafter at the rate of the Default Rate, but if such interest rate exceeds the Maximum Rate, then such rate shall be reduced to the Maximum Rate. The term “Default Rate” means that Interest Rate plus five percent (5.00%) per annum. In addition, if any payment due under this Note is paid within ten (10) business days after Borrower received written notice of such failure to pay, Borrower shall pay a reasonable later or collection charge equal to five percent (5.00%) of the amount so unpaid. Lender and Borrower agree that the actual damages and costs sustained by Lender due to the failure to make timely payments would be extremely difficult to measure and that the charges specified in this paragraph represent a reasonable estimate by Borrower and Lender of a fair average compensation for such damages and costs.
Such charges shall be paid by Borrower without prejudice to the right of Lender to collect any other amounts provided to be paid under this Note or any other agreement or, with respect to late payments, to declare an Event of Default.
6. Usury. Notwithstanding anything herein to the contrary, no provision contained herein shall require the payment or permit the collection of interest, including any fees and/or charges, in excess of the maximum non-usurious interest permitted by applicable law (“Maximum Rate”). If any interest in excess of the Maximum Rate is provided for, or shall be adjudicated to be so provided or, then Borrower shall not be obligated to pay interest to the extent that it is in excess of the Maximum Rate and any excess interest which may have been collected shall be either applied as a credit against the then unpaid principal amount hereof or refunded to Borrower.
7. Event of Default. The occurrence of any one or more of the following shall constitute an “Event of Default” hereunder:
a) Failure to Make Payment of Interest and Principal. Borrower fails to make any payment as described in this Note as of the Maturity Date. b) Failure to Make Other Payments. Borrower fails to make any payment due under the Note (other than interest and principal payments which are governed by subsection (a) above) within thirty (30) days of the date of written notice from Lender that such payment is due. c) Failure to Comply with Governing Documents. Borrower fails to comply in any material respect with the terms and conditions as set forth in this Note, the Deed of Trust, the Development Impact Fee Deferral Agreement, or the Affordable Housing Agreement between the Borrower and Lender/City dated as of the date hereof to provide affordable rental housing,
15070445.1
Bishop Street Studios L.P. Impact Fee Promissory Note
and does not cure such failure within thirty (30) days after written notice from Lender; provided, however, if such failure is not capable of cure within said thirty (30) day period, then if Borrower promptly undertakes action to cure such failure within the thirty (30) day period and thereafter diligently prosecutes such cure to completion within one hundred twenty (120) days after the date of the notice from Lender, then Borrower shall not be in default hereunder.
8. Remedies. If any Event of Default occurs under this Note or Deed of Trust, then the whole of the principal, interest and charges owing on this Note may be declared immediately due and payable and Lender may exercise all remedies under the Deed of Trust, or at law, in equity or otherwise, including the right to accelerate the payment of the principal, interest and charges owing hereunder and under the Deed of Trust. Borrower agrees to pay immediately upon demand all costs and expenses of Lender, including reasonable attorneys’ fees, if, after an Event of Default, it is necessary or desirable for Lender to retain services for collection or protection of Lender’s rights under this Note and the Deed of Trust, including but not limited to an attempt to have any stay or injunction prohibiting the enforcement of this Note or Deed of Trust lifted by any bankruptcy or other court.
9. Waiver of Presentment. Borrower and all persons liable or to be liable on this Note waive presentment, demand, notice of dishonor, notice of default, delinquency or acceleration, notice of intent to demand or accelerate payment or maturity, presentment for payment, and notice of protest and nonpayment, grace, notice late charges and diligence in taking any action to collect amounts due to Lender under this Note or proceeding against any of the rights and interest in and to personal or real property, if any, securing payment of this Note.
10. No Waiver. Neither Lender’s acceptance of one or more installments following an Event of Default, nor any delay on the part of Lender in the exercise of any power or right under this Note or under the Deed of Trust, shall operate as a waiver thereof, and no single or partial exercise of any other power or right shall operate as a waiver thereof.
11. Miscellaneous.
a) Applicable Law. This Note shall be governed by and construed in accordance with the laws of the State of California. Venue for any action or proceeding arising out of or in connection to this Note shall be the Superior Court for the County of San Luis Obispo. b) Severability of Provisions. Each provision of this Note shall be considered separable and if for any reason any provision which is not essential to the effectuation of the basic purposes of this Note is determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those provisions of this Note which are valid.
c) Interpretation. Unless otherwise specific, in computing any period of time described herein, the term “days” means calendar days, unless the final day of any designated period of time is not a “business day” (as defined below), in which case the period shall run until
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Bishop Street Studios L.P. Impact Fee Promissory Note
the end of the next business day. A “business day” is any day that is not a Saturday, Sunday or legal holiday for national banks located in California. The last day of any period of time described herein shall be deemed to end at 5:00 p.m., Pacific Time. d) Headings. Headings in this Note are for convenience only and do not define or limit the scope of provisions of this Note.
e) Notices. All notices to be given under this Note must be given in accordance with the Deed of Trust.
12. Relationship. At all times, the relationship of Lender and Borrower shall be that of creditor and debtor. The Lender shall not, in any event, be constructed or held to be a partner, joint venture, employee or associate of Borrower in the Conduct of Borrower’s business. Nothing in this Note shall be construed to establish such relationship.
13. Limitation on Recourse. Neither Borrower nor Borrower’s officers, partners, officers, directors, employees or agents nor their respective members, officers, partners, officers, directors, employees or agents shall be personally liable for the payment of principal, interest and other amounts which may become due and payable under the Note or the Deed of Trust or the Affordability Agreement. Except in the case of actual fraud or willful misconduct of any such person(s), the sole recourse of the Lender under this Note and Deed of Trust for repayment of the Note shall be the exercise of its rights against the Property.
14. Subordination. The indebtedness evidenced by this Note is and shall be subordinate in the right of payment to the prior payment in full of all amounts then due and payable (including, but not limited to, all amounts due and payable by virtue of any default or acceleration or upon maturity) with respect to the indebtedness evidenced by the Senior Financing Documents (as defined below) and any subsequent refinancings thereof. The payee and each subsequent holder of this Note shall be deemed, by virtue of such holder’s acquisition of this Note, to have agreed to perform and observe all of the terms, covenants and conditions to be performed or observed by the subordinate or junior lender under the Senior Financing Documents. The “Senior Financing Documents” shall mean, collectively:
(a)
15. Amendments. This Note may not be modified or amended except by an instrument in writing executed by Borrower and Lender.
[Signature appears on the following page]
15070445.1
Bishop Street Studios L.P. Impact Fee Promissory Note
IN WITNESS WHEREOF, Borrower has executed the Promissory Note as of the date as first written above.
BORROWER:
[enter LP/ borrower entity].,
a California limited partnership
By: [enter managing general partner entity name],
a California nonprofit public benefit corporation,
its managing general partner
By:
[enter CEO name], CEO
15070445.1
Bishop Street Studios L.P. Impact Fee Promissory Note
EXHIBIT A
[enter impact fee breakdown table here]