Agenda packet — San Luis Obispo City Council, June 3, 2025 (part 2 of 2)

AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN

LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY

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WHEREAS, the CITY and SLOMA desire to continue to encourage public art that respects the community’s past and embraces the future in a collaborative, diverse, and equitable fashion; and WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and SLOMA as a way to continue to enhance the sense of place and community for residents through the proliferation of public art and education thereof; and
WHEREAS, City staff will continue to focus directly on the other equally valuable components of the City’s Public Art program, including support of the local art community, activation of space through art programming and installation, infrastructure maintenance, communications and outreach, policy development and guidance, and support of private development art installation; and WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and SLOMA has provided a proposal to the City expressing a desire to support public art installations to mutually benefit both agencies.

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

1. TERM OF AGREEMENT The term of this Agreement shall be for two (2) years commencing on July 1, 2025, and terminating on June 30, 2027

2. FINANCIAL MANAGEMENT. The CITY and SLOMA agree to a series of terms as outlined below.

2.1. The CITY shall compensate SLOMA $100,000 annually, for a total of $200,000, during the term of this Agreement for the general services it provides under the terms of this agreement.

2.1.a. SLOMA shall invoice the CITY on a biannual basis (for $50,000 each half-year) for this service by no later than July 1 and January 1 each year of this Agreement.

2.1.b. The CITY shall remit payment to SLOMA within thirty (30) days from the date of receipt by CITY of its biannual invoice for general community art services from SLOMA.

2.2. SLOMA shall make a minimum of three different art acquisitions per year on behalf of the CITY, as defined below. CITY shall pay for purchase or lease of public art pieces facilitated by SLOMA on the City’s behalf under the terms of this agreement. For the length of this agreement said costs shall not to exceed $200,000 annually which has been budgeted for the purpose of SLOMA’s facilitated acquisition of three different types of art as follows:

Acquisitions and Installation of Art on Behalf of the City by SLOMA for each year

MAXIMUM ANNUAL CITY FUNDED
BUDGET
(1) Completion of permanent sculpture art
installation of “Shift”, already owned by the City
Up to $40,000 for cost of installation
(sculpture already purchased for the price
of $10,000)
(1) Temporary installation on the Mission Plaza Lawn,
to be installed upon completion of Plaza
restoration. Includes management of
maintenance of temporary piece.

Up to $75,000 for cost of installation and
deaccession of the piece for an
approximate 18-month term.
(1) Permanent sculpture to be installed at Righetti
Community Park. Agreed upon location by City
and SLOMA.

Up to $200,000 for purchase and
installation of the piece.

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(1) Additional space maker installation on agreed
upon location within the City – one or more per
year
Up to $75,000 for cost of installation and
deaccession of the piece
Management of maintenance for and
deinstallation of temporary art at Garden Street
Alley.

Up to $10,000 for maintenance and
deaccession of the piece
Table 1.0: Installation Funded Amounts

2.2.a.PURCHASE OR LEASE OF ART: The CITY will purchase or lease the art directly from the artist. SLOMA will coordinate payment and contract signing between CITY and artist, in a form provided by the CITY. The City will pay a 40% deposit at time of contract execution and the remaining due at time of completion.

2.2.b. INSTALLATION COSTS: As part of this Community Agreement, SLOMA is responsible for the installation of the art and managing costs associated with the installation. SLOMA will provide a separate estimate to the CITY for each of the different installation costs. The City will pay SLOMA a 40% towards the costs of installation at time of contract execution and the remaining due at time of completion. The CITY will reimburse SLOMA for installation costs up to the approved estimated amount once an invoice is provided. For reimbursement, qualifying expenses shall be recorded in addition to the invoice SLOMA provides the CITY.

2.2.b.1. Qualifying expenses are defined as costs directly associated with the installation of the art. Qualifying expenses do not include upgrades to shared space, marketing or private photography costs, travel expenses without prior approval, personal gifts, meals, or gratuities.

2.2.b.2. Expenses will be reimbursed up to the amount predetermined by City Council and budget direction and confirmed by Recreation Manager prior to purchase. Costs that exceed this cost must be preapproved by City staff through written correspondence.

2.2.b.3. Costs for purchase and or lease of art plus the installation shall not exceed the original quote and shall remain under the amount outlined in Table 1.0.

2.2.c.For each project, a contract, in a form approved by the CITY, will be completed between the CITY and artist directly. SLOMA will act as liaison to ensure signatures are collected prior to payment or services. The Agreement may need to be amended depending on the artist and art piece; in that case, the Agreement will be modified with the advisement of the City Attorney’s Office.

2.2.d. Upon payment, the art becomes a part of the City’s collection (permanent or temporary) and all rights belong to the CITY as outlined in agreement.

2.2.e.SLOMA may use public art for promotion and is expected to recognize the City as funder and program manager.

3. CITY ROLES AND RESPONSIBILITIES. The City of San Luis Obispo Parks and Recreation Director may authorize periodic modifications, within the scope of financial and/or operational authority, to the Roles and Responsibilities as may deem necessary or appropriate to the partnership between the CITY and SLOMA. Any amendments or modifications to the Roles and Responsibilities shall be in writing and may only be made with the mutual written consent of both parties.

4. SCOPE OF SERVICES
Both parties agree to collaborate on the public art program projects as outlined in the obligations below.

A. CITY OBLIGATIONS

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i. The CITY will provide access and guidance to SLOMA relative to the CITY’s Public Art Policies and Procedures Manual.
ii. The CITY will continue to manage the Utility Box Art Program. iii. The CITY will continue to address maintenance needs of the public art program for the current collection of artwork, including permanent artwork installed though the SLOMA/City partnership.
iv. The CITY will continue to manage the private development public art program. v. The CITY will set monthly reoccurring meetings with SLOMA Staff during the two (2) year term. vi. In accordance with paragraph 2 of this Agreement, the CITY shall remit quarterly payments to SLOMA during the two (2) year term of this Agreement.
vii. The CITY will work with SLOMA regarding payment process to selected Artists as outlined in this Agreement under “Financial Management.”
viii. The City will continue to hold and manage the Public Art Fund in its sole discretion. ix. The City will continue to communicate purchasing limits, which include installation, purchase or lease of art, and maintenance costs, prior to onset of each project to SLOMA. x. Contracts for purchase or lease of art will be signed directly between the City and the artist. xi. The City will provide direction regarding priority locations for art installations. xii. City Public Works staff will continue to work with SLOMA regarding installation of art in public spaces, as appropriate and necessary for the nature of each project and in accordance with the CITY’S Public Art policy and the terms of this Agreement. xiii. City Community Development staff will continue to work with SLOMA to support permitting necessary for installations.
xiv. City Communications staff will continue to promote art installations, joint projects, and the public art program, highlighting SLOMA as valued partners. xv. City Tourism staff will continue to promote Public Art through social media marketing and tourism outreach.
xvi. City staff will continue to notify SLOMA of Mission Plaza and street closures that may impact the Museum prior to non-emergency planned closures. City staff will continue to activate and draw visitors to the Mission Plaza through beautification, outreach, special event permitting and space activation. Staff will provide a quarterly schedule of events to SLOMA. xvii. City staff will continue to maintain the Mission Plaza Park, restrooms, lighting, and all spaces where Public Art is installed under the terms of this agreement.

B. SLOMA OBLIGATIONS
i. SLOMA will provide coordination of public art for the CITY during the two-year term of this Agreement. Projects shall include the items outlined above under 2.2 and are subject to City approval and available funds.

1. .
ii. SLOMA will work with City staff to define a proposed and maximum budget to be spent on each of these projects, including ongoing costs of maintenance. Should the costs for installation exceed the budgeted costs, SLOMA will be responsible for communicating these differences to the CITY prior to exceeding the balance or committing a difference of compensation to vendors. If funds are not available nor approved, SLOMA will have the option to supplement the costs and will be responsible for paying the difference. a. City fees will only be used to pay for acquisition and/or installation of art b. Reimbursement for art acquisition and/or installation requires SLOMA to submit a receipt of art and/or installation as outlined under the Agreement “Financial Management” section.

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c. For each installation, SLOMA will provide an invoice to define terms of what expenses will be necessitated prior to, during and after the installation. d. Costs of travel for staff or artists is not reimbursable without prior approval as outlined in proposal.
e. In the event travel expenses will be reimbursed, City will pay hotel rates as recommended in the US General Services Administration and a per diem as outlined by City policy.
f. City fees may not be used pay for: alcohol, meals, personal gifts, travel costs in excess of what was guaranteed in proposal.
iii. SLOMA will Acquire or facilitate temporary acquisition of art on behalf of the City. a. SLOMA will serve as liaison to ensure artist signs and completes a contract with the City, in a form approved by the CITY, and provides all documents to the CITY. b. SLOMA will recognize the City as owner/lessor of the art in all communications regarding the art.
c. The agreement in place will be made directly between the City and the artist. Any agreement that SLOMA makes directly with the artist shall not interfere with the completion of the City’s contract.
d. The City will retain permanent physical ownership of a piece or temporary ownership of a piece and all decisions regarding these pieces shall be made directly with the Recreation Manager.
e. SLOMA will provide the City with signed Statement of Authenticity from the artist or a receipt from the artist, as needed.,
iv. The following criteria and considerations shall guide SLOMA’s process for selecting art on behalf of the City:
a. SLOMA shall, in their expert discretion, pursue negotiations with artists who are nationally or internationally renowned.
b. SLOMA shall pursue art pieces that:
i. Are durable, can withstand the elements and exposure to public spaces, and are resistant to vandalism
ii. Can reasonably be maintained by the City after conveyance to the City iii. Enhance the sense of place in the City
iv. Encourage observers to understand each other and the world around them v. SLOMA shall follow the following process for selecting and acquiring art:

1. City staff to discuss priority areas with SLOMA or SLOMA to share ideas with City staff (Recreation Manager)

2. SLOMA to contact Public Works City staff to discuss challenges, obstacles, or necessities of installation in the public space;

3. SLOMA to present potential art piece and location to an ad hoc group that has been preapproved by City staff (to include a variety of input including neighbors to the installation location, any adjacent businesses, local artists, DEI representative, and City staff)

4. SLOMA shall assist City staff in the preparation of a Sole Source justification memo to be provided to the City Manager through a City Manager Report. vi. In managing the installation of selected public art, SLOMA shall:

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1. Provide a timeline for completing the steps above and communicate changes to the Recreation Manager

2. Serve as Public Art project liaison between selected Artists and CITY.

3. Secure planning/building permits, as may be required, and works with artist to fabricate artwork.

4. Communicate with City Public Works for all work on the Mission Plaza lawn.

5. Repair any damage to City property during installation.

6. Coordinate with CITY payment schedule to selected Artist.

7. Coordinate and oversee the installation of the approved artwork. vii. All marketing involving artwork paid for by the City will be tagged to the City and City will be given full credit of ownership.
viii. Ribbon Cuttings will be coordinated by SLOMA after working with City staff to coordinate available dates. The City will be invited to present at each ribbon cutting. ix. Promotions shall be approved by City staff, including Communications Coordinator or staff delegated thereby, prior to posting.
x. A sign for all art installations will be included in the cost of installation, shall follow City Communications guidelines and shall be approved prior to printing. xi. Continue to provide a monthly written update to the Recreation Manager in advance of monthly meetings.

4.1. The CITY Recreation Manager, or staff delegated by Recreation Manager, and SLOMA Staff will meet monthly during the two (2) year term of this Agreement to review the specific public art projects.

5. SHARED USE OF ADJACENT CITY PREMISES. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described above, CITY also desires to allow SLOMA shared use of the lawn area located immediately to the northeast of SLOMA’s existing leased Premises(the “Mission Plaza lawn area” or the “Shared Use Area.” During the term of this Agreement, SLOMA shall be permitted to install public art exhibits such as sculpture or other art mediums appropriate for an outdoor environment, as well as conduct outdoor educational activities on the Shared Use Area at such times and on such conditions as approved by the CITY. Installation of any such outdoor public art exhibits shall be subject to the Public Art Policies and Procedures Manual, ensuring all planning and building permits are in place as may be required. Any educational activities or events shall be subject to the standard terms and conditions that would otherwise be applicable with a temporary special events permit issued by City’s Parks and Recreation Department. CITY shall be responsible for normal and customary maintenance and upkeep of the Shared Use Area (e.g., mowing, irrigation, etc.). SLOMA shall be responsible for maintenance, security, special insurance provisions, and any and all costs whatsoever associated with activities and events that occur under the direction of SLOMA within the Shared Use Area, and with the installation of outdoor art exhibits or sculpture that SLOMA may place within the Shared Use Area. In the event that shared space is damaged during installation or an event in shared space because of actions, or inactions, taken by SLOMA or their contractors, SLOMA will be responsible for costs of repair in compliance with City standards and staff approval. Uses of the Shared Use Area other than those contemplated in this Paragraph 5 are prohibited and shall be considered a breach of this Agreement.

SLOMA shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement.

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7. COMPLIANCE WITH LAW. SLOMA shall keep itself informed of and shall observe and comply with all applicable State and Federal laws and regulations, and county and City of San Luis Obispo ordinances, regulations and adopted codes, which in any manner affect those employed by SLOMA or in any way affect the performance of the Services pursuant to this Agreement. SLOMA shall not permit others to violate any applicable laws, regulations, or ordinances in, on, or through the use of the Leased Premises or Shared Use Area. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the SLOMA to comply with this Section. Failure to comply with local ordinances may result in monetary fines and cancellation of this Agreement.

8. COMPLIANCE WITH INDUSTRY STANDARD. SLOMA shall provide services acceptable to City in strict conformance with the Agreement. SLOMA shall also provide in accordance with the standards customarily called for under this Agreement using the degree of care and skill ordinarily exercised by reputable providers of such services. Where approval by the City, the City Manager, the Mayor, or other representative of City is required, it is understood to be general approval only and does not relieve SLOMA of responsibility for complying with all applicable laws, codes, policies, regulations, and good business practices.

9. INDEPENDENT COMMUNITY PARTNER.

9.1. SLOMA is and shall at all times remain as to the City a wholly independent community partner. The personnel performing the Services under this Agreement on behalf of SLOMA shall at all times be under SLOMA’s exclusive direction and control, except as set forth in this Agreement upon mutual acceptance of the parties. Neither City nor any of its officers, employees, or agents shall have control over the conduct of SLOMA or any of SLOMA’s officers, employees, or agents, except as set forth in this Agreement. SLOMA shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. SLOMA shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner.

9.2. No employee benefits shall be available to SLOMA in connection with the performance of this Agreement.

Except for the fees paid to SLOMA as provided in the Agreement, City shall not pay salaries, wages, or other compensation to SLOMA for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to SLOMA for injury or sickness arising out of performing services hereunder.

10. PRESERVATION OF CITY PROPERTY. SLOMA shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from SLOMA’s operations, it shall be replaced or restored at SLOMA’s expense. The City’s facilities shall be replaced or restored to a condition as good as when the SLOMA began the work.

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

12. NON-DISCRIMINATION. In the performance of the Services, SLOMA agrees that it will not engage in, nor permit such subconsultants as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons.

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Agreement. All work done, and all materials furnished, if any, shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve SLOMA of any of its obligations under the Agreement.

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

SLOMA shall promptly notify City should SLOMA, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless SLOMA is prohibited by law from informing the City of such Discovery. City retains the right, but has no obligation, to represent SLOMA and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is averse to SLOMA in such proceeding, SLOMA agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by SLOMA. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

15. OWNERSHIP OF DOCUMENTS. SLOMA shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of the Services under this Agreement. SLOMA shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. SLOMA shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.

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

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understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto.

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

18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.

18.1. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon SLOMA at least thirty (30) days prior written notice. Upon receipt of said notice, SLOMA shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.

18.2. In the event this Agreement is terminated pursuant to this Section, the City shall pay to SLOMA the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City.

Upon termination of the Agreement pursuant to this Section, SLOMA will submit an invoice to the City

19. TERMINATION FOR CAUSE. If, during the term of the Agreement, the City determines SLOMA is not faithfully abiding by any term or condition contained herein, the City may notify SLOMA in writing of such defect or failure to perform. This notice must give SLOMA a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency.

19.1. If SLOMA has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of the Agreement and the City may terminate the Agreement immediately by written notice to SLOMA to said effect (“Notice of Termination”). Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the Agreement except to comply with the obligations upon termination.

19.2. In said event, SLOMA shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City’s Notice of Termination, minus any offset from such payment representing the City’s damages from such breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by SLOMA as may be set forth in the Agreement payment schedule; compensation for any other work or services performed or provided by SLOMA shall be based solely on the City’s assessment of the value of the work-in-progress in completing the overall scope.

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

20. INSURANCE SLOMA shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and made part of this Agreement.

21. SAFETY PROVISIONS. SLOMA shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

22. PUBLIC AND EMPLOYEE SAFETY. Whenever SLOMA operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees.

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

24.1 ASSIGNMENT. SLOMA shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. As required above, before retaining or contracting with any subconsultant for any services under this Agreement, City must consent to such assignment of performance in writing. For City to evaluate such proposed assignment, SLOMA shall provide City with the identity of the proposed subconsultant, a copy of the proposed written contract between SLOMA and such subconsultant, which shall include an indemnity provision similar to the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subconsultant carries insurance at least equal to that required by this Agreement or obtain a written waiver from City for such insurance.

24. AMENDMENT. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the appropriate review authority according to the City’s Financial Management Manual. SLOMA shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized by the City in advance and in writing.

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

To City: Parks and Recreation Department
City of San Luis Obispo
1341 Nipomo St.

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San Luis Obispo, CA 93401
To SLOMA: San Luis Obispo Museum of Art
1010 Broad Street
San Luis Obispo, CA 93401

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

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

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

CITY OF SAN LUIS OBISPO SAN LUIS OBISPO MUSEUM OF ART
a municipal corporation and charter city
_________________________________ ______________________________ Whitney, McDonald, City Manager By: Leann Standish, Executive Director Executive Director
APPROVED AS TO FORM: SAN LUIS OBISPO MUSEUM OF ART
_____________________________ ______________________________ J. Christine Dietrick, City Attorney By: Ermina Karim
Its: SLOMA Board President

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COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN

LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART
This COMMUNITY PARTNERSHIP AGREEMENT, hereinafter referred to as the Agreement, is made and entered into in the City of San Luis Obispo on _______________________________________ by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as CITY, and THE SAN LUIS OBISPO MUSEUM OF ART, a California non-profit organization, hereinafter referred to as SLOMA.

WITNESSETH:

WHEREAS, the CITY and SLOMA desire to continue to encourage public art that respects our past and embraces the future in a collaborative fashion; and WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and SLOMA as a way to continue to enhance the sense of place and community for residents through the proliferation of public art and education thereof; and WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and SLOMA has expressed a willingness to continue these shared services, in partnership and in cooperation with the CITY;
WHEREAS, SLOMA is uniquely qualified to provide the services contemplated under this Agreement due to its intimate knowledge of art, unique connection to the arts community, and its long experience producing and providing cultural art exhibits for the benefit of the community.

WHEREAS, SLOMA currently leases certain premises from the City located at 1010 Broad Street, which constitutes a portion of certain real property owned by the City within City limits, commonly known as Mission Plaza and identified as San Luis Obispo County Assessor Parcel No. 002-423-006, as per Lease Agreement No. 1 and the 2010 Lease Agreement incorporated therein. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described herein, CITY also desires to allow for shared use by SLOMA of the lawn area located immediately to the northeast of SLOMA’s existing leased Premises as shown on Exhibit A attached to this Agreement.

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

1. TERM. The term of this Agreement shall be for two (2) years from July 21, 2021 to July 21, 2023.

2. FINANCIAL MANAGEMENT. The CITY and SLOMA agree to a series of terms as outlined below to share in the financial costs associated with public art.

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2.1 PAYMENT TO SLOMA FOR PUBLIC ART SERVICES. The CITY shall compensate SLOMA $60,000 annually, for a total of $120,000, during this the twoyear term of this Agreement.

A. SLOMA shall invoice the CITY once per year of this Agreement for these costs by no later than August 1 each year of this Agreement.

B. The CITY shall remit payment to SLOMA within thirty (30) days from the date of receipt by CITY of an invoice from SLOMA.

3. PUBLIC ART ROLES AND RESPONSIBILITIES. The City of San Luis Obispo Parks and Recreation Director may authorize periodic modifications, within the scope of his/her financial and/or operational authority, to the Roles and Responsibilities as he/she may deem necessary or appropriate to the partnership between the CITY and SLOMA. Any amendment or modifications to the Roles and Responsibilities shall be in writing and may only be made with the mutual consent of both parties.

A. SCOPE OF SERVICES
i. Both parties agree to collaborate on the public art program projects as outlined in the obligations set forth below.
ii. The CITY Public Art Manager and SLOMA staff will meet monthly during the two (2) year term of this Agreement to review the specific public art projects outlined in SLOMA obligations, including marketing and promotion efforts.

B. CITY OBLIGATIONS
i. The CITY will provide access and training to SLOMA relative to the City’s Public Art Policies and Procedures Manual.
ii. The CITY Public Art Manager will continue to manage the Utility Box Art Program.
iii. The CITY Public Art Manager will continue to address maintenance needs of the public art program for the current collection of artwork. iv. The CITY Public Art Manager will continue to manage the private development public art program.
v. The CITY Public Art Manager will set monthly reoccurring meetings with SLOMA Staff during the two (2) year term.
vi. In accordance with paragraph 2 of this Agreement, the CITY shall remit annual payments to SLOMA during the two (2) year term of this Agreement.
vii. The CITY will work with SLOMA on payment to selected Artists upon satisfactory completion of work and receipt of a request for payment; through the Public Art Fund.
viii. The City will continue to hold and manage the Public Art Fund in its sole discretion.

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COMMUNITY PARTNERSHIP AGREEMENT – CITY AND SLOMA Page 3 C. SLOMA OBLIGATIONS
i. SLOMA will provide all coordination of public art for the CITY during the two-year term of this Agreement. Projects projects shall include:
a) Downtown Public Art Installations: This project focuses on public art installations in the downtown and creative
placemaking public art, including murals and temporary public art installations;
b) Roundabout Public Art Installations: This project is to initiate planning for installation of public art within current or planned City roundabouts.
c) “Anholm Neighborhood Greenway” Project: This project is to focus on the Chorro Street underpass and concept plans for the greenway. The final project and branding will be changing as part of the final design.
ii. SLOMA public art project coordination process shall include the following:
a) Coordinate and facilitate solicitation of the Request for Proposals / Call for Artists for each project.
b) Appoint art jury for each project; coordinate and facilitate jury process.
c) Serve as Public Art project liaison between selected Artists and CITY.
d) Final coordination of project approvals through CITY Advisory Bodies and CITY COUNCIL, as may be required.
e) Secure planning/building permits, as may be required, and works with artist to fabricateartwork.
f) Coordinate with CITY payment schedule to selected Artist. g) Install approved artwork.
iii. SLOMA will provide project updates each month during CITY and SLOMA monthly meetings.

4. SHARED USE OF ADJACENT CITY PREMISES. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described above, CITY also desires to allow SLOMA shared use of the lawn area located immediately to the northeast of SLOMA’s existing leased Premises as shown on Exhibit A which is attached hereto and is incorporated herein by reference (the “Shared Use Area”). During the term of this Agreement, SLOMA shall be permitted to install public art exhibits such as sculpture or other art mediums appropriate for an outdoor environment, as well as conduct outdoor educational activities, on the Shared Use Area at such times and on such conditions as approved by the CITY. Any such outdoor public art exhibits shall be subject to the Public Art Policies and Procedures Manual, including the applicable obligations described in paragraph 3(C)(ii), above, including conducting the public art jury process and ensuring all planning and building permits are in place as may be required. Any educational activities or events shall be subject to the standard terms and conditions that would otherwise be applicable with a DocuSign Envelope ID: ADDA64E5-4001-4D1C-9D0A-F41CB73FB627

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COMMUNITY PARTNERSHIP AGREEMENT – CITY AND SLOMA Page 4 temporary special events permit issued by City’s Parks and Recreation Department.

CITY shall be responsible for normal and customary maintenance and upkeep of the Shared Use Area (e.g. mowing, irrigation, etc.). SLOMA shall be responsible for maintenance, security, special insurance provisions, and any and all costs whatsoever associated with activities and events that occur under the direction of SLOMA within the Shared Use Area, and with the installation of outdoor art exhibits or sculpture that SLOMA may place within the Shared Use Area.

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

6. AGREEMENT TERMINATION. Either party may terminate this Agreement for convenience provided that thirty (30) days written notice is given to the other party.

The Agreement may be terminated by either party for cause, provided that written notice has been given to the other party, stating the reasons for the intended termination and providing the other party with at least ten (10) days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within ten (10) days or such longer period as is specified within the written notice, or to make substantial progress toward cure to the satisfaction of the party demanding cure, this Agreement may be terminated thirty (30) days after receipt of the notice as specified herein.

7. AGREEMENT AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be presented in writing by the City’s Parks and Recreation Director and SLOMA Executive Director to the City Manager or his/her designee and shall be effective only upon final approval by the City Manager or his/her designee.

8. INSURANCE AND LIABILITY. SLOMA’s insurance and liability requirements shall be the same as per Lease Agreement No. 1 and the 2010 Lease Agreement, incorporated therein, as shown under Paragraph 20.

9. HOLD HARMLESS AND INDEMNIFICATION. SLOMA shall defend, indemnify, and hold the CITY and its elected officials, officers, employees and free and harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to CITY employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by any acts or omissions of SLOMA, and/or its agents, officers, employees or volunteers, in performing its responsibilities hereunder, including all expenses of investigating and defending against same; provided, however, that SLOMA’s duty to defend, indemnify and hold harmless shall not include any claims or liability arising from the sole active negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers
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10. NOTICE. All written notices to the parties hereto shall be sent by United States Postal Service, postage prepaid, by registered or certified mail addressed as follows:

CITY: Parks & Recreation Director
City of San Luis Obispo
1341 Nipomo St.

San Luis Obispo, CA 93401
SLOMA: Executive Director
San Luis Obispo Museum of Art
1010 Broad Street
San Luis Obispo, CA 93401

11. AUTHORITY TO EXECUTE AGREEMENT. CITY and SLOMA each covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

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

ATTEST: CITY OF SAN LUIS OBISPO
____________________________ By:___________________________ Teresa Purrington Mayor Heidi Harmon
City Clerk
APPROVED AS TO FORM: SAN LUIS OBISPO MUSEUM OF
ART
By:___________________________
J. Christine Dietrick Leann Standish
City Attorney Executive Director
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EXHIBIT A

SHARED USE AREA
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1 COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE

SAN LUIS OBISPO MUSEUM OF ART FOR PUBLIC ART PROFESSIONAL SERVICES This community partnership agreement ("Agreement") is made and entered into in the City of San Luis Obispo as of July 21, 2023 by and between the City of San Luis Obispo, a municipal corporation and charter city, hereinafter referred to as "City", and San Luis Obispo Museum of Art, a non-profit public benefit corporation (501-C3), hereinafter referred to as "SLOMA".

WITNESSETH:

WHEREAS, the City is the legal owner of the property located at 1010 Broad Street in the City of San Luis Obispo as shown on Exhibit A; and
WHEREAS, SLOMA currently leases certain premises from the City located at 1010 Broad Street, which constitutes a portion of certain real property owned by the City within City limits, collectively known as Mission Plaza and identified as San Luis Obispo County Assessor Parcel No. 002-423-006. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described herein, CITY also desires to allow for shared use by SLOMA of the “lawn area” located immediately to the northeast of SLOMA’s existing leased Premises as shown on Exhibit A attached to this Agreement; and
WHEREAS, the City desires to maintain a mutually beneficial relationship with SLOMA as a way to continue to enhance the sense of community through public art for the residents of San Luis Obispo; and
WHEREAS, consistent with adopted City planning documents, including the Downtown Concept Plan, current Major City Goals that focus on economic vitality and tourism serving objectives, the City desires to create a cultural arts district adjacent to the Mission Plaza and anchored by the Museum of Art (as well as by the History Center, Children’s Museum, and forthcoming SLOREP); and
WHEREAS, the City Council established and funded a public art program in 1990 (Resolution No. 6811 (1990 Series)); and
WHEREAS, SLOMA is uniquely qualified to provide the public art services contemplated under this Agreement due to its intimate knowledge of art, unique connection to the arts community, and its long experience producing and providing cultural art exhibits for the benefit of the community; and
WHEREAS, SLOMA is situated to provide technical expertise, artists relationships, project management, communications, and engagement leadership through the acquisition of public art pieces and/or the activation of public spaces through the integration of public art and/or the acquisition of signature art pieces to compliment gateways into the City. SLOMA desires to continue to activate the Mission Plaza lawn and outdoor space through installations, art activities, and educational opportunities; enhancing the City’s cultural arts district; and DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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2 WHEREAS, the City Council recognizes that public art is fundamentally different from most other types of public works in that when selecting public art, the CITY is looking for an individual expression or unique idea, which makes sole source selection and acquisition of completed pieces appropriate means of acquiring public art; and
WHEREAS, to ensure an efficient acquisition process, the City Council has delegated to the City Manager the authority to approve acquisition of public art pieces by SLOMA under this Agreement as set forth in criterion established under this agreement; and WHEREAS, the CITY and SLOMA desire to continue to encourage public art that respects the community’s past and embraces the future in a collaborative, diverse, and equitable fashion; and
WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and SLOMA as a way to continue to enhance the sense of place and community for residents through the proliferation of public art and education thereof; and WHEREAS, City staff will continue to focus directly on the other equally valuable components of the City’s Public Art program, including support of the local art community, activation of space through art programming and installation, infrastructure or public art maintenance, communications and outreach, policy development and guidance, and support of private development art installation; and
WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and SLOMA has provided a proposal to the City expressing a desire to support public art installations to mutually benefit both agencies.

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

1. TERM OF AGREEMENT The term of this Agreement shall be for approximately two (2) years commencing on July 21, 2023, and terminating on June 30, 2025.

2. FINANCIAL MANAGEMENT. The CITY and SLOMA agree to a series of terms as outlined below.

2.1. The CITY shall compensate SLOMA $100,000 annually, for a total of $200,000, during the term of this Agreement for the general services it provides under the terms of this agreement.

2.1.a. SLOMA shall invoice the CITY on a biannual basis (for $50,000 each half-year) for this service by no later than July 1 and January 1 each year of this Agreement.

2.1.b. The CITY shall remit payment to SLOMA within thirty (30) days from the date of receipt by CITY of its biannual invoice for general community art services from SLOMA.

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3 2.2. SLOMA shall make a minimum of three different art acquisitions per year on behalf of the CITY, as defined below. CITY shall pay for purchase or lease of public art pieces facilitated by SLOMA on the City’s behalf under the terms of this agreement. For the length of this agreementsaid costs shall not to exceed $400,000 annually which has been budgeted for the purpose of SLOMA’s facilitated acquisition of three different types of art as follows:

Acquisitions and Installation of Art on Behalf of
the City by SLOMA for each year

MAXIMUM ANNUAL CITY FUNDED
BUDGET
(1) Roundabout Art – one or more per year Up to $250,000 annually (1) Rotating installation on the Mission Plaza
Lawn (Include updates to the platform),
installation and deinstallation – one or
more per year
Up to $75,000 annually
(1) Additional place making installation on
agreed upon location within the City –
one or more per year
Up to $75,000 annually
Table 1.0: Installation Funded Amounts

2.2.a. PURCHASE OR LEASE OF ART: The CITY will purchase or lease the art directly from the artist. SLOMA will coordinate payment and contract signing between CITY and artist, as outlined in EXHIBIT B: AGREEMENT FOR COMMISSION OF PUBLIC ARTWORK. The City will pay a 40% deposit at time of contract execution and the remaining due at time of completion.

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4 2.2.b.2. Expenses will be reimbursed up to the amount predetermined by City Council and budget direction and confirmed by Recreation Manager prior to purchase. Costs that exceed this cost must be preapproved by City staff.

2.2.b.3. Costs for purchase and or lease of art plus the installation shall not exceed the original quote and shall remain under the amount outlined in Table 1.0.

2.2.c. For each project, CITY OF SAN LUIS OBISPO AGREEMENT FOR COMMISSION OF PUBLIC ARTWORK (Exhibit B) will be completed between the CITY and artist directly. SLOMA will act as liaison to ensure signatures are collected prior to payment or services.

2.2.d. Upon payment, the art becomes a part of the City’s collection (permanent or temporary) and all rights belong to the CITY as outlined in agreement.

2.2.e. SLOMA may use public art for promotion and is expected to recognize the City as funder and program manager.

3. CITY ROLES AND RESPONSIBILITIES. The City of San Luis Obispo Parks and Recreation Director may authorize periodic modifications, within the scope of financial and/or operational authority, to the Roles and Responsibilities as may deem necessary or appropriate to the partnership between the CITY and SLOMA. Any amendment or modifications to the Roles and Responsibilities shall be in writing and may only be made with the mutual written consent of both parties.

4. SCOPE OF SERVICES
Both parties agree to collaborate on the public art program projects as outlined in the obligations below.

A. CITY OBLIGATIONS
i. The CITY will provide access and guidance to SLOMA relative to the CITY’s Public Art Policies and Procedures Manual.
ii. The CITY will continue to manage the Utility Box Art Program. iii. The CITY will continue to address maintenance needs of the public art program for the current collection of artwork, including artwork installed though the SLOMA/City partnership.
iv. The CITY will continue to manage the private development public art program.

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5 v. The CITY will set monthly reoccurring meetings with SLOMA Staff during the two (2) year term.
vi. In accordance with paragraph 2 of this Agreement, the CITY shall remit quarterly payments to SLOMA during the two (2) year term of this Agreement. vii. The CITY will work with SLOMA regarding payment process to selected Artists as outlined in this Agreement under “Financial Management.” viii. The City will continue to hold and manage the Public Art Fund in its sole discretion.
ix. The City will continue to communicate purchasing limits, which include installation and purchase or lease of art, prior to onset of each project to SLOMA.
x. Contracts for purchase or lease of art will be signed directly between the City and the artist.
xi. The City will provide direction regarding priority locations for art installations xii. City Public Works staff will continue to work with SLOMA regarding installation of art in public spaces, as appropriate and necessary for the nature of each project and in accordance with the CITY’S Public Art policy and the terms of this Agreement.
xiii. City Community Development staff will continue to work with SLOMA to support permitting necessary for installations.
xiv. City Communications staff will continue to promote art installations, joint projects, and the public art program, highlighting SLOMA as valued partners. xv. City Tourism staff will continue to promote Public Art through social media marketing and tourism outreach.
xvi. City staff will continue to notify SLOMA of Mission Plaza and street closures that may impact the Museum prior to non-emergency planned closures. City staff will continue to activate and draw visitors to the Mission Plaza through beautification, outreach, special event permitting and space activation. xvii. City staff will continue to maintain the Mission Plaza Park, restrooms, lighting, and all spaces where Public Art is installed under the terms of this agreement.

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6 B. SLOMA OBLIGATIONS
i. SLOMA will provide coordination of public art for the CITY during the two-year term of this Agreement. Projects shall include the following and are subject to City approval and available funds:

1. Roundabout Public Art Installations:
a. A minimum of one Roundabout per year. Public art may be installed at additional roundabouts with prior approval from Recreation Manager based on available City
resources. This project is to initiate planning for installation of public art within current or planned City roundabouts.

2. Annual rotating art installation on the Mission Plaza lawn – a minimum of one.

3. A minimum of one additional “ephemeral” project.
ii. SLOMA will work with City staff to define a proposed and maximum budget to be spent on each of these projects. Should the costs for installation exceed the budgeted costs, SLOMA will be responsible for communicating these differences to the CITY prior to exceeding the balance or committing a difference of compensation to vendors. If funds are not available nor approved, SLOMA will have the option to supplement the costs and will be responsible for paying the difference.
a. City fees will only be used to pay for acquisition and/or installation of art
b. Reimbursement for art acquisition and/or installation requires SLOMA to submit a receipt of art and/or installation as outlined under the Agreement “Financial Management” section.
c. For each installation, SLOMA will provide an invoice to define terms of what expenses will be necessitated prior to, during and after the installation.
d. Costs of travel for staff or artists is not reimbursable without prior approval as outlined in proposal.
e. In the event travel expenses will be reimbursed, City will pay hotel rates as recommended in the US General Services
Administration and a per diem as outlined by City policy. f. City fees may not be used pay for: alcohol, meals, personal gifts, travel costs in excess of what was guaranteed in proposal.

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7 iii. SLOMA will Acquire or facilitate temporary acquisition of art on behalf of the City by the following process:
a. City staff (Recreation Manager) and SLOMA will discuss priority areas and ideas for acquisition and installation of public art. b. SLOMA will contact Public Works City staff to discuss challenges, obstacles, opportunities or necessities of installation in the public space.
c. SLOMA will pursue acquisition of art pursuant to the guidance set forth in subsection (iv) below.
d. SLOMA will present potential art piece and location to an ad hoc group that has been preapproved by City staff (to include a variety of input including neighbors to the installation location, any adjacent businesses, local artists, DEI representative, and City staff) e. SLOMA will assist City Staff in the preparation of a sole-source justification memo to be provided to the City Manager with a City Manager Report. The City Manager Report shall explain why the selected art conforms with the guidance set forth in subsection (iv) below.
f. SLOMA will serve as liaison to ensure artist signs and completes an Agreement for Commission of Public Art Work, Exhibit B, with the City and provide all documents to the CITY.
g. SLOMA will recognize the City as owner/lessor of the art in all communications regarding the art.
h. The agreement in place will be made directly between the City and the artist. Any agreement that SLOMA makes directly with the artist shall not interfere with the completion of the City’s contract. i. The City will retain permanent physical ownership of a piece or temporary ownership of a piece and all decisions regarding these pieces shall be made directly with the Recreation Manager. j. SLOMA will provide the City with signed Statement of Authenticity from the artist or a receipt from the artist.
iv. The following criteria and considerations shall guide SLOMA’s process for selecting art on behalf of the City:

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8 a. In recognition of the fact that there are costs incurred by an artist associated with submitting a proposal package, with no guarantee that their efforts will be compensated if their piece is not selected, SLOMA shall pursue art pieces that are obtained via negotiated agreement with the artist.
b. SLOMA shall, in their expert discretion, pursue negotiations with artists who are nationally or internationally renowned. c. SLOMA shall pursue art pieces that:
i. Are durable, can withstand the elements and exposure to public spaces, and are resistant to vandalism.
ii. Can reasonably be maintained by the City after conveyance to the City
iii. Enhance the sense of place in the City
iv. Encourage observers to understand each other and the world around them.
v. In managing the installation of selected public art, SLOMA shall:

1. Provide a timeline for completing the steps above and communicate changes to the Recreation Manager

2. Serve as Public Art project liaison between selected Artists and CITY.

3. Secure planning/building permits, as may be required, and works with artist to fabricate artwork.

4. Communicate with City Public Works for all work on the Mission Plaza lawn.

5. Repair any damage to City property during installation.

6. Coordinate with CITY payment schedule to selected Artist.

7. Coordinate and oversee the installation of the approved artwork. vi. All marketing involving artwork paid for by the City will be tagged to the City and City will be given full credit of ownership.

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9 vii. Ribbon Cuttings will be coordinated by SLOMA after working with City staff to coordinate available dates. The City will be invited to present at each ribbon cutting.
viii. Promotions shall be approved by City staff, including Communications Coordinator or staff delegated thereby, prior to posting. ix. A sign for all art installations will be included in the cost of installation, shall follow City Communications guidelines and shall be approved prior to printing. x. Continue to provide a monthly written update to the Recreation Manager in advance of monthly meetings.

Installation of any such outdoor public art exhibits shall be subject to the Public Art Policies and Procedures Manual, ensuring all planning and building permits are in place as may be required. Any educational activities or events shall be subject to the standard terms and conditions that would otherwise be applicable with a temporary special events permit issued by City’s Parks and Recreation Department. CITY shall be responsible for normal and customary maintenance and upkeep of the Shared Use Area (e.g., mowing, irrigation, etc.).

SLOMA shall be responsible for maintenance, security, special insurance provisions, and any and all costs whatsoever associated with activities and events that occur under the direction of SLOMA within the Shared Use Area, and with the installation of outdoor art exhibits or sculpture that SLOMA may place within the Shared Use Area. In the event that shared space is damaged during installation or an event in shared space because of actions, or inactions, taken by SLOMA or their contractors, SLOMA will be responsible for costs of repair in compliance with City standards and staff approval.

6. LICENSES AND PERMITS. At all times during the term of this Agreement, SLOMA shall have in full force and effect, all licenses required of it by law for the performance of the Services described in this Agreement. SLOMA shall procure all permits and licenses, pay all charges and fees, and give all notices necessary under this Agreement.

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

9. INDEPENDENT COMMUNITY PARTNER.

9.2. No employee benefits shall be available to SLOMA in connection with the performance of this Agreement. Except for the fees paid to SLOMA as provided in the Agreement, City shall not pay salaries, wages, or other compensation to SLOMA for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to SLOMA for injury or sickness arising out of performing services hereunder.

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11 12. NON-DISCRIMINATION. In the performance of the Services, SLOMA agrees that it will not engage in, nor permit such subconsultants as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons.

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

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

SLOMAshall promptly notify City should SLOMA, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request (“Discovery”), court order, or subpoena from any person or party regarding this Agreement, unless the City is a party to any lawsuit, arbitration, or administrative proceeding connected to such Discovery, or unless SLOMA is prohibited by law from informing the City of such Discovery. City retains the right, but has no obligation, to represent SLOMA and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is averse to SLOMA in such proceeding, SLOMA agrees to cooperate fully with City and to provide the opportunity to review any response to Discovery requests provided by SLOMA.

However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

15. OWNERSHIP OF DOCUMENTS. SLOMAshall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of the Services under this Agreement. SLOMA shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. SLOMA shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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12 documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.

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

18. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE.

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13 18.2. In the event this Agreement is terminated pursuant to this Section, the City shall pay to SLOMA the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, SLOMA will submit an invoice to the City

20. INSURANCE SLOMA shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached to and made part of this Agreement.

21. SAFETY PROVISIONS. SLOMA shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety.

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

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

To City: Parks and Recreation Department
City of San Luis Obispo
1341 Nipomo St.

San Luis Obispo, CA 93401
To SLOMA: San Luis Obispo Museum of Art
1010 Broad Street
San Luis Obispo, CA 93401
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15 26. GOVERNING LAW. Any action arising out of this Agreement shall be brought in the Superior Court of San Luis Obispo County, California, regardless of where else venue may lie. The validity, interpretation, construction and performance of this Agreement, and all acts and transactions pursuant hereto and the rights and obligations of the Parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law.

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

CITY OF SAN LUIS OBISPO SAN LUIS OBISPO MUSEUM OF ART
a municipal corporation and charter city
_________________________________ ______________________________ Derek Johnson, City Manager By: Leann Standish
Its: Executive Director
APPROVED AS TO FORM: SAN LUIS OBISPO MUSEUM OF ART
_____________________________ ______________________________ J. Christine Dietrick, City Attorney By: Barbara Bell
Its: SLOMA Board President
DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451 Assistant City Attorney
Markie Kersten

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16 EXHIBIT A: Proposal from SLO Museum of Art Received on May 3, 2023, page 1 of 2 DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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17 EXHIBIT A: Proposal from SLO Museum of Art Received on May 3, 2023, page 2 of 2 DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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18 Exhibit B: Agreement for Commission of Public Art Work, (12 pages)

CITY OF SAN LUIS OBISPO

AGREEMENT FOR COMMISSION OF PUBLIC ART WORK
This agreement (Agreement) is made and entered into in the City of San Luis Obispo on ____________[date], by and between the City of San Luis Obispo, a municipal corporation and charter city (CITY) and [Artist](ARTIST) (collectively referred to as the “PARTIES”).

DESCRIPTION OF WORK

1. The ARTIST is a recognized professional artist, and the CITY acknowledges sufficient familiarity with the style and quality of the ARTIST’S work, and; the CITY desires the ARTIST to create an original work of art entitled ________ (“the WORK”) as more fully described in Exhibit A.

SCOPE OF WORK

2. For services rendered herein, the CITY shall pay the ARTIST a sum not to exceed $________ for all work performed during the period beginning ______________through ________________. The ARTIST shall furnish services as described in Exhibit B of this Agreement.

3. Terms and Conditions for Payment are attached in Exhibit C of this Agreement

4. The services to be required of the ARTIST under this Agreement shall be completed in accordance with the Schedule for Completion of the Work as proposed by the ARTIST and approved by the CITY, as described in Exhibit D, provided that such time limits may be extended or otherwise modified by written agreement between the ARTIST and the CITY.

CHANGES IN SCOPE AND ADDITIONAL WORK

5. All changes to the WORK determined to be necessary by the ARTIST or requested by the CITY shall be in writing. For all changes agreed upon by the Parties, this Agreement shall be amended in writing, specifying the agreed upon changes, including but not limited to a description of services, additional budget, payment schedule and timetable.

6. Change requests by the ARTIST shall be submitted to the CITY for further review and approval. No services for which additional compensation will be charged shall be provided by the ARTIST without the prior written authorization by the CITY.

7. The ARTIST may, but shall not be obligated to, agree to a change requested by the City. If the ARTIST does not agree to a City change request, the CITY shall be entitled to terminate the Agreement in accordance with this Agreement and engage another artist to complete the WORK.

RESPONSIBILITIES OF THE ARTIST

8. The ARTIST shall be obligated to perform the services, complete the design, fabrication, and installation of the WORK in substantial conformity with the services described in Exhibit B and shall complete such services in accordance with the schedule set forth in Exhibit C.

9. The ARTIST and the CITY agree that the ARTIST shall retain artistic control of the ARTIST’S services performed under this Agreement, subject only to the limitations imposed in Exhibit B.

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19 The ARTIST agrees that an essential element of this Agreement is the skill and creativity of the ARTIST.

The ARTIST shall not assign the creative or artistic portions of the WORK to another party for the production of the WORK without the written consent of the CITY. Failure to conform to this provision may be cause for termination of this Agreement, at the sole option of the CITY.

10. The ARTIST shall supply the CITY with (a) a current professional resume, (b) detailed information concerning the materials used in the creation of the WORK, and (c) a detailed maintenance program and schedule for the WORK.

11. The ARTIST shall be responsible for designing the WORK so that it can be constructed without exceeding the approved overall budget for the project.

12. The ARTIST shall, without additional compensation, correct or revise any errors, omissions, or other deficiencies in the ARTIST’S WORK.

13. The ARTIST shall provide monthly progress reports and/or deliverables to the CONTRACT ADMINISTRATOR (defined in paragraph 17).

14. If any part of the ARTIST'S WORK depends on proper execution or results of tasks performed by the CITY, or a third party responsible to the CITY, the ARTIST shall, prior to proceeding with his or her WORK, promptly report to the CITY any apparent discrepancies or other defects in such other work which renders it unsuitable for proper execution and results by the ARTIST. Failure of the ARTIST to report a discrepancy or defect shall constitute an acceptance of the CITY'S or third party's performance as fit and proper.

15. If the ARTIST is involved in the execution, fabrication, transportation, inspection and/or installation of an artwork, the following provisions shall apply:
a. The ARTIST shall clean-up CITY property and promptly remove any ARTIST equipment, excess materials etc. from City property as requested by the CITY. b. ARTIST shall meet with the CONTRACT ADMINISTRATOR or other CITY personnel, or third parties as necessary, on all matters connected with carrying out of ARTIST’S services described in Exhibit B. Such meeting shall be held at the request of either party hereto.

RESPONSIBILITIES OF THE CITY

16. The CITY shall designate staff as the CONTRACT ADMINISTRATOR on whose instructions or determinations all Parties may rely on in administration of this Agreement.

17. CITY shall assist ARTIST by placing at ARTIST'S disposal all public information it has available pertaining to the Project.

18. CITY shall arrange for access so that ARTIST may enter upon public and private property as required for ARTIST to perform the services under this Agreement.

19. CITY shall give prompt written notice to ARTIST whenever the CITY observes or otherwise becomes aware of any development that affects the scope or timing of ARTIST'S services.

WARRANTIES/STANDARDS

20. The ARTIST represents and warrants that (a) the design or WORK being commissioned is original; (b) that the ARTIST shall not sell or reproduce the WORK, separate from portfolio reproductions allowed under paragraph 25 of this Agreement, or allow others to do so without the prior written consent of the CITY; (c) at the time of transfer of the WORK to the [CITY], the ARTIST is the sole owner of the WORK and of all rights therein, including copyright trademark and other proprietary rights therein; (d) the ARTIST is and will be the sole creator of the WORK; (e) the ARTIST has and will have full and sufficient right to assign all rights granted herein and to waive all rights relinquished herein; (f) the DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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20 ARTIST is not under any obligation to transfer or sell any of the WORK to a third party; (g) the WORK has not been and will not be published under circumstances which have or will cause a loss of any copyright, trademark or other proprietary rights therein; (h) the WORK does and will not infringe on any patent, copyright, trademark or other proprietary rights, privacy rights or other rights of any third party, nor has any claim (whether or not embodied in a legal action or not) of such infringement been threatened or asserted, nor is such a claim pending, against the ARTIST (or, insofar as the ARTIST is aware, against any entity from which ARTIST has obtained any rights).

21. The ARTIST shall guarantee the WORK to be free from faults of material and workmanship for a period of five (5) years after installation and final acceptance by the CITY. The ARTIST shall deliver the WORK to the CITY free and clear of any liens from any source whatever. These guarantees shall apply only to those aspects of the WORK which is entirely that of the ARTIST or persons responsible to the ARTIST, as installed, and shall not apply to materials or workmanship of projects in which the ARTIST’S work is integrated or combined, or to materials purchased, acquired, or installed by a person or entity not responsible to the ARTIST.

22. The ARTIST shall faithfully perform the services required under this Agreement in accordance with standards of care, skill, training, diligence and judgment provided by highly competent professionals who perform work of a similar nature to the WORK described in this Agreement.

WAIVER OF MORAL RIGHTS

23. As a material part of the consideration provided by the ARTIST under the terms of this Agreement, the ARTIST waives, releases and disclaims any and all rights, demands or claims as may arise at any time and under any circumstances against the CITY, its agents, officers, employees, agents, successors and assigns that the ARTIST may have with respect to the WORK and any and all works of art produced under the terms of this Agreement arising under the federal Visual Artists Rights Act of 1990 (17 U.S.C. §§ 106A and 113(d)), the California Art Preservation Act (Cal. Civil Code § 987 et seq.), and any other local, state, federal or international laws that convey rights of the same nature as those conveyed under 17 U.S.C. section 106A, Cal. Civil Code section 987 et seq., or any other type of moral right protecting the integrity of works of art. The ARTIST expressly agrees that the Work performed hereunder is “Work Made for Hire” under the provisions of 17 U.S.C. section 101. The provisions of this paragraph shall apply to modify the ARTIST’S rights of attribution and integrity as set out in the Visual Artists Rights Act, 17 U.S.C §§ 106A and 113(d) (“VARA”), the California Art Preservation Act, Cal. Civil Code §§ 987 and 989 (“CAPA”), and any rights arising under United States federal or state law or under the laws of another country that convey rights of the same nature as those conveyed under VARA and CAPA, as against the CITY of SAN LUIS OBISPO and its agents, officers, employees, agents, successors and assigns. The CITY has the absolute right to change, modify, destroy, remove, relocate, move, replace, transport, repair or restore the WORK, however, the CITY shall provide notice to the ARTIST prior to any modification, change, or destruction of the WORK.

24. The ARTIST shall not retain ownership of or any right, title or interest in any of the WORK including, but not limited to, in any related trademarks, copyrights, or other proprietary rights or rights of reproduction.
a. [ARTIST hereby irrevocably assigns exclusively to the CITY, and its successors and assigns, all right title and interest in or to the WORK and in the copyright of the WORK, and all extension and renewals thereof in the United States and all foreign countries. The ARTIST hereby waives all moral rights related to each such WORK including, but not limited to, any and all rights of DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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21 identification of authorship and any and all rights of approval, restriction or limitation on use or subsequent modifications. The PARTIES agree that the WORK and all such rights, title and interest in or to the WORK belong to and are being sold and assigned in their entirety to the CITY for whatever uses it desires without any restrictions or obligations or payments to the ARTIST, and that the CITY does and shall at all times own, solely and exclusively, complete and unencumbered, all right and title in and to all of the WORK worldwide, and any modifications thereto and any derivative works based thereon (including, but not limited to, all patent, copyright, trademark, service mark and trade secret rights). The Artist hereby transfers all rights of reproduction, as that term is defined in California Civil Code Section 982, in the Work and the right to reproduce the Work in any manner whatsoever for commercial and noncommercial purposes. Nothing contained herein shall be deemed to constitute a mere license or franchise in the CITY.]
b. ][The CITY hereby authorizes the ARTIST to make, and to authorize the making of photograph reproductions of the WORK for self-promotional, non-commercial, purposes, including use in the ARTIST’S own personal portfolio or website or use in self-promotional mailers provided such mailers are provided at no cost. All such self-promotional materials shall place a copyright notice in a form acceptable to the CITY and include a credit line, unless otherwise requested by the CITY in writing, as follows: “[NAME of WORK], Owned and Commissioned by City of San Luis Obispo.” The CITY has sole discretion to determine whether a use is selfpromotional. The CITY shall provide written notice to the ARTIST if the CITY determines a use does not meet the terms of this section. Upon receipt of such notice, the ARTIST shall immediately cease and desist the use of the reproduction.]

25. The ARTIST agrees that the WORK and services performed under this Agreement shall comply with all applicable patent, trademark and copyright laws, rules, regulations and codes of the United States.

The ARTIST further agrees that the WORK will not utilize any protected patent, trademark or copyright in performance of work under this Agreement unless the ARTIST has obtained proper permission and all releases and other necessary documents. If the ARTIST specifies any material, equipment, process or procedure which is protected, the ARTIST shall disclose such patents, trademarks and copyrights in the construction drawings and technical specifications.

TERMINATION

26. The City shall have the right to terminate this Agreement, with or without cause. The CITY shall give written notice to the ARTIST ten (10) calendar days prior to effective date of the termination. If terminated the ARTIST agrees to cease all work under this Agreement on or before the effective date of such notice. All completed and uncompleted WORK up to the date of receipt of the written notice of termination shall become property of the CITY.

27. If the Agreement is terminated for cause, the notice shall identify the defect for which the Agreement is being terminated and provide the ARTIST an opportunity to cure. If the ARTIST cures the identified defect to the CITY’S satisfaction prior to the effective date of the termination (within ten (10) calendar days of receipt of the notice of termination), the notice of termination shall not go into effect.

28. In the event this Agreement is terminated, due to no fault or failure of performance by the ARTIST, the CITY shall pay the ARTIST based on the percentage of services satisfactorily performed and/or WORK satisfactorily produced at the time of termination. But in no event shall the ARTIST be entitled to receive more than the amount that would be paid to the ARTIST for full performance of the services required by this Agreement. The CITY reserves the right to delay such payment until completion or confirmed abandonment of the project, as may be determined in the CITY’S sole discretion, to permit a full and complete accounting of costs.

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22 29. If, because of the death, or any other occurrence, it becomes impossible for the ARTIST to render services or perform work under this Agreement, the Agreement shall be deemed terminated.

INSURANCE

30. Artist shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit E attached to and made part of this Agreement.

INDEMNIFICATION AND DEFENSE

31. To the fullest extent permitted by law (including, but not limited to California Civil Code Sections 2782 and 2782.8), the ARTIST shall indemnify, defend, and hold harmless the CITY, and its elected officials, officers, employees, volunteers, and agents (“CITY Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”), arising out of (i) the ARTIST’S performance or ARTIST’S failure to perform its obligations under this Agreement, (ii) out of the operations conducted by ARTIST, including the CITY’S passive negligence, except for such loss or damage arising from the sole or active negligence or willful misconduct of the CITY, (iii) from any noncompliance or violations of applicable laws, ordinances, codes and regulations, and/or (iv) from the performance of the WORK or services under this Agreement which infringes upon any patent, trademark or copyright protected by law. In the event the CITY Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from ARTIST’S performance of this Agreement, the ARTIST shall provide a defense to the CITY Indemnitees or at the CITY’S option, reimburse the CITY Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

CIVIL RIGHTS COMPLIANCE / EQUAL OPPORTUNITY ASSURANCE

32. Every supplier of materials and services and all artists doing business with the CITY shall be in compliance with the applicable provisions of the Americans with Disabilities Act of 1990, and shall be an equal opportunity employer as defined by Title VII of the Civil Rights Act of 1964 and including the California Fair Employment and Housing Act of 1980. As such, the ARTIST shall not discriminate against any person on the basis of race, religious creed, color, national origin, ancestry, disability, medical condition, marital status, age or sex with respect to hiring, application for employment, tenure or terms and conditions of employment. The ARTIST agrees to abide by all of the foregoing statutes and regulations, and any similar requirements in any ordinances and resolutions of the City of San Luis Obispo.

MISCELLANEOUS

33. INDEPENDENT CONTRACTOR. Artist is and shall at all times remain as to the City a wholly independent contractor. The personnel performing the services under this Agreement on behalf of the ARTIST shall at all times be under the ARTIST’S exclusive direction and control. Neither CITY nor any of its officers, employees, or agents shall have control over the conduct of the ARTIST or any of the ARTIST’S officers, employees, or agents, except as set forth in this Agreement. The ARTIST shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the CITY. The ARTIST shall not incur or have the power to incur any debt, obligation, or liability whatsoever against CITY, or bind CITY in any manner. No employee benefits shall be available to the ARTIST in connection with the performance of this Agreement. Except for the fees paid to the ARTIST as provided in the Agreement, the CITY shall not pay salaries, wages, or other DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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23 compensation to the ARTIST for performing the services hereunder for the CITY. The CITY shall not be liable for compensation or indemnification to Artist for injury or sickness arising out of performing services hereunder.

34. RECORDS. The ARTIST shall maintain accurate accounting records and other written documentation pertaining to the costs incurred for this project. Such records and documentation shall be made available to the CITY upon request during the period of this Agreement, and after the term of this Agreement for a period of three (3) years from the date of the final CITY payment for the ARTIST’S services.

35. SUBCONTRACTORS. The ARTIST must secure the prior written approval of the CITY before hiring any subcontractors or other professional associates to perform services or activities covered by this Agreement.

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

37. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the appropriate review authority according to the CITY’S Public Art Policy.

38. SAFETY. The ARTIST shall observe and comply with all applicable laws, ordinances, codes and regulations of governmental agencies, including all provisions of the Occupational Safety and Health Act of 1979 and all amendments thereto, and all applicable Federal, State, municipal and local safety regulations in performance of all services under this Agreement. If death, serious personal injury, or substantial property damage occurs in connection with the performance of this Agreement, the ARTIST shall immediately notify the Contract Administrator by telephone. The ARTIST shall promptly submit to the CITY a written report, in such form as may be required by the CITY of all accidents which occur in connection with this contract. This report must include the following information: (1) name and address of the injured or deceased person(s); (2) name and address of the ARTIST'S subcontractors, if any; (3) name and address of the ARTIST'S liability insurance carrier; and (4) a detailed description of accident and whether any of the CITY'S equipment, tools, material or staff were involved.

39. PRESERVATION OF CITY PROPERTY. The ARTIST shall provide and install suitable safeguards, approved by the CITY, to protect City property from injury or damage. If City property is injured or damaged resulting from ARTIST’S operations, it shall be replaced or restored at ARTIST’S expense. The CITY’S facilities shall be replaced or restored to a condition as good as when the ARTIST began the work.

40. USE OF CITY PROPERTY. The ARTIST shall not use the CITY premises, property (including equipment, instruments and supplies) or personnel for any purpose other than the performance of the ARTIST’S obligations under this Agreement.

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

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

43. NOTICE. All notices to the PARTIES hereto under this Agreement shall be in writing and shall be sent either by (i) personal service, (ii) delivery by a reputable document delivery service which provides a delivery receipt. All such notices shall be delivered to the addressee or addressed as set forth below:

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24 To City: City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93041
Attention: [insert contract administrator]
To Artist: [NAME]
[ADDRESS]
[ADDRESS]

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

45. AUTHORITY TO EXECUTE AGREEMENT. Both the CITY and the ARTIST do covenant that each individual executing this Agreement on behalf of each PARTY is a person duly authorized and empowered to execute Agreements for such PARTY.

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

CITY ARTIST
_______________________________
By: [Name]
Its: [Title of City Manager or Department Head]
_______________________________
By: [Name]
Its: [Title]
APPROVED AS TO FORM:
_______________________________
By: J. Christine Dietrick, City Attorney
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25 EXHIBIT A – Description of Work
[Placeholder for Description of the Art piece]
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26 EXHIBIT B – Description of Services
[Placeholder for Description of Services]
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27 EXHIBIT C – Terms and Conditions for Payment

1. The CITY shall pay the ARTIST $____________ for the WORK pursuant to the terms and conditions of this Agreement. $________ shall be compensation for the ARTIST’S commission for the WORK. $________ shall be compensation to cover travel costs. No additional compensation shall be provided for the commission or travel expenses, whether or not actual travel costs are higher. Travel costs include amounts paid for lodging, transportation, gas if traveling by car, and per diem expenses.

2. The CITY shall pay the ARTIST a deposit of $_______ upon execution of this Agreement. Within 30 calendar days of the ARTIST notifying the CITY that installation of the WORK is complete and the CITY providing written acceptance of the WORK, the CITY shall pay the remaining balance of $_______________.

3. The ARTIST shall be paid for services satisfactorily rendered pursuant to this Agreement in accordance with the terms herein and subsequent adjustments, changes or additions as specifically provided for in this Agreement. Such payment shall be full compensation for work performed and services rendered, for all supervision, labor, supplies, materials, equipment or use thereof, taxes, and for all other necessary incidentals including transportation of the WORK to the place of installation.

4. The City shall not withhold applicable federal or state payroll or any other required taxes, or other authorized deductions from each payment may to the Artist.

5. No payment to the ARTIST for any work performed or services rendered shall constitute a waiver or release by the CITY of any claims, rights or remedies it may have against the ARTIST under this Agreement or by law, nor shall such payment constitute a waiver, remission, or discharge by the CITY of any failure or fault of the ARTIST, to satisfactorily perform the WORK and services as required under this Agreement.

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28 EXHIBIT D – Schedule for Completion of Work

1. The ARTIST shall perform work according to the following schedule:
a. [insert schedule]

2. The CITY shall grant a reasonable extension of time to the ARTIST if there is a delay on the part of the CITY in performing its obligations under this Agreement, or if conditions beyond the ARTIST'S control or Acts of God render timely performance of the ARTIST'S services impossible or unduly burdensome.

Failure to fulfill contractual obligations due to conditions beyond either party's reasonable control will not be considered a breach of contract; provided that such obligations shall be suspended only for the duration of such conditions.

3. For delays in the installation of the WORK beyond the schedule provided for under this Agreement caused by factors reasonably under the ARTIST'S control, the CITY agrees to accept one hundred dollars ($100.00) per day as liquidated damages for such delay, which is a reasonable estimate of potential future damages under the circumstances.

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29 EXHIBIT E – Insurance Requirements

1. The ARTIST and any subcontractors performing services in connection with this Agreement, shall carry, maintain, and keep in full force and effect during the term of the provision of services under this Agreement, the following insurance coverage which meets the following minimum requirements:
a. Comprehensive General liability insurance with a $1,000,000 limit for each occurrence, and combined single limit, against any personal injury, death, loss or damage resulting from the wrongful or negligent acts by the ARTIST’S subcontractors, including an endorsement adding the City, its agents, officers, and employees as additional insured. b. Personal Property Insurance Coverage under which the WORK is added, or other insurance coverage that insures the WORK against all risks of physical loss, damage or theft during transit and delivery of the WORK to the CITY and at all times before CITY’S acceptance of the WORK.
c. If the ARTIST is using a vehicle for delivery and installation, Comprehensive Vehicle Liability Insurance covering personal injury and property damage, with minimum limits of $1,000,000 per occurrence combined single limit, covering any vehicle utilized by the ARTIST or ARTIST’S subcontractors in performing the services required by this Agreement. d. If the ARTIST has additional workers directly employed, Workers Compensation Insurance as required by the State of California at the statutory limits.

2. The policy or policies required herein, shall be primary to any coverage available to the CITY and shall include provisions for waiver of subrogation. The ARTIST hereby waives its right of subrogation. Any deductibles must be declared to and approved by the CITY prior to commencement of WORK under this Agreement.

3. At all times during the period when such insurance must be maintained, the ARTIST shall maintain on file with the City Clerk a certificate or certificates of insurance on a form approved by the City Attorney showing that the aforesaid policies are in effect in the required amounts. The ARTIST shall, prior to commencement of work under this Agreement, file with the City Clerk such certificate or certificates.

All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days prior written notice to the CITY, and specifically stating that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement.

DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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CITY PROPERTY
30 Exhibit C: City’s Insurance Requirements
Without limiting SLOMA’s indemnification of City, and prior to commencement of Lease, SLOMA shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City.

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

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

Property insurance. The Museum of Art located at 1010 Broad St, San Luis Obispo, CA is included on the City’s property insurance schedule. However, upon commencement of construction of SLOMA improvements and betterments, or installation of equipment, with approval of City, SLOMA shall obtain and maintain insurance on SLOMA’s improvements and betterments. Policy shall be provided for replacement value on an “all risk” basis. There shall be no coinsurance penalty provision in any such policy.

Proof of insurance. SLOMA shall provide certificates of insurance and required endorsements to City as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City for the contract period and any additional length of time required thereafter. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. SLOMA shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by SLOMA, their agents, representatives, employees, or subconsultants.

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

City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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CITY PROPERTY
31 by SLOMA or City will withhold amounts sufficient to pay premium from SLOMA payments. In the alternative, City may cancel this Agreement.

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

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow SLOMA or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. SLOMA hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its subconsultants. Enforcement of contract provisions (non estoppel).

SLOMA acknowledges and agrees that any actual or alleged failure on the part of the City to inform SLOMA of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

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

Notice of cancellation. SLOMA agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the SLOMA’s insurers are unwilling to provide such notice, then SLOMA shall have the responsibility of notifying the City immediately in the event of SLOMA’s failure to renew any of the required insurance coverages or insurer’s cancellation or non-renewal.

Additional insured status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

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

DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF

CITY PROPERTY
32 Pass-through clause. SLOMA agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by SLOMA (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of SLOMA. SLOMA agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event SLOMA’s subcontractor cannot comply with this requirement, which proof must be submitted to the City, SLOMA shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the SLOMA, but in all other terms consistent with the SLOMA’s requirements under this agreement. This provision does not relieve the SLOMA of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide SLOMA with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the SLOMA under this agreement given the limited scope of work or services provided by the subcontractor. SLOMA agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to City for review.

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

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

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

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

SLOMA’s personal property, fixtures, equipment, inventory, and vehicles are not insured by City against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause.

DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO MUSEUM OF ART FOR USE OF

CITY PROPERTY
33 Exhibit E
[Placeholder for description of the City Property]
DocuSign Envelope ID: FFEE0361-D8CC-4980-8105-47CD8466C451

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1010 BROAD STREET at Mission Plaza
POST OFFICE BOX 813
SAN LUIS OBISPO, CA 93406
PH: 805-543-8562
[email protected]
Ermina Karim
Chair
Barbara Bell
Immediate Past
Chair
Cheryl Cuming
Secretary
Trudie Safreno
Treasurer
John Dunn
Board Member
Charles Feltman
Board Member
Lindsey Harn
Board Member
Beya Makekau
Board Member
David Richards
Board Member
Leann Standish
Executive Director
Public Art Partnership May 8, 2025
The San Luis Obispo Museum of Art seeks to renew our contract with the City of San Luis Obispo to help fulfill the City’s Public Art Goals. Specifically, the Museum will provide expertise, connections, logistical management, communications, and engagement leadership.

As the Museum works to connect with artists and their representatives throughout the region and the world, the leadership team will also identify projects appropriate for fulfillment of the City’s public art program. San Luis Obispo encourages Public Art that respects our past and embraces the future; supporting all members and facets of the community and the pursuit of sustainability, diversity, and inclusivity.

The City of San Luis Obispo strives to incorporate these values into public spaces through the proliferation of public art.

The Museum’s leadership will facilitate this process for annual City Public Art projects (detailed in the contract) including:
• Identifying and prioritizing projects and artists for consideration • Work within budget determined by City for each project • Work with City staff to review potential installation sites and site work • Meetings with artists to discover considerations such as materials, shipping, installation, scheduling, and sustainability
• Working with multiple agencies to determine viability of project including structural engineers, traffic safety, lighting, disruptions, and community interest • Provide a City-approved maintenance plan for each project • Develop project overview for presentation to City Manager, City Council and select City Staff
• Processing the project expenses and permits
• Monitor and report all code requirements and permit fulfillment • Identifying and invite key stakeholders to engage in committee process • Work with artist for presentation to key stakeholders committee • Develop communications role out program following feedback from stakeholders committee
• Identifying and engaging appropriate community partners • Work with City representatives to ensure maximum community engagement and media coverage
• Arrange for all on-site signage and all copy for City communications, with City approval

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1010 BROAD STREET at Mission Plaza
POST OFFICE BOX 813
SAN LUIS OBISPO, CA 93406
PH: 805-543-8562
[email protected]
Ermina Karim
Chair
Barbara Bell
Immediate Past
Chair
Cheryl Cuming
Secretary
Trudie Safreno
Treasurer
John Dunn
Board Member
Charles Feltman
Board Member
Lindsey Harn
Board Member
Beya Makekau
Board Member
David Richards
Board Member
Leann Standish
Executive Director
Additionally, SLOMA will present monthly written status updates regarding budget, process updates, and projects in research phase.

The Museum’s expertise negates the need for RFQ’s and streamlines the process. SLOMA leadership is committed to maintaining a consistent balance of regional, national, and international artists as a part of a robust public art program.

The San Luis Obispo Museum of Art leadership team has decades of experience in arts management and community engagement. SLOMA’s Chief Curator and Director of Education holds two hold a master’s degree in educational leadership from Cal Poly and one curating from the University of Denmark.

SLOMA undergoes an extensive vetting process for each piece of artwork to determine its overall value to the SLO community. Elements taken into consideration include level of artistic excellence, interactivity, innovative qualities, originality and durability. Additionally, SLOMA considers the City of SLO’s DEI objective that envisions a San Luis Obispo that is welcoming, inclusive and safe when considering both the artists, artwork and community.

SLOMA prioritizes working with artists who demonstrate prior experience with public art projects, including familiarity with site-specific design and materials suitable for public outdoor settings.

SLOMA’s ongoing programming allows for an additional platform for the community to engage with each project artist and the depth of their work.

The San Luis Obispo Museum of Art requests an annual fee of $100,000 for this service.

Leann Standish
SLOMA Executive Director

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Item 5j
Department: Human Resources
Cost Center: 3050
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Kate Auslen, Risk and Benefits Manager
SUBJECT: AUTHORIZE SELF-INSURED RETENTION INCREASE WITHIN THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY’S GENERAL

LIABILITY EXCESS PROTECTION PROGRAM

RECOMMENDATION
Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an Increase to the Self-Insured Retention Limit within the California Joint Powers Insurance Authority’s General Liability Excess Insurance Program.”(Attachment A)

POLICY CONTEXT
This item aligns with the Economic Resiliency, Cultural Vitality and Fiscal Sustainability Major City Goal.

DISCUSSION
Background
The City of San Luis Obispo became a member of the California Joint Powers Insurance Authority (CJPIA) on July 1, 2004, for participation in the general liability and workers’ compensation programs. Membership in the CJPIA means sharing risk with other member agencies, who assist each other in keeping the cost of claims down by following risk management best practices. By sharing risk, the cost to an agency for a year with significant claims experience is somewhat mitigated and spread out across many agencies.

In 2016, the City Council approved transitioning from the “first dollar” primary program to CJPIA’s excess protection program for general liability with a Self-Insured Retention (SIR) of $500,000. This means that the City pays claims costs up to $500,000 before CJPIA liability coverage begins to pay the “excess” costs beyond $500,000. In 2023, a cost analysis was completed showing that the transition to the excess program for liability has resulted in savings of approximately $400,000 per year since the transition occurred. In 2024, the City Council approved a transition to CJPIA’s excess protection program (EPP)

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Item 5j
for workers’ compensation with a Self-Insured Retention (SIR) of $500,000, also resulting in significant savings.

Proposed Change
CJPIA provided the following member contribution estimates at different SIR levels for FY 2025-26:

Table 1: City of San Luis Obispo Member Contribution Estimates at Different SIR Levels Self-Insured Retention CJPIA Member
Contribution Estimate Savings ($) Savings (%)
$500,000 (Current) $1,483,000 $0 0%
$750,000 $1,267,000 $216,000 15%
$1,000,000 (Proposed) $1,191,000 $292,000 20%
$1,250,000 $1,142,000 $341,000 23%
$1,500,000 $1,084,000 $399,000 27%
The total cost of general liability claims consists of three components:

1. The annual CJPIA member contribution

2. Direct claim costs up to the self-insured retention amount

3. A fee paid to the City’s Third-Party Administrator, Carl Warren & Co., for claims management services
The CJPIA member contribution is calculated based on three key factors: the City’s loss history over a rolling five-year period, changes in payroll, and actuarially determined program rates.

Actuarially determined program rates are affected by overall pool performance fluctuations year over year. These factors are used to determine the city’s share of pooled-loss funding requirements, share of the pool’s excess insurance purchases, and operating expenses.

The five-year rolling average for claim experience has a large impact on the calculation, according to CJPIA. The City’s five-year rolling average included in the FY 2025-26 CJPIA member contribution estimate spans FY 2018-19 through FY 2022-23. Two unusually high claim years fall within this period, as illustrated in Table 2 below.

These figures include reserve amounts for claims not yet settled, so they are subject to change. However, the FY 2023-24 appears to be an unusually low year, which could favorably impact the City’s CJPIA member contribution for FY 2026-27.

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Item 5j
Table 2: Five-Year Rolling Average for Claim Experience Coverage Year Direct Claim Costs
2018-19 $799,903
2019-20 $496,738
2020-21 $1,119,459*
2021-22 $947,701*
2022-23 $1,611,143*
2023-24 $184,476*
*Actual + Remaining Reserve
Selecting a self-insured retention amount is a matter of risk tolerance. The higher the SIR, the more responsibility the City has in paying direct claims costs rather than relying on the CJPIA member pool to share the costs. By taking on that risk, the City saves a portion of the premiums, or CJPIA member contribution, that would have otherwise been paid.

The savings may be used to build up the insurance fund reserve to pay future claims costs. Alternatively, a lower SIR entails less risk of unusually high claim amounts being paid out, but also comes with a higher annual CJPIA member contribution.

It is becoming more common for public entities to self-insure a portion of both general liability and workers’ compensation programs to contain overall costs. Currently, 14 out of 127 CJPIA member agencies participate in the excess protection program for general liability, with SIR’s ranging from $150,000 to $1,000,000. This represents approximately 11% of all member agencies, up from approximately 2.4% in FY 2016-17 when the City first joined the general liability excess protection program. Given the City’s strong record of claim management and risk management practices, CJPIA considers the City a strong candidate for a higher SIR and is supportive of the increase.

During the eight (8) fiscal years the City has participated in the general liability excess protection program (FY 2016-17 to FY 2023-24), one (1) claim out of 557, or 0.18% of claims, has risen above the $500,000 self-insured retention, and one (1) additional claim that is anticipated to fall above that amount is still pending settlement. Across CJPIA member agencies, claims between $500,000 and $1,000,000 represent 38 claims out of 10,823, or 0.35% of all claims between FY 2019-2024. Therefore, it appears to be low risk to take on a higher self-insured retention level.

Staff recommends increasing the SIR from $500,000 to $1,000,000 starting in FY2025-

26. The SIR will remain at $1,000,000 until changed by Council. This means that the City would pay general liability claims up to $1,000,000 before CJPIA begins to pay the “excess” costs beyond $1,000,000. Making this change would result in a savings of approximately $292,000 for the member contribution paid to CJPIA in the first year and ongoing savings thereafter, assuming trends in claim costs remain steady. The new SIR would apply to claims filed July 1, 2025, or later. Expenses for existing claims that are still pending would apply to the previous SIR in place on the date of the claim.

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Item 5j
Previous Council or Advisory Body Action
On June 21, 2016, the City Council approved entry into CJPIA’s excess protection program for general liability with a Self-Insured Retention (SIR) of $500,000 to contain insurance costs.

ENVIRONMENTAL REVIEW
The recommended action is not a “project” under the California Environmental Quality Act, because there is no potential that it will result in a direct physical change or reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:

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

Insurance Fund
N/A -292,000
Total $0 $0 $0 $-292,000
In the first year, there will be an immediate savings of approximately $292,000 in general liability program costs, due to a reduced CJPIA member contribution. However, if the City incurs unusually large losses, between $500,000 and $1,000,000, those losses would reduce or eliminate the savings achieved. For example, if expenses for a particular claim total $792,000 during FY 2025-26, then the City would break even compared to the CJPIA member contribution that would have been paid at the current $500,000 SIR.

Staff recommends retaining any accrued savings in the insurance fund reserve to pay future claims costs and align the reserve more closely with actuarial recommendations.

The City’s Fund Balance and Reserve Policy establishes that the Insurance Fund will maintain funding to cover 150% of the average claim costs for the past five years, which would total $1,307,855 for FY 2019-20 to FY 2023-24. The policy also states that actuarial information will be taken into consideration. Based on the most recent actuarial report dated November 18, 2024, the City should maintain a reserve of $3,392,000 for liability claims and $1,578,000 for workers’ compensation claims, totaling $4,970,000, if funding at a 75% confidence level. Confidence levels, or probability levels, are used by actuaries

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Item 5j
to estimate the probability that funding will be sufficient to cover the costs of current and potential future claims based on trend data available. The insurance fund reserve is anticipated to be $2,891,767 at the end of FY 2024-25. This is below the lowest probability level provided by the actuary, which is 55%, or a reserve of $4,553,000. Higher SIR levels generally result in higher reserve recommendations.

ALTERNATIVES

1. Council could decide to make no change to the self-insured retention amount.

This would result in a higher member contribution to CJPIA in FY 2025-26 and future years. It may also be a lower risk option if the City experiences unusually high liability claim losses, above $500,000.

2. Council could direct an increase to an alternative self-insured retention amount, such as $750,000 or $1,250,000. A shift to a $750,000 SIR would result in less savings and less risk compared to the $1,000,000 SIR, and a shift to a higher selfinsured retention amount would result in more savings and more risk, as discussed above.

ATTACHMENTS
A - Draft Resolution authorizing a self-insured retention increase from $500,000 to $1,000,000 for the CJPIA General liability excess protection program.

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R ______
RESOLUTION NO. _____ (2025 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN INCREASE TO THE SELFINSURED RETENTION LIMIT WITHIN THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY’S LIABILITY EXCESS INSURANCE

PROGRAM
WHEREAS, the City of San Luis Obispo became a member of the California Joint Powers Insurance Authority (CJPIA) in 2004 for participation in the General Liability Primary Insurance Program; and
WHEREAS, the City of San Luis Obispo entered CJPIA’s General Liability Excess Protection Program (EPP) in FY 2016-17 with a Self-Insured Retention (SIR) level of $500,000; and
WHEREAS, CJPIA’s EPP allows members to select an SIR that best fits their claims experience and ability to appropriately self-insure; and WHEREAS, increasing the City of San Luis Obispo’s SIR limit to $1,000,000 will likely reduce insurance costs when compared to an SIR of $500,000; and WHEREAS, the City of San Luis Obispo’s current Memorandum of Coverage delegates claim settlement authority to CJPIA and the City desires for that to continue; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. General Liability coverage for the City of San Luis Obispo through the Excess Protection Program of the California JPIA (EPP) with an SIR of $1,000,000 is hereby authorized and directed effective July 1, 2025.

SECTION 2. The City Manager or their designee is authorized to execute an agreement with Carl Warren and Company in a form subject to the approval of the City Attorney for third party administration services for the general liability EPP, and any other documents required for participation in and administration of the general liability EPP.

SECTION 3. Appropriate officers of the City of San Luis Obispo are authorized to pay the annual member contribution for the Excess Protection Program (EPP) to the California JPIA.

SECTION 4. The City Manager or designee shall work with CJPIA to fund the appropriate trust accounts to ensure claim settlement amounts within the SIR are available.

SECTION 6. The City Manager or designee is authorized to act as the City’s “Authorized Representative” for compliance with “Medicare, Medicaid, SCHIP Extension Act 2007” Section 111.

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Resolution No. _____ (2025 Series) Page 2
R ______
SECTION 7. The City Clerk shall certify the adoption of this resolution.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2025. ___________________________
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

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Item 5k
Department: Human Resources
Cost Center: 3001
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Nickole Domini, Human Resources Director
Prepared By: Amy Fletcher, Human Resources Analyst
SUBJECT: APPROVE THE AFFORDABLE CARE ACT REPORTING AND

TEMPORARY EMPLOYEE ELIGIBILITY POLICY IN COMPLIANCE WITH

THE AFFORDABLE CARE ACT

RECOMMENDATION

1. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the Affordable Care Act Reporting and Temporary Employee Eligibility Policy.” (Attachment A)

2. Authorize the City Manager to make future administrative changes to the policy as deemed necessary to remain compliant with Affordable Care Act.

POLICY CONTEXT
The Affordable Care Act Reporting and Temporary Employee Eligibility Policy formalizes the City’s compliance with the Affordable Care Act. On October 1, 2013, the City Council approved Resolution #10461 adopting policy guidelines to comply with Affordable Care Act that went into effect for coverage starting January 1, 2015. In the event of an audit, the City will be able to present this policy as evidence of compliance with the Affordable Care Act.

DISCUSSION
Background
The federal Affordable Care Act (hereinafter referred to as “ACA”) became law in March 2010. Implementation of this complex legislation was phased in from 2010 through 2018, requiring employers and insurance companies to make necessary changes to remain in compliance. A significant aspect of the ACA that went into effect in January 2015 is referred to as the Employer Shared Responsibility Provision, or more commonly known as the “Play or Pay Mandate.” This provision of the ACA assesses penalties for all large employers (defined under the ACA as employers having over 50 full-time equivalent employees) who do not offer health insurance coverage that is “Affordable” and of “Minimum Value” to full-time employees as defined in the regulation. The City’s practice is to offer health insurance to all regular and limited-term contract employees and ACA extends these benefits to temporary employees that are considered full time based on

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Item 5k
hours worked. Full-time under the ACA is defined as an employee who works 30 hours per week or is expected to average at least 30 hours of work each week for the relevant measurement period as described in the policy.

On October 1, 2013, the City Council approved Resolution #10461 adopting policy guidelines to comply with ACA. These policy provisions went into effect for coverage starting January 1, 2015. Included in that Resolution was adoption of the Rate of Pay Safe Harbor method1to determine the affordability of minimum essential coverage that is offered to the City’s full-time employees. At the same time, the 12-month measurement period was adopted, which the City uses to determine whether an employee is considered full time under the ACA.

Pursuant to the Affordable Care Act, the City is required to report annually on its offers of coverage to employees. The City produces and provides a Form 1095-C to each covered employee and reports the information to both the Internal Revenue Service (“IRS”) and the California Francise Tax Board via an electronic Form 1094-C.

City staff regularly consult with the law firm Liebert Cassidy Whitmore (“LCW”) on a variety of employment law matters and learned that while the ACA has been in place for a number of years, the IRS has begun increasing its audits and enforcement. This encouraged City staff to conduct a review of current City practices related to ACA reporting and offers of coverage under the guidance of LCW. As a result, it was recommended that the City adopt a policy to formally document its reporting and eligibility practices so it would be simpler to prove compliance should questions or audits arise. These practices are outlined in the ACA Reporting and Temporary Employee Eligibility Policy (Attachment B).

Proposed Policy
While minor enhancements to the City’s current procedures were made, the policy largely serves to formalize the City’s current practices. If the City receives questions in the future regarding its compliance with ACA guidelines, the policy will help the City more easily demonstrate its alignment with those requirements. In addition to the new policy, City staff took the opportunity to clarify other documents used in the process of offering insurance coverage, such as the language contained in various Memoranda of Understanding with bargaining groups regarding cash-in-lieu for employees who opt out, as well as the waiver form that employees who opt out are required to sign annually.

The policy provides an overview of the general requirements of the ACA and the City’s statement of policy regarding offers of health insurance coverage. The policy lays out how temporary employees are deemed eligible for coverage, using their hours of service and a standard measurement period that occurs annually. It also describes different employment statuses such as newly hired, ongoing, seasonal vs. variable hour, break in service or on unpaid leave, and how their status impacts their eligibility. The policy also

1 The Rate of Pay Safe Harbor uses an employee's hourly rate or monthly salary to determine if their health insurance is affordable. To be considered affordable under this safe harbor, an employee's contribution for self-only coverage must not exceed a percentage set by the IRS each year (9.02% for 2025).

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Item 5k
details the method used to determine affordability under the ACA and how the City determines the employee’s premium contribution.

Previous Council or Advisory Body Action
On October 1, 2013, the City Council established the City’s intent to comply with the ACA’s requirements for Employer Shared Responsibility. See Resolution No. 10461.

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

FISCAL IMPACT
There is no impact from the recommendations included in the report because the new policy formalizes current practices.

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

ALTERNATIVES

1. Council could decide not to adopt this policy. The policy demonstrates compliance with the provisions of the Affordable Care Act and is consistent with the City’s current practices. Without the policy, the City may be vulnerable to IRS penalties.

2. Council could decide to modify the City’s practices related to ACA compliance.

Changes to the method of determining eligibility or affordability for minimum essential coverage would require staff to consult with legal counsel to ensure continued compliance and determine any fiscal impact to making the change(s).

ATTACHMENTS
A - Draft Resolution Implementing the ACA Reporting and Temporary Employee Eligibility Policy”
B - Exhibit 1 - Draft ACA Reporting and Temporary Employee Eligibility Policy

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R ______
RESOLUTION NO. _____ (2025 SERIES)

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

OBISPO, CALIFORNIA, ADOPTING THE AFFORDABLE CARE ACT

REPORTING AND TEMPORARY EMPLOYEE ELIGIBILITY POLICY
WHEREAS, the City Council adopted Resolution No. 10461 (2013 Series) establishing the City’s intent to comply with the Affordable Care Act Employers Shared Responsibility; and
WHEREAS, the City desires to formalize its current practices and best practices related to the Affordable Care Act compliance in a standalone policy.

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

SECTION 1. The City Council hereby adopts the Affordable Care Act Reporting and Temporary Employee Eligibility Policy, attached as Exhibit 1.

SECTION 2. The City Council hereby delegates authority to the City Manager to make future administrative changes to the policy as deemed necessary to remain compliant with the Affordable Care Act.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2025. ___________________________
Mayor Erica A. Stewart
ATTEST: APPROVED AS TO FORM:
______________________ ______________________
Teresa Purrington, City Clerk 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

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Revised 04/29/25 Page 1 of 9 Policy Number
ACA Reporting and Temporary
Employee Eligibility Policy
PURPOSE:................................................................................................................................ 2 SCOPE...................................................................................................................................... 2 THIS POLICY APPLIES TO ALL CITY OF SAN LUIS OBISPO EMPLOYEES......................... 2 COMPLIANCE........................................................................................................................... 2 STATEMENT OF POLICY:........................................................................................................ 2 LOOKBACK SAFE HARBOR:.................................................................................................. 3

1. Hours of Service Calculation: ......................................................................................... 3

2. Ongoing Employees: ...................................................................................................... 3

3. Newly Hired Employees ................................................................................................. 4

4. New Variable Hour, New Seasonal, and New Part-Time Employees:............................. 5

5. New Variable Hour, Part-Time or Seasonal Employee’s Change in Status During Initial Measurement Period .............................................................................................................. 6

6. Transitioning from New to Ongoing Employee................................................................ 6

7. Breaks In Service ........................................................................................................... 7

8. Special Unpaid Leave..................................................................................................... 7 AFFORDABILITY SAFE HARBORS:........................................................................................ 7

1. Rate of Pay Safe Harbor ................................................................................................ 7

2. Form W-2 Safe Harbor ................................................................................................... 8

3. Federal Poverty Line Safe Harbor .................................................................................. 8

4. Required Premium Contribution:..................................................................................... 8 REVISIONS/UPDATES TO POLICY: ........................................................................................ 9 LEGAL AUTHORITY:................................................................................................................ 9 APPROVAL AUTHORITY: ........................................................................................................ 9 QUESTIONS:............................................................................................................................. 9

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City of San Luis Obispo –ACA Reporting and Temporary Employee Eligibility Policy Revised 04/29/2025 Page 2 of 9
PURPOSE:

To formally document the City’s practices related to “Lookback Measurement Method Safe Harbor” (hereinafter referred to as the “Lookback Safe Harbor”) under the Patient Protection and Affordable Care Act (“ACA”) for purposes of (1) identifying “full-time” employees for the IRS reporting requirements related to the Employer Mandate as to all employees, and (2) determining eligibility for an offer of coverage for Temporary Employees, also known as Supplemental Employees, unless otherwise provided by an alternative policy or written agreement.

SCOPE
This policy applies to all City of San Luis Obispo employees.

COMPLIANCE
The City of San Luis Obispo (“City”) is considered a “large employer” for the purposes of the Shared Responsibility Provisions (26 United States Code Section 4980H) of the ACA. The City is also considered a “large employer” for the purposes of 26 United States Code Section 6056 and, therefore, is subject to the reporting requirements referenced therein.

The Internal Revenue Service (“IRS”) may assess a penalty on the City if (1) it fails to offer “substantially all” of its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage or offers coverage to “substantially all” of its full-time employees (and their dependents), but that coverage is either “unaffordable” or does not provide “minimum value” and (2) any full-time employee receives a subsidy for coverage through the exchange (“Employer Mandate”).

The IRS requires the City to report the identity of, number of, and coverage offered to, full-time employees, subject to certain potential alternative reporting.

Per the requirements of the ACA, the City is required to establish and maintain a process for determining when employees are eligible for health insurance.

STATEMENT OF POLICY:

The City offers health insurance coverage to all full-time employees and those employees who are regular part-time (defined as working 30 hours a week or more) under applicable collective bargaining agreements or resolutions.

Regular or contract full-time and part-time employees are offered health insurance in compliance with CalPERS rules, which state that an eligible employee may enroll in coverage within the first 60 days of employment, and coverage is effective the first of the month following the enrollment election date.

Nothing in this policy shall be construed as the City’s determination for eligibility for health coverage as to any represented employee, any Unrepresented Confidential or Unrepresented Management employee, or employee under contract with the City, including City Council members. Qualification for health coverage for such employees shall continue to be governed by the terms of any applicable Memorandum of Understanding or other applicable Resolution or contract.

This policy also establishes the Affordability Safe Harbors to determine affordability of coverage

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offered, if any, for the Employer Mandate and reporting requirements.

LOOKBACK SAFE HARBOR:

The City adopts the Lookback Safe Harbor in order to determine the Hours of Service of all temporary employees. Hours of Service are measured during the specified measurement period.

If the employee averages 30 Hours of Service per week over the course of the specified measurement period, the City will report to the IRS the employee’s status as full-time under the ACA for months during the stability period associated with that measurement period, subject to the following rules. If a Temporary Employee averages 30 Hours of Service per week over the course of the specified measurement period, the City will provide an offer of health coverage for the stability period associated with the measurement period.

1. Hours of Service Calculation: “Hours of Service” means each hour for which an employee is paid, or entitled to payment for the performance of duties for the City and each hour for which an employee is paid or entitled to payment for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.

For Hourly Employees: The City will calculate actual Hours of Service from records of hours worked and hours for which payment is made or due.

Bona fide Volunteer: The City is not required to determine Hours of Service for a bona fide volunteer. A bona fide volunteer is an individual whose only compensation from the City is in the form of (a) reimbursement (or reasonable allowance) for reasonable expenses incurred in the performance of volunteer service; or (b) reasonable benefits and nominal fees, customarily paid by similar entities in connection with the performance of services by volunteers.

2. Ongoing Employees: An ongoing employee is an employee who has been employed for at least one complete Standard Measurement Period. The City establishes the Lookback Safe Harbor with regard to all ongoing employees as follows:

Standard Measurement Period: November 2 through November 1 The Standard Measurement Period is the span of months during which an employee’s hours of service are measured to determine whether that employee qualifies as full-time.

Administrative Period: November 2 through December 31
The Administrative Period is the period of time between the Standard Measurement Period and the Stability Period, where the City makes the offer of coverage to eligible employees and completes any applicable enrollments.

Stability Period: January 1 through December 31
The Stability Period is the time period that employers must offer health coverage to all employees who were determined to be full-time during the standard measurement period.

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The City will use these periods for reporting purposes and to determine whether a Temporary Employee is eligible for coverage. Temporary Employees who average at least 30 hours per week during the Standard Measurement Period are treated as full-time employees for purposes of eligibility for health insurance during the entire Stability Period. If an ongoing employee’s employment status changes (from full-time to less than full-time or vice versa) before the end of a Stability Period, the change in status will not affect the classification of that employee’s status for the remaining portion of the Stability Period.

Monthly Lookback reports will continue to be run to ensure employees are being reviewed for eligibility.

The City will not consider these specific time periods when deciding if an employee, whether they are represented, unrepresented management, unrepresented confidential, or under contract, qualifies for a benefits offer. This determination is outlined in the collective bargaining agreement, resolution, or relevant contract, not based on these specific periods.

3. Newly Hired Employees: For employees who are new to employment with the City and who have not been employed for at least one complete Standard Measurement Period, the City will determine which of the following applies:
a. New Seasonal Employees: An employee who is hired into a position for which the customary annual employment is six months or less is considered a seasonal employee. The City will measure a new seasonal employee’s Hours of Service using the Initial Measurement Period indicated in Section 5.
b. New Non-Seasonal Employees: On the start date of a new non-seasonal employee, the City will determine (based on the facts and circumstances at the employee’s start date and after analyzing the position pursuant to the Supplemental Employee Policy), whether the employee is reasonably expected to be a full-time employee. The City will look at the following factors to determine whether an employee is reasonably expected to be a full-time employee:
 Whether the employee is replacing a full-time employee;  Extent to which Hours of Service of ongoing employees in the same or comparable positions have varied above and below an average of 30 Hours of Service per week during recent measurement periods;
 Whether the job was advertised or communicated to the employee as requiring an average of 30 or more Hours of Service per week;  Whether the job was documented (through a contract or job description) as requiring an average of 30 or more Hours of Service per week.

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No single factor is determinative.
c. New Full-Time Employees: If the City determines (pursuant to Section 3.b.) that the employee is reasonably expected to average at least 30 Hours of Service per week, the City will offer coverage within 60 days of the Temporary Employee’s start date. d. New Part-Time Employee: If the City determines (pursuant to Section 3.b.) that the employee is reasonably expected to average less than 30 Hours of Service per week during the Initial Measurement Period, then the employee will be a part-time employee.

The City will measure a new part-time employee’s Hours of Service using the Initial Measurement Period indicated in Section 5.
e. New Variable Hour Employees: If the City cannot determine (pursuant to Section 3.b.) whether the employee is reasonably expected to be employed on average at least 30 Hours of Service per week during the Initial Measurement Period because the employee’s hours are variable or uncertain, then the employee will be a variable hour employee. The City may not take into account the likelihood that the employee may terminate employment before the end of the Initial Measurement Period. The City will measure a new variable hour employee’s Hours of Service using the Initial Measurement Period indicated in Section 5.

4. New Variable Hour, New Seasonal, and New Part-Time Employees: The City establishes the following periods for new variable hour, new seasonal, and new part-time employees:

Initial Measurement Period
The City will measure the hours of service for the employee for the first 12 months of their employment, beginning on the first of the month following the hire date (unless the employee starts on the first day of the month, in which case the Initial Measurement Period begins on the start date).

Initial Administrative Period
The City will designate the 60 days following the Initial Measurement Period as the Initial Administrative Period.

Initial Stability Period
The City designates the 12 months following the end of the Initial Administrative Period, as the Initial Stability Period.

During the Initial Measurement Period, the City will measure the Hours of Service completed by the new variable hour, seasonal, or part-time employee and determine whether the employee completed an average of 30 Hours of Service per week or more. If the employee averages 30 or more Hours of Service per week during the Initial Measurement Period, they will be offered enrollment in health insurance for the Initial Stability Period.

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City of San Luis Obispo –ACA Reporting and Temporary Employee Eligibility Policy Revised 04/29/2025 Page 6 of 9
However, if the new variable hour, part-time or seasonal employee does not measure as a full-time employee during the initial measurement period, then the City will use the standard stability period that is associated with the overlapping standard measurement period to transition the employe to an Ongoing Employee status, which will determine eligibility for coverage.

5. New Variable Hour, Part-Time or Seasonal Employee’s Change in Status During Initial Measurement Period:

If a new variable hour, part-time, or seasonal employee’s position changes during the Initial Measurement Period, and had the employee started their employment in that new position, the City would have reasonably expected that new employee to average at least 30 Hours of Service per week, then for purposes of identifying a full-time employee for reporting purposes only, an employee will be considered a full-time employee on the earlier of: (1) the first day of the fourth full calendar month following the change in employment status; or (2) the first day of the first month following the end of that employee’s Initial Measurement Period if the employee averaged 30 or more Hours of Service per week during the Initial Measurement Period.

If a new Temporary variable hour, part-time, or seasonal employee’s position changes during the Initial Measurement Period, and had the employee started his or her employment in that new position, the City would have reasonably expected that employee to average at least 30 Hours of Service per week, then for purposes of offering health coverage to Temporary employees, the City will offer health coverage to the employee on the first day of the month following the change in status to full-time.

6. Transitioning from New to Ongoing Employee:

The City will measure the Hours of Service of a new variable hour, seasonal, or part-time employee during the first complete Standard Measurement Period for which they are employed.

This means that a new variable hour, seasonal, or part-time employee’s Hours of Service will be measured both under an Initial Measurement Period and, at the same time, be measured under the overlapping Standard Measurement Period.
a. If an employee’s Hours of Service measure as full-time during the Initial Measurement Period, the employee will retain full-time status for the entire associated Stability Period (even if the employee does not qualify as full-time during the Standard Measurement Period).
b. If an employee’s Hours of Service do not measure as full-time during the Initial Measurement Period, but do measure as full-time during the Standard Measurement

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City of San Luis Obispo –ACA Reporting and Temporary Employee Eligibility Policy Revised 04/29/2025 Page 7 of 9
Period, the employee must be treated as full-time during the Stability Period associated with the Standard Measurement Period (even if that Stability Period starts before the end of the Stability Period associated with the Initial Measurement Period).

7. Breaks In Service:

When an employee experiences a break in service without providing at least one Hour of Service, the employee will retain the status the employee had previously with respect to any Stability Period, except that an employee will be treated as a new employee if:
a. the employee resumes employment after a period of at least 13 consecutive weeks with less than an Hour of Service; or
b. the employee’s period of no service (measured in weeks) is at least four consecutive weeks long and exceeds the number of weeks of that employee’s period of employment immediately preceding the period of no service (after application of averaging Special Unpaid Leave as set forth in Section 9).

8. Special Unpaid Leave:

Special Unpaid Leave is defined only as unpaid leave under the Family and Medical Leave Act of 1993, unpaid leave under the Uniformed Services Employment and Reemployment Rights Act of 1994, or unpaid leave on account of jury duty. When an employee takes Special Unpaid Leave, the City will determine the weekly average of Hours of Service by the employee for that portion of the measurement period that is not part of the Special Unpaid Leave (“Average Weekly Hours of Service”). The City will then determine, on a consistent basis, the average Hours of Service for the entire measurement period using one of the following two methods:
a. exclude the period of Special Unpaid Leave and apply the Average Weekly Hours of Service over the entire measurement period; or
b. credit the Average Weekly Hours of Service to the period of Special Unpaid Leave.

AFFORDABILITY SAFE HARBORS:

For reporting purposes only, the City intends to apply the Rate of Pay Safe Harbor to determine the affordability of the minimum essential coverage that it offers its full-time employees. The City in its sole discretion may also apply the Form W-2 Safe Harbor or Federal Poverty Line Safe Harbor. These affordability safe harbors will be applied on a uniform and consistent basis for all employees in a reasonable category. The 9.02 percent determination under the affordability safe harbors applies for calendar year 2025 and shall be adjusted to reflect any indexing adjustments made pursuant to 26 U.S.C. § 36B(c)(2)(C)(iv) (“Applicable Percentage Rate”).

1. Rate of Pay Safe Harbor
a. The City measures whether the employee’s Required Premium Contribution (as defined in Section 4 below) for the calendar month toward the lowest cost self-only coverage that provides minimum value exceeds the Applicable Percentage Rate of the employee’s monthly wage.
b. For hourly employees, the monthly wage is equal to 130 hours multiplied by the

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City of San Luis Obispo –ACA Reporting and Temporary Employee Eligibility Policy Revised 04/29/2025 Page 8 of 9
employee’s hourly rate of pay as of the first day of the coverage period or the employee’s lowest hourly rate of pay during the calendar month, whichever is lower.
c. For salaried employees, the monthly wage is the monthly salary as of the first day of the coverage period. However, if the monthly salary is reduced, including due to a reduction in work hours, the safe harbor is not available. If the rate of pay increases during the year, the City will use the lowest rate of pay for the year in the calculation.
d. The coverage offered by the City will be deemed affordable if the employee’s monthly Required Premium Contribution is equal to or less than the Applicable Percentage Rate of the employee’s monthly wage.

2. Form W-2 Safe Harbor
a. The City measures whether the employee’s Required Premium Contribution for the full calendar year for the lowest cost self-only coverage that provides minimum value exceeds an amount equal to the Applicable Percentage Rate of the employee’s Form W-2 wages (as reported in Box 1) for the calendar year in which coverage is offered.
b. For an employee who is not offered coverage for an entire calendar year, the City must adjust that employee’s Form W-2 wages to reflect the period for which coverage was offered. To adjust wages, the Form W-2 wages are multiplied by a fraction equal to the number of calendar months the City offered coverage over the number of calendar months in the period of employment during the calendar year. c. The coverage offered by the City will be deemed affordable if the employee’s annual Required Premium Contribution is equal to or less than the Applicable Percentage Rate of the employee’s Form W-2 wages as reported in Box 1 (or as adjusted, for an employee who is not offered coverage or an entire calendar year).

3. Federal Poverty Line Safe Harbor
a. The City measures whether the employee’s Required Premium Contribution for the calendar month for the lowest cost self-only coverage that provides minimum value exceeds the Applicable Percentage Rate of the Federal Poverty Line (“FPL”) for a single individual for the applicable calendar year, divided by twelve. b. The City will use the FPL in effect within six months before the first day of the plan year.
c. The coverage offered by the City will be deemed affordable if the employee’s Required Premium Contribution is equal to or less than the Applicable Percentage Rate of the monthly FPL for a single individual for the applicable calendar year.

4. Required Premium Contribution: The City will calculate the employee’s Required Premium Contribution as follows:
a. Identify the premium cost for the lowest cost plan offered to the employee.

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City of San Luis Obispo –ACA Reporting and Temporary Employee Eligibility Policy Revised 04/29/2025 Page 9 of 9
b. Subtract any employer contribution that qualifies as a Health Flex Contribution.

A Health Flex Contribution is an employer contribution that cannot be cashed out by the employee and cannot be applied to benefits other than health insurance coverage.

REVISIONS/UPDATES TO POLICY:

This Policy is subject to change as regulations and guidance are issued relating to the ACA.

LEGAL AUTHORITY:

Title 26 United States Code section 4980H, (Internal Revenue Code); Shared Responsibility for Employers Regarding Health Coverage, 26 CFR Parts 1, 54 and 301, 79 Fed. Reg. 8544 (Feb. 12, 2014); Title 26 United States Code section 6056, (Internal Revenue Code); Information Reporting by Applicable Large Employers on Health Insurance Coverage Offered Under Employer Sponsored Plans,
26 CFR Parts 301 and 602, 79 Fed. Reg. 13231 (March 10, 2014).

APPROVAL AUTHORITY: The City Council has delegated authority to the City Manager for future updates to this policy.

Responsible Department: Human Resources Department
Approved By: City Council
Date Adopted:

Date Revised: N/A
QUESTIONS:

For questions regarding this policy or to discuss a particular situation, please contact the Human Resources Department at (805) 781-7250.

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Item 5l
Department: Utilities
Cost Center: 6102
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Miguel Barcenas, Deputy Director Engineering and Planning SUBJECT: AUTHORIZATION TO TRANSFER FUNDS FROM SEWER FUND

COMPLETED PROJECTS AND AWARD THE FOOTHILL-SANTA ROSA
SEWER PIPELINE REPLACEMENT PROJECT, SPECIFICATION NO.
2000096

RECOMMENDATION

1. Authorize the transfer of $126,000 from Sewer Fund Completed Projects (602.9501.71501) to the Foothill-Santa Rosa Sewer Pipeline Replacement Project, Specification No. 2000096; and

2. Award a Construction Contract to Souza Engineering Contracting, Inc in the amount of $598,591.00 for the Foothill-Santa Rosa Sewer Pipeline Replacement Project, Specification No. 2000096; and

3. Authorize the Utilities Director to approve Contract Change Orders up to the available project budget and any amended budget subsequently approved by the City Manager up to $200,000.

POLICY CONTEXT
The action is consistent with General Plan Water and Wastewater Element Goal B 4.1 to collect and convey all wastewater under safe and sanitary conditions to the Water Resource Recovery Facility.

On February 4, 2025, the City Council authorized the advertisement for bids for the Foothill–Santa Rosa Sewer Pipeline Replacement Project, Specification Number 2000096 (Project). City Council’s action also authorized the City Manager to award the construction contract pursuant to Municipal Code Section 3.24.190 if the lowest responsible bid is within the Engineer’s Estimate of $562,000. The lowest responsible bid exceeds the Engineer’s Estimate by $126,000 and requires subsequent consideration and authorization by City Council to award.

DISCUSSION
Background
The City Utilities and Public Works Departments have been coordinating with the

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Item 5l
California Department of Transportation (Caltrans) regarding a City sewer line (constructed in 1965) that punctured and damaged an existing Caltrans storm drain within the Santa Rosa/Foothill Boulevard intersection. The sewer line runs approximately perpendicular to the storm drain. Based on the date of construction, the cause of the damage is unknown, but the location of the storm drain puncture was verified through video inspections of the pipe’s interior. The proposed plan to mitigate the conflict involves reconstructing approximately 464 linear feet of the sewer main within Foothill Boulevard to lower its elevation below the storm drain, improving vertical clearance between the utilities by one foot or more. This effort will resolve the existing utility conflict, enhance the functionality of both systems and ensure long-term reliability. The Project will also result in a reduction of maintenance activities and inflow and infiltration that have previously been recorded in this catchment area, and it will replace an existing deteriorated maintenance hole. Caltrans is proposing a separate project to replace approximately 20 feet of the existing storm drain culvert within Santa Rosa/State Route 1 in the summer of 2025 at no cost to the City.

On February 4, 2025, the City Council authorized the advertisement for bids for the Project. City Council also authorized 1) the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $562,000 and 2) the City Engineer to approve Contract Change Orders up to the available project budget and any amended budget subsequently approved by the City Manager up to $200,000. Bid packages were opened May 8, 2025, and the lowest responsible base bid was received from Souza Construction in the amount of $598,591 (see table below, and Attachment A), which exceeds the Engineer’s Estimate and requires subsequent consideration and authorization by City Council to award.

Engineer’s
Estimate
RCH
Construction
Souza Engineering
Contracting, Inc
Base Bid $562,000 $562,501.85 $598,591
Add. Alt. $12,000 $7,758.48 $20,674
Bid with Add. Alt. $574,000 $570,260.33 $619,265
After reviewing the bid packets, the Bid Bond for RCH Construction was found to be defective because the incorrect project name and scope were listed with the bid packet.

The bidder’s bond provided by RCH does not evidence a sufficient security for the Foothill-Santa Rosa Sewer Pipeline Replacement Project. Therefore, the bid from RCH Construction is non-responsive per Public Contract Code Section 20170-20171, which requires all bids submitted by the deadline under a sealed cover to include a bidder’s bond executed by an admitted surety insurer for the proposed work.

Bid documents for Souza Construction are in order, and project references meet the minimum requirements. Staff is recommending the award of the Base Bid construction contract to Souza Engineering Contracting, Inc., who are determined to be the lowest

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Item 5l
responsive and responsible bidder after review of the Bid Packet. The additive alternate is currently rejected to preserve available funds for construction contingencies.

Previous Council or Advisory Body Action
This Project was identified in the 2023-25 Financial Plan Supplement (Fiscal Year 2024- 25 Supplemental Budget) that was approved by Council on June 4, 2024, with a budget of $350,000.

As summarized above, on February 4, 2025, the City Council authorized the advertisement for bids for the Project, including additional actions for funding, contract award, and the approval of potential subsequent change orders.

Public Engagement
The project was identified in the 2023-25 Financial Plan Supplement (Fiscal Year 2024- 25 Supplemental Budget), which was adopted by the City Council at a public meeting held on June 4, 2024. Public comment was open prior to and during the Council Meeting when the 2024-25 Supplemental Budget was approved. The Project was also presented on the City Council public meeting consent agenda (February 4, 2025), which provided the opportunity for public comment. No public comments were received on the item.

CONCURRENCE
The City, including the Utilities and Public Works Departments, have been coordinating with Caltrans regarding the proposed resolution to the utility conflict between the Caltrans storm drain and the City’s sewer main. Caltrans concurs with the City’s proposed plans, and the City will receive an encroachment permit from Caltrans prior to construction of the project. The project also has the concurrence of the Public Works Department.

ENVIRONMENTAL REVIEW
On February 4, 2025, the City Council found the Project categorically exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Sections 15303 (New Construction or Conversion of Small Structures) and 15304 (Minor Alterations of Land). The recommended action does not include any changes to the Project and is consistent with Council’s previous determination.

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
Foothill-Santa Rosa
Sewer Pipeline
$562,000 $0 $0 N/A

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Item 5l
Replacement,
Project (2000096):

Sewer Fund
Completed Projects
(602-9501-71501)
$356,331 $126,000 $230,331
Total $918,331 $126,000 $230,331 N/A
Foothill-Santa Rosa Sewer Replacement (2000096)
Construction Base Bid $598,591
Contingencies $74,000
Material Testing $9,600
Permitting $5,000
Printing $809
Total Cost of Project $688,000
Total Available Funding $562,000
Additional Funding $126,000
Remaining Balance $0
The Foothill-Santa Rosa Sewer Pipeline Replacement Project was budgeted in the 2023- 25 Financial Plan Supplement (Fiscal Year 2024-2025 Supplemental Budget, Page 60) where it was allocated $350,000. On February 4, 2025, the City Council authorized the transfer of $212,000 in funding from the Sewer Fund to the Project; therefore, funding for this project has a current balance of $562,000. Staff is recommending an additional reallocation of $126,000 from the Sewer Fund Completed Projects account for a total project budget of $688,000.

ALTERNATIVES
Deny transfer of $126,000 from the Sewer Fund to the Project. The City Council may choose to deny the transfer of additional funding to the Project. If the additional funding is denied, the bid would not be awarded and the Project would not be constructed. If the Project is not constructed, the existing 1965 City-owned sewer main would remain in conflict with the Caltrans storm drain. This action would halt the subsequent Caltrans storm drain culvert replacement project and would leave the City’s existing sewer main out of compliance with City Standard Specifications and Engineering Standards.

Forgoing this project would inhibit the City’s ability to improve maintenance accessibility, address degradation of the existing maintenance hole, and minimize inflow and infiltration into the affected wastewater collection system.

ATTACHMENTS
A - Foothill-Santa Rosa Sewer Pipeline Replacement, Specification Number 2000096 Bid Tabulations

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Bid Opening 5/9/2025
Item # Item Description Unit of
Measure
Estimated
Quantity Item Price Total Item Price Total Item Price Total 1 TRAFFIC CONTROL PLAN AND IMPLEMENTATION LS 1 $ 50,000.00 $ 50,000.00 $ 79,773.89 $ 79,773.89 $ 47,900.00 $ 47,900.00 2 POTHOLING LS 1 $ 12,000.00 $ 12,000.00 $ 7,947.53 $ 7,947.53 $ 22,320.00 $ 22,320.00 3 REPLACE TRAFFIC STRIPING & MARKERS LS 1 $ 25,000.00 $ 25,000.00 $ 10,203.02 $ 10,203.02 $ 22,420.00 $ 22,420.00 4 OBTAIN AND COMPLY WITH NIGHT WORK PERMIT LS 1 $ 10,000.00 $ 10,000.00 $ 6,198.89 $ 6,198.89 $ 22,020.00 $ 22,020.00 5 WATER POLLUTION CONTROL AND EROSION/SEDIMENT CONTROL
PLAN
LS 1 $ 5,200.00 $ 5,200.00 $ 6,462.14 $ 6,462.14 $ 2,385.00 $ 2,385.00 6 SHEETING, SHORING, AND BRACING LS 1 $ 16,000.00 $ 16,000.00 $ 27,487.22 $ 27,487.22 $ 9,150.00 $ 9,150.00 7 COMPLY WITH OSHA LS 1 $ 15,000.00 $ 15,000.00 $ 6,198.89 $ 6,198.89 $ 6,457.00 $ 6,457.00 8 PUBLIC NOTIFICATION LS 1 $ 7,000.00 $ 7,000.00 $ 6,198.89 $ 6,198.89 $ 710.00 $ 710.00 9 REPAIR TRAFFIC SIGNAL LOOPS LS 1 $ 19,000.00 $ 19,000.00 $ 17,430.17 $ 17,430.17 $ 10,720.00 $ 10,720.00 10 ABANDON SEWERLINE, MANHOLES AND FACILITIES LS 1 $ 25,000.00 $ 25,000.00 $ 22,359.97 $ 22,359.97 $ 29,230.00 $ 29,230.00 11 SEWER BYPASS PUMPING LS 1 $ 28,000.00 $ 28,000.00 $ 48,850.10 $ 48,850.10 $ 20,855.00 $ 20,855.00 12 ROCK EXCAVATION CY 50 $ 200.00 $ 10,000.00 $ 354.08 $ 17,704.00 $ 212.00 $ 10,600.00 13 REMOVE EXISTING SEWERLINE AND INSTALL NEW 6" HDPE

SEWERLINE
LF 13 $ 400.00 $ 5,200.00 $ 1,336.60 $ 17,375.80 $ 1,598.00 $ 20,774.00 14 REMOVE EXISTING SEWERLINE AND INSTALL NEW 8" HDPE

SEWERLINE
LF 250 $ 450.00 $ 112,500.00 $ 286.80 $ 71,700.00 $ 398.00 $ 99,500.00 15 INSTALL NEW 8" HDPE SEWERLINE TRENCHLESS METHOD LF 200 $ 450.00 $ 90,000.00 $ 282.25 $ 56,450.00 $ 484.00 $ 96,800.00 16 INSTALL NEW MANHOLE EA 3 $ 20,000.00 $ 60,000.00 $ 12,913.42 $ 38,740.26 $ 26,650.00 $ 79,950.00 17 INSTALL COATING ON SEWER MANHOLE EA 3 $ 4,500.00 $ 13,500.00 $ 17,141.30 $ 51,423.90 $ 5,370.00 $ 16,110.00 18 REMOVE EXISTING MANHOLE EA 1 $ 3,000.00 $ 3,000.00 $ 10,971.64 $ 10,971.64 $ 3,466.00 $ 3,466.00 19 CONNECT EXISTING SEWER LATERAL TO SEWER MAIN EA 2 $ 2,000.00 $ 4,000.00 $ 4,445.81 $ 8,891.62 $ 9,417.00 $ 18,834.00 20 RE-GRADE AND EXTEND SEWER LATERAL LF 20 $ 80.00 $ 1,600.00 $ 543.87 $ 10,877.40 $ 1,200.00 $ 24,000.00 21 REPLACE DRIVEWAY RAMP PER ENG. STD. 2110 AND SIDEWALK TIEIN EA 1 $ 25,000.00 $ 25,000.00 $ 14,354.92 $ 14,354.92 $ 17,400.00 $ 17,400.00 22 CURB AND GUTTER REPAIRS AND REPLACEMENTS LS 1 $ 25,000.00 $ 25,000.00 $ 24,901.60 $ 24,901.60 $ 16,990.00 $ 16,990.00 $ 562,000.00 $ 562,501.85 $ 598,591.00

ADDITIVE ALTERNATE
23 CUT AND CAP EXISTING SEWER AND REPAIR STORM PIPE PER DETAIL 2 AND 4
LS 1 $ 12,000.00 $ 12,000.00 $ 7,758.48 $ 7,758.48 $ 20,674.00 $ 20,674.00 $ 574,000.00 $ 570,260.33 $ 619,265.00
Note 1 - Bid totals corrected by City during audit and bid evaluation are shown in italics.

Foothill-Santa Rosa Sewer Pipeline Replacement, Specification No. 2000096 Total Project Bid
Engineer's Estimate RCH Construction Souza Construction Base Project Bid

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Item 6a
Department: Fire
Cost Center: 8503
For Agenda of: 6/3/2025
Placement: Public Hearing
Estimated Time: 120 minutes
FROM: Todd Tuggle, Fire Chief
Prepared By: Todd Tuggle, Fire Chief
SUBJECT: INTRODUCE A DRAFT ORDINANCE ADOPTING THE CALFIRE LOCAL

RESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONE MAPS AS
REQUIRED BY GOVERNMENT CODE 51178

RECOMMENDATION
Adopt an Ordinance entitled “An ordinance of the City of San Luis Obispo, California, designating the Fire Hazard Severity Zones as identified by the State Fire Marshal.” (Attachment A)

REPORT-IN-BRIEF
Government Code 51179 requires local agencies to adopt the State’s Fire Hazard Severity Zone maps in order to require certain standards in each of the three hazard severity zones (Very High, High, and Moderate). Each zone has different risk mitigation requirements and procedures, but generally covers building code requirements, defensible space requirements, and real estate transaction disclosures for properties located in the respective zones. The State published the Fire Hazard Severity Zone maps for the area including San Luis Obispo on March 10, 2025 (Attachment B).

Government Code 51179 requires a public review and comment period, which began on March 24. During this time, the City published and provided access to the Fire Hazard Severity Zone maps and the opportunity to provide comments through the Open City Hall portal, City social media outlets, and an informational page on the City’s Fire Department web page. Comments will be accepted until June 16th, at which time any additional feedback received between the first reading of the Fire Hazard Severity Zone ordinance adoption and the second reading will be communicated via agenda correspondence. City staff also conducted a community workshop on May 22, 2025, where the public was invited to provide comments and staff answered questions.

This report presents information about the State published maps and outlines the impact that the adopted maps will have on property owners in the City through requirements

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related to home hardening, defensible space, and real estate disclosures. Consistent with Government Code 51179, the City Council must adopt Fire Hazard Severity Zone Maps by July 8, 2025 (120 days from the State Fire Marshal’s publication of the hazard maps on March 10th). At this time, staff is recommending that the City Council adopt the map, as provided by the State, without amendments.

POLICY CONTEXT
Under Government Code 51179, each jurisdiction must adopt by ordinance their respective CALFIRE Local Responsibility Area Fire Hazard Severity Zone maps within 120 days of the publish date by the State Fire Marshal. New maps applicable to San Luis Obispo were published by the State Fire Marshall on March 10, 2025. The recommended action for this agenda item is the first reading of the City’s ordinance adopting the state maps and provides an opportunity for the City Council and community to discuss the implications of the hazard maps. A second reading of the ordinance and adoption is proposed to occur on June 17th.

Government Code 51179 allows the City to modify the State Fire Marshal’s map to add parcels in the moderate, high, and very high severity zones based on substantial evidence that the designations are necessary for effective fire protection within the area, but the City may not remove parcels from a severity zone nor decrease the level of severity zone for any area identified by CALFIRE. Staff are not recommending modifications to the fire zones as identified and designated by CALFIRE. The new designations, compared to the prior map adopted in 2011, increase the number of parcels within the very high severity zone in the City by over a hundred-fold, add over 6,000 additional parcels to high and moderate severity zones, and bring 64% of the city’s total parcels within a fire hazard severity zone.

The City’s Climate Adaption and Safety Element (CASE) of the General Plan (2023) includes the prior Fire Hazard Severity Zone (FHSZ) map and the following related policies and programs:

Policy FI-5.1: Reduce Wildfire Risk – The City shall reduce the risk of wildfires in city open spaces and in the wildland urban interface through timely implementation of the City’s Community Wildfire Protection Plan and the Vegetation Management Plan (VMP).

Program FI-5.15: Wildland-Urban-Interface Defensible Space and Home Hardening Program - Implement a program to assist homeowners, landlords, and business owners in improving the defensible space for structures in or near the very high fire hazard severity zones. The program will serve to connect participants to contractors with experience in developing or improving home hardening improvements (e.g., fire-safe building materials, fire resistant home vent upgrades). The program will seek funding to supplement the costs associated with defensible space improvements, prioritizing low-income participants and elderly or

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disabled residents who would not be able to implement defensible space improvements on their own. The program would be developed and administered in close collaboration with the City’s Fire Department and CAL FIRE to ensure appropriate standards for defensible space are implemented as part of the program consistent with AB 3074 (“Fire Prevention: wildfire risk: defensible space:
ember-resistant zones”).

Program FI-5.19: Fire Protection Plans Related to New Development - Develop standards for new development in the Very High Fire Hazard Severity Zones or WildlandUrban Interface Zones requiring preparation of project-specific fire protection plans, in addition to complying with all applicable state and local building and fire code regulations.

Fire protection plans may include a risk analysis, discussion of fire response capabilities, compliance with fire safety requirements (defensible space, fire protection infrastructure, building ignition resistance, etc.), appropriate mitigation measures and design considerations for any nonconforming fuel modification, maintenance, and education for residents.

Policy FI-5.2: City-Wide Fire-Smart Land-Use Planning - The City shall minimize fire risk in land-use planning decisions including updates to zoning, subdivision codes and design criteria to mitigate wildfire hazards and reduce risks to new development.

Promote the following risk reduction measures in future land use planning efforts in the city:
 New subdivisions shall be prohibited in areas of “Very High” wildland fire hazard severity zone as shown in Figure 11 unless part of conservation or open space acquisition program. Development of existing parcels shall require a development plan to manage fuels, maintain a buffer zone, and provide adequate fire protection to the approval of the Chief Building Official. The development plan must be consistent with Policies required by the City’s Conservation and Open Space Element.
 Use wildfire risk analysis resources such as the CAL FIRE’s Fire and Resource Assessment Program data in updates to future housing site constraints analyses.  Promote the use of clustered development patterns for subdivisions to require less fire suppression resources and that are easier to defend during wildfire events.

Policy FI-5.3: City-Wide Fire-Smart New Development - The City shall only approve development when adequate fire suppression services and facilities are available or will be made available concurrent with development, considering the setting, type, intensity, and form of the proposed development. Ensure that new development projects include adequate measures to minimize fire hazards while remaining in compliance with housing laws regarding objective design standards and discretionary review.

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Fire protection plans should address wildland fuel transition zones surrounding the development and include the following components:
 Provisions for the maintenance of vegetation within the subdivision to reduce wildfire risk
 Requirements for hardening of structures to mitigate fire risk that meets or exceed the California Building Code
 Landscaping and defensible space design around a proposed structure that reduces wildfire risk.

Policy FI-5.4: Fire-Smart Buildings and High or Very High Fire Hazard Severity Zone - The City shall reduce wildfire risk associated with new development by requiring all new development located within any CAL FIRE designated High or Very High Fire Hazard Severity Zone to:
 Meet or exceed the State’s Fire Safe Regulations (title 14, CCR, division 1.5, chapter 7, subchapter 2, articles 1-5 commencing with section 1270) and Fire Hazard Reduction Around Buildings and Structures Regulations (title 14, CCR, division 1.5, chapter 7, subchapter 3, article 3 commencing with section 1299.01).  Include designs to minimize pockets or peninsulas or islands of flammable vegetation within a development.
 Include additional access roads, where feasible, to ensure adequate access for emergency equipment and civilian evacuation concurrently. More than one evacuation route is required for substantial development (as defined in policy OP7.3 Emergency Access and Evacuation) in Very High Fire Hazard Severity Zones.

All requirements and any deviations will be at the discretion of the Fire Code Official.
 Meet or exceed the California Building Code for Materials and Construction Methods for Exterior Wildfire Exposure (Title 24, part 2, Chapter 7A).  For all remodeled or rebuilt structures, require projects to meet current ignition resistance construction codes included in the State’s Fire Safe Regulations.

DISCUSSION
Background
In California, fire protection responsibility is divided between the state and local entities.

State Responsibility Areas (SRAs) are lands where the state, through CAL FIRE, is responsible for wildfire prevention and suppression. Local Responsibility Areas (LRAs) are areas where local agencies, like city and county fire departments, are responsible.

State Responsibility Areas (SRAs):
 CAL FIRE provides fire protection for SRA lands, which are generally wildland areas, including national forests, private forests, and some undeveloped areas.

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 CAL FIRE's responsibility includes preventing and suppressing wildfires, maintaining fire protection infrastructure, and managing fire-related risks on these lands.
 SRA designations are reviewed every five years, with annual updates for incorporations, annexations, and ownership changes.

Local Responsibility Areas (LRAs):
 LRAs encompass incorporated cities, urban areas, agricultural lands, and some desert areas.
 Local fire agencies, such as city and county fire departments, are responsible for fire protection and emergency response within their jurisdiction.  In LRAs, local agencies may also have responsibility for fire hazard severity zones and building codes related to wildfire safety.

Assembly Bill 337 (Bates 1992), prompted by the devastating fire that occurred in the Oakland and Berkeley Hills in 1991, calls for CALFIRE to evaluate fire hazard severity in the Local Responsibility Area and to make a recommendation for mitigation strategies to the local jurisdiction where Very High Fire Hazard Severity Zones exist (CA Govt.

Code 51175 et seq).

The process to designate fire hazard severity zones in the City last occurred in 2011 and is directed by state law. Fire Hazard Severity Zones consist of Very High, High, and Moderate designations. Of note, when the current maps were released in 2011, the High and Moderate designations did not apply to the Local Responsibility Area, and only Very High designations were required to be adopted by the City Council. Senate Bill 63 (Stern, 2021) amended Government Code 51178 to add the Moderate and High Fire Hazard Severity Zones in the Local Responsibility Area.

Changes to Fire Hazard Severity Zone Maps in the City
The CALFIRE recommended Fire Hazard Severity Zone maps have substantially increased the affected parcels in the 2025 Local Responsibility Area maps, including in the City of San Luis Obispo. The factors considered by CALFIRE in determining fire hazard within wildland areas are fire history, flame length, terrain, local weather, and potential fuel over a 50-year period. Mitigation measures such as vegetation management, defensible space and home hardening are not considered in CALFIRE’s development of the hazard maps. Nor do the CALFIRE maps consider local factors such as structure separation distance, year of construction, construction type, or roadway design and capacity.

The previous 2011 CALFIRE Hazard Maps covered a small portion of the City both in acres and in number of parcels within the Very High designation. The 2025 maps, however, added two more zones to the City’s responsibility area, the High and Moderate designations. Not only did the Very High zone grow by a factor of 100, but

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the two additional zones were also added, bringing over 60% of parcels in the City into a Fire Hazard Severity Zone.

The following table shows the number of parcels and the acreage for each zone within the City under the 2025 maps.

Fire Hazard Number of Parcels Total Total %
Severity Designation within City Limit Acreage Of City Area Very High 2,845 2520 28.6%
High 1,632 905 10.3%
Moderate 4,305 2210 25.1%
Non-Wildland 7,943 3175 36.0%
Total 16,725 8823 100%
The following map shows a comparison between the 2011 Fire Hazard Severity Zone maps for the San Luis Obispo Local Responsibility Area and the 2025 Fire Hazard Severity Zone maps that include all three hazard severity zones and reflect enhanced vegetation fire spread modeling, especially ember cast projections.

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An interactive map that shows the change from the previous Fire Hazard Severity Zone maps to the 2025 maps can be found here:
https://www.slocity.org/government/department-directory/fire-department/prepareslo/fire-hazards. This map is searchable by address so residents can easily identify the zone that applies to their property.

A close review of the new map shows that some parcels are bisected by two different zones. For instance, a portion of a parcel may be in a very high hazard severity zone while another portion is in the high hazard severity zone. The ordinance proposed for introduction (Attachment A) includes language to clarify that, for these parcels, the requirements that apply to the more severe zone shall apply to the entire parcel.

Application and Impact of the Fire Hazard Severity Zone Requirements With the adoption of the Local Responsibility Area Fire Hazard Severity Zone maps, there are specific requirements that properties located in each of the designated zones must follow.

All properties in areas designated as Very High Fire Hazard Severity Zones must, at a minimum, follow the vegetation management rules in Government Code Section 51182.

These vegetation management rules are referred to as “Defensible Space” requirements. In addition, any new buildings—or major remodels considered new construction by the Building Official—must meet the ignition-resistant building standards in Chapter 7A of the Building Standards Code. These ignition-resistant building standards are referred to as “Home Hardening,” “7A,” or “WUI” (Wildland Urban Interface) requirements. Furthermore, new or reconstructed homes in very high fire hazard severity zones have additional certification requirements. New occupied structures, or occupied structures previously damaged by a fire in a very high fire hazard severity zone, must obtain a certification and final inspection report from the local building official confirming that the structure complies with applicable building standards and must provide that documentation, upon request, to the insurance carrier that insures the structure.

In areas designated as High Fire Hazard Severity Zones, all new construction, or major remodels classified by the Building Official as new construction, are required to meet home hardening construction requirements included in Chapter 7A of the Building Standards Code.

Residential properties within the Very High and High Fire Hazard Severity Zones must conduct a natural hazard real estate disclosure at time of sale per Civil Code 1102.19 and 1102.6f (AB 38, 2019). This is commonly referred to as an “AB 38 Disclosure.” There are currently no state-mandated requirements that apply to properties identified in the Moderate Fire Hazard Severity Zones.

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The following Table 1 summarizes the requirements that apply to each severity zone category:

Severity
Zone
Defensible
Space
Home
Hardening
Certification
of Home
Hardening
AB 38
Disclosure
Very High X X X X
High X X
Moderate
 Defensible Space
Spread of wildfire into the built
environment occurs through two main
mechanisms, direct flame contact of
vegetation near a structure and
embers landing near a structure
starting adjacent vegetation or the
structure itself on fire.

Defensible space,1 or modification of
the vegetation around a structure,
provides a critical buffer to the spread
of vegetation fires to structures. Further, homes that are not directly abutting vegetation are at risk of ember cast which can start a vegetation fire adjacent to a structure, creating the start point for structure fires. Once a structure does ignite, the predominate fuel that spreads fire becomes the structures themselves. Once multiple structures are involved, the capacity of firefighters and the hydrant water infrastructure to contain fire spread are exceeded. With multiple burning structures turning into entire neighborhoods burning, urban conflagration occurs. Slowing the spread of vegetation fires into the built environment buys firefighters time to extinguish the fires before structure-to-structure fire spread can take hold and urban conflagration occur.

Government Code 51182 requires property owners within very high fire hazard severity zones to maintain defensible space at all times consistent with the following:

1 Government Code 51172 defines “defensible space” as “the area adjacent to a structure or dwelling where wildfire prevention or protection practices are implemented to provide defense from an approaching wildfire or to minimize the spread of a structure fire to wildlands or surrounding areas.”

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1. 100 foot zone - Defensible space must be maintained within 100 feet from each side and from the front and rear of the structure to the property line. a. A greater distance may be required by state law, local ordinance, rule, or regulation. Fuel modification beyond the property line may only be required by state law, local ordinance, rule, or regulation in order to maintain 100 feet of defensible space from a structure. Fuel modification on adjacent property shall only be conducted following written consent by the adjacent landowner. A local ordinance may include provisions to allocate costs for any fuel modification beyond the property line.
i. The proposed ordinance provided in Attachment A does not recommend extending defensible space requirements beyond the property line nor beyond 100 feet at this time.
b. The intensity of fuels management may vary within the 100-foot perimeter of the structure, with more intense fuel reductions being used between 5 and 30 feet around the structure, and an ember-resistant zone being required within 5 feet of the structure, based on regulations promulgated by the State Board of Forestry and Fire Protection, in consultation with the Office of the State Fire Marshal, to consider the elimination of materials in the ember-resistant zone that would likely be ignited by embers. The regulations may also alter the fuel reduction required between 5 and 30 feet to integrate the ember-resistant zone requirements.
i. On February 6, 2025, the Governor issued Executive Order N-18-25 that includes an order to the Board of Forestry and Fire Protection to create regulations for an ember-resistant zone within 0 to 5 feet of a home ("Zone 0 regulations") and to complete the formal rulemaking process no later than December 31, 2025. Draft regulations have been posted to the Board of Forestry and Fire Protection’s website and have begun the rule-making process.
ii. Property owners will have up to three years to comply with the ember-resistant zone regulations (Zone 0 regulations) following adoption by the Board of Forestry and Fire Protection.
iii. The Board of Forestry and Fire Protection website provides the following depiction of the different fuel reduction measures for illustration purposes:

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iv. Other LRAs have established jurisdiction-specific regulations defining the level of defensible space required in the 0-5, 5-30, and 30-100 foot zones around a structure to assist property owners and enforcement agencies in the administration of the requirements of Government Code 51182. The City has not yet developed its own set of regulations, but staff are evaluating available models and will present options for consideration by Council at a future study session, as discussed in more detail below.
c. An insurance company that insures an occupied dwelling or occupied structure may require a greater defensible space distance than 100 feet if a fire expert, designated by the fire chief or fire official from the authority having jurisdiction, provides findings that the fuel modification is necessary to significantly reduce the risk of transmission of flame or heat sufficient to ignite the structure, and there is no other feasible mitigation measure possible to reduce the risk of ignition or spread of wildfire to the structure.

The greater distance may not be beyond the property line unless allowed by state law, local ordinance, rule, or regulation.
i. The proposed ordinance provided in Attachment A does not include findings or recommendations to require defensible space greater than 100 feet pursuant to this subsection of Government Code 51182.

2. Defensible space definitions - Fuels shall be maintained and spaced in a condition so that a wildfire would be unlikely to ignite the structure. This includes consideration of the following:
a. The amount of fuel modification necessary shall consider the flammability of the structure as affected by building material, building standards, location, and type of vegetation.
b. Defensible space requirements do not apply to single specimens of trees or other vegetation that are well-pruned and maintained so as to effectively

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manage fuels and not form a means of rapidly transmitting fire from other nearby vegetation to a structure or from a structure to other nearby vegetation or to interrupt the advance of embers toward a structure. c. Consistent with fuels management objectives, steps should be taken to minimize erosion, soil disturbance, and the spread of flammable nonnative grasses and weeds.
d. The property owner must remove any portion of a tree that extends within 10 feet of the outlet of a chimney or stovepipe.
e. The property owner must maintain a tree, shrub, or other plant adjacent to or overhanging a building free of dead or dying wood.
f. The property owner must maintain the roof of a structure free of leaves, needles, or other vegetative materials.

Government Code 51189 also directs the Office of the State Fire Marshal to develop a model defensible space program for use by local jurisdictions in the enforcement of the defensible space provisions of Section 51182. The Office of State Fire Marshal has published some information regarding defensible space on its website, including a model defensible space inspection guide. The Department of Forestry and Fire Prevention has also published a set of guidelines for the creation of defensible space, which are focused on fuel reduction in the area of 30-100 feet from structures and buildings. Additionally, the Fire Code (Chapter 49 of the 2022 California Fire Code, Title 24, Part 9) contains requirements for new plantings to meet defensible space standards for properties within very high fire hazard severity zones. These requirements are typically applied when new construction occurs that trigger Chapter 7A standards.

The City does not currently have an adopted defensible space ordinance delineating locally applicable definitions and requirements that build upon the state statutes and regulations mentioned above. However, staff are currently evaluating these otherwise applicable standards and researching other model programs and will develop a set of recommendations for discussion at a future study session with the City Council. The goal of this future study session will be to, first, recommend definitions and standards for defensible space in the 0-5, 5-30, and 30-100 foot spaces around a structure or building that take into account current state regulations, including the Zone 0 regulations that are currently underway, and that also incorporate plant lists that are appropriate for the San Luis Obispo climate and ecosystem. Second, staff will propose options for an inspection and enforcement program that will assist in implementation of the defensible space requirements. It is anticipated that this study session will occur by the end of 2025, depending on the status of the Zone 0 regulations. A defensible space ordinance will then be completed and presented for consideration by the end of the next fiscal year.

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 Home Hardening
All new construction within the Very High and High Hazard Severity Zones will require Chapter 7A Building Code compliant construction. Additionally, any remodels exceeding 50% of the existing structure’s value will require an upgrade to Chapter 7A compliance.

Government Code 51182 also requires homes within Very High Fire Hazard Severity Zones that were damaged by wildfire to meet Chapter 7A requirements, and certification requirements apply to all new homes in very high zones as described above.

Structural hardening according to Chapter 7A provides an additional layer of defense that buys time for the responders to extinguish wildland fires. If a fire can spread through managed fuels and progress through defensible space, home hardening is another layer of protection.

Chapter 7A of the California Building Code focuses on fire resistant materials and methods of construction. Building a new home to meet Chapter 7A standards in the City of SLO does not appear to dramatically increase construction costs compared to a standard home. Estimates indicate that a code-compliant wildfire-resistant home can be built for about the same cost as a typical home. This is because some upgrades (like fiber-cement siding) may reduce costs, offsetting the added expense of other features.

Overall, the cost premium for Chapter 7A compliance in new construction ranges between 0–5%. The table below, from Headwater Economics, itemizes the estimated cost impact for each required feature, assuming a baseline new home built with conventional materials (as might be used outside fire zones):

Table 2: Estimated Added Cost for Building Code Chapter 7A Features – New 2,500 sq. foot home
Feature
Baseline (Non7A)
Standard
Chapter 7A
Requirement
Estimated
Added Cost
(New
Construction)
Class A Roof
Assembly
Class C/B roof (e.g.
wood shakes) or
basic asphalt
shingles
Class A fire-rated roof
(e.g. composition
shingles) plus
enclosed eaves,
fireproof soffits, metal
drip edges, etc.
+$5,860 (+27% vs. a
typical roof). Covers
upgraded vents,
soffits
& gutter guards.

Tempered Glass
Windows
Dual-pane windows
(tempered only where
building code
requires,
e.g. near doors)
Dual-pane windows
with at least one
tempered glass pane
each (often both
panes)
+$1,000–$2,000
(approx. $7 extra
per sq ft of glass) for
a whole-house
window package
(e.g. ~15 windows).

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Feature
Baseline (Non7A)
Standard
Chapter 7A
Requirement
Estimated
Added Cost
(New
Construction)
Ember-Resistant
Vents
Standard
attic/foundation
vents (1/4-inch
mesh)
Wildfire-rated emberand flame-resistant
vents (≤1/8-inch mesh
or intumescent)
+$500 (assuming ~10–
20 vents at ~$50 each
vs. ~$10 each
standard)
Covered Gutters Standard
aluminum gutters
(open, no covers)
Metal gutters with noncombustible mesh
covers (“gutter guards”)
to prevent debris
buildup
+$800 (for ~120 lf
of gutter; gutter
guard
~$4–$12 per lf in
Berkeley. Minimal if
gutters are already
metal.

Non-Combustible
Siding
Wood or vinyl
siding
(combustible)
Fiber-cement siding or
stucco (noncombustible Class A)
~$0 (cost-neutral on
average). Using fibercement lap siding can
save up to ~$12,190
compared to cedar
wood siding,
offsetting other costs.

Underfloor Protection Open crawl space or
exposed eaves/floor
appendages
5/8″ Type X gypsum
sheathing or other
protection under
exposed
floors/eaves
+$2,500 (if needed).

Approx. $1.24 per sq ft
of area to cover
(Homes on slab or with
enclosed crawlspace
incur $0 extra cost.)
Fire-Resistant
Decking
Wood deck (e.g.
redwood or
cedar)
Deck boards of noncombustible or ignitionresistant material (composite, trex, etc.)
and metal flashing at
wall interface
+$1,850 (~19%
premium) for a typical
deck (e.g. 300–400 sq
ft). Composite decking
costs ~$2–$5 more
per sq ft than wood.

Total Premium: Approximately $0–$40,000 added, depending on baseline choices. In many cases the net premium is under 2% of construction cost and can be near zero.

For example, a 2,500 sq. ft. wildfire-resistant home studied by Headwaters Economics2 actually cost 2% less than the same home with typical materials, because the cheaper fiber-cement siding outweighed the added expense of vents, soffits, and other upgrades.

Comparatively, a 2020 report for the National Association of Home Builders estimates an overall increase in cost of $1800-$38,000 in total cost for a two-story house3. In any

2 Headwater Economics, (November 2018), Building a Wildfire-Resistant Home: Codes and Costs, https://headwaterseconomics.org/wildfire/homes-risk/building-costscodes/#:~:text=Wildfire,neighboring%20home%20spacing%2C%20not%20all 3 Home Innovation Research Labs. Cost Impact of Building a House in Compliance with IWUIC. Report No. CR1328-2-12-302020. For the National Association of Home Builders, December 2020.

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event, research indicates that the added Chapter 7A features may add a few dollars per square foot of cost to the construction of new homes.

Since 2012, San Luis Obispo Municipal Code 15.04.090.NN has declared the entire City a “Community at Risk”, making certain portions of Chapter 7A applicable to all new construction in the City. Construction modifications such as ignition resistant exterior wall coverings, ember resistant vent systems for attics and under floor areas, protected eaves, and Class ‘A’ roof coverings resist the impacts of embers and the radiant heat of direct flame contact for much longer than traditional construction means. There are numerous examples of homes surviving wildfires because of home hardening, defensible space and vegetation management practices of the community and the property owners. This is important to note, as construction that has taken place since 2012 has already incorporated some home hardening components that will be required per 7A requirements.
 AB 38 Disclosure
Enacted in 2019, AB 38 requires sellers of residential properties after January 1, 2021, that are within very high or high fire hazard severity zones and that were built before January 1, 2010 (before Chapter 7A was developed), to provide certain disclosures upon sale, as codified in Civil Code 1102.6f. Those disclosures include:
(1) A statement as follows: “This home is located in a high or very high fire hazard severity zone and this home was built before the implementation of the Wildfire Urban Interface building codes which help to fire harden a home. To better protect your home from wildfire, you might need to consider improvements. Information on fire hardening, including current building standards and information on minimum annual vegetation management standards to protect homes from wildfires, can be obtained on the internet website http://www.readyforwildfire.org.” (2) On or after July 1, 2025, a list of low-cost retrofits developed and listed pursuant to Section 51189 of the Government Code. The notice shall disclose which listed retrofits, if any, have been completed during the time that the seller has owned the property.
(3) A list of the following features that may make the home vulnerable to wildfire and flying embers. The notice shall disclose which of the listed features, if any, that exist on the home of which the seller is aware:
(A) Eave, soffit, and roof ventilation where the vents have openings in excess of one-eighth of an inch or are not flame and ember resistant. (B) Roof coverings made of untreated wood shingles or shakes. (C) Combustible landscaping or other materials within five feet of the home and under the footprint of any attached deck.
(D) Single pane or nontempered glass windows.
(E) Loose or missing bird stopping or roof flashing.
(F) Rain gutters without metal or noncombustible gutter covers.

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AB 38 also provides that, if, pursuant to Government Code 51182, a seller has obtained a final inspection report showing home hardening compliance, the seller shall provide to the buyer a copy of that report or information on where a copy of the report may be obtained. Additionally, AB 38 adds Section 1102.19 to the Civil Code to require documentation of compliance with defensible space requirements for properties in very high or high fire hazard severity zones that are within the State Responsibility Area or that are subject to local vegetation management ordinances. The City does not currently have an adopted local vegetation management ordinance that would trigger the additional disclosure requirement of Civil Code 1102.19.

Impact of Adopted Maps on Development Potential
In addition to the impact that the newly adopted maps will have on existing properties, City staff are also working to understand the impact that the maps may have on development potential in the community, particularly as it relates to housing development. For example, several State laws passed in recent years provide “byright,” or non-discretionary approvals for subdivisions of properties and/or the addition of units and ADUs. These new laws limit local discretion over land use decisions, and further study is likely necessary in order to determine how the designation of new areas in the adopted Fire maps will impact the applicability of these laws. At this time, staff has clarity on the following aspects:

Impact on Minor Urban Lot Splits & Two Unit Developments (SB 9) Minor Urban Lot Splits (a.k.a., SB 9 Lot Split) allow a property owner to subdivide their single-family zoned property into two new lots of relatively equal size. Each resulting lot is allowed to have two residential dwelling units for a maximum of four dwelling units on the property originally subdivided. The provisions of SB 9 and subsequent related legislation also allow for “Two Unit Developments,” where a property owner can develop two primary residences on their single-family zoned property and up to two ADUs or an ADU and a JADU where permitted. Lots with a “Two Unit Development” under these provisions are prohibited from conducting a Minor Urban Lot Split (“ULS”.) Per Chapter 16.15 of the City’s Subdivision Regulations and California Government Code Section 66411.7, Minor Urban Lot Splits are not permitted for properties that fall within the Very High Hazard Severity Zone. California Government Code Section 65852.21 similarly prohibits (by reference to Government Code Section 65913.4(a)(6)) “Two Unit Development” projects that fall within the Very High Fire Hazard Severity Zone.
 Minor ULS and “Two Unit Development” projects are not subject to this provision if located on a site that has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the

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development, including, but not limited to, standards established under the following or their successor provisions:
o Section 4291 of the Public Resources Code or Section 51182 (as applicable)
o Section 4290 of the Public Resources Code
o Chapter 7A of the California Building Code (Title 24 of the California Code of Regulations).

In other words, a Minor Urban Lot Split or a Two Unit Development may be allowed, pursuant to State law, in a Very High Fire Hazard Severity Zone if the project has been developed consistent with the defensible space and home hardening requirements described above. Staff are continuing to evaluate the extent to which the City’s General Plan policies, specifically CASE Policy FI-5.2 which prohibits new subdivisions in very high fire hazard severity zones, might continue to prohibit Minor Urban Lot Splits for properties in very high fire hazard severity zones. Additional clarification will be provided when the study session is held later this year to future define the City’s defensible space program.

Impact on Major Urban Lot Splits & Associated Housing Development (SB 684) Major Urban Lot Splits allow a property owner to subdivide a multifamily zoned property to create up to ten new lots, each being at least 600 square feet in size and required to have at least one dwelling unit up to a maximum of ten dwelling units on the property originally subdivided. This kind of subdivision can also be conducted on a single-family zoned property, but it must be vacant, less than 1.5 acres in size, and have a minimum lot size of 1,200 square feet.

Per Chapter 16.15 of the City’s Subdivision Regulations and California Government Code Section 66499.41, Major Urban Lot Splits and their associated housing development projects are not permitted for properties that fall within the High or Very High Hazard Severity Zones.

Impact on Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) Article 2, inclusive of Sections 66314 through 66332, of Chapter 13, Division 1, Title 7 of the California Government Code, does not include specific language that prohibits ADUs and JADUs based on the fire severity zone that a property falls under. However, per California Government Code Section 66314, a local agency may, by ordinance, designate areas within its jurisdiction where ADUs and JADUs are allowed. This designation may be based on the adequacy of water and sewer services and the impact of ADUs and JADUs on traffic flow and public safety. Therefore, the City may determine that residential areas that fall under the Very High Fire Hazard Severity Zone could constitute a traffic flow and/or public safety concern during an emergency scenario if density were increased through the development of ADUs and/or JADUs. Currently, the City permits ADUs in the AG, C/OS, C-N, C-C, C-R, C-D, C-T, C-S, M, R-1, R-2, R-3,

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R-4, and O (Office) zones on lots with an existing or proposed residential structure, unless otherwise stated in the City’s Municipal Code or state law. JADUs are permitted on properties where the existing or proposed use is single-family residential. The City’s Municipal Code does not limit the development of ADUs or JADUs based on the applicable fire hazard severity zone, nor does the ordinance provided in Attachment A propose to change this at this time.

Regarding the review of ADU and JADU applications, these projects, if allowed within the Very High Fire Hazard Severity Zone, will be subject to additional requirements. This includes additional Defensible Space, WUI, and water standards, as well as a requirement to provide a vegetation management plan pursuant to Chapter 49 of the Fire Code. The future study session will provide an opportunity to further explore whether the City should prohibit ADUs or JADUs in very high or high fire hazard severity zones.

Financial Considerations
The financial implications of disasters throughout the United States have initiated much stricter inquiries in municipal debt offerings. Most recently, Los Angeles saw its municipal bond rating drop, creating cost implications for recovery efforts. As rating agencies evaluate the impacts of post disaster abilities to repay bond obligations, rating agencies are looking at future bond recipients with increased scrutiny for their ability to protect the economic capacity of a community from disaster. Rating agencies are already evaluating municipal preparedness and mitigation actions as a proxy for resiliency from disaster4.

The financial impacts of fire insurance have also hit local residents, property owners and business owners. Increasingly, fire insurance has impacted the affordability of home purchases. The number of homeowners forced to take on the California Fair Access to Insurance Requirements FAIR plan (insurer of last resort) statewide has grown from just over 200,000 to over 450,000 since 20205. Total property liability exposure for the FAIR plan in the two largest zip codes for the City of SLO, 93401 and 93405, has gone from $51,412,816 and $26,642,407 to $273,150,938 and $193,181,824 respectively between 2020 and 20246.

Resilient communities with strong risk mitigation strategies are essential to lowering the risk for property owners and insurance companies alike. The Safer from Wildfires Initiative through the California Department of Insurance requires Insurance carriers in

4 https://www.politico.com/newsletters/california-climate/2025/02/25/the-monster-at-the-end-of-this-fire00206132#:~:text=MONEY%20PROBLEMS%3A%20The%20Los%20Angeles,of%20all%20local%20Cali fornia%20governments
5 https://www.cfpnet.com/key-statistics-data/
6 California FAIR Plan Property Insurance, Key statistics and Data.

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California to consider defensible space and home hardening measures for insurance discounts7. The California FAIR has also published discount offerings, including 5% for defensible space measures and 10% for home hardening measures8. Additionally, Discounts are available from Community level efforts such as FIREWISE community Certifications and the Fire Risk Reduction Community Designation which the City of San Luis Obispo obtained in 2024.

Community Resilience Strategy
A comprehensive strategy to exclude fire from structures in the City is crucial to a resilient economy and sustainable community. The actions embedded in the Fire Hazard Severity Zone maps and accompanying legislation provide a road map to resiliency through multiple phases, as outlined in a recent paper from a wildfire planning team entitled “City Scale Wildfire Loss and Relative Fire Speed: A Framework for Meaningful Community-Scale Risk Reduction.
9 ” The foundational principle of the paper is to exclude a vegetation fire from entering the community by slowing the progress of a fire from the vegetation to the built environment. Increasing the amount of time it takes a fire to enter and ignite the built environment gives firefighters a chance to protect structures in the community. Time allows more resources, in the form of more engines, airplanes, helicopters, dozers and handcrews to get to the incident and extinguish a fire before it transitions to an urban conflagration.

Vegetation Management, Defensible Space, Home Hardening, proficient emergency response and community preparedness comprise a multiprong strategy to improve resilience in the community and be prepared for the eventuality that wildfire will again impact the City.

Vegetation Management – Vegetation Management is crucial to slowing the spread of wildfire thorough the trees, brush and grasses, buying time for firefighters to extinguish a fire before it ever reaches the City.

The City of San Luis Obispo owns and manages over 4,000 acres of open space lands within the San Luis Obispo Greenbelt. The Irish Hills Natural Reserve, Cerro San Luis Natural Reserve, and Bowden Ranch Open Space are key properties that form portions of the wildland-urban interface in areas mapped in the Very High Fire Hazard Severity Zone.

7 https://www.insurance.ca.gov/01-consumers/200-wrr/Safer-from-Wildfires.cfm 8 chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.cfpnet.com/wpcontent/uploads/2025/05/FAIR-Plan-Discounts-One-Pager.pdf 9 Farley, Scott, and Dave Winnacker. City Scale Wildfire Loss and Relative Fire Speed: A Framework for Meaningful Community-Scale Risk Reduction. XyloPlan, 2025.

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Government Code 51184 provides that Section 51182 (defensible space requirements in very high fire hazard severity zones) does not apply to land or water areas acquired or managed for one or more of the following purposes or uses specified in subsection (a):
(1) Habitat for endangered or threatened species, or any species that is a candidate for listing as an endangered or threatened species by the state or federal government.
(2) Lands kept in a predominantly natural state as habitat for wildlife, plant, or animal communities.
(3) Open space lands that are environmentally sensitive parklands. (4) Other lands having scenic values, as declared by the local agency, or by state or federal law.

Staff are conducting a detailed analysis of all of the City’s open space areas within the Very High Fire Hazard Severity Zone to determine whether they fall under the definitions stated above. This will further dictate the appropriate level of vegetation management to ensure compliance with the new fire hazard maps and other regulations. Section 51184 further provides that, in the event that improved land next to these areas are subject to Section 51182, “the obligation to comply with Section 51182 shall be with the person owning, leasing, controlling, operating, or maintaining the occupied dwelling or occupied structure on the improved lands” and that “[a]ll maintenance activities and other fire prevention measures required by Section 51182 shall be required only for the improved lands, not the land and water areas described in” Section 51184(a). In other words, the statutes provide that open space lands meeting the definitions in Section 51184(a) are not required to comply with defensible space requirements. Owners of improved lands adjacent to the open space, however, are required to maintain defensible space on their properties. As discussed above, the proposed ordinance provided in Attachment A does not propose to extend defensible space or maintenance requirements beyond a property line. Therefore, a property owner in the City will not be required under Section 51184 to conduct maintenance on City open space properties that are adjacent to their properties at this time.

The City currently employs a suite of management approaches to complete vegetation treatment in City open space, including cultural, mechanical, or chemical methods.

Examples of cultural methods include livestock grazing such cattle pasturing and the targeted use of goats and sheep, as well as the recent successful partnership with yak titʸu titʸu yak tiłhini, Northern Chumash Tribe of San Luis Obispo County and Region and Cal Fire to complete both spring and fall cultural burns at Johnson Ranch Open Space; as these experiences and partnerships continue to build, the potential use and feasibility of safe and controlled cultural fires and prescribed fires in City open space closer to the urban environment will increase. Examples of mechanical methods include weed whipping of grasses, shaded fuel breaks using chainsaws and chippers, and mastication using heavier equipment. Chemical methods are oftentimes the only viable means of treating invasive species that are fire prone such as French broom (Genista

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monspessulana) and pampas grass (Cortaderia jubata), as well as distaff thistle (Carthamus lanatus) and yellow star thistle (Centaurea solstitialis) that have the capability of converting a grassland pasture to the extent that grazing is no longer a viable treatment method because the thistles are unpalatable to livestock; in all cases, chemical treatment methods are undertaken using Integrated Pest Management (IPM) protocols promulgated by the University of California Cooperative Extension.

The City was recently awarded grant funding from the State Coastal Conservancy that will support a comprehensive update of the City’s Vegetation Management Plan (VMP).

The VMP will identify treatment practices such as grazing, invasive species removal, shaded fuel breaks, and the use of cultural fire and prescribed fire, while also identifying important natural resource values and sensitive status plant and wildlife species. Staff will take a “planning and doing” approach, meaning that vegetation management will continue to be implemented while this planning effort is underway. It is anticipated that the VMP will also serve as a basis for additional, future grant applications for implementation funding.

Emergency Response – SLO City Fire is comprised of four stations, staffed with 14 firefighters a day, including a Chief Officer. SLO PD is staffed with 12-15 officers and 2-3 Sergeants on duty in a 24-hour period in addition to specialty assignments such as detectives and traffic patrol. The strategy of SLO City Fire is to get to a wildfire quickly and extinguish it before it rapidly overwhelms local resources. To augment staffing and equipment, SLO City Fire has a robust mutual aid plan with SLO County Fire, CalFire and SLO County Sheriff to augment the response to a wildfire either in, or near San Luis Obispo. As of 2025, SLO City Fire and Cal Fire have a Mutual Threat Zone agreement whereby any vegetation fire within a half mile buffer of the city boundary will elicit a wildland response from State resources, which includes helicopters, tankers, wildland engines, dozer, hand crews and additional law enforcement staffing. Additional resources take time to arrive though, reinforcing the importance of slowing the progress of a wildland fire into the built environment before resources become overwhelmed by an urban conflagration.

Community Preparedness - The last piece of San Luis Obispo’s strategy to create resilience is Community Preparedness. This includes coordinated efforts to ensure residents know how to respond to emergencies and support one another, especially those who may need extra assistance.

Preparedness begins at the individual level through programs like “Ready, Set, Go”, CERT, LISTOS, and “Know Your Zone” (a SLO County led effort to know your Evacuation Zones10). Each of these programs are designed to educate and develop community awareness about what to do when disaster occurs. Communication tools connect first

10 https://www.prepareslo.org/en/evacuation-zones.aspx

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responders and the community, ensuring fast, reliable information during emergencies.

Alert SLO, Reverse 911, Wireless Emergency Alerts, social media, and door-to-door notifications provide critical information quickly. History shows rapid evacuations save lives and one of the highest priorities during a disaster is fast and accurate communication.

Community resilience depends on strong neighborhood connections, between neighbors and especially with those most in need, beginning long before the emergency occurs. This involves knowing neighbors and engaging in important conversations to ensure that everyone has a plan to evacuate. Events like community chipping days, volunteer days, community forums, FireWise11 Communities and community-based planning create the space to develop local resilience efforts.

NEXT STEPS
The ordinance provided in Attachment A is proposed for introduction at this public hearing and, if introduced, will be brought back for a second reading on June 17, 2025. The ordinance would then take effect within 30 days. Within 30 days of adoption, staff will transmit the ordinance to the State Board of Forestry and Fire Protection as required by Government Code 51179.

Staff will monitor the ongoing development of applicable state regulations governing defensible space and home hardening requirements and will incorporate this information into a study session to be held by the end of 2025 that will describe potential defensible space and vegetation management programs. The outcomes of the study session will be incorporated into a defensible space ordinance that will be presented for consideration by the end of the next fiscal year.

Additionally, the State Building Code, Fire Code and forthcoming WUI codes will be published in July. Staff from Fire and Building and Safety will be reviewing the new codes and recommending local amendments. The local amendments will also provide an opportunity to hear input from the community and for Council to provide direction on specific items to be incorporated into the local amendments.

The City’s Climate Adaption and Safety Element (CASE) of the General Plan (2023) includes the prior Fire Hazard Severity Zone (FHSZ) map. Staff will prepare an update to the CASE to include the new FHSZ map and anticipate working to complete that task at the same time that other local FHSZ implementing ordinances are adopted during the 2025-26 fiscal year. The existing policies and programs related to fire hazard in the CASE remain appropriate, though staff will review for any text updates that are needed to remain contemporary with applicable statutes and best practices.

11 https://readyforwildfire.org/prepare-for-wildfire/firewise-communities/

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Previous Council Action
Resolution No. 10337 (2012) series –

1. Proposed General Plan amendment

2. Proposed amendments to the Safety Element Policies and Maps

3. Negative Declaration to potential significant environmental impacts Ordinance No. 1575 (2012 series) –

1. Application of certain building code sections to structures not within the Very High Hazard Severity Zones.

Public Engagement
An Open City Hall topic was posted on March 24, 2025, to receive public comments on the draft fire hazard severity maps. Feedback generally covered the following areas:
 Several respondents made arguments that the zones were inaccurate, incorrect or otherwise did not adequately represent the City and the local hazards from the vegetative fuels. Although requests were made to contract the zones, that is not an option available to the Council per Government Code 51179.  Insurance is a common concern among respondents. CalFire and the California Department of Insurance have clarified the FHSZ maps are intended to drive local planning decisions, not insurance decisions. The reason is that insurance premiums take into account risk which factors in mitigation measures (vegetation management, defensible space and home hardening) that the Hazard maps do not consider.
 A consistent theme arose regarding how people are going to afford to do the work demanded by the regulations within the zones, specifically defensible space and home hardening.
 Several comments asked about information campaigns to get the word out about the requirements of the hazard maps and how they are going to know what is expected.
 There is some concern about parcels that are split between multiple zones.

Through discussion internally and advisement from outside legal advisors, the Fire Code requires the most restrictive regulations in instances where two relevant sections of code are in conflict. If a parcel is split between multiple zones, the requirements of the higher severity zone will be applied to the entire parcel and codified in the forthcoming defensible space ordinance.

The Open City Hall topic will remain open until June 16th and any additional comments received will be distributed to the Council via agenda correspondence in advance of the second reading of the ordinance at the June 17th Council meeting.

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City Staff leveraged multiple sources to share the message about the Hazard Maps and their impact on constituents. Social media such as Facebook and Instagram shared updates to the programs. The City’s website, including the Fire Department landing page provides a host of information about the impacts of the maps, as well as a map showing the zone lines with parcel maps embedded in it12. A community forum was held on May 22nd to actively engage with the public and listen to the needs of the community.

Public engagement will not end with adoption of the proposed fire hazard map. As the Building Code, Fire Code, and WUI Codes are released and the defensible space program study session is held, several additional opportunities will be provided for the consideration of public comment. Once programs are established, community outreach will follow the City’s Public Engagement and Noticing Manual and information will be shared with the public through mailed notices to impacted addresses, community meetings, social media linking to a web page on the City’s website, FAQs, etc.

CONCURRENCE
The Community Development Department, Administration and IT, and City Attorney’s Office concur with this report and have been active in its development.

ENVIRONMENTAL REVIEW
The recommended action is exempt from environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15308 (actions by regulatory agencies for protection of the environment) because it is a regulatory action mandated by state law to identify and mitigate wildfire hazards, thereby protecting the environment and public safety. Adoption of the maps does not authorize physical development. Additionally, designation of Fire Hazard Severity Zones as identified and recommended by the State Fire Marshal is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268, as a ministerial action, required by Government Code section 51179(a).

FISCAL IMPACT
Budgeted: No Budget Year: 2025-27
Funding Identified: No
Fiscal Analysis:

12 https://www.slocity.org/government/department-directory/fire-department/prepare-slo/fire-hazards

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

Total $0 $ $ $0
The study session to be held by the end of 2025 that will describe potential defensible space and vegetation management programs will also contemplate the development of cost recovery strategies, such as fees for inspections, and other funding options for homeowners and the City.

Staff will continue to evaluate vegetation management requirements from the FHSZ maps in City open spaces. City staff have secured and are actively applying to external grant programs to assist this effort.

Staff are aware that there will be additional fiscal and work program effects that are still materializing. As steps in the Fire Hazard Severity Zone implementation are completed, such as map and code adoption, Council will remain apprised of the pending fiscal impacts and programmatic needs as they are developed.

ALTERNATIVES

1. Council may expand the maps proposed by the Office of the State Fire Marshal.

Local Governments, per Government Code 51179(b)(3) may expand the coverage of the zones. Should the Council pursue expansion of the maps, additional staff time will be required to develop substantial evidence that justifies the decision to expand the zones. Expanding the proposed zones would require reintroduction of the expanded hazard maps at a subsequent public hearing, which would likely prevent the City from adopting the maps by the statutory deadline of July 8, 2025.

ATTACHMENTS
A - Draft Ordinance adopting Designating the Fire Hazard Severity Zones as Identified by the State Fire Marshal.

B – Local Responsibility Area map of Fire Hazard Severity Zones for the City of San Luis Obispo.

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O ______
ORDINANCE NO. _____ (2025 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, DESIGNATING THE FIRE HAZARD SEVERITY

ZONES AS IDENTIFIED BY THE STATE FIRE MARSHAL
WHEREAS, under California Government Code Section 51178, the State Fire Marshal is required to classify lands within the state into Fire Hazard Severity Zones (FHSZ) and provide these classifications to local agencies; and WHEREAS, on March 10, 2025, the State Fire Marshal released updated FHSZ maps designating areas within the City of San Luis Obispo as Moderate, High, or Very High Fire Hazard Severity Zones; and
WHEREAS, Government Code Section 51178.5, within 30 days after the State Fire Marshal’s transmittal of the FHSZ identifications, a local agency must make the information available for public review and comment; and WHEREAS, on March 26, 2025, the City published the FHSZ maps (Exhibit 1) and information on the City’s website and invited public comment via Open City Hall, ensuring community engagement in the adoption process; and
WHEREAS, State Government Code Section 51179 mandates that a local agency designate, by ordinance, fire hazard severity zones in its jurisdiction within 120 days of receipt of FHSZ recommendations from the State Fire Marshal; and WHEREAS, the City of San Luis Obispo recognizes the importance of adopting these designations to enhance public safety, inform land use planning, and implement appropriate building standards to mitigate wildfire risks; and WHEREAS, these FHSZ designations will require compliance with specific building codes, defensible space regulations, and real estate disclosure requirements as stipulated by state law; and
WHEREAS, the FHSZ maps published by the State Fire Marshal on March 10, 2025, identify some parcels as subject to more than one fire hazard severity zone designation, which may create confusion for property owners as to which requirements or standards apply; and to help minimize confusion, the City ordinance adopting the FHSZ map will clarify that the more severe zone designation requirements will apply to the entirety of any such parcel;
WHEREAS, the City Council finds that adopting the updated FHSZ designations as recommended by the State Fire Marshal is in the best interest of the health, safety, and welfare of the residents of San Luis Obispo.

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

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Ordinance No. _____ (2025 Series) Page 2
O ______
SECTION 1. Findings. The above recitals are incorporated herein as the Findings of the City Council.

SECTION 2: Action.

1. The City of San Luis Obispo hereby designates the Fire Hazard Severity Zones as identified and recommended by the State Fire Marshal pursuant to Government Code Section 51178 on March 10, 2025.

2. The official FHSZ map for the City of San Luis Obispo, as provided by the State Fire Marshal, is attached as Exhibit 1 and incorporated herein by reference and entitled “City of San Luis Obispo Fire Hazard Severity Zones.”

3. For any parcel that is identified in the official map as being subject to two different fire hazard severity zones, the requirements of the more severe zone shall apply to the entire the parcel.

4. The City Manager, or their designee, is directed to submit this ordinance and all required documentation to the State Board of Forestry and Fire Protection within 30 days of adoption, as mandated by California State Government Code Section 51179.

SECTION 3. Environmental Review. The designation of Fire Hazard Severity Zones as identified and recommended by the State Fire Marshal is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268, as a ministerial action, required by Government Code section 51179(a). Additionally, designation of the zones is exempt under CEQA Guidelines section 15308 (actions by regulatory agencies for protection of the environment) because it is a regulatory action mandated by state law to identify and mitigate wildfire hazards, thereby protecting the environment and public safety.

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Ordinance No. _____ (2025 Series) Page 3
O ______
SECTION 4. 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 3rd day of June, 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 17th day of June, 2025, 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

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City and County boundaries as of 10/22/24 (CA Board of Equalization) CAL FIRE State Responsibility Areas (SRA25_1)
CAL FIRE Fire Hazard Severity Zones (FHSZSRA23_3, FHSZLRA_25_1) Data Sources:

Daniel Berlant, State Fire Marshal, CA Department of Forestry and Fire Protection Joe Tyler, Director/Fire Chief, CA Department of Forestry and Fire Protection Wade Crowfoot, Secretary for Natural Resources, CA Natural Resources Agency The State of California and the Department of Forestry and Fire Gavin Newsom, Governor, State of California Protection make no representations or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. and other relevant factors including areas where winds
have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.
statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, Government Code section 51178 requires the State Fire
Marshal to identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent Waterbody
Federal Responsibility
Area (FRA)
Unzoned LRA
Incorporated City
Projection: NAD 83 California Teale Albers
Scale: 1:41,000 at 11" x 17"
Km 0 1 2 3
Mi 0 1 2
Very High High Moderate
Very High High Moderate
Fire Hazard Severity Zones (FHSZ) in Local Responsibility Area (LRA), as Identified by the State Fire Marshal
San Luis
Obispo
101
227
1 UNINCORPORATED

SAN LUIS
OBISPO CO.

UNINCORPORATED

SAN LUIS
OBISPO CO.

March 10, 2025
As Identified by the
State Fire Marshal
Local Responsibility Area
Fire Hazard Severity Zones
CITY OF SAN LUIS OBISPO – SAN LUIS OBISPO COUNTY
Fire Hazard Severity Zones in State Responsibility
Area (SRA), Effective April 1, 2024

Page 285 of 285 ends

San Luis Obispo City CouncilJune 3, 2025

San Luis Obispo City Council
June 3, 2025